Bristow Group Inc. Annual Report 2017

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FY2017 Annual Report · Bristow Group Inc.

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2017 ANNUAL
REPORT

operational and financial results. We continue to seek a

way forward for a safe return to service of our H225s and

continue to explore all options in the optimization of our

global aircraft portfolio for our clients and shareholders.

We recognize the urgent need for further action as we

progress in fiscal year 2018. Although we expect some of the

aircraft that were off-contract in fiscal year 2017 to get back to

work in fiscal year 2018, we anticipate another down year in

our clients’ offshore spend. The fiscal year 2017 Action Plan

included successful actions that allowed us to survive and

maintain our leadership position, and many of these actions

will be further applied in the upcoming year, particularly

around safety, reliability and efficiency. We successfully

made a number of key moves in fiscal year 2017 to expand

covenant headroom and improve our liquidity runway for

fiscal year 2018 and beyond, and we must use this runway to

improve the business and win more revenue.

In fiscal year 2018, we are determined to significantly

reduce costs, recover costs from our OEMs, and optimize

around our core businesses, including fleet rationalization

by both geography and line of service. These moves are

intended to make us more safe, reliable, and efficient while

providing us with additional liquidity and financial flexibility.

The past year has been a particularly difficult one for all of

Bristow’s stakeholders. It has been a year of uncertainty – for

our industry, our company, and our future. I am extremely

proud of the way that our employees performed in the face

of these challenges and this uncertainty, and the way that

they remained focused on safety and our passengers.

On behalf of our employees around the globe, thank you for

your continued support of Bristow, particularly during these

MY FELLOW SHAREHOLDERS:

In the midst of unprecedented challenges for our industry,

Bristow has a number of successes to celebrate. Bristow

improved over the previous year in areas critical to our

core values using a fiscal year 2017 Action Plan that (1)

achieved safety improvement, (2) reduced our operating and

capital expenditures, and (3) refinanced bank debt while

increasing liquidity. However, in terms of financial results,

these successes were not enough to avoid a fiscal year

2017 operating revenue decrease of 17% from fiscal year

2016 and an adjusted net loss of $74.5 million, or $2.13

per share, for fiscal year 2017. This is not an acceptable

financial result for either our management team or our

Board of Directors.

Our safety improvement efforts paid off in fiscal year 2017

with overall improvement in our air accident and injury

rate relative to fiscal year 2016. Our recordable injuries

declined most notably in our fixed-wing operations where

injuries were reduced by 50%. Two regions were particularly

impressive in terms of this improvement: Africa, where our

difficult times.

rotary and fixed-wing operations were completely Target Zero

for 10 months, and Asia Pacific, where our rotary operations

were fully Target Zero for the full fiscal year.

Be safe,

Our improvement in safety is particularly notable given the

grounding of the H225, which is now in its second year. Our

global teams responded to the grounding in fiscal year 2017

by proactively mobilizing alternative assets and personnel

Jonathan E. Baliff

to safely meet our clients’ needs. However, the continued

President and Chief Executive Officer

grounding of the H225 has had a negative impact on our

Bristow Group Inc.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended March 31, 2017
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
Commission File Number 001-31617
Bristow Group Inc.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

2103 City West Blvd.,
4thFloor
Houston, Texas
(Address of principal executive offices)

72-0679819
(IRS Employer
Identification Number)

77042
(Zip Code)

Registrant’s telephone number, including area code: (713) 267-7600

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class
Common Stock ($.01 par value)

Name of each exchange on which registered
New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Securities registered pursuant to Section 12(g) of the Act: NONE

YES

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

YES

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

YES

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files).

YES

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer
(Do not check if a
smaller reporting
company)

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES

The aggregate market value of the voting Common Stock held by non-affiliates of the registrant, based upon the closing price on the

New York Stock Exchange, as of September 30, 2016 was $449,793,692.

The number of shares outstanding of the registrant’s Common Stock as of May 19, 2017 was 35,217,652.

DOCUMENTS INCORPORATED BY REFERENCE

Certain portions of the Registrant’s Definitive Proxy Statement, to be filed with the Securities and Exchange Commission pursuant to

Regulation 14A not later than 120 days after the close of the Registrant’s fiscal year, are incorporated by reference under Part III of this Form
10-K.

BRISTOW GROUP INC.
INDEX — ANNUAL REPORT (FORM 10-K)

Introduction ...........................................................................................................................................................

Forward-Looking Statements................................................................................................................................

PART I

Item 1.

Business ................................................................................................................................................................

Item 1A. Risk Factors...........................................................................................................................................................

Item 1B. Unresolved Staff Comments .................................................................................................................................

Item 2.

Properties ..............................................................................................................................................................

Item 3.

Legal Proceedings .................................................................................................................................................

Item 4. Mine Safety Disclosures .......................................................................................................................................

PART II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity

Securities ...............................................................................................................................................................

Item 6.

Selected Financial Data.........................................................................................................................................

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ...............................

Item 7A. Quantitative and Qualitative Disclosures about Market Risk ...............................................................................

Item 8.

Consolidated Financial Statements and Supplementary Data...............................................................................

Item 9.

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure ...............................

Item 9A. Controls and Procedures .......................................................................................................................................

Item 9B. Other Information .................................................................................................................................................

PART III

Item 10. Directors, Executive Officers and Corporate Governance....................................................................................

Item 11. Executive Compensation.......................................................................................................................................

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.............

Item 13. Certain Relationships and Related Transactions, and Director Independence......................................................
Item 14. Principal Accounting Fees and Services ...............................................................................................................

PART IV

Item 15. Exhibits, Financial Statement Schedules ..............................................................................................................

Item 16.. Form 10-K Summary ............................................................................................................................................

Signatures...............................................................................................................................................................................

Page

138

140

141

144

145

BRISTOW GROUP INC.
ANNUAL REPORT (FORM 10-K)

INTRODUCTION

This Annual Report on Form 10-K is filed by Bristow Group Inc., which we refer to as Bristow Group or the Company.

We use the pronouns “we”, “our” and “us” and the term “Bristow Group” to refer collectively to Bristow Group and its
consolidated subsidiaries and affiliates, unless the context indicates otherwise. We also own interests in other entities that we do
not consolidate for financial reporting purposes, which we refer to as unconsolidated affiliates, unless the context indicates
otherwise. Bristow Group, Bristow Aviation Holdings Limited (“Bristow Aviation”), our consolidated subsidiaries and affiliates,
and the unconsolidated affiliates are each separate corporations, limited liability companies or other legal entities, and our use of
the terms “we”, “our” and “us” does not suggest that we have abandoned their separate identities or the legal protections given to
them as separate legal entities. Our fiscal year ends March 31, and we refer to fiscal years based on the end of such period.
Therefore, the fiscal year ended March 31, 2017 is referred to as “fiscal year 2017”.

We are a Delaware corporation incorporated in 1969. Our executive offices are located at 2103 City West Blvd., 4th Floor,

Houston, Texas 77042. Our telephone number is (713) 267-7600.

Our website address is http://www.bristowgroup.com. We make our website content available for information purposes only.
It should not be relied upon for investment purposes, nor is it incorporated by reference in this Annual Report. All of our periodic
report filings with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”) for fiscal periods ended on or after December 15, 2002 are made available, free of
charge, through our website, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K, and any amendments to these reports. These reports are available through our website as soon as reasonably practicable
after we electronically file or furnish such material to the SEC. In addition, the public may read and copy any materials we file
with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 or on the SEC’s Internet website
located at http://www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the
SEC at 1-800-SEC-0330.

FORWARD-LOOKING STATEMENTS

This Annual Report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Exchange Act. Forward-looking statements are statements about our future business, strategy, operations,
capabilities and results; financial projections; plans and objectives of our management; expected actions by us and by third parties,
including our clients, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be
identified by the use of words such as “believes”, “belief”, “expects”, “plans”, “anticipates”, “intends”, “projects”, “estimates”,
“may”, “might”, “would”, “could” or other similar words; however, all statements in this Annual Report, other than statements of
historical fact or historical financial results, are forward-looking statements.

Our forward-looking statements reflect our views and assumptions on the date we are filing this Annual Report regarding
future events and operating performance. We believe they are reasonable, but they involve known and unknown risks, uncertainties
and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future
results, performance or achievements expressed or implied by the forward-looking statements. Accordingly, you should not put
undue reliance on any forward-looking statements.

You should consider the following key factors when evaluating these forward-looking statements:

•

the possibility of political instability, war or acts of terrorism in any of the countries where we operate;

fluctuations in worldwide prices of and demand for oil and natural gas;

fluctuations in levels of oil and natural gas exploration, development and production activities;

fluctuations in the demand for our services;

the existence of competitors;

the existence of operating risks inherent in our business, including the possibility of declining safety performance;

the possibility of changes in tax and other laws and regulations;

the possibility that the major oil companies do not continue to expand internationally and offshore;

•

the possibility of significant changes in foreign exchange rates and controls, including as a result of Brexit;

general economic conditions including the capital and credit markets;

the possibility that we may impair our long-lived assets, including goodwill, property and equipment and investments
in unconsolidated affiliates;

the possibility that we may be unable to defer payment on certain aircraft into future fiscal years or take delivery of
certain aircraft later than initially scheduled;

the possibility that we may be unable to acquire additional aircraft due to limited availability or unable to exercise
aircraft purchase options;

the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket;

the possibility that we or our suppliers may be unable to deliver new aircraft on time or on budget;

the possibility that we may be unable to obtain financing, draw on our credit facilities or enter into definitive
agreements with respect to financings on terms that are favorable to us;

the possibility that we may lack sufficient liquidity or access to additional financing sources to continue to pay a
quarterly dividend or finance contractual commitments;

the possibility that we may be unable to maintain compliance with debt covenants;

the possibility that segments of our fleet may be grounded for extended periods of time or indefinitely;

the possibility that we may be unable to re-deploy our aircraft to regions with greater demand;

the possibility that reductions in spending on aviation services by governmental agencies could lead to modifications
of search and rescue (“SAR”) contract terms or delays in receiving payments;

the possibility that clients may reject our aircraft due to late delivery or unacceptable aircraft design or operability;
and

the possibility that we do not achieve the anticipated benefits from the addition of new-technology aircraft to our
fleet.

The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe
are important factors to consider. For a more detailed description of risk factors, please see the risks and uncertainties described
under Item 1A. “Risk Factors” included elsewhere in this Annual Report.

All forward-looking statements in this Annual Report are qualified by these cautionary statements and are only made as of
the date of this Annual Report. We do not undertake any obligation, other than as required by law, to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.

PART I

Item 1. Business

Overview

We are the leading global industrial aviation services provider based on the number of aircraft operated. We have a long
history in industrial aviation services through Bristow Helicopters Ltd. (“Bristow Helicopters”) and Offshore Logistics, Inc., which
were founded in 1955 and 1969, respectively. We have major transportation operations in the North Sea, Nigeria and the U.S. Gulf
of Mexico, and in most of the other major offshore energy producing regions of the world, including Australia, Brazil, Canada,
Russia and Trinidad. We provide private sector SAR services in Australia, Canada, Nigeria, Norway, Russia, Trinidad and the
United States. We provide public sector SAR services in the U.K. on behalf of the Maritime & Coastguard Agency. We also provide
regional fixed wing scheduled and charter services in the U.K., Nigeria and Australia through our consolidated affiliates, Eastern
Airways International Limited (“Eastern Airways”) and Capiteq Limited, operating under the name of Airnorth, respectively.
These operations support our primary industrial aviation services operations in those markets, creating a more integrated logistics
solution for our clients.

In fiscal year 2013, Bristow Helicopters was awarded a contract with the U.K. Department for Transport (the “DfT”) to
provide public sector SAR services for all of the U.K. (the “U.K. SAR contract”). The U.K. SAR contract has a phased-in transition
period that began in April 2015 and continues to July 2017 and a contract length of approximately ten years. We are currently
operational at ten bases as follows: Humberside and Inverness (April 2015), Caernarfon (July 2015), Lydd (August 2015), St.
Athan (October 2015), Prestwick and Newquay (January 2016), Lee-on-Solent (March 2017), and two previously awarded Gap
SAR bases of Sumburgh (June 2013) and Stornoway (July 2013). One Gap SAR base transitioned to the U.K. SAR contract on
March 31, 2017 and the remaining Gap SAR base is scheduled to transition to the U.K. SAR contract in July 2017.

During fiscal year 2017, we generated approximately 71% of our consolidated operating revenue from external clients from
oil and gas operations, approximately 15% from SAR operations and approximately 14% from fixed wing services that support
our global helicopter operations.

We conduct our business in one segment: Industrial Aviation Services. The Industrial Aviation Services segment operations

are conducted primarily through four regions:

• Europe Caspian,

• Africa,

• Americas, and

• Asia Pacific.

We primarily provide industrial aviation services to a broad base of major integrated, national and independent offshore
energy companies. Our clients charter our helicopters primarily to transport personnel between onshore bases and offshore
production platforms, drilling rigs and other installations. To a lesser extent, our clients also charter our helicopters to transport
time-sensitive equipment to these offshore locations. These clients’ operating expenditures in the production sector are the principal
source of our revenue, while their exploration and development capital expenditures provide a lesser portion of our revenue. The
clients for SAR services include both the oil and gas industry, where our revenue is primarily dependent on our clients’ operating
expenditures, and governmental agencies, where our revenue is dependent on a country’s desire to privatize SAR and enter into
long-term contracts.

Helicopters are generally classified as small (four to eight passenger capacity), medium (12 to 16 passenger capacity) and
large (18 to 25 passenger capacity), each of which serves a different transportation need of the offshore energy industry. Medium
and large helicopters, which can fly in a wider variety of operating conditions, over longer distances, at higher speeds and carry
larger payloads than small helicopters, are most commonly used for crew changes on large offshore production facilities and
drilling rigs. With these enhanced capabilities, medium and large helicopters have historically been preferred in international
markets, where the offshore facilities tend to be larger, the drilling locations tend to be more remote, located in harsh environments
and the onshore infrastructure tends to be more limited. Additionally, local governmental regulations in certain international
markets require us to operate twin-engine medium and large aircraft in those markets. Global demand for medium and large
helicopters is driven by drilling, development and production activity levels in deepwater locations throughout the world, as the
medium and large aircraft are able to travel to these deepwater locations. Small helicopters are generally used for shorter routes
and to reach production facilities that cannot accommodate medium and large helicopters. Our small helicopters operate primarily

over the shallow waters offshore in the U.S. Gulf of Mexico and Nigeria. We are able to deploy our aircraft to the regions with
the greatest demand, subject to the satisfaction of local governmental regulations. SAR operations utilize medium and large aircraft
that are specially configured to conduct these types of operations in environments around the world. The commercial aircraft in
our consolidated fleet are our primary source of revenue. To normalize the consolidated operating revenue of our commercial
helicopter fleet for the different revenue productivity and cost, we developed a common weighted factor that combines large,
medium and small commercial helicopters into a combined standardized number of revenue producing commercial aircraft
assets. We call this measure Large AirCraft Equivalent (“LACE”). Our commercial large, medium and small helicopters, including
owned and leased helicopters, are weighted as 100%, 50%, and 25%, respectively, to arrive at a single LACE number, which
excludes training aircraft, fixed wing aircraft, unconsolidated affiliate aircraft, aircraft held for sale and aircraft construction in
process. We divide our operating revenue from commercial contracts relating to LACE aircraft, which excludes operating revenue
from affiliates and reimbursable revenue, by LACE to develop a LACE rate, which is a standardized rate.

The SAR market is continuing to evolve and we believe further outsourcing of public SAR services to the private sector
will continue in the future, although the timing of these opportunities is uncertain. The clients for our SAR services include both
the oil and gas industry and governmental agencies. We are pursuing other public and oil and gas SAR opportunities for multiple
aircraft in various jurisdictions around the globe and other non-SAR government aircraft logistics opportunities.

Our business has traditionally been significantly dependent upon the level of offshore oil and gas exploration, development
and production activity. We have begun diversification with recent investments into other new business growth areas within the
industrial aviation services to lessen the cyclical effects of a downturn in any one industry or economy. There are also additional
markets for aviation services beyond the offshore energy industry and SAR, including air medical, agricultural support, corporate
transportation, firefighting, military, police, tourism and traffic monitoring. The existence of these alternative markets enables us
to better manage our helicopter fleet by providing potential purchasers for older aircraft and for our excess aircraft during times
of reduced demand in the offshore energy industry. As part of an ongoing process to rationalize and simplify our global fleet of
commercial helicopters, during fiscal year 2014 we implemented a plan to reduce the number of aircraft types in our fleet to eight
model types in approximately five years and six model types in approximately ten years. During fiscal year 2014, we completed
our exit from five model types, in fiscal year 2015 we completed our exit from four model types while adding two model types
and in fiscal year 2016 we completed our exit from two model types. During fiscal year 2017, we added one model type resulting
in 12 model types in our fleet as of March 31, 2017. As we modernize our fleet, the introduction of new technology aircraft types
and other operating or market conditions may temporarily slow fleet type reduction.

In addition to our primary Industrial Aviation Services operations, we also operate a training unit, Bristow Academy. See
“— Bristow Academy” below for further discussion of these operations. Additionally, we have fixed wing operations in the U.K.,
Nigeria and Australia that create a more integrated logistics solution for our global clients and further diversify our business.

Most countries in which we operate limit foreign ownership of aviation companies. To comply with these regulations and
at the same time expand internationally, we have formed or acquired interests in a number of foreign aviation operators. These
investments typically combine a local ownership interest with our experience in providing industrial aviation services to the
offshore energy industry. These arrangements have allowed us to expand operations while diversifying the risks and reducing the
capital outlays associated with independent expansion. We lease some of our aircraft to a number of unconsolidated affiliates,
which in turn provide industrial aviation services to clients locally.

Since the beginning of fiscal year 2013, we have made strategic investments and acquisitions including investment in new
generations of aircraft that are in demand by our clients, and expanded or increased investments in new markets and industries.
These investments have included investments by consolidated affiliates in fixed-wing operators: Airnorth in Australia and Eastern
Airways in the U.K., both of which are consolidated in our financial statements, an equity method investment in Sky-Futures in
the U.K., the leading provider of unmanned aerial vehicles inspection data services for the oil and gas industry and an equity
method investment in Cougar Helicopters Inc. (“Cougar”) in Canada.

Also since the beginning of fiscal year 2013, we have raised $1.6 billion of capital with both public and private financings,
generated gross proceeds of $116.4 million through the divestiture of non-core businesses (including the sale of our 50% interest
in each of FBS Limited, FB Heliservices Limited and FB Leasing Limited, collectively referred to as the FB Entities, in fiscal
year 2014 and the sale of Helideck Certification Agency (“HCA”) in fiscal year 2015), generated proceeds of approximately $186.0
million through the sale of other aircraft and equipment to the helicopter aftermarket and received $912.1 million from the sale
and leaseback of 42 aircraft in fiscal years 2013 through 2017. Concurrently, we have invested approximately $2.3 billion in capital
expenditures to grow our business.

While we plan to continue to be disciplined concerning future capital commitments, we also intend to continue managing
our capital structure and liquidity position with additional external financings, as needed. Our strategy will involve funding our
short-term liquidity requirements with borrowings under our $400 million revolving credit facility (the “Revolving Credit Facility”)
and funding our long-term capital needs with operating leases, bank debt, private and public debt and equity offerings.

We regularly engage in discussions with potential sellers and strategic partners regarding the possible purchase of assets,
pursuit of joint ventures or other expansion opportunities that increase our position in existing markets or facilitate expansion into
new markets. We may also divest portions of our business or assets to narrow our product lines and reduce our operational footprint
to reduce leverage and improve return on capital. These potential expansion opportunities and divestitures may consist of both
smaller transactions as well as larger transactions that could have a material impact on our financial position, cash flow and results
of operations. We cannot predict the likelihood of completing, or the timing of, any such transactions.

The oil and gas business environment experienced a significant downturn beginning during fiscal year 2015. Brent crude
oil prices declined from approximately $106 per barrel at July 1, 2014 to a low of approximately $26 per barrel in February 2016
with an increase to approximately $51 per barrel as of March 31, 2017. The decrease in oil prices was driven by increased global
supply and forecasts of reduced demand for crude oil resulting from weaker global economic growth in many regions of the world.
The oil price decline negatively impacted the cash flow of our clients and resulted in their implementation of measures to reduce
operational and capital costs in calendar years 2015 and 2016 compared to 2014 levels, negatively impacting activity during fiscal
years 2015, 2016 and 2017. These cost reductions have continued into calendar year 2017 and have impacted both the offshore
production and the offshore exploration activity of our clients, with offshore production activity being impacted to a lesser extent,
continuing to negatively impact activity during fiscal year 2017. Although the largest share of our revenue relates to oil and gas
production and our largest contract, the U.K. SAR contract, is not directly impacted by declining oil prices, the significant drop
in the price of crude oil resulted in the rescaling, delay or cancellation of planned offshore projects which has negatively impacted
our operations and could continue to negatively impact our operations in future periods. Although oil prices have recently increased
following the OPEC agreement in late 2016 to cut production and the oil price environment is beginning to show signs of stabilizing,
we are uncertain as to when a recovery in offshore spending will occur. An extended period of reduced crude oil prices and related
offshore spending may have a material impact on our financial position, cash flow and results of operations.

As of March 31, 2017, the aircraft in our fleet, the aircraft which we expect to take delivery of in the future and the aircraft

which we have the option to acquire were as follows:

Number of Aircraft

Consolidated Affiliates

Unconsolidated
Affiliates

(3)

Operating Aircraft

Owned
Aircraft

Leased
Aircraft

Aircraft
Held For
Sale

On
Order

(1)

Under
Option

(2)

In Fleet

Maximum
Passenger
Capacity

9
—
16
7
35
67

16
—
6
—
33
5
60

—
—
—
22
—
—
22

1
—
25
1
27
30
206

—
—
11
—
47
58

14
—
—
—
9
1
24

—
1
—
—
3
—
4

9
8
—
—
17
19
122

—
—
—
—
—
—

—
—
4
1
6
—
11

—
—
5
—
—
—
5

—
—
3
—
3
1
20

4
22
—
—
1
27

—
—
—
—
—
5
5

—
—
—
—
—
—
—

—
—
—
—
—
—
32

4
—
—
—
—
4

—
—
—
—
—
—
—

—
—
—
—
—
—
4

16
16
19
20
19

12
12
13
13
12
12

4
4
6
6
7
6

4
4
2

—
—
—
—
11
11

3
14
15
—
27
—
59

1
2
6
—
—
3
12

—
—
—
—
—
29
111

Type
Large Helicopters:
AW189..............................................................
H175 .................................................................
H225 .................................................................
Mil Mi-8............................................................
Sikorsky S-92A.................................................

Medium Helicopters:
AW139..............................................................
Bell 212.............................................................
Bell 412.............................................................
H155 .................................................................
Sikorsky S-76 C/C++........................................
Sikorsky S-76D.................................................

Small Helicopters:
AS350BB..........................................................
Bell 206B ..........................................................
Bell 206L Series................................................
Bell 407.............................................................
BK-117..............................................................
H135 .................................................................

Training Aircraft:
Bell 206B ..........................................................
Robinson R44 ...................................................
Sikorsky S-300CBi ...........................................
Fixed wing ........................................................

Fixed wing (4) ....................................................
Total..................................................................
_______________

(1)

For additional information, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and
Capital Resources — Future Cash Requirements” included elsewhere in this Annual Report.

(2) Represents aircraft which we have the option to acquire. If the options are exercised, the agreements provide that aircraft would be delivered over fiscal
years 2019 through 2020. For additional information, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Liquidity and Capital Resources — Future Cash Requirements” included elsewhere in this Annual Report.

(3)

Includes 43 helicopters (primarily medium) and 22 fixed wing aircraft owned and managed by Líder, our unconsolidated affiliate in Brazil and 39
helicopters and seven fixed wing aircraft owned by Petroleum Air Services (“PAS”), our unconsolidated affiliated in Egypt.

(4) Bristow Helicopters owns a 60% interest in Eastern Airways. Eastern Airways operates a total of 31 fixed wing aircraft in the Europe Caspian region
and provides technical support for three fixed wing aircraft in the Africa region. Additionally, Bristow Helicopters Australia owns a 100% interest in
Airnorth. Airnorth operates a total of 14 fixed wing aircraft, which are included in the Asia Pacific region.

The following table presents the distribution of our operating revenue for fiscal year 2017 and aircraft as of March 31, 2017

among our regions:

Aircraft in Consolidated Fleet

(1)(2)

Helicopters

Operating
Revenue for
Fiscal Year
2017

Small Medium
16
28
41
10
—
95

53% —
14
15%
14
16%
16%
3
—% —
31
100%

Large
78
5
18
24
—
125

Training
—
—
—
—
47
47

Fixed
Wing
31
5
—
14
—
50

Total
125
52
73
51
47
348

Unconsolidated
Affiliates

(3)

Total
— 125
98
46
138
65
51
—
47
—
459
111

Europe Caspian........................
Africa.......................................
Americas..................................
Asia Pacific..............................
Corporate and other .................
Total.........................................

_______________

(1)

Includes 20 aircraft held for sale and 122 leased aircraft as follows:

Held for Sale Aircraft in Consolidated Fleet

Helicopters

Europe Caspian ...................................................... —
Africa .....................................................................
5
Americas ................................................................ —
Asia Pacific ............................................................ —
Corporate and other................................................ —
5
Total .......................................................................

Small Medium Large
—
—
—
—
—
—

2
4
5
—
—
11

Training
—
—
—
—
3
3

Fixed
Wing
—
—
—
1
—
1

Total
2
9
5
1
3
20

Leased Aircraft in Consolidated Fleet

Helicopters

Europe Caspian ...................................................... —
Africa ..................................................................... —
1
Americas ................................................................
Asia Pacific ............................................................
3
Corporate and other................................................ —
4
Total .......................................................................

Small Medium Large
39
2
8
9
—
58

6
1
14
3
—
24

Training
—
—
—
—
17
17

Fixed
Wing
13
2

Total
58
5
— 23
19
— 17
122
19

(2)

(3)

The average age of our commercial helicopter fleet, which excludes training aircraft, was approximately nine years as of March 31, 2017.

The 111 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us.

Our current number of LACE is 174 and our historical LACE and LACE rate is as follows:

LACE .......................................................................................................................
LACE Rate (in millions) ..........................................................................................

Fiscal Year Ended March 31,

2017
174
$ 6.63

2016
162
$ 8.85

2015
166
$ 9.33

2014
158
$ 9.34

2013
158
$ 8.35

The following table presents the distribution of LACE helicopters owned and leased, and the percentage of LACE leased
as of March 31, 2017. The percentage of LACE leased is calculated by taking the total LACE for leased commercial helicopters
divided by the total LACE for all commercial helicopters we operate, including both owned and leased.

Europe Caspian...............................................................................................
Africa ..............................................................................................................
Americas .........................................................................................................
Asia Pacific.....................................................................................................
Total................................................................................................................

LACE

Owned
Aircraft
43
17
24
19
103

Leased
Aircraft
42
3
15
11
71

Percentage
of LACE
Leased

49%
13%
39%
38%
41%

Region Operations

Europe Caspian

Based on the number of aircraft operating, we are one of the largest providers of industrial aviation services in the North
Sea, where there are harsh weather conditions and geographically concentrated offshore facilities. As of March 31, 2017, we
operated our oil and gas operations in our Europe Caspian region from four bases in the U.K. and four bases in Norway. The
offshore facilities in the Northern North Sea and Norwegian North Sea are large and require frequent crew change flight services.
In the Southern North Sea, the facilities are generally smaller with some unmanned platforms requiring shuttle operations to up-
man in the morning and down-man in the evening. We deploy the majority of the large aircraft in our consolidated fleet in the
North Sea where our clients are primarily major integrated and independent offshore energy companies. Our North Sea operations
are subject to seasonality as drilling activity is lower during the winter months due to harsh weather and shorter days.

We provide commercial SAR services for a number of oil and gas companies operating in the Norwegian sector of the North
Sea. As discussed under “— Overview” above, in March 2013, we were awarded a contract to provide public sector SAR services
for all of the U.K. with ten bases, all of which were operational as of March 31, 2017.

Bristow Helicopters owns a 60% interest in Eastern Airways, a regional fixed wing operator based in the U.K. Eastern
Airways has approximately 650 employees and its operations focus on providing scheduled and charter services targeting U.K.
oil and gas transport. Eastern Airways operates 31 fixed wing aircraft and provides technical support for three fixed wing aircraft
operating in our Africa region. We believe our investment in Eastern Airways strengthens our ability to provide a complete suite
of point to point transportation services for existing European based passengers, expand industrial aviation services in certain
areas like the Shetland Islands and create a more integrated logistics solution for global clients.

Additionally, our Europe Caspian region includes operations in Turkmenistan. We operate one medium aircraft through our
51% interest in Turkmenistan Helicopters Limited, a Turkmenistan corporation that provides industrial aviation services to an
international offshore energy company from a single location.

Africa

As of March 31, 2017, most of the aircraft in our Africa region operated in Nigeria, where we are the largest provider of
industrial aviation services to the offshore energy industry. We deploy a combination of small, medium and large aircraft in Nigeria
and service a client base comprised mostly of major integrated offshore energy companies. We have five operational bases, with
the largest bases located in Escravos, Lagos, Port Harcourt and Eket. The marketplace for our services had historically been
concentrated predominantly in the oil rich swamp and shallow waters of the Niger Delta area. More recently we have been
undertaking work further offshore in support of deepwater exploration. Operations in Nigeria are subject to seasonality as the
Harmattan, a dry and dusty trade wind, blows between the end of November and the middle of March. At times when the heavy
amount of dust in the air severely limits visibility, our aircraft are unable to operate.

In October 2015, we began providing fixed wing services to provide end-to-end transportation services for principally oil

and gas industry customers and operate three fixed wing aircraft in support of this service.

We own a 25% interest in PAS, an Egyptian corporation which provides helicopter and fixed wing transportation to the
offshore energy industry. Additionally, spare fixed wing capacity is chartered to tourism operators. PAS operates 39 helicopters
and seven fixed wing aircraft from multiple locations. The remaining 75% interest in PAS is owned by the Egyptian General
Petroleum Corporation.

Americas

As of March 31, 2017, we operated from four operating facilities in the U.S. Gulf of Mexico. We are one of the largest
suppliers of industrial aviation services in the U.S. Gulf of Mexico. Our clients in this business unit are mostly independent and
major integrated offshore energy companies. The U.S. Gulf of Mexico is a major offshore energy producing region. The shallow
water platforms are typically unmanned and are serviced by small aircraft. The deepwater platforms are serviced by medium and
large aircraft. Among our strengths in this region, in addition to our operating facilities, are our advanced flight-following systems
and our widespread and strategically located offshore fuel stations. Operations in the U.S. Gulf of Mexico are subject to seasonality
as the months of December through March typically have more days of harsh weather conditions than the other months of the
year. Additionally, during the months of June through November, tropical storms and hurricanes may reduce activity as we are
unable to operate in the area of the storm.

