Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	June 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	53		$	1,305	$	4,494		$	—		$	5,852
Short-term investments	60,317			—		—			—			60,317
Accounts receivable – net	76,291			84,882		35,346			(2,187		)	194,332
Intercompany receivable	—			119,963		—			(119,963		)	—
Inventories of spare parts – net	65,522			9,512		2,713			—			77,747
Prepaid expenses	9,494			2,715		941			—			13,150
Income taxes receivable	111			512		—			—			623
Total current assets	211,788			218,889		43,494			(122,150		)	352,021
Investment in subsidiaries	405,560			—		—			(405,560		)	—
Property and equipment – net	603,926			286,820		42,837			—			933,583
Restricted cash and investments	12,076			—		—			—			12,076
Other assets	140,158			794		(131,347		)	—			9,605
Deferred income tax	—			—		3,237			—			3,237
Goodwill	—			—		61,299			—			61,299
Intangible assets	—			—		15,946			—			15,946
Total assets	$	1,373,508		$	506,503	$	35,466		$	(527,710	)	$	1,387,767
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	620,991		$	—	$	—		$	—		$	620,991
Accounts payable	41,401			4,039		7,466			(2,261		)	50,645
Accrued and other current liabilities	23,230			10,891		6,505			—			40,626
Intercompany payable	100,982			—		18,907			(119,889		)	—
Total current liabilities	786,604			14,930		32,878			(122,150		)	712,262
Deferred income taxes and other long-term liabilities	(4,034		)	84,539		3,435			—			83,940
Shareholders’ Equity:
Common stock and paid-in capital	312,015			77,951		1,511			(79,462		)	312,015
Accumulated other comprehensive loss	(3		)	—		627			—			624
Retained earnings	278,926			329,083		(2,985		)	(326,098		)	278,926
Total shareholders’ equity	590,938			407,034		(847		)	(405,560		)	591,565
Total liabilities and shareholders’ equity	$	1,373,508		$	506,503	$	35,466		$	(527,710	)	$	1,387,767

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

	December 31, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	47		$	1,072	$	7,651		$	—		$	8,770
Short-term investments	64,237			—		—			—			64,237
Accounts receivable – net	90,077			74,886		38,020			(17,004		)	185,979
Intercompany receivable	—			126,366		—			(126,366		)	—
Inventories of spare parts – net	68,737			9,049		3,095			—			80,881
Prepaid expenses	8,348			1,898		1,229			—			11,475
Income taxes receivable	345			9		917			—			1,271
Total current assets	231,791			213,280		50,912			(143,370		)	352,613
Investment in subsidiaries and others	397,301			—		—			(397,301		)	—
Property and equipment – net	617,488			284,984		44,293			—			946,765
Restricted investments	12,382			—		14			—			12,396
Other assets	139,754			908		(131,921		)	—			8,741
Deferred income tax	—			—		3,309			—			3,309
Goodwill	—			—		61,299			—			61,299
Intangible assets	—			—		16,723			—			16,723
Total assets	$	1,398,716		$	499,172	$	44,629		$	(540,671	)	$	1,401,846
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	28,130		$	4,636	$	21,425		$	(17,005	)	$	37,186
Accrued and other current liabilities	23,147			10,577		8,126			—			41,850
Intercompany payable	113,387			—		12,978			(126,365		)	—
Total current liabilities	164,664			15,213		42,529			(143,370		)	79,036
Long-term debt	615,994			—		—			—			615,994
Deferred income taxes and other long-term liabilities	5,404			84,300		4,458			—			94,162
Shareholders’ Equity:
Common stock and paid-in capital	309,933			77,951		1,375			(79,326		)	309,933
Accumulated other comprehensive loss	(280		)	—		—			—			(280		)
Retained earnings	303,001			321,708		(3,733		)	(317,975		)	303,001
Total shareholders’ equity	612,654			399,659		(2,358		)	(397,301		)	612,654
Total liabilities and shareholders’ equity	$	1,398,716		$	499,172	$	44,629		$	(540,671	)	$	1,401,846

Condensed Consolidating Statements of Operations

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	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)

