SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

6 Months Ended

Sep. 30, 2018

Supplemental Condensed Consolidating Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The Company has registered senior notes that the Guarantor Subsidiaries have fully, unconditionally, jointly and severally guaranteed. 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. For further details on the registered senior notes, see Note 4 to the fiscal year 2018 Financial Statements.

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 September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	45		$	36,798		$	313,814		$	—		$	350,657
Intercompany revenue	—			27,496			—			(27,496		)	—
	45			64,294			313,814			(27,496		)	350,657
Operating expense:
Direct cost and reimbursable expense	20			40,981			251,410			—			292,411
Intercompany expenses	15,307			—			12,189			(27,496		)	—
Depreciation and amortization	3,092			17,733			9,664			—			30,489
General and administrative	12,907			5,125			20,807			—			38,839
	31,326			63,839			294,070			(27,496		)	361,739
Loss on impairment	—			(87,474		)	(29,746		)	—			(117,220		)
Loss on disposal of assets	—			(318		)	(975		)	—			(1,293		)
Earnings (losses) from unconsolidated affiliates, net	(123,987		)	—			(96		)	123,987			(96		)
Operating loss	(155,268		)	(87,337		)	(11,073		)	123,987			(129,691		)
Interest expense, net	(15,564		)	(5,915		)	(4,954		)	—			(26,433		)
Other income (expense), net	50			242			(3,496		)	—			(3,204		)
Loss before (provision) benefit for income taxes	(170,782		)	(93,010		)	(19,523		)	123,987			(159,328		)
Allocation of consolidated income taxes	26,605			(1,176		)	(9,774		)	—			15,655
Net loss	(144,177		)	(94,186		)	(29,297		)	123,987			(143,673		)
Net income attributable to noncontrolling interests	(13		)	—			(504		)	—			(517		)
Net loss attributable to Bristow Group	$	(144,190	)	$	(94,186	)	$	(29,801	)	$	123,987		$	(144,190	)

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	46,952		$	326,724		$	—		$	373,676
Intercompany revenue	—			31,719			—			(31,719		)	—
	—			78,671			326,724			(31,719		)	373,676
Operating expense:
Direct cost and reimbursable expense	3,263			45,955			250,938			—			300,156
Intercompany expenses	—			—			31,719			(31,719		)	—
Depreciation and amortization	3,016			13,237			15,128			—			31,381
General and administrative	17,880			5,623			25,119			—			48,622
	24,159			64,815			322,904			(31,719		)	380,159
Gain (loss) on disposal of assets	—			10,597			(19,123		)	—			(8,526		)
Earnings (losses) from unconsolidated affiliates, net	9,642			—			2,063			(9,642		)	2,063
Operating income (loss)	(14,517		)	24,453			(13,240		)	(9,642		)	(12,946		)
Interest expense, net	(10,636		)	(6,023		)	(1,904		)	—			(18,563		)
Other income (expense), net	(97		)	(399		)	3,083			—			2,587
Income (loss) before (provision) benefit for income taxes	(25,250		)	18,031			(12,061		)	(9,642		)	(28,922		)
Allocation of consolidated income taxes	(5,946		)	(1,945		)	5,417			—			(2,474		)
Net income (loss)	(31,196		)	16,086			(6,644		)	(9,642		)	(31,396		)
Net (income) loss attributable to noncontrolling interests	(13		)	—			200			—			187
Net income (loss) attributable to Bristow Group	$	(31,209	)	$	16,086		$	(6,444	)	$	(9,642	)	$	(31,209	)

Supplemental Condensed Consolidating Statement of Operations

Six Months Ended September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Third party revenue	$	90		$	70,933		$	647,528		$	—		$	718,551
Intercompany revenue	—			54,013			—			(54,013		)	—
	90			124,946			647,528			(54,013		)	718,551
Operating expense:
Direct cost and reimbursable expense	36			82,857			505,473			—			588,366
Intercompany expenses	15,307			—			38,706			(54,013		)	—
Depreciation and amortization	6,158			35,955			19,317			—			61,430
General and administrative	25,695			8,923			44,322			—			78,940
	47,196			127,735			607,818			(54,013		)	728,736
Loss on impairment	—			(87,474		)	(29,746		)	—			(117,220		)
Loss on disposal of assets	(806		)	(1,478		)	(687		)	—			(2,971		)
Earnings (losses) from unconsolidated affiliates, net	(131,296		)	—			(3,113		)	131,296			(3,113		)
Operating income (loss)	(179,208		)	(91,741		)	6,164			131,296			(133,489		)
Interest expense, net	(31,943		)	(12,745		)	(8,889		)	—			(53,577		)
Other income (expense), net	184			1,317			(8,655		)	—			(7,154		)
Loss before (provision) benefit for income taxes	(210,967		)	(103,169		)	(11,380		)	131,296			(194,220		)
Allocation of consolidated income taxes	34,697			(283		)	(15,908		)	—			18,506
Net loss	(176,270		)	(103,452		)	(27,288		)	131,296			(175,714		)
Net income attributable to noncontrolling interests	(28		)	—			(556		)	—			(584		)
Net loss attributable to Bristow Group	$	(176,298	)	$	(103,452	)	$	(27,844	)	$	131,296		$	(176,298	)

