x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 98-0587405 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | x |
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Adjusted EBITDAR | Adjusted EBITDAR is defined as earnings before interest, taxes, depreciation, amortization, helicopter lease and associated costs, restructuring expense, asset impairments, gain (loss) on disposal of assets, foreign exchange gain (loss), other financing income (charges) and reorganization items, net, or total revenue plus earnings from equity accounted investees less direct costs, excluding helicopter lease and associated costs, and general and administration costs. This is a non-GAAP financial measure. |
Adjusted EBITDAR margin | Adjusted EBITDAR margin is calculated as Adjusted EBITDAR divided by total revenue less reimbursable revenue. Cost reimbursements from customers are recorded as reimbursable revenue with the related reimbursement expense in direct costs. This is a non-GAAP financial measure. |
EMS | Emergency medical services. |
Heavy helicopter | A category of twin-engine helicopters that requires two pilots, can accommodate 16 to 26 passengers and can operate under instrument flight rules, which allow daytime and nighttime flying in a variety of weather conditions. The greater passenger capacity, larger cabin, longer flight range, and ability to operate in adverse weather conditions make heavy helicopters more suitable than single engine helicopters for offshore support. Heavy helicopters are generally utilized to support the oil and gas sector, construction and forestry industries and SAR and EMS customer requirements. |
Long-term contracts | Contracts of three years or longer in duration. |
Medium helicopter | A category of twin-engine helicopters that generally requires two pilots, can accommodate eight to 15 passengers and can operate under instrument flight rules, which allow daytime and nighttime flying in a variety of weather conditions. The greater passenger capacity, longer flight range, and ability to operate in adverse weather conditions make medium helicopters more suitable than single engine helicopters for offshore support. Medium helicopters are generally utilized to support the oil and gas sector, construction and forestry industries and SAR and EMS customer bases in certain jurisdictions. Medium helicopters can also be used to support the utility and mining sectors, as well as certain parts of the construction and forestry industries, where transporting a smaller number of passengers or carrying light loads over shorter distances is required. |
MRO | Maintenance, repair and overhaul. |
New technology | When used herein to classify our helicopters, a category of higher-value, recently produced, more sophisticated and more comfortable helicopters, including Airbus Helicopters H225, H135, H145 and H155; AgustaWestland’s AW139; and Sikorsky’s S76C++ and S92A. |
OEM | Original equipment manufacturer. |
PBH | Power-by-the-hour. A program where a helicopter operator pays a fee per flight hour to an MRO provider as compensation for repair and overhaul components required in order for the helicopter to maintain an airworthy condition. |
Rotables | Helicopter parts that can be repaired and reused such that they typically have an expected life approximately equal to the helicopters that they support. |
SAR | Search and rescue. |
April 30, 2016 | July 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 266,130 | $ | 288,020 | |||
Receivables, net of allowance for doubtful accounts of $2.1 million and $3.4 million, respectively (note 3(a)(ii)) | 182,507 | 168,356 | |||||
Income taxes receivable | 5,962 | 4,671 | |||||
Inventories (note 5) | 92,249 | 89,337 | |||||
Prepaid expenses | 38,766 | 31,978 | |||||
Other assets (note 6) | 40,059 | 38,416 | |||||
625,673 | 620,778 | ||||||
Property and equipment, net | 967,619 | 869,716 | |||||
Investments (note 3(b)(i)) | 37,640 | 37,103 | |||||
Intangible assets | 82,898 | 82,794 | |||||
Restricted cash | 25,082 | 15,151 | |||||
Other assets (note 6) | 367,481 | 198,269 | |||||
Deferred income tax assets | 2,570 | 736 | |||||
Assets held for sale | 5,305 | 3,653 | |||||
$ | 2,114,268 | $ | 1,828,200 | ||||
Liabilities and Shareholders’ Deficit | |||||||
Liabilities not subject to compromise: | |||||||
Current liabilities: | |||||||
Payables and accruals | $ | 279,028 | $ | 174,748 | |||
Deferred revenue | 34,413 | 12,994 | |||||
Income taxes payable | 37,960 | 3,966 | |||||
Current facility secured by accounts receivable (note 3(a)(ii)) | 22,339 | — | |||||
Other liabilities (note 7) | 70,540 | 8,541 | |||||
Current portion of debt obligations (note 8) | 1,633,377 | 362,472 | |||||
2,077,657 | 562,721 | ||||||
Debt obligations (note 8) | 25,886 | — | |||||
Deferred revenue | 56,701 | 23,796 | |||||
Other liabilities (note 7) | 242,711 | 69,091 | |||||
Deferred income tax liabilities | 8,775 | 8,527 | |||||
Total liabilities not subject to compromise | 2,411,730 | 664,135 | |||||
Liabilities subject to compromise (note 10) | — | 2,283,932 | |||||
Total liabilities | 2,411,730 | 2,948,067 | |||||
Redeemable non-controlling interests (note 3(a)(i)) | 18,867 | 17,753 | |||||
Redeemable convertible preferred shares: Par value $0.0001 | |||||||
Authorized: 6,000,000; Issued: 671,189 and 671,189; Dividends in arrears: $7.1 million and $7.9 million | 643,967 | 643,967 | |||||
Capital stock: Par value $0.003 (ordinary), $0.0001 (preferred): | |||||||
Authorized: 544,000,000; Issued: 2,721,592 and 2,721,837 | 8 | 8 | |||||
Additional paid-in capital (note 3(a)(i)) | 1,914,560 | 1,915,321 | |||||
Deficit | (2,510,277 | ) | (3,345,626 | ) | |||
Accumulated other comprehensive loss | (364,587 | ) | (351,290 | ) | |||
(960,296 | ) | (1,781,587 | ) | ||||
$ | 2,114,268 | $ | 1,828,200 |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Revenue | $ | 375,937 | $ | 270,436 | |||
Operating expenses: | |||||||
Direct costs | (314,170 | ) | (246,861 | ) | |||
Earnings from equity accounted investees | 1,433 | 261 | |||||
General and administration costs | (16,356 | ) | (15,428 | ) | |||
Depreciation | (40,281 | ) | (35,698 | ) | |||
Restructuring expense (note 4) | (19,379 | ) | (2,405 | ) | |||
Loss on disposal of assets | (987 | ) | (1,125 | ) | |||
(389,740 | ) | (301,256 | ) | ||||
Operating loss | (13,803 | ) | (30,820 | ) | |||
Interest on debt obligations (note 8(a)) | (26,946 | ) | (8,591 | ) | |||
Foreign exchange loss | (10,079 | ) | (18,432 | ) | |||
Other financing income (note 12) | 10,094 | 7,500 | |||||
Reorganization items, net (note 9) | — | (785,390 | ) | ||||
Loss before income tax | (40,734 | ) | (835,733 | ) | |||
Income tax expense (note 13) | (5,908 | ) | (59 | ) | |||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) | |
Net earnings (loss) attributable to: | |||||||
Controlling interest | $ | (53,362 | ) | $ | (835,349 | ) | |
Non-controlling interests | 6,720 | (443 | ) | ||||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) | |
Computation of basic and diluted net loss per ordinary share: | |||||||
Net loss attributable to controlling interest | $ | (53,362 | ) | $ | (835,349 | ) | |
Redeemable convertible preferred share dividends including cumulative effect of dividends in arrears of $0.2 million and $0.8 million | (13,324 | ) | (784 | ) | |||
Adjustment of redeemable non-controlling interest to redemption amount (note 3(a)(i)) | 16,376 | 72 | |||||
Net loss available to common stockholders | $ | (50,310 | ) | $ | (836,061 | ) | |
Net loss per ordinary share available to common stockholders - basic and diluted | $ | (18.55 | ) | $ | (307.19 | ) | |
Weighted average number of ordinary shares outstanding - basic and diluted | 2,712,527 | 2,721,638 |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) | |
Other comprehensive earnings (loss): | |||||||
Net foreign currency translation adjustments | (24,659 | ) | 8,976 | ||||
Net change in defined benefit pension plan, net of income tax | 1,604 | 5,439 | |||||
Comprehensive loss | $ | (69,697 | ) | $ | (821,377 | ) | |
Comprehensive income (loss) attributable to: | |||||||
Controlling interest | $ | (86,439 | ) | $ | (822,052 | ) | |
Non-controlling interests | 16,742 | 675 | |||||
Comprehensive loss | $ | (69,697 | ) | $ | (821,377 | ) |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Cash provided by (used in): | |||||||
Operating activities: | |||||||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) | |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities: | |||||||
Depreciation | 40,281 | 35,698 | |||||
Loss on disposal of assets | 987 | 1,125 | |||||
Earnings from equity accounted investees less dividends received | (793 | ) | 344 | ||||
Deferred income taxes | 138 | 1,815 | |||||
Non-cash stock-based compensation expense | 1,199 | 689 | |||||
Net gain on debt extinguishment (note 12) | (14,687 | ) | — | ||||
Amortization of long-term debt and lease deferred financing costs | 2,469 | 1,142 | |||||
Unrealized net gain on derivative financial instruments | (3,442 | ) | (8,786 | ) | |||
Non-cash defined benefit pension expense (income) (note 14) | (173 | ) | 890 | ||||
Defined benefit contributions and benefits paid | (6,777 | ) | (6,878 | ) | |||
Unrealized loss on foreign currency exchange translation | 10,605 | 18,516 | |||||
Reorganization items, net, non-cash (note 9) | — | 780,510 | |||||
Other | (3,580 | ) | (4,500 | ) | |||
Change in cash resulting from changes in operating assets and liabilities: | |||||||
Receivables, net of allowance | 30,726 | 8,176 | |||||
Income taxes receivable and payable | 93 | (11,467 | ) | ||||
Inventories | 1,818 | (1,399 | ) | ||||
Prepaid expenses | 2,715 | 5,494 | |||||
Payables and accruals | 5,929 | 73,690 | |||||
Deferred revenue | 170 | 393 | |||||
Other assets and liabilities | 4,203 | (11,916 | ) | ||||
Cash provided by operating activities | 25,239 | 47,744 | |||||
Financing activities: | |||||||
Sold interest in accounts receivable, net of collections | 10,602 | (21,620 | ) | ||||
Debt proceeds | 150,000 | — | |||||
Debt and capital lease repayments | (95,868 | ) | (549 | ) | |||
Repurchases of senior unsecured notes | (18,818 | ) | — | ||||
Increase in deferred financing costs | (2,179 | ) | — | ||||
Cash provided by (used in) financing activities | 43,737 | (22,169 | ) | ||||
Investing activities: | |||||||
Property and equipment additions | (80,095 | ) | (11,282 | ) | |||
Proceeds from disposal of property and equipment | 27,723 | 1,844 | |||||
Helicopter deposits net of lease inception refunds | (24,360 | ) | — | ||||
Restricted cash | (16,638 | ) | 9,056 | ||||
Cash used in investing activities | (93,370 | ) | (382 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (7,793 | ) | (3,303 | ) | |||
Change in cash and cash equivalents during the period | (32,187 | ) | 21,890 | ||||
Cash and cash equivalents, beginning of period | 134,297 | 266,130 | |||||
Cash and cash equivalents, end of period | $ | 102,110 | $ | 288,020 | |||
Supplemental cash flow information: | |||||||
Non-cash settlement of obligations by letters of credit (note 8(b)) | $ | — | $ | 39,416 |
Three months ended July 31, 2015 | Capital stock | Additional paid-in capital | Deficit | Accumulated other comprehensive loss | Total shareholders’ deficit | Redeemable non- controlling interests | Redeemable convertible preferred shares | |||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | |||||||||||||||||||||||||||||||
April 30, 2015 | 2,708,312 | $ | 8 | $ | 1,961,007 | $ | (2,070,254 | ) | $ | (316,227 | ) | $ | (425,466 | ) | $ | 16,940 | 617,045 | $ | 589,823 | |||||||||||||||
Issuance of capital stock for stock option and service vesting shares | 7,940 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (34,160 | ) | (34,160 | ) | 9,501 | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | — | 1,199 | — | — | 1,199 | — | — | — | |||||||||||||||||||||||||
Defined benefit plan, net of income tax | — | — | — | — | 1,083 | 1,083 | 521 | — | — | |||||||||||||||||||||||||
Redeemable convertible preferred share dividends | — | — | (13,112 | ) | — | — | (13,112 | ) | — | 13,112 | 13,112 | |||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to redemption amount (note 3(a)(i)) | — | — | 16,376 | — | — | 16,376 | (16,376 | ) | — | — | ||||||||||||||||||||||||
Net earnings (loss) | — | — | — | (53,362 | ) | — | (53,362 | ) | 6,720 | — | — | |||||||||||||||||||||||
July 31, 2015 | 2,716,252 | $ | 8 | $ | 1,965,470 | $ | (2,123,616 | ) | $ | (349,304 | ) | $ | (507,442 | ) | $ | 17,306 | 630,157 | $ | 602,935 | |||||||||||||||
Three months ended July 31, 2016 | Capital stock | Additional paid-in capital | Deficit | Accumulated other comprehensive loss | Total shareholders’ deficit | Redeemable non- controlling interests | Redeemable convertible preferred shares | |||||||||||||||||||||||||||
Number of shares | Amount | Number of shares | Amount | |||||||||||||||||||||||||||||||
April 30, 2016 | 2,721,592 | $ | 8 | $ | 1,914,560 | $ | (2,510,277 | ) | $ | (364,587 | ) | $ | (960,296 | ) | $ | 18,867 | 671,189 | $ | 643,967 | |||||||||||||||
Issuance of capital stock for stock option and service vesting shares | 245 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 8,481 | 8,481 | 495 | — | — | |||||||||||||||||||||||||
Stock-based compensation expense | — | — | 689 | — | — | 689 | — | — | — | |||||||||||||||||||||||||
Defined benefit plan, net of income tax | — | — | — | — | 4,816 | 4,816 | 623 | — | — | |||||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to redemption amount (note 3(a)(i)) | — | — | 72 | — | — | 72 | (72 | ) | — | — | ||||||||||||||||||||||||
De-consolidation of variable interest entity (note 3(a)(i)) | — | — | — | — | — | — | (1,717 | ) | — | — | ||||||||||||||||||||||||
Net loss | — | — | — | (835,349 | ) | — | (835,349 | ) | (443 | ) | — | — | ||||||||||||||||||||||
July 31, 2016 | 2,721,837 | $ | 8 | $ | 1,915,321 | $ | (3,345,626 | ) | $ | (351,290 | ) | $ | (1,781,587 | ) | $ | 17,753 | 671,189 | $ | 643,967 |
1. | Voluntary filing under Chapter 11 of the United States Bankruptcy Code ("Chapter 11"): |
2. | Significant accounting policies: |
(a) | Basis of presentation: |
(b) | Bankruptcy accounting and disclosures: |
(c) | Foreign currency: |
Three months ended | |||||
July 31, 2015 | July 31, 2016 | ||||
Average rates: | |||||
£/US $ | 1.552814 | 1.396682 | |||
CAD/US $ | 0.801231 | 0.771605 | |||
NOK/US $ | 0.127480 | 0.119985 | |||
AUD/US $ | 0.765316 | 0.741358 | |||
€/US $ | 1.111956 | 1.119985 | |||
Period end rates: | |||||
£/US $ | 1.563271 | 1.326969 | |||
CAD/US $ | 0.766460 | 0.766812 | |||
NOK/US $ | 0.122863 | 0.118703 | |||
AUD/US $ | 0.733119 | 0.759758 | |||
€/US $ | 1.102782 | 1.116939 |
(d) | Comparative figures: |
• | all capital stock par value and authorized and issued per share information were adjusted retroactively for all prior periods presented to reflect the reverse share split ratio. This includes the calculations of our weighted average number of ordinary shares outstanding and net loss per ordinary share available to common stockholders; |
• | proportional adjustments were made to the number of ordinary shares available for issuance under the CHC Group Ltd. 2013 Omnibus Incentive Plan (the “2013 Incentive Plan”) and those subject to outstanding equity awards (including stock options, time-based restricted stock units, performance based restricted stock units, service vesting stock options and shares and share price performance options and shares). Additionally, the exercise price of any stock options outstanding under the 2013 Incentive Plan and those subject to other outstanding equity awards were proportionally adjusted to reflect the reverse share split ratio; and |
• | proportional adjustments were made to the per-share conversion price of the Company’s redeemable convertible preferred shares (“preferred shares”) in accordance with the Rights and Restrictions of the Redeemable Convertible Preferred Shares. The reverse share split had no impact on the total number of authorized preferred shares nor the number of preferred shares issued and outstanding or its par value. |
(e) | Recent accounting pronouncements adopted: |
(f) | Recent accounting pronouncements not yet adopted: |
3. | Variable interest entities: |
(a) | VIEs of which we are the primary beneficiary: |
(i) | Local ownership VIEs: |
April 30, 2016 | July 31, 2016 | ||||||
EEA Helicopters Operations B.V. | $ | 17,150 | $ | 17,753 | |||
Atlantic Aviation Limited and Atlantic Aviation FZE | 1,717 | — | |||||
$ | 18,867 | $ | 17,753 |
April 30, 2016 | July 31, 2016 | ||||||
Cash and cash equivalents | $ | 61,396 | $ | 70,449 | |||
Receivables, net of allowance | 58,687 | 60,097 | |||||
Other current assets | 34,279 | 35,548 | |||||
Other long-term assets | 125,181 | 121,205 | |||||
Total assets | $ | 279,543 | $ | 287,299 | |||
Payables and accruals | $ | 57,419 | $ | 55,042 | |||
Intercompany payables | 119,019 | 153,326 | |||||
Other current liabilities | 22,570 | 11,016 | |||||
Accrued pension obligations | 58,452 | 50,496 | |||||
Long-term intercompany payables | 119,429 | 117,144 | |||||
Other long-term liabilities | 29,394 | 27,624 | |||||
Total liabilities | $ | 406,283 | $ | 414,648 |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Revenue | $ | 237,604 | $ | 178,637 | |||
Net earnings (loss) | 14,131 | (15,308 | ) |
