v3.6.0.2

Condensed Consolidating Financial Information - Guarantor Subsidiaries

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Financial Information - Guarantor Subsidiaries

(16) CONDENSED CONSOLIDATING FINANCIAL INFORMATION – GUARANTOR SUBSIDIARIES

Our 5.25% Senior Notes are fully and unconditionally guaranteed on a joint and several, senior basis by all of our domestic subsidiaries. All of our domestic subsidiaries are directly or indirectly 100% owned.

The following supplemental condensed financial information sets forth, on a consolidated basis, the balance sheet, statement of operations, statement of comprehensive income, and statement of cash flows information for PHI, Inc. (“Parent Company Only”) and the guarantor subsidiaries. The eliminating entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenues and expenses. The condensed consolidating financial statements have been prepared on the same basis as the consolidated financial statements of PHI, Inc. The equity method is followed by the parent company within these condensed consolidating financials.

The transactions reflected in “Due to/from affiliates, net” in the following condensed consolidated statements of cash flows primarily consist of centralized cash management activities between PHI, Inc. and its subsidiaries, pursuant to which cash earned by the guarantor subsidiaries is regularly transferred to PHI, Inc. to be centrally managed. Because these balances are treated as short-term borrowings of the Parent Company, serve as a financing and cash management tool to meet our short-term operating needs, are large, turn over quickly and are payable to the guarantor subsidiaries on demand, we present borrowings and repayments with our affiliates on a net basis within the condensed consolidating statement of cash flows. Net receivables from our affiliates are considered advances and net payables to our affiliates are considered borrowings, and both changes are presented as financing activities in the following condensed consolidating statements of cash flows.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

		December 31, 2016
		Parent
		Company				Guarantor
		Only (issuer)				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 guarantor subsidiaries’ amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

		December 31, 2015
		Parent
		Company				Guarantor
		Only (issuer)				Subsidiaries (1)				Eliminations				Consolidated
ASSETS
Current Assets:
Cash		$	46			$	2,361			$	—			$	2,407
Short-term investments			284,523				—				—				284,523
Accounts receivable – net			70,336				74,442				—				144,778
Intercompany receivable			—				90,943				(90,943	)			—
Inventories of spare parts – net			60,060				9,431				—				69,491
Prepaid expenses			7,162				1,789				—				8,951
Deferred income taxes			10,379				—				—				10,379
Income taxes receivable			1,002				(241	)			—				761
Total current assets			433,508				178,725				(90,943	)			521,290
Investment in subsidiaries			330,848				—				(330,848	)			—
Property and equipment – net			632,759				250,770				—				883,529
Restricted investments			15,336				—				—				15,336
Other assets			5,975				203				—				6,178
Total assets		$	1,418,426			$	429,698			$	(421,791	)		$	1,426,333
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	25,512			$	5,861			$	—			$	31,373
Accrued liabilities			29,138				15,621				—				44,759
Intercompany payable			90,943				—				(90,943	)			—
Total current liabilities			145,593				21,482				(90,943	)			76,132
Long-term debt			553,501				—				—				553,501
Deferred income taxes and other long-term liabilities			92,334				77,368				—				169,702
Shareholders’ Equity:
Common stock and paid-in capital			306,444				79,061				(79,061	)			306,444
Accumulated other comprehensive loss			(567	)			—				—				(567	)
Retained earnings			321,121				251,787				(251,787	)			321,121
Total shareholders’ equity			626,998				330,848				(330,848	)			626,998
Total liabilities and shareholders’ equity		$	1,418,426			$	429,698			$	(421,791	)		$	1,426,333