As of March 31, 2017, we operated a SAR base at the South Lafourche Airport in Galliano, Louisiana. From this base, we

have two medium and one large aircraft that provide SAR and/or medical evacuation services to oil and gas operators.

We own a 40% economic interest in Cougar, the largest offshore energy and SAR helicopter service provider in Atlantic
Canada. Cougar has approximately 250 employees and its operations are primarily focused on serving the offshore oil and gas
industry off Canada’s Atlantic coast. We leased eight large helicopters and four shore-based facilities to Cougar as of March 31,
2017, including state-of-the-art helicopter passenger, maintenance and SAR facilities located in Newfoundland and Labrador.

We also own a 41.9% economic interest in Líder, the largest provider of helicopter and corporate aviation services in Brazil.
Líder has five primary operating units: helicopter service, maintenance, chartering, ground handling and aircraft sales, and provides
commercial SAR and medical evacuation services to the oil and gas industry. Líder’s fleet includes 43 rotor wing and 22 fixed
wing aircraft (including owned and managed aircraft). Líder’s management has introduced large helicopters into their operational
portfolio allowing them to gain competence and positioning them for the anticipated growth associated with Brazil’s pre-salt fields.
Líder also has a vast network of over 20 bases located strategically in Brazil including locations in Macae, Rio de Janiero, Sao
Tome, Urucu and Vitória.

Additionally, we operate seven medium and one large aircraft in Trinidad from a base located at Trinidad’s Piarco International
Airport and three medium aircraft in Guyana from a base located at Ogle International Airport. Our clients in Trinidad and Guyana
are primarily engaged in offshore energy activities. We also provide rescue and recovery services for our clients in Trinidad and
Guyana.

Asia Pacific

As of March 31, 2017, we operated oil and gas operations in Australia from four bases located in Western Australia, three
bases in Victoria, one base in Northern Territory and one base in Queensland. Our operating bases are located in the vicinity of
the major offshore energy exploration and production fields in the North West Shelf, the Browse and Carnarvon basins of Western
Australia and the Bass Straits in Victoria. Our clients in Australia are primarily major integrated offshore energy companies. We
provide SAR and medical evacuation services to the oil and gas industry in Australia and engineering support to the Republic of
Singapore Air Force’s fleet of helicopters at their base in Oakey, Queensland. Operations in the Asia Pacific region during the
months of November through April may be impacted by cyclones that may reduce activity as we are unable to operate in the area
of the storm.

Bristow Helicopters Australia owns a 100% interest in Airnorth, a regional fixed wing operator based in Darwin, North
Territory, Australia. Airnorth has approximately 280 employees and its operations focus on providing both charter and scheduled
services targeting the energy and mining industries in Northern and Western Australia as well as international services to Dili,
Timor-Leste. Airnorth operates 14 fixed wing aircraft. We believe this investment strengthens our ability to provide point to point
transportation services for existing Australian based passengers, expand industrial aviation services in certain areas in Southeast
Asian markets and create a more integrated logistics solution for global clients.

Additionally, we operate seven large aircraft in Russia from three locations on Sakhalin Island, where we provide industrial

aviation services to international and domestic offshore energy companies and operate a local SAR service.

Bristow Academy

Bristow Academy is a leading provider of helicopter training services with over 25 years of operating history and training
facilities in Titusville, Florida and Carson City, Nevada. Bristow Academy trains students from around the world to become
helicopter pilots and is approved to provide helicopter flight training at the commercial pilot and flight instructor level by both
the U.S. Federal Aviation Administration (the “FAA”) and the European Aviation Safety Authority (the “EASA”). Bristow Academy
operates 47 aircraft (including 27 owned, 17 leased aircraft and three held for sale) and employs approximately 80 people, including
approximately 20 primary flight instructors. A significant part of Bristow Academy’s operations include military training, which
generated approximately 33% of Bristow Academy’s operating revenue for fiscal year 2017.

Clients and Contracts

Our principal clients are major integrated, national and independent offshore energy companies and the U.K Department
for Transport. The following table presents our top ten clients in fiscal year 2017 and their percentage contribution to our consolidated
gross revenue during fiscal years 2017, 2016 and 2015 and includes any clients accounting for 10% or more of our consolidated
gross revenue during such fiscal years.

Client Name
U.K. Department for Transport ...........................................................
Chevron ...............................................................................................
BP ........................................................................................................
ConocoPhillips ....................................................................................
Statoil...................................................................................................
IAC (1) ..................................................................................................
Cougar (2) .............................................................................................
Exxon Mobil........................................................................................
Talisman ..............................................................................................
Inpex ....................................................................................................

Fiscal Year Ended March 31,

2017
13.6%
8.7%
8.2%
7.3%
5.3%
4.6%
4.4%
4.1%
3.6%
3.4%
63.2%

2016
10.3%
11.4%
6.5%
7.6%
3.7%
5.6%
3.6%
3.5%
2.3%
4.7%
59.2%

2015

2.6%
11.7%
7.7%
9.3%
4.7%
7.7%
3.3%
3.6%
4.1%
2.3%
57.0%

_______________

(1)

(2)

IAC is the Integrated Aviation Consortium in the U.K. North Sea and comprises three major oil companies: BP, CNR International, and
TAQA.

As discussed above, we own a 40% economic interest in Cougar.

Our helicopter contracts are generally based on a two-tier rate structure consisting of a daily or monthly fixed fee plus
additional fees for each hour flown. We also provide services to clients on an “ad hoc” basis, which usually entails a shorter notice
period and shorter contract duration. Our charges for ad hoc services are generally based on an hourly rate, or a daily or monthly
fixed fee plus additional fees for each hour flown. Generally, our ad hoc services have a higher margin than our other helicopter
contracts due to supply and demand dynamics.

Generally, our oil and gas helicopter contracts are cancelable by the client with a notice period ranging from 30 to 180 days
and in some cases up to one year. In the Americas region, we generally enter into short-term contracts for twelve months or less.
Outside of the Americas, contracts are typically between two and five years in term. These long term contracts may also include
escalation provisions allowing annual rate increases, which may be based on a fixed dollar or percentage increase, an increase in
an agreed index or our actual substantiated increased costs, which we negotiate to pass along to clients. Cost reimbursements from
clients are recorded as reimbursable revenue with the related reimbursed cost recorded as reimbursable expense in our consolidated
statements of operations.

Generally, SAR services contracts include a monthly standing charge, which average approximately 85% of the total contract
revenue, and a monthly variable charge that covers flying, fuel and ancillary items, which average approximately 15% of the total
contract revenue. See further details on the U.K. SAR contract in “— Overview.”

Our fixed wing services are generally provided through scheduled charter service or regular public transport service. For
scheduled charter service, our contracts typically include variable rates based on the number of passengers, flights or flight hours.
These agreements may also include a monthly standing charge; however, this is much less common as compared to helicopter
contracts. We also provide charter services to clients on an “ad hoc” basis, which usually entails a shorter notice period and shorter
contract duration. Regular public transport service is provided through established daily or weekly flight schedules and is based
upon individual ticket sales to customers.

Competition

The helicopter and fixed wing businesses are highly competitive throughout the world. We compete directly against multiple
providers in almost all of our operating regions. We have several significant competitors in the North Sea, Nigeria, the U.S. Gulf
of Mexico and Australia, and a number of smaller local competitors in other markets. Globally, we have seen a recent increase in
competitive pressure and new regulation that could impact our ability to win future work. Competition has intensified and new
competitors could enter our industry if they are willing to make a significant capital investment, have access to working capital,
onshore and offshore bases, personnel and operating experience. These requirements can be achieved with the appropriate level
of client support and commitment. In addition, while not the predominant practice, certain of our clients and potential clients in
the offshore energy industry perform their own industrial aviation services.

In most situations, clients charter aircraft on the basis of competitive bidding. On limited occasions, our clients renew or
extend existing contracts without employing a competitive bid process. Contracts are generally awarded based on a number of
factors, including price, quality of service, operational experience, record of safety, quality and type of equipment, client relationship
and professional reputation. Incumbent operators typically have a competitive advantage in the bidding process based on their
relationship with the client, knowledge of the site characteristics and existing facilities to support the operations. Because certain
of our clients in the offshore energy industry have the capability to perform their own industrial aviation services, our ability to
increase charter rates may be limited under certain circumstances.

Code of Business Integrity

We have adopted a Code of Business Integrity (our “Code”) that applies to Bristow Group Inc. and all of its subsidiaries,
affiliates and controlled joint ventures, including all directors, officers (including our principal executive officer, principal financial
officer and principal accounting officer) and employees thereof. Our Code covers topics including, but not limited to, anti-
corruption, conflicts of interest, insider trading, competition and fair dealing, discrimination and harassment, confidentiality,
compliance procedures and employee complaint procedures. Our Code is posted on our website, http://www.bristowgroup.com,
under the “About Us” and “Vision, Mission, Values” caption. We will disclose any amendment to the Code or waiver with respect
to our senior officers on our website or, alternatively, through the filing of a Form 8-K.

Safety, Industry Hazards and Insurance

Hazards such as severe weather and mechanical failures are inherent in the transportation industry and may result in the loss
of equipment and revenue. It is possible that personal injuries and fatalities may occur. We believe our air accident rate per 100,000
flight hours, which has historically been more than ten times lower than the reported global offshore energy production helicopter
average data, indicates that we have consistently performed better than the industry average with respect to safety. In fiscal year
2016, one Sikorsky S-76C+ and one Sikorsky S-76C++ aircraft operated by us were involved in accidents. In one of these accidents,
two of our crew members and four passengers were fatally injured. The second accident resulted in no significant injuries or
fatalities. During fiscal years 2017 and 2015, we had no accidents that resulted in fatalities.

Our well established global safety program called “Target Zero” focuses on improved safety performance. Our safety vision
is to have zero accidents, zero harm to people, and zero harm to the environment. The key components to achieving this are to
improve safety culture and individual behaviors, increase the level of safety reporting by the frontline employees, increase
accountability for addressing identified hazards by the operational managers and provide for independent oversight of the
operational safety programs. See discussion of Target Zero in “— Overview.”

We maintain hull and liability insurance which generally insures us against damage to our aircraft and the related liabilities
which may be incurred as a result. We also carry insurance for war risk, expropriation and confiscation of the aircraft we use in
certain of our international operations. Further, we carry various other liability and property insurance, including workers’
compensation, general liability, employers’ liability, auto liability, and property and casualty coverage. We believe that our insurance
program is adequate to cover any claims ultimately incurred related to property damage and liability events.

Employees

As of March 31, 2017, we employed 4,374 employees. Many of our employees are represented under collective bargaining
agreements. Periodically, certain groups of our employees who are not covered by a collective bargaining agreement consider
entering into such an agreement. We believe that our relations with our employees are generally satisfactory.

The following table sets forth our main employee groups and status of the collective bargaining agreements:

Employee Group

U.K. Pilots

Representatives
British Airline Pilots Association
(“BALPA”)

U.K. Engineers and Staff

Unite

Bristow Norway Pilots

Bristow Norway Engineers

Nigeria Junior and Senior
Staff

Nigeria Pilots and Engineers

Norsk Flygerforbund
(“NALPA”); Parat Luftfart
(“PARAT”)

Norsk Helikopteransattes
Forbund (“NU of HE”)/BNTF

National Union of Air Transport
Employees; Air Transport
Services Senior Staff Association
of Nigeria

Nigerian Association of Airline
Pilots and Engineers

North America Pilots

Office and Professional
Employees International Union
(“OPEIU”)

Gulf of Mexico Mechanics

OPEIU

Australia Pilots

Australia Engineers and BDI
Tradesmen and Staff

Australian Federation of Air
Pilots

Australian Licensed Aircraft
Engineers Association
(“ALAEA”), Australian
Manufacturing Union
(“AMWU”) and elected
employee representatives

Trinidad Mechanics

Fitters/Handlers

Airnorth Pilots

Aircrew Logistics Pilots Group

Airnorth Engineers

Aircraft Logistics Engineers
Group

Status of Agreement
Agreement expired in
March 2017. Currently in
negotiations.

Agreement expired in
March 2017. Currently in
negotiations.

Local agreement expired
in September 2016.
Currently in negotiations.

Agreements expire in
December 2017.

We recognize this union
for representation
purposes, but there is no
formal commitment to
negotiate remuneration.

Agreement expired April
2015. Currently in
negotiations.

Agreement expired in
April 2017. Currently in
negotiations.

Agreement expires in
March 2019.

Agreement for BDI
tradesmen and staff
expires in March 2017.
Agreement for Australia
engineers expires in
March 2018. Currently in
negotiations for BDI
agreement.

Agreements expired in
May 2016. Currently in
negotiations.

Agreement expired in
June 2015. Currently
being rolled over on an
annual basis.

Agreement expired in
June 2016. Currently in
negotiations.

Approximate Number of
Employees Covered
by Agreement as of
March 31, 2017

400

550

160

110

150

130

200

100

170

Líder, our unconsolidated affiliate in Brazil, employs approximately 1,380 employees and Cougar, our unconsolidated

affiliate in Canada, employs approximately 250 employees.

Governmental Regulation

United States

As a commercial operator of aircraft, our U.S. operations are subject to regulations under the Federal Aviation Act of 1958,
as amended, and other laws. We carry persons and property in our helicopters under an Air Taxi Certificate granted by the FAA.
The FAA regulates our U.S. flight operations and, in this respect, exercises jurisdiction over personnel, aircraft, ground facilities
and certain technical aspects of our operations. The National Transportation Safety Board is authorized to investigate aircraft
accidents and to recommend improved safety standards. Our U.S. operations are also subject to the Federal Communications Act
of 1934 because we use radio facilities in our operations.

Under the Federal Aviation Act, it is unlawful to operate certain aircraft for hire within the U.S. unless such aircraft are
registered with the FAA and the FAA has issued an operating certificate to the operator. As a general rule, aircraft may be registered
under the Federal Aviation Act only if the aircraft are owned or controlled by one or more citizens of the U.S. and an operating
certificate may be granted only to a citizen of the U.S. For purposes of these requirements, a corporation is deemed to be a citizen
of the U.S. only if at least 75% of its voting interests are owned or controlled by U.S. citizens, the president of the company is a
U.S. citizen, two-thirds or more of the directors are U.S. citizens and the company is under the actual control of U.S. citizens. If
persons other than U.S. citizens should come to own or control more than 25% of our voting interest or if any of the other
requirements are not met, we have been advised that our aircraft may be subject to deregistration under the Federal Aviation Act,
and we may lose our ability to operate within the U.S. Deregistration of our aircraft for any reason, including foreign ownership
in excess of permitted levels, would have a material adverse effect on our ability to conduct certain operations within our Americas
region and Bristow Academy operations. Therefore, our organizational documents currently provide for the automatic suspension
of voting rights of shares of our outstanding voting capital stock owned or controlled by non-U.S. citizens, and our right to redeem
those shares, to the extent necessary to comply with these requirements. As of March 31, 2017, approximately 5,203,000 shares
of our common stock, par value $.01 per share (“Common Stock”), were held of record by persons with foreign addresses. These
shares represented approximately 15% of our total outstanding Common Stock as of March 31, 2017. Our foreign ownership may
fluctuate on each trading day because our Common Stock is publicly traded.

Also, we are subject to the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”), which generally prohibits us and our

intermediaries from making corrupt payments to foreign officials for the purpose of obtaining or keeping business.

Additionally, we are subject to the International Traffic in Arms Regulations (“ITAR”) that control the export and import of
defense-related articles, services and technical data. ITAR dictates that information and material pertaining to defense and military
related technologies may only be shared with U.S. persons or organizations unless authorization from the U.S. State Department
is received or a special exemption is used. We are also subject to the Export Administration Regulations (the “EAR”) that control
the export of commercial and “dual use” goods. U.S. persons or organizations may incur heavy fines if they violate ITAR or the
EAR.

United Kingdom

Our operations in the U.K. are subject to the Civil Aviation Act 1982 and other similar English and European Union (“E.U.”)
statutes and regulations. We carry persons and property in our aircraft pursuant to an operating license issued by the Civil Aviation
Authority (the “CAA”). The holder of an operating license must meet the ownership and control requirements of Council
Regulation 2407/92. To operate under this license, the company through which we conduct operations in the U.K., Bristow
Helicopters, must be owned directly or through majority ownership by E.U. nationals, and must at all times be effectively controlled
by them. To comply with these restrictions, we own only 49% of the ordinary shares of Bristow Aviation, the entity that owns
Bristow Helicopters. In addition, we have a put/call agreement with the other two stockholders of Bristow Aviation which grants
us the right to buy all of their Bristow Aviation ordinary shares (and grants them the right to require us to buy all of their shares).
Under English law, to maintain Bristow Helicopters’ operating license, we would be required to find a qualified E.U. owner to
acquire any of the Bristow Aviation shares that we have the right or obligation to acquire under the put/call agreement. In addition
to our equity investment in Bristow Aviation, we own deferred stock, essentially a subordinated class of stock with no voting
rights, and hold subordinated debt issued by Bristow Aviation.

The CAA regulates our U.K. flight operations and exercises jurisdiction over personnel, aircraft, ground facilities and certain
technical aspects of those operations. The CAA often imposes improved safety standards. Under the Licensing of Air Carriers
Regulations 1992, it is unlawful to operate certain aircraft for hire within the U.K. unless such aircraft are approved by the CAA.
Changes in U.K. or E.U. statutes or regulations, administrative requirements or their interpretation may have a material adverse
effect on our business or financial condition or on our ability to continue operations in the U.K.

Also, we are subject to the U.K. Bribery Act 2010 (the “U.K. Bribery Act”), which creates criminal offenses for bribery and

failing to prevent bribery.

Additionally, we are subject to the U.K. and E.U. Dual-Use Export Regulations. Dual use goods are products and technologies
which have both civilian and military applications. U.K. and E.U. regulations may require export authorization for certain exports
of dual use items.

Nigeria

Our operations in Nigeria are subject to the Nigerian Content Development Act 2010, which requires that oil and gas contracts
be awarded to a company that is seen or perceived to have more “local content” than a “Foreign” competitor. Additionally, the
Nigerian Content Development Act allows the monitoring board to penalize companies that do not meet these local content
requirements up to 5% of the value of the contract.

Other

Our operations in other markets are subject to local governmental regulations that may limit foreign ownership of aviation
companies. Because of these local regulations, we conduct some of our operations through entities in which citizens of such
countries own a majority interest and we hold a noncontrolling interest, or under contracts which provide that we operate assets
for the local companies and conduct their flight operations. Such contracts are used for our operations in Russia and Turkmenistan.
Changes in local laws, regulations or administrative requirements or their interpretation may have a material adverse effect on our
business or financial condition or on our ability to continue operations in these areas.

Environmental

Our operations are subject to laws and regulations controlling the discharge of materials into the environment or otherwise
relating to the protection of the environment. If we fail to comply with these environmental laws and regulations, administrative,
civil and criminal penalties may be imposed, and we may become subject to regulatory enforcement actions in the form of
injunctions and cease and desist orders. We may also be subject to civil claims arising out of a pollution event. These laws and
regulations may expose us to strict, joint and several liability for the conduct of or conditions caused by others or for our own acts
even though these actions were in compliance with all applicable laws at the time they were performed. To date, such laws and
regulations have not had a material adverse effect on our business, results of operations or financial condition.

Increased public awareness and concern over the environment may result in future changes in the regulation of the offshore
energy industry, which in turn could adversely affect us. The trend in environmental regulation is to place more restrictions and
limitations on activities that may affect the environment and there can be no assurance as to the effect of such regulation on our
operations or on the operations of our clients. We try to anticipate future regulatory requirements that might be imposed and plan
accordingly to remain in compliance with changing environmental laws and regulations and to minimize the cost of such
compliance. We do not believe that compliance with federal, state or local environmental laws and regulations will have a material
adverse effect on our business, financial position or results of operations. We cannot be certain that future events, such as changes
in existing laws, the promulgation of new laws, or the development or discovery of new facts or conditions will not cause us to
incur significant costs. Below is a discussion of the material U.S. environmental laws and regulations that relate to our business.
We believe that we are in substantial compliance with all of these environmental laws and regulations.

Under the Comprehensive Environmental Response, Compensation and Liability Act, referred to as CERCLA or the
Superfund law, and related state laws and regulations, strict, joint and several liability can be imposed without regard to fault or
the legality of the original conduct on certain classes of persons that contributed to the release of a hazardous substance into the
environment. These persons include the owner and operator of a contaminated site where a hazardous substance release occurred
and any company that transported, disposed of or arranged for the transport or disposal of hazardous substances, even from inactive
operations or closed facilities that have been released into the environment. In addition, neighboring landowners or other third
parties may file claims for personal injury, property damage and recovery of response cost. We currently own, lease, or operate
properties and facilities that, in some cases, have been used for industrial activities for many years. Hazardous substances, wastes,
or hydrocarbons may have been released on or under the properties owned or leased by us, or on or under other locations where
such substances have been taken for disposal. In addition, some of these properties have been operated by third parties or by
previous owners whose treatment and disposal or release of hazardous substances, wastes, or hydrocarbons was not under our
control. These properties and the substances disposed or released on them may be subject to CERCLA and analogous state statutes.
Under such laws, we could be required to remove previously disposed substances and wastes, remediate contaminated property,
or perform remedial activities to prevent future contamination. These laws and regulations may also expose us to liability for our
acts that were in compliance with applicable laws at the time the acts were performed. We have been named as a potentially
responsible party in connection with certain sites. See further discussion under Item 3. “Legal Proceedings” included elsewhere
in this Annual Report.

In addition, since our operations generate wastes, including some hazardous wastes, we may be subject to the provisions of
the Resource, Conservation and Recovery Act, or RCRA, and analogous state laws that limit the approved methods of disposal
for some types of hazardous and nonhazardous wastes and require owners and operators of facilities that treat, store or dispose of
hazardous waste and to clean up releases of hazardous waste constituents into the environment associated with their operations.
Some wastes handled by us that currently are exempt from treatment as hazardous wastes may in the future be designated as
“hazardous wastes” under RCRA or other applicable statutes. If this were to occur, we would become subject to more rigorous
and costly operating and disposal requirements.

The Federal Water Pollution Control Act, also known as the Clean Water Act, and analogous state laws impose restrictions
and strict controls regarding the discharge of pollutants into state waters or waters of the U.S. The discharge of pollutants into
jurisdictional waters is prohibited unless the discharge is permitted by the U.S. Environmental Protection Agency, also referred
to as the EPA, or applicable state agencies. Some of our properties and operations require permits for discharges of wastewater
and/or stormwater, and we have a system in place for securing and maintaining these permits. In addition, the Oil Pollution Act
of 1990 imposes a variety of requirements on responsible parties related to the prevention of oil spills and liability for damages,
including natural resource damages, resulting from such spills in the waters of the U.S. A responsible party includes the owner or
operator of a facility. The Clean Water Act and analogous state laws provide for administrative, civil and criminal penalties for
unauthorized discharges and, together with the Oil Pollution Act, impose rigorous requirements for spill prevention and response
planning, as well as substantial potential liability for the cost of removal, remediation, and damages in connection with any
unauthorized discharges.

Some of our operations also result in emissions of regulated air pollutants. The Federal Clean Air Act and analogous state
laws require permits for facilities that have the potential to emit substances into the atmosphere that could adversely affect
environmental quality. Failure to obtain a permit or to comply with permit requirements could result in the imposition of substantial
administrative, civil and even criminal penalties.

Our facilities and operations are also governed by laws and regulations relating to worker health and workplace safety,
including the Federal Occupational Safety and Health Act, or OSHA. We believe that appropriate precautions are taken to protect
our employees and others from harmful exposure to potentially hazardous materials handled and managed at our facilities, and
that we operate in substantial compliance with all OSHA or similar regulations.

In addition, we could be affected by future laws or regulations imposed in response to concerns over climate change. Changes
in climate change concerns, or in the regulation of such concerns, including greenhouse gas emissions, could subject us to additional
costs and restrictions, including compliance costs and increased energy and raw materials costs.

Our operations outside of the U.S. are subject to similar foreign governmental controls relating to protection of the
environment. We believe that, to date, our operations outside of the U.S. have been in substantial compliance with existing
requirements of these foreign governmental bodies and that such compliance has not had a material adverse effect on our operations.
There is no assurance, however, that future expenditures to maintain compliance will not become material.

Item 1A. Risk Factors

If you hold our securities or are considering an investment in our securities, you should carefully consider the following

risks, together with the other information contained in this Annual Report.

Risks Relating to Our Clients and Contracts

The demand for our services is substantially dependent on the level of offshore oil and gas exploration, development and
production activity.

We provide helicopter and fixed wing services to companies engaged in offshore oil and gas exploration, development and
production activities. As a result, demand for our services, as well as our revenue and our profitability, are substantially dependent
on the worldwide levels of activity in offshore oil and gas exploration, development and production. These activity levels are
principally affected by trends in, and expectations regarding, oil and natural gas prices, as well as the capital expenditure budgets
of offshore energy companies. We cannot predict future exploration, development and production activity or oil and gas price
movements. Historically, the prices for oil and gas and activity levels have been volatile and are subject to factors beyond our
control, such as:

•

the supply of and demand for oil and gas and market expectations for such supply and demand;

actions of the Organization of Petroleum Exporting Countries and other oil producing countries to control prices or change
production levels;

general economic conditions, both worldwide and in particular regions;

governmental regulation;

the price and availability of alternative fuels;

• weather conditions, including the impact of hurricanes and other weather-related phenomena;

•

advances in exploration, development and production technology;

the policies of various governments regarding exploration and development of their oil and gas reserves; and

the worldwide political environment, including uncertainty or instability resulting from an escalation or additional outbreak
of armed hostilities or other crises in the Middle East, Nigeria or other geographic areas, or further acts of terrorism in
the U.K., U.S. or elsewhere.

Additionally, an increase in onshore fracking, which generally does not require use of our services, could have an adverse
effect on our operations. If onshore fracking were to meaningfully increase globally, and if it were to drive a meaningful increase
in the supply of hydrocarbons without an increase in global demand, it could potentially adversely impact oil and natural gas prices
and the level of activity in our offshore oil and gas markets and the demand for our industrial aviation services.

A focus by our clients on cost-saving measures rather than quality of service, which is how we differentiate ourselves from
competition, could reduce the demand for our services.

Historically, we had the ability to secure profitable contracts by providing superior quality as compared to our competitors.
However, offshore energy companies are continually seeking to implement measures aimed at greater cost savings, including
efforts to accept lesser quality services, otherwise improve cost efficiencies with respect to air transportation services, or to provide
other alternatives for transportation, such as boats. For example, these companies may reduce staffing levels on both old and new
installations by using new technology to permit unmanned installations, may reduce the frequency of transportation of employees
by increasing the length of shifts offshore, may change other aspects of how our services are scheduled and may consider other
alternatives to our services to achieve cost savings. In addition, these companies could initiate their own helicopter, airplane or
other transportation alternatives. The continued implementation of these kinds of measures could reduce the demand or pricing
for our services and have a material adverse effect on our business, financial condition and results of operations.

Our industry is highly competitive and cyclical, with intense price competition.

The helicopter and fixed wing businesses are highly competitive throughout the world. Chartering of such aircraft is often
done on the basis of competitive bidding among those providers having the necessary equipment, operational experience and
resources. Factors that affect competition in our industry include price, quality of service, operational experience, record of safety,
quality and type of equipment, client relationship and professional reputation.

Our industry has historically been cyclical and is affected by the volatility of oil and gas price levels. There have been periods
of high demand for our services, followed by periods of low demand for our services. Changes in commodity prices can have a
significant effect on demand for our services, and periods of low activity intensify price competition in the industry and often
result in our aircraft being idle for long periods of time.

We have several significant competitors in the North Sea, Nigeria, the U.S. Gulf of Mexico, Australia, Canada and Brazil,
and a number of smaller local competitors in other markets. Certain of our clients have the capability to perform their own air
transportation operations or give business to our competitors should they elect to do so, which has a limiting effect on our rates.

As a result of significant competition, we must continue to provide safe and efficient service and we must continue to evolve
our technology or we will lose market share, which could have a material adverse effect on our business, financial condition and
results of operations due to the loss of a significant number of our clients or termination of a significant number of our contracts.
See further discussion in Item 1. “Business — Competition” included elsewhere in this Annual Report.

We depend on a small number of large offshore energy industry clients for a significant portion of our revenue.

We derive a significant amount of our revenue from a small number of offshore energy companies. Our loss of one of these
significant clients, if not offset by sales to new or other existing clients, could have a material adverse effect on our business,
financial condition and results of operations. See further discussion in Item 1. “Business — Clients and Contracts” included
elsewhere in this Annual Report.

Our contracts often can be terminated or downsized by our clients without penalty.

Many of our fixed-term contracts contain provisions permitting early termination by the client at their convenience, generally
without penalty, and with limited notice requirements. In addition, many of our contracts permit our clients to decrease the number
of aircraft under contract with a corresponding decrease in the fixed monthly payments without penalty. As a result, you should
not place undue reliance on the strength of our client contracts or the terms of those contracts.

Our U.K. SAR contract can be terminated and is subject to certain other rights of the U.K. Department for Transport.

The U.K. SAR contract allows the DfT to cancel the contract for any reason upon notice and payment of a specified
cancellation fee based on the number of bases reduced as a result of the exercise and the timing of the exercise. Additionally, the
U.K. SAR contract grants the DfT the option to require us to transfer to the DfT, at termination or expiration, either the lease or
the ownership of some or all of the helicopters that service the U.K. SAR contract. The DfT may alternatively require that we or
the owner, as the case may be, transfer the lease or ownership of the helicopters to any replacement service provider. If the DfT
wishes to transfer ownership it must pay a specified option exercise fee based on the value of the helicopters. If the DfT wishes
to transfer the lease it does not have to pay an option exercise fee. We currently lease the majority of the aircraft that service the
U.K. SAR contract. Although we are entitled to some compensation for termination or early expiration if we are not at fault,
termination or early expiration of the U.K. SAR contract would result in a significant loss of expected revenue. Additionally, we
do not have the right to transfer the ground facilities supporting the U.K. SAR contract to the replacement service provider. If
alternative long-term uses were not identified for these facilities, we could incur recurring fixed expenses for these recently
acquired, non-revenue producing assets if we were unable to sell them to a replacement contractor or other party in the event the
U.K. SAR contract is terminated.

Our clients may shift risk to us.

