Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)



	September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	9,905		$	1,880	$	4,668		$	—		$	16,453
Short-term investments	30,509			—		—			—			30,509
Accounts receivable – net	75,970			95,340		29,574			(3,477		)	197,407
Intercompany receivable	—			92,338		—			(92,338		)	—
Inventories of spare parts – net	60,914			10,646		2,792			—			74,352
Prepaid expenses	9,364			2,640		1,197			—			13,201
Income taxes receivable	139			510		—			—			649
Total current assets	186,801			203,354		38,231			(95,815		)	332,571

Investment in subsidiaries	415,980			—		—			(415,980		)	—
Property and equipment – net	598,363			286,015		39,199			—			923,577
Restricted cash and investments	19,781			—		—			—			19,781
Other assets	140,265			1,042		(131,165		)	—			10,142
Deferred income tax	—			—		1,009			—			1,009
Goodwill	—			—		61,299			—			61,299
Intangible assets	—			—		15,557			—			15,557
Total assets	$	1,361,190		$	490,411	$	24,130		$	(511,795	)	$	1,363,936

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	499,429		$	—	$	—		$	—		$	499,429
Accounts payable	32,458			5,200		5,028			(3,477		)	39,209
Accrued and other current liabilities	18,781			14,053		6,723			—			39,557
Intercompany payable	81,384			—		10,954			(92,338		)	—
Total current liabilities	632,052			19,253		22,705			(95,815		)	578,195

Long-term debt	129,126			—		—			—			129,126
Deferred income taxes and other long-term liabilities	18,536			57,439		3,255			—			79,230
Shareholders’ Equity:
Common stock and paid-in capital	314,085			77,952		1,510			(79,462		)	314,085
Accumulated other comprehensive loss	(3		)	—		(4,091		)	—			(4,094		)
Retained earnings	267,394			335,767		751			(336,518		)	267,394
Total shareholders’ equity	581,476			413,719		(1,830		)	(415,980		)	577,385
Total liabilities and shareholders’ equity	$	1,361,190		$	490,411	$	24,130		$	(511,795	)	$	1,363,936

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 September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	75,654		$	72,396	$	22,027		$	(1,290	)	$	168,787
Expenses:
Direct expenses	83,935			62,045		15,510			(1,290		)	160,200
Selling, general and administrative expenses	9,987			3,666		2,606			(4		)	16,255
Total operating expenses	93,922			65,711		18,116			(1,294		)	176,455
Gain on disposal of assets, net	—			—		—			—			—
Equity in income of unconsolidated affiliates, net	(118		)	—		—			—			(118		)
Operating (loss) income	(18,150		)	6,685		3,911			4			(7,550		)
Equity in net income of consolidated subsidiaries	(10,381		)	—		—			10,381			—
Interest expense	8,356			1		—			—			8,357
Other income, net	(301		)	—		(1,548		)	4			(1,845		)
	(2,326		)	1		(1,548		)	10,385			6,512
(Loss) earnings before income taxes	(15,824		)	6,684		5,459			(10,381		)	(14,062		)
Income tax (benefit) expense	(4,293		)	—		1,762			—			(2,531		)
Net (loss) earnings	$	(11,531	)	$	6,684	$	3,697		$	(10,381	)	$	(11,531	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)



	For the Quarter Ended September 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	79,644		$	70,692		$	7,784		$	(7,953	)	$	150,167
Expenses:
Direct expenses	83,727			51,247			9,765			(7,953		)	136,786
Selling, general and administrative expenses	8,240			3,141			24			(4		)	11,401
Total operating expenses	91,967			54,388			9,789			(7,957		)	148,187
Loss (gain) on disposal of assets, net	(4		)	—			—			—			(4		)
Equity in (income) loss of consolidated affiliate	112			—			(550		)	—			(438		)
Operating (loss) income	(12,431		)	16,304			(1,455		)	4			2,422
Equity in net income of consolidated subsidiaries	(14,850		)	—			—			14,850			—
Interest expense	8,027			—			—			—			8,027
Other income, net	(709		)	(1		)	—			4			(706		)
	(7,532		)	(1		)	—			14,854			7,321
(Loss) earnings before income taxes	(4,899		)	16,305			(1,455		)	(14,850		)	(4,899		)
Income tax (benefit) expense	(1,622		)	—			—			—			(1,622		)
Net (loss) earnings	$	(3,277	)	$	16,305		$	(1,455	)	$	(14,850	)	$	(3,277	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)