Supplemental Condensed Consolidating Statement of Operations

Six Months Ended September 30, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Third party revenue	$	—		$	92,727		$	633,058		$	—		$	725,785
Intercompany revenue	—			63,910			—			(63,910		)	—
	—			156,637			633,058			(63,910		)	725,785
Operating expense:
Direct cost and reimbursable expense	3,269			98,289			496,404			—			597,962
Intercompany expenses	—			—			63,910			(63,910		)	—
Depreciation and amortization	5,933			25,720			30,784			—			62,437
General and administrative	36,987			11,385			46,957			—			95,329
	46,189			135,394			638,055			(63,910		)	755,728
Loss on impairment	—			(1,192		)	—			—			(1,192		)
Gain (loss) on disposal of assets	—			11,013			(18,840		)	—			(7,827		)
Earnings (losses) from unconsolidated affiliates, net	(11,003		)	—			1,398			11,003			1,398
Operating income (loss)	(57,192		)	31,064			(22,439		)	11,003			(37,564		)
Interest expense, net	(19,694		)	(11,803		)	(3,087		)	—			(34,584		)
Other income (expense), net	(126		)	(756		)	1,853			—			971
Income (loss) before provision for income taxes	(77,012		)	18,505			(23,673		)	11,003			(71,177		)
Allocation of consolidated income taxes	(9,448		)	(6,105		)	(412		)	—			(15,965		)
Net income (loss)	(86,460		)	12,400			(24,085		)	11,003			(87,142		)
Net (income) loss attributable to noncontrolling interests	(24		)	—			682			—			658
Net income (loss) attributable to Bristow Group	$	(86,484	)	$	12,400		$	(23,403	)	$	11,003		$	(86,484	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net loss	$	(144,177	)	$	(94,186	)	$	(29,297	)	$	123,987	$	(143,673	)
Other comprehensive loss:
Currency translation adjustments	—			(159		)	(14,306		)	6,498		(7,967		)
Unrealized loss on cash flow hedges	—			—			(98		)	—		(98		)
Total comprehensive loss	(144,177		)	(94,345		)	(43,701		)	130,485		(151,738		)
Net income attributable to noncontrolling interests	(13		)	—			(504		)	—		(517		)
Currency translation adjustments attributable to noncontrolling interests	—			—			(32		)	—		(32		)
Total comprehensive income attributable to noncontrolling interests	(13		)	—			(536		)	—		(549		)
Total comprehensive loss attributable to Bristow Group	$	(144,190	)	$	(94,345	)	$	(44,237	)	$	130,485	$	(152,287	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2017

	Parent Company Only			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net income (loss)	$	(31,196	)	$	16,086	$	(6,644	)	$	(9,642	)	$	(31,396	)
Other comprehensive income (loss):
Currency translation adjustments	—			306		14,218			(3,833		)	10,691
Total comprehensive income (loss)	(31,196		)	16,392		7,574			(13,475		)	(20,705		)
Net (income) loss attributable to noncontrolling interests	(13		)	—		200			—			187
Currency translation adjustments attributable to noncontrolling interests	—			—		237			—			237
Total comprehensive (income) loss attributable to noncontrolling interests	(13		)	—		437			—			424
Total comprehensive income (loss) attributable to Bristow Group	$	(31,209	)	$	16,392	$	8,011		$	(13,475	)	$	(20,281	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net loss	$	(176,270	)	$	(103,452	)	$	(27,288	)	$	131,296	$	(175,714	)
Other comprehensive loss:
Currency translation adjustments	—			(1,045		)	(96,108		)	60,153		(37,000		)
Unrealized gain on cash flow hedges	—			—			1,250			—		1,250
Total comprehensive loss	(176,270		)	(104,497		)	(122,146		)	191,449		(211,464		)
Net income attributable to noncontrolling interests	(28		)	—			(556		)	—		(584		)
Currency translation adjustments attributable to noncontrolling interests	—			—			(171		)	—		(171		)
Total comprehensive income attributable to noncontrolling interests	(28		)	—			(727		)	—		(755		)
Total comprehensive loss attributable to Bristow Group	$	(176,298	)	$	(104,497	)	$	(122,873	)	$	191,449	$	(212,219	)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended September 30, 2017

