SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

9 Months Ended

Dec. 31, 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 December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	(9	)	$	37,253		$	294,085		$	—		$	331,329
Intercompany revenue	—			26,844			—			(26,844		)	—
	(9		)	64,097			294,085			(26,844		)	331,329
Operating expense:
Direct cost and reimbursable expense	14			40,188			235,699			—			275,901
Intercompany expenses	5,399			—			21,445			(26,844		)	—
Depreciation and amortization	3,087			19,175			8,353			—			30,615
General and administrative	16,004			4,174			20,564			—			40,742
	24,504			63,537			286,061			(26,844		)	347,258
Loss on disposal of assets	(512		)	(15,321		)	(182		)	—			(16,015		)
Earnings (losses) from unconsolidated affiliates, net	(22,023		)	—			780			22,023			780
Operating income (loss)	(47,048		)	(14,761		)	8,622			22,023			(31,164		)
Interest expense, net	(16,997		)	(5,807		)	(4,309		)	—			(27,113		)
Other income (expense), net	122			485			(4,267		)	—			(3,660		)
Income (loss) before (provision) benefit for income taxes	(63,923		)	(20,083		)	46			22,023			(61,937		)
Allocation of consolidated income taxes	(22,006		)	(463		)	(1,295		)	—			(23,764		)
Net loss	(85,929		)	(20,546		)	(1,249		)	22,023			(85,701		)
Net income attributable to noncontrolling interests	(15		)	—			(228		)	—			(243		)
Net loss attributable to Bristow Group	$	(85,944	)	$	(20,546	)	$	(1,477	)	$	22,023		$	(85,944	)

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			236,998			—			286,619
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			304,666			(28,608		)	361,667
Gain (loss) on disposal of assets	(1,757		)	(3,657		)	823			—			(4,591		)
Earnings (losses) from unconsolidated affiliates, net	(11,503		)	—			1,996			11,503			1,996
Operating income (loss)	(30,138		)	3,785			11,323			11,503			(3,527		)
Interest expense, net	(9,480		)	(5,008		)	(4,605		)	—			(19,093		)
Other income (expense), net	(16		)	227			(947		)	—			(736		)
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

Nine Months Ended December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Third party revenue	$	81		$	108,186		$	941,613		$	—		$	1,049,880
Intercompany revenue	—			80,857			—			(80,857		)	—
	81			189,043			941,613			(80,857		)	1,049,880
Operating expense:
Direct cost and reimbursable expense	50			123,045			741,172			—			864,267
Intercompany expenses	20,706			—			60,151			(80,857		)	—
Depreciation and amortization	9,245			55,130			27,670			—			92,045
General and administrative	41,699			13,097			64,886			—			119,682
	71,700			191,272			893,879			(80,857		)	1,075,994
Loss on impairment	—			(87,474		)	(29,746		)	—			(117,220		)
Loss on disposal of assets	(1,318		)	(16,799		)	(869		)	—			(18,986		)
Earnings (losses) from unconsolidated affiliates, net	(153,319		)	—			(2,333		)	153,319			(2,333		)
Operating income (loss)	(226,256		)	(106,502		)	14,786			153,319			(164,653		)
Interest expense, net	(48,940		)	(18,552		)	(13,198		)	—			(80,690		)
Other income (expense), net	306			1,802			(12,922		)	—			(10,814		)
Loss before (provision) benefit for income taxes	(274,890		)	(123,252		)	(11,334		)	153,319			(256,157		)
Allocation of consolidated income taxes	12,691			(746		)	(17,203		)	—			(5,258		)
Net loss	(262,199		)	(123,998		)	(28,537		)	153,319			(261,415		)
Net income attributable to noncontrolling interests	(43		)	—			(784		)	—			(827		)
Net loss attributable to Bristow Group	$	(262,242	)	$	(123,998	)	$	(29,321	)	$	153,319		$	(262,242	)