We give to and receive from our clients indemnities relating to damages caused or sustained by us in connection with our
operations. Our clients’ changing views on risk allocation together with deteriorating market conditions could force us to accept
greater risk to win new business, retain renewing business or could result in us losing business if we are not prepared to take such
risks. To the extent that we accept such additional risk, and seek to insure against it, if possible, our insurance premiums could
rise. If we cannot insure against such risks or otherwise choose not to do so, we could be exposed to catastrophic losses in the
event such risks are realized.

We may not be able to obtain client contracts with acceptable terms covering some of our new helicopters, and some of our
new helicopters may replace existing helicopters already under contract, which could adversely affect the utilization of our
existing fleet.

We have ordered, and have options for, a substantial number of new helicopters. Many of our new helicopters may not be
covered by client contracts when they are delivered to us, and we cannot assure you as to when we will be able to utilize these
new helicopters or on what terms. To the extent our helicopters are covered by a client contract when they are delivered to us,
some of these contracts may be for a short term, requiring us to seek renewals more frequently. Alternatively, we expect that some
of our clients may request new helicopters in lieu of our existing helicopters, which could adversely affect the utilization of our
existing fleet.

Reductions in spending on industrial aviation services by government agencies could lead to modifications of SAR contract
terms or delays in receiving payments, which could adversely impact our business, financial condition and results of operations.

We were awarded a government contract to provide SAR services for all of the U.K. that commenced in April 2015. Any
reductions in the budgets of government agencies for spending on industrial aviation services, implementation of cost saving
measures by government agencies, imposed modifications of contract terms or delays in collecting receivables owed to us by our
government agency clients could have an adverse effect on our business, financial condition and results of operations.

In addition, there are inherent risks in contracting with government agencies. Applicable laws and regulations in the countries
in which we operate may enable our government agency clients to (i) terminate contracts for convenience, (ii) reduce, modify or
cancel contracts or subcontracts if requirements or budgetary constraints change, or (iii) terminate contracts or adjust their terms.

Our fixed operating expenses and long-term contracts with clients could adversely affect our business under certain
circumstances.

Our profitability is directly related to demand for our services. Because of the significant expenses related to aircraft financing
and leasing, crew wages and benefits, and insurance and maintenance programs, a substantial portion of our operating expenses
are fixed and must be paid even when aircraft are not actively servicing clients and thereby generating revenue. A decrease in our
revenue could therefore result in a disproportionate decrease in our earnings, as a substantial portion of our operating expense
would remain unchanged. Similarly, the discontinuation of any rebates, discounts or preferential financing terms offered to us by
manufacturers, lenders or lessors could have the effect of increasing our related expenses, and without a corresponding increase
in our revenue, could negatively impact our results of operations.

Certain of our long-term aircraft services contracts contain price escalation terms and conditions. Although supplier costs,
fuel costs, labor costs, insurance costs, and other cost increases are typically passed through to our clients through rate increases
where possible, these escalations may not be sufficient to enable us to recoup increased costs in full and we may not be able to
realize the full benefit of contract price escalations during a market downturn. There can be no assurance that we will be able to
estimate costs accurately or recover increased costs by passing these costs on to our clients. We may not be successful in identifying
or securing cost escalations for other costs that may escalate during the applicable client contract term. In the event that we are
unable to fully recover material costs that escalate during the terms of our client contracts, the profitability of our client contracts
and our business, financial condition and results of operations could be materially and negatively affected.

Additionally, cost increases related to our airline scheduled service cannot be passed on to previously purchased air passenger
tickets but may be passed on partially or wholly to future purchased tickets if the rates remain competitive to other competing
airlines.

Risks Relating to Our Business

In order to support our business, we may require additional capital in the future that may not be available to us.

Our business is capital intensive, and to the extent we do not generate sufficient cash from operations, we will need to raise
additional funds through bank debt, public or private debt, or equity financings to execute our growth strategy. Adequate sources
of capital funding may not be available when needed, or may not be available on favorable terms. If we raise additional funds by
issuing equity or certain types of convertible debt securities, dilution to the holdings of existing stockholders may result. Further,
if we raise additional debt financing, we will incur additional interest expense and the terms of such debt may be at less favorable
rates than existing debt and could require the pledge of assets as security or subject us to financial and/or operating covenants that
affect our ability to conduct our business. If funding is insufficient at any time in the future, we may be unable to acquire additional
aircraft, take advantage of business opportunities or respond to competitive pressures, any of which could harm our business,
financial condition and results of operations. See discussion of our capital commitments in Item 7. “Management’s Discussion

and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Future Cash Requirements”
included elsewhere in this Annual Report.

The vote by the United Kingdom to leave the European Union could adversely affect us.

In a referendum held on June 23, 2016, voters in the U.K. approved the exit of the U.K. (“Brexit”) from the E.U. On March
29, 2017, the U.K. government commenced the exit process under Article 50 of the Treaty of the European Union by notifying
the European Council of the U.K.’s intention to leave the E.U. This notification starts a two-year time period for the U.K. and the
remaining E.U. Member States to negotiate a withdrawal agreement.

For fiscal years 2017 and 2016, approximately 36% and 34%, respectively, of our revenue was derived from contracts with
customers in the U.K., and approximately 16% of our revenue in both periods was derived from contracts with customers in other
European markets.

The consequences of Brexit, together with what may be protracted negotiations around the terms of Brexit, could introduce
significant uncertainties into global financial markets and adversely impact the regions in which we and our clients operate. In
the long term, Brexit could also create uncertainty with respect to the legal and regulatory requirements to which we and our
customers in the U.K. are subject and lead to divergent national laws and regulations as the U.K. government determines which
E.U. laws to modify or replace. Brexit also exacerbates the potential for additional referendums within the U.K., such as in Scotland,
which could lead to a breakup of the U.K, creating further legal and regulatory uncertainty.

The Brexit vote has resulted in a significant decline in the value of British pound sterling and volatility in exchange rates is
expected to continue as the terms of Brexit are negotiated. If the British pound sterling remains weak or continues to weaken,
revenue under contracts denominated in British pound sterling will translate into fewer U.S. dollars. For fiscal year 2017, revenue
denominated in British pound sterling represented 34% of our revenue. The uncertainties surrounding Brexit and risks associated
with the commencement of Brexit could have a material adverse effect on our current business and future growth.

We may undertake one or more significant corporate transactions that may not achieve their intended results, may adversely
affect our financial condition and our results of operations or result in unforeseeable risks to our business.

We continuously evaluate the acquisition or disposition of operating businesses and assets and may in the future undertake
one or more significant transactions. Any such transaction could be material to our business and could take any number of forms,
including mergers, joint ventures and the purchase of equity interests. The consideration for such acquisitive transactions may
include, among other things, cash, common stock or equity interests in us or our subsidiaries, or a contribution of equipment to
obtain equity interests, and in conjunction with a transaction we might incur additional indebtedness. We also routinely evaluate
the benefits of disposing of certain of our assets.

These transactions may present significant risks such as insufficient revenue to offset liabilities assumed, potential loss of
significant revenue and income streams, increased or unexpected expenses, inadequate return of capital, regulatory or compliance
issues, the triggering of certain covenants in our debt agreements (including accelerated repayment) and unidentified issues not
discovered in due diligence. In addition, such transactions could distract management from current operations. As a result of the
risks inherent in such transactions, we cannot guarantee that any such transaction will ultimately result in the realization of its
anticipated benefits or that it will not have a material adverse effect on our business, financial condition and results of operations.
If we were to complete such an acquisition, disposition, investment or other strategic transaction, we may require additional debt
or equity financing that could result in a significant increase in our amount of debt and our debt service obligations or the number
of outstanding shares of our Common Stock, thereby diluting holders of our Common Stock outstanding prior to such acquisition.

Our operations involve a degree of inherent risk that may not be covered by our insurance and may increase our operating
costs.

The operation of helicopters and fixed wing aircraft inherently involves a degree of risk. Hazards such as harsh weather and
marine conditions, mechanical failures, facility fires and spare parts damage, pandemic outbreaks, crashes and collisions are
inherent in our business and may result in personal injury, loss of life, damage to property and equipment, suspension or reduction
of operations, reduced number of flight hours and the grounding of such aircraft or insufficient ground facilities or spare parts to
support operations. In addition to any loss of property or life, our revenue, profitability and margins could be materially affected
by an accident or asset damage.

We, or third parties operating our aircraft, may experience accidents or damage to our assets in the future. These risks could
endanger the safety of both our own and our clients’ personnel, equipment, cargo and other property, as well as the environment.
If any of these events were to occur with equipment or other assets that we need to operate or lease to third parties, we could
experience loss of revenue, termination of charter contracts, higher insurance rates, and damage to our reputation and client
relationships. In addition, to the extent an accident occurs with aircraft we operate or to assets supporting operations, we could be
held liable for resulting damages. For example, on August 12, 2015, a Sikorsky S-76C+ operated by us was involved in an accident
in which two of our crew members and four passengers were fatally injured. There were six other passengers on board who suffered
injuries in the accident. Also, on February 3, 2016, a Sikorsky S-76C++ operated by us was involved in a controlled water landing
with minor injuries reported for the nine passengers and two crew on board the aircraft. Following standard practice and out of
an abundance of caution, we temporarily suspended operation of the 16 Sikorsky S-76C model aircraft we had operating in Nigeria.
In March 2014, one of our hangars in Nigeria experienced a fire, which resulted in damage to the hangar, two helicopters and a
substantial portion of the inventory spare parts. Although the hangar, helicopters and inventory were covered by insurance, we
incurred deductible and additional insurance premiums as a result of this fire. The lack of sufficient insurance for this incident or
the occurrence of another such incident or accident could have a material adverse effect on our operations and financial condition.

Certain models of aircraft that we operate have also experienced accidents while operated by third parties. Most recently,
on April 29, 2016, an incident occurred with an Airbus Helicopters EC225LP (also known as a H225) model helicopter operated
by another helicopter company, which resulted in the loss of life for eleven passengers and two crew members in Norway. This
incident resulted in the civil aviation authorities in the U.K. and Norway issuing safety directives that required the operators to
suspend commercial operations of the affected aircraft pending determination of the root cause. Our H225 fleet of 27 aircraft
remains grounded globally as a result of this incident. If other operators experience accidents with aircraft models that we operate
or lease, obligating us to take such aircraft out of service until the cause of the accident is rectified, we could lose revenue and
clients. In addition, safety issues experienced by a particular model of aircraft could result in clients refusing to use that particular
aircraft model or a regulatory body grounding that particular aircraft model. The value of the aircraft model might also be
permanently reduced in the market if the model were to be considered less desirable for future service and the inventory for such
aircraft may be impaired.

We attempt to protect ourselves against financial losses and damage by carrying insurance, including hull and liability,
general liability, workers’ compensation, and property and casualty insurance. Our insurance coverage is subject to deductibles
and maximum coverage amounts, and we do not carry insurance against all types of losses, including business interruption. We
cannot assure you that our existing coverage will be sufficient to protect against all losses, that we will be able to maintain our
existing coverage in the future or that the premiums will not increase substantially. In addition, future terrorist activity, risks of
war, accidents or other events could increase our insurance premiums. The loss of our liability insurance coverage, inadequate
coverage from our liability insurance or substantial increases in future premiums could have a material adverse effect on our
business, financial condition and results of operations.

Failure to maintain standards of acceptable safety performance may have an adverse impact on our ability to attract and retain
clients and could adversely impact our reputation, operations and financial performance.

Our clients consider safety and reliability as the two primary attributes when selecting a provider of air transportation services.
If we fail to maintain standards of safety and reliability that are satisfactory to our clients, our ability to retain current clients and
attract new clients may be adversely affected. Accidents or disasters could impact client or passenger confidence in a particular
fleet type, us or the air transportation services industry as a whole and could lead to a reduction in client contracts, particularly if
such accidents or disasters were due to a safety fault in a type of aircraft used in our fleet. In addition, the loss of aircraft as a result
of accidents could cause significant adverse publicity and the interruption of air services to our clients, which could adversely
impact our reputation, operations and financial results. Our aircraft have been involved in accidents in the past, some of which
have included loss of life and property damage. We may experience similar accidents in the future.

Our diversification efforts into other industrial aviation services such as fixed wing, search and rescue, and unmanned aerial
vehicle services may prove unsuccessful.

Our business has traditionally been significantly dependent upon the level of offshore oil and gas exploration, development
and production activity. Although the company has begun diversification efforts with the award for the provision of search and
rescue services in the U.K. and investments in Eastern Airways, Airnorth and Sky-Futures, the effect of the downturn in the oil
and gas industry has nevertheless negatively impacted our financial results and could continue to negatively impact our financial
results in future periods. While diversification into other industrial aviation services is intended to grow the business and offset
the cyclical nature of the underlying oil and gas business, we cannot be certain that diversification benefits associated with those
lines of business will be realized.

Our operations in certain regions of the world are subject to additional risks.

Operations in certain regions are subject to various risks inherent in conducting business in international locations, including:

political, social and economic instability, including risks of war, general strikes and civil disturbances;

physical and economic retribution directed at U.S. and foreign companies and personnel;

governmental actions that restrict payments or the movement of funds or result in the deprivation of contract rights;

violations of our Code;

adverse tax consequences;

fluctuations in currency exchange rates, hard currency shortages and controls on currency exchange that affect demand
for our services and our profitability;

potential noncompliance with a wide variety of laws and regulations, such as the FCPA, and similar non-U.S. laws and
regulations, including the U.K. Bribery Act and Brazil’s Clean Companies Act (the “BCCA”);

the taking of property without fair compensation; and

the lack of well-developed legal systems in some countries that could make it difficult for us to enforce our contractual
rights.

•

Historically, there has been continuing political and social unrest in Nigeria, where we derived 15%, 14% and 18% of our
gross revenue during fiscal years 2017, 2016 and 2015, respectively. In 2015, there was a change in the leadership in Nigeria. The
current leadership is facing numerous challenges which, if not addressed, may cause political or social unrest and result in a lack
of demand for our services in Nigeria and safety risks for our operations and our people. In addition, the passage of the Nigerian
Petroleum Industry Bill could lead to further uncertainty in demand in the region. Future unrest or legislation in Nigeria or our
other operating regions could adversely affect our business, financial condition and results of operations in those regions. We
cannot predict whether any of these events will continue to occur in Nigeria or occur elsewhere in the future.

We also have a joint venture operating in Sakhalin that may be negatively impacted by any further civil unrest within, war

related to, or sanctions against Russia.

We are highly dependent upon the level of activity in the North Sea and to a lesser extent the U.S. Gulf of Mexico, which are
mature exploration and production regions.

In fiscal years 2017, 2016 and 2015, approximately 58% of our gross revenue in each of these fiscal years was derived from
industrial aviation services provided to oil and gas clients operating in the North Sea and the U.S. Gulf of Mexico. The North Sea
and the U.S. Gulf of Mexico are mature exploration and production regions that have undergone substantial seismic survey and
exploration activity for many years. Because a large number of oil and gas properties in these regions have already been drilled,
additional prospects of sufficient size and quality could be more difficult to identify. The ability of our clients to produce sufficient
quantities to support the costs of exploration in different basins could impact the level of future activity in these regions. Generally,
the production from these drilled oil and gas properties is declining. In the future, production may decline to the point that such
properties are no longer economic to operate, in which case, our services with respect to such properties will no longer be needed.
Oil and gas companies may not identify sufficient additional drilling sites to replace those that become depleted. In addition, the
U.S. government’s exercise of authority under the Outer Continental Shelf Lands Act, as amended, to restrict the availability of
offshore oil and gas leases together with the U.K. government’s exercise of authority could adversely impact exploration and
production activity in the U.S. Gulf of Mexico and the U.K. North Sea, respectively.

If activity in oil and gas exploration, development and production in either the U.S. Gulf of Mexico or the North Sea materially
declines, our business, financial condition and results of operations could be materially and adversely affected. We cannot predict
the levels of activity in these areas.

We are exposed to credit risk.

We are exposed to credit risk on our financial investments, which depends on the ability of our counterparties to fulfill their
obligations to us. We manage credit risk by entering into arrangements with established counterparties and through the establishment
of credit policies and limits, which are applied in the selection of counterparties.

Credit risk on financial instruments arises from the potential for counterparties to default on their contractual obligations
and is limited to those contracts on which we would incur a loss in replacing the instrument. We monitor our concentration risk
with counterparties on an ongoing basis. The carrying amount of financial assets represents the maximum credit exposure for
financial assets.

Credit risk arises on our trade receivables from the unexpected loss in cash and earnings when a client cannot meet its
obligation to us or when the value of any security provided declines. To mitigate trade credit risk, we have developed credit policies
that include the review, approval and monitoring of new clients, annual credit evaluations and credit limits. There can be no
assurance that our risk mitigation strategies will be effective and that credit risk will not adversely affect our financial condition
and results of operations.

In addition, the majority of our customers are engaged in oil and gas production, exploration and development. For fiscal
year 2017, we generated approximately 71% of our consolidated operating revenue from external clients from oil and gas operations.
This concentration could impact our overall exposure to credit risk because changes in economic and industry conditions that
adversely affect the oil and gas industry could affect the credit worthiness of many of our customers. We generally do not require
letters of credit or other collateral to support our trade receivables. Accordingly, a continued or additional downturn in the economic
condition of the oil and gas industry could adversely impact our ability to collect our receivables and thus impact our business,
financial condition and results of operations.

Our failure to dispose of aircraft through sales into the aftermarket could adversely affect us.

The management of our global aircraft fleet involves a careful evaluation of the expected demand for our services across
global markets, including the type of aircraft needed to meet this demand. As offshore oil and gas drilling and production globally
moves to deeper water, more medium and large aircraft and newer technology aircraft may be required. During a downturn in the
oil and gas industry or as older aircraft models come off of current contracts and are replaced by new aircraft, our management
evaluates our future needs for these aircraft models and ultimately the ability to recover our remaining investments in these aircraft
through sales into the aftermarket. We depreciate our aircraft over their expected useful life to the expected salvage value to be
received for the aircraft at the end of that life. However, depending on the market for aircraft, we may record gains or losses on
aircraft sales. In certain instances where a cash return can be made on newer aircraft in excess of the expected return available
through the provision of our services, we may sell newer aircraft. The number of aircraft sales and the amount of gains and losses
recorded on these sales can be unpredictable. In May 2016, a global competitor filed for Chapter 11 bankruptcy protection and
announced its intention to reject leases resulting in the return of approximately 90 leased helicopters to lessors. This significant
return of aircraft into an already oversupplied market could undermine our ability to dispose of our aircraft and could have a
material adverse effect on our business, financial condition and results of operations.

Changes in effective tax rates, taxation of our foreign subsidiaries or adverse outcomes resulting from examination of our tax
returns could adversely affect our business, financial condition and results of operations.

Our future effective tax rates could be adversely affected by changes in tax laws, both domestically and internationally, or
the interpretation or application thereof. From time to time, the U.S. Congress and foreign, state and local governments consider
legislation that could increase our effective tax rate or the effective tax rates of our consolidated affiliates. We cannot determine
whether, or in what form, legislation will ultimately be enacted or what the impact of any such legislation could have on our
profitability. If these or other changes to tax laws are enacted, our profitability could be negatively impacted.

Our future effective tax rates could also be adversely affected by changes in the valuation of our deferred tax assets and
liabilities, changes in the mix of earnings in countries with differing statutory tax rates, the ultimate repatriation of earnings from
foreign subsidiaries to the U.S., or by changes in tax treaties, regulations, accounting principles or interpretations thereof in one
or more countries in which we operate. In addition, we are subject to the potential examination of our income tax returns by the
Internal Revenue Service and other tax authorities where we file tax returns. We regularly assess the likelihood of adverse outcomes
resulting from these examinations to determine the adequacy of our provision for income taxes. There can be no assurance that
such examinations will not have a material adverse effect on our business, financial condition and results of operations.

If our goodwill, intangible assets or investments in unconsolidated affiliates become impaired we may be required to record a
significant charge to earnings.

We acquire other companies and intangible assets, and make investments in unconsolidated affiliates, and may not realize
all of the economic benefit from those acquisitions or investments, which could cause an impairment of goodwill, intangibles or
investments in unconsolidated affiliates. We review our intangible assets for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. We test goodwill for impairment at least annually. Factors that may be a change
in circumstances, indicating that the carrying value of our goodwill, intangible assets or investments in unconsolidated affiliates
may not be recoverable, include a decline in our stock price and market capitalization, reduced future cash flow estimates, and
slower growth rates in the industry in which we operate. For example, in fiscal years 2017 and 2016, we recognized losses of $8.7
million and $49.7 million, respectively, associated with the impairment of goodwill and other intangibles as a result of the market
downturn. We may be required to record significant additional charges in our consolidated financial statements during the period
in which any impairment of our goodwill, intangible assets or investments in unconsolidated affiliates is determined, which could
adversely affect our results of operations.

Foreign exchange risks and controls may affect our financial position and results of operations.

Through our operations outside the U.S., we are exposed to foreign currency fluctuations and exchange rate risks. As a
result, a strong U.S. dollar may increase the local cost of our services that are provided under U.S. dollar-denominated contracts,
which may reduce the demand for our services in foreign countries.

Because we maintain our financial statements in U.S. dollars, our financial results are vulnerable to fluctuations in the
exchange rate between the U.S. dollar and foreign currencies, such as the British pound sterling, Australian dollar, euro, Norwegian
kroner and Nigerian naira. In preparing our financial statements, we must convert all non-U.S. dollar results to U.S. dollars. The
effect of foreign currency translation impacts our results of operations as a result of the translation of non-U.S. dollar results and
is reflected as a component of stockholders’ investment, while the revaluation of certain monetary foreign currency transactions
is credited or charged to income and reflected in other income (expense), net. Additionally, our earnings from unconsolidated
affiliates, net of losses, are affected by the impact of changes in foreign currency exchange rates on the reported results of our
unconsolidated affiliates, primarily the impact of changes in the Brazilian real and the U.S. dollar exchange rate on results for our
affiliate in Brazil. Changes in exchange rates could cause significant changes in our financial position and results of operations
in the future.

We operate in countries with foreign exchange controls including Brazil, Egypt, Nigeria, Russia and Turkmenistan. These
controls may limit our ability to repatriate funds from our international operations and unconsolidated affiliates or otherwise
convert local currencies into U.S. dollars. These limitations could adversely affect our ability to access cash from these operations.

See further discussion of foreign exchange risks and controls under Item 7A. “Quantitative and Qualitative Disclosures

about Market Risk” included elsewhere in this Annual Report.

Our dependence on a small number of helicopter manufacturers and lessors poses a significant risk to our business and
prospects, including when we seek to grow our business.

We contract with a small number of manufacturers and lessors for most of our aircraft expansion, replacement and leasing
needs. If any of the manufacturers face production delays due to, for example, natural disasters, labor strikes or availability of
skilled labor, we may experience a significant delay in the delivery of previously ordered aircraft. During these periods, we may
not be able to obtain orders for additional aircraft with acceptable pricing, delivery dates or other terms. Also, we have operating
leases for many of our helicopters. The number of companies that provide leasing for helicopters is limited. If any of these leasing
companies face financial setbacks, we may experience delays or restrictions in our ability to lease aircraft. Delivery delays or our
inability to obtain acceptable aircraft orders or lease aircraft could adversely affect our revenue and profitability and could jeopardize
our ability to meet the demands of our clients and grow our business. Additionally, lack of availability of new aircraft resulting
from a backlog in orders could result in an increase in prices for certain types of new and used helicopters.

If any of the helicopter manufacturers we contract with, the government bodies that regulate them or other parties identify
safety issues with helicopter models we currently operate or that we intend to acquire, we may be required to suspend flight
operations, as was done with the S-76C and H225 aircraft. If we are forced to suspend operations of helicopter models, our business,
financial condition and results of operations during any period in which flight operations are suspended could be affected.

A shortfall in availability of aircraft components and parts required for maintenance and repairs of our helicopter and fixed
wing aircraft and supplier cost increases could adversely affect us.

In connection with the required maintenance and repairs performed on our aircraft in order for them to stay fully operational
and available for use in our operations, we rely on a few key vendors for the supply and overhaul of components fitted to our
aircraft. These vendors have historically worked at or near full capacity supporting the aircraft production lines and the maintenance
requirements of various government and civilian aircraft operators that may also operate at or near capacity in certain industries,
including operators such as us who support the energy industry. Such conditions can result in backlogs in manufacturing schedules
and some parts being in limited supply from time to time, which could have an adverse impact upon our ability to maintain and
repair our aircraft. To the extent that these suppliers also supply parts for aircraft used by governments in military operations, parts
delivery for our aircraft may be delayed. Our inability to perform timely maintenance and repairs can result in our aircraft being
underutilized, which could have an adverse impact on our operating results and financial condition. Furthermore, our operations
in remote locations, where delivery of these components and parts could take a significant period of time, may also impact our
ability to maintain and repair our aircraft. While every effort is made to mitigate such impact, this may pose a risk to our operating
results. Additionally, supplier cost increases for critical aircraft components and parts also pose a risk to our operating results.
Cost increases for contracted services are passed through to our clients through rate increases where possible, including as a
component of contract escalation charges. However, as certain of our contracts are long-term in nature, cost increases may not be
adjusted in our contract rates until the contracts are up for renewal.

Additionally, operation of a global fleet of aircraft requires us to carry spare parts inventory across our global operations to
perform scheduled and unscheduled maintenance activity. Changes in the aircraft model types of our fleet or the timing of exits
from model types can result in inventory levels in excess of those required to support the fleet over the remaining life of the fleet.
Additionally, other parts may become obsolete or dormant given changes in use of parts on aircraft and maintenance needs. These
fleet changes or other external factors can result in impairment of inventory balances where we expect that excess, dormant or
obsolete inventory will not recover its carrying value through sales to third parties or disposal.

Our future growth depends significantly on the level of international oil and gas activity and our ability to operate outside of
the North Sea and the U.S. Gulf of Mexico.

Our future growth will depend significantly on our ability to expand into markets outside of the North Sea and the U.S. Gulf

of Mexico. Expansion of our business depends on our ability to operate in these other regions.

Expansion of our business outside of the North Sea and the U.S. Gulf of Mexico may be adversely affected by:

•

local regulations restricting foreign ownership of helicopter operators;

requirements to award contracts to local operators; and

the number and location of new drilling concessions granted by foreign governments.

We cannot predict the restrictions or requirements that may be imposed in the countries in which we operate. If we are unable
to continue to operate or retain contracts in markets outside of the North Sea and the U.S. Gulf of Mexico, our operations outside
of the North Sea and the U.S. Gulf of Mexico may not grow, and our future business, financial condition and results of operations
may be adversely affected.

Our failure to attract and retain qualified personnel could have an adverse effect on us.

Loss of the services of key management personnel at our corporate and regional headquarters without being able to attract
personnel of equal ability could have a material adverse effect upon us. Further, Title 49 of the Transportation Code in the U.S.
and other statutes require our President and two-thirds of our board of directors and other managing officers be U.S. citizens. Our
failure to attract and retain qualified executive personnel or for such executive personnel to work well together or as effective
leaders in their respective areas of responsibility could have a material adverse effect on our current business and future growth.

Our ability to attract and retain qualified pilots, mechanics and other highly-trained personnel is an important factor in
determining our future success. For example, many of our clients require pilots with very high levels of flight experience. The
market for these experienced and highly-trained personnel is competitive and may become more competitive. Accordingly, we
cannot assure you that we will be successful in our efforts to attract and retain such personnel. Some of our pilots, mechanics and
other personnel, as well as those of our competitors, are members of military reserves who have been, or could be, called to active
duty. If significant numbers of such personnel are called to active duty, it could reduce the supply of such workers and likely
increase our labor costs. Additionally, the addition of new aircraft types to our fleet or a sudden change in demand for a specific
aircraft type, as happened with the Sikorsky S-92 aircraft type in response to the H225 grounding, may require us to retain additional
pilots, mechanics and other flight-related personnel.

A number of personnel departed the company during the current oil and gas industry downturn, and we may be unable to
take advantage of current opportunities in the industry downturn with our reduced workforce. We also may be unable to timely
replace such personnel when the industry emerges from the current downturn. Our failure to attract and retain qualified personnel
could have a material adverse effect on our current business and future growth.

Labor problems could adversely affect us.

Certain of our employees in the U.K., Norway, Nigeria, the U.S. and Australia (collectively, about 51% of our employees)
are represented under collective bargaining or union agreements with 92% of these employees being represented by collective
bargaining agreements and/or unions that have expired or will expire in one year. Disputes over the terms of these agreements or
our potential inability to negotiate acceptable contracts with the unions that represent our employees under these agreements could
result in strikes, work stoppages or other slowdowns by the affected workers. Periodically, certain groups of our employees who
are not covered under a collective bargaining agreement consider entering into such an agreement. Further, if our unionized workers
engage in an extended strike, work stoppage or other slowdown, other employees elect to become unionized, existing labor
agreements are renegotiated, or future labor agreements contain terms that are unfavorable to us, we could experience a disruption
of our operations or higher ongoing labor costs, which could adversely affect our business, financial condition and results of
operations.

See Item 1. “Business — Employees” included elsewhere in this Annual Report for further discussion on the status of

collective bargaining or union agreements.

Our operations are subject to weather-related and seasonal fluctuations.

Our operations can be impaired by harsh weather conditions. Poor visibility, high wind, heavy precipitation, sand storms
and volcanic ash can affect the operation of helicopters and fixed wing aircraft and result in a reduced number of flight hours. A
significant portion of our operating revenue is dependent on actual flight hours, and a substantial portion of our direct cost is fixed.
Thus, prolonged periods of harsh weather can have a material adverse effect on our business, financial condition and results of
operations. In addition, severe weather patterns, including those resulting from climate change, could affect the operation of
helicopters and fixed wing aircraft and result in a reduced number of flight hours, which may have a material adverse effect on
our business, financial condition and results of operations.

The fall and winter months have fewer hours of daylight, particularly in the North Sea and Canada. While some of our
helicopters are equipped to fly at night, we generally do not do so. In addition, drilling activity in the North Sea and Canada is
lower during the winter months than the rest of the year. Anticipation of harsh weather during this period causes many oil and gas
companies to limit activity during the winter months. Consequently, flight hours are generally lower during these periods, typically
resulting in a reduction in operating revenue during those months. Accordingly, our reduced ability to operate in harsh weather
conditions and darkness may have a material adverse effect on our business, financial condition and results of operations.

The Harmattan, a dry and dusty West African trade wind, blows in Nigeria between the end of November and the middle
of March. The heavy amount of dust in the air can severely limit visibility and block the sun for several days, comparable to a
heavy fog. We are unable to operate aircraft during these harsh conditions. Consequently, flight hours may be lower during these
periods resulting in reduced operating revenue, which may have a material adverse effect on our business, financial condition and
results of operations.