(ii) | Accounts receivable securitization: |
April 30, 2016 | July 31, 2016 | ||||||
Cash or Restricted cash | $ | 9,637 | $ | 1,869 | |||
Transferred receivables | 32,876 | 528 | |||||
Current facility secured by accounts receivable | 22,339 | — |
(iii) | Trinity Helicopters Limited: |
(b) | VIEs of which we are not the primary beneficiary: |
(i) | Local ownership VIEs: |
April 30, 2016 | July 31, 2016 | ||||||||||||||
Carrying amounts | Maximum exposure to loss | Carrying amounts | Maximum exposure to loss | ||||||||||||
Receivables, net of allowance | $ | 3,733 | $ | 3,733 | $ | 2,987 | $ | 2,987 | |||||||
Equity method investment | 29,508 | 29,508 | 29,860 | 29,860 |
(ii) | Other VIE lessors: |
4. | Restructuring: |
Employee related severance and other costs | Lease associated costs | Total | |||||||||
Balance at April 30, 2015 | $ | 23,829 | $ | 48,583 | $ | 72,412 | |||||
Restructuring expense (i) | 4,952 | 14,427 | 19,379 | ||||||||
Non-cash charges and foreign exchange (ii) | 372 | (5,779 | ) | (5,407 | ) | ||||||
Cash payments | (10,970 | ) | (6,443 | ) | (17,413 | ) | |||||
Balance at July 31, 2015 | $ | 18,183 | $ | 50,788 | $ | 68,971 | |||||
Balance at April 30, 2016 | $ | 10,956 | $ | 58,311 | $ | 69,267 | |||||
Restructuring expense (i) | 4,413 | (2,008 | ) | 2,405 | |||||||
Reorganization items, net (iii) | — | (42,899 | ) | (42,899 | ) | ||||||
Non-cash charges and foreign exchange | 141 | (620 | ) | (479 | ) | ||||||
Cash payments | (7,280 | ) | (1,057 | ) | (8,337 | ) | |||||
Total restructuring liabilities | 8,230 | 11,727 | 19,957 | ||||||||
Less: Liabilities subject to compromise | — | (11,727 | ) | (11,727 | ) | ||||||
Balance at July 31, 2016 | $ | 8,230 | $ | — | $ | 8,230 |
(i) | The restructuring expense includes certain estimates related to the timing and costs of restructuring activities. Any adjustments to these estimates are reflected at each period end. |
(ii) | The related asset and liability balances for the leased helicopters we have ceased to use were written off to the lease restructuring expenses. |
(iii) | We have adjusted the restructuring liability for leases which have been approved for rejection by the Bankruptcy Court. In accordance with the guidance of ASC 852 Reorganizations, we have recorded the expected allowed claim from the lessors on approval of the lease rejections (note 9). |
5. | Inventories: |
April 30, 2016 | July 31, 2016 | ||||||
Work-in-progress for long-term maintenance contracts under completed contract accounting | $ | 5,749 | $ | 7,279 | |||
Consumables | 100,667 | 97,344 | |||||
Provision for obsolete and excess inventories | (14,167 | ) | (15,286 | ) | |||
$ | 92,249 | $ | 89,337 |
6. | Other assets: |
April 30, 2016 | July 31, 2016 | ||||||
Current: | |||||||
Helicopter operating lease funded residual value guarantees (b) | $ | 2,757 | $ | 1,226 | |||
Foreign currency embedded derivatives (a) | 14,063 | 16,983 | |||||
Mobilization costs | 5,502 | 5,508 | |||||
Deferred lease financing costs | 2,969 | 1,694 | |||||
Prepaid helicopter rentals (b) | 3,783 | 1,539 | |||||
Residual value guarantees (b) | 2,110 | 166 | |||||
Foreign currency forward contracts | 62 | — | |||||
Other receivables | 8,813 | 11,300 | |||||
$ | 40,059 | $ | 38,416 | ||||
Non-current: | |||||||
Helicopter operating lease funded residual value guarantees (b) | $ | 146,460 | $ | 2,885 | |||
Helicopter deposits | 66,170 | 66,170 | |||||
Security deposits (b) | 39,465 | 21,779 | |||||
Deferred lease financing costs (b) | 12,899 | 7,749 | |||||
Foreign currency embedded derivatives (a) | 20,301 | 23,611 | |||||
Long-term income tax receivable | 30,570 | 34,558 | |||||
Prepaid helicopter rentals (b) | 12,780 | 6,256 | |||||
Accrued pension asset | 9,764 | 13,085 | |||||
Mobilization costs | 9,801 | 9,144 | |||||
Pension guarantee assets | 7,998 | 7,656 | |||||
Residual value guarantees (b) | 6,765 | 532 | |||||
Foreign currency forward contracts | 46 | — | |||||
Other | 4,462 | 4,844 | |||||
$ | 367,481 | $ | 198,269 |
(a) | We enter into long-term revenue agreements, which provide for pricing denominated in currencies other than the functional currency of the parties to the contract. This pricing feature was determined to be an embedded derivative which has been bifurcated for valuation and accounting purposes. The embedded derivative contracts and forward contracts are measured at fair value and included in other assets and/or other liabilities (note 7). The gains and losses due to the change in fair value are recognized in the statement of operations as part of other financing income (note 12). The fair value of the foreign currency embedded derivatives is determined to be a recurring Level 2 fair value measurement determined using a present value model. There were no transfers between categories in the fair value hierarchy. |
(b) | As of July 31, 2016, the Bankruptcy Court had approved 65 helicopter lease rejections. In accordance with the guidance of ASC 852 Reorganizations, we have recorded the expected allowed claim from the lessors on the Bankruptcy Court’s approval of the lease rejection (note 10) with all lease related assets and liabilities adjusted to reorganization items, net (note 9). The lessors’ rights of enforcement for those claims will be subject to the applicable provisions of the Bankruptcy Code. |
7. | Other liabilities: |
April 30, 2016 | July 31, 2016 | ||||||
Current: | |||||||
Restructuring (c) | $ | 44,242 | $ | 8,177 | |||
Foreign currency forward contracts (b) | 7,092 | — | |||||
Deferred gains on sale-leasebacks of helicopters (c) | 13,987 | — | |||||
Residual value guarantees (c) | 3,359 | — | |||||
Foreign currency embedded derivatives (a) | 441 | 65 | |||||
Contract inducement | 724 | 299 | |||||
Other | 695 | — | |||||
$ | 70,540 | $ | 8,541 | ||||
Non-current: | |||||||
Accrued pension obligations | $ | 103,895 | $ | 51,021 | |||
Deferred gains on sale-leasebacks of helicopters (c) | 68,178 | — | |||||
Residual value guarantees (c) | 19,654 | — | |||||
Restructuring (c) | 25,025 | 53 | |||||
Insurance claims accrual | 10,776 | 9,577 | |||||
Contract inducement | 6,304 | 2,506 | |||||
Foreign currency forward contracts (b) | 813 | — | |||||
Foreign currency embedded derivatives (a) | 261 | — | |||||
Other | 7,805 | 5,934 | |||||
$ | 242,711 | $ | 69,091 |
(a) | The fair value of the foreign currency embedded derivatives is determined to be a recurring Level 2 fair value measurement determined using a present value model. There were no transfers between categories in the fair value hierarchy. |
(b) | All of our foreign currency forward contracts were terminated and have been classified as liabilities subject to compromise as at July 31, 2016. |
(c) | As of July 31, 2016, the Bankruptcy Court had approved 65 helicopter lease rejections. In accordance with the guidance of ASC 852 Reorganizations, we have recorded the expected allowed claim from the lessors on the Bankruptcy Court’s approval of the lease rejection (note 10) with all lease related assets and liabilities adjusted to reorganization items, net (note 9). The lessors’ rights of enforcement for those claims will be subject to the applicable provisions of the Bankruptcy Code. |
8. | Debt obligations: |
Principal Repayment terms | Facility maturity dates | April 30, 2016 | July 31, 2016 | ||||||||
Senior secured notes (a) | At maturity | October 2020 | $ | 1,007,539 | $ | 1,014,289 | |||||
Senior unsecured notes (a) | At maturity | June 2021 | 94,732 | 94,732 | |||||||
Revolving credit facility (a), (b): | |||||||||||
US LIBOR plus a 4.5% margin | At maturity | January 2019 | 327,500 | 327,500 | |||||||
CDOR plus a 6.5% margin | At maturity | January 2019 | — | 18,161 | |||||||
EURIBOR plus a 6.5% margin | At maturity | January 2019 | — | 21,255 | |||||||
Asset-based revolving credit facility (a) | At maturity | June 2020 | 139,000 | 139,000 | |||||||
Capital lease obligations (USD) | Quarterly | August 2016 - September 2018 | 75,190 | 43,672 | |||||||
Capital lease obligations (Euro) | Quarterly | September 2025 | 14,872 | — | |||||||
Boundary Bay financing – 6.93% (CAD) | Monthly | April 2035 | 26,587 | 25,419 | |||||||
Unamortized deferred financing costs (a) | (26,157 | ) | (5,324 | ) | |||||||
Total debt obligations | 1,659,263 | 1,678,704 | |||||||||
Less: Liabilities subject to compromise | — | (1,316,232 | ) | ||||||||
Less: Current portion of debt obligations | (1,633,377 | ) | (362,472 | ) | |||||||
Long-term portion of debt obligations | $ | 25,886 | $ | — |
(a) | Event of default: |
(b) | Revolving credit facility: |
(c) | Carrying value of other financial instruments, measured at other than fair value: |
April 30, 2016 | July 31, 2016 | ||||||||||||||
Fair value | Carrying value | Fair value | Carrying value | ||||||||||||
Senior secured notes | $ | 461,502 | $ | 1,007,539 | $ | 484,323 | $ | 1,014,289 | |||||||
Senior unsecured notes | 6,158 | 94,732 | 15,867 | 94,732 |
9. | Reorganization items, net: |
Three months ended | |||
July 31, 2016 | |||
Adjustments to debt obligations (a) | $ | (27,051 | ) |
Adjustments to allowed claims for rejected leases (b) | (716,682 | ) | |
Adjustments to other allowed claims (c) | (16,986 | ) | |
Professional fees (d) | (24,671 | ) | |
Total reorganization items, net | $ | (785,390 | ) |
(a) | Adjustments to debt obligations: |
(b) | Adjustments to allowed claims for rejected leases: |
(c) | Adjustments to other allowed claims: |
(d) | Professional fees: |
10. | Liabilities subject to compromise: |
July 31, 2016 | |||
Payables, accruals and other liabilities | $ | 328,957 | |
Debt obligations (note 8) | 1,316,232 | ||
Estimated allowed claim on lease rejections (note 9) | 638,743 | ||
Total liabilities subject to compromise | $ | 2,283,932 |
11. | Condensed combined and consolidated debtor-in-possession financial information: |
July 31, 2016 | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ | 190,767 | |
Receivables, net of allowance for doubtful accounts | 103,212 | ||
Receivables due from non-filing entities | 710,006 | ||
Income taxes receivable | 2,083 | ||
Inventories | 84,538 | ||
Prepaid expenses | 16,957 | ||
Other assets | 13,688 | ||
1,121,251 | |||
Property and equipment, net | 715,443 | ||
Investments | 458,070 | ||
Intangible assets | 81,443 | ||
Restricted cash | 5,462 | ||
Other assets | 117,151 | ||
Long-term receivables due from non-filing entities | 50,837 | ||
Deferred income tax assets | 321 | ||
Assets held for sale | 3,653 | ||
$ | 2,553,631 | ||
Liabilities and Deficit | |||
Liabilities not subject to compromise: | |||
Current liabilities: | |||
Payables and accruals | $ | 117,077 | |
Deferred revenue | 4,906 | ||
Income taxes payable | 298 | ||
Current payables due to non-filing entities | 89,369 | ||
Other liabilities | 4,878 | ||
Current portion of debt obligations | 362,472 | ||
579,000 | |||
Deferred revenue | 1,988 | ||
Other liabilities | 3,370 | ||
Deferred income tax liabilities | 565 | ||
Total liabilities not subject to compromise | 584,923 | ||
Liabilities subject to compromise | 2,283,932 | ||
Liabilities subject to compromise due to non-filing entities | 804,643 | ||
Total liabilities | 3,673,498 | ||
Redeemable non-controlling interests | 17,753 | ||
Redeemable convertible preferred shares | 643,967 | ||
Deficit | (1,781,587 | ) | |
$ | 2,553,631 |
Three months ended | |||
July 31, 2016 | |||
Revenue | $ | 173,130 | |
Operating expenses: | |||
Direct costs | (131,818 | ) | |
Loss from equity accounted investees | (4,544 | ) | |
General and administration costs | (17,340 | ) | |
Depreciation | (28,713 | ) | |
Restructuring expense | (602 | ) | |
Loss on disposal of assets | (1,063 | ) | |
(184,080 | ) | ||
Operating loss | (10,950 | ) | |
Financing charges | (38,924 | ) | |
Reorganization items, net | (785,390 | ) | |
Loss before income tax | (835,264 | ) | |
Income tax expense | (85 | ) | |
Net loss | $ | (835,349 | ) |
Net loss attributable to: | |||
Controlling interest | $ | (835,349 | ) |
Non-controlling interests | — | ||
Net loss | $ | (835,349 | ) |
Comprehensive loss | $ | (822,052 | ) |
Three months ended | |||
July 31, 2016 | |||
Cash provided by operating activities | $ | 29,057 | |
Financing activities: | |||
Capital lease repayments | (549 | ) | |
Cash used in financing activities | (549 | ) | |
Investing activities: | |||
Property and equipment additions | (10,292 | ) | |
Proceeds from disposal of property and equipment | 1,819 | ||
Restricted cash | (141 | ) | |
Cash used in investing activities | (8,614 | ) | |
Cash provided by operations | 19,894 | ||
Effect of exchange rate changes on cash and cash equivalents | (993 | ) | |
Change in cash and cash equivalents during the period | 18,901 | ||
Cash and cash equivalents, beginning of the period | 171,866 | ||
Cash and cash equivalents, end of the period | $ | 190,767 |
12. | Other financing income: |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Amortization of deferred financing costs | $ | (1,861 | ) | $ | (2,132 | ) | |
Net gain on debt extinguishment (a) | 14,687 | — | |||||
Net loss on fair value of foreign currency forward contracts | (15,526 | ) | — | ||||
Net gain on fair value of foreign currency embedded derivatives | 13,709 | 8,786 | |||||
Amortization of guaranteed residual values | (148 | ) | (307 | ) | |||
Interest expense | (4,382 | ) | (92 | ) | |||
Interest income | 5,790 | 1,901 | |||||
Other | (2,175 | ) | (656 | ) | |||
$ | 10,094 | $ | 7,500 |
(a) | On July 20, 2015, one of our subsidiaries repurchased $34.1 million of the senior unsecured notes on the open market at 55.25% of the principal plus accrued and unpaid interest of $0.4 million. A gain on extinguishment of $14.7 million related to the repurchase discount net of the unamortized deferred financing costs was recognized. |
13. | Income taxes: |
14. | Employee pension plans: |
Three months ended | |||||||
July 31, 2015 | July 31, 2016 | ||||||
Current service cost | $ | 4,043 | $ | 3,518 | |||
Interest cost | 5,838 | 5,020 | |||||
Expected return on plan assets | (10,756 | ) | (8,707 | ) | |||
Amortization of net actuarial and experience losses | 1,247 | 1,549 | |||||
Amortization of past service credits | (124 | ) | (111 | ) | |||
Employee contributions | (421 | ) | (379 | ) | |||
$ | (173 | ) | $ | 890 |
15. | Guarantees: |
16. | Commitments: |
Helicopter operating leases (i) | Building, land and equipment operating leases | Total operating leases | |||||||||
2017 | $ | 151,557 | $ | 13,642 | $ | 165,199 | |||||
2018 | 145,208 | 9,876 | 155,084 | ||||||||
2019 | 129,897 | 7,703 | 137,600 | ||||||||
2020 | 108,345 | 4,602 | 112,947 | ||||||||
2021 | 87,336 | 3,961 | 91,297 | ||||||||
Thereafter | 83,350 | 31,192 | 114,542 | ||||||||
$ | 705,693 | $ | 70,976 | $ | 776,669 |
(i) | The helicopter operating leases exclude the remaining contractual lease commitments for 7 helicopters that we have permanently ceased use of in our operations and which do not form part of our prospective fleet strategy, which have been provided for as part of restructuring expense (note 4) and all Bankruptcy Court approved lease rejections (note 9). |
17. | Contingencies: |
(a) | Legal proceedings: |
(b) | Contingent professional fees: |
18. | Segment information: |
• | Helicopter Services; |
• | Heli-One; |
• | Corporate and other. |
Three months ended July 31, 2015 | |||||||||||||||||||
Helicopter Services | Heli-One | Corporate and other | Inter-segment eliminations | Consolidated | |||||||||||||||
Revenue from external customers | $ | 340,500 | $ | 35,437 | $ | — | $ | — | $ | 375,937 | |||||||||
Add: Inter-segment revenues | — | 27,366 | — | (27,366 | ) | — | |||||||||||||
Total revenue | 340,500 | 62,803 | — | (27,366 | ) | 375,937 | |||||||||||||
Direct costs (i) | (220,690 | ) | (55,439 | ) | — | 26,633 | (249,496 | ) | |||||||||||
Earnings from equity accounted investees | 1,433 | — | — | — | 1,433 | ||||||||||||||
General and administration costs | — | — | (16,356 | ) | — | (16,356 | ) | ||||||||||||
Adjusted EBITDAR (ii) | 121,243 | 7,364 | (16,356 | ) | (733 | ) | 111,518 | ||||||||||||
Helicopter lease and associated costs | (64,674 | ) | — | — | — | (64,674 | ) | ||||||||||||
Depreciation | (40,281 | ) | |||||||||||||||||
Restructuring expense (note 4) | (19,379 | ) | |||||||||||||||||
Loss on disposal of assets | (987 | ) | |||||||||||||||||
Operating loss | (13,803 | ) | |||||||||||||||||
Interest on debt obligations | (26,946 | ) | |||||||||||||||||
Foreign exchange loss | (10,079 | ) | |||||||||||||||||
Other financing income | 10,094 | ||||||||||||||||||
Income tax expense | (5,908 | ) | |||||||||||||||||
Net loss | $ | (46,642 | ) |
(i) | Direct costs in the segment information presented excludes helicopter lease and associated costs. In the consolidated statements of operations these costs are combined. |
(ii) | Adjusted EBITDAR is defined as earnings before interest, taxes, depreciation, amortization, helicopter lease and associated costs, restructuring expense, asset impairments, gain (loss) on disposal of assets, foreign exchange gain (loss), other financing income (charges) and reorganization items, net, or total revenue plus earnings from equity accounted investees less direct costs, excluding helicopter lease and associated costs, and general and administration costs. |
Three months ended July 31, 2016 | |||||||||||||||||||
