SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

9 Months Ended

Dec. 31, 2017

Supplemental Condensed Consolidating Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In connection with the issuance of the 6¼% Senior Notes due 2022 (the “6¼% Senior Notes”) and the 4½% Convertible Senior Notes, the Guarantor Subsidiaries fully, unconditionally, jointly and severally guaranteed the payment obligations under these notes. The following supplemental financial information sets forth, on a consolidating basis, the balance sheet, statement of operations, comprehensive income and cash flow information for Bristow Group Inc. (“Parent Company Only”), for the Guarantor Subsidiaries and for our other subsidiaries (the “Non-Guarantor Subsidiaries”). We have not presented separate financial statements and other disclosures concerning the Guarantor Subsidiaries because management has determined that such information is not material to investors.

The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements, although we believe that the disclosures made are adequate to make the information presented not misleading. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenue and expense.

The allocation of the consolidated income tax provision was made using the with and without allocation method.

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended December 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	188		$	47,377		$	313,170		$	—		$	360,735
Intercompany revenue	—			28,608			—			(28,608		)	—
	188			75,985			313,170			(28,608		)	360,735
Operating expense:
Direct cost and reimbursable expense	81			49,540			236,968			—			286,589
Intercompany expenses	—			—			28,608			(28,608		)	—
Depreciation and amortization	3,048			12,489			16,145			—			31,682
General and administrative	13,937			6,514			22,915			—			43,366
	17,066			68,543			304,636			(28,608		)	361,637
Gain (loss) on disposal of assets	(1,757		)	(3,657		)	823			—			(4,591		)
Earnings from unconsolidated affiliates, net of losses	(11,503		)	—			1,996			11,503			1,996
Operating income (loss)	(30,138		)	3,785			11,353			11,503			(3,497		)
Interest expense, net	(9,480		)	(5,008		)	(4,605		)	—			(19,093		)
Other income (expense), net	(16		)	227			(977		)	—			(766		)
Income (loss) before (provision) benefit for income taxes	(39,634		)	(996		)	5,771			11,503			(23,356		)
Allocation of consolidated income taxes	31,373			(1,791		)	(16,163		)	—			13,419
Net loss	(8,261		)	(2,787		)	(10,392		)	11,503			(9,937		)
Net (income) loss attributable to noncontrolling interests	(12		)	—			1,676			—			1,664
Net loss attributable to Bristow Group	$	(8,273	)	$	(2,787	)	$	(8,716	)	$	11,503		$	(8,273	)

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended December 31, 2016

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	39,558		$	297,885		$	—		$	337,443
Intercompany revenue	—			29,799			—			(29,799		)	—
	—			69,357			297,885			(29,799		)	337,443
Operating expense:
Direct cost and reimbursable expense	703			45,794			226,052			—			272,549
Intercompany expenses	—			—			29,799			(29,799		)	—
Depreciation and amortization	2,233			10,942			16,593			—			29,768
General and administrative	13,897			5,841			25,671			—			45,409
	16,833			62,577			298,115			(29,799		)	347,726
Loss on impairment	—			—			(8,706		)	—			(8,706		)
Loss on disposal of assets	—			(361		)	(513		)	—			(874		)
Earnings from unconsolidated affiliates, net of losses	4,562			—			765			(4,561		)	766
Operating income (loss)	(12,271		)	6,419			(8,684		)	(4,561		)	(19,097		)
Interest expense, net	(11,525		)	(42		)	(612		)	—			(12,179		)
Other income (expense), net	497			1,666			(495		)	—			1,668
Income (loss) before (provision) benefit for income taxes	(23,299		)	8,043			(9,791		)	(4,561		)	(29,608		)
Allocation of consolidated income taxes	1,386			(1,138		)	3,312			—			3,560
Net income (loss)	(21,913		)	6,905			(6,479		)	(4,561		)	(26,048		)
Net (income) loss attributable to noncontrolling interests	(13		)	—			4,134			—			4,121
Net income (loss) attributable to Bristow Group	$	(21,926	)	$	6,905		$	(2,345	)	$	(4,561	)	$	(21,927	)

