Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)



	June 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	48		$	1,328		$	947		$	—		$	2,323
Short-term investments	237,433			—			—			—			237,433
Accounts receivable – net	78,334			63,020			8,969			(2,819		)	147,504
Intercompany receivable	—			105,938			—			(105,938		)	—
Inventories of spare parts – net	67,148			9,007			—			—			76,155
Prepaid expenses	10,554			2,394			183			—			13,131
Deferred income taxes	10,798			—			—			—			10,798
Income taxes receivable	418			(4		)	—			—			414
Total current assets	404,733			181,683			10,099			(108,757		)	487,758

Investment in subsidiaries	376,032			—			—			(376,032		)	—
Property and equipment – net	626,402			291,118			614			—			918,134
Restricted cash and investments	12,382			—			14			—			12,396
Other assets	9,168			1,004			—			—			10,172
Total assets	$	1,428,717		$	473,805		$	10,727		$	(484,789	)	$	1,428,460

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	24,177		$	3,200		$	3,233		$	(2,819	)	$	27,791
Accrued and other current liabilities	24,508			7,836			1,040			—			33,384
Intercompany payable	97,739			—			8,199			(105,938		)	—
Total current liabilities	146,424			11,036			12,472			(108,757		)	61,175

Long-term debt	631,096			—			—			—			631,096
Deferred income taxes and other long-term liabilities	67,136			83,926			1,066			—			152,128
Shareholders’ Equity:
Common stock and paid-in capital	307,367			77,951			1,375			(79,326		)	307,367
Accumulated other comprehensive loss	(254		)	—			—			—			(254		)
Retained earnings	276,948			300,892			(4,186		)	(296,706		)	276,948
Total shareholders’ equity	584,061			378,843			(2,811		)	(376,032		)	584,061
Total liabilities and shareholders’ equity	$	1,428,717		$	473,805		$	10,727		$	(484,789	)	$	1,428,460

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)



	December 31, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	36		$	2,560		$	—		$	2,596
Short-term investments	289,806			—			—			289,806
Accounts receivable – net	71,458			66,807			—			138,265
Intercompany receivable	—			57,904			(57,904		)	—
Inventories of spare parts – net	61,834			8,568			—			70,402
Prepaid expenses	6,990			2,269			—			9,259
Deferred income taxes	10,798			—			—			10,798
Income taxes receivable	558			(18		)	—			540
Total current assets	441,480			138,090			(57,904		)	521,666

Investment in subsidiaries and others	353,160			—			(353,160		)	—
Property and equipment – net	589,104			314,873			—			903,977
Restricted investments	13,023			15			—			13,038
Other assets	8,660			1,099			—			9,759
Total assets	$	1,405,427		$	454,077		$	(411,064	)	$	1,448,440

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,744		$	5,960		$	—		$	28,704
Accrued and other current liabilities	18,725			9,621			—			28,346
Intercompany payable	57,904			—			(57,904		)	—
Total current liabilities	99,373			15,581			(57,904		)	57,050

Long-term debt	631,247			—			—			631,247
Deferred income taxes and other long-term liabilities	75,029			85,336			—			160,365
Shareholders’ Equity:
Common stock and paid-in capital	305,815			79,191			(79,191		)	305,815
Accumulated other comprehensive loss	(478		)	—			—			(478		)
Retained earnings	294,441			273,969			(273,969		)	294,441
Total shareholders’ equity	599,778			353,160			(353,160		)	599,778
Total liabilities and shareholders’ equity	$	1,405,427		$	454,077		$	(411,064	)	$	1,448,440


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

Condensed Consolidating Statements of Operations

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)



	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 unconsolidated affiliates, net	(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 expense (benefit)	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)