Helicopter Services | Heli-One | Corporate and other | Inter-segment eliminations | Consolidated | |||||||||||||||
Revenue from external customers | $ | 241,932 | $ | 28,504 | $ | — | $ | — | $ | 270,436 | |||||||||
Add: Inter-segment revenues | — | 17,436 | — | (17,436 | ) | — | |||||||||||||
Total revenue | 241,932 | 45,940 | — | (17,436 | ) | 270,436 | |||||||||||||
Direct costs (i) | (166,611 | ) | (44,383 | ) | — | 17,369 | (193,625 | ) | |||||||||||
Earnings from equity accounted investees | 261 | — | — | — | 261 | ||||||||||||||
General and administration costs | — | — | (15,428 | ) | — | (15,428 | ) | ||||||||||||
Adjusted EBITDAR (ii) | 75,582 | 1,557 | (15,428 | ) | (67 | ) | 61,644 | ||||||||||||
Helicopter lease and associated costs | (53,236 | ) | — | — | — | (53,236 | ) | ||||||||||||
Depreciation | (35,698 | ) | |||||||||||||||||
Restructuring expense (note 4) | (2,405 | ) | |||||||||||||||||
Loss on disposal of assets | (1,125 | ) | |||||||||||||||||
Operating loss | (30,820 | ) | |||||||||||||||||
Interest on debt obligations (note 8(a)) | (8,591 | ) | |||||||||||||||||
Foreign exchange loss | (18,432 | ) | |||||||||||||||||
Other financing income | 7,500 | ||||||||||||||||||
Reorganization items, net (note 9) | (785,390 | ) | |||||||||||||||||
Income tax expense | (59 | ) | |||||||||||||||||
Net loss | $ | (835,792 | ) |
(i) | Direct costs in the segment information presented excludes helicopter lease and associated costs. In the consolidated statements of operations these costs are combined. |
(ii) | Adjusted EBITDAR is defined as earnings before interest, taxes, depreciation, amortization, helicopter lease and associated costs, restructuring expense, asset impairments, gain (loss) on disposal of assets, foreign exchange gain (loss), other financing income (charges) and reorganization items, net, or total revenue plus earnings from equity accounted investees less direct costs, excluding helicopter lease and associated costs, and general and administration costs. |
19. | Supplemental condensed consolidated financial information: |
Balance Sheets as at April 30, 2016 (Expressed in thousands of United States dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 87 | $ | 3,138 | $ | 27,581 | $ | 238,462 | $ | (3,138 | ) | $ | 266,130 | ||||||||||
Receivables, net of allowance for doubtful accounts | 45 | 113 | 88,406 | 94,852 | (909 | ) | 182,507 | ||||||||||||||||
Current intercompany receivables | 115 | 821,992 | 730,082 | 551,552 | (2,103,741 | ) | — | ||||||||||||||||
Income taxes receivable | — | — | 2,084 | 3,878 | — | 5,962 | |||||||||||||||||
Inventories | — | — | 87,330 | 4,919 | — | 92,249 | |||||||||||||||||
Prepaid expenses | 7,041 | 125 | 16,104 | 15,621 | (125 | ) | 38,766 | ||||||||||||||||
Other assets | — | 35,016 | 53,540 | 55,395 | (103,892 | ) | 40,059 | ||||||||||||||||
7,288 | 860,384 | 1,005,127 | 964,679 | (2,211,805 | ) | 625,673 | |||||||||||||||||
Property and equipment, net | — | — | 623,825 | 343,794 | — | 967,619 | |||||||||||||||||
Investments | — | — | 665,220 | 29,503 | (657,083 | ) | 37,640 | ||||||||||||||||
Intangible assets | — | — | 81,476 | 1,422 | — | 82,898 | |||||||||||||||||
Restricted cash | — | — | 5,415 | 19,667 | — | 25,082 | |||||||||||||||||
Other assets | 36 | — | 294,152 | 73,293 | — | 367,481 | |||||||||||||||||
Long-term intercompany receivables | — | 96,596 | 59,474 | 399,307 | (555,377 | ) | — | ||||||||||||||||
Deferred income tax assets | — | — | 1,976 | 594 | — | 2,570 | |||||||||||||||||
Assets held for sale | — | — | 5,305 | — | — | 5,305 | |||||||||||||||||
$ | 7,324 | $ | 956,980 | $ | 2,741,970 | $ | 1,832,259 | $ | (3,424,265 | ) | $ | 2,114,268 | |||||||||||
Liabilities and Shareholders’ Equity (Deficit) | |||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||
Payables and accruals | $ | 4,385 | $ | 58,592 | $ | 181,322 | $ | 93,317 | $ | (58,588 | ) | $ | 279,028 | ||||||||||
Deferred revenue | — | — | 27,347 | 7,066 | — | 34,413 | |||||||||||||||||
Income taxes payable | — | 12 | 33,863 | 4,097 | (12 | ) | 37,960 | ||||||||||||||||
Current intercompany payables | 57,481 | 309,040 | 529,617 | 694,817 | (1,590,955 | ) | — | ||||||||||||||||
Current facility secured by accounts receivable | — | — | — | 22,339 | — | 22,339 | |||||||||||||||||
Other liabilities | 68 | 33,860 | 98,530 | 40,819 | (102,737 | ) | 70,540 | ||||||||||||||||
Current portion of debt obligations | — | 1,407,553 | 1,498,315 | 135,062 | (1,407,553 | ) | 1,633,377 | ||||||||||||||||
61,934 | 1,809,057 | 2,368,994 | 997,517 | (3,159,845 | ) | 2,077,657 | |||||||||||||||||
Debt obligations | — | — | 25,886 | — | — | 25,886 | |||||||||||||||||
Long-term intercompany payables | — | — | 398,593 | 60,188 | (458,781 | ) | — | ||||||||||||||||
Accumulated losses of unconsolidated investees in excess of investment | 261,719 | — | — | — | (261,719 | ) | — | ||||||||||||||||
Deferred revenue | — | — | 32,982 | 23,719 | — | 56,701 | |||||||||||||||||
Other liabilities | — | — | 168,019 | 74,692 | — | 242,711 | |||||||||||||||||
Deferred income tax liabilities | — | — | 565 | 8,210 | — | 8,775 | |||||||||||||||||
Total liabilities | 323,653 | 1,809,057 | 2,995,039 | 1,164,326 | (3,880,345 | ) | 2,411,730 | ||||||||||||||||
Redeemable non-controlling interests | — | 17,150 | 17,150 | (41,495 | ) | 26,062 | 18,867 | ||||||||||||||||
Redeemable convertible preferred shares | 643,967 | — | — | — | — | 643,967 | |||||||||||||||||
Shareholders’ equity (deficit) | (960,296 | ) | (869,227 | ) | (270,219 | ) | 709,428 | 430,018 | (960,296 | ) | |||||||||||||
$ | 7,324 | $ | 956,980 | $ | 2,741,970 | $ | 1,832,259 | $ | (3,424,265 | ) | $ | 2,114,268 |
Balance Sheets as at July 31, 2016 (Expressed in thousands of United States dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Assets | |||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 581 | $ | 534 | $ | 48,674 | $ | 238,765 | $ | (534 | ) | $ | 288,020 | ||||||||||
Receivables, net of allowance for doubtful accounts | 46 | 113 | 103,166 | 65,854 | (823 | ) | 168,356 | ||||||||||||||||
Current intercompany receivables | 158 | 191,753 | 963,754 | 740,627 | (1,896,292 | ) | — | ||||||||||||||||
Income taxes receivable | — | — | 2,083 | 2,588 | — | 4,671 | |||||||||||||||||
Inventories | — | — | 84,538 | 4,799 | — | 89,337 | |||||||||||||||||
Prepaid expenses | 2,298 | 125 | 14,659 | 15,021 | (125 | ) | 31,978 | ||||||||||||||||
Other assets | — | 48,195 | 61,883 | 29,831 | (101,493 | ) | 38,416 | ||||||||||||||||
3,083 | 240,720 | 1,278,757 | 1,097,485 | (1,999,267 | ) | 620,778 | |||||||||||||||||
Property and equipment, net | — | — | 534,521 | 335,195 | — | 869,716 | |||||||||||||||||
Investments | — | — | 581,342 | 29,855 | (574,094 | ) | 37,103 | ||||||||||||||||
Intangible assets | — | — | 81,443 | 1,351 | — | 82,794 | |||||||||||||||||
Restricted cash | — | — | 5,462 | 9,689 | — | 15,151 | |||||||||||||||||
Other assets | — | — | 117,151 | 81,118 | — | 198,269 | |||||||||||||||||
Long-term intercompany receivables | — | — | 51,650 | 363,178 | (414,828 | ) | — | ||||||||||||||||
Deferred income tax assets | — | — | 321 | 415 | — | 736 | |||||||||||||||||
Assets held for sale | — | — | 3,653 | — | — | 3,653 | |||||||||||||||||
$ | 3,083 | $ | 240,720 | $ | 2,654,300 | $ | 1,918,286 | $ | (2,988,189 | ) | $ | 1,828,200 | |||||||||||
Liabilities and Shareholders’ Equity (Deficit) | |||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||
Payables and accruals | $ | 21,776 | $ | 5,164 | $ | 95,295 | $ | 57,723 | $ | (5,210 | ) | $ | 174,748 | ||||||||||
Deferred revenue | — | — | 4,906 | 8,088 | — | 12,994 | |||||||||||||||||
Income taxes payable | — | 350 | 298 | 3,668 | (350 | ) | 3,966 | ||||||||||||||||
Current intercompany payables | 4,669 | 19,594 | 189,905 | 780,448 | (994,616 | ) | — | ||||||||||||||||
Other liabilities | 18 | 5,102 | 9,962 | 51,859 | (58,400 | ) | 8,541 | ||||||||||||||||
Current portion of debt obligations | — | 361,591 | 362,472 | — | (361,591 | ) | 362,472 | ||||||||||||||||
26,463 | 391,801 | 662,838 | 901,786 | (1,420,167 | ) | 562,721 | |||||||||||||||||
Long-term intercompany payables | — | — | — | 51,571 | (51,571 | ) | — | ||||||||||||||||
Accumulated losses of unconsolidated investees in excess of investment | 1,052,066 | — | — | — | (1,052,066 | ) | — | ||||||||||||||||
Deferred revenue | — | — | 1,988 | 21,808 | — | 23,796 | |||||||||||||||||
Other liabilities | — | — | 3,370 | 65,721 | — | 69,091 | |||||||||||||||||
Liabilities subject to compromise | 1,256 | 1,168,558 | 2,142,893 | 139,743 | (1,168,518 | ) | 2,283,932 | ||||||||||||||||
Liabilities subject to compromise - intercompany | 60,918 | 328,873 | 885,459 | 146,471 | (1,421,721 | ) | — | ||||||||||||||||
Deferred income tax liabilities | — | — | 565 | 7,962 | — | 8,527 | |||||||||||||||||
Total liabilities | 1,140,703 | 1,889,232 | 3,697,113 | 1,335,062 | (5,114,043 | ) | 2,948,067 | ||||||||||||||||
Redeemable non-controlling interests | — | 17,753 | 17,753 | (42,537 | ) | 24,784 | 17,753 | ||||||||||||||||
Redeemable convertible preferred shares | 643,967 | — | — | — | — | 643,967 | |||||||||||||||||
Shareholders’ equity (deficit) | (1,781,587 | ) | (1,666,265 | ) | (1,060,566 | ) | 625,761 | 2,101,070 | (1,781,587 | ) | |||||||||||||
$ | 3,083 | $ | 240,720 | $ | 2,654,300 | $ | 1,918,286 | $ | (2,988,189 | ) | $ | 1,828,200 |
Statements of Operations and Comprehensive Loss for the three months ended July 31, 2015 (Expressed in thousands of United States dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Revenue | $ | — | $ | — | $ | 241,625 | $ | 252,174 | $ | (117,862 | ) | $ | 375,937 | ||||||||||
Operating expenses: | |||||||||||||||||||||||
Direct costs | — | — | (190,260 | ) | (241,772 | ) | 117,862 | (314,170 | ) | ||||||||||||||
Earnings (loss) from equity accounted investees | (47,653 | ) | (44,207 | ) | (39,402 | ) | 1,216 | 131,479 | 1,433 | ||||||||||||||
General and administration costs | (4,072 | ) | (480 | ) | (15,258 | ) | 2,974 | 480 | (16,356 | ) | |||||||||||||
Depreciation | — | — | (33,512 | ) | (6,769 | ) | — | (40,281 | ) | ||||||||||||||
Restructuring expense | (1,721 | ) | — | (14,921 | ) | (2,737 | ) | — | (19,379 | ) | |||||||||||||
Loss on disposal of assets | — | — | (582 | ) | (405 | ) | — | (987 | ) | ||||||||||||||
(53,446 | ) | (44,687 | ) | (293,935 | ) | (247,493 | ) | 249,821 | (389,740 | ) | |||||||||||||
Operating income (loss) | (53,446 | ) | (44,687 | ) | (52,310 | ) | 4,681 | 131,959 | (13,803 | ) | |||||||||||||
Financing income (charges) | 84 | (1,526 | ) | 9,420 | (36,435 | ) | 1,526 | (26,931 | ) | ||||||||||||||
Loss before income tax | (53,362 | ) | (46,213 | ) | (42,890 | ) | (31,754 | ) | 133,485 | (40,734 | ) | ||||||||||||
Income tax expense | — | (596 | ) | (4,763 | ) | (1,145 | ) | 596 | (5,908 | ) | |||||||||||||
Net loss | $ | (53,362 | ) | $ | (46,809 | ) | $ | (47,653 | ) | $ | (32,899 | ) | $ | 134,081 | $ | (46,642 | ) | ||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||
Controlling interest | $ | (53,362 | ) | $ | (46,809 | ) | $ | (47,653 | ) | $ | (39,619 | ) | $ | 134,081 | $ | (53,362 | ) | ||||||
Non-controlling interests | — | — | — | 6,720 | — | 6,720 | |||||||||||||||||
Net loss | $ | (53,362 | ) | $ | (46,809 | ) | $ | (47,653 | ) | $ | (32,899 | ) | $ | 134,081 | $ | (46,642 | ) | ||||||
Comprehensive loss | $ | (86,439 | ) | $ | (80,249 | ) | $ | (80,730 | ) | $ | (20,432 | ) | $ | 198,153 | $ | (69,697 | ) |
Cash flows for the three months ended July 31, 2015 (Expressed in thousands of US dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Cash provided by (used in) operating activities | $ | (95 | ) | $ | (9,792 | ) | $ | 15,384 | $ | 9,950 | $ | 9,792 | $ | 25,239 | |||||||||
Financing activities: | |||||||||||||||||||||||
Sold interest in accounts receivable, net of collections | — | — | — | 10,602 | — | 10,602 | |||||||||||||||||
Debt proceeds | — | 150,000 | 150,000 | — | (150,000 | ) | 150,000 | ||||||||||||||||
Debt and capital lease repayments | — | (95,000 | ) | (95,868 | ) | — | 95,000 | (95,868 | ) | ||||||||||||||
Repurchases of senior unsecured notes | — | (18,818 | ) | (18,818 | ) | — | 18,818 | (18,818 | ) | ||||||||||||||
Increase in deferred financing costs | — | — | — | (2,179 | ) | — | (2,179 | ) | |||||||||||||||
Cash provided by financing activities | — | 36,182 | 35,314 | 8,423 | (36,182 | ) | 43,737 | ||||||||||||||||
Investing activities: | |||||||||||||||||||||||
Property and equipment additions | — | — | (38,706 | ) | (41,389 | ) | — | (80,095 | ) | ||||||||||||||
Proceeds from disposal of property and equipment | — | — | 27,723 | — | — | 27,723 | |||||||||||||||||
Helicopter deposits net of lease inception refunds | — | — | (24,360 | ) | — | — | (24,360 | ) | |||||||||||||||
Restricted cash | — | — | 2,248 | (18,886 | ) | — | (16,638 | ) | |||||||||||||||
Cash used in investing activities | — | — | (33,095 | ) | (60,275 | ) | — | (93,370 | ) | ||||||||||||||
Cash provided by (used in) operations | (95 | ) | 26,390 | 17,603 | (41,902 | ) | (26,390 | ) | (24,394 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (8,627 | ) | 834 | — | (7,793 | ) | |||||||||||||||
Change in cash and cash equivalents during the period | (95 | ) | 26,390 | 8,976 | (41,068 | ) | (26,390 | ) | (32,187 | ) | |||||||||||||
Cash and cash equivalents, beginning of the period | 112 | 82,458 | 96,428 | 37,757 | (82,458 | ) | 134,297 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 17 | $ | 108,848 | $ | 105,404 | $ | (3,311 | ) | $ | (108,848 | ) | $ | 102,110 |
Statements of Operations and Comprehensive Loss for the three months ended July 31, 2016 (Expressed in thousands of United States dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Revenue | $ | — | $ | — | $ | 173,130 | $ | 186,533 | $ | (89,227 | ) | $ | 270,436 | ||||||||||
Operating expenses: | |||||||||||||||||||||||
Direct costs | — | — | (134,877 | ) | (201,211 | ) | 89,227 | (246,861 | ) | ||||||||||||||
Earnings (loss) from equity accounted investees | (804,141 | ) | (776,129 | ) | (29,772 | ) | 352 | 1,609,951 | 261 | ||||||||||||||
General and administration costs | (5,783 | ) | (332 | ) | (11,534 | ) | 1,889 | 332 | (15,428 | ) | |||||||||||||
Depreciation | — | (26,916 | ) | (8,782 | ) | — | (35,698 | ) | |||||||||||||||
Restructuring expense | (2,141 | ) | (13 | ) | 1,539 | (1,803 | ) | 13 | (2,405 | ) | |||||||||||||
Loss on disposal of assets | — | — | (1,063 | ) | (62 | ) | — | (1,125 | ) | ||||||||||||||
(812,065 | ) | (776,474 | ) | (202,623 | ) | (209,617 | ) | 1,699,523 | (301,256 | ) | |||||||||||||
Operating loss | (812,065 | ) | (776,474 | ) | (29,493 | ) | (23,084 | ) | 1,610,296 | (30,820 | ) | ||||||||||||
Financing charges | (2 | ) | (8,435 | ) | (17,146 | ) | (2,375 | ) | 8,435 | (19,523 | ) | ||||||||||||
Reorganization items, net | (23,283 | ) | (23,203 | ) | (757,416 | ) | (4,691 | ) | 23,203 | (785,390 | ) | ||||||||||||
Loss before income tax | (835,350 | ) | (808,112 | ) | (804,055 | ) | (30,150 | ) | 1,641,934 | (835,733 | ) | ||||||||||||
Income tax recovery (expense) | 1 | (562 | ) | (86 | ) | 26 | 562 | (59 | ) | ||||||||||||||
Net loss | $ | (835,349 | ) | $ | (808,674 | ) | $ | (804,141 | ) | $ | (30,124 | ) | $ | 1,642,496 | $ | (835,792 | ) | ||||||
Net earnings (loss) attributable to: | |||||||||||||||||||||||
Controlling interest | $ | (835,349 | ) | $ | (808,674 | ) | $ | (804,141 | ) | $ | (29,681 | ) | $ | 1,642,496 | $ | (835,349 | ) | ||||||
Non-controlling interests | — | — | — | (443 | ) | — | (443 | ) | |||||||||||||||
Net loss | $ | (835,349 | ) | $ | (808,674 | ) | $ | (804,141 | ) | $ | (30,124 | ) | $ | 1,642,496 | $ | (835,792 | ) | ||||||
Comprehensive loss | $ | (822,052 | ) | $ | (795,717 | ) | $ | (790,844 | ) | $ | (84,573 | ) | $ | 1,671,809 | $ | (821,377 | ) |
Cash flows for the three months ended July 31, 2016 (Expressed in thousands of US dollars) | Parent | Issuer | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Cash provided by (used in) operating activities | $ | 494 | $ | (2,604 | ) | $ | 31,249 | $ | 16,001 | $ | 2,604 | $ | 47,744 | ||||||||||
Financing activities: | |||||||||||||||||||||||
Sold interest in accounts receivable, net of collections | — | — | — | (21,620 | ) | — | (21,620 | ) | |||||||||||||||
Capital lease repayments | — | — | (549 | ) | — | — | (549 | ) | |||||||||||||||
Cash provided by financing activities | — | — | (549 | ) | (21,620 | ) | — | (22,169 | ) | ||||||||||||||
Investing activities: | |||||||||||||||||||||||
Property and equipment additions | — | — | (10,292 | ) | (990 | ) | — | (11,282 | ) | ||||||||||||||
Proceeds from disposal of property and equipment | — | — | 1,819 | 25 | — | 1,844 | |||||||||||||||||
Restricted cash | — | — | (141 | ) | 9,197 | — | 9,056 | ||||||||||||||||
Cash provided by (used in) investing activities | — | — | (8,614 | ) | 8,232 | — | (382 | ) | |||||||||||||||
Cash provided by (used in) operations | 494 | (2,604 | ) | 22,086 | 2,613 | 2,604 | 25,193 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (993 | ) | (2,310 | ) | — | (3,303 | ) | ||||||||||||||
Change in cash and cash equivalents during the period | 494 | (2,604 | ) | 21,093 | 303 | 2,604 | 21,890 | ||||||||||||||||
Cash and cash equivalents, beginning of the period | 87 | 3,138 | 27,581 | 238,462 | (3,138 | ) | 266,130 | ||||||||||||||||