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended December 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	188		$	140,104		$	946,228		$	—		$	1,086,520
Intercompany revenue	—			92,518			—			(92,518		)	—
	188			232,622			946,228			(92,518		)	1,086,520
Operating expense:
Direct cost and reimbursable expense	3,350			147,829			733,314			—			884,493
Intercompany expenses	—			—			92,518			(92,518		)	—
Depreciation and amortization	8,981			38,209			46,929			—			94,119
General and administrative	50,924			17,899			69,872			—			138,695
	63,255			203,937			942,633			(92,518		)	1,117,307
Loss on impairment	—			(1,192		)	—			—			(1,192		)
Gain (loss) on disposal of assets	(1,757		)	7,356			(18,017		)	—			(12,418		)
Earnings from unconsolidated affiliates, net of losses	(22,506		)	—			3,394			22,506			3,394
Operating income (loss)	(87,330		)	34,849			(11,028		)	22,506			(41,003		)
Interest expense, net	(29,174		)	(16,811		)	(7,692		)	—			(53,677		)
Other income (expense), net	(142		)	(529		)	818			—			147
Income (loss) before (provision) benefit for income taxes	(116,646		)	17,509			(17,902		)	22,506			(94,533		)
Allocation of consolidated income taxes	21,925			(7,896		)	(16,575		)	—			(2,546		)
Net income (loss)	(94,721		)	9,613			(34,477		)	22,506			(97,079		)
Net (income) loss attributable to noncontrolling interests	(36		)	—			2,358			—			2,322
Net income (loss) attributable to Bristow Group	$	(94,757	)	$	9,613		$	(32,119	)	$	22,506		$	(94,757	)

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended December 31, 2016

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	127,414		$	936,894		$	—		$	1,064,308
Intercompany revenue	—			78,413			—			(78,413		)	—
	—			205,827			936,894			(78,413		)	1,064,308
Operating expense:
Direct cost and reimbursable expense	72			142,270			727,270			—			869,612
Intercompany expenses	—			—			78,413			(78,413		)	—
Depreciation and amortization	6,549			38,728			47,777			—			93,054
General and administrative	51,643			18,921			78,714			—			149,278
	58,264			199,919			932,174			(78,413		)	1,111,944
Loss on impairment	—			(4,761		)	(11,517		)	—			(16,278		)
Loss on disposal of assets	—			(11,936		)	(1,141		)	—			(13,077		)
Earnings from unconsolidated affiliates, net of losses	(17,861		)	—			4,733			17,905			4,777
Operating income (loss)	(76,125		)	(10,789		)	(3,205		)	17,905			(72,214		)
Interest expense, net	(31,757		)	(1,070		)	(1,706		)	—			(34,533		)
Other income (expense), net	1,249			3,312			(6,079		)	—			(1,518		)
Loss before (provision) benefit for income taxes	(106,633		)	(8,547		)	(10,990		)	17,905			(108,265		)
Allocation of consolidated income taxes	14,178			(4,870		)	1,730			—			11,038
Net loss	(92,455		)	(13,417		)	(9,260		)	17,905			(97,227		)
Net (income) loss attributable to noncontrolling interests	(40		)	—			4,771			—			4,731
Net loss attributable to Bristow Group	$	(92,495	)	$	(13,417	)	$	(4,489	)	$	17,905		$	(92,496	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended December 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net loss	$	(8,261	)	$	(2,787	)	$	(10,392	)	$	11,503		$	(9,937	)
Other comprehensive loss:
Currency translation adjustments	—			(18		)	1,116			(1,155		)	(57		)
Total comprehensive loss	(8,261		)	(2,805		)	(9,276		)	10,348			(9,994		)
Net (income) loss attributable to noncontrolling interests	(12		)	—			1,676			—			1,664
Currency translation adjustments attributable to noncontrolling interests	—			—			(17		)	—			(17		)
Total comprehensive (income) loss attributable to noncontrolling interests	(12		)	—			1,659			—			1,647
Total comprehensive loss attributable to Bristow Group	$	(8,273	)	$	(2,805	)	$	(7,617	)	$	10,348		$	(8,347	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended December 31, 2016

