Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	8,170		$	2,223	$	11,489		$	—		$	21,882
Short-term investments		76,141			—		—			—			76,141
Accounts receivable – net		64,467			101,381		23,676			(6,180	)		183,344
Intercompany receivable		—			98,616		22,116			(120,732	)		—
Inventories of spare parts – net		29,871			20,929		3,442			—			54,242
Prepaid expenses		8,944			2,805		1,323			—			13,072
Income taxes receivable		7			502		—			—			509
Total current assets		187,600			226,456		62,046			(126,912	)		349,190
Investment in subsidiaries		475,391			—		—			(475,391	)		—
Property and equipment – net		562,880			283,231		39,558			—			885,669
Right of use assets		116,918			11,652		16,374			—			144,944
Restricted cash and investments		19,739			—		—			—			19,739
Other assets		18,678			1,071		1,188			—			20,937
Deferred income tax		—			—		5,137			—			5,137
Total assets	$	1,381,206		$	522,410	$	124,303		$	(602,303	)	$	1,425,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	64,526		$	6,437	$	5,832		$	(6,180	)	$	70,615
Accrued and other current liabilities		19,667			13,500		5,316			—			38,483
Current portion of operating lease liabilities		20,823			3,404		3,308			—			27,535
Current maturities of long-term debt		1,750			—		—			—			1,750
Intercompany payable		63,263			17,125		40,344			(120,732	)		—
Total current liabilities		170,029			40,466		54,800			(126,912	)		138,383
Long-term Debt		192,450			—		—			—			192,450
Deferred income taxes and other long-term liabilities		93,711			67,234		12,859			—			173,804
Liabilities subject to compromise		513,125			—		—			—			513,125
Shareholders’ Equity:
Common stock and paid-in capital		317,725			77,951		132,426			(210,377	)		317,725
Accumulated other comprehensive loss		(3	)		—		(4,037	)		—			(4,040	)
Retained earnings		94,169			336,759		(71,745	)		(265,014	)		94,169
Total shareholders’ equity		411,891			414,710		56,644			(475,391	)		407,854
Total liabilities and shareholders’ equity	$	1,381,206		$	522,410	$	124,303		$	(602,303	)	$	1,425,616

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

	December 31, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	39,091		$	1,259	$	10,524		$	—		$	50,874
Short-term investments		14,232			—		—			—			14,232
Accounts receivable – net		64,416			93,060		28,812			(3,823	)		182,465
Intercompany receivable		—			91,468		—			(91,468	)		—
Inventories of spare parts – net		43,933			9,577		3,188			—			56,698
Prepaid expenses		7,295			2,520		1,604			—			11,419
Income taxes receivable		394			556		—			—			950
Total current assets		169,361			198,440		44,128			(95,291	)		316,638
Investment in subsidiaries and others		471,790			—		—			(471,790	)		—
Property and equipment – net		576,763			287,375		38,347			—			902,485
Restricted investments		19,781			—		—			—			19,781
Other assets		17,179			1,199		—			—			18,378
Deferred income tax		—			—		4,944			—			4,944
Total assets	$	1,254,874		$	487,014	$	87,419		$	(567,081	)	$	1,262,226
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Senior Notes issued March 17, 2014	$	499,740		$	—	$	—		$	—		$	499,740
Accounts payable		44,089			4,587		5,452			(3,839	)		50,289
Accrued and other current liabilities		25,158			12,335		7,799			—			45,292
Intercompany payable		74,336			—		17,116			(91,452	)		—
Total current liabilities		643,323			16,922		30,367			(95,291	)		595,321
Long-term debt		129,235			—		—			—			129,235
Deferred income taxes and other long-term liabilities		4,934			58,752		551			—			64,237
Shareholders’ Equity:
Common stock and paid-in capital		315,898			77,951		132,650			(210,601	)		315,898
Accumulated other comprehensive loss		(3	)		—		(3,949	)		—			(3,952	)
Retained earnings		161,487			333,389		(72,200	)		(261,189	)		161,487
Total shareholders’ equity		477,382			411,340		56,501			(471,790	)		473,433
Total liabilities and shareholders’ equity	$	1,254,874		$	487,014	$	87,419		$	(567,081	)	$	1,262,226