Cash and cash equivalents, end of the period | $ | 581 | $ | 534 | $ | 48,674 | $ | 238,765 | $ | (534 | ) | $ | 288,020 |
• | we filed for protection under Chapter 11 of the United States Bankruptcy Code and are subject to risks and uncertainties; |
• | operating under Chapter 11 may restrict our ability to pursue our business strategies; |
• | our employees face considerable uncertainty due to the Chapter 11 proceedings; |
• | we may suffer from a protracted restructuring; |
• | our ability to emerge from Chapter 11 and operate profitably thereafter will depend on increasing our revenue, lowering our costs, and obtaining sufficient financing or other capital to operate successfully; |
• | we have substantial liquidity needs and, due to our current Chapter 11 proceedings, may not be able to obtain any equity or debt financings in the capital market for the foreseeable future; |
• | we may be subject to claims that will not be discharged in the Chapter 11 proceedings; |
• | our restructuring efforts through the Chapter 11 proceedings may be expensive, take resources and distract management; |
• | we are in the process of rejecting and abandoning a significant portion of our helicopter fleet through the Chapter 11 proceedings, which may result in an inability to quickly respond to new opportunities and a significant loss of market share and profit margins; |
• | our interim financial statements have been prepared assuming that we will continue as a going concern, our independent registered public accounting firm has raised substantial doubts about our ability to continue as a going concern, and we have not included any adjustments that might result from the outcome of this uncertainty; |
• | we have a history of net losses; |
• | our substantial level of indebtedness, operating lease commitments, purchase and other commitments could materially adversely affect our ability to fulfill our obligations under our debt agreements, our ability to react to changes in our business and our ability to incur additional debt to fund future needs; |
• | all flights with the aircraft type H225 and AS332 L2 have been temporarily grounded which may cause a material and adverse impact to our financial viability; |
• | our operations and fleet are reliant on Airbus helicopters; |
• | operating helicopters involves a degree of inherent risk and we are exposed to the risk of losses from safety incidents; |
• | if we are unable to mitigate potential losses through a robust safety management and insurance coverage program, our financial condition would be jeopardized in the event of a safety or other hazardous incident; |
• | failure to maintain standards of acceptable safety performance could have an adverse impact on our ability to attract and retain customers and could adversely impact our reputation, operations and financial performance; |
• | our operations are largely dependent upon the level of activity in the offshore oil and gas industry; |
• | the oil and gas industries on which we are largely dependent are suffering through a severe downturn, resulting in significant negative impact on demand for our services, and no assurance can be given that the downturn will not continue to be prolonged; |
• | many of the markets in which we operate are highly competitive, and if we are unable to effectively compete, it may result in a loss of market share or a decrease in revenue or profit margins; |
• | we rely on a limited number of large offshore helicopter support contracts with a limited number of customers. If any of these are terminated early or not renewed, our revenues could decline; |
• | negative publicity may adversely impact us; |
• | our fixed operating expenses and long-term contracts with customers could adversely affect our business under certain circumstances; |
• | we depend on a small number of helicopter manufacturers and any safety issues can severely limit our ability to continue operating helicopters already in our fleet; |
• | we depend on a limited number of third-party suppliers for helicopter parts and subcontract services; |
• | restructuring of our operations and organizational structure may lead to significant costs; |
• | our business requires substantial capital expenditures, lease and working capital financing, which we are currently blocked from accessing through the capital markets and banks. Any further deterioration of current industry or business conditions, the capital and banking markets or a prolonged period in Chapter 11 proceedings generally could adversely impact our business, financial condition and results of operations; |
• | we rely on the secondary used helicopter market to dispose of our older helicopters and parts due to our ongoing fleet modernization efforts; |
• | our operations are subject to extensive regulations which could increase our costs and adversely affect us; |
• | our MRO business, Heli-One, could suffer if licenses issued by OEMs and/or governmental authorities are not renewed or we cannot obtain additional licenses; |
• | we derive significant revenue from non-wholly owned variable interest entities. If we are unable to maintain good relations with the other owners of such non-wholly owned entities, our business, financial condition or results of operations could be adversely affected; |
• | our operations may suffer due to political, regulatory, commercial and economic uncertainty; |
• | our business in countries with a history of corruption and transactions with foreign governments increases the compliance risks associated with our international activities; |
• | we are subject to extensive federal, state, local and foreign environmental, health and safety laws, rules, regulations and ordinances that could have an adverse impact on our business; |
• | we are subject to many different forms of taxation in various jurisdictions throughout the world, which could lead to disagreements with tax authorities regarding the application of tax laws; |
• | the offshore helicopter services industry is cyclical; |
• | we are exposed to foreign currency risks; |
• | our failure to hedge exposure to fluctuations in foreign currency exchange rates could unfavorably affect our financial performance; |
• | we are exposed to credit risks; |
• | our customers may seek to shift risk to us; |
• | if oil and gas companies undertake cost reduction methods, there may be an adverse effect on our business; |
• | reductions in spending on helicopter services by government agencies could lead to modifications of SAR and EMS contract terms or delays in receiving payments, which could adversely impact our business, financial condition and results of operations; |
• | failure to develop or implement new technologies and disruption to our systems could affect our results of operations; |
• | we rely on information technology, and if we are unable to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, our operations could be disrupted and our business could be negatively affected; |
• | the loss of key personnel could affect our growth and future success; |
• | labor problems could adversely affect us; |
• | if the assets in our defined benefit pension plans are not sufficient to meet the plans’ obligations, we could be required to make substantial cash contributions and our liquidity could be adversely affected; |
• | adverse results of legal proceedings could materially and adversely affect our business, financial condition or results of operations; |
• | in the event we are or become treated as a passive foreign investment company for U.S. federal income tax purposes, our U.S. shareholders could be subject to adverse U.S. federal income tax consequences; |
• | we are controlled by a shareholder group, which might have interests that conflict with ours or the interests of our other shareholders; |
• | due to our Chapter 11 bankruptcy proceedings, our ordinary shares may have no value and any investment in our shares is highly speculative; |
• | the market for our ordinary shares historically has experienced significant price and volume fluctuations; |
• | we have not paid dividends on our ordinary shares historically and may not pay any cash dividends on our ordinary shares or preferred shares for the foreseeable future; |
• | pursuant to the terms of the preferred shares, which rank senior to our ordinary shares, we are required to pay regular cash dividends or issue shares in respect of amounts accrued as dividends on the preferred shares, and we may be required under certain circumstances to repurchase the preferred shares; we are currently unable to pay such obligations while we are in Chapter 11 proceedings and are likely not to pay any cash dividends for the foreseeable future; |
• | our preferred shares have rights, preferences and privileges that are not held by, and are preferential to the rights of, holders of our ordinary shares. Such preferential rights could adversely affect our liquidity and financial condition, and may result in the interests of the holders of our preferred shares differing from those of the holders of our ordinary shares; |
• | we are a holding company and, accordingly, are dependent upon distributions from our subsidiaries to generate the funds necessary to meet our financial obligations and pay dividends; |
• | the requirements of being a public company may strain our resources and distract our management; |
• | provisions of our articles of association and Cayman Islands corporate law may discourage or prevent an acquisition of us which could adversely affect the value of our ordinary shares; |
• | our organizational documents contain a variety of anti-takeover provisions that could delay, deter or prevent a change in control; |
• | shareholder rights under Cayman Islands law may differ materially from shareholder rights in the United States, which could adversely affect the ability of us and our shareholders to protect our and their interests; |
• | as a shareholder, you might have difficulty obtaining or enforcing a judgment against us because we are incorporated under the laws of the Cayman Islands; and |
• | our Major Investors CD&R and First Reserve, may compete with us, and our articles of association contain a provision that expressly permits our non-employee directors to compete with us. |
• | Our Helicopter Services segment consists of flying operations, primarily serving our offshore oil and gas customers and providing SAR and EMS to government agencies and to our oil and gas customers. The majority of our customers are major national and independent oil and gas companies. The majority of our revenue from oil and gas customers is |
• | Our operations are global. Approximately half of our Helicopter Services segment’s revenue is derived from the North Sea, from our main bases Aberdeen, Scotland and Stavanger, Norway. |
• | Our Heli-One segment includes a global network of helicopter maintenance, repair and overhaul facilities, and maintenance and engineering professionals, providing services for our fleet and for our external customer base primarily in Europe, Asia and North America. Although intersegment revenues are eliminated from the presentation of our consolidated financial information, operationally, Heli-One’s largest customer is our Helicopter Services segment. |
• | Heli-One also provides single-source PBH support for aircraft models from multiple manufacturers, where the customer pays a ratable monthly charge, typically based on the number of hours flown, for all scheduled and un-scheduled maintenance. |
• | General level of offshore production and drilling activity. Demand for our services depends primarily upon ongoing offshore hydrocarbon production and the capital spending of oil and gas companies and the level of offshore drilling activity. Higher activity levels can lead to greater utilization of our helicopters by our customers. |
• | Impact of fleet mix. Generally, contracts for our helicopter services requiring heavier and newer helicopters can provide an opportunity to generate greater profit than lighter and older helicopters. Consequently, we believe our revenue and profit opportunities can improve as we upgrade our fleet and enter into new contracts. |
• | Timing of new contracts and our commencement of service under new contracts. Our results of operations in a particular period can be impacted by the timing of the execution of new contracts and our ability to provide services under new contracts. |
Helicopter Type | Total | Cruise Speed (kts) | Approximate Range (nmi) | Passenger Capacity | Maximum Weight (lbs) | ||||
Helicopter Type | |||||||||
Heavy: | |||||||||
Sikorsky S92A | 45 | 145 | 400 | 19 | 26,500 | ||||
Airbus Helicopters H225 | 6 | 145 | 400 | 19 | 24,250 | ||||
Airbus Helicopters (AS332 L, L1, and L2) | 18 | 130-140 | 250-350 | 17-19 | 18,000-20,500 | ||||
Total Heavy | 69 | ||||||||
Medium: | |||||||||
AgustaWestland AW139 | 35 | 145 | 280 | 12-15 | 15,000 | ||||
Sikorsky S76C++ | 18 | 145 | 220 | 12 | 11,700 | ||||
Sikorsky S76C+ | 18 | 145 | 175 | 12 | 11,700 | ||||
Sikorsky S76A++ | 7 | 135 | 130 | 12 | 10,800 | ||||
Bell 412 | 7 | 125 | 135 | 13 | 11,900 | ||||
Airbus Helicopters AS365 Series/H155 | 4 | 120-145 | 80-120 | 11-13 | 9,500-10,800 | ||||
Airbus Helicopters H135/H145 | 3 | N/A(i) | N/A(i) | N/A(i) | N/A(i) | ||||
Total Medium | 92 | ||||||||
Total Helicopters | 161 |
(i) | EMS only. |
Three months ended July 31, | |||||||
2015 | 2016 | ||||||
Operating revenue | $ | 347,028 | $ | 248,407 | |||
Reimbursable revenue | 28,909 | 22,029 | |||||
Total revenue | 375,937 | 270,436 | |||||
Operating expenses | |||||||
Direct costs (i) | (249,496 | ) | (193,625 | ) | |||
Earnings from equity accounted investees | 1,433 | 261 | |||||
General and administration costs | (16,356 | ) | (15,428 | ) | |||
Adjusted EBITDAR (ii) | 111,518 | 61,644 | |||||
Helicopter lease and associated costs (i) | (64,674 | ) | (53,236 | ) | |||
Depreciation | (40,281 | ) | (35,698 | ) | |||
Restructuring expense | (19,379 | ) | (2,405 | ) | |||
Loss on disposal of assets | (987 | ) | (1,125 | ) | |||
Operating loss | (13,803 | ) | (30,820 | ) | |||
Interest on long-term debt | (26,946 | ) | (8,591 | ) | |||
Foreign exchange loss | (10,079 | ) | (18,432 | ) | |||
Other financing income | 10,094 | 7,500 | |||||
Reorganization items, net | — | (785,390 | ) | ||||
Loss before income tax | (40,734 | ) | (835,733 | ) | |||
Income tax expense | (5,908 | ) | (59 | ) | |||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) | |
Net earnings (loss) attributable to: | |||||||
Controlling interest | $ | (53,362 | ) | $ | (835,349 | ) | |
Non-controlling interests | 6,720 | (443 | ) | ||||
Net loss | $ | (46,642 | ) | $ | (835,792 | ) |
(i) | Direct costs in the information above excludes helicopter lease and associated costs. These costs are combined in the consolidated statements of operations, which are included in the interim financial statements included elsewhere in this Quarterly Report on Form 10-Q. |
(ii) | Adjusted EBITDAR is a non-GAAP measure. Additional information about our Adjusted EBITDAR, including a reconciliation of this measure to our consolidated financial statements is also provided in note 18 of our interim financial statements for the three months ended July 31, 2015 and 2016, included elsewhere in this Quarterly Report on Form 10-Q. |
Favorable (Unfavorable) | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
Helicopter Services (i) | $ | 340,500 | $ | 241,932 | $ | (98,568 | ) | (28.9 | )% | |||||
Heli-One | 35,437 | 28,504 | (6,933 | ) | (19.6 | )% | ||||||||
Total revenue | 375,937 | 270,436 | (105,501 | ) | (28.1 | )% | ||||||||
Direct costs (ii) | (249,496 | ) | (193,625 | ) | 55,871 | 22.4 | % | |||||||
Helicopter lease and associated costs | (64,674 | ) | (53,236 | ) | 11,438 | 17.7 | % | |||||||
Total direct costs | $ | (314,170 | ) | $ | (246,861 | ) | $ | 67,309 | 21.4 | % |
(i) | Includes revenue from the customer reimbursement of fuel costs of $15.7 million for the three months ended July 31, 2015 and $10.2 million for the three months ended July 31, 2016. |
(ii) | Includes $15.9 million in fuel costs for the three months ended July 31, 2015 and $10.0 million for the three months ended July 31, 2016. |
• | Foreign exchange. There was an $8.3 million decrease related to the impact of foreign currency translation on our reported results, primarily in the North Sea due to the significant decline in the British Pound Sterling since June 2016. In addition, the U.S. dollar strengthened against most currency groups in the current year quarter compared to the prior year quarter, which resulted in a decrease in reported U.S. dollar revenue amounts, where revenue was transacted primarily in the local currencies of our operations; |
• | Contract completions and activity. Revenues decreased by $43.2 million due to contract completions, primarily in the North Sea, Australia and Mozambique, for both production and exploration customers. In addition, there was a $24.0 million decrease in revenue due to contract completions and reduced customer activity in Brazil and a net $6.6 million decrease in revenue resulting from other activity changes, primarily in the North Sea and in Australia; |
• | Contract modification. Revenues decreased by $17.0 million resulting from contract modifications with continuing oil and gas customers due to reductions in price and number of helicopters on contract, as our customers continue to implement cost reduction initiatives; and |