	Parent Company Only			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net income (loss)	$	(21,913	)	$	6,905	$	(6,479	)	$	(4,561	)	$	(26,048	)
Other comprehensive loss:
Currency translation adjustments	—			—		(11,792		)	(7,104		)	(18,896		)
Total comprehensive income (loss)	(21,913		)	6,905		(18,271		)	(11,665		)	(44,944		)
Net (income) loss attributable to noncontrolling interests	(13		)	—		4,134			—			4,121
Currency translation adjustments attributable to noncontrolling interests	—			—		(687		)	—			(687		)
Total comprehensive (income) loss attributable to noncontrolling interests	(13		)	—		3,447			—			3,434
Total comprehensive income (loss) attributable to Bristow Group	$	(21,926	)	$	6,905	$	(14,824	)	$	(11,665	)	$	(41,510	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended December 31, 2017

	Parent Company Only			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net income (loss)	$	(94,721	)	$	9,613	$	(34,477	)	$	22,506		$	(97,079	)
Other comprehensive income (loss):
Currency translation adjustments	—			626		29,686			(9,918		)	20,394
Total comprehensive income (loss)	(94,721		)	10,239		(4,791		)	12,588			(76,685		)
Net (income) loss attributable to noncontrolling interests	(36		)	—		2,358			—			2,322
Currency translation adjustments attributable to noncontrolling interests	—			—		530			—			530
Total comprehensive (income) loss attributable to noncontrolling interests	(36		)	—		2,888			—			2,852
Total comprehensive income (loss) attributable to Bristow Group	$	(94,757	)	$	10,239	$	(1,903	)	$	12,588		$	(73,833	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended December 31, 2016

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net loss	$	(92,455	)	$	(13,417	)	$	(9,260	)	$	17,905		$	(97,227	)
Other comprehensive income (loss):
Currency translation adjustments	—			—			196,442			(227,912		)	(31,470		)
Total comprehensive income (loss)	(92,455		)	(13,417		)	187,182			(210,007		)	(128,697		)
Net (income) loss attributable to noncontrolling interests	(40		)	—			4,771			—			4,731
Currency translation adjustments attributable to noncontrolling interests	—			—			(5,652		)	—			(5,652		)
Total comprehensive income attributable to noncontrolling interests	(40		)	—			(881		)	—			(921		)
Total comprehensive income (loss) attributable to Bristow Group	$	(92,495	)	$	(13,417	)	$	186,301		$	(210,007	)	$	(129,618	)

Supplemental Condensed Consolidating Balance Sheet

As of December 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	27,895		$	—		$	90,875		$	(922	)	$	117,848
Accounts receivable	148,115			419,838			320,897			(674,071		)	214,779
Inventories	—			31,623			102,370			—			133,993
Assets held for sale	—			25,265			5,773			—			31,038
Prepaid expenses and other current assets	2,427			5,234			36,007			—			43,668
Total current assets	178,437			481,960			555,922			(674,993		)	541,326
Intercompany investment	2,387,382			104,435			136,627			(2,628,444		)	—
Investment in unconsolidated affiliates	—			—			211,115			—			211,115
Intercompany notes receivable	166,341			36,358			157,575			(360,274		)	—
Property and equipment—at cost:
Land and buildings	4,806			58,252			178,734			—			241,792
Aircraft and equipment	157,421			1,135,071			1,218,830			—			2,511,322
	162,227			1,193,323			1,397,564			—			2,753,114
Less: Accumulated depreciation and amortization	(38,062		)	(257,033		)	(378,835		)	—			(673,930		)
	124,165			936,290			1,018,729			—			2,079,184
Goodwill	—			—			20,299			—			20,299
Other assets	9,471			1,961			103,822			(21		)	115,233
Total assets	$	2,865,796		$	1,561,004		$	2,204,089		$	(3,663,732	)	$	2,967,157
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	348,871		$	203,517		$	190,827		$	(655,787	)	$	87,428
Accrued liabilities	48,284			4,391			157,341			(17,975		)	192,041
Short-term borrowings and current maturities of long-term debt	40,087			20,335			32,714			—			93,136
Total current liabilities	437,242			228,243			380,882			(673,762		)	372,605
Long-term debt, less current maturities	513,801			277,442			311,522			—			1,102,765
Intercompany notes payable	187,531			133,087			40,757			(361,375		)	—
Accrued pension liabilities	—			—			54,291			—			54,291
Other liabilities and deferred credits	13,570			7,660			16,538			—			37,768
Deferred taxes	78,937			47,494			15,494			(21		)	141,904
Redeemable noncontrolling interest	—			—			3,859			—			3,859
Stockholders’ investment:
Common stock	381			20,028			131,317			(151,345		)	381
Additional paid-in-capital	844,825			45,306			284,048			(329,354		)	844,825
Retained earnings	894,684			800,730			674,765			(1,475,495		)	894,684
Accumulated other comprehensive loss	78,306			1,014			285,707			(672,380		)	(307,353		)
Treasury shares	(184,796		)	—			—			—			(184,796		)
Total Bristow Group stockholders’ investment	1,633,400			867,078			1,375,837			(2,628,574		)	1,247,741
Noncontrolling interests	1,315			—			4,909			—			6,224
Total stockholders’ investment	1,634,715			867,078			1,380,746			(2,628,574		)	1,253,965
Total liabilities, redeemable noncontrolling interest and stockholders’ investment	$	2,865,796		$	1,561,004		$	2,204,089		$	(3,663,732	)	$	2,967,157