	Parent Company Only			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net income (loss)	$	(86,460	)	$	12,400	$	(24,085	)	$	11,003		$	(87,142	)
Other comprehensive income (loss):
Currency translation adjustments	—			644		28,570			(8,763		)	20,451
Total comprehensive income (loss)	(86,460		)	13,044		4,485			2,240			(66,691		)
Net (income) loss attributable to noncontrolling interests	(24		)	—		682			—			658
Currency translation adjustments attributable to noncontrolling interests	—			—		547			—			547
Total comprehensive (income) loss attributable to noncontrolling interests	(24		)	—		1,229			—			1,205
Total comprehensive income (loss) attributable to Bristow Group	$	(86,484	)	$	13,044	$	5,714		$	2,240		$	(65,486	)

Supplemental Condensed Consolidating Balance Sheet

As of September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	236,075		$	1,131		$	70,585		$	—		$	307,791
Accounts receivable	438,878			508,873			291,308			(1,007,238		)	231,821
Inventories	—			36,637			81,069			—			117,706
Assets held for sale	—			19,856			4,320			—			24,176
Prepaid expenses and other current assets	2,608			2,802			41,193			—			46,603
Total current assets	677,561			569,299			488,475			(1,007,238		)	728,097
Intercompany investment	1,904,177			104,435			131,710			(2,140,322		)	—
Investment in unconsolidated affiliates	—			—			110,637			—			110,637
Intercompany notes receivable	124,389			9,229			159,725			(293,343		)	—
Property and equipment—at cost:
Land and buildings	4,806			58,089			180,350			—			243,245
Aircraft and equipment	157,378			1,317,739			1,016,174			—			2,491,291
	162,184			1,375,828			1,196,524			—			2,734,536
Less: Accumulated depreciation and amortization	(45,937		)	(384,448		)	(417,886		)	—			(848,271		)
	116,247			991,380			778,638			—			1,886,265
Goodwill	—			—			18,778			—			18,778
Other assets	4,303			2,026			110,698			—			117,027
Total assets	$	2,826,677		$	1,676,369		$	1,798,661		$	(3,440,903	)	$	2,860,804
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	397,602		$	428,348		$	276,016		$	(998,456	)	$	103,510
Accrued liabilities	53,851			(5,771		)	134,567			(7,738		)	174,909
Short-term borrowings and current maturities of long-term debt	(3,541		)	20,079			34,260			—			50,798
Total current liabilities	447,912			442,656			444,843			(1,006,194		)	329,217
Long-term debt, less current maturities	848,103			258,590			292,218			—			1,398,911
Intercompany notes payable	105,791			168,885			19,769			(294,445		)	—
Accrued pension liabilities	—			—			28,484			—			28,484
Other liabilities and deferred credits	12,177			7,253			12,209			—			31,639
Deferred taxes	42,991			27,343			27,038			—			97,372
Stockholders’ investment:
Common stock	385			4,996			131,317			(136,313		)	385
Additional paid-in-capital	858,809			29,387			284,048			(313,435		)	858,809
Retained earnings	615,739			736,924			284,481			(1,021,405		)	615,739
Accumulated other comprehensive income (loss)	78,306			335			268,455			(669,111		)	(322,015		)
Treasury shares	(184,796		)	—			—			—			(184,796		)
Total Bristow Group stockholders’ investment	1,368,443			771,642			968,301			(2,140,264		)	968,122
Noncontrolling interests	1,260			—			5,799			—			7,059
Total stockholders’ investment	1,369,703			771,642			974,100			(2,140,264		)	975,181
Total liabilities and stockholders’ investment	$	2,826,677		$	1,676,369		$	1,798,661		$	(3,440,903	)	$	2,860,804