In the U.S. Gulf of Mexico, the months of December through March typically have more days of harsh weather conditions
than the other months of the year. Heavy fog during those months often limits visibility and flight activity. In addition, in the Gulf
of Mexico, June through November is tropical storm and hurricane season, and in Australia, November through April is cyclone
season. When a weather event is about to enter or begins developing in these regions, helicopter flight activity may increase
because of evacuations of offshore workers. However, during such an event, we are unable to operate in the area of the storm. In
addition, as a significant portion of our facilities are located along the coast of these regions, extreme weather may cause substantial
damage to our property in these locations, including possibly aircraft. Additionally, we incur costs in evacuating our aircraft,
personnel and equipment prior to tropical storms, hurricanes and cyclones.

Failure to develop or implement new technologies could affect our results of operations.

Many of the aircraft that we operate are characterized by changing technology, introductions and enhancements of models
of aircraft and services and shifting client demands, including technology preferences. Our future growth and financial performance
will depend in part upon our ability to develop, market and integrate new services such as Sky-Futures, which is the leading
provider of drone inspection data services for the oil and gas industry, and to accommodate the latest technological advances and
client preferences. In addition, the introduction of new technologies or services that compete with our services could result in our

revenue decreasing over time. If we are unable to upgrade our operations or fleet with the latest technological advances in a timely
manner, or at all, our business, financial condition and results of operations could suffer.

We are increasingly dependent on information technology, and if we are unable to protect against service interruptions, data
corruption, cyber attacks or network security breaches, our operations could be disrupted and our business could be negatively
impacted.

Our business is increasingly dependent upon information technology networks and systems to process, transmit and store
electronic and financial information, to capture knowledge of our business, and to communicate within our company and with
clients, suppliers, partners and other stakeholders. These information technology systems, some of which are managed by third
parties, may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing
software, databases or components thereof, power outages, hardware failures, computer viruses, cyber attacks, telecommunication
failures, user errors or catastrophic events. Our information technology systems are becoming increasingly integrated on a global
basis, so damage, disruption or shutdown to the system could result in a more widespread impact. If our information technology
systems suffer severe damage, disruption or shutdown, and our business continuity plans do not effectively resolve the issues in
a timely manner, we could experience business disruptions and transaction errors causing a material adverse effect on our business,
financial condition and results of operations.

In addition, cyber attacks could lead to potential unauthorized access and disclosure of confidential information, including
the Personally Identifiable Information of our customers and employees. Cyber attacks could also lead to data loss, data corruption,
communication interruption or other operational disruptions within our business. There is no assurance that we will not experience
cyber attacks and suffer losses in the future. Further, as the methods of cyber attacks continue to evolve, we may be required to
expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate any cyber
attacks.

Downgrades in our credit ratings could impact our ability to access capital and materially adversely affect our business, financial
condition and results of operations.

Credit rating agencies continually review their ratings for the companies that they follow, including us. Credit rating agencies
also evaluate the industries in which we and our affiliates operate as a whole and may change their credit rating for us based on
their overall view of such industries. Both Moody’s and Standard and Poor’s downgraded our ratings as a result of the oil industry
downturn and its effects on our financial results. There can be no assurance that any rating assigned to our currently outstanding
public debt securities will remain in effect for any given period of time or that any such ratings will not be further lowered,
suspended or withdrawn entirely by a rating agency if, in that rating agency’s judgment, circumstances so warrant.

A further downgrade of our credit ratings could, among other things:

•

limit our ability to access capital or otherwise adversely affect the availability of other new financing on favorable
terms, if at all;

result in more restrictive covenants in agreements governing the terms of any future indebtedness that we may incur;

cause us to refinance indebtedness with less favorable terms and conditions, which debt may require collateral and
restrict, among other things, our ability to pay distributions or repurchase shares;

increase our cost of borrowing;

adversely affect the market price of our outstanding debt securities; and

impair our business, financial condition and results of operation.

We operate in many international areas through entities that we do not control and are subject to government regulation that
limits foreign ownership of aircraft companies in favor of domestic ownership.

We conduct many of our international operations through entities in which we have a noncontrolling investment or through
strategic alliances with foreign partners. For example, we have acquired interests in, or in some cases have lease and service
agreements with, entities that operate aircraft in Brazil, Canada and Egypt. We provide engineering and administrative support to
certain of these entities. We derive significant amounts of lease revenue, service revenue, equity earnings and dividend income
from these entities. In fiscal years 2017, 2016 and 2015, we received approximately $71.5 million, $78.9 million and $87.7 million,
respectively, of revenue from the provision of aircraft and other services to unconsolidated affiliates. As a result of not owning a
majority interest or maintaining voting control of our unconsolidated affiliates, we do not have the ability to control their policies,
management or affairs. The interests of persons who control these entities or partners may differ from ours, and may cause such

entities to take actions that are not in our best interest. If we are unable to maintain our relationships with our partners in these
entities, we could lose our ability to operate in these areas, potentially resulting in a material adverse effect on our business,
financial condition and results of operations. Additionally, an operational incident involving one of the entities over which we do
not have operational control may nevertheless cause us reputational harm.

We are subject to governmental regulation that limits foreign ownership of aircraft companies in favor of domestic ownership.
Based on regulations in various markets in which we operate, our aircraft may be subject to deregistration and we may lose our
ability to operate within these countries if certain levels of local ownership are not maintained. Deregistration of our aircraft for
any reason, including foreign ownership in excess of permitted levels, could have a material adverse effect on our ability to conduct
operations within these markets. We cannot assure you that there will be no changes in aviation laws, regulations or administrative
requirements or the interpretations or applications thereof that could restrict or prohibit our ability to operate in certain regions.
Any such restriction or prohibition on our ability to operate may have a material adverse effect on our business, financial condition
and results of operations. See further discussion in Item 1. “Business — Governmental Regulation” included elsewhere in this
Annual Report.

We are subject to legal compliance risks.

As a global business, we are subject to complex laws and regulations in the U.S., the U.K. and other countries in which we
operate. These laws and regulations relate to a number of aspects of our business, including anti-bribery laws, interactions with
government officials and other third parties, import and export controls, the payment of taxes, employment and labor relations,
fair competition, data privacy protections, securities regulation, and other regulatory requirements affecting trade and investment.
The application of these laws and regulations to our business is often unclear and may sometimes conflict. Compliance with these
laws and regulations may involve significant costs or require changes in our business practices that could result in reduced revenue
and profitability. Non-compliance could also result in significant fines, damages, and other criminal sanctions against us, our
officers or our employees, prohibitions or additional requirements on the conduct of our business and damage our reputation.
Certain violations of law could also result in suspension or debarment from government contracts. We also incur additional legal
compliance costs associated with our global regulations. In many foreign countries, particularly those with developing economies,
it may be customary for others to engage in business practices that are prohibited by laws such as the FCPA, the U.K. Bribery Act
and the BCCA in Brazil, an anti-bribery law that is similar to the FCPA and U.K. Bribery Act. Although we implement policies
and procedures designed to ensure compliance with these laws, there can be no assurance that all of our employees, contractors,
agents, and business partners will not take action in violation with our internal policies. Any such violation of the law or even
internal policies could have a material adverse effect on our business, financial condition and results of operations.

Actions taken by agencies empowered to enforce governmental regulations could increase our costs and reduce our ability to
operate successfully.

Our operations are regulated by governmental agencies in the various jurisdictions in which we operate. These agencies
have jurisdiction over many aspects of our business, including personnel, aircraft and ground facilities. Statutes and regulations
in these jurisdictions also subject us to various certification and reporting requirements and inspections regarding safety, training
and general regulatory compliance. Other statutes and regulations in these jurisdictions regulate the offshore operations of our
clients. The agencies empowered to enforce these statutes and regulations may suspend, curtail or require us to modify our
operations. In April 2016, the crash of a competitor's H225 in Norway in which eleven passengers and two crew members lost
their lives resulted in the grounding of such aircraft in the U.K. and Norway. At this time the investigation is still underway and
there have been no additional regulations issued by government authorities lifting the grounding in the U.K. and Norway. However,
additional directive requirements in the future could present North Sea operators, including us, with significant operational
challenges. A suspension or substantial curtailment of our operations for any prolonged period, and any substantial modification
of our current operations, could have a material adverse effect on our business, financial condition and results of operations. See
further discussion in Item 1. “Business — Government Regulation” and “Business - Environmental” included elsewhere in this
Annual Report.

Adverse results of legal proceedings could materially and adversely affect our business, financial condition and results of
operations.

We are currently subject to and may in the future be subject to legal proceedings and claims that arise out of the ordinary
conduct of our business. Results of legal proceedings cannot be predicted with certainty. Irrespective of merit, litigation may be
both lengthy and disruptive to our operations and could cause significant expenditure and diversion of management attention. We
may face significant monetary damages or injunctive relief against us that could materially adversely affect a portion of our business
operations or materially and adversely affect our business, financial condition and results of operations should we not prevail in
certain matters.

Negative publicity may adversely impact us.

Media coverage and public statements that insinuate improper actions by us, our unconsolidated affiliates, or other companies
in our industry, regardless of their factual accuracy or truthfulness, may result in negative publicity, litigation or governmental
investigations by regulators. Addressing negative publicity and any resulting litigation or investigations may distract management,
increase costs and divert resources. Negative publicity may have an adverse impact on our reputation, the morale of our employees
and the willingness of passengers to fly on our aircraft and those of our competitors, which could adversely affect our business,
financial condition and results of operations.

Environmental regulations and liabilities may increase our costs and adversely affect us.

Our operations are subject to U.S. federal, state and local, and foreign environmental laws and regulations that impose
limitations on the discharge of pollutants into the environment and establish standards for the treatment, storage, recycling and
disposal of toxic and hazardous wastes. The nature of the business of operating and maintaining aircraft requires that we use, store
and dispose of materials that are subject to environmental regulation. Environmental laws and regulations change frequently, which
makes it impossible for us to predict their cost or impact on our future operations. Liabilities associated with environmental matters
could have a material adverse effect on our business, financial condition and results of operations. We could be exposed to strict,
joint and several liability for cleanup costs, natural resource damages and other damages as a result of our conduct that was lawful
at the time it occurred or the conduct of, or conditions caused by, prior operators or other third parties. Additionally, any failure
by us to comply with applicable environmental laws and regulations may result in governmental authorities taking action against
us that could adversely impact our operations and financial condition, including the:

•

issuance of administrative, civil and criminal penalties;

denial or revocation of permits or other authorizations;

imposition of limitations on our operations; and

performance of site investigatory, remedial or other corrective actions.

Changes in environmental laws or regulations, including laws relating to greenhouse emissions or other climate change
concerns, could require us to devote capital or other resources to comply with those laws and regulations. These changes could
also subject us to additional costs and restrictions, including increased fuel costs. For additional information see Item 1. “Business
— Environmental” and Item 3. “Legal Proceedings” included elsewhere in this Annual Report.

Regulations limit foreign ownership of our company, which could reduce the price of our Common Stock and cause owners
of our Common Stock who are not U.S. persons to lose their voting rights.

Our restated certificate of incorporation provides that persons or entities that are not “citizens of the U.S.” (as defined in the
Federal Aviation Act of 1958) shall not collectively own or control more than 25% of the voting power of our outstanding capital
stock (the “Permitted Foreign Ownership Percentage”) and that, if at any time persons that are not citizens of the U.S. nevertheless
collectively own or control more than the Permitted Foreign Ownership Percentage, the voting rights of shares owned by
stockholders who are not citizens of the U.S. shall automatically be suspended, in the reverse chronological order of the dates and
times of registry of such shares in our stock records, until the voting rights of a sufficient number thereof shall have been suspended
so that the number of shares owned by stockholders who are not citizens of the U.S. that continue to have voting rights equals the
greatest whole number that is less than or equal to the Permitted Foreign Ownership Percentage. Shares held by persons who are
not citizens of the U.S. may lose their associated voting rights and be redeemed as a result of these provisions. These restrictions
may have a material adverse impact on the liquidity or market value of our Common Stock because holders may be unable to
transfer our Common Stock to persons who are not citizens of the U.S.

If we do not restrict the amount of foreign ownership of our Common Stock, we might lose our status as a U.S. air carrier and
be prohibited from operating aircraft in the U.S., which could adversely impact our business, financial condition and results
of operations.

Since we hold the status of a U.S. air carrier under the regulations of both the U.S. Department of Transportation and the
FAA and we engage in the operating and dry-leasing of aircraft in the U.S., we are subject to regulations pursuant to Title 49 of
the Transportation Code (the “Transportation Code”) and other statutes (collectively, the “Aviation Acts”). The Transportation
Code requires that certificates to engage in air transportation be held only by citizens of the U.S. as that term is defined in the
relevant section of the Transportation Code. That section requires: (i) that our President and two-thirds of our board of directors
and other managing officers be U.S. citizens; (ii) that at least 75% of our outstanding voting stock be owned by U.S. citizens; and
(iii) that we must be under the actual control of U.S. citizens. Further, our aircraft operating in the U.S. must generally be registered
in the U.S. In order to register such aircraft under the Aviation Acts, we must be owned or controlled by U.S. citizens. Although
28

our restated certificate of incorporation and amended and restated by-laws contain provisions intended to ensure compliance with
the provisions of the Aviation Acts, a failure to maintain compliance could result in the loss of our air carrier status prohibiting us
from both operating as an air carrier and operating aircraft in the U.S. during any period in which we did not comply with these
regulations, and thereby adversely affect our business, financial condition and results of operations.

Risks Relating to Our Level of Indebtedness

Our level of indebtedness could adversely affect our ability to obtain financing, impair our ability to fulfill our obligations
under our indebtedness and limit our ability to adjust to changing market conditions.

As of March 31, 2017, we had approximately $1.3 billion of outstanding indebtedness. In addition, we had $260.3 million
of availability for borrowings under our Revolving Credit Facility as of March 31, 2017, subject to our maintenance of financial
covenants and other conditions. Although the agreements governing our Senior Credit Facilities, $200 million five-year secured
equipment term loan with Macquarie Bank Limited (the “Macquarie Debt”) and two seven-year British pound sterling denominated
secured equipment term loans for an aggregate $200 million U.S. dollar equivalent with Lombard North Central Plc, part of the
Royal Bank of Scotland (the “Lombard Debt”) and the indenture governing our 6 ¼% Senior Notes due 2022 (“6 ¼% Senior
Notes”) contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications
and exceptions, and we could incur substantial additional indebtedness in the future.

Our level of indebtedness may have important consequences to our business, including:

•

impairing our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions
or other general corporate purposes;

requiring us to dedicate a substantial portion of our cash flow to the payment of principal and interest on our
indebtedness, which reduces the availability of our cash flow to fund working capital, capital expenditures,
acquisitions and other general corporate purposes or to repurchase our notes upon a change of control;

subjecting us to the risk of increased sensitivity to interest rate increases on our indebtedness with variable interest
rates, including borrowings under our Senior Credit Facilities;

increasing the possibility of an event of default under the financial and other covenants contained in our debt
agreements; and

limiting our ability to adjust to rapidly changing market conditions, reducing our ability to withstand competitive
pressures and making us more vulnerable to a downturn in general economic conditions or our business than our
competitors with less debt.

If we are unable to generate sufficient cash flow from operations in the future to service our debt, we may be required to
refinance all or a portion of our existing debt or obtain additional financing. There is no assurance that any such refinancing could
be possible or that any additional financing could be obtained. Our inability to obtain such refinancing or financing could have a
material adverse effect on us.

To service our indebtedness and lease obligations we will continue to require a significant amount of cash, and our ability to
generate cash depends on many factors beyond our control.

Our ability to make scheduled payments of principal or interest with respect to our indebtedness and lease obligations will
depend on our ability to generate cash and on our financial results. Our ability to generate cash depends on the demand for our
services, which is subject to levels of activity in offshore oil and gas exploration, development and production, general economic
conditions, the ability of our affiliates to generate and distribute cash flows, and financial, competitive, regulatory and other factors
affecting our operations, many of which are beyond our control. We cannot assure you that our operations will generate sufficient
cash flow or that future borrowings will be available to us under our Revolving Credit Facility or otherwise in an amount sufficient
to enable us to pay our indebtedness or lease obligations or to fund our other liquidity needs.

Covenants in our debt agreements may restrict the manner in which we can operate our business.

Our Senior Credit Facilities and the indenture governing our 6 ¼% Senior Notes limit, among other things, our ability and

the ability of our restricted subsidiaries to:

•

borrow money or issue guarantees;

pay dividends, redeem capital stock or make other restricted payments;

incur liens to secure indebtedness;

• make certain investments;

•

sell certain assets;

enter into transactions with our affiliates; or

• merge with another person or sell substantially all of our assets.

If we fail to comply with these and other covenants, we would be in default under our Senior Credit Facilities and the
indenture governing the 6 ¼% Senior Notes, and the principal and accrued interest on our outstanding indebtedness may become
due and payable. In addition, our Senior Credit Facilities contain, and our future indebtedness agreements may contain, additional
affirmative and negative covenants. As a result, our ability to respond to changes in business and economic conditions and to
obtain additional financing, if needed, may be significantly restricted, and we may be prevented from engaging in transactions
that might otherwise be considered beneficial to us.

Our Senior Credit Facilities also require us, and our future credit facilities may require us, to maintain specified financial
covenants. Our ability to meet these financial covenants can be affected by events beyond our control, and we cannot assure you
that we will meet these tests in the future. The breach of any of these covenants could result in a default under our Senior Credit
Facilities. Upon the occurrence of an event of default under our existing or future credit facilities, the lenders could elect to declare
all amounts outstanding under such credit facilities, including accrued interest or other obligations, to be immediately due and
payable. There can be no assurance that our assets could be sufficient to repay all of our indebtedness in full.

The agreements governing certain of our indebtedness, including the indenture governing the 6 ¼% Senior Notes, the credit
agreements governing our Senior Credit Facilities, contain cross-default provisions. Under these provisions, a default under one
agreement governing our indebtedness may constitute a default under our other agreements of indebtedness.

Failure to comply with covenants contained in certain of our lease agreements could limit our ability to maintain our leased
aircraft fleet and could adversely affect our business.

We have a significant amount of fixed obligations related to operating leases, including aircraft leases. The terms of our
aircraft lease agreements contain covenants that impose certain limitations on us. Such lease agreements limit, among other things,
our ability to utilize aircraft in certain jurisdictions and/or to sublease aircraft, and may contain restrictions upon a change of
control. A breach of lease covenants could result in an obligation to repay amounts outstanding under the lease, including rent. A
breach of lease covenants with respect to the return of aircraft to our lessors could also result in an obligation to pay holdover rent
beyond the scheduled lease expiration date for such aircraft and/or increased maintenance and repair costs. If any such event
occurs, we may not be able to pay all amounts due under the leases or to refinance such leases on terms satisfactory to us or at all,
which could have a material adverse effect on our business, financial condition and results of operations.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

The number and types of aircraft we operate are described in Item 1. “Business — Overview” above. In addition, we lease
various office and operating facilities worldwide, including facilities at the Acadiana Regional Airport in New Iberia, Louisiana,
the Redhill Aerodrome near London, England, the Aberdeen Airport, Scotland, along the U.S. Gulf of Mexico and in Bergen and
Stavanger, Norway, and numerous residential locations near our operating bases or the bases of our affiliates in the U.K., Norway,
Australia, Russia, Nigeria, Canada and Trinidad, which we use primarily for housing pilots and staff supporting those operations.
We have ten SAR bases as follows: Caernarfon, Humberside, Inverness, Lee-on-Solent, Lydd, Newquay, Prestwick, St. Athan,
Stornoway and Sumburgh. We also lease office space in a building in Houston, Texas, which we use as our corporate headquarters
and for other business purposes. Eastern Airways owns a majority controlling stake in the Humberside Airport in Kirmington,
United Kingdom. Additionally, we have multiple properties in Titusville, Florida, where the largest campus of Bristow Academy
is located. These facilities are generally suitable for our operations and can be replaced with other available facilities if necessary.

Additional information about our properties can be found in Note 7 in the “Notes to Consolidated Financial Statements”
included elsewhere in this Annual Report (under the captions “Aircraft Purchase Contracts” and “Operating Leases”). A detail of
our long-lived assets by geographic area as of March 31, 2017 and 2016 can be found in Note 11 in the “Notes to Consolidated
Financial Statements” included elsewhere in this Annual Report.

Item 3. Legal Proceedings

Nigerian Litigation

In November 2005, two of our consolidated foreign affiliates were named in a lawsuit filed with the High Court of Lagos
State, Nigeria by Mr. Benneth Osita Onwubalili and his affiliated company, Kensit Nigeria Limited, which allegedly acted as
agents of our affiliates in Nigeria. The claimants allege that an agreement between the parties was terminated without justification
and seek damages of $16.3 million. We responded to this claim in early 2006. There has been minimal activity on this claim since
then.

Environmental Contingencies

The EPA has in the past notified us that we are a potential responsible party, or PRP, at three former waste disposal facilities
that are on the National Priorities List of contaminated sites. Under the Superfund law, persons who are identified as PRPs may
be subject to strict, joint and several liability for the costs of cleaning up environmental contamination resulting from releases of
hazardous substances at National Priorities List sites. Although we have not yet obtained a formal release of liability from the EPA
with respect to any of the sites, we believe that our potential liability in connection with these sites is not likely to have a material
adverse effect on our business, financial condition and results of operations.

Other Matters

Although infrequent, aircraft accidents have occurred in the past, and the related losses and liability claims have been covered
by insurance subject to various risk retention factors. We also are a defendant in certain claims and litigation arising out of operations
in the normal course of business. In the opinion of management, uninsured losses, if any, will not be material to our financial
position, results of operations or cash flows.

Item 4. Mine Safety Disclosures

None.

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our Common Stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “BRS”. The following table

shows the range of prices for our Common Stock during each quarter of our last two fiscal years.

PART II

First Quarter.................................................................................................
Second Quarter ............................................................................................
Third Quarter ...............................................................................................
Fourth Quarter .............................................................................................

Fiscal Year Ended March 31,

2017

2016

High
$ 23.62
14.38
21.88
21.78

Low
$ 10.80
9.17
9.46
12.55

High
$ 64.64
53.63
37.19
26.71

Low
$ 52.22
25.71
21.93
11.02

On May 19, 2017, the last reported sale price of our Common Stock on the NYSE was $14.18 per share. As of May 19,

2017, there were 363 holders of record of our Common Stock.

We paid quarterly dividends of $0.07 per share during each quarter of fiscal year 2017 and quarterly dividends of $0.34 per
share during the first, second and third quarters of fiscal year 2016 and $0.07 per share during the fourth quarter of fiscal year
2016. On May 18, 2017, our board of directors approved a dividend of $0.07 per share of our Common Stock, payable on June 22,
2017 to shareholders of record on June 7, 2017. During fiscal years 2017 and 2016, we paid dividends totaling $9.8 million and
$38.1 million, respectively, to our shareholders. The declaration of future dividends is at the discretion of our board of directors
and subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable
law, and our debt agreements.

We did not repurchase any shares of our Common Stock during fiscal years 2017 and 2016. During fiscal year 2015, we
repurchased 1,160,940 shares of our Common Stock for $80.8 million. As of November 4, 2016, our $150.0 million of remaining
repurchase authority that was authorized by our board of directors had expired and was not renewed.

The following graph compares the cumulative 5-year total shareholder return on our Common Stock relative to the cumulative
total returns of the S&P 500 index, the PHLX Oil Service Sector index and the Simmons Offshore Transportation Services Group.
We have included the Simmons Offshore Transportation Services Group as management reviews this data internally and believes
that this comparison is most representative to our peer group. The graph assumes that the value of the investment in our Common
Stock and in each of the indices (including reinvestment of dividends) was $100 on March 31, 2012 and tracks it through March 31,
2017.

COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN*
Among Bristow Group Inc., the S&P 500 Index, the PHLX Oil Service Sector Index,

and the Simmons Offshore Transportation Services Group

*$100 invested on 3/31/12 in stock or index, including reinvestment of dividends.
Fiscal year ending March 31.

Bristow Group Inc.
S&P 500 Index
PHLX Oil Service Sector Index
Simmons Offshore Transportation Services Group

March 31,
2012
$ 100.00
$ 100.00
$ 100.00
$ 100.00

March 31,
2013
$ 140.47
$ 113.96
$ 105.37
$ 103.52

March 31,
2014
$ 163.15
$ 138.87
$ 132.99
$ 120.32

March 31,
2015
$ 119.81
$ 156.55
$ 100.77
70.65
$

March 31,
2016
$
42.96
$ 159.34
83.59
$
45.99
$

March 31,
2017
$
35.23
$ 186.71
96.03
$
44.65
$

Item 6. Selected Financial Data

The following table contains our selected historical consolidated financial data. You should read this table along with Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial
Statements and the related notes thereto, all of which are included elsewhere in this Annual Report.

(1)

2017

(2)

2016

(3)

2015

(4)

2014

(5)

2013

Fiscal Year Ended March 31,

(In thousands, except per share data)

Statement of Income Data: (6)

Gross revenue .........................................................
Net income (loss) attributable to Bristow Group....
Basic earnings (loss) per common share ................
Diluted earnings (loss) per common share .............
Cash dividends declared per share..........................

$ 1,400,502
$ (170,536) $
(4.87) $
$
(4.87) $
$
$
0.28
$

$ 1,715,513

(72,442) $
(2.12) $
(2.12) $
$
1.09

$ 1,858,669
84,300
2.40
2.37
1.28

$ 1,669,582
186,737
$
5.15
$
5.09
$
1.00
$

$ 1,508,473
130,102
$
3.61
$
3.57
$
0.80
$

2017

2016

March 31,
2015

(In thousands)

2014

2013

Balance Sheet Data: (6)

Total assets..............................................................
Long-term obligations (7) ........................................

$ 3,113,847
$ 1,293,364

$ 3,262,945
$ 1,140,889

$ 3,230,720
864,422
$

$ 3,398,257
841,302
$

$ 2,950,692
787,269
$

_______________

(1) Results for fiscal year 2017 include goodwill impairment charges of $8.7 million ($7.1 million, net of tax and noncontrolling interest), $10.4 million
($6.8 million, net of tax) in additional depreciation due to fleet changes, $20.9 million ($15.0 million, net of tax) for organizational restructuring costs,
impairment of inventories of $7.6 million ($5.4 million, net of tax) and tax items of $59.5 million. Additional discussion of these items and other significant
items in fiscal year 2017 is included under Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive
Overview — Overview of Operating Results — Fiscal Year 2017 Compared to Fiscal Year 2016” included elsewhere in this Annual Report.

(2) Results for fiscal year 2016 include goodwill and intangible impairment charges of $49.7 million ($38.0 million, net of tax and noncontrolling interest),
$28.7 million ($20.6 million, net of tax) in additional depreciation due to fleet changes, $27.0 million ($19.1 million, net of tax) for organizational
restructuring costs, impairment of inventories of $5.4 million ($4.0 million, net of tax) and tax valuation allowances of $20.1 million. Additional discussion
of these items and other significant items in fiscal year 2016 is included under Item 7. “Management’s Discussion and Analysis of Financial Condition
and Results of Operations — Executive Overview — Overview of Operating Results — Fiscal Year 2017 Compared to Fiscal Year 2016” included
elsewhere in this Annual Report.

(3) Results for fiscal year 2015 include a gain on the sale of HCA of $3.9 million ($2.5 million, net of tax), impairment of inventories of $7.2 million ($5.7
million, net of tax) and $10.4 million ($8.0 million, net of tax) in additional depreciation due to fleet changes. Additional discussion of these items and
other significant items in fiscal year 2015 is included under Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Executive Overview — Overview of Operating Results — Fiscal Year 2016 Compared to Fiscal Year 2015” included elsewhere in this
Annual Report.

(4) Results for fiscal year 2014 include a gain on the sale of the FB Entities of $103.9 million ($67.9 million, net of tax), $12.7 million ($8.3 million net of
tax) in charges related to the cancellation of a potential financing, a $12.7 million ($10.1 million, net of tax) write-down of inventory spare parts to the
lower of cost or market value, $13.6 million ($8.8 million, net of tax) in lower earnings from Líder resulting primarily from a tax amnesty payment Líder
made to the Brazilian government, $8.6 million ($6.6 million, net of tax) related to losses from a hangar fire, $5.5 million ($6.5 million, net of tax) in
restructuring costs, $4.8 million ($3.1 million, net of tax) of CEO succession and officer separation costs and $0.6 million ($0.4 million, net of tax) of
goodwill impairment charges.

(5) Results for fiscal year 2013 include a gain on disposal of assets of $8.1 million ($6.4 million, net of tax), the retirement of our 7 ½% Senior Notes
(redemption premium and write-off of deferred financing costs) of $17.5 million ($11.4 million, net of tax), additional inventory allowances of $2.8
million ($2.2 million, net of tax), the correction of a calculation error related to foreign currency derivative transactions increasing our earnings from
Líder by $2.8 million ($1.8 million, net of tax), severance costs in the Southern North Sea of $2.2 million ($1.7 million, net of tax), the reversal of accrued
maintenance cost for the sale of AS332Ls that ultimately did not execute of $0.9 million ($0.7 million, net of tax) and the write-off of deferred financing
fees for the 364-Day Term Loan of $2.1 million ($1.3 million, net of tax).

(6) Results of operations and financial position of companies that we have acquired have been included beginning on the respective dates of acquisition and
include Airnorth (January 2015) and Eastern Airways (February 2014). Amounts also include our investment in Cougar (October 2012). On July 14,
2013, we sold our 50% interest in the FB Entities and on November 21, 2014, we sold our 50% interest in HCA.

(7)

Includes long-term debt and current maturities of long-term debt.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, should be read in
conjunction with “Forward-Looking Statements,” Item 1A. “Risk Factors” and our Consolidated Financial Statements for fiscal
years 2017, 2016 and 2015, and the related notes thereto, all of which are included elsewhere in this Annual Report.

Executive Overview

This Executive Overview only includes what management considers to be the most important information and analysis for
evaluating our financial condition and operating performance. It provides the context for the discussion and analysis of the financial
information that follows and does not disclose every item impacting our financial condition and operating performance.

See discussion of our business and the operations within our Industrial Aviation Services Segment under Item 1. “Business —

Overview” included elsewhere in this Annual Report.

Our Strategy

Our goal is to strengthen our position as the leading industrial aviation services provider to the offshore energy industry and
a leading industrial aviation services provider for civilian SAR and to pursue additional business opportunities that leverage our
strengths in these markets. Our vision is to be a safe, financially strong, diversified global leader, succeeding no matter how
challenging market conditions may be. To achieve this goal and vision, we intend to employ our “STRIVE” strategy as follows:

•

Sustain Target Zero Safety Culture. Safety will always be our number one focus. The best approach to be Target Zero is
continuously improve our safety systems and processes to allow us to become even safer and to build confidence in our
industry and among our regulators with respect to the safety of helicopter transportation globally.

