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

6 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of loss on impairment

Loss on impairment for the three and six months ended September 30, 2019 and 2018 includes the following (in thousands):

	Three and six months ended September 30, 2019		Three and six months ended September 30, 2018
Impairment of property and equipment (1)	$	42,022	$	104,939
Impairment of goodwill	17,504		—
Impairment of inventories	—		9,276
Impairment of investment in unconsolidated affiliates	2,575		—
Impairment of intangible assets	—		3,005
	$	62,101	$	117,220

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⁽¹⁾  Includes impairment of $42.0 million for H225 aircraft for the three and six months ended September 30, 2019. Includes impairment of $87.5 million for H225 aircraft and $17.5 million for Eastern Airways International Limited (“Eastern Airways”) aircraft and equipment for the three and six months ended September 30, 2018.

Schedule of foreign exchange rates

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

	Three Months Ended  September 30,		Six Months Ended  September 30,
	2019	2018	2019	2018
One British pound sterling into U.S. dollars
High	1.27	1.33	1.32	1.43
Average	1.23	1.30	1.26	1.33
Low	1.21	1.27	1.21	1.27
At period-end	1.23	1.30	1.23	1.30
One euro into U.S. dollars
High	1.13	1.18	1.14	1.24
Average	1.11	1.16	1.12	1.18
Low	1.09	1.13	1.09	1.13
At period-end	1.09	1.16	1.09	1.16
One Australian dollar into U.S. dollars
High	0.70	0.75	0.72	0.78
Average	0.69	0.73	0.69	0.74
Low	0.67	0.71	0.67	0.71
At period-end	0.67	0.72	0.67	0.72
One Norwegian kroner into U.S. dollars
High	0.1172	0.1249	0.1179	0.1290
Average	0.1129	0.1214	0.1143	0.1230
Low	0.1097	0.1179	0.1097	0.1179
At period-end	0.1101	0.1228	0.1101	0.1228
One Nigerian naira into U.S. dollars
High	0.0028	0.0028	0.0028	0.0028
Average	0.0028	0.0028	0.0028	0.0028
Low	0.0028	0.0027	0.0028	0.0027
At period-end	0.0028	0.0027	0.0028	0.0027

_____________ 

Source: FactSet

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

	Three Months Ended  September 30,		Six Months Ended  September 30,
	2019	2018	2019	2018
One Brazilian real into U.S. dollars
High	0.2675	0.2699	0.2675	0.3020
Average	0.2524	0.2537	0.2538	0.2657
Low	0.2393	0.2390	0.2393	0.2390
At period-end	0.2401	0.2504	0.2401	0.2504

_____________ 

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  September 30, 2019			Six Months Ended  September 30, 2019
Revenue	$	(11,361	)	$	(23,964	)
Operating expense	11,025			21,855
Earnings from unconsolidated affiliates, net of losses	(576		)	1,888
Other income (expense), net	(3,509		)	(3,411		)
Income before provision for income taxes	(4,421		)	(3,632		)
Provision for income taxes	1,041			415
Net income	(3,380		)	(3,217		)
Cumulative translation adjustment	(12,299		)	4,589
Total stockholders’ investment	$	(15,679	)	$	1,372

Schedule of interest income and interest expense

During the three and six months endedSeptember 30, 2019 and 2018, interest expense, net consisted of the following (in thousands):

	Three Months Ended  September 30,						Six Months Ended  September 30,
	2019			2018			2019			2018
Interest income	$	270		$	1,229		$	657		$	1,408
Interest expense	(22,715		)	(27,662		)	(49,423		)	(54,985		)
Interest expense, net	$	(22,445	)	$	(26,433	)	$	(48,766	)	$	(53,577	)

Schedule of cash, cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows.

	September 30,  2019		March 31,  2019
	(In thousands)
Reconciliation of cash, cash equivalents and restricted cash as shown in the statements of cash flows:
Cash and cash equivalents	$	153,885	$	178,055
Restricted cash	38,910		—
Total cash, cash equivalents and restricted cash	$	192,795	$	178,055

Schedule of goodwill

Goodwill related to our Asia Pacific reporting unit was as follows (in thousands):

March 31, 2019	$	18,436
Foreign currency translation	(932		)
Impairments	(17,504		)
September 30, 2019	$	—

Accumulated goodwill impairment of $68.4 million and $50.9 million as as of September 30 and March 31, 2019, respectively, related to our reporting units as follows (in thousands):