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

		For the year ended December 31, 2016
		Parent
		Company				Guarantor
		Only (issuer)				Subsidiaries (1)				Eliminations				Consolidated
Operating revenues, net		$	339,829			$	294,269			$	—			$	634,098
Expenses:
Direct expenses			347,532				245,018				—				592,550
Selling, general, and administrative expenses			32,911				11,525				(18	)			44,418
Total operating expenses			380,443				256,543				(18	)			636,968
Gain on disposition of assets, net			(3,350	)			—				—				(3,350	)
Impairment of assets			407				—				—				407
Equity in profit of unconsolidated affiliate			(151	)			—				—				(151	)
Operating (loss) income			(37,520	)			37,726				18				224
Equity in net earnings of consolidated subsidiaries			(22,182	)			—				22,182				—
Interest expense			30,585				59				—				30,644
Other income, net			(3,284	)			(5	)			18				(3,271	)
			5,119				54				22,200				27,373
(Loss) earnings before income taxes			(42,639	)			37,672				(22,182	)			(27,149	)
Income tax (benefit) expense			(15,959	)			15,490				—				(469	)
Net (loss) earnings		$	(26,680	)		$	22,182			$	(22,182	)		$	(26,680	)
		For the year ended December 31, 2015
		Parent
		Company				Guarantor
		Only (issuer)				Subsidiaries (1)				Eliminations				Consolidated
Operating revenues, net		$	476,969			$	327,259			$	—			$	804,228
Expenses:
Direct expenses			426,239				260,829				(18	)			687,050
Selling, general, and administrative expenses			35,694				10,728				—				46,422
Total operating expenses			461,933				271,557				(18	)			733,472
Loss on disposition of assets, net			339				—				—				339
Equity in loss of unconsolidated affiliate			306				—				—				306
Operating income			14,391				55,702				18				70,111
Equity in net earnings of consolidated subsidiaries			(31,225	)			—				31,225				—
Interest expense			28,946				120				—				29,066
Other income, net			(2,222	)			(7	)			18				(2,211	)
			(4,501	)			113				31,243				26,855
Earnings before income taxes			18,892				55,589				(31,225	)			43,256
Income tax (benefit) expense			(8,032	)			24,364				—				16,332
Net earnings		$	26,924			$	31,225			$	(31,225	)		$	26,924

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

		For the year ended December 31, 2014
		Parent
		Company				Guarantor
		Only (issuer)				Subsidiaries (1)				Eliminations				Consolidated
Operating revenues, net		$	504,180			$	332,090			$	—			$	836,270
Expenses:
Direct expenses			411,398				258,627				(18	)			670,007
Selling, general, and administrative expenses			32,985				10,186				—				43,171
Total operating expenses			444,383				268,813				(18	)			713,178
Loss on disposition of assets, net			848				—				—				848
Impairment of assets			10,508				—				—				10,508
Equity in loss of unconsolidated affiliate			96				—				—				96
Operating income			48,345				63,277				18				111,640
Equity in net earnings of consolidated subsidiaries			(38,740	)			—				38,740				—
Interest expense			29,510				—				—				29,510
Loss on debt extinguishment			29,833				—				—				29,833
Other income, net			(819	)			(17	)			18				(818	)
			19,784				(17	)			38,758				58,525
Earnings before income taxes			28,561				63,294				(38,740	)			53,115
Income tax (benefit) expense			(4,127	)			24,554				—				20,427
Net earnings		$	32,688			$	38,740			$	(38,740	)		$	32,688

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Thousands of dollars)

		For the year ended December 31, 2016
		Parent
		Company				Guarantor
		Only				Subsidiaries (1)				Eliminations				Consolidated
Net (loss) earnings		$	(26,680	)		$	22,182			$	(22,182	)		$	(26,680	)
Unrealized gain on short-term investments			241				—				—				241
Changes in pension plan assets and benefit obligations			(39	)			—				—				(39	)
Tax effect			(113	)			—				—				(113	)
Total comprehensive (loss) income		$	(26,591	)		$	22,182			$	(22,182	)		$	(26,591	)
		For the year ended December 31, 2015
		Parent
		Company				Guarantor
		Only				Subsidiaries (1)				Eliminations				Consolidated
Net earnings		$	26,924			$	31,225			$	(31,225	)		$	26,924
Unrealized loss on short-term investments			(641	)			—				—				(641	)
Other unrealized gain			24				—				—				24
Changes in pension plan assets and benefit obligations			7				—				—				7
Tax effect			254				—				—				254
Total comprehensive income		$	26,568			$	31,225			$	(31,225	)		$	26,568
		For the year ended December 31, 2014
		Parent
		Company				Guarantor
		Only				Subsidiaries (1)				Eliminations				Consolidated
Net earnings		$	32,688			$	38,740			$	(38,740	)		$	32,688
Unrealized loss on short-term investments			(285	)			—				—				(285	)
Other unrealized loss			(24	)			—				—				(24	)
Changes in pension plan assets and benefit obligations			17				—				—				17
Tax effect			105				—				—				105
Total comprehensive income		$	32,501			$	38,740			$	(38,740	)		$	32,501