Train and Develop our People. We continue to invest in employee training to ensure that we have the best workforce in
the industry. We believe that the skills, talent and dedication of our employees are our most important assets, and we
plan to continue to invest in them, especially in entry level learning, the continued control and ownership of our training
assets, and creation of leadership programming.

• Renew Commercial Strategy and Operational Excellence. We are in the process of renewing both our commercial strategy
to improve revenue productivity across our global markets and our operational strategy to serve our clients safely, reliably
and efficiently. We believe that we need to renew these strategies in order to thrive in an economy that is undergoing
long-term structural change.

•

Improve Balance Sheet and Return on Capital. We seek to continue to improve our balance sheet and liquidity and reduce
our capital costs, with a near term goal of debt reduction and profitability. To achieve this we have historically practiced
the principal of prudent balance sheet management and have proactively managed our liquidity position with cash flows
from operations, as well as external financings. These external financings have included the use of operating leases for
a target of approximately 35% of our LACE. The target recognizes that we will have variability above or below the target
of approximately 5% of our LACE due to timing of leases, purchases, disposals and lease terminations. As of March 31,
2017, commercial helicopters under operating leases accounted for 41% of our LACE. See “Liquidity and Capital
Resources — Financial Condition and Sources of Liquidity” included elsewhere in this Annual Report for further
discussion of our capital structure and liquidity. On May 18, 2017, our board of directors approved a dividend of $0.07
per share, our twenty-fifth consecutive quarterly dividend. Our board of directors has approved a dividend policy with a
goal of an annualized quarterly dividend payout ratio of approximately 20-30% of forward adjusted earnings per share;
however, actual dividend payments are at the discretion of the board of directors and may not meet or may exceed this
ratio.

• Value Added Acquisitions and Divestitures. We intend to pursue value-added acquisitions that not just make us bigger
but better; that improve our competitive posture to thrive in an economy that is undergoing long-term structural change.
We may also divest portions of our business or assets to narrow our product lines and reduce our operational footprint to
reduce leverage and improve return on capital.

• Execute on Bristow Transformation. We intend to sustain our strategy and the effective transformation of our business

by focusing on execution globally.

Market Outlook

Our core business is providing industrial aviation services to the worldwide oil and gas industry. We also provide public and
private sector SAR services and fixed wing transportation services. Our global operations and critical mass of helicopters provide
us with geographic and client diversity which helps mitigate risks associated with a single market or client.

As discussed above, we continue to seek ways to operate more efficiently and work with our clients to improve the efficiency
of their operations within our STRIVE strategy. We have achieved savings during fiscal years 2016 and 2017 by implementing
operating cost reduction initiatives. Further cost reductions and cash savings are anticipated across our business in fiscal year
2018.

Recent Events

Macquarie Debt — On February 1, 2017, one of our wholly-owned subsidiaries entered into a term loan credit agreement
for a $200 million five-year secured equipment term loan with Macquarie Bank Limited (the “Macquarie Debt”). The borrower's
obligations under the credit agreement are guaranteed by the Company and secured by 20 oil and gas aircraft. The financing funded
March 7, 2017. The proceeds from the financing were used to repay portions of our $200 million term loan credit facility (“Term
Loan Credit Facility”) and $350 million term loan (“Term Loan”). Borrowings under the financing bear interest at an interest rate
equal to the ICE Benchmark Administration Limited LIBOR (or the successor thereto) plus 5.35% per annum. In conjunction with
closing and funding this term loan, we entered into five separate lease agreements with Wells Fargo Bank Northwest, N.A., acting
as owner trustee for Macquarie Aerospace Inc., an affiliate of Macquarie Bank Limited, for five helicopters with lease terms
ranging from 60 to 63 months.

GE Commitment Letter — On February 2, 2017, we executed a commitment letter for an approximate six-year, $230 million
secured equipment financing with PK Transportation Finance Ireland Limited, a part of GE Capital Aviation Services (“GECAS”).
As part of this financing, which is subject to entering into definitive agreements, Milestone Aviation Group Limited (“Milestone”),
a GECAS company, will defer up to $25 million in lease rentals on certain H225 helicopters on lease to us. The financing is
intended to be secured by up to 20 oil and gas aircraft. Borrowings under the financing will bear interest at an interest rate equal
to the ICE Benchmark Administration Limited LIBOR (or the successor thereto) plus 5% per annum. We expect this financing to
close no later than June 30, 2017. The proceeds from the financing are expected to be used to repay amounts outstanding under
our existing bank indebtedness. As part of executing the commitment letter, we extended three Sikorsky S-92 leases by two years
each with Milestone.

Aircraft incident — We became aware of an incident involving another operator of the Sikorsky S-92 in the North Sea in
December 2016. The preliminary review suggests a reduction in tail rotor control authority. Subsequent to the accident, Sikorsky
issued a number of Air Service Bulletins (“ASBs”) and the Federal Aviation Administration issued an Emergency Airworthiness
Directive (“Emergency AD”) to enhance inspections and ongoing operational monitoring on the tail rotor pitch change shaft
bearing assembly. We acted immediately in each case to ensure ongoing compliance with the ASBs and Emergency AD across
our global fleet. The other operator’s incident remains under investigation by the U.K. Air Accidents Investigation Branch. It is
too early to determine whether or not any further action may be required or the impact of this on our future business, financial
condition and results of operations.

Lombard Debt — On November 11, 2016, certain of our subsidiaries entered into two seven-year British pound sterling
denominated secured equipment term loans for an aggregate $200 million U.S. dollar equivalent with Lombard North Central Plc,
part of the Royal Bank of Scotland (the “Lombard Debt”). In December 2016, the first loan in the amount of $109.9 million (GBP
89.1 million) funded and we prepaid scheduled principal payments of $4.5 million (GBP 3.7 million). In January 2017, the second
loan amount of $90.1 million (GBP 72.4 million) funded.

Brexit — In a referendum held on June 23, 2016, voters in the U.K. approved the exit of the U.K. (“Brexit”) from the E.U.
On March 29, 2017, the U.K. government commenced the exit process under Article 50 of the Treaty of the European Union by
notifying the European Council of the U.K.’s intention to leave the E.U. This notification starts a two-year time period for the
U.K. and the remaining E.U. Member States to negotiate a withdrawal agreement.

The decision by Nigeria's central bank to move to market-driven foreign currency trading — On June 20, 2016, Nigeria’s
central bank abandoned its 16-month peg to the U.S. dollar, which resulted in a 38% devaluation of the naira versus the U.S. dollar
from June 20 to June 30, 2016 and an additional 8% further devaluation of the naira versus the U.S. dollar from June 30, 2016 to
March 31, 2017. For discussion of the impact of changes in foreign currency exchange rates, including the naira, on our results,
see “— Overview of Operating Results — Fiscal Year 2017 Compared to Fiscal Year 2016” included elsewhere in this Annual
Report.

Impact of fleet changes — The management of our global aircraft fleet involves a careful evaluation of the expected demand
for industrial aviation services across global energy markets, including the type of aircraft needed to meet this demand. As offshore
oil and gas drilling and production globally moves to deeper water, more medium and large aircraft and newer technology aircraft
may be required. As older aircraft models come off of current contracts and are replaced by new aircraft, our management evaluates
our future needs for these aircraft models and ultimately the ability to recover our remaining investments in these aircraft through
sales into the aftermarket. We depreciate our aircraft over their expected useful life to the expected salvage value to be received
for the aircraft at the end of that life. Depending on the market for aircraft or changes in the expected future use of aircraft within
our fleet, we may record gains or losses on aircraft sales, impairment charges for aircraft operating or held for sale, or accelerate
or increase depreciation on aircraft used in our operations. In certain instances where a cash return can be made on newer aircraft
in excess of the expected return available through the provision of industrial aviation services, we may sell newer aircraft. The
number of aircraft sales and the amount of gains and losses recorded on these sales is unpredictable. While aircraft sales are
common in our business and are reflected in our operating results, gains and losses on aircraft sales may result in our operating
results not reflecting the ordinary operating performance of our primary business, which is providing industrial aviation services
to our clients. The gains and losses on aircraft sales and any impairment charges are not included in the calculation of adjusted
EBITDA, adjusted net income (loss) or adjusted earnings (loss) per share.

As part of an ongoing process to rationalize and simplify our global fleet of commercial helicopters, during fiscal year 2014
we implemented a plan to reduce the number of aircraft types in our fleet to eight model types in approximately five years and
six model types in approximately ten years. During fiscal year 2014, we completed our exit from five model types, in fiscal year
2015 we completed our exit from four model types while adding two model types and in fiscal year 2016 we completed our exit
from two model types. During fiscal year 2017, we added one model type resulting in 12 model types in our fleet as of March 31,
2017. As we modernize our fleet, the introduction of new technology aircraft types and other operating or market conditions may
temporarily slow fleet type reduction.

During fiscal year 2015, we recorded impairment charges of $36.1 million related to 27 held for sale aircraft, primarily
related to one large aircraft type we were in the process of removing from our fleet. Additionally, as we expected to complete the
disposal of the remaining aircraft of this type still operating as of March 31, 2015, we adjusted the salvage value and recorded
additional depreciation expense of $6.0 million during fiscal year 2015. Also during fiscal year 2015, we recorded accelerated
depreciation expense of $4.4 million for ten medium and one fixed wing aircraft. During fiscal years 2017 and 2016, we saw
further deterioration in market sales for aircraft resulting mostly from an increase in idle aircraft and reduced demand across the
offshore energy market. While other markets exist for certain aircraft model types, including utility, firefighting, government, VIP
transportation and tourism, the market for certain model type aircraft slowed. As a result of these market changes, we recorded
impairment charges of $12.5 million related to 14 held for sale aircraft during fiscal year 2017 and $29.6 million related to 16
held for sale aircraft during fiscal year 2016. Additionally, due to changes in estimated salvage values for our fleet of operational
aircraft and other changes in the timing of exiting certain aircraft from our operations, we recorded an additional $10.4 million
and $28.7 million in depreciation expense during fiscal years 2017 and 2016, respectively.

Changes in our forecasted cash flows during the three months ended December 31, 2016 triggered a review of our oil and
gas related property and equipment and Eastern Airways property and equipment for potential impairment. In accordance with
Accounting Standard Codification 360-10-35, we estimate future undiscounted cash flows to test the recoverability of our property
and equipment, which largely consists of our held for use aircraft. The determination of estimated future undiscounted cash flows
required us to use significant unobservable inputs including assumptions related to projected demand for services and rates. We
determined that the estimated future undiscounted cash flows were above the carrying value for our oil and gas related property
and equipment and Eastern Airways’ property and equipment as of December 31, 2016 and no impairment was recorded on these
assets. Future declines in operating performance or anticipated business outlook may reduce our estimated future undiscounted
cash flows and result in impairment of our oil and gas related property and equipment or Eastern Airways property and equipment.
We did not have any triggering events to test property and equipment or intangibles for impairment for the three months ended
March 31, 2017.

Goodwill impairment — During the three months ended September 30, 2015, we experienced rapid and significant declines
in the market value of our Common Stock which resulted from the downturn in the oil and gas industry due to reduced crude oil
prices. We identified this decline in market value of our Common Stock and an overall reduction in expected operating results
resulting from the downturn as indicators that the fair value of our goodwill could have fallen below its carrying amount. As a
result, we performed an interim goodwill impairment test as of September 30, 2015 and determined that the goodwill associated
with our Bristow Norway reporting unit within our Europe Caspian region and the goodwill associated with our Bristow Academy
reporting unit within Corporate and other was impaired. We performed our annual goodwill impairment test as of March 31, 2016
and as a result of a further decline in forecasted operational results determined that all of the goodwill associated with our Africa
region and a portion of the goodwill associated with Eastern Airways was impaired. In fiscal year 2016, we recognized a loss of
$41.6 million associated with the impairment of goodwill.

During the three months ended December 31, 2016, we noted an overall reduction in expected operating results for Eastern
Airways within our Europe Caspian region from the continued downturn in the oil and gas market and performed an interim
impairment test of goodwill for Eastern Airways. Based on this factor, we concluded that the fair value of our goodwill could have
fallen below its carrying value and that an interim period analysis of goodwill was required. Therefore, we performed an interim
impairment test of goodwill for Eastern Airways as of December 31, 2016, noting that the estimated fair value of Eastern Airways
was below its carrying value, resulting in an impairment of all of the remaining goodwill related to Eastern Airways of $8.7 million.
The only remaining goodwill recorded as of March 31, 2017 related to Airnorth within our Asia Pacific region. We did not have
any triggering events requiring us to quantitatively test Airnorth for impairment during fiscal year 2017.

Selected Regional Perspectives

Brazil represents a significant part of our long term helicopter growth outlook due to its concentration and size of its offshore
oil reserves. However, in the short term, Brazil and specifically Petrobras, continues to evidence uncertainty as the price of oil
and Petrobras’ restructuring efforts have impacted the helicopter industry. Petrobras did not release any new tenders for multiple
medium and large aircraft that were expected to commence in calendar year 2016. While this represents a contraction in short-
term demand, Brazil’s impact on long-term helicopter demand is expected to be material. Petrobras represented 62% of Líder’s
operating revenue in fiscal year 2017.

The Brazilian government has revisited the regulations on the oil and gas industry and made significant changes to the
Brazilian market, including removing the requirement that Petrobras have 30% participation on all exploratory blocks, removing
the requirement that Petrobras be the operator of all pre-salt blocks and approving the next round of licensing for new exploration
blocks (six years after the last successful round). In addition, the Brazilian government is currently reviewing local content
requirements, which has led other operators to request information and/or proposals. Petrobras’ new management has implemented
a five-year business and management plan focused on divestment, mostly of its non-core business. Overall, the Brazilian market
outlook has improved compared to the prior year for Líder with opportunities for growth.

Currency fluctuations continue to make it difficult to predict the earnings from our Líder investment. These currency
fluctuations, which primarily do not impact Líder’s cash flow from operations, had a significant negative impact on Líder’s results
in fiscal years 2015, 2016 and 2017, impacting our earnings from unconsolidated affiliates. Earnings from unconsolidated affiliates,
net of losses, on our consolidated statements of operations, is included in calculating adjusted EBITDA, adjusted net income (loss)
and adjusted diluted earnings (loss) per share.

We are subject to competition and the political environment in the countries where we operate. In Nigeria, we have seen an
increase in competitive pressure and the application of existing local content regulations that could impact our ability to win future
work at levels previously anticipated. In order to properly and fully embrace new regulations, we have made a number of key
changes to our operating model in Nigeria, while maintaining safety as our number one priority at all times. The objectives of
these changes being (a) enhancing the level of continued compliance by each of Bristow Helicopters Nigeria Ltd. (“BHNL”) and
Pan African Airlines Nigeria Ltd. (“PAAN”) with local content regulations, (b) providing technical aviation maintenance services
through a wholly-owned Bristow Group entity, BGI Aviation Technical Services Nigeria Limited (“BATS”), and (c) each of BHNL,
PAAN and BATS committing to continue to apply and use all key Bristow Group standards and policies, including without
limitation our Target Zero safety program, our Code of Business Integrity and our Operations Manuals. As a result of these changes,
our ability to continue to consolidate BHNL and PAAN under the current accounting requirements could change.

We conduct business in various foreign countries, and as such, our cash flows and earnings are subject to fluctuations and
related risks from changes in foreign currency exchange rates. During fiscal year 2017, our primary foreign currency exposure
was related to the British pound sterling, the euro, the Australian dollar, the Norwegian kroner and the Nigerian naira and our
unconsolidated affiliates foreign currency exposure is primarily related to the Brazilian real. The Brexit event discussed elsewhere
in this Annual Report is an example of this exposure and possible impact on our results of operations. For details on this exposure
and the related impact on our results of operations, see “Item 7A. Quantitative and Qualitative Disclosures about Market Risk”
and Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual Report.

Overview of Operating Results

The following table presents our operating results and other statement of operations information for the applicable periods:

Fiscal Years Ended
March 31,

2017

2016

Favorable
(Unfavorable)

(In thousands, except per share
amounts, percentages and flight hours)

Gross revenue:

Operating revenue............................................................ $1,347,850
52,652
Reimbursable revenue......................................................
1,400,502
Total gross revenue...................................................

$1,629,547
85,966
1,715,513

$ (281,697)
(33,314)
(315,011)

(17.3)%
(38.8)%
(18.4)%

Operating expense:

Direct cost ........................................................................
Reimbursable expense .....................................................
Depreciation and amortization.........................................
General and administrative ..............................................
Total operating expense............................................

1,103,984
50,313
118,748
195,367
1,468,412

1,227,541
81,824
136,812
224,645
1,670,822

Loss on impairment..........................................................
Loss on disposal of assets ................................................
Earnings from unconsolidated affiliates, net of losses.....

(16,278)
(14,499)
6,945

(55,104)
(30,693)
261

123,557
31,511
18,064
29,278
202,410

38,826
16,194
6,684

10.1 %
38.5 %
13.2 %
13.0 %
12.1 %

70.5 %
52.8 %
*

Operating loss .........................................................................

(91,742)

(40,845)

(50,897)

(124.6)%

Interest expense, net.........................................................
Other income (expense), net ............................................

(49,919)
(2,641)

Loss before benefit (provision) for income taxes ............
Benefit (provision) for income taxes ...............................

(144,302)
(32,588)

(34,128)
(4,258)

(79,231)
2,082

Net loss....................................................................................
Net loss attributable to noncontrolling interests ..............
Net loss attributable to Bristow Group ...................................
Accretion of redeemable noncontrolling interests ...........

(176,890)
6,354
(170,536)
—
Net loss attributable to common stockholders ........................ $ (170,536)

(77,149)
4,707
(72,442)
(1,498)
$ (73,940)

(15,791)
1,617

(65,071)
(34,670)

(99,741)
1,647
(98,094)
1,498
(96,596)

(2.75)
(4.3)%

(46.3)%
38.0 %

(82.1)%
*

(129.3)%
35.0 %
(135.4)%
*
(130.6)%

(129.7)%
(172.0)%
(13.9)%

Diluted loss per common share ............................................... $
Operating margin (1) ................................................................
Flight hours (2) .........................................................................

Non-GAAP financial measures: (3)

(4.87)
(6.8)%

(2.12)
(2.5)%

165,252

191,850

(26,598)

Adjusted EBITDA............................................................ $
Adjusted EBITDA margin (1) ...........................................
Adjusted net income (loss)............................................... $ (74,525)
(2.13)
Adjusted diluted earnings (loss) per share ....................... $

71,084

5.3 %

$ 205,523

$ (134,439)

12.6 %

(7.3)%

$
$

51,308
1.45

$ (125,833)
(3.58)
$

(65.4)%
(57.9)%
(245.3)%
(246.9)%

Fiscal Years Ended
March 31,

2016

2015

Favorable
(Unfavorable)

(In thousands, except per share
amounts, percentages and flight hours)

Gross revenue:

Operating revenue............................................................ $ 1,629,547
85,966
Reimbursable revenue......................................................
1,715,513
Total gross revenue...................................................

$ 1,726,987
131,682
1,858,669

(97,440)
(45,716)
(143,156)

Operating expense:

1,227,541
81,824
136,812
224,645
1,670,822

(55,104)
(30,693)
261

1,174,991
124,566
114,293
254,158
1,668,008

(7,167)
(35,849)
(1,771)

(52,550)
42,742
(22,519)
29,513
(2,814)

(47,937)
5,156
2,032

(5.6)%
(34.7)%
(7.7)%

(4.5)%
34.3 %
(19.7)%
11.6 %
(0.2)%

*
14.4 %
114.7 %

Operating income (loss) ..........................................................

(40,845)

145,874

(186,719)

(128.0)%

Interest expense, net.........................................................
Other income (expense), net ............................................

(34,128)
(4,258)

(29,354)
(5,047)

(4,774)
789

(16.3)%
15.6 %

Income (loss) before provision for income taxes.............
Benefit (provision) for income taxes ...............................

(79,231)
2,082

111,473
(22,766)

(190,704)
24,848

(171.1)%
109.1 %

Net income (loss) ....................................................................

(77,149)

88,707

(165,856)

(187.0)%

Net (income) loss attributable to noncontrolling

interests.........................................................................
Net income (loss) attributable to Bristow Group ....................
Accretion of redeemable noncontrolling interests ...........
Net loss (loss) attributable to common stockholders .............. $

4,707
(72,442)
(1,498)
(73,940)

Diluted earnings per common share........................................ $
Operating margin (1) ................................................................
Flight hours (2) .........................................................................

(2.12)
(2.5)%

191,850

Non-GAAP financial measures:(3)

Adjusted EBITDA............................................................ $ 205,523
Adjusted EBITDA margin (1)............................................
Adjusted net income ........................................................ $
Adjusted diluted earnings per share................................. $

51,308
1.45

12.6 %

(4,407)
84,300
—
84,300

9,114
(156,742)
(1,498)
$ (158,240)

206.8 %
(185.9)%
*
(187.7)%

2.37
8.4%

208,813

(189.5)%
(4.49)
(10.9)% (129.8)%
(8.1)%

(16,963)

309,057

$ (103,534)

17.9%

(5.3)%

133,963
3.77

$
$

(82,655)
(2.32)

(33.5)%
(29.6)%
(61.7)%
(61.5)%

$
$

_______________

* percentage change too large to be meaningful or not applicable

(1) Operating margin is calculated as operating income divided by operating revenue. Adjusted EBITDA margin is calculated

as adjusted EBITDA divided by operating revenue.

(2) Excludes flight hours from Bristow Academy and unconsolidated affiliates. Includes flight hours from Eastern Airways
and Airnorth fixed wing operations in the U.K., Nigeria and Australia for fiscal years 2017, 2016 and 2015 of 39,873,
41,473 and 29,663, respectively.

(3) These financial measures have not been prepared in accordance with generally accepted accounting principles (“GAAP”)
and have not been audited or reviewed by our independent registered public accounting firm. These financial measures
are therefore considered non-GAAP financial measures. Adjusted EBITDA is calculated by taking our net income and
adjusting for interest expense, depreciation and amortization, benefit (provision) for income taxes, gain (loss) on disposal
of assets and any special items during the reported periods. See further discussion of our use of the adjusted EBITDA
metric below. Adjusted net income (loss) and adjusted diluted earnings (loss) per share are each adjusted for gain (loss)
on disposal of assets and any special items during the reported periods. As discussed below, management believes these
non-GAAP financial measures provide meaningful supplemental information regarding our results of operations. A
description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP
financial measures is as follows:

Fiscal Year Ended March 31,

2017

2016

2015

Net income (loss) ........................................................................................ $(176,890)
14,499
31,277
118,748
50,862
32,588
Adjusted EBITDA....................................................................................... $ 71,084

Loss on disposal of assets .........................................................................
Special items (i) .........................................................................................
Depreciation and amortization..................................................................
Interest expense ........................................................................................
Provision (benefit) for income taxes.........................................................

(In thousands, except per share amounts)
$ (77,149)
30,693
82,063
136,812
35,186
(2,082)
$ 205,523

88,707
35,849
17,132
114,293
30,310
22,766
$ 309,057

Benefit (provision) for income tax.............................................................. $ (32,588)
(6,476)
49,342
Adjusted benefit (provision) for income tax ............................................... $ 10,278

Tax benefit on loss on disposal of asset....................................................
Tax provision (benefit) on special items...................................................

2,082
(8,665)
(8,996)
$ (15,579)

$ (22,766)
(7,321)
(7,706)
$ (37,793)

Effective tax rate (ii) .....................................................................................
Adjusted effective tax rate (ii) ......................................................................

(22.6)%
11.7 %

2.6%
25.1%

20.4%
21.5%

Net income (loss) attributable to Bristow Group ........................................ $(170,536)
8,023
87,988
Adjusted net income (loss).......................................................................... $ (74,525)

Loss on disposal of assets (iii) ....................................................................
Special items (i) (iii).....................................................................................

$ (72,442)
22,028
101,722
51,308

84,300
28,528
21,135
$ 133,963

Diluted earnings (loss) per share................................................................. $
Loss on disposal of assets (iii) ....................................................................
Special items (i) (iii).....................................................................................
Adjusted diluted earnings (loss) per share (iv) .............................................
_______________

(4.87)
0.23
2.51
(2.13)

(2.12)
0.62
2.92
1.45

2.37
0.80
0.59
3.77

(i) See information about special items during fiscal years 2017, 2016 and 2015 under “Fiscal Year 2017 Compared to Fiscal

Year 2016” and “Fiscal Year 2016 Compared to Fiscal Year 2015” below.

(ii) Effective tax rate is calculated by dividing benefit (provision) for income tax by pretax net income. Adjusted effective tax
rate is calculated by dividing adjusted benefit (provision) for income tax by adjusted pretax net income (loss). Tax expense
(benefit) on loss on disposal of asset and tax expense (benefit) on special items is calculated using the statutory rate of the
entity recording the loss on disposal of asset or special item.

(iii) These amounts are presented after applying the appropriate tax effect to each item and dividing by the weighted average

shares outstanding during the related period to calculate the earnings per share impact.

(iv) Adjusted diluted earnings per share is calculated using the diluted weighted average number of shares outstanding of

35,044,040, 34,893,844 and 35,528,605 for fiscal years 2017, 2016 and 2015, respectively.

Management believes that adjusted EBITDA, adjusted benefit (provision) for income taxes, adjusted net income (loss) and
adjusted diluted earnings (loss) per share (collectively, the “Non-GAAP measures”) provide relevant and useful information, which
is widely used by analysts, investors and competitors in our industry as well as by our management in assessing both consolidated
and regional performance.

Adjusted EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and financing
transactions and income taxes. Adjusted EBITDA should not be considered a measure of discretionary cash available to us for
investing in the growth of our business. In prior periods, we presented adjusted EBITDAR, which was calculated by taking our
net income and adjusting for interest expense, depreciation and amortization, rent expense (included as a component of direct cost
and general and administrative expense), provision for income taxes, gain (loss) on disposal of assets and any special items during
the reported periods. We believed that adjusted EBITDAR provided us with a useful supplemental measure of our operational
performance by excluding the financing decisions we make regarding aircraft purchases or leasing. However, we have revised
our disclosures to present adjusted EBITDA rather than adjusted EBITDAR consistent with recent interpretations regarding Non-
GAAP measures issued by the Securities and Exchange Commission.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share present our consolidated results excluding asset
dispositions and special items that do not reflect the ordinary earnings of our operations. Adjusted benefit (provision) for income
taxes excludes the tax impact of these items. We believe that these measures are useful supplemental measures because net income
and diluted earnings per share include asset disposition effects and special items and benefit (provision) for income taxes include
the tax impact of these items, and inclusion of these items does not reflect the ongoing operational earnings of our business.

The Non-GAAP measures are not calculated or presented in accordance with GAAP and other companies in our industry
may calculate these measures differently than we do. As a result, these financial measures have limitations as analytical and
comparative tools and you should not consider these measures in isolation, or as a substitute for analysis of our results as reported
under GAAP. In calculating these financial measures, we make certain adjustments that are based on assumptions and estimates
that may prove to be inaccurate. In addition, in evaluating these financial measures, you should be aware that in the future we may
incur expenses similar to those eliminated in this presentation. Our presentation of the Non-GAAP measures should not be construed
as an inference that our future results will be unaffected by unusual or special items.

Some of the additional limitations of adjusted EBITDA are:

• Adjusted EBITDA does not reflect our current or future cash requirements for capital expenditures;

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service

interest or principal payments on our debts; and

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often
have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements.

The following tables present region adjusted EBITDA and adjusted EBITDA margin discussed in “— Region Operating

Results,” and consolidated adjusted EBITDA and adjusted EBITDA margin for fiscal years 2017, 2016 and 2015:

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands, except percentages)

Adjusted EBITDA:

Europe Caspian............................................................................. $ 45,163
51,553
Africa ............................................................................................
39,952
Americas .......................................................................................
(5,026)
Asia Pacific...................................................................................
(60,558)
Corporate and other ......................................................................
Consolidated adjusted EBITDA............................................... $ 71,084

$ 123,952
60,371
71,958
28,361
(79,119)
$ 205,523

$ 157,402
109,783
115,201
34,830
(108,159)
$ 309,057

Adjusted EBITDA margin:

Europe Caspian.............................................................................
Africa ............................................................................................
Americas .......................................................................................
Asia Pacific...................................................................................
Consolidated adjusted EBITDA margin ..................................

6.4 %
25.8 %
18.1 %
(2.3)%
5.3 %

15.3%
24.2%
24.8%
10.4%
12.6%

19.9%
32.7%
32.8%
14.7%
17.9%

The following table presents region depreciation and amortization and rent expense for fiscal years 2017, 2016 and 2015:

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands)

Depreciation and amortization:

Europe Caspian............................................................................. $ 39,511
16,664
Africa ............................................................................................
32,727
Americas .......................................................................................
19,091
Asia Pacific...................................................................................
10,755
Corporate and other ......................................................................
Total depreciation and amortization...................................... $ 118,748

Rent expense:

Europe Caspian............................................................................. $ 134,072
8,101
Africa ............................................................................................
23,015
Americas .......................................................................................
39,759
Asia Pacific...................................................................................
7,661
Corporate and other ......................................................................
Total rent expense.................................................................. $ 212,608

$ 41,509
29,337
36,371
20,526
9,069
$ 136,812

$ 136,377
7,456
21,016
37,053
9,938
$ 211,840

$ 37,830
17,333
34,617
23,450
1,063
$ 114,293

$ 103,294
6,974
20,734
25,151
8,614
$ 164,767

Fiscal Year 2017 Compared to Fiscal Year 2016

As discussed under “Market Outlook” above, the oil and gas industry has experienced a significant downturn beginning in
fiscal year 2015 primarily due to a decline in crude oil prices, which negatively impacted activity with our oil and gas clients.
While this decline started in fiscal year 2015, activity and pricing declined further in fiscal years 2016 and 2017, resulting in a
significant decrease in gross revenue for our oil and gas and fixed wing services year-over-year. This decline in revenue was
partially offset by the start-up of the U.K. SAR contract in April 2015 with seven bases coming online in fiscal year 2016 and an
eighth base coming online in fiscal year 2017.

Operating revenue from external clients by line of service was as follows:

Fiscal Year Ended
March 31,

2017

2016

Favorable
(Unfavorable)

Oil and gas services ..................................... $ 956,649
191,609
Fixed wing services......................................
189,555
U.K. SAR services .......................................
10,037
Corporate and other......................................
Total operating revenue.......................... $1,347,850

(In thousands, except percentages)
$ (265,852)
(16,929)
12,325
(11,241)
$ (281,697)

$1,222,501
208,538
177,230
21,278
$1,629,547

(21.7)%
(8.1)%
7.0 %
(52.8)%
(17.3)%

In addition to operational decreases, changes in foreign currency exchange rates during fiscal year 2017 resulted in $80.3

million of the decrease year-over-year.