Condensed Consolidating Statements of Operations

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	For the Quarter Ended June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	75,707		$	72,628	$	24,912		$	(8,075	)	$	165,172
Expenses:
Direct expenses		76,288			61,915		23,386			(8,075	)		153,514
Selling, general and administrative expenses		10,459			4,293		2,843			(4	)		17,591
Total operating expenses		86,747			66,208		26,229			(8,079	)		171,105
Loss on disposal of assets, net		(102	)		9		(2	)		—			(95	)
Equity in income of unconsolidated affiliates, net		(1,039	)		—		—			—			(1,039	)
Operating (loss) income		(9,899	)		6,411		(1,315	)		4			(4,799	)
Equity in net income of consolidated subsidiaries		(4,952	)		—		—			4,952			—
Interest expense		3,908			19		—			—			3,927
Reorganization items, net		26,503			—		—			—			26,503
Other income, net		(46	)		—		(291	)		4			(333	)
		25,413			19		(291	)		4,956			30,097
(Loss) earnings before income taxes		(35,312	)		6,392		(1,024	)		(4,952	)		(34,896	)
Income tax (benefit) expense		(3,235	)		792		(376	)		—			(2,819	)
Net (loss) earnings	$	(32,077	)	$	5,600	$	(648	)	$	(4,952	)	$	(32,077	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

	For the Quarter Ended June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	79,857		$	68,717	$	51,404		$	(30,735	)	$	169,243
Expenses:
Direct expenses		78,955			58,263		48,658			(30,793	)		155,083
Selling, general and administrative expenses		8,395			3,256		2,838			(4	)		14,485
Total operating expenses		87,350			61,519		51,496			(30,797	)		169,568
Gain on disposal of assets, net		(150	)		—		(21	)		—			(171	)
Equity in income of unconsolidated affiliates, net		(81	)		—		—			—			(81	)
Operating (loss) income		(7,262	)		7,198		(71	)		62			(73	)
Equity in net income of consolidated subsidiaries		(6,064	)		—		—			6,064			—
Interest expense		8,337			—		542			(539	)		8,340
Other income, net		(365	)		—		128			601			364
		1,908			—		670			6,126			8,704
(Loss) earnings before income taxes		(9,170	)		7,198		(741	)		(6,064	)		(8,777	)
Income tax (benefit) expense		(2,077	)		—		393			—			(1,684	)
Net (loss) earnings	$	(7,093	)	$	7,198	$	(1,134	)	$	(6,064	)	$	(7,093	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	For the Six Months Ended June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	149,740		$	131,930		$	49,251		$	(13,859	)	$	317,062
Expenses:
Direct expenses		160,793			120,941			42,515			(13,859	)		310,390
Selling, general and administrative expenses		28,507			7,731			6,229			(9	)		42,458
Total operating expenses		189,300			128,672			48,744			(13,868	)		352,848
Loss (gain) on disposal of assets, net		(51	)		9			(2	)		—			(44	)
Equity in income of unconsolidated affiliates, net		(2,400	)		—			—			—			(2,400	)
Operating (loss) income		(37,109	)		3,249			509			9			(33,342	)
Equity in net income of consolidated subsidiaries		(3,825	)		—			—			3,825			—
Interest expense		12,070			23			—			—			12,093
Regorganizations items, net		28,103			—			—			—			28,103
Other income, net		(235	)		—			(67	)		9			(293	)
		36,113			23			(67	)		3,834			39,903
(Loss) earnings before income taxes		(73,222	)		3,226			576			(3,825	)		(73,245	)
Income tax (benefit) expense		(5,904	)		(144	)		121			—			(5,927	)
Net (loss) earnings	$	(67,318	)	$	3,370		$	455		$	(3,825	)	$	(67,318	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

	For the Six Months Ended June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	157,949		$	127,426	$	100,900		$	(56,668	)	$	329,607
Expenses:
Direct expenses		162,953			113,627		91,436			(56,707	)		311,309
Selling, general and administrative expenses		17,143			6,423		6,388			(10	)		29,944
Total operating expenses		180,096			120,050		97,824			(56,717	)		341,253
Loss (gain) on disposal of assets, net		729			—		(21	)		—			708
Equity in income of unconsolidated affiliates, net		(45	)		—		—			—			(45	)
Operating (loss) income		(22,831	)		7,376		3,097			49			(12,309	)
Equity in net income of consolidated subsidiaries		(8,163	)		—		—			8,163			—
Interest expense		16,533			—		1,085			(1,081	)		16,537
Other income, net		(63	)		—		337			1,130			1,404
		8,307			—		1,422			8,212			17,941
(Loss) earnings before income taxes		(31,138	)		7,376		1,675			(8,163	)		(30,250	)
Income tax (benefit) expense		(7,063	)		—		888			—			(6,175	)
Net (loss) earnings	$	(24,075	)	$	7,376	$	787		$	(8,163	)	$	(24,075	)