	For the quarter ended June 30, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Operating revenues, net	$	89,365		$	77,771	$	—		$	167,136
Expenses:
Direct expenses	89,535			62,882		—			152,417
Selling, general and administrative expenses	9,232			2,871		(325		)	11,778
Total operating expenses	98,767			65,753		(325		)	164,195
Gain on disposal of assets, net	(4,298		)	—		—			(4,298		)
Equity in loss of consolidated affiliates, net	76			—		—			76
Operating (loss) income	(5,180		)	12,018		325			7,163
Equity in net income of consolidated subsidiaries	(7,035		)	—		7,035			—
Interest expense	7,534			6		—			7,540
Other income, net	(819		)	—		325			(494		)
	(320		)	6		7,360			7,046
(Loss) earnings before income taxes	(4,860		)	12,012		(7,035		)	117
Income tax (benefit) expense	(9,137		)	4,977		—			(4,160		)
Net earnings	$	4,277		$	7,035	$	(7,035	)	$	4,277


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)



	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 (income) of unconsolidated affiliates, net	928			—			1,066			—			1,994
Operating income (loss)	(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	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)



	For the six months ended June 30, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations			Consolidated
Operating revenues, net	$	181,234		$	149,918		$	—		$	331,152
Expenses:
Direct expenses	181,572			123,399			—			304,971
Selling, general and administrative expenses	18,275			5,674			(498		)	23,451
Total operating expenses	199,847			129,073			(498		)	328,422
Gain on disposal of assets, net	(3,939		)	—			—			(3,939		)
Equity in loss of unconsolidated affiliate	76			—			—			76
Operating (loss) income	(14,750		)	20,845			498			6,593
Equity in net income of consolidated subsidiaries	(12,090		)	—			12,090			—
Interest expense	15,047			26			—			15,073
Other income, net	(1,603		)	(4		)	498			(1,109		)
	1,354			22			12,588			13,964
(Loss) earnings before income taxes	(16,104		)	20,823			(12,090		)	(7,371		)
Income tax (benefit) expense	(11,449		)	8,733			—			(2,716		)
Net (loss) earnings	$	(4,655	)	$	12,090		$	(12,090	)	$	(4,655	)


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

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, 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 obligation	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)



	For the quarter ended June 30, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Net earnings	$	4,277		$	7,035	$	(7,035	)	$	4,277
Unrealized gain on short-term investments	210			—		—			210
Changes in pension plan asset and benefit obligations	1			—		—			1
Tax effect of the above-listed adjustments	(75		)	—		—			(75		)
Total comprehensive (loss) income	$	4,413		$	7,035	$	(7,035	)	$	4,413


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

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 obligation	22			—		—			—			22
Tax effect of the above-listed adjustments	(127		)	—		—			—			(127		)
Total comprehensive (loss) income	$	(18,297	)	$	17,381	$	(138	)	$	(17,243	)	$	(18,297	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)



	For the six months ended June 30, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Net (loss) earnings	$	(4,655	)	$	12,090	$	(12,090	)	$	(4,655	)
Unrealized gain on short-term investments	1,017			—		—			1,017
Changes in pension plan asset and benefit obligations	2			—		—			2
Tax effect of the above-listed adjustments	(407		)	—		—			(407		)
Total comprehensive (loss) income	$	(4,043	)	$	12,090	$	(12,090	)	$	(4,043	)


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

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, 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 (used in) 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 (decrease) 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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)



	For the six months ended June 30, 2016
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(12,954	)	$	13,753		$	—	$	799
Investing activities:
Purchase of property and equipment	(39,535		)	(373		)	—		(39,908		)
Proceeds from asset dispositions	10,998			—			—		10,998
Purchase of short-term investments	(151,436		)	—			—		(151,436		)
Proceeds from sale of short-term investments	148,838			—			—		148,838
Payments of deposits on aircraft	(131		)	—			—		(131		)
Net cash used in investing activities	(31,266		)	(373		)	—		(31,639		)
Financing activities:
Proceeds from line of credit	150,800			—			—		150,800
Payments on line of credit	(113,300		)	—			—		(113,300		)
Repurchase of common stock	(500		)	—			—		(500		)
Due to/from affiliate, net	7,214			(7,214		)	—		—
Net cash provided by (used in) financing activities	44,214			(7,214		)	—		37,000
(Decrease) increase in cash	(6		)	6,166			—		6,160
Cash, beginning of period	46			2,361			—		2,407
Cash, end of period	$	40		$	8,527		$	—	$	8,567


(1)	Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.