We reported a net loss of $170.5 million and $72.4 million and diluted loss per share of $4.87 and $2.12 for fiscal years 2017
and 2016, respectively. The year-over-year increase in net loss and diluted loss per share primarily resulted from the decline in oil
and gas revenue discussed above, higher interest expense as a result of additional borrowings and increased income tax charges,
partially offset by a lower loss on impairment, a lower loss from disposal of assets, lower depreciation and amortization expense
due to less accelerated depreciation and less of an unfavorable impact from changes in foreign currency exchange rates.

The net loss for fiscal year 2017 was significantly impacted by the following items:

• Organizational restructuring costs of $20.9 million ($15.0 million net of tax), which include severance expense of $16.9
million related to separation programs across our global organization designed to increase efficiency and reduce costs,
and other restructuring costs of $4.0 million; $7.6 million of the restructuring costs are included in direct costs and $13.3
million are included in general and administrative expense,

• Loss on disposal of assets of $14.5 million ($8.0 million net of tax) and accelerated depreciation of $10.4 million ($6.8

million net of tax),

•

Impairment charges on goodwill of $8.7 million ($7.1 million net of tax) and on inventory of $7.6 million ($5.4 million
net of tax) included in loss on impairment,

• Reversal of $5.9 million ($5.9 million net of tax) of contingent consideration related to the Airnorth acquisition, and

• Tax items of $59.5 million that include a one-time non-cash tax effect from repositioning of certain aircraft from one tax
jurisdiction to another related to recent financing transactions resulting in additional income tax expense of $22.5 million
and non-cash adjustments related to the valuation of deferred tax assets of $37.0 million.

Excluding these items, adjusted net loss and adjusted diluted loss per share were $74.5 million and $2.13, respectively, for
fiscal year 2017. These adjusted results compare to adjusted net income and adjusted diluted earnings per share of $51.3 million
and $1.45, respectively, for fiscal year 2016. Adjusted EBITDA, which excludes these items with the exception of accelerated
depreciation and the tax items, also decreased year-over-year to $71.1 million in fiscal year 2017 from $205.5 million in fiscal
year 2016. The year-over-year decrease in each of these measures primarily resulted from the decline in oil and gas revenue across
all regions discussed above partially offset by less of an unfavorable impact from changes in foreign currency exchange rates year-
over-year. See further discussion of operating results by region under “— Region Operating Results — Fiscal Year 2017 Compared
to Fiscal Year 2016” included elsewhere in this Annual Report.

The table below presents the year-over-year impact of changes in foreign currency exchange rates.

Transaction losses (1) .......................................................................... $
Líder foreign exchange impact (2) ......................................................

Total.............................................................................................. $

Revenue impact..................................................................................
Operating expense impact..................................................................
Year-over-year income statement translation impact...................

Pre-tax income statement impact .......................................................
Less: Foreign exchange impact on depreciation and amortization

and interest expense .......................................................................
Adjusted EBITDA impact..................................................................

Net income impact (tax affected).......................................................
Earnings per share impact..................................................................

Fiscal years ended March 31,

2017

2016

Favorable
(Unfavorable)

(in thousands, except per share amounts)
(2,948) $
(3,193)
(6,141) $

(4,340) $
(22,447)
(26,787)

1,392
19,254
20,646

(80,251)
71,994
(8,257)

12,389

(821)
11,568

7,346
0.21

$
$

_______________

(1)

(2)

Included in other income (expense), net on our consolidated statements of operations.

Included in earnings from unconsolidated affiliates, net of losses on our consolidated statements of operations.

The most significant impacts were from larger losses in fiscal year 2016 from the revaluation of balance sheet assets and
liabilities into the functional currencies of legal entities through which we operate globally presented as transaction losses within
other income (expense), net, and a larger impact in fiscal year 2016 on our earnings from unconsolidated affiliates as results related
to Líder were impacted by a 8.4% devaluation of the Brazilian real versus the U.S. dollar in fiscal year 2016. This favorable year-
over-year change was partially offset by the unfavorable income statement translation impact from the depreciating British pound
sterling due to Brexit on the translation of our results in our Europe Caspian region, partially offset by a favorable impact on our
results of the devalued naira in our Africa region.

Direct costs decreased 10.1%, or $123.6 million, year-over-year primarily due to the benefit of organizational restructuring
efforts reflected in a $63.4 million decrease in salaries and benefits resulting from lower headcount across all regions, a $7.0
million decrease in insurance expense, an $8.6 million decrease in inventory consignment fees and a $5.8 million decrease in
training, travel and meals expense. Also, during fiscal year 2017, we determined the contingent consideration related to the Airnorth
acquisition accrued in the purchase price was no longer probable of being paid out and we reversed $5.9 million of an accrued
liability to direct costs. Additionally, bad debt expense decreased by $5.8 million primarily related to bad debt expense recorded
in fiscal year 2016 related to two clients in our Africa region and a client in our Asia Pacific region.

Reimbursable expense decreased 38.5%, or $31.5 million, primarily due to a decline in activity and a contract amendment

in our Europe Caspian region.

Depreciation and amortization decreased 13.2%, or $18.1 million, to $118.7 million for fiscal year 2017 from $136.8 million
for fiscal year 2016. This decrease in depreciation and amortization expense is primarily due to a decrease in accelerated depreciation
of $18.3 million as a result of fleet changes for older aircraft in fiscal year 2016, partially offset by an increase in depreciation
expense due to additional aircraft and information technology costs being capitalized and depreciated in fiscal year 2017.

General and administrative expense decreased 13.0%, or $29.3 million, primarily due to a decrease of $8.8 million in salaries
and benefits, a decrease of $6.3 million in professional fees and a decrease of $14.2 million in other general and administrative
expenses, including information technology expenses, training, travel, recruitment and various other expenses from cost reduction
initiatives. The reduction in salaries and benefits is primarily due to lower salaries and benefits of $13.8 million due to lower
headcount in fiscal year 2017 from cost reduction initiatives, partially offset by higher management bonuses of $5.0 million in
fiscal year 2017 due to no management bonuses being awarded in fiscal year 2016.

Loss on impairment for fiscal year 2017 included $8.7 million of goodwill impairment related to Eastern Airways and $7.6
million of inventory impairments. Loss on impairment for fiscal year 2016 included $41.6 million of goodwill impairment related
to the Bristow Norway reporting unit and Eastern Airways within our Europe Caspian region ($25.2 million), Bristow Academy
reporting unit within Corporate and other ($10.2 million) and the Africa reporting unit ($6.2 million), $8.1 million impairment of
intangible assets of Eastern Airways and $5.4 million of inventory impairments. For further details, see “Executive Overview —
Market Outlook — Recent Events — Goodwill Impairment.”

Loss on disposal of assets decreased $16.2 million to a loss of $14.5 million for fiscal year 2017 from a loss of $30.7 million
for fiscal year 2016. The loss on disposal of assets in fiscal year 2017 included impairment charges of $12.5 million related to 14
held for sale aircraft and a loss of $2.0 million from the sale of 14 aircraft and other equipment. During fiscal year 2016, the loss
on disposal of assets included impairment charges of $29.6 million related to 16 held for sale aircraft and a loss of $1.1 million
from the sale of 35 aircraft and other equipment.

Earnings from unconsolidated affiliates, net of losses, increased $6.7 million to earnings of $6.9 million for fiscal year 2017
from earnings of $0.3 million in fiscal year 2016. The increase primarily resulted from earnings from our investment in Líder in
Brazil of $8.1 million for fiscal year 2017 compared to $0.1 million in losses in fiscal year 2016 primarily due to less of an
unfavorable impact of foreign currency exchange rates, partially offset by a decline in activity. Our earnings from Líder in fiscal
years 2017 and 2016 were reduced by the unfavorable impact of foreign currency exchange rate changes of $3.2 million and $22.4
million, respectively.

Interest expense, net, increased 46.3%, or $15.8 million, year-over-year primarily due to an increase in interest expense

resulting from an increase in borrowings and an increase in amortization of debt fees.

Other income (expense), net decreased $1.6 million to other expense of $2.6 million for the fiscal year 2017 compared to
other expense of $4.3 million for the fiscal year 2016 primarily due to lower foreign currency transaction losses in fiscal year 2017
compared to fiscal year 2016. For further details on other income (expense), net, see “— Region Operating Results — Other
Income (Expense), Net” included elsewhere in this Annual Report.

For further details on income tax expense, see “—Region Operating Results — Taxes” included elsewhere in this Annual

Report.

As discussed above, our results for fiscal year 2017 were impacted by a number of special items. Recent financing transactions
have required repositioning of certain aircraft from one tax jurisdiction to another that resulted in an additional income tax expense
of $22.5 million. In fiscal year 2016, special items that impacted our results included organizational restructuring costs, additional
depreciation expense resulting from fleet changes, impairment of inventories, goodwill and intangible assets, tax items and accretion
of redeemable noncontrolling interests. For further details on the special items impacting fiscal year 2016, see “Fiscal Year 2016
Compared to Fiscal Year 2015” below. The items noted in fiscal years 2017 and 2016 have been identified as special items as they
are not considered by management to be part of ongoing operations when assessing and measuring the operational and financial
performance of the Company. The impact of these items on adjusted EBITDA, adjusted net income and adjusted diluted earnings
per share is as follows:

Fiscal Year Ended
March 31, 2017

Adjusted
EBITDA

Adjusted
Net Income

Adjusted
Diluted Earnings
Per Share

Organizational restructuring costs.................................................................... $
Additional depreciation expense resulting from fleet changes ........................
Goodwill impairment .......................................................................................
Impairment of inventories ................................................................................
Reversal of Airnorth contingent consideration.................................................
Tax items ..........................................................................................................

Total special items..................................................................................... $

Organizational restructuring costs.................................................................... $
Additional depreciation expense resulting from fleet changes ........................
Impairment of inventories ................................................................................
Goodwill and intangible impairment................................................................
Tax items ..........................................................................................................
Accretion of redeemable noncontrolling interests ...........................................

Total special items..................................................................................... $

Fiscal Year 2016 Compared to Fiscal Year 2015

(In thousands, except per share amounts)
20,897
—
8,706
7,572
(5,898)
—
31,277

14,998
6,843
7,138
5,428
(5,898)
59,479
87,988

0.43
0.19
0.20
0.15
(0.17)
1.70
2.51

Fiscal Year Ended
March 31, 2016

Adjusted
EBITDA

Adjusted
Net Income

Adjusted
Diluted Earnings
Per Share

(In thousands, except per share amounts)
26,959
—
5,439
49,665
—
—
82,063

19,094
20,577
4,004
37,979
20,068
—
101,722

0.54
0.58
0.11
1.08
0.57
0.04
2.92

Gross revenue decreased 7.7%, or $143.2 million, year-over-year primarily due to the downturn in the oil and gas industry,

partially offset by the start of the U.K. SAR contract in April 2015 with seven bases coming online in fiscal year 2016.

Operating revenue from external clients by line of service was as follows:

Fiscal Year Ended
March 31,

2016

2015

Favorable
(Unfavorable)

Oil and gas services ..................................... $1,222,501
208,538
Fixed wing services......................................
177,230
U.K. SAR services .......................................
21,278
Corporate and other......................................
Total operating revenue.......................... $1,629,547

(In thousands, except percentages)
$ (276,009)
52,342
128,313
(2,086)
$ (97,440)

$1,498,510
156,196
48,917
23,364
$1,726,987

(18.4)%
33.5 %
262.3 %
(8.9)%
(5.6)%

In addition to operational decreases, changes in foreign currency exchange rates during fiscal year 2016 resulted in $98.6
million of the decrease year-over-year. In January 2015, Bristow Helicopters Australia acquired an 85% interest in Airnorth and
purchased the remaining 15% of the outstanding shares of Airnorth in November 2015. Airnorth contributed $75.4 million in
operating revenue for fiscal year 2016, which is an incremental $64.0 million in operating revenue compared to fiscal year 2015.
The contribution of fixed-wing revenue from Airnorth in fiscal year 2016 was partially offset by a decline in revenue for Eastern
Airways in the U.K. as their business was impacted by the oil and gas market and general economic conditions.

For fiscal year 2016, we reported a net loss of $72.4 million and a diluted loss per share of $2.12 compared to net income

of $84.3 million and diluted earnings per share of $2.37 for fiscal year 2015.

The net loss for fiscal year 2016 was significantly impacted by the following items:

• Organizational restructuring costs of $27.0 million ($19.1 million net of tax), which includes severance expense of $22.5
million related to separation programs across our global organization designed to increase efficiency and reduce costs
and other restructuring costs of $4.5 million; $12.8 million of the restructuring costs are included in direct costs and $14.2
million are included in general and administrative expense,

• A loss on disposal of assets of $30.7 million ($22.0 million net of tax) (primarily consisting of impairment charges on
aircraft of $29.6 million), accelerated depreciation expense related to a softening aircraft sales aftermarket and changes
in the planned timing of exits from aircraft model types in our fleet of $28.7 million ($20.6 million net of tax),

•

Impairment charges on goodwill and intangibles of $49.7 million ($38.0 million net of tax) and on inventory of $5.4
million ($4.0 million net of tax) (included in loss on impairment), and

• Non-cash adjustments related to the valuation of deferred tax assets of $20.1 million.

Additionally, diluted loss per share was unfavorably impacted by adjustments in the accretion amount of redeemable

noncontrolling interests in Eastern Airways and Airnorth.

Excluding these items, adjusted net income and adjusted diluted earnings per share were $51.3 million and $1.45, respectively,
for fiscal year 2016. These adjusted results compare to adjusted net income and adjusted diluted earnings per share of $134.0
million and $3.77, respectively, for fiscal year 2015. Adjusted EBITDA and adjusted EBITDA margin, which is adjusted for the
same items discussed above, was $205.5 million and 12.6%, respectively, in fiscal year 2016 compared to $309.1 million and
17.9% in fiscal year 2015, respectively.

The year-over-year decline in net income and diluted earnings per share (GAAP and adjusted), and in adjusted EBITDA
primarily resulted from the decline in oil and gas revenue discussed above. These declines were partially offset by a reduced impact
from changes in foreign currency exchange rates in fiscal year 2016 as the impact on revenue was more than offset by an impact
on costs and earnings from unconsolidated affiliates discussed below.

The table below presents the year-over-year impact of changes in foreign currency exchange rates.

Transaction losses (1) .......................................................................... $
Líder foreign exchange impact (2) ......................................................

Total.............................................................................................. $

Pre-tax income statement impact .......................................................
Less: Foreign exchange impact on depreciation and amortization

and interest expense .......................................................................
Adjusted EBITDA impact..................................................................

Net income impact (tax affected).......................................................
Earnings per share impact..................................................................

Fiscal years ended March 31,

2016

2015

Favorable
(Unfavorable)

(in thousands, except per share amounts)
(4,340) $
(22,447)
(26,787) $

(6,548) $
(25,707)
(32,255)

2,208
3,260
5,468

(98,639)
100,654
2,015

7,483

(4,017)
3,466

6,616
0.19

$
$

_______________

(1)

(2)

Included in other income (expense), net on our consolidated statements of operations.

Included in earnings from unconsolidated affiliates, net of losses on our consolidated statements of operations.

The most significant impact was from a loss in fiscal year 2015 related to the revaluation of balance sheet assets and liabilities
into the functional currencies of legal entities through which we operate globally presented as transaction gains (losses), and a
larger impact in fiscal year 2015 on our earnings from unconsolidated affiliates as results related to Líder were impacted by a

30.5% devaluation of the Brazilian real versus the U.S. dollar compared to a 8.4% devaluation of the Brazilian real versus the
U.S. dollar in fiscal year 2016.

In response to the ongoing downturn, we implemented cost reduction measures as part of an organizational restructuring,
which partially offset the impact of certain higher costs within direct costs and general and administrative expense. See the further
discussion of changes in direct costs and general and administrative expense below.

Direct costs increased 4.5%, or $52.6 million, in fiscal year 2016 compared to the previous year primarily due to a $45.3
million increase in rent expense and a $13.3 million increase in contract expense primarily related to the establishment of new
U.K. SAR bases, a $12.8 million increase in severance expense related to organizational restructuring efforts and a $9.2 million
increase in bad debt expense. These increased costs were partially offset by the benefit of organizational restructuring efforts in
fiscal year 2016 reflected in a $26.8 million decline in salaries and benefits due to a decrease in headcount across all regions and
$4.9 million decrease in travel and meals expense.

Reimbursable expense decreased 34.3%, or $42.7 million, in fiscal year 2016 primarily due a decline in activity and a contract

amendment in our Europe Caspian region.

Depreciation and amortization increased 19.7%, or $22.5 million, to $136.8 million for fiscal year 2016 from $114.3 million
for fiscal year 2015. This increase in depreciation and amortization expense is primarily due to an increase in accelerated
depreciation of $18.3 million as a result of fleet changes for older aircraft, an increase of $7.1 million due to information technology
projects placed into service since the prior year and an increase of $3.8 million due to the addition of Airnorth.

General and administrative expense decreased 11.6%, or $29.5 million, in fiscal year 2016 primarily due to a decrease in
compensation expense of $11.1 million which resulted from management’s decision to not award short-term bonuses for fiscal
year 2016 and from reduced headcount due to organizational restructuring efforts, a decline in Common Stock price during fiscal
year 2016 resulting in a reduction of $13.0 million for the accrual for incentive compensation awards year-over-year, $5.5 million
in expense related to CEO succession recorded in fiscal year 2015 and a decrease in training and seminars of $4.1 million due to
systems implementation training costs incurred in fiscal year 2015. This decrease was partially offset by an increase of $9.7 million
in severance expense in fiscal year 2016 associated with the organizational restructuring efforts.

Loss on impairment for fiscal year 2016 includes $49.7 million of goodwill impairment related to our Bristow Norway
reporting unit and Eastern Airways within our Europe Caspian region ($25.2 million), Bristow Academy reporting unit within our
Corporate and other region ($10.2 million) and Africa region ($6.2 million), $8.1 million intangible asset impairment in Eastern
Airways and $5.4 million of inventory impairments. For further details, see “Executive Overview — Market Outlook — Recent
Events — Goodwill Impairment.” Loss on impairment for fiscal year 2015 includes $7.2 million of inventory impairments.

Loss on disposal of assets decreased $5.2 million to a loss of $30.7 million for fiscal year 2016 from a loss of $35.8 million
for fiscal year 2015. The loss on disposal of assets in fiscal year 2016 included impairment charges of $29.6 million related to 16
held for sale aircraft and a loss of $1.1 million from the sale of aircraft and other equipment. During fiscal year 2015, the loss on
disposal of assets included impairment charges of $36.1 million related to 27 held for sale aircraft partially offset by a gain of $0.2
million from the sale of 44 aircraft and other equipment.

Earnings from unconsolidated affiliates, net of losses, increased $2.0 million to earnings of $0.3 million for fiscal year 2016
from a loss of $1.8 million in fiscal year 2015. The increase in earnings from unconsolidated affiliates, net of losses, primarily
resulted from a decrease in losses from investment in Líder in Brazil to $0.1 million of losses in fiscal year 2016 from $4.2 million
in losses in fiscal year 2015 primarily due to less of an unfavorable impact of foreign currency exchange rates. Our earnings from
Líder in fiscal years 2016 and 2015 were reduced by the unfavorable impact of foreign currency exchange rates changes of $22.4
million and $25.7 million, respectively.

Interest expense, net, increased 16.3%, or $4.8 million, year-over-year primarily due to an increase in interest expense as a
result of more borrowings during fiscal year 2016, a decrease in capitalized interest resulting from a decrease in construction in
progress during fiscal year 2016, partially offset by lower amortization of debt discount in fiscal year 2016.

Other income (expense), net decreased $0.8 million to a loss of $4.3 million in fiscal year 2016 from a loss of $5.1 million
in fiscal year 2015 primarily due to lower foreign currency transaction losses in fiscal year 2016 compared to fiscal year 2015.
During fiscal year 2015, we recognized a gain of $3.9 million on the sale of unconsolidated affiliates, partially offset by $2.6
million incurred in premium and fees for the repurchase of a portion of our 6 ¼% Senior Notes, both of which are included in
other income (expense), net on our consolidated statements of operations. For further details on other income (expense), net, see
“— Region Operating Results — Other Income (Expense), Net” included elsewhere in this Annual Report.

For further details on income tax expense, see “Region Operating Results — Taxes” included elsewhere in this Annual

Report.

As discussed above, our results for fiscal year 2016 were impacted by a number of special items. These special items, on a
combined basis, decreased our net income by $101.7 million and diluted earnings per share by $2.92. In fiscal year 2015, special
items that impacted our results included a gain on the sale of an unconsolidated affiliate, organizational restructuring costs, CEO
succession costs, impairment of inventories, the repurchase of a portion of our 6 ¼% Senior Notes (the repurchase premium and
write-off of deferred financing fees), accrued maintenance cost reversal, an accounting correction, additional depreciation expense
resulting from fleet changes and Nigeria severance costs. The items noted in fiscal years 2016 and 2015 have been identified as
special items as they are not considered by management to be part of our ongoing operations when assessing and measuring the
operational and financial performance of the Company. The impact of these items on our adjusted EBITDA, adjusted net income
and adjusted diluted earnings per share is as follows:

Fiscal Year Ended
March 31, 2015

Adjusted
EBITDA

Adjusted
Net Income

Adjusted
Diluted Earnings
Per Share

(In thousands, except per share amounts)
(3,921) $
1,611
5,501
7,167
2,591
(813)
4,071
—
925
17,132

(2,549) $
1,047
3,576
5,734
2,113
(642)
3,216
7,992
648
21,135

(0.07)
0.03
0.10
0.16
0.06
(0.02)
0.09
0.22
0.02
0.59

Gain on sale of unconsolidated affiliate ................................................ $
Organizational restructuring costs.........................................................
CEO succession .....................................................................................
Impairment of inventories .....................................................................
Repurchase of 6¼% Senior Notes .........................................................
Accrued maintenance cost reversal .......................................................
Accounting correction ...........................................................................
Additional depreciation expense resulting from fleet changes..............
Nigeria severance costs .........................................................................

Total special items.......................................................................... $

Region Operating Results

The following tables set forth certain operating information for the regions comprising our Industrial Aviation Services
segment. Intercompany lease revenue and expense are eliminated from our segment reporting, and depreciation expense of aircraft
is presented in the region that operates the aircraft.

Set forth below is a discussion of operations of our regions. Our consolidated results are discussed under “Results of

Operations” above.

Europe Caspian

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

Operating revenue ......................... $ 710,581
Earnings from unconsolidated

affiliates, net of losses................ $

273
Operating income .......................... $ 13,840
Operating margin...........................
Adjusted EBITDA ......................... $ 45,163
Adjusted EBITDA margin.............
Rent expense.................................. $ 134,072

(In thousands, except percentages)

$ 809,914

$ 792,293

$ (99,333)

(12.3)% $ 17,621

2.2 %

$
310
$ 50,406

$
1,107
$ 128,543

$
(37)
$ (36,566)

(11.9)% $
(797)
(72.5)% $ (78,137)

1.9%

6.2%

16.2%

(4.3)% (69.4)%

$ 123,952

$ 157,402

$ (78,789)

(63.6)% $ (33,450)

6.4%

15.3%

19.9%

(8.9)% (58.2)%

$ 136,377

$ 103,294

2,305

1.7 % $ (33,083)

(72.0)%
(60.8)%
(10.0)% (61.7)%
(21.3)%
(4.6)% (23.1)%
(32.0)%

The Europe Caspian region comprises all of our operations and affiliates in Europe, including oil and gas operations in the
U.K. and Norway, Eastern Airways fixed wing operations and public sector SAR operations in the U.K. and our operations in
Turkmenistan.

Fiscal Year 2017 Compared to Fiscal Year 2016

The year-over-year decrease in operating revenue primarily resulted from the impact of changes in foreign currency exchange
rates which reduced operating revenue by $79.4 million, decreased activity levels with our oil and gas clients due to the downturn
in the industry which reduced operating revenue by $28.1 million, and the end of an oil and gas contract that began in late fiscal
year 2015 and ended in late fiscal year 2016 that contributed $51.3 million in additional operating revenue in fiscal year 2016.
Partially offsetting these decreases was an increase in operating revenue (on a foreign exchange neutral basis) from the start-up
of U.K. SAR bases of $41.5 million. Eastern Airways contributed $110.4 million and $133.5 million in operating revenue and
negative $4.5 million and positive $13.6 million in adjusted EBITDA for fiscal years 2017 and 2016, respectively.

A substantial portion of our revenue in the Europe Caspian region is contracted in the British pound sterling, which weakened
significantly against the U.S. dollar in fiscal year 2017 as a result of Brexit. The movement of exchange rates decreased operating
revenue, operating income and adjusted EBITDA by $79.4 million, $26.7 million and $35.1 million, respectively, from translation
of results compared to fiscal year 2016. Additionally, we recorded foreign exchange losses of $18.5 million and $11.1 million as
of March 31, 2017 and 2016, respectively, from the revaluation of assets and liabilities on British pound sterling functional currency
entities which is recorded in other income (expense), net and included in adjusted EBITDA. Including both the translation and
revaluation impacts, adjusted EBITDA was reduced by $35.1 million and $9.0 million during fiscal year 2017 and 2016,
respectively, resulting from changes in foreign exchange rates.

Additionally, during fiscal year 2017, we recorded an impairment of $8.7 million for the remaining goodwill related to
Eastern Airways. During fiscal year 2016, we recorded impairments of goodwill and intangibles of $21.2 million relating to Eastern
Airways and impairment of goodwill for operations in Norway of $12.1 million. These impairment charges contributed to a portion
of the decline in operating income in fiscal years 2017 and 2016, but were adjusted for in our calculation of adjusted EBITDA.
For additional details on the impairment of goodwill and intangibles, see Note 1 in the “Notes to Consolidated Financial Statements”
included elsewhere in this Annual Report.

The decrease in operating margin and adjusted EBITDA margin is primarily a result of the impact from the downturn in the

offshore energy industry, which was only partially offset by the start-up of the U.K. SAR bases and cost reduction activities.

Fiscal Year 2016 Compared to Fiscal Year 2015

The year-over-year increase in operating revenue primarily resulted from the start-up of seven U.K. SAR bases during fiscal
year 2016, which contributed $128.3 million in additional operating revenue, and the addition of a new oil and gas contract that
commenced in late fiscal year 2015 and ended during the March 31, 2016 quarter which contributed $42.1 million in additional
operating revenue in fiscal year 2016. Partially offsetting these increases was a decrease in operating revenue for fiscal year 2016
reflecting the impact of the downturn in the oil and gas industry, which resulted in decreased activity levels with our oil and gas
clients and also impacted our revenue for Eastern Airways. Eastern Airways contributed $133.5 million and $144.8 million in
operating revenue and $13.6 million and $21.6 million in adjusted EBITDA for fiscal years 2016 and 2015, respectively.

Additionally, a substantial portion of our operations in the Europe Caspian region are contracted in British pound sterling
and Norwegian kroner, both of which weakened significantly against the U.S. dollar in fiscal year 2016. Foreign currency exchange
rate changes resulted in a $65.8 million reduction in revenue for our Europe Caspian region year-over-year.

Operating income and operating margin for fiscal year 2016 were significantly impacted by impairments of goodwill and
intangibles of $21.2 million relating to Eastern Airways. Operating income and operating margin for the fiscal year 2016 also
were impacted by an impairment of goodwill for operations in Norway of $12.1 million. These impairment charges resulted from
lower forecasted results for future periods due to the ongoing oil and gas industry downturn. For additional details on the impairment
of goodwill and intangibles, see Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual
Report. The reduction in oil and gas and fixed wing revenue and the impairment charges were the primary drivers of the year-
over-year decrease in operating income and operating margin. Operating income, operating margin, adjusted EBITDA and adjusted
EBITDA margin were negatively impacted by changes in foreign currency exchange rates, which reduced operating income by
$3.6 million and adjusted EBITDA by $9.0 million compared to fiscal year 2015. The changes in foreign currency exchange rates
had minimal impact on operating margin. Adjusted EBITDA margin declined in fiscal year 2016 due to the impact of the downturn
in the offshore energy industry and foreign currency exchange rate changes only partially offset by the start-up of U.K. SAR bases
and cost reduction activities. The involuntary separation program initiated in July 2015, combined with a prior voluntary separation
program, resulted in $6.7 million in severance expense during fiscal year 2016, which is excluded from adjusted EBITDA and
adjusted EBITDA margin.

Additionally, operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin in fiscal years 2016 and
2015 benefited from the recovery of $14.3 million and $7.5 million, respectively, in credits for maintenance expense from original
equipment manufacturers resulting from settlement for aircraft performance and transportation costs.

Africa

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

Operating revenue ......................... $ 200,104
Earnings from unconsolidated

affiliates, net of losses................ $

2,068
Operating income .......................... $ 30,179
Operating margin...........................
Adjusted EBITDA ......................... $ 51,553
Adjusted EBITDA margin.............
Rent expense.................................. $

25.8%
8,101

15.1%

(In thousands, except percentages)

$ 249,545

$ 336,005

$ (49,441)

(19.8)% $ (86,460)

(25.7)%

2,068
$
$ 19,702

2,068
$
$ 91,758

7.9%

27.3%

$ 60,371

$ 109,783

24.2%
7,456

32.7%
6,974

—
$
$ 10,477

7.2%
$ (8,818)
1.6%
(645)

— % $

—
53.2 % $ (72,056)
91.1 %
(14.6)% $ (49,412)

— %
(78.5)%
(19.4)% (71.1)%
(45.0)%
(8.5)% (26.0)%
(6.9)%
(482)

6.6 %
(8.7)% $

The Africa region comprises all of our operations and affiliates on the African continent, including Nigeria, Tanzania, and

Egypt.

Fiscal Year 2017 Compared to Fiscal Year 2016

Operating revenue for Africa decreased in fiscal year 2017 primarily due to an overall decrease in activity resulting from
the downturn of the oil and gas industry. The decreased activity levels reduced revenue by $59.7 million, which was only partially
offset by $7.5 million from new contracts and increased activity on a contract. Additionally, Eastern Airways began providing
fixed wing services in Africa in October 2015, which generated $4.2 million and $0.2 million of operating revenue for fiscal years
2017 and 2016, respectively. A majority of our revenue in our Africa region is contracted at fixed U.S. dollar rates, resulting in
minimal exposure to the devalued Nigerian naira upon translation into U.S. dollars for reporting purposes.

Operating income and operating margin for the Africa region were significantly impacted by an impairment of goodwill of
$6.2 million during fiscal year 2016, which resulted from lower forecasted results for future periods due to the ongoing oil and
gas industry downturn. For additional details on the impairment of goodwill, see Note 1 in the “Notes to Consolidated Financial
Statements” included elsewhere in this Annual Report.