Condensed Consolidated Statements of Comprehensive Income (Loss)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	For the Quarter Ended June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(32,077	)	$	5,600	$	(648	)	$	(4,952	)	$	(32,077	)
Currency translation adjustments		—			—		(928	)		—			(928	)
Tax effect of the above-listed adjustments		—			—		25			—			25
Total comprehensive (loss) income	$	(32,077	)	$	5,600	$	(1,551	)	$	(4,952	)	$	(32,980	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

	For the Quarter Ended June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(7,093	)	$	7,198	$	(1,134	)	$	(6,064	)	$	(7,093	)
Unrealized gain on short-term investments		(107	)		—		—			—			(107	)
Currency translation adjustments		—			—		160			—			160
Changes in pension plan asset and benefit obligation		7			—		—			—			7
Tax effect of the above-listed adjustments		100			—		—			—			100
Total comprehensive (loss) income	$	(7,093	)	$	7,198	$	(974	)	$	(6,064	)	$	(6,933	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	For the Six Months Ended June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(67,318	)	$	3,370	$	455		$	(3,825	)		(67,318	)
Currency translation adjustment		—			—		(121	)		—			(121	)
Tax effect of the above-listed adjustments		—			—		33			—			33
Total comprehensive (loss) income	$	(67,318	)	$	3,370	$	367		$	(3,825	)	$	(67,406	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

	For the Six Months Ended June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net (loss) earnings	$	(24,075	)	$	7,376	$	787	$	(8,163	)		(24,075	)
Unrealized gain on short-term investments		363			—		—		—			363
Currency translation adjustment		—			—		627		—			627
Changes in pension plan asset and benefit obligation		(1	)		—		—		—			(1	)
Tax effect of the above-listed adjustments		(85	)		—		—		—			(85	)
Total comprehensive (loss) income	$	(23,798	)	$	7,376	$	1,414	$	(8,163	)	$	(23,171	)

Condensed Consolidating Statements of Cash Flows

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)

	For the Six Months Ended June 30, 2019
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(20,773	)	$	(6,064	)	$	3,160		$	—	$	(23,677	)
Investing activities:													—
Purchase of property and equipment		(5,956	)		—			(3,014	)		—		(8,970	)
Proceeds from asset dispositions		1,235			—			—			—		1,235
Purchase of short-term investments		(183,421	)		—			—			—		(183,421	)
Proceeds from sale of short-term investments		121,512			—			—			—		121,512
Payment of deposit on aircraft		(50	)										(50	)
Refund of deposit on aircraft		503			—			—			—		503
Loan to unconsolidated affiliate		—			—			—			—		—
Net cash used in investing activities		(66,177	)		—			(3,014	)		—		(69,191	)
Financing activities:													—
Debt issuance costs		(5,668	)		—			—			—		(5,668	)
Proceeds from Term Loan		70,000			—			—					70,000
Due to/from affiliate, net		(8,330	)		7,028			1,302			—		—
Net cash provided by (used in) financing activities		56,002			7,028			1,302			—		64,332
Effect of exchange rate changes on cash		—			—			(483	)		—		(483	)
Increase (decrease) in cash		(30,948	)		964			965			—		(29,019	)
Cash, cash equivalents and restricted cash at beginning of period		46,781			1,259			10,524			—		58,564
Cash, cash equivalents and restricted cash at end of period	$	15,833		$	2,223		$	11,489		$	—	$	29,545

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)

	For the Six Months Ended June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(506	)	$	3,306		$	2,610		$	—	$	5,410
Investing activities:
Purchase of property and equipment		(16,768	)		—			(1,330	)		—		(18,098	)
Proceeds from asset dispositions		1,453			—			—			—		1,453
Purchase of short-term investments		(260,996	)		—			—			—		(260,996	)
Proceeds from sale of short-term investments		264,918			—			—			—		264,918
Loan to unconsolidated affiliate		(274	)		—			—			—		(274	)
Net cash used in investing activities		(11,667	)		—			(1,330	)		—		(12,997	)
Financing activities:
Proceeds from line of credit		34,295			—			—			—		34,295
Payments on line of credit		(29,575	)		—			—			—		(29,575	)
Due to/from affiliate, net		7,510			(3,073	)		(4,437	)		—		—
Repurchase of common stock		(51	)		—			—			—		(51	)
Net cash provided by (used in) financing activities		12,179			(3,073	)		(4,437	)		—		4,669
Increase (decrease) in cash		6			233			(3,157	)		—		(2,918	)
Cash, beginning of period		47			1,072			7,651			—		8,770
Cash, end of period	$	53		$	1,305		$	4,494		$	—	$	5,852