• | Reimbursable revenue. There was a $5.7 million decrease in reimbursable revenue due to lower activity. Reimbursable revenue includes customer reimbursement of fuel costs; partially offset by |
• | New contracts. There was a $6.2 million increase in revenue from new contract wins for oil and gas customers in the North Sea and in Australia. |
Favorable (Unfavorable) | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
Crew costs | $ | (88,152 | ) | $ | (70,456 | ) | $ | 17,696 | 20.1 | % | ||||
Base operations and other costs | (62,669 | ) | (46,404 | ) | 16,265 | 26.0 | % | |||||||
Maintenance costs | (66,032 | ) | (49,791 | ) | 16,241 | 24.6 | % | |||||||
Support costs | (32,643 | ) | (26,974 | ) | 5,669 | 17.4 | % | |||||||
Total direct costs | $ | (249,496 | ) | $ | (193,625 | ) | $ | 55,871 | 22.4 | % |
• | Crew costs, which include salaries, benefits, training and recruitment costs, decreased by $17.7 million to $70.5 million compared to the prior year quarter. The decrease in crew costs was partially due to the impact of the strengthening U.S. dollar, which decreased crew costs by $2.7 million compared to the prior year quarter. The remaining $15.0 million decrease was as a result of lower crew requirements due to reduced activity, contract completions and cost saving initiatives, primarily in Brazil, Australia, Canada and several African countries. Crew costs were incurred only by our Helicopter Services segment. |
• | Base operations and other costs, which include our base operations, reimbursable costs, insurance costs and other external expenses, decreased by $16.3 million to $46.4 million compared to the prior year quarter, which included an approximate $1.4 million decrease related to the impact of the strengthening U.S. dollar. There was a decrease of $5.4 million in rechargeable costs to customers, due to lower flying hours, compared to the prior year quarter. Contract completions and reductions in activity, primarily in Africa, Brazil, Australia and the North Sea, in addition to the wind down of our operations in Nigeria during the current year quarter, reduced costs by $9.5 million compared to the prior year quarter. Base operations and other costs were incurred only by our Helicopter Services segment. |
• | Maintenance costs decreased by $16.2 million to $49.8 million compared to the prior year quarter. Maintenance costs decreased by $1.2 million in the current year quarter compared to the prior year quarter due to the impact of foreign exchange translation, as a result of the strengthening U.S. dollar. Maintenance costs include those related to repairs for owned and leased major components, spares and rotable and repairable parts, which are recognized when the costs are incurred. Our costs therefore can vary with the timing of the maintenance activity. A portion of our maintenance costs are externally subcontracted on a PBH basis and vary with flight hours, which were primarily incurred for our H225 aircraft. Maintenance costs decreased by $15.0 million compared to the prior year quarter due to a combination of reduced activity, the suspension of H225 helicopters, which reduced PBH costs incurred in the current year quarter, but were also impacted by the timing of maintenance events. |
• | Support costs decreased by $5.7 million to $27.0 million compared to the prior year quarter, due to a combination of foreign exchange translation, reduced headcount and lower levels of base support, driven by our cost saving initiatives and lower activity levels. The majority of support costs were incurred by our Helicopter Services segment, with $3.4 million related to our Heli-One segment. |
Three months ended July 31, | Favorable (Unfavorable) | |||||||||||||
(In thousands of U.S. dollars) | 2015 | 2016 | $ Change | % Change | ||||||||||
Amortization of deferred financing costs | $ | (1,861 | ) | $ | (2,132 | ) | $ | (271 | ) | (14.6 | )% | |||
Net gain on debt extinguishment | 14,687 | — | (14,687 | ) | (100.0 | )% | ||||||||
Net loss on fair value of foreign currency forward contracts | (15,526 | ) | — | 15,526 | 100.0 | % | ||||||||
Net gain on fair value of foreign currency embedded derivatives | 13,709 | 8,786 | (4,923 | ) | (35.9 | )% | ||||||||
Amortization of guaranteed residual values | (148 | ) | (307 | ) | (159 | ) | (107.4 | )% | ||||||
Interest expense | (4,382 | ) | (92 | ) | 4,290 | 97.9 | % | |||||||
Interest income | 5,790 | 1,901 | (3,889 | ) | (67.2 | )% | ||||||||
Other | (2,175 | ) | (656 | ) | 1,519 | 69.8 | % | |||||||
Total other financing income | $ | 10,094 | $ | 7,500 | $ | (2,594 | ) | (25.7 | )% |
Three months ended July 31, | Favorable (Unfavorable) | ||||||||||||
(In thousands of U.S. dollars) | 2015 | 2016 | $ Change | % Change | |||||||||
Adjustments to debt obligations | $ | — | $ | (27,051 | ) | $ | (27,051 | ) | n/a | ||||
Adjustments to allowed claims for rejected leases | — | (716,682 | ) | (716,682 | ) | n/a | |||||||
Adjustments to other allowed claims | — | (16,986 | ) | (16,986 | ) | n/a | |||||||
Professional fees | — | (24,671 | ) | (24,671 | ) | n/a | |||||||
Total reorganization items, net | $ | — | $ | (785,390 | ) | $ | (785,390 | ) | n/a |
Favorable (Unfavorable) | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
Operating revenue | $ | 311,591 | $ | 219,903 | $ | (91,688 | ) | (29.4 | )% | |||||
Reimbursable revenue | 28,909 | 22,029 | (6,880 | ) | (23.8 | )% | ||||||||
Total revenue | $ | 340,500 | $ | 241,932 | $ | (98,568 | ) | (28.9 | )% | |||||
Direct costs | (220,690 | ) | (166,611 | ) | 54,079 | 24.5 | % | |||||||
Earnings from equity accounted investees | 1,433 | 261 | (1,172 | ) | (81.8 | )% | ||||||||
Adjusted EBITDAR | $ | 121,243 | $ | 75,582 | $ | (45,661 | ) | (37.7 | )% | |||||
Adjusted EBITDAR margin | 38.9 | % | 34.4 | % | (4.5 | )% | (11.6 | )% | ||||||
Helicopter lease and associated costs | $ | (64,674 | ) | $ | (53,236 | ) | $ | 11,438 | 17.7 | % |
• | The decrease in Adjusted EBITDAR and Adjusted EBITDAR margin was substantially due to contract completions and contract modifications reflecting changes in customer requirements and lower activity, primarily in the North Sea, Brazil, Australia and several African countries, partially offset by cost savings through reduction in headcount and other initiatives. This decreased Adjusted EBITDAR by $63.0 million and Adjusted EBITDAR margin by 11.2% compared to the prior year quarter; |
• | New contract wins, primarily in the North Sea and Australia, increased Adjusted EBITDAR by $6.2 million and Adjusted EBITDAR margin by 0.6% compared to the prior year quarter; and |
• | Lower maintenance costs, primarily due to a combination of reduced activity, timing of maintenance events, fleet optimization initiatives, improved rotable and fleet maintenance planning, and lower externally subcontracted PBH costs resulting from suspension of the H225 aircraft, increased Adjusted EBITDAR by $14.1 million and Adjusted EBITDAR margin by 6.4% compared to the prior year quarter. |
Favorable (Unfavorable) | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
Third-party revenue | $ | 35,437 | $ | 28,504 | $ | (6,933 | ) | (19.6 | )% | |||||
Internal revenue | 27,366 | 17,436 | (9,930 | ) | (36.3 | )% | ||||||||
Total revenue | $ | 62,803 | $ | 45,940 | $ | (16,863 | ) | (26.9 | )% | |||||
Direct costs | (55,439 | ) | (44,383 | ) | 11,056 | 19.9 | % | |||||||
Adjusted EBITDAR | $ | 7,364 | $ | 1,557 | $ | (5,807 | ) | (78.9 | )% | |||||
Adjusted EBITDAR Margin | 11.7 | % | 3.4 | % | (8.3 | )% | (70.9 | )% |
• | Lower levels of external third-party PBH and MRO revenue and internal revenue with our Helicopter Services segment due to contract completions, reduction in flying activity and suspension of H225 aircraft, partially offset by cost control efforts and timing of maintenance costs; and |
• | Other cost changes, which include lower support costs, due to cost saving initiatives compared to the prior year quarter. |
Favorable (Unfavorable) | ||||||||||||||
2015 | 2016 | $ Change | % Change | |||||||||||
Cash provided by operating activities | $ | 25,239 | $ | 47,744 | $ | 22,505 | 89.2 | % | ||||||
Cash provided by (used in) financing activities | 43,737 | (22,169 | ) | (65,906 | ) | (150.7 | )% | |||||||
Cash used in investing activities | (93,370 | ) | (382 | ) | 92,988 | 99.6 | % | |||||||
Effect of exchange rate changes on cash and cash equivalents | (7,793 | ) | (3,303 | ) | 4,490 | 57.6 | % | |||||||
Change in cash and cash equivalents during the period | $ | (32,187 | ) | $ | 21,890 | $ | 54,077 | 168.0 | % |
CHC GROUP LTD. | |||||
(Registrant) | |||||
By: | /s/ Lee Eckert | ||||
Name: | Lee Eckert | ||||
Title: | Senior Vice President and Chief Financial Officer (Principal Financial Officer, Duly Authorized Officer) |
Incorporated by Reference | ||||||
Exhibit No. | Exhibit Description | Form | SEC File No. | Exhibit | Filing Date | Filed Herewith |
31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | ||||
31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | ||||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | X | ||||
32.2 | Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | X | ||||
101.INS | XBRL Instance Document | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Presentation Linkbase Document | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Document and Entity Information |
3 Months Ended |
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Jul. 31, 2016
shares
| |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jul. 31, 2016 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | CHC Group Ltd. |
Entity Central Index Key | 0001586300 |
Current Fiscal Year End Date | --04-30 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 2,721,837 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | ||
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Jul. 31, 2016 |
Jul. 31, 2015 |
Apr. 30, 2016 |
|
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 3.4 | $ 2.1 | |
Redeemable convertible preferred stock, par value (in US$ per share) | $ 0.0001 | $ 0.0001 | |
Redeemable convertible preferred stock, authorized (shares) | 6,000,000 | 6,000,000 | |
Redeemable convertible preferred stock, issued (shares) | 671,189 | 671,189 | |
Cumulative preferred dividends in arrears | $ 7.9 | $ 7.1 | |
Common stock, par value (in US$ per share) | $ 0.003 | $ 0.003 | |
Common stock, authorized (shares) | 544,000,000 | 544,000,000 | |
Capital stock, issued (shares) | 2,721,837 | 2,721,592 |
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
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Jul. 31, 2016 |
Jul. 31, 2015 |
|
Redeemable Convertible Preferred Stock | ||
Effect of cumulative preferred dividends in arrears | $ 0.8 | $ 0.2 |
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Jul. 31, 2016 |
Jul. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (835,792) | $ (46,642) |
Other comprehensive earnings (loss): | ||
Net foreign currency translation adjustments | 8,976 | (24,659) |
Net change in defined benefit pension plan, net of income tax | 5,439 | 1,604 |
Comprehensive loss | (821,377) | (69,697) |
Comprehensive income (loss) attributable to: | ||
Controlling interest | (822,052) | (86,439) |
Non-controlling interests | 675 | 16,742 |
Comprehensive loss | $ (821,377) | $ (69,697) |
Voluntary Filing Under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") |
3 Months Ended |
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Jul. 31, 2016 | |
Reorganizations [Abstract] | |
Voluntary Filing Under Chapter 11 of the United States Bankruptcy Code (Chaper 11) | Voluntary filing under Chapter 11 of the United States Bankruptcy Code ("Chapter 11"): We have incurred net losses since our acquisition on September 16, 2008 of the entity formerly known as CHC Helicopter Corporation. We have a substantial level of indebtedness and operating lease commitments and have experienced a significant decline in consolidated revenues due to the downturn in the oil and gas industry since mid-2014. As a result of this, on May 5, 2016 (the “Petition Date”), CHC Group Ltd. and a number of its subsidiaries (cumulatively referred to as the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions” or the “Petitions”) in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”), seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Debtors have filed a motion with the Bankruptcy Court seeking to jointly administer the Bankruptcy Cases under the caption In re CHC Group Ltd., et al., which we refer to together as the “Bankruptcy Cases”. The Petitions filed by the Debtors seeking relief under the Bankruptcy Code constituted an event of default that accelerated our obligations under the indenture, dated October 4, 2010, that governs the 9.250% Senior Secured Notes Due 2020 (the “senior secured notes”); the indenture, dated May 13, 2013, that governs the 9.375% Senior Notes Due 2021 (the “senior unsecured notes”); our senior secured revolving credit facility, dated as of January 23, 2014 (the “revolving credit facility”) and our asset-based revolving credit facility, dated June 12, 2015 (the “ABL Facility”). In addition, this also caused an event of default under the terms of all of our helicopter lease agreements and certain other obligations. The Debtors have filed motions for the rejection or abandonment of 97 helicopters in our fleet which we no longer need in the operation of our business. This includes 84 leased helicopters and 13 helicopters financed under our ABL Facility. As of September 14, 2016, the Bankruptcy Court had approved 66 helicopter lease rejections and the motion to abandon the 13 aircraft under our ABL Facility remains pending before the Bankruptcy Court. Discussions with our lenders and lessors remain pending, the status of those discussions remain fluid, and the outcome of such discussions cannot be assured. Since the Petition Date, the Debtors have operated their business as “debtors-in-possession.” A trustee has been appointed and the Debtors continue to operate their businesses and manage their properties as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Any efforts by creditors to enforce such payment obligations as existed before the Petition Date are automatically stayed as a result of the filing of the Petitions, and the holders’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has approved certain motions for the payment of certain pre-petition obligations, including those related to certain taxes, employee wages, severance and helicopter part repair orders. These conditions result in material uncertainty that gives rise to substantial doubt about our ability to continue as a going concern. We believe that the Company will require significant debt, lease and other restructuring to continue as a going concern. We must successfully develop a reorganization plan and our ability to continue as a going concern is contingent upon the Bankruptcy Court and our creditors’ approval of this reorganization plan. Our ability to continue as a going concern will also be dependent on our ability to implement this reorganization plan, to maintain existing customer, vendor and other relationships, and to maintain sufficient liquidity throughout the Chapter 11 proceedings, amongst other factors. The unaudited interim consolidated financial statements (“interim financial statements”) have been prepared under the assumption that the Company will continue as a going concern and do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern or as a consequence of the Bankruptcy Cases. While operating as debtors-in-possession under the jurisdiction of the Bankruptcy Court, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court, or as otherwise permitted in the ordinary course of business, for amounts other than those reflected in the accompanying interim financial statements. |
Significant Accounting Policies |
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Significant Accounting Policies | Significant accounting policies:
The interim financial statements include the accounts of CHC Group Ltd. and its subsidiaries (the “Company”, “we”, “us” or “our”) after elimination of all significant intercompany accounts and transactions. The interim financial statements are presented in United States dollars and have been prepared in accordance with the United States Generally Accepted Accounting Principles (“US GAAP”) for interim financial information. Accordingly, the interim financial statements do not include all of the information and disclosures for complete financial statements. In the opinion of management, these interim financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented are not necessarily indicative of results of operations for the entire year. The financial information as of April 30, 2016 is derived from our annual audited consolidated financial statements and notes for the fiscal year ended April 30, 2016. These interim financial statements should be read in conjunction with our consolidated financial statements and related notes for the fiscal year ended April 30, 2016, which are included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016 which was filed with the Securities and Exchange Commission (“SEC”) on July 15, 2016.