Operating income, operating margin and adjusted EBITDA margin increased in fiscal year 2017 primarily due to a decline
in direct costs (including a $10.6 million decrease in salaries and benefits and an $8.6 million decrease in maintenance expense)
and a $7.5 million decrease in general and administrative expenses, partially offset by the decrease in revenue discussed above.
Operating expenses were $17.7 million lower in fiscal year 2017 due to the devaluation of the Nigerian naira which resulted in
naira-based expenses translating into fewer U.S. dollars. Also, during fiscal year 2016, we recorded $4.7 million in bad debt
expense related to two clients in this region. Operating income and operating margin in fiscal year 2017 also benefited from a
decrease in depreciation and amortization expense as a result of a lower amount of accelerated depreciation of $6.0 million versus
$16.8 million in fiscal year 2016. Adjusted EBITDA declined as the impact to decreased revenue was only partially offset by cost
reduction activities and the favorable exchange rate impact in fiscal year 2017 compared to fiscal year 2016.

During fiscal years 2017 and 2016, we recorded $4.5 million and $5.2 million, respectively, in severance expense resulting
from voluntary and involuntary separation programs as part of our restructuring efforts, which is excluded from adjusted EBITDA
and adjusted EBITDA margin.

The increase of operating margin and adjusted EBITDA margin is primarily related to the reduction of operating expense
due to the devaluation of the Nigerian naira and cost reduction activities, partially offset by the reduction in revenue due to the
downturn of the oil and gas industry.

Fiscal Year 2016 Compared to Fiscal Year 2015

Operating revenue for the Africa region in fiscal year 2016 decreased due to an overall decrease in activity which resulted
from the downturn in the oil and gas industry. Activity declined with some customers and certain contracts ended, reducing revenue
by $85.8 million, and the temporary operational suspension of our S-76 fleet reduced revenue in fiscal year 2016 by $6.8 million,
which was only partially offset by a $5.7 million increase due to new contracts.

As discussed above, operating income and operating margin for the Africa region were significantly impacted by an
impairment of goodwill of $6.2 million during fiscal year 2016. Operating income, operating margin, adjusted EBITDA and
adjusted EBITDA margin decreased in fiscal year 2016 primarily due to the decline in activity, $4.7 million of bad debt expense
recorded in fiscal year 2016 and an increase in depreciation and amortization expense of $16.8 million primarily as a result of
management’s decision to exit certain aircraft fleet types operating in this market sooner than originally anticipated. Offsetting
these declines were decreases in salaries and benefits expense of $21.1 million, maintenance expense of $7.2 million, training
expense of $3.3 million and travel and meals expense of $1.6 million due to cost reduction initiatives implemented in this region
as a part of organizational restructuring efforts. Additionally, during fiscal years 2016 and 2015, we recorded $5.2 million and
$0.9 million in severance expense resulting from voluntary and involuntary separation programs as part of these restructuring
efforts, which is excluded from adjusted EBITDA and adjusted EBITDA margin. Adjusted EBITDA and adjusted EBITDA margin
decreased primarily due to the decline in activity in this region and $4.7 million of bad debt expense recorded in fiscal year 2016.

Americas

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

Operating revenue ......................... $ 220,544
Earnings from unconsolidated

affiliates, net of losses................ $
Operating income .......................... $
Operating margin...........................
Adjusted EBITDA ......................... $ 39,952
Adjusted EBITDA margin.............
Rent expense.................................. $ 23,015

5,207
4,224

$ 290,299

(In thousands, except percentages)
$ (69,755)

$ 351,429

(24.0)% $ (61,130)

(17.4)%

$ (2,117)
$ 34,463

$ (4,946)
$ 79,176

$ 7,324
$ (30,239)

346.0 % $ 2,829
(87.7)% $ (44,713)

1.9%

11.9%

22.5%

(10.0)% (84.0)%

$ 71,958

$ 115,201

$ (32,006)

(44.5)% $ (43,243)

18.1%

24.8%

32.8%

(6.7)% (27.0)%

$ 21,016

$ 20,734

$ (1,999)

(9.5)% $

57.2 %
(56.5)%
(10.6)% (47.1)%
(37.5)%
(8.0)% (24.4)%
(1.4)%
(282)

The Americas region comprises all our operations and affiliates in North America and South America, including Brazil,

Canada, Trinidad and the U.S. Gulf of Mexico.

Fiscal Year 2017 Compared to Fiscal Year 2016

Operating revenue decreased in fiscal year 2017 primarily due to a decline in activity in our U.S. Gulf of Mexico operations
resulting from the oil and gas industry downturn that reduced operating revenue by $64.6 million, a decrease of $7.5 million in
Brazil due to fewer aircraft leased to Líder and a decrease in Suriname of $5.2 million due to the end of a contract. These decreases
were partially offset by a new contract in Guyana, which increased operating revenue by $6.5 million.

Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin were negatively impacted by
unfavorable exchange rate changes in fiscal years 2017 and 2016, which reduced our earnings from our investment in Líder by
$3.2 million and $22.4 million in fiscal year 2017 and 2016, respectively. Excluding this impact, in fiscal year 2017 and 2016,
earnings from our investment in Líder would have been $11.3 million and $22.3 million, respectively, operating income for the
Americas region would have been $7.3 million (3.3% operating margin) and $56.9 million (19.6% operating margin), respectively,
and adjusted EBITDA for the Americas region would have been $43.1 million (19.6% adjusted EBITDA margin) and $94.4 million
(32.5% adjusted EBITDA margin), respectively. This year-over-year decrease in the Americas region’s operating income, operating
margin, adjusted EBITDA and adjusted EBITDA margin primarily resulted from a decline in revenue due to the decline in activity
discussed above and reduced pre-foreign exchange earnings from our investment in Líder, partially offset by a decrease in direct
costs, including an $11.2 million decrease in maintenance expense and an $8.0 million decrease in salaries and benefits due to
cost reduction initiatives.

During fiscal years 2017 and 2016, we recorded accelerated depreciation expense on aircraft exiting our fleet of $3.9 million
and $6.0 million, respectively, and we recorded severance expense related to organizational restructuring efforts of $1.2 million
and $2.1 million, respectively. Depreciation and amortization, including accelerated depreciation, and severance expense recorded
during fiscal years 2017 and 2016 were excluded from adjusted EBITDA and adjusted EBITDA margin.

Fiscal Year 2016 Compared to Fiscal Year 2015

Operating revenue decreased in fiscal year 2016 primarily due to a decrease in the number of small and medium aircraft on
contract in the U.S. Gulf of Mexico resulting from the oil and gas industry downturn which reduced operating revenue by $58.7
million, a decrease of $8.4 million in Brazil due to fewer aircraft leased to Líder and a decrease of $3.7 million in Trinidad primarily
due to the end of a contract. These decreases were partially offset by new contracts in Suriname and Guyana which increased
operating revenue by $12.7 million.

Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin were negatively impacted by
unfavorable exchange rate changes in fiscal years 2016 and 2015 which reduced our earnings from our investment in Líder by
$22.4 million and $25.7 million, respectively. Excluding this impact in fiscal years 2016 and 2015, our earnings from our investment
in Líder would have been $22.3 million and $21.5 million, respectively, and our adjusted EBITDA for the Americas region would
have been $94.4 million (32.5% adjusted EBITDA margin) and $140.9 million (40.1% adjusted EBITDA margin), respectively.
This year-over-year decrease in adjusted EBITDA primarily resulted from a decline in activity during fiscal year 2016.

In addition to the decrease from our investment in Líder, operating income, operating margin, adjusted EBITDA and adjusted
EBITDA margin were impacted by the reversal of $4.4 million of bad debt expense in fiscal year 2015 discussed below. These
decreases were partially offset by a $19.9 million decrease in salaries and benefits and a $9.1 million decrease in maintenance

expense which resulted from cost reduction initiatives and reduced flight activity. During fiscal year 2016, we also recorded
accelerated depreciation expense on aircraft exiting our fleet of $6.0 million and severance expense related to organizational
restructuring efforts of $2.1 million. Depreciation and amortization, including accelerated depreciation, and the severance expense
recorded during fiscal year 2016, were excluded from adjusted EBITDA and adjusted EBITDA margin.

During fiscal year 2015, we reversed $4.4 million of bad debt expense in the Americas region related to a client that had
previously filed for bankruptcy for which we subsequently settled and collected funds, and we recorded $1.6 million in costs
associated with the restructuring of this region and planned closure of our Alaska operations which related primarily to employee
severance and retention costs. The $1.6 million in restructuring costs in fiscal year 2015 was excluded from adjusted EBITDA
and adjusted EBITDA margin.

Asia Pacific

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

(In thousands, except percentages)

Operating revenue ......................... $217,772
Operating income (loss) ................ $ (20,870)
Operating margin...........................
Adjusted EBITDA ......................... $ (5,026)
Adjusted EBITDA margin.............
Rent expense.................................. $ 39,759

$ 272,054
4,073
$

$ 237,597
$ 12,455

$ (54,282)
$ (24,943)

(20.0)% $ 34,457
(612.4)% $ (8,382)

(9.6)%

1.5%

5.2%

(11.1)% (740.0)%

$ 28,361

$ 34,830

$ (33,387)

(117.7)% $ (6,469)

(2.3)%

10.4%

14.7%

(12.7)% (122.1)%

$ 37,053

$ 25,151

$ (2,706)

(7.3)% $ (11,902)

14.5 %
(67.3)%
(3.7)% (71.2)%
(18.6)%
(4.3)% (29.3)%
(47.3)%

The Asia Pacific region comprises all our operations and affiliates in Australia and Southeast Asia, including Malaysia,

Sakhalin, and our fixed wing operations through Airnorth in Australia.

Fiscal Year 2017 Compared to Fiscal Year 2016

Operating revenue decreased in fiscal year 2017 by $72.3 million primarily due to the ending of short-term oil and gas
contracts in Australia and a $4.3 million decrease due to a short-term contract in South Korea in fiscal year 2016, partially offset
by additional operating revenue of $17.2 million earned upon cancellation of a contract in fiscal year 2017 (see discussion below)
and a $1.7 million increase for Airnorth. A significant portion of our revenue in the Asia Pacific region is contracted in the Australian
dollar, which strengthened against the U.S. dollar in fiscal year 2017, resulting in an increase in revenue of $3.4 million year-over-
year. Airnorth contributed $77.1 million and $75.4 million, respectively, in operating revenue and $7.1 million and $12.4 million,
respectively, in adjusted EBITDA for fiscal years 2017 and 2016.

During March 2017, we came to an agreement with a client for which we had incurred significant start-up costs on a project
in Australia that was cancelled prior to contract commencement. In connection with the cancellation, we agreed to a termination
fee with the client of $11.1 million, which is recorded in operating revenue in fiscal year 2017. Additionally, we had previously
deferred revenue and costs of $6.1 million each related to this contract, which is included in operating revenue and direct costs in
fiscal year 2017.

Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin decreased primarily due to decreased
activity which was only partially offset by a decrease in direct costs, including a decrease of $7.7 million in salaries and benefits
and a decrease of $9.4 million in maintenance expense, and the contract cancellation billing in March 2017. During fiscal year
2016, we recorded additional depreciation expense of $5.3 million for four large aircraft operating in this region due to management’s
decision to exit these fleet types earlier than originally anticipated, and during fiscal years 2017 and 2016, we recorded $2.9 million
and $2.3 million, respectively, in severance expense related to organizational restructuring activities. The severance expense is
not included in adjusted EBITDA or adjusted EBITDA margin for fiscal years 2017 and 2016. Also, during fiscal year 2017, we
determined the contingent consideration related to Airnorth acquisition accrued in the purchase price was no longer probable of
being paid out and we reversed $5.9 million of an accrued liability to direct costs. The reversal of this continent consideration is
not included in adjusted EBITDA for fiscal year 2017.

Fiscal Year 2016 Compared to Fiscal Year 2015

In January 2015, Bristow Helicopters Australia acquired an 85% interest in Airnorth and in November 2015, purchased the
remaining 15% of the outstanding shares of Airnorth. Airnorth contributed $75.4 million in operating revenue and $12.4 million
in adjusted EBITDA for fiscal year 2016, which is an incremental $64.0 million in operating revenue and $11.7 million of adjusted
EBITDA compared to fiscal year 2015. Operating revenue also increased by $50.1 million from new contracts in Australia, offset
by $49.3 million due to the ending of short-term contracts in Australia and a $7.7 million decrease in Russia. A substantial portion
of our operations in the Asia Pacific region are contracted in the Australian dollar, which has weakened significantly against the
U.S. dollar since fiscal year 2015. Foreign currency exchange rate changes resulted in a reduction in our revenue for our Asia
Pacific region of $23.6 million year-over-year.

Operating income and operating margin decreased primarily due to an increase in costs of helicopter operations in this
region, including depreciation and amortization expense of $2.9 million ($3.8 million from Airnorth), maintenance expense of
$12.8 million ($7.2 million from Airnorth) and rent expense of $11.9 million ($6.7 million from Airnorth). Adjusted EBITDA
improved primarily due to the addition of Airnorth, partially offset by the inclusion of $4.6 million in credits for maintenance
expense from our original equipment manufacturer recorded during fiscal year 2015 as settlements for aircraft performance and
transportation costs. Adjusted EBITDA and adjusted EBITDA margin exclude the impact of increased rent expense from the
additional aircraft on lease in fiscal year 2016.

During fiscal years 2016 and 2015, we recorded additional depreciation expense of $5.3 million and $6.0 million, respectively,
for four large aircraft operating in this region due to management’s decision to exit these fleet types earlier than originally anticipated,
and during fiscal year 2016 we recorded $2.3 million in severance expense related to organizational restructuring activities. The
$2.3 million in severance expense is not included in adjusted EBITDA or adjusted EBITDA margin for fiscal year 2016. The
decline in adjusted EBITDA margin relates to the inclusion of $4.6 million in credits for maintenance expense from our original
equipment manufacturer recorded during fiscal year 2015 as settlements for aircraft performance and transportation costs, partially
offset by addition of Airnorth in fiscal year 2016. Before the benefit of the maintenance credits utilized during fiscal year 2015,
adjusted EBITDA margin was 12.7%, representing a decrease due to additional rent expense in fiscal year 2016, partially offset
by the addition of Airnorth.

Corporate and Other

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

10,369

23,487

26,412

$ (13,118)

(55.9)% $

(2,925)

(11.1)%

(In thousands, except percentages)

Operating revenue ......................... $
Earnings from unconsolidated

affiliates, net of losses................ $

— $
Operating loss................................ $ (104,616) $ (118,796) $ (130,209) $
Adjusted EBITDA ......................... $ (60,558) $ (79,119) $ (108,159) $
$
Rent expense.................................. $
_______________

(603) $

— $

8,614

9,938

7,661

(603)
14,180
18,561
2,277

$
*
11.9 % $
23.5 % $
22.9 % $

—
11,413
29,040
(1,324)

*
8.8 %
26.8 %
(15.4)%

* percentage change too large to be meaningful or not applicable

Corporate and other includes our Bristow Academy operations, supply chain management and corporate costs that have not

been allocated out to other regions.

Fiscal Year 2017 Compared to Fiscal Year 2016

Operating revenue decreased in fiscal year 2017 primarily due to a decline in Bristow Academy revenue of $9.7 million due

to a decline in military training and a decrease in third-party part sales of $3.1 million.

Operating loss and adjusted EBITDA improved in fiscal year 2017 primarily due to cost reduction activities that lowered
general and administrative costs, including a reduction in salaries and benefits of $4.8 million, professional fees of $5.1 million
and other costs of $4.5 million, partially offset by a decline in revenue discussed above. Additionally, fiscal year 2016 operating
loss included the impairment of goodwill for Bristow Academy of $10.2 million. Also, in fiscal year 2017, adjusted EBITDA
benefited from the favorable impact of changes in foreign currency exchange rates on our Corporate results of $10.9 million
compared to fiscal year 2016.

During fiscal years 2017 and 2016, we recorded $10.9 million and $7.7 million, respectively, related to organizational
restructuring costs, and fiscal years 2017 and 2016 include $7.6 million and $5.4 million, respectively, of inventory impairments,
and fiscal year 2016 includes the impairment of $10.2 million of Bristow Academy's goodwill, all of which are included in operating
loss and excluded from adjusted EBITDA.

Fiscal Year 2016 Compared to Fiscal Year 2015

Operating revenue decreased primarily due to a decline in Bristow Academy revenue of $8.8 million, partially offset by an
increase in third party part sales of $2.6 million and the correction of an error in fiscal year 2015 discussed below, which decreased
operating revenue by $4.1 million in fiscal year 2015.

Operating loss during fiscal year 2016 included the impairment of goodwill for Bristow Academy of $10.2 million, which
resulted from lower forecasted results for future periods, and impairment of inventories of $5.4 million. For additional details on
the impairment of goodwill, see Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual
Report. Operating loss for fiscal year 2015 also included impairment of inventories of $7.2 million. Adjusted EBITDA improved
primarily due to a favorable impact from changes in foreign currency exchange rates on our Corporate results of $6.7 million
during fiscal year 2016. We recognized a benefit in both operating loss and adjusted EBITDA from a decline in compensation
expense of $24.4 million primarily due to management’s decision not to award bonuses during fiscal year 2016 and for our
performance cash plan resulting from recent Common Stock price performance.

During fiscal year 2016 we recorded severance expense of $6.2 million related to voluntary and involuntary separation plans
and during fiscal year 2015 we recorded $5.5 million of expense related to CEO succession, both of which are excluded from
adjusted EBITDA.

During fiscal year 2015, we determined that we had been improperly capitalizing profit on intercompany technical services
billings related to aircraft modifications. To correct this error, we reduced property and equipment, net of accumulated depreciation,
by $4.4 million and increased deferred gains on aircraft sold and leased back included within other long-term liabilities by $0.9
million as of December 31, 2014. The impact on our consolidated statements of operations for fiscal year 2015 was an increase
in direct costs of $4.1 million. The error was not material to our consolidated financial statements for fiscal year 2015 or our
previously reported consolidated financial statements for any period.

Gain (loss) on disposal of assets

The loss on disposal of assets in fiscal year 2017 included impairment charges of $12.5 million related to 14 held for sale
aircraft and losses of $2.0 million from the sale or disposal of 14 aircraft and other equipment. The loss on disposal of assets in
fiscal year 2016 included impairment charges of $29.6 million related to 16 held for sale aircraft and losses of $1.1 million from
the sale or disposal of 35 aircraft and other equipment. The loss on disposal of assets in fiscal year 2015 includes impairment
charges of $36.1 million related to 27 held for sale aircraft, partially offset by gains of $0.2 million from the sale of 44 aircraft
and other equipment.

Interest Expense, Net

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

(In thousands, except percentages)

Interest income .............................. $
Interest expense .............................
Amortization of debt discount .......
Amortization of debt fees ..............
Capitalized interest ........................

(115)
(11,627)
(606)
(3,037)
(406)
Interest expense, net ............... $ (49,919) $ (34,128) $ (29,354) $ (15,791)

943
(53,666)
(1,606)
(5,759)
10,169

956
(37,834)
(4,323)
(2,712)
14,559

1,058
(42,039)
(1,000)
(2,722)
10,575

(10.9)% $
(27.7)%
(60.6)%
(111.6)%
(3.8)%
(46.3)% $

102
(4,205)
3,323
(10)
(3,984)
(4,774)

10.7 %
(11.1)%
76.9 %
(0.4)%
(27.4)%
(16.3)%

Interest expense, net increased in fiscal year 2017 compared to fiscal year 2016 primarily due to an increase in borrowings
and an increase in amortization of debt fees. Interest expense, net increased in fiscal year 2016 compared to fiscal year 2015
primarily due to an increase in interest expense due to an increase in borrowings and a decrease in capitalized interest resulting
from lower construction in progress, partially offset by lower amortization of debt discount.

Other Income (Expense), Net

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

(In thousands, except percentages)

Foreign currency gains (losses) by
region: ........................................
Europe Caspian .......................... $ (18,511) $ (11,127) $
Africa .........................................
Americas ....................................
Asia Pacific ................................
Corporate and other....................
Foreign currency losses ..........
Other.......................................
Other income (expense),

(148)
1,682
(427)
14,456
(2,948)
307

(421)
(1,050)
1,307
6,951
(4,340)
82

net .................................. $

(2,641) $

(4,258) $

(9,264) $
(529)
(250)
(1,211)
4,706
(6,548)
1,501

(7,384)
273
2,732
(1,734)
7,505
1,392
225

(66.4)% $
64.8 %
260.2 %
(132.7)%
108.0 %
32.1 %
274.4 %

(1,863)
108
(800)
2,518
2,245
2,208
(1,419)

(20.1)%
20.4 %
(320.0)%
207.9 %
47.7 %
33.7 %
(94.5)%

(5,047) $

1,617

38.0 % $

789

15.6 %

Other income (expense), net decreased in fiscal year 2017 compared to fiscal year 2016 primarily due to less of an unfavorable
impact of changes in foreign currency exchange rates. The foreign currency gains (losses) within other income (expense), net are
reflected within adjusted EBITDA of the regions shown in the table above.

Other income (expense), net decreased in fiscal year 2016 compared to fiscal year 2015 primarily due to less of an unfavorable
impact of changes in foreign currency exchange rates. Additionally, during fiscal year 2015, we recognized a gain of $3.9 million
on the sale of unconsolidated affiliates, partially offset by $2.6 million incurred in premium and fees for the repurchase of a portion
of our 6 ¼% Senior Notes, both of which are included in other income (expense), net on our consolidated statements of operations.

Taxes

Effective tax rate (1).........................
Net foreign tax on non-U.S.

earnings ....................................... $ 5,165

Expense (benefit) of foreign

earnings indefinitely reinvested
abroad.......................................... $ 1,546
Valuation allowance........................ $37,043
Benefit of foreign tax deduction in

the U.S......................................... $ (3,540)

Fiscal Year Ended
March 31,

Favorable
(Unfavorable)

2017

2016

2015

2017 vs 2016

2016 vs 2015

(22.6)%

2.6%

(In thousands, except percentages)
20.4%

(25.2)% (969.2)%

(17.8)% (87.3)%

$ 5,079

$ 30,515

(86)

(1.7)% $ 25,436

83.4 %

$(12,634)

$ 20,068

$(52,428)
$ 4,510

$ (14,180)

(112.2)% $ (39,794)

(75.9)%

$ (16,975)

(84.6)% $ (15,558)

(345.0)%

$ (2,092)

— $

1,448

69.2 % $

2,092

144.5 %

Expense (benefit) from change in

$
tax contingency ........................... $
Foreign statutory rate reduction...... $
$
Benefit from foreign tax credits...... $ — $
Impact of goodwill impairment ...... $ 1,467
_______________

238
240

382
(901)

$
$
— $(12,566)
$

(65)
144
— $ (1,141)
—
7,866

$
— $

$ 9,333

37.7 % $
(126.6)% $

(447)
901
$ (12,566)
84.3 % $ (9,333)

(310.4)%
79.0 %
(100.0)%
(118.6)%

(1) The effective tax rate for fiscal year 2017 represents income tax expense rate on a pre-tax net loss for the fiscal year. Due to a pre-tax
loss for fiscal year 2016, the effective tax rate for fiscal year 2016 represents the income tax benefit rate recorded for the period.

* percentage change too large to be meaningful or not applicable

A portion of our aircraft fleet is owned directly or indirectly by our wholly owned Cayman Island subsidiaries. Our foreign
operations combined with our leasing structure provided a material benefit to the effective tax rates for fiscal years 2017, 2016
and 2015. In fiscal year 2017, our unfavorable permanent differences, such as valuation allowances and non-tax deductible goodwill
write-off had the effect of increasing our income tax expense and reducing our effective tax rate applied to pre-tax losses. Also,
our effective tax rates for fiscal years 2017, 2016 and 2015 benefited from the permanent investment outside the U.S. of foreign
earnings, upon which no U.S. tax has been provided.

Fiscal Year 2017 Compared to Fiscal Year 2016

Our effective income tax rate for fiscal year 2017 is (22.6)% representing the income tax expense rate on a pre-tax net loss
for the fiscal year, which includes $37.0 million of tax expense for an increase in valuation allowance, a one-time non-cash tax
effect from repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions resulting
in additional income tax expense of $22.5 million, $0.2 million of tax expense due to the revaluation of our deferred taxes as a
result of the enactment of a tax rate reduction in the U.K. and Norway and $3.5 million tax benefit due to the deduction of foreign
tax in lieu of foreign tax credits.

Fiscal Year 2016 Compared to Fiscal Year 2015

Our effective income tax rate for fiscal year 2016 is 2.6% representing the income tax benefit rate for the fiscal year, which
was reduced by $20.1 million of tax expense for an increase in valuation allowance and increased by $0.9 million of tax benefit
due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction in the U.K. and a $2.1 million tax
benefit due to the deduction of foreign tax in lieu of foreign tax credits.

Noncontrolling Interest

Net loss attributable to noncontrolling interest was $6.4 million for fiscal year 2017 compared to a net loss attributable to
noncontrolling interest of $4.7 million for fiscal year 2016 primarily due to lower earnings from Eastern Airways during fiscal
year 2017 compared to fiscal year 2016. Net income (loss) attributable to noncontrolling interests decreased to net loss attributable
to noncontrolling interest of $4.7 million for fiscal year 2016 compared to net income attributable to noncontrolling interest of
$4.4 million for fiscal year 2015 due to lower earnings from Eastern Airways during fiscal year 2016 compared to fiscal year 2015,
partially offset by the addition of Airnorth in January 2015. See Note 2 in the “Notes to Consolidated Financial Statements”
included elsewhere in this Annual Report.

Liquidity and Capital Resources

Cash Flows

Operating Activities

Net cash provided by operating activities was $10.7 million, $116.0 million and $253.2 million during fiscal years 2017,
2016 and 2015, respectively. Changes in non-cash working capital generated $18.4 million, $23.0 million and $1.9 million in cash
flows during fiscal years 2017, 2016 and 2015, respectively. During fiscal year 2017, we received dividends less than recorded
earnings of $4.4 million and during fiscal years 2016 and 2015 we received dividends in excess of recorded earnings of $2.6
million and $9.4 million, respectively. Cash flow from operations decreased in fiscal year 2017 due to the decreased earnings
which resulted from the decline in oil and gas activity across all regions and includes $20.9 million in organizational restructuring
costs in fiscal year 2017. Cash flow from operations decreased in fiscal year 2016 due to lower earnings which resulted from the
decline in oil and gas activity across all regions, $47.1 million of higher rent expense due to additional leased aircraft and includes
$27.0 million in organizational restructuring costs in fiscal year 2016.

Investing Activities

Cash flows used in investing activities were $116.3 million, $316.8 million and $203.1 million for fiscal years 2017, 2016

and 2015, respectively. Cash was used primarily for capital expenditures as follows:

Fiscal Year Ended March 31,

2017

2016

2015

Number of aircraft delivered:

Medium ..........................................................................................
Large ..............................................................................................
SAR aircraft ...................................................................................
Total aircraft............................................................................

5
—
4
9

1
3
4
8

6
10
5
21

Capital expenditures (in thousands):

Aircraft and related equipment ...................................................... $ 127,447
7,663
Other ..............................................................................................
Total capital expenditures....................................................... $ 135,110

$ 285,530
86,845
$ 372,375

$ 476,368
125,466
$ 601,834

In addition to these capital expenditures, investing cash flows were impacted by the following items during the last three

fiscal years:

Fiscal Year 2017 — During fiscal year 2017, we received proceeds of $18.5 million primarily from the sale or disposal of

14 aircraft and certain other equipment.

Fiscal Year 2016 — During fiscal year 2016, we received $30.8 million in proceeds primarily from the sale or disposal of
32 aircraft and certain other equipment (including $13.4 million in insurance recoveries) and $29.2 million from the sale of three
aircraft, which we subsequently leased back.

Fiscal Year 2015 — During fiscal year 2015, we received $25.7 million in proceeds from the disposal of 30 aircraft and
certain other equipment. Also, we received $8.5 million in insurance recoveries and $380.7 million from the sale of 14 aircraft
which we subsequently leased back. Additionally, we sold our 50% interest in HCA for $4.2 million. Cash was used for the
acquisition of an 85% interest in Airnorth for $20.3 million, net of cash received.

For further details on Airnorth, see Note 2 in the “Notes to Consolidated Financial Statements” included elsewhere in this

Annual Report.

Financing Activities

We generated cash from financing activities of $107.5 million and $191.6 million during fiscal years 2017 and 2016,

respectively, and used cash in financing activities of $128.3 million during fiscal year 2015.

During fiscal year 2017, we received $300.6 million from borrowings on our Revolving Credit Facility, $200 million from
the Lombard debt and $200 million from the Macquarie debt. During fiscal year 2017, we used cash to repay debt of $570.3 million
and pay dividends of $9.8 million on our Common Stock.

During fiscal year 2016, we received $580.9 million from borrowings on our Revolving Credit Facility, $200 million from
borrowings on our $200 million Term Loan Credit Facility and $127.4 million from borrowings on our $350 million Term Loan.
During fiscal year 2016, we used cash to repay debt of $677.0 million, including $115 million of our 3% Convertible Senior Notes,
and pay dividends of $38.1 million on our Common Stock.

During fiscal year 2015, we received $453.0 million from borrowings on our Revolving Credit Facility and $5.2 million in
proceeds from the issuance of Common Stock upon exercise of stock options. During fiscal year 2015, we used cash to repay debt
of $460.3 million, pay dividends of $45.1 million on our Common Stock and repurchase $80.8 million of our Common Stock.

Future Cash Requirements

Debt Obligations

Total debt as of March 31, 2017 was $1.3 billion, of which $131.1 million was classified as current. Our significant debt
maturities relate to our Revolving Credit Facility, $200 million Lombard debt, $200 million Macquarie debt, $350 million Term
Loan and 6 ¼% Senior Notes. The following table summarizes the maturity year for our significant debt as of March 31, 2017:

Debt
Revolving Credit Facility ........................
April 29, 2019
Lombard Debt.......................................... December 29, 2023 and January 23, 2024
March 31, 2022
Macquarie Debt .......................................
April 29, 2019
Term Loan ...............................................
October 15, 2022
6 ¼% Senior Notes ..................................

Maturity

See further discussion of outstanding debt as of March 31, 2017 and our debt issuances and our debt redemptions in Note

5 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual Report.

Pension Obligations

As of March 31, 2017, we had recorded on our balance sheet a $61.6 million pension liability related to the Bristow Helicopters
Limited and Bristow International Aviation (Guernsey) Limited pension plans. The liability represents the excess of the present
value of the defined benefit pension plan liabilities over the fair value of plan assets that existed at that date. The minimum funding
rules of the U.K. require the employer to agree to a funding plan with the plans’ trustee (the “Trustee”) for securing that the pension
plan has sufficient and appropriate assets to meet its technical provisions liabilities. In addition, where there is a shortfall in assets
against this measure, we are required to make scheduled contributions in amounts sufficient to bring the plan up to 100% funded
as quickly as can be reasonably afforded. The employer contributions for the main U.K. pension plan for fiscal years 2017, 2016
60

and 2015 were £12.4 million ($15.5 million), £12.4 million ($17.8 million), and £12.5 million ($18.6 million), respectively. See
further discussion of our pension plans in Note 9 in the “Notes to Consolidated Financial Statements” included elsewhere in this
Annual Report.

