BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Loss on impairment includes the following (in thousands):



	Three Months Ended December 31,				Nine Months Ended December 31,
	2018		2017		2018		2017
Impairment of inventories	$	—	$	—	$	9,276	$	1,192
Impairment of property and equipment⁽¹⁾	—		—		104,939		—
Impairment of intangible assets	—		—		3,005		—
	$	—	$	—	$	117,220	$	1,192

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⁽¹⁾	Includes impairment of $87.5 million for H225 aircraft and $17.5 million for Eastern Airways International Limited (“Eastern Airways”) aircraft and equipment.

Schedule of foreign exchange rates

The value of the Brazilian real has fluctuated relative to the U.S. dollar as indicated in the following table:



	Three Months Ended December 31,		Nine Months Ended December 31,
	2018	2017	2018	2017
One Brazilian real into U.S. dollars
High	0.2726	0.3198	0.3020	0.3244
Average	0.2628	0.3076	0.2647	0.3117
Low	0.2482	0.3004	0.2390	0.2995
At period-end	0.2580	0.3015	0.2580	0.3015

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Source: FactSet

The value of these currencies has fluctuated relative to the U.S. dollar as indicated in the following table:



	Three Months Ended December 31,		Nine Months Ended December 31,
	2018	2017	2018	2017
One British pound sterling into U.S. dollars
High	1.32	1.35	1.43	1.36
Average	1.29	1.33	1.32	1.31
Low	1.25	1.31	1.25	1.24
At period-end	1.27	1.35	1.27	1.35
One euro into U.S. dollars
High	1.16	1.20	1.24	1.20
Average	1.14	1.18	1.17	1.15
Low	1.13	1.16	1.13	1.06
At period-end	1.14	1.20	1.14	1.20
One Australian dollar into U.S. dollars
High	0.74	0.79	0.78	0.81
Average	0.72	0.77	0.74	0.77
Low	0.70	0.75	0.70	0.74
At period-end	0.70	0.78	0.70	0.78
One Norwegian kroner into U.S. dollars
High	0.1227	0.1269	0.1290	0.1294
Average	0.1183	0.1225	0.1215	0.1219
Low	0.1136	0.1193	0.1136	0.1152
At period-end	0.1155	0.1223	0.1155	0.1223
One Nigerian naira into U.S. dollars
High	0.0028	0.0028	0.0028	0.0033
Average	0.0027	0.0028	0.0028	0.0030
Low	0.0027	0.0028	0.0027	0.0027
At period-end	0.0028	0.0028	0.0028	0.0028

_____________

Source: FactSet

Schedule of foreign exchange impact

We estimate that the fluctuation of currencies versus the same period in the prior fiscal year had the following effect on our financial condition and results of operations (in thousands):



	Three Months Ended December 31, 2018			Nine Months Ended December 31, 2018
Revenue	$	(7,844	)	$	(2,652	)
Operating expense	10,452			10,178
Earnings (losses) from unconsolidated affiliates, net	555			(2,163		)
Non-operating expense	(3,153		)	(9,335		)
Loss before provision for income taxes	10			(3,972		)
Benefit for income taxes	144			1,338
Net loss	154			(2,634		)
Cumulative translation adjustment	(6,514		)	(43,685		)
Total stockholders’ investment	$	(6,360	)	$	(46,319	)

Schedule of interest income and interest expense

During the three and nine months ended December 31, 2018 and 2017, interest expense, net consisted of the following (in thousands):



	Three Months Ended December 31,						Nine Months Ended December 31,
	2018			2017			2018			2017
Interest income	$	2,269		$	144		$	3,677		$	512
Interest expense	(29,382		)	(19,237		)	(84,367		)	(54,189		)
Interest expense, net	$	(27,113	)	$	(19,093	)	$	(80,690	)	$	(53,677	)

Schedule of goodwill

Goodwill of $18.3 million and $19.9 million as of December 31 and March 31, 2018, respectively, related to our Asia Pacific reporting unit was as follows (in thousands):



March 31, 2018	$	19,907
Foreign currency translation	(1,636		)
December 31, 2018	$	18,271

Accumulated goodwill impairment of $50.9 million as of both December 31 and March 31, 2018 related to our reporting units were as follows (in thousands):



Europe Caspian	$	(33,883	)
Africa	(6,179		)
Americas	(576		)
Corporate and other	(10,223		)
Total accumulated goodwill impairment	$	(50,861	)

Schedule of other intangible assets

Intangible assets by type were as follows (in thousands):



	Customer relationships			Trade name and trademarks			Internally developed software			Licenses			Total