As a result of the filing of the Bankruptcy Petitions, we have applied the FASB Accounting Standards Codification (“ASC”) 852 Reorganizations in preparing our interim financial statements. ASC 852 requires that financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, realized gains and losses and provisions for losses that are realized or incurred in the bankruptcy proceedings have been recorded in a reorganization line item in our consolidated statements of operations. In addition, the pre-petition obligations that may be impacted by the bankruptcy reorganization process have been classified on the balance sheet as liabilities subject to compromise. These liabilities are reported as the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts.
The currencies which most influence our foreign currency translations and the relevant exchange rates were:
In December 2015, our Board of Directors and shareholders approved a reverse share split, by way of consolidation, whereby all of the Company’s ordinary shares of capital stock (issued and unissued) were adjusted to reflect the reverse share split ratio of 30:1 (that is, each 30 shares of stock were consolidated into one share). The reverse share split was effective on December 11, 2015. The principal effects of the reverse share split were as follows:
Consolidation: On May 1, 2016, we adopted the amendment to the accounting guidance on the consolidation standard. The amendment includes updates relating to the criteria to determine whether a service provider or decision maker is a variable interest entity (“VIE”), whether a decision maker is the primary beneficiary of a VIE, or whether a related party has the characteristics of a primary beneficiary of a VIE. We determined that there was no material impact on our financial results from the adoption of this standard. Debt issuance costs: On May 1, 2016, we adopted the accounting guidance on debt issuance costs. The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset and must be applied retrospectively. As a result, we presented the $26.2 million of deferred financing costs previously classified in other assets at April 30, 2016 as an offset to debt obligations. This had no impact on our net loss or operating cash flows as previously reported. Share-based compensation: On May 1, 2016, we adopted amended guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amendment requires that a performance target that affects vesting and that could be achieved after requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that such performance condition would be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. There was no material impact on our financial results from the adoption of this standard.
Revenue recognition: In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition to achieve the objective of recognizing revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period; companies are permitted to early adopt the standard for fiscal periods beginning after December 15, 2016. We will adopt the standard on May 1, 2018. Companies are allowed to use either full retrospective or modified retrospective adoption. We are currently evaluating which transition approach to use and the impact of the adoption of this standard on our consolidated financial statements. Going concern: In August 2014, the FASB issued a new standard that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern and to provide disclosures when certain criteria are met. The standard is effective for fiscal periods ending after December 15, 2016, and interim periods thereafter, with early application permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Inventories: In July 2015, the FASB issued an amendment that requires management to reduce inventory to the lower of cost and net realizable value rather than the lower of cost or market value. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods therein and early application is permitted. We will adopt the standard on May 1, 2017. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Financial instruments: In January 2016, the FASB issued amendments to the standard for the recognition and measurement of financial assets and financial liabilities which introduces new reporting requirements and simplifies some of the existing reporting requirements. The standard is effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal years and early application is permitted. We will adopt the standard on May 1, 2018. Companies should apply the amendment using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, and using a prospective approach for amendments to equity securities with fair values that are not readily determinable. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Leases: In February 2016, the FASB issued amendments to the standard for the recognition and measurement of leases. The standard is effective for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal years and early application is permitted. We will adopt the standard on May 1, 2019. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Share-based compensation: In March 2016, the FASB issued amendments to simplify the standard for employee share-based payment accounting. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods within those annual periods and early adoption is permitted for any entity in any interim or annual period providing all amendments are adopted in the same period. We will adopt the standard on May 1, 2017. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Derivatives and hedging: In March 2016, the FASB issued amendments to the standard for derivatives and hedging clarifying the requirements for assessing whether contingent put and call options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted, including adoption in an interim period. We will adopt the standard on May 1, 2017. Companies should adopt the standard on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Impairment of financial instruments: In June 2016, the FASB issued authoritative guidance that adds an impairment model called the Current Expected Credit Loss (“CECL”) model for financial instruments within the scope of the guidance, which includes loans, trade receivables, debt securities classified as Held to Maturity and net investments in leases recognized by a lessor. Under the new guidance, on initial recognition and at each reporting period, an entity would be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. The standard does not make changes to the existing impairment models for non-financial assets such as fixed assets, intangibles and goodwill. We will adopt the standard on May 1, 2020. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Variable Interest Entities |
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Variable Interest Entities | Variable interest entities:
Certain areas of operations are subject to local governmental regulations that may limit foreign ownership of aviation companies. Accordingly, operations in certain jurisdictions may require the establishment of local ownership entities that are considered to be VIEs. The nature of our involvement with consolidated local ownership entities is as follows: Note 3 to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016 contains a description of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary. During the three months ended July 31, 2016, there have been no significant changes in either the nature of our involvement with, or the accounting policies associated with the analysis of VIEs as described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016, with the exception of Atlantic Aviation Limited and Atlantic Aviation FZE (collectively “Atlantic Aviation”). On June 16, 2016, the Company, Atlantic Aviation and the Nigerian Company entered into a Termination and Exit Agreement (the “Termination Agreement”) which replaces the framework agreement but does not immediately terminate the other related agreements in place between the Company, Atlantic Aviation Limited and the Nigerian Company. Under the terms of the Termination Agreement, the Company has agreed to work with Atlantic Aviation and the Nigerian Company to ensure an orderly wind-down of operations in Nigeria and the ultimate dissolution of Atlantic Aviation (and all associated agreements between the Company and Atlantic Aviation). During the three months ended July 31, 2016 we deconsolidated Atlantic Aviation, which, net of the redeemable non-controlling interest, had no material impact to our results. The following table shows the redeemable non-controlling interests relating to the local ownership VIEs that are included in the interim financial statements.
We have assessed that under the terms of the put and call arrangements with the holder of the non-controlling interest of EEA Helicopter Operations B.V.’s (“EHOB”) that it is probable that the non-controlling interest will become redeemable and accordingly, it is recorded at its redemption amount. We have elected to recognize any changes in the redemption amount immediately as they occur and adjust the carrying amount of the redeemable non-controlling interest to equal the redemption amount at the end of the reporting period. Reductions in the carrying amount of the redeemable non-controlling interest are only recorded if we have previously recorded increases in the carrying amount of the redeemable non-controlling interest. The change in redemption amount is recognized in additional paid-in capital and as a deduction or addition to the numerator of the net loss per ordinary share calculation. The redemption amount is based on a formula of $14.5 million plus an amount representing compounded interest, commencing October 31, 2014, which increases from 10% for the first year to 20% for the fifth year and thereafter. Under the amended Shareholders’ Agreement, the put and call options will be exercisable on the earlier of: (a) an exit event, being the entering into an agreement with another investor to acquire the Class A shareholder’s interest in EHOB anytime after October 30, 2016, (b) one year after First Reserve Management, L.P. (“First Reserve”) and Clayton, Dubilier & Rice (“CD&R”) own less than 5% of our issued shares, and (c) October 30, 2020. Furthermore, the Class A shareholder also holds a call option over our Class B shares which is exercisable only in the event of bankruptcy. The right to immediate exercise of the put and call option by the Class A shareholder, due to the Debtors filing Petitions with the Bankruptcy Court on May 5, 2016, has been waived until October 10, 2016, subject to certain terms and conditions. Financial information of local ownership VIEs All of the local ownership VIEs and their subsidiaries have the same purpose and are exposed to similar operational risks and are monitored on a similar basis by management. As such, the financial information reflected on the consolidated balance sheets and statements of operations for all local ownership VIEs has been presented in the aggregate below, including intercompany amounts with other consolidated entities:
As described in note 3(a)(ii) of the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016, we entered into trade receivables securitization transactions to raise financing, through the sale of pools of receivables, or beneficial interests therein, to a VIE, Finacity Receivables – CHC 2009, LLC (“Finacity”), which we have determined we are required to consolidate as we are the primary beneficiary. Our trade receivables securitization arrangement to raise additional financing with Finacity ended in April 2016, as the Petitions filed with the Bankruptcy Court on May 5, 2016 constituted a termination event under the terms of our receivable purchase agreements. The following table shows the assets and the associated liabilities related to our secured debt arrangements that are included in the interim financial statements:
As at July 31, 2015 and 2016, we leased two helicopters from Trinity Helicopters Limited (“Trinity”), an entity considered to be a VIE, which we have determined we are required to consolidate as we are the primary beneficiary.
Thai Aviation Services (“TAS”) As described in note 3(b)(i) of the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016, we have a 29.9% interest in the ordinary shares of TAS, which we have determined to be a VIE that we are not required to consolidate as we are not the primary beneficiary. The following table summarizes the amounts recorded for TAS in the consolidated balance sheets:
As of July 31, 2015 and 2016, we leased eight helicopters and six helicopters, respectively, to TAS and provided crew, insurance, maintenance and base services. The total revenue earned from providing these services was $11.6 million and $9.9 million for the three months ended July 31, 2015 and 2016, respectively. Under the terms of the shareholder agreement, we have exercised our right to require the majority shareholder in TAS to purchase our ordinary share interest, with the purchase price yet to be determined.
We have determined that the activity that most significantly impacts the economic performance of the lessor VIEs is the remarketing of the helicopters at the end of the lease term. As we do not have the power to make remarketing decisions, we have determined that we are not the primary beneficiary of the lessor VIEs. As at July 31, 2015 and 2016, we leased from various entities considered to be VIEs 103 helicopters and 71 helicopters, respectively. All 103 and 71 leases were considered to be operating leases as at July 31, 2015 and 2016, respectively, some of which are subject to restructuring and/or rejection motions filed by the Debtors as detailed in notes 4 and 9 respectively. |
Restructuring |
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Restructuring | Restructuring: We are undergoing a comprehensive review of our operations, organizational structure and fleet with the view to reducing operating costs. In connection with the ongoing review, we have incurred restructuring expenses consisting of employee related severance costs and other associated costs. The majority of the payments relating to the accrual as at July 31, 2016 will be made in fiscal 2017. We have also incurred restructuring expenses related to contractual lease, maintenance and other costs on specific leased helicopters we have permanently ceased use of in operations and do not form part of our prospective fleet strategy. On May 5, 2016, the Debtors filed Petitions seeking relief under the Bankruptcy Code, as described in note 1. As at July 31, 2016, the Bankruptcy Court had approved motions to reject 9 helicopter operating leases which were recorded within restructuring liabilities. The Debtors have filed rejection motions for the majority of the remaining helicopter leases classified as a restructuring liability. These amounts have been reclassified to liabilities subject to compromise. The following table summarizes the activity of the restructuring liability for the three months ended July 31, 2016:
As of July 31, 2016, we have expensed $90.1 million of employee related severance and other costs and $87.3 million of lease associated costs cumulatively to date under this restructuring review. |
Inventories |
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Inventories | Inventories:
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Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other assets:
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Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other liabilities:
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Debt Obligations |
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Debt Obligations | Debt obligations:
On May 5, 2016, the Debtors filed Petitions seeking relief under the Bankruptcy Code, which constituted an event of default that accelerated our obligations under the senior secured notes and senior unsecured notes, the revolving credit facility and the ABL Facility as described in note 1. In accordance with the guidance of ASC 852 Reorganizations, as of the Petition Date, the senior secured notes, the senior unsecured notes, the ABL Facility and all of our capital lease obligations were reclassified as liabilities subject to compromise. We have ceased recognition of interest expense on the senior secured notes, the senior unsecured notes and the ABL Facility from the Petition Date. The aggregate contractual interest due under the senior secured notes, the senior unsecured notes and the ABL Facility was $27.5 million for the three months ended July 31, 2016. All deferred financing costs on these obligations were charged to reorganization items, net, during the three months ended July 31, 2016. See note 9 for further information on reorganization items, net and note 10 for further information regarding liabilities subject to compromise.
During the three months ended July 31, 2016, certain letters of credit provided to third parties prior to the Petition Date were drawn on our revolving credit facility.
The carrying values of the other financial instruments, which are measured at other than fair value, approximate fair value due to the short term to maturity, collateral and security ranking, except for non-revolving debt obligations. The carrying value, excluding deferred financing costs, and fair value of non-revolving debt obligations were as follows:
The fair value of the senior secured and senior unsecured notes is determined based on market information provided by third parties which is considered to be a Level 2 measurement in the fair value hierarchy. |
Reorganization Items, net |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization Items, net | Reorganization items, net: Transactions and events directly associated with the reorganization are required, under the guidance of ASC 852 Reorganizations, to be separately disclosed and distinguished from those of the ongoing operations of the business. We have used the classification “Reorganization items, net” on the Consolidated Statements of Operations to reflect expenses, gains and losses that are the direct result of the reorganization of our business.
As of the Petition Date, certain of the Debtors pre-petition liabilities, including the senior secured notes, the senior unsecured notes and the ABL Facility were reclassified as liabilities subject to compromise. As a result of the event of default of our obligations under the senior secured notes and senior unsecured notes and the ABL Facility and our assessment of these obligations as liabilities subject to compromise following the guidance of ASC 852 Reorganizations, we have expensed $27.1 million related to the deferred financing costs and unamortized net discount on these obligations during the three months ended July 31, 2016.
The Debtors have filed motions for the rejection or abandonment of 97 helicopters in our fleet which we no longer need in the operation of our business. This includes 84 leased helicopters and 13 helicopters financed under our ABL Facility. As of July 31, 2016, the Bankruptcy Court had approved 65 helicopter lease rejections. In accordance with the guidance of ASC 852 Reorganizations, we have recorded the expected allowed claim from the lessors on approval of the lease rejections of $638.7 million. The expected allowed claim has been determined in accordance with the terms of the applicable lease agreement, and generally includes the present value of all future lease payments for the remaining contract term, or a default termination amount, plus damages, including those related to the return condition of the helicopter. Our estimate of the expected amount of the allowed claim is a significant estimate. As the estimation process is inherently uncertain, future actions and decisions by the Bankruptcy Court may differ significantly from our own estimate, potentially having material future effects on our financial statements. Furthermore, these liabilities are reported as the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. There may be significant variation from the settled amount from expected amount of the allowed claim. The lessors’ rights of enforcement for those claims will be subject to the applicable provisions of the Bankruptcy Code. We have also charged to reorganization items all lease related assets and liabilities on the approved lease rejections. These balances include capitalized modifications, deferred lease financing costs, prepaid helicopter rentals, security deposits, funded and unfunded residual value guarantees, deferred gains on sale-leasebacks of helicopters, capital lease assets and obligations and restructuring liabilities.
The commencement of the Bankruptcy Cases constituted an event of default with our Canadian Supplemental Retirement Plan Agreements with certain plan participants, who could demand payment under one or more renewable letters of credit related to the participant’s benefit liabilities. As a result, we recognized a settlement loss of approximately $13.0 million during the three months ended July 31, 2016, comprised of the net reduction in projected benefit obligation and accumulated other comprehensive loss. All of our foreign currency forward contract arrangements were terminated during the three months ended July 31, 2016. We have recorded the adjustment from the fair value to the expected amount of the allowed claim for these derivative liabilities of $4.0 million.