	Europe Caspian			Africa			Americas			Asia Pacific			Corporate and other			Total
March 31, 2019	$	(33,883	)	$	(6,179	)	$	(576	)	$	—		$	(10,223	)	$	(50,861	)
Impairments	—			—			—			(17,504		)	—			(17,504		)
September 30, 2019	$	(33,883	)	$	(6,179	)	$	(576	)	$	(17,504	)	$	(10,223	)	$	(68,365	)

Schedule of other intangible assets

The Airnorth acquisition included in our Asia Pacific region, resulted in intangible assets for customer relationships and trade name and trademarks. Intangible assets by type not fully amortized were as follows (in thousands):

	Customer relationships			Trade name and trademarks			Total
	Gross Carrying Amount
March 31, 2019	$	2,143		$	331		$	2,474
Foreign currency translation	(54		)	(16		)	(70		)
September 30, 2019	$	2,089		$	315		$	2,404
	Accumulated Amortization
March 31, 2019	$	(1,070	)	$	—		$	(1,070	)
Amortization expense	(75		)	—			(75		)
September 30, 2019	$	(1,145	)	$	—		$	(1,145	)
Weighted average remaining contractual life, in years	6.3			*			6.3

_____________ 

* 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):

2020	$	75
2021	150
2022	150
2023	150
2024	150
Thereafter	584
	$	1,259

Schedule of capital expenditures

During the three and six months endedSeptember 30, 2019 and 2018, we made capital expenditures as follows:

	Three Months Ended  September 30,				Six Months Ended  September 30,
	2019		2018		2019		2018
Capital expenditures (in thousands):
Aircraft and equipment	$	16,074	$	4,394	$	22,762	$	12,731
Land and buildings	2,437		4,013		3,188		4,571
Total capital expenditures	$	18,511	$	8,407	$	25,950	$	17,302

Schedule of aircraft sales and impairments

The following table presents details on the property and equipment sold or disposed of and impairments on property and equipment during the three and six months endedSeptember 30, 2019 and 2018:

	Three Months Ended  September 30,						Six Months Ended  September 30,
	2019			2018			2019			2018
	(In thousands, except for number of aircraft)
Number of aircraft sold or disposed of	1			—			3			3
Proceeds from sale or disposal of assets (1)	$	1,799		$	688		$	5,003		$	8,462
Loss from sale or disposal of assets (2)	$	(230	)	$	(1,293	)	$	(4,017	)	$	(2,971	)
Impairment charges on property and equipment (3)	$	42,022		$	104,939		$	42,022		$	104,939

_____________ 

⁽¹⁾  Includes proceeds received for sale of property and equipment (including aircraft) during each period.

⁽²⁾  Included in loss on disposal of assets on our condensed consolidated statements of operations. Includes gain (loss), net for sale or disposal of property and equipment (including aircraft) during each period.

⁽³⁾  Includes $42.0 million impairment related to the H225s for the three and six months ended September 30, 2019. Includes $87.5 million impairment related to H225s and $17.5 million related to Eastern Airways assets for the three and six months ended September 30, 2018, included in loss on impairment on our condensed consolidated statement of operations. See “—Loss on Impairment” above for further details.

Schedule of other accrued liabilities

Other accrued liabilities of $58.4 million and $38.7 million as of September 30 and March 31, 2019, respectively, includes the following:

	September 30,  2019		March 31,  2019
	(In thousands)
Accrued lease costs	$	1,291	$	6,017
Deferred OEM cost recovery	—		3,997
Backstop Commitment Agreement (1)	19,250		—
Accrued legal and professional fees	17,446		3,070
Accrued property and equipment	860		997
Deferred gain on sale leasebacks	789		1,305
Other operating accruals	18,798		14,437
Eastern Airways other accrued liabilities(2)	—		8,856
	$	58,434	$	38,679

_____________ 

⁽¹⁾  Estimated fees related to the Backstop Commitment Agreement (the “Backstop Commitment Agreement”). See Note 5 for further details.

⁽²⁾  Eastern Airways was sold on May 10, 2019.

Schedule of Sale Of Business, By Business [Table Text Block]

Gain (loss) on sale of subsidiaries includes the following:

	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
	(in thousands)
Sale of Eastern Airways	$	—	$	(46,852	)
Sale of Aviashelf and Bristow Helicopters Leasing Limited	420		(9,031		)
	$	420	$	(55,883	)