Supplemental Condensed Consolidating Balance Sheet

As of March 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	3,382		$	299		$	92,975		$	—		$	96,656
Accounts receivable	76,383			288,235			212,900			(370,603		)	206,915
Inventories	—			34,721			90,190			—			124,911
Assets held for sale	—			30,716			7,530			—			38,246
Prepaid expenses and other current assets	3,237			4,501			43,856			(10,451		)	41,143
Total current assets	83,002			358,472			447,451			(381,054		)	507,871
Intercompany investment	2,491,631			104,435			126,296			(2,722,362		)	—
Investment in unconsolidated affiliates	—			—			210,162			—			210,162
Intercompany notes receivable	306,641			37,633			39,706			(383,980		)	—
Property and equipment—at cost:
Land and buildings	4,806			62,114			164,528			—			231,448
Aircraft and equipment	151,005			1,199,073			1,272,623			—			2,622,701
	155,811			1,261,187			1,437,151			—			2,854,149
Less: Accumulated depreciation and amortization	(29,099		)	(258,225		)	(312,461		)	—			(599,785		)
	126,712			1,002,962			1,124,690			—			2,254,364
Goodwill	—			—			19,798			—			19,798
Other assets	18,770			2,139			100,743			—			121,652
Total assets	$	3,026,756		$	1,505,641		$	2,068,846		$	(3,487,396	)	$	3,113,847
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	231,841		$	70,434		$	151,382		$	(355,442	)	$	98,215
Accrued liabilities	61,791			17,379			132,704			(25,628		)	186,246
Current deferred taxes	(1,272		)	2,102			—			—			830
Short-term borrowings and current maturities of long-term debt	79,053			17,432			34,578			—			131,063
Total current liabilities	371,413			107,347			318,664			(381,070		)	416,354
Long-term debt, less current maturities	763,325			284,710			102,921			—			1,150,956
Intercompany notes payable	70,689			226,091			87,200			(383,980		)	—
Accrued pension liabilities	—			—			61,647			—			61,647
Other liabilities and deferred credits	11,597			6,229			11,073			—			28,899
Deferred taxes	112,716			40,344			1,813			—			154,873
Redeemable noncontrolling interest	—			—			6,886			—			6,886
Stockholders’ investment:
Common stock	379			20,028			115,317			(135,345		)	379
Additional paid-in-capital	809,995			29,387			284,048			(313,435		)	809,995
Retained earnings	991,906			791,117			819,987			(1,611,104		)	991,906
Accumulated other comprehensive loss	78,306			388			255,491			(662,462		)	(328,277		)
Treasury shares	(184,796		)	—			—			—			(184,796		)
Total Bristow Group stockholders’ investment	1,695,790			840,920			1,474,843			(2,722,346		)	1,289,207
Noncontrolling interests	1,226			—			3,799			—			5,025
Total stockholders’ investment	1,697,016			840,920			1,478,642			(2,722,346		)	1,294,232
Total liabilities, redeemable noncontrolling interest and stockholders’ investment	$	3,026,756		$	1,505,641		$	2,068,846		$	(3,487,396	)	$	3,113,847

