Phased out

Phased out (together with its opposite, phased in) is part of a permanent's status, like tapped or face down. Like all status, only permanents can be phased out. A phased-out permanent is treated for most purposes as though it didn't exist. Permanents enter the battlefield phased in by default. Usually if a permanent is phased out it's because it, or something it's attached to, has phasing (q.v.).

Rules
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Phased-out zone
The phased-out zone is an obsolete game zone. Prior to the Magic 2010 rules update, permanents that phase out (and any Auras or Equipment attached to them) would be put into the phased-out zone to indicate their new status. Despite changing game zones, the original phasing rules treated phased-out permanents as though they hadn't changed zones. This was unintuitive, so this was changed to the current functionality of a phased-out permanent being treated as though it didn't exist, without actually changing zones.