(15)

VARIABLE INTEREST ENTITY

We account for our West African operations as a variable interest entity, which is defined as an entity that either (a) has insufficient equity to permit the entity to finance its operations without additional subordinated financial support or (b) has equity investors who lack the characteristics of a controlling financial interest. As of December 31, 2015, we had a 49% investment in the common stock of PHI Century Limited (“PHIC”), a Ghanaian entity. We acquired our 49% interest on May 26, 2011, PHIC’s date of incorporation. The purpose of PHIC is to provide oil and gas flight services in Ghana and the West African region. For the year ended December 31, 2015, we recorded a loss in equity of unconsolidated affiliate of $0.3 million relative to our 49% equity ownership. We had $1.5 million of Trade receivables as of December 31, 2015 from PHIC. At December 31, 2015, we recorded an allowance for bad debts against this trade receivables of $1.5 million as we do not anticipate that we will be able to recover them, For the year ended December 31, 2014, we recorded earnings in equity of unconsolidated affiliate of $0.1 million relative to our 49% equity ownership. In addition, we had $2.8 million of Trade receivables and $0.9 million accrued liabilities as of December 31, 2014 from PHIC. Our investment in the common stock of PHIC is included in Other assets on our Condensed Consolidated Balance Sheet and was $-0- million at December 31, 2015 and December 31, 2014. Included in Operating revenues for the years ended December 31, 2015 and December 31, 2014 was $-0- million and $3.4 million of revenues from services provided to PHIC, respectively.