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

		For the year ended December 31, 2016
		Parent
		Company				Guarantor
		Only (issuer)				Subsidiaries (1)				Eliminations				Consolidated
Net cash (used in) provided by operating activities		$	(46,738	)		$	46,174			$	—			$	(564	)
Investing activities:
Purchase of property and equipment			(81,484	)			(358	)			—				(81,842	)
Proceeds from asset dispositions			14,983				—				—				14,983
Purchase of short-term investments			(321,453	)			—				—				(321,453	)
Proceeds from sale of short-term investments			316,543				—				—				316,543
Payments of deposits on aircraft			(2,249	)			—				—				(2,249	)
Loan to unconsolidated affiliate			(1,200	)			—				—				(1,200	)
Net cash used in investing activities			(74,860	)			(358	)			—				(75,218	)
Financing activities:
Repurchase of common stock			(529	)											(529	)
Proceeds on line of credit			264,700				—				—				264,700
Payments on line of credit			(188,200	)			—				—				(188,200	)
Due to/from affiliate, net			45,617				(45,617	)			—				—
Net cash provided by (used in) financing activities			121,588				(45,617	)			—				75,971
(Decrease) increase in cash			(10	)			199				—				189
Cash, beginning of year			46				2,361				—				2,407
Cash, end of year		$	36			$	2,560			$	—			$	2,596

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

		For the year ended December 31, 2015
		Parent Company Only (issuer)				Guarantor Subsidiaries (1)				Eliminations				Consolidated
Net cash provided by operating activities					$				60,241									$	73,677			$	—			$	133,918
Investing activities:
Purchase of property and equipment			(57,123	)			—				—				(57,123	)
Proceeds from asset dispositions			5,236				—				—				5,236
Purchase of short-term investments			(608,649	)			—				—				(608,649	)
Proceeds from sale of short-term investments			505,966				—				—				505,966
Payments of deposits on aircraft			(1,273	)			—				—				(1,273	)
Refunds of deposits on aircraft			6,010				—				—				6,010
Net cash used in investing activities			(149,833	)			—				—				(149,833	)
Financing activities:
Repurchase of common stock			(2,448	)											(2,448	)
Proceeds on line of credit			232,660				—				—				232,660
Payments on line of credit			(218,160	)			—				—				(218,160	)
Due to/from affiliate, net			77,535				(77,535	)			—				—
Net cash provided by (used in) financing activities			89,587				(77,535	)			—				12,052
Decrease in cash			(5	)			(3,858	)			—				(3,863	)
Cash, beginning of year			51				6,219				—				6,270
Cash, end of year		$	46			$	2,361			$	—			$	2,407

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

		For the year ended December 31, 2014
		Parent Company Only (issuer)				Guarantor Subsidiaries (1)				Eliminations				Consolidated
Net cash provided by operating activities					$				51,476									$	68,043			$	—			$	119,519
Investing activities:
Purchase of property and equipment			(157,690	)			—				—				(157,690	)
Proceeds from asset dispositions			10,266				—				—				10,266
Purchase of short-term investments			(465,094	)			—				—				(465,094	)
Proceeds from sale of short-term investments			363,110				—				—				363,110
Refund of deposits on aircraft			11,506				—				—				11,506
Payments of deposits on aircraft			(6,948	)			—				—				(6,948	)
Loan to unconsolidated affiliate			(200	)			—				—				(200	)
Net cash used in investing activities			(245,050	)			—				—				(245,050	)
Financing activities:
Proceeds from issuance of Senior Notes due 2019			500,000				—				—				500,000
Repayment of Senior Notes due 2018			(300,000	)			—				—				(300,000	)
Premium and cost to retire debt early			(26,749	)			—				—				(26,749	)
Debt issuance costs			(6,232	)			—				—				(6,232	)
Proceeds from line of credit			264,253				—				—				264,253
Payments on line of credit			(300,253	)			—				—				(300,253	)
Repurchase of common stock			(152	)			—				—				(152	)
Due to/from affiliate, net			62,706				(62,706	)			—				—
Net cash provided by (used in) financing activities			193,573				(62,706	)			—				130,867
(Decrease) increase in cash			(1	)			5,337				—				5,336
Cash, beginning of year			52				882				—				934
Cash, end of year		$	51			$	6,219			$	—			$	6,270

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

X

- Definition

The entire disclosure for condensed financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04)
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64809438&loc=d3e5614-111684

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01(a))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

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X

- References

No definition available.

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