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:
Third party 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			733,402			—			884,581
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			942,721			(92,518		)	1,117,395
Loss on impairment	—			(1,192		)	—			—			(1,192		)
Gain (loss) on disposal of assets	(1,757		)	7,356			(18,017		)	—			(12,418		)
Earnings (losses) from unconsolidated affiliates, net	(22,506		)	—			3,394			22,506			3,394
Operating income (loss)	(87,330		)	34,849			(11,116		)	22,506			(41,091		)
Interest expense, net	(29,174		)	(16,811		)	(7,692		)	—			(53,677		)
Other income (expense), net	(142		)	(529		)	906			—			235
Income (loss) before provision 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 Comprehensive Income (Loss)

Three Months Ended December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net loss	$	(85,929	)	$	(20,546	)	$	(1,249	)	$	22,023	$	(85,701	)
Other comprehensive loss:
Currency translation adjustments	—			(372		)	(9,146		)	3,056		(6,462		)
Pension liability adjustment	—			—			(2,410		)	—		(2,410		)
Unrealized loss on cash flow hedges	—			—			(5		)	—		(5		)
Total comprehensive loss	(85,929		)	(20,918		)	(12,810		)	25,079		(94,578		)
Net income attributable to noncontrolling interests	(15		)	—			(228		)	—		(243		)
Currency translation adjustments attributable to noncontrolling interests	—			—			(52		)	—		(52		)
Total comprehensive income attributable to noncontrolling interests	(15		)	—			(280		)	—		(295		)
Total comprehensive loss attributable to Bristow Group	$	(85,944	)	$	(20,918	)	$	(13,090	)	$	25,079	$	(94,873	)

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 income (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)

Nine Months Ended December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net loss	$	(262,199	)	$	(123,998	)	$	(28,537	)	$	153,319	$	(261,415	)
Other comprehensive loss:
Currency translation adjustments	—			(1,417		)	(105,254		)	63,209		(43,462		)
Pension liability adjustment	—			—			(2,410		)	—		(2,410		)
Unrealized gain on cash flow hedges	—			—			1,245			—		1,245
Total comprehensive loss	(262,199		)	(125,415		)	(134,956		)	216,528		(306,042		)
Net income attributable to noncontrolling interests	(43		)	—			(784		)	—		(827		)
Currency translation adjustments attributable to noncontrolling interests	—			—			(223		)	—		(223		)
Total comprehensive income attributable to noncontrolling interests	(43		)	—			(1,007		)	—		(1,050		)
Total comprehensive loss attributable to Bristow Group	$	(262,242	)	$	(125,415	)	$	(135,963	)	$	216,528	$	(307,092	)