	Gross Carrying Amount
March 31, 2018	$	12,777		$	4,878		$	1,107		$	755		$	19,517
Foreign currency translation	(213		)	(263		)	(13		)	(2		)	(491		)
December 31, 2018	$	12,564		$	4,615		$	1,094		$	753		$	19,026

	Accumulated Amortization
March 31, 2018	$	(11,372	)	$	(1,213	)	$	(915	)	$	(719	)	$	(14,219	)
Impairments	—			(2,933		)	(72		)	—			(3,005		)
Amortization expense	(89		)	(142		)	(107		)	(34		)	(372		)
December 31, 2018	$	(11,461	)	$	(4,288	)	$	(1,094	)	$	(753	)	$	(17,596	)

Weighted average remaining contractual life, in years	7.0			*			0.0			0.0			7.0

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*	Trade name and trademarks relating to Airnorth were determined to have indefinite useful lives and therefore were not amortized, but instead are tested for impairment on an annual basis.

Schedule of other intangible assets, future amortization expense

Future amortization expense of intangible assets for each of the years ending March 31 is as follows (in thousands):



2019	$	39
2020	157
2021	157
2022	157
2023	157
Thereafter	436
	$	1,103

Schedule of capital expenditures

During the three and nine months ended December 31, 2018 and 2017, we took delivery of aircraft and made capital expenditures as follows:



	Three Months Ended December 31,				Nine Months Ended December 31,
	2018		2017		2018		2017
	(In thousands, except for number of aircraft)
Number of aircraft delivered:
Medium ⁽¹⁾	1		—		1		5
Total aircraft	1		—		1		5
Capital expenditures (in thousands):
Aircraft and equipment ⁽¹⁾⁽²⁾	$	15,839	$	10,311	$	28,570	$	26,800
Land and buildings	570		1,813		5,141		9,641
Total capital expenditures	$	16,409	$	12,124	$	33,711	$	36,441

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⁽¹⁾	During the three and nine months ended December 31, 2018, we purchased an aircraft that was not on order that was previously leased.


⁽²⁾	During the nine months ended December 31, 2017, we spent $2.3 million on progress payments for aircraft to be delivered in future periods. During the three months ended December 31, 2017 and the three and nine months ended December 31, 2018, we made no progress payments for aircraft to be delivered in future periods.

Schedule of aircraft sales and impairments

The following table presents details on the aircraft sold or disposed of and impairment charges on assets held for sale and property and equipment during the three and nine months ended December 31, 2018 and 2017:



	Three Months Ended December 31,				Nine Months Ended December 31,
	2018		2017		2018		2017

	(In thousands, except for number of aircraft)
Number of aircraft sold or disposed of	—		5		3		11
Proceeds from sale or disposal of assets	$	631	$	6,303	$	9,093	$	48,547
Loss from sale or disposal of assets ⁽¹⁾	$	694	$	3,031	$	3,665	$	1,111

Number of held for sale aircraft impaired	2		1		2		5
Impairment charges on assets held for sale ⁽¹⁾⁽²⁾	$	1,350	$	1,560	$	1,350	$	11,307
Impairment charges on property and equipment ⁽³⁾	$	—	$	—	$	104,939	$	—
Contract termination costs⁽¹⁾⁽⁴⁾	$	13,971	$	—	$	13,971	$	—

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⁽¹⁾	Included in loss on disposal of assets on our condensed consolidated statements of operations.


⁽²⁾	Includes a $6.5 million impairment of the Bristow Academy disposal group for the nine months ended December 31, 2017.


⁽³⁾	Includes an $87.5 million impairment related to H225s and a $17.5 million impairment related to Eastern Airways assets for the nine months ended December 31, 2018, included in loss on impairment on our condensed consolidated statement of operations. See Loss on Impairment above for further details.


⁽⁴⁾	Includes $11.7 million of progress payments and $2.3 million of capitalized interest for an aircraft purchase contract that was terminated in December 2018. For further details, see Note 8.

Schedule of other accrued liabilities

Other accrued liabilities of $38.7 million and $66.0 million as of December 31 and March 31, 2018, respectively, includes the following:



	December 31, 2018		March 31, 2018

	(In thousands)
Accrued lease costs	$	9,028	$	11,708
Deferred OEM cost recovery	3,997		8,082
Eastern Airways overdraft liability ⁽¹⁾	—		8,989
Accrued property and equipment	490		4,874
Deferred gain on sale leasebacks	1,305		1,305
Other operating accruals	23,872		31,020
	$	38,692	$	65,978

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⁽¹⁾	Eastern Airways overdraft liability related to its revolving credit facility, which matured on December 31, 2018.