	For the Quarter Ended June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	75,045		$	68,857		$	5,341		$	(2,819	)	$	146,424
Expenses:
Direct expenses	72,598			51,806			5,366			(2,819		)	126,951
Selling, general and administrative expenses	10,916			3,269			66			(4		)	14,247
Total operating expenses	83,514			55,075			5,432			(2,823		)	141,198
Loss (gain) on disposal of assets, net	8			(1		)	—			—			7
Equity in (income) loss of consolidated affiliate	(75		)	—			1,066			—			991
Operating (loss) income	(8,402		)	13,783			(1,157		)	4			4,228
Equity in net income of consolidated subsidiaries	(14,613		)	—			—			14,613			—
Interest expense	8,082			1			—			—			8,083
Other income, net	(708		)	(1		)	—			4			(705		)
	(7,239		)	—			—			14,617			7,378
(Loss) earnings before income taxes	(1,163		)	13,783			(1,157		)	(14,613		)	(3,150		)
Income tax (benefit) expense	2,110			(1,987		)	—			—			123
Net (loss) earnings	$	(3,273	)	$	15,770		$	(1,157	)	$	(14,613	)	$	(3,273	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	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	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

	For the Six Months Ended June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	149,329		$	126,330		$	8,202		$	(2,819	)	$	281,042
Expenses:
Direct expenses	154,942			104,187			7,154			(2,819		)	263,464
Selling, general and administrative expenses	21,024			6,155			120			(9		)	27,290
Total operating expenses	175,966			110,342			7,274			(2,828		)	290,754
Loss (gain) on disposal of assets, net	8			(1		)	—			—			7
Equity in loss of unconsolidated affiliate	928			—			1,066			—			1,994
Operating (loss) income	(27,573		)	15,989			(138		)	9			(11,713		)
Equity in net income of consolidated subsidiaries	(17,243		)	—			—			17,243			—
Interest expense	16,256			22			—			—			16,278
Other income, net	(1,776		)	(1		)	—			9			(1,768		)
	(2,763		)	21			—			17,252			14,510
(Loss) earnings before income taxes	(24,810		)	15,968			(138		)	(17,243		)	(26,223		)
Income tax (benefit) expense	(6,289		)	(1,413		)	—			—			(7,702		)
Net (loss) earnings	$	(18,521	)	$	17,381		$	(138	)	$	(17,243	)	$	(18,521	)

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, 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)

	For the Quarter Ended June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(3,273	)	$	15,770	$	(1,157	)	$	(14,613	)	$	(3,273	)
Unrealized gain on short-term investments	167			—		—			—			167
Changes in pension plan asset and benefit obligations	23			—		—			—			23
Tax effect of the above-listed adjustments	(68		)	—		—			—			(68		)
Total comprehensive (loss) income	$	(3,151	)	$	15,770	$	(1,157	)	$	(14,613	)	$	(3,151	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	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	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	For the Six Months Ended June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(18,521	)	$	17,381	$	(138	)	$	(17,243	)	(18,521		)
Unrealized gain on short-term investments	329			—		—			—			329
Changes in pension plan asset and benefit obligations	22			—		—			—			22
Tax effect of the above-listed adjustments	(127		)	—		—			—			(127		)
Total comprehensive (loss) income	$	(18,297	)	$	17,381	$	(138	)	$	(17,243	)	$	(18,297	)

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, 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	(274		)	—			—			—		(274		)
Net cash used in investing activities	(11,667		)	—			(1,330		)	—		(12,997		)
Financing activities:
Debt issuance costs	—			—			—			—		—
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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

	For the Six Months Ended June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(34,236	)	$	18,916		$	7,371		$	—	$	(7,949	)
Investing activities:
Purchase of property and equipment	(43,892		)	—			—			—		(43,892		)
Proceeds from asset dispositions	17			—			—			—		17
Purchase of short-term investments	(134,518		)	—						—		(134,518		)
Proceeds from sale of short-term investments	187,217			—						—		187,217
Payments of deposits on aircraft	(110		)	—						—		(110		)
Net cash provided by investing activities	8,714			—			—			—		8,714
Financing activities:
Proceeds from line of credit	66,525			—			—			—		66,525
Payments on line of credit	(67,300		)	—			—			—		(67,300		)
Repurchase of common stock	(263		)	—			—			—		(263		)
Due to/from affiliate, net	26,572			(19,688		)	(6,884		)	—		—
Net cash provided by (used in) financing activities	25,534			(19,688		)	(6,884		)	—		(1,038		)
Increase in cash	12			(772		)	487			—		(273		)
Cash, beginning of period	36			2,100			460			—		2,596
Cash, end of period	$	48		$	1,328		$	947		$	—	$	2,323