During the three months ended July 31, 2016, we incurred $24.7 million related to professional advisors who are assisting us with the bankruptcy process. |
Liabilities Subject to Compromise |
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Liabilities Subject to Compromise Disclosures [Abstract] | |||||||||||||||||||||||||||||
Liabilities Subject to Compromise | Liabilities subject to compromise: As a result of the Petitions filed by the Debtors seeking relief under the Bankruptcy Code on May 5, 2016, the Debtors’ pre-petition liabilities, including our obligations under the senior secured notes and senior unsecured notes and the ABL Facility, were classified as subject to compromise based on our assessment of these obligations following the guidance of ASC 852 Reorganizations. Pre-petition liabilities subject to compromise are required to be reported at the amount expected to be allowed as a claim by the Bankruptcy Court, regardless of whether they may be settled for lesser amounts and remain subject to future adjustments based on negotiated settlements with claimants, actions of the Bankruptcy Court, rejection of executory contracts, proofs of claims or other events. The following table reflects pre-petition liabilities subject to compromise as at July 31, 2016:
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Condensed Combined and Consolidated Debtor-in-Possession Financial Information |
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Condensed Combined and Consolidated Debtor-in-Possession Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Combined and Consolidated Debtor-in-Possession Financial Information | Condensed combined and consolidated debtor-in-possession financial information: The financial statements below represent the condensed combined financial statements of the Debtors. The non-filing entities are accounted for as non-consolidated subsidiaries in these financial statements and, as such, their net loss is included using the equity method of accounting. Intercompany transactions among the Debtors have been eliminated in the financial statements presented below. Intercompany transactions among the Debtors and the non-filing entities have not been eliminated. Debtors’ Combined and Consolidated Balance Sheet (Expressed in thousands of United States dollars) (Unaudited)
Debtors’ Combined and Consolidated Statement of Operations (Expressed in thousands of United States dollars) (Unaudited)
Debtors’ Combined and Consolidated Statement of Cash Flows (Expressed in thousands of United States dollars) (Unaudited)
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Other Financing Income |
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Other Financing Income (Charges) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financing Income | Other financing income:
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Employee Pension Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Pension Plans | Employee pension plans: The net defined benefit pension plan expense (income) is as follows:
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Income Taxes |
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Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes: During the three months ended July 31, 2015 and 2016, we recorded income tax expense of $5.9 million and $0.1 million resulting in effective tax rates of (14.5)% and nil, respectively. During the three months ended July 31, 2016, no new uncertain tax positions identified. However, we adjusted certain uncertain tax positions due to changes in tax interpretations for those jurisdictions. The income tax expense reflects primarily the current corporate income taxes in taxable jurisdictions and withholding taxes. For most jurisdictions we determined that the deferred tax assets are not more likely than not to be realized and therefore we continue to recognize a valuation allowance in respect of these deferred tax assets. As of July 31, 2016, there was $25.7 million in unrecognized tax benefits, of which $19.9 million would have an impact on the effective tax rate, if recognized. The total amount of interest and penalties accrued on the consolidated balance sheets at April 30, 2016 and July 31, 2016 was $10.2 million and $8.6 million, respectively. |
Guarantees |
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Jul. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees: We have provided limited guarantees to third parties under some of our operating leases relating to a portion of the residual helicopter values at the termination of the leases, which have terms expiring between fiscal 2017 and 2024. Our exposure under the asset value guarantees including guarantees in the form of funded and unfunded residual value guarantees is approximately $171.8 million as at April 30, 2016 and $10.7 million at July 31, 2016, exclusive of $165.8 million of funded and unfunded residual value guarantees for helicopter lease rejections which were approved by the Bankruptcy Court as at July 31, 2016. |
Commitments |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments | Commitments: We have helicopter operating leases for 154 helicopters and 92 helicopters at April 30, 2016 and July 31, 2016, respectively. As at July 31, 2016, these leases had expiry dates ranging from fiscal 2017 to 2025. For those helicopters where we have an unexercised option to purchase them for agreed amounts, the purchase options do not constitute bargain purchase options and we do not have a commitment to exercise the options. As at July 31, 2016, we have commitments with respect to operating leases for helicopters, buildings, land and equipment. The Debtors have filed motions for the rejection of leases for 84 helicopters in our fleet which are no longer required in the operations of our business. As of July 31, 2016, the Bankruptcy Court had approved 65 helicopter lease rejections. Approved helicopter lease rejections have been reflected in reorganization items at the expected amount of the allowed claim (note 9). The minimum lease rentals required under operating leases are payable in the following amounts over the following years ended July 31, exclusive of approved helicopter lease rejections but inclusive of lease rejections still subject to the approval of the Bankruptcy Court, which may substantially alter our minimum lease rentals. The May 5, 2016 filing of the Petitions by the Debtors in the Bankruptcy Court caused an event of default under the terms of all of our helicopter lease agreements. Any efforts by creditors to enforce such payment obligations as existed before the Petition Date are automatically stayed as a result of the filing of the Petitions, and the holders’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. We continue to make the required payments for the post-petition period for helicopter leases for which we have not filed motions for rejection with the Bankruptcy Court in accordance with the below payment profile.
As at July 31, 2016, we have a total commitment of $236.8 million for the purchase of new helicopters, for which we have contractual commitments to pay in fiscal 2017 ($170.6 million) and 2018 ($66.2 million). We also have additional flexible orders of $252.2 million which allow us to monitor the market recovery before confirming dates and the type of aircraft for deliveries. Our additional flexible orders can also be cancelled with no further payment, subject to periodic forfeitures of deposits paid to date, up to a maximum of $29.4 million in forfeitures. Each of these contracts are subject to ongoing negotiations and/or rejection as part of our reorganization process. |
Contingencies |
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Jul. 31, 2016 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Contingencies | Contingencies:
One or more of our subsidiaries are, from time to time, named as defendants in lawsuits arising in the ordinary course of our business. Such disputes may involve, for example, breach of contract, employment, wrongful termination and tort claims. We maintain adequate insurance coverage to respond to most claims. We cannot predict the outcome of any such lawsuits with certainty, but we do not expect the outcome of pending or threatened legal matters to have a material adverse impact on our financial condition. On May 5, 2016, the Debtors filed the Petitions commencing the Bankruptcy Cases. As a result of the commencement of the Bankruptcy Cases, attempts to prosecute, collect, secure or enforce remedies with respect to pre-petition claims against the Debtors are subject to the automatic stay provisions of Section 362(a) of the Bankruptcy Code, including litigation relating to the Debtors. Notwithstanding the general application of the automatic stay described above, certain foreign governmental authorities, foreign courts and foreign parties may argue that the automatic stay does not apply in their jurisdiction and seek to continue any ongoing litigation. The two securities class action lawsuits that were previously filed against the Company were consolidated into a single action, Rudman et al. v. CHC Group et al., which is pending in federal district court for the Southern District of New York. A consolidated amended complaint was filed on November 6, 2015. The amended complaint alleges that the Company and others failed to disclose in our IPO materials that one of our major customers, Petrobras, had suspended payments on certain contracts due to the global stand-down of Airbus H225 aircraft. The amended complaint seeks class treatment and unspecified damages. CHC has filed a motion to dismiss and is awaiting a hearing date on that motion. The Company maintains adequate insurance to respond to these complaints. Moreover, the Company disputes the allegations in the complaints and will vigorously defend against them. In addition, from time to time, we are involved in tax and other disputes with various government agencies. The following summarizes certain of these pending disputes: On May 2, 2008, Brazilian customs authorities seized one of our helicopters (customs value of $10.0 million) as a result of allegations that we violated Brazilian customs law by failing to ensure our customs agent and the customs agent’s third-party shipping company followed approved routing of the helicopter during transport. We secured release of the helicopter and are disputing through court action any claim for penalties associated with the seizure and the alleged violation. We preserved our rights by filing a civil action against our customs agent for any losses that may result. The State Court of São Paulo has ruled that our agent will be responsible for the value of the helicopter if the government’s seizure is upheld. That decision is under appeal. At July 31, 2016, it is not possible to determine the ultimate outcome of this matter, or the significance, if any, to our business, financial condition and results of operations. Our Brazilian subsidiary is disputing claims from the Brazilian tax authorities that it was not entitled to certain credits in 2004 and 2007. The tax authorities are seeking up to $2.3 million in additional taxes plus interest and penalties. We believe that based on our interpretation of tax legislation and well established aviation industry practice we are in compliance with all applicable tax legislation and plan to defend this claim vigorously. At July 31, 2016, it is not possible to determine the outcome of this matter or the significance, if any, to our business, financial condition and results of operations. Our Brazilian subsidiary is also disputing assessments from the municipal governments in Macaé and Cabo Frio related to cross-border flights and invoicing. The municipalities are seeking up to $4.8 million in taxes and penalties. We do not believe the Company is liable for these amounts and will continue to dispute these assessments at the administrative level before the Municipal Tax Secretary in each jurisdiction. At July 31, 2016, it is not possible to determine the outcome of this matter or the significance, if any, to our business, financial condition and results of operations. On July 30, 2014, the UK Treasury Solicitors filed a claim against us and various other parties involved in the SAR-H procurement process, which was terminated by the Ministry of Transport in February 2011. The claim is for recovery of the Ministry of Transport’s wasted procurement costs of £17.8 million ($23.6 million) in respect of the SAR-H bid. We dispute the bases for the claim and intend to vigorously defend against it. At July 31, 2016, it is not possible to determine the outcome of this matter, or the significance, if any, to our business, financial condition and results of operations.
We have entered into fee arrangements with financial advisors to assist us with our Bankruptcy filing. The arrangements include contingent fee payments up to $17.2 million, payable upon completion of Chapter 11 reorganization. At July 31, 2016, no contingent fee amounts were accrued. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment information: We operate under the following segments:
We have provided information on segment revenues and Adjusted EBITDAR because these are the financial measures used by the Company’s chief operating decision maker (“CODM”) in making operating decisions and assessing performance. Information on segment assets has not been disclosed as this information is not reviewed by the CODM. The Helicopter Services segment includes flying operations around the world serving offshore oil and gas, EMS/SAR and other industries and the management of the fleet. Heli-One, the maintenance, repair and overhaul segment, includes facilities in Norway, Canada, Poland, and the United States that provide helicopter maintenance, repair and overhaul services for our fleet and for an external customer base primarily in Europe, Asia and North America. Corporate and other includes corporate office costs in various jurisdictions and is not considered a reportable segment.
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Supplemental Condensed Consolidated Financial Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidated Financial Information | Supplemental condensed consolidated financial information: The Company and certain of its direct and indirect wholly owned subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guaranteed on a joint and several basis certain outstanding indebtedness of CHC Helicopter S.A. (the “Issuer”), one of our subsidiaries. The following consolidating schedules present financial information as of July 31, 2016 and for the three months ended July 31, 2015 and 2016, based on the guarantor structure that was in place at July 31, 2016. The Parent columns in the condensed consolidated financial information are for CHC Group Ltd. on a standalone basis (the “Parent”) and the equity method of accounting is used to reflect ownership interest in its subsidiary.
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Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Bankruptcy Accounting and Disclosures | Basis of presentation: The interim financial statements include the accounts of CHC Group Ltd. and its subsidiaries (the “Company”, “we”, “us” or “our”) after elimination of all significant intercompany accounts and transactions. The interim financial statements are presented in United States dollars and have been prepared in accordance with the United States Generally Accepted Accounting Principles (“US GAAP”) for interim financial information. Accordingly, the interim financial statements do not include all of the information and disclosures for complete financial statements. In the opinion of management, these interim financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented are not necessarily indicative of results of operations for the entire year. The financial information as of April 30, 2016 is derived from our annual audited consolidated financial statements and notes for the fiscal year ended April 30, 2016. These interim financial statements should be read in conjunction with our consolidated financial statements and related notes for the fiscal year ended April 30, 2016, which are included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016 which was filed with the Securities and Exchange Commission (“SEC”) on July 15, 2016.
As a result of the filing of the Bankruptcy Petitions, we have applied the FASB Accounting Standards Codification (“ASC”) 852 Reorganizations in preparing our interim financial statements. ASC 852 requires that financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, realized gains and losses and provisions for losses that are realized or incurred in the bankruptcy proceedings have been recorded in a reorganization line item in our consolidated statements of operations. In addition, the pre-petition obligations that may be impacted by the bankruptcy reorganization process have been classified on the balance sheet as liabilities subject to compromise. These liabilities are reported as the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. |
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Foreign Currency | Foreign currency: The currencies which most influence our foreign currency translations and the relevant exchange rates were:
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Comparative Figures | Comparative figures: In December 2015, our Board of Directors and shareholders approved a reverse share split, by way of consolidation, whereby all of the Company’s ordinary shares of capital stock (issued and unissued) were adjusted to reflect the reverse share split ratio of 30:1 (that is, each 30 shares of stock were consolidated into one share). The reverse share split was effective on December 11, 2015. The principal effects of the reverse share split were as follows:
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Recent Accounting Pronouncements | Recent accounting pronouncements adopted: Consolidation: On May 1, 2016, we adopted the amendment to the accounting guidance on the consolidation standard. The amendment includes updates relating to the criteria to determine whether a service provider or decision maker is a variable interest entity (“VIE”), whether a decision maker is the primary beneficiary of a VIE, or whether a related party has the characteristics of a primary beneficiary of a VIE. We determined that there was no material impact on our financial results from the adoption of this standard. Debt issuance costs: On May 1, 2016, we adopted the accounting guidance on debt issuance costs. The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset and must be applied retrospectively. As a result, we presented the $26.2 million of deferred financing costs previously classified in other assets at April 30, 2016 as an offset to debt obligations. This had no impact on our net loss or operating cash flows as previously reported. Share-based compensation: On May 1, 2016, we adopted amended guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amendment requires that a performance target that affects vesting and that could be achieved after requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that such performance condition would be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. There was no material impact on our financial results from the adoption of this standard.
Revenue recognition: In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition to achieve the objective of recognizing revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period; companies are permitted to early adopt the standard for fiscal periods beginning after December 15, 2016. We will adopt the standard on May 1, 2018. Companies are allowed to use either full retrospective or modified retrospective adoption. We are currently evaluating which transition approach to use and the impact of the adoption of this standard on our consolidated financial statements. Going concern: In August 2014, the FASB issued a new standard that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern and to provide disclosures when certain criteria are met. The standard is effective for fiscal periods ending after December 15, 2016, and interim periods thereafter, with early application permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Inventories: In July 2015, the FASB issued an amendment that requires management to reduce inventory to the lower of cost and net realizable value rather than the lower of cost or market value. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods therein and early application is permitted. We will adopt the standard on May 1, 2017. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Financial instruments: In January 2016, the FASB issued amendments to the standard for the recognition and measurement of financial assets and financial liabilities which introduces new reporting requirements and simplifies some of the existing reporting requirements. The standard is effective for fiscal periods beginning after December 15, 2017, including interim periods within those fiscal years and early application is permitted. We will adopt the standard on May 1, 2018. Companies should apply the amendment using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, and using a prospective approach for amendments to equity securities with fair values that are not readily determinable. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Leases: In February 2016, the FASB issued amendments to the standard for the recognition and measurement of leases. The standard is effective for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal years and early application is permitted. We will adopt the standard on May 1, 2019. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Share-based compensation: In March 2016, the FASB issued amendments to simplify the standard for employee share-based payment accounting. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods within those annual periods and early adoption is permitted for any entity in any interim or annual period providing all amendments are adopted in the same period. We will adopt the standard on May 1, 2017. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Derivatives and hedging: In March 2016, the FASB issued amendments to the standard for derivatives and hedging clarifying the requirements for assessing whether contingent put and call options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. The standard is effective for fiscal periods beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted, including adoption in an interim period. We will adopt the standard on May 1, 2017. Companies should adopt the standard on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year for which the amendments are effective. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Impairment of financial instruments: In June 2016, the FASB issued authoritative guidance that adds an impairment model called the Current Expected Credit Loss (“CECL”) model for financial instruments within the scope of the guidance, which includes loans, trade receivables, debt securities classified as Held to Maturity and net investments in leases recognized by a lessor. Under the new guidance, on initial recognition and at each reporting period, an entity would be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. The standard does not make changes to the existing impairment models for non-financial assets such as fixed assets, intangibles and goodwill. We will adopt the standard on May 1, 2020. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multiple Foreign Currency Exchange Rates | The currencies which most influence our foreign currency translations and the relevant exchange rates were:
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Variable Interest Entities (Tables) |
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Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | The following table shows the redeemable non-controlling interests relating to the local ownership VIEs that are included in the interim financial statements.
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Financial Information of Local Ownership VIEs | As such, the financial information reflected on the consolidated balance sheets and statements of operations for all local ownership VIEs has been presented in the aggregate below, including intercompany amounts with other consolidated entities:
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Assets and Associated Liabilities Related to Company's Secured Debt Arrangements | The following table shows the assets and the associated liabilities related to our secured debt arrangements that are included in the interim financial statements:
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Variable Interest Entity, Not Primary Beneficiary | Thai Aviation Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amounts Recorded in Balance Sheet | The following table summarizes the amounts recorded for TAS in the consolidated balance sheets:
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Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Liability | The following table summarizes the activity of the restructuring liability for the three months ended July 31, 2016:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory |
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Other Assets (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Assets |
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Other Liabilities (Tables) |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Liabilities |
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Debt Obligations (Tables) |
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Schedule of Debt Obligations |
On May 5, 2016, the Debtors filed Petitions seeking relief under the Bankruptcy Code, which constituted an event of default that accelerated our obligations under the senior secured notes and senior unsecured notes, the revolving credit facility and the ABL Facility as described in note 1. In accordance with the guidance of ASC 852 Reorganizations, as of the Petition Date, the senior secured notes, the senior unsecured notes, the ABL Facility and all of our capital lease obligations were reclassified as liabilities subject to compromise. We have ceased recognition of interest expense on the senior secured notes, the senior unsecured notes and the ABL Facility from the Petition Date. The aggregate contractual interest due under the senior secured notes, the senior unsecured notes and the ABL Facility was $27.5 million for the three months ended July 31, 2016. All deferred financing costs on these obligations were charged to reorganization items, net, during the three months ended July 31, 2016. See note 9 for further information on reorganization items, net and note 10 for further information regarding liabilities subject to compromise.
During the three months ended July 31, 2016, certain letters of credit provided to third parties prior to the Petition Date were drawn on our revolving credit facility. |
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Fair Value of Non-revolving Debt Obligations | Carrying value of other financial instruments, measured at other than fair value: The carrying values of the other financial instruments, which are measured at other than fair value, approximate fair value due to the short term to maturity, collateral and security ranking, except for non-revolving debt obligations. The carrying value, excluding deferred financing costs, and fair value of non-revolving debt obligations were as follows:
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Reorganization Items, net (Tables) |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization Items, net | We have used the classification “Reorganization items, net” on the Consolidated Statements of Operations to reflect expenses, gains and losses that are the direct result of the reorganization of our business.