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 Balance Sheet

As of December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	155,167		$	—		$	77,660		$	(1,501	)	$	231,326
Accounts receivable	506,745			542,145			293,490			(1,124,553		)	217,827
Inventories	—			34,658			80,596			—			115,254
Assets held for sale	—			18,506			3,979			—			22,485
Prepaid expenses and other current assets	4,520			2,674			41,452			—			48,646
Total current assets	666,432			597,983			497,177			(1,126,054		)	635,538
Intercompany investment	1,877,133			104,436			128,633			(2,110,202		)	—
Investment in unconsolidated affiliates	—			—			113,974			—			113,974
Intercompany notes receivable	118,003			9,229			147,056			(274,288		)	—
Property and equipment—at cost:
Land and buildings	4,806			58,204			177,191			—			240,201
Aircraft and equipment	155,628			1,311,241			1,012,674			—			2,479,543
	160,434			1,369,445			1,189,865			—			2,719,744
Less: Accumulated depreciation and amortization	(46,012		)	(403,430		)	(422,759		)	—			(872,201		)
	114,422			966,015			767,106			—			1,847,543
Goodwill	—			—			18,271			—			18,271
Other assets	4,786			2,727			108,905			—			116,418
Total assets	$	2,780,776		$	1,680,390		$	1,781,122		$	(3,510,544	)	$	2,731,744
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	413,795		$	476,510		$	317,229		$	(1,115,618	)	$	91,916
Accrued liabilities	56,645			(7,232		)	116,352			(9,300		)	156,465
Short-term borrowings and current maturities of long-term debt	847,023			271,279			302,748			—			1,421,050
Total current liabilities	1,317,463			740,557			736,329			(1,124,918		)	1,669,431
Long-term debt, less current maturities	—			—			9,174			—			9,174
Intercompany notes payable	103,449			154,527			17,415			(275,391		)	—
Accrued pension liabilities	—			—			28,036			—			28,036
Other liabilities and deferred credits	10,732			8,729			9,112			—			28,573
Deferred taxes	68,416			25,853			24,788			—			119,057
Stockholders’ investment:
Common stock	385			4,996			131,317			(136,313		)	385
Additional paid-in-capital	860,745			29,387			284,048			(313,435		)	860,745
Retained earnings	524,846			716,378			278,054			(994,432		)	524,846
Accumulated other comprehensive income (loss)	78,306			(37		)	256,842			(666,055		)	(330,944		)
Treasury shares	(184,796		)	—			—			—			(184,796		)
Total Bristow Group stockholders’ investment	1,279,486			750,724			950,261			(2,110,235		)	870,236
Noncontrolling interests	1,230			—			6,007			—			7,237
Total stockholders’ investment	1,280,716			750,724			956,268			(2,110,235		)	877,473
Total liabilities and stockholders’ investment	$	2,780,776		$	1,680,390		$	1,781,122		$	(3,510,544	)	$	2,731,744

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	2,199,505			104,435			141,683			(2,445,623		)	—
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	$	3,001,737		$	1,759,265		$	2,078,463		$	(3,674,463	)	$	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			166,026			(21,955		)	209,876
Short-term borrowings and current maturities of long-term debt	840,485			296,782			338,171			—			1,475,438
Total current liabilities	1,240,897			478,650			705,901			(638,864		)	1,786,584
Long-term debt, less current maturities	—			—			11,096			—			11,096
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	788,834			838,727			473,712			(1,312,439		)	788,834
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	1,535,291			874,490			1,252,561			(2,491,451		)	1,170,891
Noncontrolling interests	1,358			—			5,895			—			7,253
Total stockholders’ investment	1,536,649			874,490			1,258,456			(2,491,451		)	1,178,144
Total liabilities and stockholders’ investment	$	3,001,737		$	1,759,265		$	2,078,463		$	(3,674,463	)	$	3,165,002

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended December 31, 2018

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(93,365	)	$	23,819		$	2,145		$	(1,501	)	$	(68,902	)
Cash flows from investing activities:
Capital expenditures	(2,987		)	(12,827		)	(17,897		)	—			(33,711		)
Proceeds from asset dispositions	—			7,529			1,564			—			9,093
Net cash used in investing activities	(2,987		)	(5,298		)	(16,333		)	—			(24,618		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			387			—			387
Debt issuance costs	(642		)	(32		)	(1,925		)	—			(2,599		)
Repayment of debt	—			(15,709		)	(33,407		)	—			(49,116		)
Dividends paid	162,941			1,649			(164,590		)	—			—
Increases (decreases) in cash related to intercompany advances and debt	(189,241		)	(13,333		)	202,574			—			—
Partial prepayment of put/call obligation	(40		)	—			—			—			(40		)
Dividends paid to noncontrolling interest	—			—			(580		)	—			(580		)
Issuance of common stock	2,830			—			—			—			2,830
Repurchases for tax withholdings on vesting of equity awards	(1,505		)	—			—			—			(1,505		)
Net cash provided by (used in) financing activities	(25,657		)	(27,425		)	2,459			—			(50,623		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(4,754		)	—			(4,754		)
Net decrease in cash and cash equivalents	(122,009		)	(8,904		)	(16,483		)	(1,501		)	(148,897		)
Cash and cash equivalents at beginning of period	277,176			8,904			94,143			—			380,223
Cash and cash equivalents at end of period	$	155,167		$	—		$	77,660		$	(1,501	)	$	231,326

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