Supplemental Condensed Consolidating Balance Sheet

As of March 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	277,176		$	8,904		$	94,143		$	—		$	380,223
Accounts receivable	211,412			423,214			250,984			(638,630		)	246,980
Inventories	—			31,300			98,314			—			129,614
Assets held for sale	—			26,737			3,611			—			30,348
Prepaid expenses and other current assets	3,367			4,494			41,016			(1,643		)	47,234
Total current assets	491,955			494,649			488,068			(640,273		)	834,399
Intercompany investment	2,204,454			104,435			141,683			(2,450,572		)	—
Investment in unconsolidated affiliates	—			—			126,170			—			126,170
Intercompany notes receivable	183,634			36,358			368,575			(588,567		)	—
Property and equipment—at cost:
Land and buildings	4,806			58,191			187,043			—			250,040
Aircraft and equipment	156,651			1,326,922			1,027,558			—			2,511,131
	161,457			1,385,113			1,214,601			—			2,761,171
Less: Accumulated depreciation and amortization	(39,780		)	(263,412		)	(389,959		)	—			(693,151		)
	121,677			1,121,701			824,642			—			2,068,020
Goodwill	—			—			19,907			—			19,907
Other assets	4,966			2,122			109,418			—			116,506
Total assets	$	3,006,686		$	1,759,265		$	2,078,463		$	(3,679,412	)	$	3,165,002
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	341,342		$	175,133		$	201,704		$	(616,909	)	$	101,270
Accrued liabilities	59,070			6,735			161,077			(21,955		)	204,927
Short-term borrowings and current maturities of long-term debt	(3,334		)	20,596			39,438			—			56,700
Total current liabilities	397,078			202,464			402,219			(638,864		)	362,897
Long-term debt, less current maturities	843,819			276,186			309,829			—			1,429,834
Intercompany notes payable	132,740			370,407			41,001			(544,148		)	—
Accrued pension liabilities	—			—			37,034			—			37,034
Other liabilities and deferred credits	14,078			7,924			14,950			—			36,952
Deferred taxes	77,373			27,794			10,025			—			115,192
Stockholders’ investment:
Common stock	382			4,996			131,317			(136,313		)	382
Additional paid-in-capital	852,565			29,387			284,048			(313,435		)	852,565
Retained earnings	793,783			838,727			478,661			(1,317,388		)	793,783
Accumulated other comprehensive income (loss)	78,306			1,380			363,484			(729,264		)	(286,094		)
Treasury shares	(184,796		)	—			—			—			(184,796		)
Total Bristow Group stockholders’ investment	1,540,240			874,490			1,257,510			(2,496,400		)	1,175,840
Noncontrolling interests	1,358			—			5,895			—			7,253
Total stockholders’ investment	1,541,598			874,490			1,263,405			(2,496,400		)	1,183,093
Total liabilities and stockholders’ investment	$	3,006,686		$	1,759,265		$	2,078,463		$	(3,679,412	)	$	3,165,002

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months Ended September 30, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(35,375	)	$	14,041		$	(5,568	)	$	—	$	(26,902	)
Cash flows from investing activities:
Capital expenditures	(1,536		)	(2,499		)	(13,267		)	—		(17,302		)
Proceeds from asset dispositions	—			7,528			934			—		8,462
Net cash provided by (used in) investing activities	(1,536		)	5,029			(12,333		)	—		(8,840		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			387			—		387
Debt issuance costs	(597		)	(32		)	(1,925		)	—		(2,554		)
Repayment of debt	(8,841		)	(10,505		)	(10,624		)	—		(29,970		)
Dividends paid	162,941			1,649			(164,590		)	—		—
Increases (decreases) in cash related to intercompany advances and debt	(158,992		)	(17,955		)	176,947			—		—
Partial prepayment of put/call obligation	(27		)	—			—			—		(27		)
Dividends paid to noncontrolling interest	—			—			(580		)	—		(580		)
Issuance of common stock	2,830			—			—			—		2,830
Repurchases for tax withholdings on vesting of equity awards	(1,504		)	—			—			—		(1,504		)
Net cash provided by (used in) financing activities	(4,190		)	(26,843		)	(385		)	—		(31,418		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(5,272		)	—		(5,272		)
Net decrease in cash and cash equivalents	(41,101		)	(7,773		)	(23,558		)	—		(72,432		)
Cash and cash equivalents at beginning of period	277,176			8,904			94,143			—		380,223
Cash and cash equivalents at end of period	$	236,075		$	1,131		$	70,585		$	—	$	307,791

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months Ended September 30, 2017

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(78,756	)	$	32,581		$	10,841		$	—		$	(35,334	)
Cash flows from investing activities:
Capital expenditures	(6,306		)	(5,814		)	(89,677		)	77,480			(24,317		)
Proceeds from asset dispositions	—			80,210			39,514			(77,480		)	42,244
Net cash provided by (used in) investing activities	(6,306		)	74,396			(50,163		)	—			17,927
Cash flows from financing activities:
Proceeds from borrowings	107,800			—			230,218			—			338,018
Debt issuance costs	—			(552		)	(6,143		)	—			(6,695		)
Repayment of debt	(285,946		)	(9,073		)	(23,111		)	—			(318,130		)
Dividends paid	110,637			—			(113,102		)	—			(2,465		)
Increases (decreases) in cash related to intercompany advances and debt	150,351			(96,880		)	(53,471		)	—			—
Partial prepayment of put/call obligation	(23		)	—			—			—			(23		)
Repurchases for tax withholdings on vesting of equity awards	(548		)	—			—			—			(548		)
Net cash provided by (used in) financing activities	82,271			(106,505		)	34,391			—			10,157
Effect of exchange rate changes on cash and cash equivalents	—			—			7,937			—			7,937
Net increase (decrease) in cash and cash equivalents	(2,791		)	472			3,006			—			687
Cash and cash equivalents at beginning of period	3,382			299			92,975			—			96,656
Cash and cash equivalents at end of period	$	591		$	771		$	95,981		$	—		$	97,343