As of the Petition Date, certain of the Debtors pre-petition liabilities, including the senior secured notes, the senior unsecured notes and the ABL Facility were reclassified as liabilities subject to compromise. As a result of the event of default of our obligations under the senior secured notes and senior unsecured notes and the ABL Facility and our assessment of these obligations as liabilities subject to compromise following the guidance of ASC 852 Reorganizations, we have expensed $27.1 million related to the deferred financing costs and unamortized net discount on these obligations during the three months ended July 31, 2016.
The Debtors have filed motions for the rejection or abandonment of 97 helicopters in our fleet which we no longer need in the operation of our business. This includes 84 leased helicopters and 13 helicopters financed under our ABL Facility. As of July 31, 2016, the Bankruptcy Court had approved 65 helicopter lease rejections. In accordance with the guidance of ASC 852 Reorganizations, we have recorded the expected allowed claim from the lessors on approval of the lease rejections of $638.7 million. The expected allowed claim has been determined in accordance with the terms of the applicable lease agreement, and generally includes the present value of all future lease payments for the remaining contract term, or a default termination amount, plus damages, including those related to the return condition of the helicopter. Our estimate of the expected amount of the allowed claim is a significant estimate. As the estimation process is inherently uncertain, future actions and decisions by the Bankruptcy Court may differ significantly from our own estimate, potentially having material future effects on our financial statements. Furthermore, these liabilities are reported as the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. There may be significant variation from the settled amount from expected amount of the allowed claim. The lessors’ rights of enforcement for those claims will be subject to the applicable provisions of the Bankruptcy Code. We have also charged to reorganization items all lease related assets and liabilities on the approved lease rejections. These balances include capitalized modifications, deferred lease financing costs, prepaid helicopter rentals, security deposits, funded and unfunded residual value guarantees, deferred gains on sale-leasebacks of helicopters, capital lease assets and obligations and restructuring liabilities.
The commencement of the Bankruptcy Cases constituted an event of default with our Canadian Supplemental Retirement Plan Agreements with certain plan participants, who could demand payment under one or more renewable letters of credit related to the participant’s benefit liabilities. As a result, we recognized a settlement loss of approximately $13.0 million during the three months ended July 31, 2016, comprised of the net reduction in projected benefit obligation and accumulated other comprehensive loss. All of our foreign currency forward contract arrangements were terminated during the three months ended July 31, 2016. We have recorded the adjustment from the fair value to the expected amount of the allowed claim for these derivative liabilities of $4.0 million.
During the three months ended July 31, 2016, we incurred $24.7 million related to professional advisors who are assisting us with the bankruptcy process. |
Liabilities Subject to Compromise (Tables) |
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Liabilities Subject to Compromise Disclosures [Abstract] | |||||||||||||||||||||||||||||
Schedule of Pre-petition Liabilities Subject to Compromise | The following table reflects pre-petition liabilities subject to compromise as at July 31, 2016:
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Condensed Combined and Consolidated Debtor-in-Possession Financial Information (Tables) |
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Condensed Combined and Consolidated Debtor-in-Possession Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed and Consolidated Debtor-in-Possession Financial Statements Financial Statements | Debtors’ Combined and Consolidated Balance Sheet (Expressed in thousands of United States dollars) (Unaudited)
Debtors’ Combined and Consolidated Statement of Operations (Expressed in thousands of United States dollars) (Unaudited)
Debtors’ Combined and Consolidated Statement of Cash Flows (Expressed in thousands of United States dollars) (Unaudited)
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Other Financing Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financing Income (Charges) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Financing Income |
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Employee Pension Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Defined Benefit Pension Plan Expense (Income) | The net defined benefit pension plan expense (income) is as follows:
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Commitments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operating Leases | The minimum lease rentals required under operating leases are payable in the following amounts over the following years ended July 31, exclusive of approved helicopter lease rejections but inclusive of lease rejections still subject to the approval of the Bankruptcy Court, which may substantially alter our minimum lease rentals. The May 5, 2016 filing of the Petitions by the Debtors in the Bankruptcy Court caused an event of default under the terms of all of our helicopter lease agreements. Any efforts by creditors to enforce such payment obligations as existed before the Petition Date are automatically stayed as a result of the filing of the Petitions, and the holders’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. We continue to make the required payments for the post-petition period for helicopter leases for which we have not filed motions for rejection with the Bankruptcy Court in accordance with the below payment profile.
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Consolidated Financial Statement by Segment |
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Supplemental Condensed Consolidated Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets |
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Condensed Consolidated Statements of Operations |
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Condensed Consolidated Cash Flow Statement |
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Voluntary Filing Under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") (Details) - helicopter |
Sep. 14, 2016 |
Jul. 31, 2016 |
---|---|---|
Motions Filed | ||
Property, Plant and Equipment [Line Items] | ||
Number of helicopters | 97 | |
Motions Filed | Aircraft Operating Leases | ||
Property, Plant and Equipment [Line Items] | ||
Number of helicopters | 84 | |
Motions Filed | Financed Helicopters | ||
Property, Plant and Equipment [Line Items] | ||
Number of helicopters | 13 | |
Approved Judicial Ruling | ||
Property, Plant and Equipment [Line Items] | ||
Number of helicopters | 65 | |
Approved Judicial Ruling | Subsequent Event [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of helicopters | 66 | |
Senior Notes | Senior Secured Notes Due 2020 | ||
Property, Plant and Equipment [Line Items] | ||
Debt stated interest rate (percent) | 9.25% | |
Senior Notes | Senior Secured Notes Due 2021 | ||
Property, Plant and Equipment [Line Items] | ||
Debt stated interest rate (percent) | 9.375% |
Significant Accounting Policies - Foreign Currency Translations (Details) |
Jul. 31, 2016
AUD / $
|
Jul. 31, 2016
NOK / $
|
Jul. 31, 2016
€ / $
|
Jul. 31, 2016
CAD / $
|
Jul. 31, 2016
£ / $
|
Jul. 31, 2015
AUD / $
|
Jul. 31, 2015
NOK / $
|
Jul. 31, 2015
€ / $
|
Jul. 31, 2015
CAD / $
|
Jul. 31, 2015
£ / $
|
---|---|---|---|---|---|---|---|---|---|---|
Average rates | ||||||||||
Multiple foreign currency exchange rates | ||||||||||
Foreign currency exchange rates translations | 0.741358 | 0.119985 | 1.119985 | 0.771605 | 1.396682 | 0.765316 | 0.127480 | 1.111956 | 0.801231 | 1.552814 |
Period end rates | ||||||||||
Multiple foreign currency exchange rates | ||||||||||
Foreign currency exchange rates translations | 0.759758 | 0.118703 | 1.116939 | 0.766812 | 1.326969 | 0.733119 | 0.122863 | 1.102782 | 0.766460 | 1.563271 |
Significant Accounting Policies - Narrative (Details) $ in Thousands |
1 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Jul. 31, 2016
USD ($)
|
Apr. 30, 2016
USD ($)
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reverse share split ratio | 0.0333 | ||
Deferred financing costs reclassified | $ 5,324 | $ 26,157 |
Variable Interest Entities - Redeemable Non-controlling Interest (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Noncontrolling Interest [Line Items] | ||
Redeemable non-controlling interests | $ 17,753 | $ 18,867 |
EEA Helicopters Operations B.V. | ||
Noncontrolling Interest [Line Items] | ||
Redeemable non-controlling interests | 17,753 | 17,150 |
Atlantic Aviation Limited and Atlantic Aviation FZE | ||
Noncontrolling Interest [Line Items] | ||
Redeemable non-controlling interests | $ 0 | $ 1,717 |
Variable Interest Entities - Assets and Associated Liabilities Related to Company's Secured Debt Arrangements (Detail) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Assets and the associated liabilities related to the Company's secured debt arrangements | ||
Cash or Restricted cash | $ 15,151 | $ 25,082 |
Current facility secured by accounts receivable | 0 | 22,339 |
Variable Interest Entity, Primary Beneficiary | ||
Assets and the associated liabilities related to the Company's secured debt arrangements | ||
Cash or Restricted cash | 1,869 | 9,637 |
Transferred receivables | 528 | 32,876 |
Current facility secured by accounts receivable | $ 0 | $ 22,339 |
Variable Interest Entities - Summary of Amounts Recorded in Balance Sheet (Detail) - Thai Aviation Services - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Receivables, net of allowance | ||
Variable Interest Entity [Line Items] | ||
Carrying amounts | $ 2,987 | $ 3,733 |
Maximum exposure to loss | 2,987 | 3,733 |
Equity method investment | ||
Variable Interest Entity [Line Items] | ||
Carrying amounts | 29,860 | 29,508 |
Maximum exposure to loss | $ 29,860 | $ 29,508 |
Restructuring - Narrative (Details) $ in Millions |
Jul. 31, 2016
USD ($)
helicopter
|
---|---|
Employee related severance and other costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to-date | $ 90.1 |
Lease associated costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to-date | $ 87.3 |
Helicopter Operating Leases | Approved Judicial Ruling | Lease associated costs | |
Restructuring Cost and Reserve [Line Items] | |
Number of helicopters ceased use of in operations | helicopter | 9 |
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Schedule of Inventory | ||
Work-in-progress for long-term maintenance contracts under completed contract accounting | $ 7,279 | $ 5,749 |
Consumables | 97,344 | 100,667 |
Provision for obsolete and excess inventories | (15,286) | (14,167) |
Inventories | $ 89,337 | $ 92,249 |
Other Liabilities - Components of Other Liabilities (Detail) $ in Thousands |
Jul. 31, 2016
USD ($)
helicopter
|
Apr. 30, 2016
USD ($)
|
---|---|---|
Current: | ||
Restructuring | $ 8,177 | $ 44,242 |
Foreign currency forward contracts | 0 | 7,092 |
Deferred gains on sale-leasebacks of helicopters | 0 | 13,987 |
Residual value guarantees | 0 | 3,359 |
Foreign currency embedded derivatives | 65 | 441 |
Contract inducement | 299 | 724 |
Other | 0 | 695 |
Other liabilities, current | 8,541 | 70,540 |
Non-current: | ||
Accrued pension obligations | 51,021 | 103,895 |
Deferred gains on sale-leasebacks of helicopters | 0 | 68,178 |
Residual value guarantees | 0 | 19,654 |
Restructuring | 53 | 25,025 |
Insurance claims accrual | 9,577 | 10,776 |
Contract inducement | 2,506 | 6,304 |
Foreign currency forward contracts | 0 | 813 |
Foreign currency embedded derivatives | 0 | 261 |
Other | 5,934 | 7,805 |
Other liabilities, noncurrent | $ 69,091 | $ 242,711 |
Approved Judicial Ruling | ||
Loss Contingencies [Line Items] | ||
Number of helicopter lease rejections | helicopter | 65 |
Debt Obligations - Carrying Value and Fair Value of Debt Instruments (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Carrying value | $ 1,678,704 | $ 1,659,263 |
Senior secured notes | ||
Debt Instrument [Line Items] | ||
Carrying value | 1,014,289 | 1,007,539 |
Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Carrying value | 94,732 | 94,732 |
Fair value | Senior secured notes | ||
Debt Instrument [Line Items] | ||
Fair value | 484,323 | 461,502 |
Fair value | Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Fair value | 15,867 | 6,158 |
Carrying value | Senior secured notes | ||
Debt Instrument [Line Items] | ||
Carrying value | 1,014,289 | 1,007,539 |
Carrying value | Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 94,732 | $ 94,732 |
Reorganization Items, net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Reorganizations [Abstract] | ||
Adjustments to debt obligations | $ (27,051) | |
Adjustments to allowed claims for rejected leases | (716,682) | |
Adjustment to other allowed claims | (16,986) | |
Professional fees | (24,671) | |
Total reorganization items, net | $ (785,390) | $ 0 |
Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Liabilities Subject to Compromise Disclosures [Abstract] | ||
Payables, accruals and other liabilities | $ 328,957 | |
Less: Liabilities subject to compromise | 1,316,232 | $ 0 |
Rejected helicopter lease contracts | 638,743 | |
Total liabilities subject to compromise | $ 2,283,932 | $ 0 |
Other Financing Income - Summary of Financing Income (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Other Financing Income (Charges) [Abstract] | ||
Amortization of deferred financing costs | $ (2,132) | $ (1,861) |
Net gain on debt extinguishment | 0 | 14,687 |
Net loss on fair value of foreign currency forward contracts | 0 | (15,526) |
Net gain on fair value of foreign currency embedded derivatives | 8,786 | 13,709 |
Amortization of guaranteed residual values | (307) | (148) |
Interest expense | (92) | (4,382) |
Interest income | 1,901 | 5,790 |
Other | (656) | (2,175) |
Other financing income | $ 7,500 | $ 10,094 |
Other Financing Income - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jul. 20, 2015 |
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net gain on debt extinguishment | $ 0 | $ 14,687 | |
Senior unsecured notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Senior secured notes repurchased by subsidiary | $ 34,100 | ||
Debt instrument, purchase price (percent) | 55.25% | ||
Interest on redemption of debt | $ 400 | ||
Net gain on debt extinguishment | $ 14,700 |
Income Taxes - Additional Information (Detail) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Apr. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 59,000 | $ 5,908,000 | |
Effective tax rate (percent) | 0.00% | (14.50%) | |
Additional accrual for an uncertain tax position | $ 0 | ||
Unrecognized tax benefits | 25,700,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 19,900,000 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 8,600,000 | $ 10,200,000 |
Employee Pension Plans - Net Defined Benefit Pension Plan (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Net Defined Benefit Pension Plan Expense | ||
Current service cost | $ 3,518 | $ 4,043 |
Interest cost | 5,020 | 5,838 |
Expected return on plan assets | (8,707) | (10,756) |
Amortization of net actuarial and experience losses | 1,549 | 1,247 |
Amortization of past service credits | (111) | (124) |
Employee contributions | (379) | (421) |
Net periodic benefit expense (income), total | $ 890 | $ (173) |
Guarantees - Additional Information (Detail) - Asset value guarantees - USD ($) $ in Millions |
Jul. 31, 2016 |
Apr. 30, 2016 |
---|---|---|
Guarantor Obligations [Line Items] | ||
Company's exposure under asset value guarantees | $ 10.7 | $ 171.8 |
Rejected helicopter leases | ||
Guarantor Obligations [Line Items] | ||
Company's exposure under asset value guarantees | $ 165.8 |
Commitments - Additional Information (Detail) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Jul. 31, 2016
USD ($)
helicopter
|
Apr. 30, 2016
helicopter
|
|
Commitments and Contingencies [Line Items] | ||
Number of helicopters operated | helicopter | 92 | 154 |
Total required additional expenditure | $ 236.8 | |
Purchase obligation, due in 2017 | 170.6 | |
Purchase obligation, due in 2018 | 66.2 | |
Helicopters | ||
Commitments and Contingencies [Line Items] | ||
Total required additional expenditure | 252.2 | |
Maximum of deposits subject to forfeiture | $ 29.4 | |
Approved Judicial Ruling | ||
Commitments and Contingencies [Line Items] | ||
Number of helicopter lease rejections | helicopter | 65 | |
Helicopter operating leases | ||
Commitments and Contingencies [Line Items] | ||
Number of helicopters ceased use of in operations | helicopter | 7 | |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Range of lease expiration date | 2017 | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Range of lease expiration date | 2025 |
Commitments - Summary of Operating Leases (Detail) $ in Thousands |
Jul. 31, 2016
USD ($)
|
---|---|
Summary of Operating Leases | |
2017 | $ 165,199 |
2018 | 155,084 |
2019 | 137,600 |
2020 | 112,947 |
2021 | 91,297 |
Thereafter | 114,542 |
Operating Leases, Future Minimum Payments Due, Total | 776,669 |
Helicopter operating leases | |
Summary of Operating Leases | |
2017 | 151,557 |
2018 | 145,208 |
2019 | 129,897 |
2020 | 108,345 |
2021 | 87,336 |
Thereafter | 83,350 |
Operating Leases, Future Minimum Payments Due, Total | 705,693 |
Building, land and equipment operating leases | |
Summary of Operating Leases | |
2017 | 13,642 |
2018 | 9,876 |
2019 | 7,703 |
2020 | 4,602 |
2021 | 3,961 |
Thereafter | 31,192 |
Operating Leases, Future Minimum Payments Due, Total | $ 70,976 |
Contingencies - Additional Information (Detail) £ in Millions, $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jul. 31, 2016
USD ($)
|
Jul. 30, 2014
GBP (£)
|
May 02, 2008
USD ($)
helicopter
|
Jul. 31, 2016
USD ($)
|
May 05, 2016
Lawsuits
|
Apr. 30, 2016
Lawsuits
|
|
Loss Contingencies [Line Items] | ||||||
Number of helicopters seized | helicopter | 1 | |||||
Seized value of helicopters | $ 10.0 | |||||
Contingent fee payment payable | $ 17.2 | $ 17.2 | ||||
Threatened Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Bid recovery costs | $ 23.6 | £ 17.8 | ||||
Foreign tax authority | Secretariat of the Federal Revenue Bureau of Brazil | ||||||
Loss Contingencies [Line Items] | ||||||
Additional taxes plus interest and penalties sought by taxing authorities | 2.3 | |||||
Foreign tax authority | Foreign tax authority, Brazilian municipalities | ||||||
Loss Contingencies [Line Items] | ||||||
Additional taxes plus interest and penalties sought by taxing authorities | $ 4.8 | |||||
Rudman et al. v. CHC Group et al | ||||||
Loss Contingencies [Line Items] | ||||||
Number of security class action lawsuits pending | Lawsuits | 1 | 2 |
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