	For the Nine Months Ended September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	233,608		$	199,823	$	68,065		$	(3,096	)	$	498,400
Expenses:
Direct expenses	246,888			175,673		52,045			(3,097		)	471,509
Selling, general and administrative expenses	27,129			10,089		8,994			(13		)	46,199
Total operating expenses	274,017			185,762		61,039			(3,110		)	517,708
Loss (gain) on disposal of assets, net	729			—		(21		)	—			708
Equity in income of unconsolidated affiliates, net	(162		)	—		—			—			(162		)
Operating (loss) income	(40,976		)	14,061		7,047			14			(19,854		)
Equity in net income of consolidated subsidiaries	(18,542		)	—		—			18,542			—
Interest expense	24,888			2		4			—			24,894
Other income, net	(359		)	—		(91		)	14			(436		)
	5,987			2		(87		)	18,556			24,458
(Loss) earnings before income taxes	(46,963		)	14,059		7,134			(18,542		)	(44,312		)
Income tax (benefit) expense	(11,356		)	—		2,651			—			(8,705		)
Net (loss) earnings	$	(35,607	)	$	14,059	$	4,483		$	(18,542	)	$	(35,607	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)



	For the Nine Months Ended September 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues, net	$	228,973		$	197,022		$	15,987		$	(10,773	)	$	431,209
Expenses:
Direct expenses	238,669			155,434			16,920			(10,773		)	400,250
Selling, general and administrative expenses	29,265			9,296			144			(14		)	38,691
Total operating expenses	267,934			164,730			17,064			(10,787		)	438,941
Loss (gain) on disposal of assets, net	4			(1		)	—			—			3
Equity in loss of unconsolidated affiliate	1,040			—			516			—			1,556
Operating (loss) income	(40,005		)	32,293			(1,593		)	14			(9,291		)
Equity in net income of consolidated subsidiaries	(32,093		)	—			—			32,093			—
Interest expense	24,283			22			—			—			24,305
Other income, net	(2,486		)	(2		)	—			14			(2,474		)
	(10,296		)	20			—			32,107			21,831
(Loss) earnings before income taxes	(29,709		)	32,273			(1,593		)	(32,093		)	(31,122		)
Income tax (benefit) expense	(7,911		)	(1,413		)	—			—			(9,324		)
Net (loss) earnings	$	(21,798	)	$	33,686		$	(1,593	)	$	(32,093	)	$	(21,798	)

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 September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(11,531	)	$	6,684	$	3,697		$	(10,381	)	$	(11,531	)
Unrealized gain on short-term investments	—			—		—			—			—
Currency translation adjustments	—			—		(4,718		)	—			(4,718		)
Changes in pension plan asset and benefit obligation	—			—		—			—			—
Tax effect of the above-listed adjustments	—			—		—			—			—
Total comprehensive (loss) income	$	(11,531	)	$	6,684	$	(1,021	)	$	(10,381	)	$	(16,249	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)



	For the Quarter Ended September 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(3,277	)	$	16,305	$	(1,455	)	$	(14,850	)	$	(3,277	)
Unrealized gain on short-term investments	41			—		—			—			41
Changes in pension plan asset and benefit obligations	(24		)	—		—			—			(24		)
Tax effect of the above-listed adjustments	(8		)	—		—			—			(8		)
Total comprehensive (loss) income	$	(3,268	)	$	16,305	$	(1,455	)	$	(14,850	)	$	(3,268	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)