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended December 31, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(105,817	)	$	34,995		$	62,437		$	(922	)	$	(9,307	)
Cash flows from investing activities:
Capital expenditures	(8,182		)	(7,755		)	(97,984		)	77,480			(36,441		)
Proceeds from asset dispositions	—			85,760			40,267			(77,480		)	48,547
Proceeds from OEM cost recoveries	—			—			94,463			—			94,463
Net cash provided by (used in) investing activities	(8,182		)	78,005			36,746			—			106,569
Cash flows from financing activities:
Proceeds from borrowings	318,550			—			230,218			—			548,768
Debt issuance costs	(2,558		)	(552		)	(8,543		)	—			(11,653		)
Repayment of debt	(569,325		)	(13,137		)	(27,205		)	—			(609,667		)
Purchase of 4½% Convertible Senior Notes call option	(40,393		)	—			—			—			(40,393		)
Proceeds from issuance of warrants	30,259			—			—			—			30,259
Dividends paid	110,637			—			(113,102		)	—			(2,465		)
Increases (decreases) in cash related to intercompany advances and debt	291,969			(99,610		)	(192,359		)	—			—
Partial prepayment of put/call obligation	(36		)	—			—			—			(36		)
Repurchases for tax withholdings on vesting of equity awards	(591		)	—			—			—			(591		)
Net cash provided by (used in) financing activities	138,512			(113,299		)	(110,991		)	—			(85,778		)
Effect of exchange rate changes on cash and cash equivalents	—			—			9,708			—			9,708
Net increase (decrease) in cash and cash equivalents	24,513			(299		)	(2,100		)	(922		)	21,192
Cash and cash equivalents at beginning of period	3,382			299			92,975			—			96,656
Cash and cash equivalents at end of period	$	27,895		$	—		$	90,875		$	(922	)	$	117,848

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended December 31, 2016

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(87,634	)	$	39,771		$	36,712		$	(2,947	)	$	(14,098	)
Cash flows from investing activities:
Capital expenditures	(15,385		)	(21,093		)	(83,248		)	—			(119,726		)
Proceeds from asset dispositions	—			12,894			1,450			—			14,344
Investment in unconsolidated affiliate	—			290			—			—			290
Net cash used in investing activities	(15,385		)	(7,909		)	(81,798		)	—			(105,092		)
Cash flows from financing activities:
Proceeds from borrowings	243,900			109,890			6,450			—			360,240
Debt issuance costs	(2,925		)	—			(958		)	—			(3,883		)
Repayment of debt	(218,900		)	(4,494		)	(20,283		)	—			(243,677		)
Dividends paid	(7,010		)	4			(360		)	—			(7,366		)
Increases (decreases) in cash related to intercompany advances and debt	55,910			(140,655		)	84,745			—			—
Partial prepayment of put/call obligation	(38		)	—			—			—			(38		)
Dividends paid to noncontrolling interest	—			—			(2,533		)	—			(2,533		)
Payment of contingent consideration	—			—			(10,000		)	—			(10,000		)
Repurchases for tax withholdings on vesting of equity awards	(762		)	—			—			—			(762		)
Net cash provided by (used in) financing activities	70,175			(35,255		)	57,061			—			91,981
Effect of exchange rate changes on cash and cash equivalents	—			—			(5,942		)	—			(5,942		)
Net increase (decrease) in cash and cash equivalents	(32,844		)	(3,393		)	6,033			(2,947		)	(33,151		)
Cash and cash equivalents at beginning of period	35,241			3,393			65,676			—			104,310
Cash and cash equivalents at end of period	$	2,397		$	—		$	71,709		$	(2,947	)	$	71,159