	For the Nine Months Ended September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(35,607	)	$	14,059	$	4,483		$	(18,542	)	(35,607		)
Unrealized gain on short-term investments	363			—		—			—			363
Currency translation adjustment	—			—		(4,091		)	—			(4,091		)
Changes in pension plan asset and benefit obligation	(1		)	—		—			—			(1		)
Tax effect of the above-listed adjustments	(85		)	—		—			—			(85		)
Total comprehensive (loss) income	$	(35,330	)	$	14,059	$	392		$	(18,542	)	$	(39,421	)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)



	For the Nine Months Ended September 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) earnings	$	(21,798	)	$	33,686	$	(1,593	)	$	(32,093	)	(21,798		)
Unrealized gain on short-term investments	370			—		—			—			370
Changes in pension plan asset and benefit obligations	(2		)	—		—			—			(2		)
Tax effect of the above-listed adjustments	(134		)	—		—			—			(134		)
Total comprehensive (loss) income	$	(21,564	)	$	33,686	$	(1,593	)	$	(32,093	)	$	(21,564	)

Condensed Consolidating Statements of Cash Flows

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)



	For the Nine Months Ended September 30, 2018
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(25,451	)	$	6,439		$	10,964		$	—	$	(8,048	)
Investing activities:
Purchase of property and equipment	(20,580		)	—			(2,181		)	—		(22,761		)
Proceeds from asset dispositions	1,453			—			—			—		1,453
Purchase of short-term investments	(284,277		)	—			—			—		(284,277		)
Purchase of restricted investments	(7,705		)	—			—			—		(7,705		)
Proceeds from sale of short-term investments	318,007			—			—			—		318,007
Loan to unconsolidated affiliate	(274		)	—			—			—		(274		)
Net cash (used in) investing activities	6,624			—			(2,181		)	—		4,443
Financing activities:
Debt issuance costs	(874		)	—			—			—		(874		)
Proceeds from line of credit	34,295			—			—			—		34,295
Payments on line of credit	(151,795		)	—			—			—		(151,795		)
Proceeds from Term Loan	130,000											130,000
Due to/from affiliate, net	17,158			(5,631		)	(11,527		)	—		—
Repurchase of common stock	(99		)	—			—			—		(99		)
Net cash provided by (used in) financing activities	28,685			(5,631		)	(11,527		)	—		11,527
Effect of exchange rate changes on cash	—			—			(239		)	—		(239		)
Increase (decrease) in cash	9,858			808			(2,983		)	—		7,683
Cash, beginning of period	47			1,072			7,651			—		8,770
Cash, end of period	$	9,905		$	1,880		$	4,668		$	—	$	16,453

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)



	For the Nine Months Ended September 30, 2017
	Parent Company Only (issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(43,328	)	$	33,670		$	7,790		$	—	$	(1,868	)
Investing activities:
Purchase of property and equipment	(49,227		)	—			—			—		(49,227		)
Proceeds from asset dispositions	21			—			—			—		21
Purchase of short-term investments	(268,525		)	—						—		(268,525		)
Proceeds from sale of short-term investments	354,250			—						—		354,250
Payments of deposits on aircraft	—			—						—		—
Net cash provided by investing activities	36,519			—			—			—		36,519
Financing activities:
Proceeds from line of credit	99,150			—			—			—		99,150
Payments on line of credit	(133,150		)	—			—			—		(133,150		)
Repurchase of common stock	(256		)	—			—			—		(256		)
Due to/from affiliate, net	41,079			(34,699		)	(6,380		)	—		—
Net cash provided by (used in) financing activities	6,823			(34,699		)	(6,380		)	—		(34,256		)
Increase (decreased) in cash	14			(1,029		)	1,410			—		395
Cash, beginning of period	36			2,100			460			—		2,596
Cash, end of period	$	50		$	1,071		$	1,870		$	—	$	2,991