Contractual Obligations, Commercial Commitments and Off Balance Sheet Arrangements

We have various contractual obligations that are recorded as liabilities on our consolidated balance sheet. Other items, such
as certain purchase commitments, interest payments and other executory contracts are not recognized as liabilities on our
consolidated balance sheet but are included in the table below. For example, we are contractually committed to make certain
minimum lease payments for the use of property and equipment under operating lease agreements.

The following table summarizes our significant contractual obligations and other commercial commitments on an
undiscounted basis as of March 31, 2017 and the future periods in which such obligations are expected to be settled in cash. In
addition, the table reflects the timing of principal and interest payments on outstanding borrowings as of March 31, 2017. Additional
details regarding these obligations are provided in Note 5, 6, 7 and 9 in the “Notes to Consolidated Financial Statements” included
elsewhere in this Annual Report.

Payments Due by Period

Fiscal Year Ending March 31,

Total

2018

2019 -
2020

2021 -
2022

2023 and
beyond

(In thousands)

Contractual obligations:

Long-term debt and short-term borrowings:
Principal (1) ..................................................
Interest (2).....................................................
Aircraft operating leases (3)............................
Other operating leases (4)................................
Pension obligations (5)....................................
Aircraft purchase obligations (6) (7).................
Other purchase obligations (8) ........................
Total contractual cash obligations...............

Other commercial commitments:

$ 1,293,557
262,217
509,428
76,817
68,289
408,268
55,148
$ 2,673,724

$ 134,009
59,027
179,940
11,319
15,844
61,238
55,148
$ 516,525

Letters of credit..............................................
Contingent consideration (9) ...........................
Total commercial commitments..................

11,959
3,051
15,010

$ 11,959
—
$ 11,959

428,834
96,030
260,844
18,740
31,688
159,498
—
995,634

$ 186,223
76,536
59,257
14,390
20,757
140,860
—
$ 498,023

$ 544,491
30,624
9,387
32,368
—
46,672
—
$ 663,542

— $

3,051
3,051

— $
—
— $

—
—
—

_______________

(1)

(2)

Excludes unamortized discount of $0.2 million on the Term Loan and unamortized debt issuance cost of $11.3 million.

Interest payments for variable rate interest debt are based on interest rates as of March 31, 2017.

(3) Represents separate operating leases for aircraft. During fiscal year 2017, we entered into 11 new aircraft operating leases. We have not taken delivery

of one of the aircraft for which we signed a lease. The related amounts for that lease are not included in the table above.

(4) Represents minimum rental payments required under non-operating leases that have initial or remaining non-cancelable lease terms in excess of one

year.

(5) Represents expected funding for pension benefits in future periods. These amounts are undiscounted and are based on the expectation that the U.K.
pension plan will be fully funded in approximately five years. As of March 31, 2017, we had recorded on our balance sheet $61.6 million pension liability
associated with these obligations. The timing of the funding is dependent on actuarial valuations and resulting negotiations with the plan trustees.

(6)

(7)

Includes $2.9 million for final payments for aircraft delivered during fiscal year 2017 that is included in accounts payable as of March 31, 2017.

Includes $80.6 million for five aircraft orders that can be cancelled prior to delivery dates. During fiscal year 2017, we made non-refundable deposits
of $4.5 million related to these aircraft.

(8) Other purchase obligations primarily represent unfilled purchase orders for aircraft parts, commitments associated with upgrading facilities at our bases
and non-cancelable power-by-the-hour maintenance commitments. For further details on the non-cancelable power-by-the-hour maintenance
commitments, see Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual Report.

(9)

Includes $3.1 million related to Airnorth as of March 31, 2017. The Airnorth purchase agreement includes a potential earn-out of A$17 million ($13
million) to be paid over four years. During fiscal year 2016, a portion of the first year earn-out payment of A$2 million ($1.5 million) was paid as Airnorth
achieved agreed performance targets. The remaining Airnorth earn-out, which is contingent upon both the achievement of agreed performance targets
and the continued employment of the selling shareholders, will be included as general and administrative expense in our consolidated statements of

operations as earned. The earn-out for Airnorth is remeasured to fair value at each reporting date until the contingency is resolved and any changes in
estimated fair value are recorded as accretion expense included in interest expense on our consolidated statements of operations.

Financial Condition and Sources of Liquidity

The following table summarizes our capital structure and sources of liquidity as of March 31, 2017 and 2016 (in thousands):

March 31,

2017

2016

Capital structure:

6 ¼% Senior Notes due 2022 .................................................................... $
401,535
Term Loan ..................................................................................................
261,907
Term Loan Credit Facility..........................................................................
45,900
Revolving Credit Facility ...........................................................................
139,100
Lombard Debt ............................................................................................
196,832
Macquarie Debt ..........................................................................................
200,000
Airnorth Debt .............................................................................................
16,471
Eastern Airways Debt.................................................................................
15,326
Other Debt ..................................................................................................
16,293
Total debt (1)...........................................................................................................
1,293,364
1,294,232
Stockholders’ investment ...........................................................................
Total capital................................................................................................ $ 2,587,596

401,535
335,665
200,000
144,000
—
—
19,652
15,643
24,394
1,140,889
1,509,892
$ 2,650,781

Liquidity:

Cash............................................................................................................ $
Undrawn borrowing capacity on Revolving Credit Facility ......................
Total liquidity............................................................................................. $
Adjusted debt to equity ratio (2)..........................................................................

96,656
260,320
356,976

104,310
255,420
359,730

145.8%

119.3%

_______________

(1)

Total debt excludes unamortized debt issuance costs.

(2) As of March 31, 2017 and 2016, adjusted debt includes balance sheet debt of $1.3 billion and $1.1 billion, respectively, excluding unamortized debt
issuance costs, the net present value of operating leases of $520.0 million and $578.3 million, respectively, letters of credit, bank guarantees and financial
guarantees of $12.0 million and $11.7 million, respectively, and the unfunded pension liability of $61.6 million and $70.1 million, respectively. Adjusted
debt to equity ratio is a non-GAAP financial measure that management believes provides meaningful supplemental information regarding our financial
position.

We manage our liquidity through generation of cash from operations while assessing our funding needs on an ongoing basis.
Historically, while we have generated cash from operations, financing cash flows also have been a significant source of liquidity
over the past several years. The significant factors that affect our overall liquidity include cash from or used to fund operations,
capital expenditure commitments, debt service, pension funding, dividends, adequacy of bank lines of credit and our ability to
attract capital on satisfactory terms.

Substantially all of our cash balances are held outside the U.S. and are generally used to meet the liquidity needs of our non-
U.S. operations. Most of our cash held outside the U.S. could be repatriated to the U.S., but under current law, any such repatriation
would be subject to U.S. federal income tax, as adjusted for applicable foreign tax credits. We have provided for U.S. federal
income taxes on undistributed foreign earnings where we have determined that such earnings are not indefinitely reinvested. We
expect to meet the continuing funding requirements of our U.S. operations with cash generated by such U.S. operations, cash from
earnings generated by non-U.S. operations that are not indefinitely reinvested and our existing Revolving Credit Facility. If cash
held by non-U.S. operations is required for funding operations in the U.S., and if U.S. tax has not previously been provided on
the earnings of such operations, we would make a provision for additional U.S. tax in connection with repatriating this cash, which
may be material to our cash flows and results of operations.

We expect that our cash on deposit as of May 19, 2017 of approximately $111.0 million, proceeds from aircraft sales, available
borrowing capacity under our Revolving Credit Facility ($218.2 million as of May 19, 2017) and proceeds from the $230 million
secured equipment financing described under “Executive Overview — Recent Events — GE Commitment Letter”, as well as any
future financings (which may include additional equipment financings and capital market transactions), will be sufficient to satisfy
our operating needs, existing capital commitments and other contractual cash obligations, including our debt obligations.

Exposure to Currency Fluctuations

See our discussion of the impact of market risk, including our exposure to currency fluctuations, on our financial position
and results of operations discussed under Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” included
elsewhere in this Annual Report.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in
the U.S. In many cases, the accounting treatment of a particular transaction is specifically dictated by generally accepted accounting
principles, whereas, in other circumstances, generally accepted accounting principles require us to make estimates, judgments and
assumptions that we believe are reasonable based upon information available. We base our estimates and judgments on historical
experience, professional advice and various other sources that we believe to be reasonable under the circumstances. Actual results
may differ from these estimates under different assumptions and conditions. We believe that of our significant accounting policies,
as discussed in Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual Report, the following
involve a higher degree of judgment and complexity. Our management has discussed the development and selection of critical
accounting policies and estimates with the Audit Committee of our board of directors and the Audit Committee has reviewed our
disclosure.

Taxes

Our annual tax provision is based on expected taxable income, statutory rates and tax planning opportunities available to
us in the various jurisdictions in which we operate. The determination and evaluation of our annual tax provision and tax positions
involves the interpretation of the tax laws in the various jurisdictions in which we operate and requires significant judgment and
the use of estimates and assumptions regarding significant future events such as the amount, timing and character of income,
deductions and tax credits. Changes in tax laws, regulations, agreements, tax treaties and foreign currency exchange restrictions
or our level of operations or profitability in each jurisdiction would impact our tax liability in any given year. We also operate in
many jurisdictions where the tax laws relating to the offshore oil service industry are open to interpretation which could potentially
result in tax authorities asserting additional tax liabilities. While our annual tax provision is based on the best information available
at the time, a number of years may elapse before the ultimate tax liabilities in the various jurisdictions are determined.

We recognize foreign tax credits available to us to offset the U.S. income taxes due on income earned from foreign sources.
These credits are limited by the total income tax on the U.S. income tax return as well as by the ratio of foreign source income in
each statutory category to total income. In estimating the amount of foreign tax credits that are realizable, we estimate future
taxable income in each statutory category. These estimates are subject to change based on changes in the market conditions in
each statutory category and the timing of certain deductions available to us in each statutory category. We periodically reassess
these estimates and record changes to the amount of realizable foreign tax credits based on these revised estimates. Changes to
the amount of realizable foreign tax credits can be significant given any material change to our estimates on which the realizability
of foreign tax credits is based.

We maintain reserves for estimated income tax exposures in jurisdictions of operation. The expenses reported for these taxes,
including our annual tax provision, include the effect of reserve provisions and changes to reserves that we consider appropriate,
as well as related interest. Tax exposure items primarily include potential challenges to intercompany pricing, disposition
transactions and the applicability or rate of various withholding taxes. These exposures are resolved primarily through the settlement
of audits within these tax jurisdictions or by judicial means, but can also be affected by changes in applicable tax law or other
factors, which could cause us to conclude that a revision of past estimates is appropriate. We believe that an appropriate liability
has been established for estimated exposures. However, actual results may differ materially from these estimates. We review these
liabilities quarterly. During fiscal years 2017, 2016 and 2015, we had accruals and releases of reserves for estimated tax exposures
of $0.2 million, $0.4 million and $0.5 million, respectively. We recognize interest and penalties accrued related to unrecognized
tax benefits as a component of our provision for income taxes. As of March 31, 2017 and 2016, we had $1.3 million and $1.1
million, respectively, of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized.

We do not believe it is possible to reasonably estimate the potential effect of changes to the assumptions and estimates
identified because the resulting change to our tax liability, if any, is dependent on numerous factors which cannot be reasonably
estimated. These include, among others, the amount and nature of additional taxes potentially asserted by local tax authorities;
the willingness of local tax authorities to negotiate a fair settlement through an administrative process; the impartiality of the local
courts; and the potential for changes in the tax paid to one country to either produce, or fail to produce, an offsetting tax change
in other countries. Our experience has been that the estimates and assumptions we have used to provide for future tax assessments
have proven to be appropriate. However, past experience is only a guide and the potential exists that the tax resulting from the
resolution of current and potential future tax controversies may differ materially from the amounts accrued.

Judgment is required in determining whether deferred tax assets will be realized in full or in part. When it is estimated to
be more-likely-than-not that all or some portion of specific deferred tax assets, such as foreign tax credit carryovers or net operating
loss carry forwards, will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that
are estimated to not be realizable. As of March 31, 2017, we have established deferred tax assets for foreign taxes we expect to
be realizable. Our ability to realize the benefit of our deferred tax assets requires that we achieve certain future earnings levels
prior to the expiration of our foreign tax credit carryforwards. In the event that our earnings performance projections or future
financial conditions do not indicate that we will be able to benefit from our deferred tax assets, valuation allowances would be
established following the “more-likely-than-not” criteria. We periodically evaluate our ability to utilize our deferred tax assets
and, in accordance with accounting guidance related to accounting for income taxes, will record any resulting adjustments that
may be required to deferred income tax expense in the period for which an existing estimate changes. If our facts or financial
results were to change, thereby impacting the likelihood of establishing and then realizing the deferred tax assets, judgment would
have to be applied to determine changes to the amount of the valuation allowance in any given period. Such changes could result
in either a decrease or an increase in our provision for income taxes, depending on whether the change in judgment resulted in an
increase or a decrease to the valuation allowance. We continually evaluate strategies that could allow for the future utilization of
our deferred tax assets.

We consider the earnings of certain foreign subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates
that future cash generation will be sufficient to meet future U.S. cash needs and specific plans for foreign reinvestment of those
earnings. As such, as of March 31, 2017, we have not provided for U.S. deferred taxes on the unremitted earnings of certain
foreign subsidiaries that are indefinitely invested abroad of $717.1 million. Should we decide to make distributions from the
unremitted earnings of these subsidiaries in the future, additional tax liabilities would arise, offset by any available foreign tax
credits. At the current time, a determination of the amount of unrecognized deferred tax liability is not practical.

We have not provided for deferred taxes in circumstances where we expect that, due to the structure of operations and
applicable law, the operations in such jurisdictions will not give rise to future tax consequences. Should our expectations change
regarding the expected future tax consequences, we may be required to record additional deferred taxes that could have a material
adverse effect on our consolidated financial position, results of operations and cash flows.

On June 23, 2016, the U.K. voted to leave the European Union (EU). The exact nature, process and timing of the U.K.’s
exit from the EU are unknown. This has to date created business uncertainty: The U.K.’s future approach to EU freedom of
movement; market volatility; fluctuations in foreign exchange rates; changes to commodity prices; interest rates; and potential
changes to existing double tax treaties, all of which may impact us. Although it is too early to quantify the precise impact of the
U.K.’s exit from the EU, we will continue to monitor the economic consequences of the referendum.

Property and Equipment

Our net property and equipment represents 72% of our total assets as of March 31, 2017. We determine the carrying value
of these assets based on our property and equipment accounting policies, which incorporate our estimates, assumptions, and
judgments relative to capitalized costs, useful lives and salvage values of our assets.

Our property and equipment accounting policies are also designed to depreciate our assets over their estimated useful lives.
The assumptions and judgments we use in determining the estimated useful lives and residual values of our aircraft reflect both
historical experience and expectations regarding future operations, utilization and performance of our assets. The use of different
estimates, assumptions and judgments in the establishment of property and equipment accounting policies, especially those
involving the useful lives and residual values of our aircraft, would likely result in materially different net book values of our
assets and results of operations.

Useful lives and residual values of aircraft are difficult to estimate due to a variety of factors, including changes in operating
conditions or environment, the introduction of technological advances in aviation equipment, changes in market or economic
conditions, including changes in demand for certain types of aircraft, and changes in laws or regulations affecting the aviation or
offshore oil and gas industry. We evaluate the remaining useful lives of our aircraft when certain events occur that directly impact
our assessment of their remaining useful lives. Our consideration of ultimate residual value takes into account current expectations
of fair market value and the expected time to ultimate disposal. The determination of the ultimate value to be received upon sale
depends largely upon the condition of the aircraft and the flight time left on the aircraft and major components until the next major
maintenance check is required. The future value also depends on the aftermarket that exists as of that date, which can differ
substantially over time.

We review our property and equipment for impairment when events or changes in circumstances indicate that the carrying
value of assets or asset groups may be impaired or when reclassifications are made between property and equipment and assets
held for sale.

Asset impairment evaluations for held for use asset groups are based on estimated undiscounted cash flows for the asset
group being evaluated. If the sum of the expected future cash flows is less than the carrying amount of the asset group, we would
be required to recognize an impairment loss. When determining fair value, we utilize various assumptions, including projections
of future cash flows. A change in these underlying assumptions will cause a change in the results of the tests and, as such, could
cause fair value to be less than the carrying amounts. In such event, we would then be required to record a corresponding charge,
which would reduce our earnings. We continue to evaluate our estimates and assumptions and believe that our assumptions, which
include an estimate of future cash flows based upon the anticipated performance of the underlying contracts, are appropriate.
Impairment evaluations for assets held for sale are based on estimates derived from historical experience with sales, recent
transactions involving similar assets, quoted market prices for similar assets and condition and location of aircraft to be sold.

Supply and demand are the key drivers of aircraft idle time and our ability to contract our aircraft at economical rates. During
periods of oversupply, it is not uncommon for us to have aircraft idled for extended periods of time, which could be an indication
that an asset group may be impaired. In most instances our aircraft could be used interchangeably. In addition, our aircraft are
generally equipped to operate throughout the world. Because our aircraft are mobile, we may move aircraft from a weak geographic
market to a stronger geographic market if an adequate opportunity arises to do so. As such, our aircraft are considered to be
interchangeable within classes or asset groups and accordingly, our impairment evaluation is made by asset group. Additionally,
our management periodically makes strategic decisions related to our fleet that involve the possible removal of all or a substantial
portion of specific aircraft types from our fleet, at which time these aircraft are reclassified to held for sale and subsequently sold
or otherwise disposed of.

For aircraft types that are still operating where management has made the decision to sell or abandon the aircraft type at a
fixed date, an analysis is completed to determine whether depreciation needs to be accelerated or additional depreciation recorded
for an expected reduction in residual value at the planned disposal date.

Where a determination has been made to exit an entire asset group, the asset group is reviewed for potential impairment.
An impairment loss is recorded in the period in which it is determined that the aggregate carrying amount of assets within an asset
group is not recoverable. This requires us to make judgments regarding long-term forecasts of future revenue and cost related to
the assets subject to review. In turn, these forecasts are uncertain in that they require assumptions about demand for our services,
future market conditions and technological developments. Significant and unanticipated changes to these assumptions could require
a provision for impairment in a future period. Given the nature of these evaluations and their application to specific asset groups
and specific times, it is not possible to reasonably quantify the impact of changes in these assumptions.

Pension Benefits

Pension obligations are actuarially determined and are affected by assumptions including discount rates, compensation
increases and employee turnover rates. The recognition of these obligations through the statement of income is also affected by
assumptions about expected returns on plan assets. We evaluate our assumptions periodically and make adjustments to these
assumptions and the recorded liabilities as necessary.

Three of the most critical assumptions are the expected long-term rate of return on plan assets, the assumed discount rate
and the mortality rate. We evaluate our assumptions regarding the estimated long-term rate of return on plan assets based on
historical experience and future expectations on investment returns, which are calculated by our third-party investment advisor
utilizing the asset allocation classes held by the plans’ portfolios. We utilize a British pound sterling denominated AA corporate
bond index as a basis for determining the discount rate for our U.K. plans. We base mortality rates utilized on actuarial research
on these rates, which are adjusted to allow for expected mortality within our industry segment and, where available, individual
plan experience data. Changes in these and other assumptions used in the actuarial computations could impact our projected benefit
obligations, pension liabilities, pension expense and other comprehensive income. We base our determination of pension expense
on a fair value valuation of assets and an amortization approach for assessed gains and losses that reduces year-to-year volatility.
This approach recognizes investment and other actuarial gains or losses over the average remaining lifetime of the plan members.
Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related
value of assets and the actual return based on the market-related value of assets.

Allowance for Doubtful Accounts

We establish allowances for doubtful accounts on a case-by-case basis when we believe the payment of amounts owed to
us is unlikely to occur. In establishing these allowances, we consider a number of factors, including our historical experience,
changes in our client’s financial position and restrictions placed on the conversion of local currency to U.S. dollars, as well as
disputes with clients regarding the application of contract provisions to our services.

We derive a significant portion of our revenue from services to major integrated oil and gas companies and government-
owned or government-controlled oil and gas companies. Our receivables are concentrated in certain oil-producing countries. We
generally do not require collateral or other security to support client receivables. If the financial condition of our clients was to
deteriorate or their access to freely-convertible currency was restricted, resulting in impairment of their ability to make the required
payments, additional allowances may be required.

Inventory Allowance

We maintain inventory that primarily consists of spare parts to service our aircraft. We establish an allowance to distribute
the cost of spare parts expected to be on hand at the end of an aircraft type’s life over the service lives of the related equipment,
taking into account the estimated salvage value of the parts. Also, we periodically review the condition and continuing usefulness
of the parts to determine whether the realizable value of this inventory is lower than its book value. Parts related to aircraft types
that our management has determined will no longer be included in our fleet or will be substantially reduced in our fleet in future
periods are specifically reviewed. If our valuation of these parts is significantly lower than the book value of the parts, an additional
provision may be required.

Contingent Liabilities

We establish reserves for estimated loss contingencies when we believe a loss is probable and the amount of the loss can be
reasonably estimated. Our contingent liability reserves relate primarily to potential tax assessments, litigation, personal injury
claims and environmental liabilities. Income for each reporting period includes revisions to contingent liability reserves resulting
from different facts or information which becomes known or circumstances which change and affect our previous assumptions
with respect to the likelihood or amount of loss. Such revisions are based on information which becomes known or circumstances
that change after the reporting date for the previous period through the reporting date of the current period. Reserves for contingent
liabilities are based upon our assumptions and estimates regarding the probable outcome of the matter. Should the outcome differ
from our assumptions and estimates or other events result in a material adjustment to the accrued estimated reserves, revisions to
the estimated reserves for contingent liabilities would be required to be recognized.

Goodwill Impairment

We perform a test for impairment of our goodwill annually as of March 31 and whenever events or circumstances indicate
impairment may have occurred. We first assess qualitative factors to determine if it is more-likely-than-not that the fair value of
a reporting unit is less than its carrying amount and if a quantitative assessment should be performed. An entity may also bypass
the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative impairment test. The
qualitative factors considered during our assessment include the capital markets environment, global economic conditions, the
demand for helicopter services, changes in our results of operations, the magnitude of the excess of fair value over the carrying
amount of each reporting unit as determined in prior years’ quantitative testing and other factors.

We estimate the implied fair value of the reporting units using a variety of valuation methods, including the income and
market approaches. The determination of estimated fair value require us to use significant unobservable inputs, representative of
a Level 3 fair value measurement, including assumptions related to the future performance of the reporting units, such as projected
demand for our services and rates.

The income approach is based on a discounted cash flow model, which utilizes present values of cash flows to estimate fair
value. The future cash flows are projected based on our estimates of future rates for our services, utilization, operating costs,
capital requirements, growth rates and terminal values. Forecasted rates and utilization take into account current market conditions
and our anticipated business outlook. Operating costs are forecasted using a combination of our historical average operating costs
and expected future costs, including ongoing cost reduction initiatives. Capital requirements in the discounted cash flow model
are based on management’s estimates of future capital costs resulting from expected market demand in future periods. The estimated
capital requirements include cash outflows for new aircraft, infrastructure and improvements. A terminal period is used to reflect
our estimate of stable, perpetual growth. The future cash flows are discounted using a market-participant risk-adjusted weighted
average cost of capital (“WACC”) for each of the reporting units and in total. These assumptions are derived from unobservable
inputs and reflect management’s judgments and assumptions.

The market approach is based upon the application of price-to-earnings multiples to management’s estimates of future
earnings adjusted for a control premium. Management’s earnings estimates are derived from unobservable inputs that require
significant estimates, judgments and assumptions as described in the income approach.

For purposes of the goodwill impairment test, we calculate the reporting units’ estimated fair values as the average of the
values calculated under the income approach and the market approach. As of March 31, 2017, we had goodwill related to Airnorth.
We performed a qualitative analysis and concluded it is more likely than not that the fair value of Airnorth is not less than the
carrying value and, therefore, did not perform a quantitative analysis for Airnorth. Changes in assumptions used in the fair value
calculation could result in an estimated reporting unit fair value that is below the carrying value, which may give rise to an
impairment of goodwill.

We evaluate the estimated fair value of our reporting units compared to our market capitalization. The estimates used to
determine the fair value of the reporting units discussed above reflect management’s best estimates. Changes in the assumption
used in the fair value calculation could result in an estimated reporting unit fair value that is below the carrying value, which may
give rise to an impairment of goodwill.

Recent Accounting Pronouncements

See Note 1 in the “Notes to Consolidated Financial Statements” included elsewhere in this Annual Report for discussion of

recent accounting pronouncements.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We are subject to certain market risks arising from the use of financial instruments in the ordinary course of business. This
risk arises primarily as a result of potential changes in the fair market value of financial instruments that would result from adverse
fluctuations in foreign currency exchange rates, credit risk and interest rates as discussed below. The sensitivity analyses presented
do not consider the effects that such adverse changes may have on overall economic activity, nor do they consider additional
actions we may take to mitigate our exposure to such changes. Actual results may differ. See the notes to our consolidated financial
statements included in Item 8 of this Annual Report for a description of our accounting policies and other information related to
these financial instruments.

Foreign Currency Risk

Through our foreign operations, we are exposed to currency fluctuations and exchange rate risks. The majority of our revenue
and expense from our North Sea operations are in British pound sterling. Approximately 34% of our gross revenue for fiscal year
2017 was translated for financial reporting purposes from British pound sterling into U.S. dollars. In addition, some of our contracts
to provide services internationally provide for payment in foreign currencies. Our foreign exchange rate risk is even greater when
our revenue is denominated in a currency different from the associated costs. We attempt to minimize our foreign exchange rate
exposure by contracting the majority of our services other than our North Sea operations in U.S. dollars. During fiscal years 2017,
2016 and 2015, we did not enter into hedging transactions to protect against foreign exchange risks related to our revenue.

Throughout fiscal years 2017, 2016 and 2015, our primary foreign currency exposure has been to the British pound sterling,
the euro, the Australian dollar, the Norwegian kroner, and the Nigerian naira. The value of these currencies has fluctuated relative
to the U.S. dollar as indicated in the following table:

One British pound sterling into U.S. dollars

High..............................................................................................................
Average.........................................................................................................
Low...............................................................................................................
At period-end................................................................................................

One euro into U.S. dollars

One Australian dollar into U.S. dollars

One Norwegian kroner into U.S. dollars

Fiscal Years Ended March 31,

2017

2016

2015

1.48
1.31
1.21
1.25

1.15
1.10
1.04
1.07

0.78
0.75
0.72
0.76

1.59
1.51
1.39
1.44

1.16
1.10
1.06
1.14

0.81
0.74
0.68
0.77

1.72
1.60
1.47
1.48

1.39
1.25
1.05
1.07

0.95
0.87
0.76
0.76

High.............................................................................................................. 0.1253
Average......................................................................................................... 0.1198
Low............................................................................................................... 0.1145
At period-end................................................................................................ 0.1164

One Nigerian naira into U.S. dollars

High.............................................................................................................. 0.0050
Average......................................................................................................... 0.0036
Low............................................................................................................... 0.0029
At period-end................................................................................................ 0.0033

0.1367
0.1210
0.1114
0.1209

0.0050
0.0050
0.0050
0.0050

0.1698
0.1507
0.1203
0.1251

0.0063
0.0059
0.0049
0.0051

_______________

Source: FactSet and Oanda.com

Our earnings from unconsolidated affiliates, net of losses, are also affected by the impact of changes in foreign currency
exchange rates on the reported results of our unconsolidated affiliates. Earnings from unconsolidated affiliates, net of losses,
decreased by $3.2 million, $22.4 million and $25.7 million during fiscal years 2017, 2016 and 2015, respectively, as a result of
the impact of changes in foreign currency exchange rates on the earnings of our unconsolidated affiliates, primarily the impact of
changes in the Brazilian real to U.S. dollar exchange rate on earnings for our affiliate in Brazil. The value of the Brazilian real has
fluctuated relative to the U.S. dollar as indicated in the following table:

One Brazilian real into U.S. dollars

High.............................................................................................................. 0.3267
Average......................................................................................................... 0.3036
Low............................................................................................................... 0.2702
At period-end................................................................................................ 0.3150

0.3437
0.2816
0.2378
0.2822

0.4572
0.4096
0.3052
0.3080

Fiscal Years Ended March 31,

2017

2016

2015

_______________

Source: FactSet and Oanda.com

A hypothetical 10% change in the average U.S. dollar exchange rate relative to other currencies would have affected our

revenue, operating expense and operating income for fiscal year 2017 as follows:

Revenue.........................................................................
Operating expense.........................................................
Operating income ..........................................................

British
pound
sterling

3.4 %
2.4 %
(13.7)%

Euro

0.1%
0.2%
0.9%

Australian
dollar

Norwegian
kroner

Nigerian
Naira

1.2%
1.2%
0.7%

0.8 %
0.7 %
(1.1)%

0.1%
0.3%
3.5%

The effect of the hypothetical change in exchange rates ignores the effect this movement may have on other variables,
including competitive risk. If it were possible to quantify the impact of competitive risk, the results could be different from the
sensitivity effects shown above. In addition, all currencies may not uniformly strengthen or weaken relative to the U.S. dollar. In
reality, some currencies may weaken while others may strengthen.

In the past three fiscal years, our stockholders’ investment has decreased by $124.0 million as a result of translation
adjustments. Changes in exchange rates could cause significant changes in our financial position and results of operations in the
future.

As a result of the changes in exchange rates, we recorded foreign currency transaction losses of $2.9 million, $4.3 million

and $6.5 million during fiscal years 2017, 2016, and 2015, respectively.

We estimate that the fluctuation of these currencies for fiscal year 2017 versus the prior fiscal year had the following effect

on our financial condition and results of operations (in thousands):

Revenue ............................................................................................... $
Operating expense ...............................................................................
Earnings from unconsolidated affiliates, net of losses ........................
Non-operating expense........................................................................
Income before provision for income taxes ..........................................
Provision from income taxes ...............................................................
Net income...........................................................................................
Cumulative translation adjustment ......................................................
Total stockholders’ investment............................................................ $

(80,251)
71,994
19,254
1,392
12,389
(5,043)
7,346
(26,947)
(19,601)

A hypothetical 10% decrease in the value of the foreign currencies in which our business is denominated relative to the U.S.
dollar as of March 31, 2017 would result in a $39.2 million decrease in the fair value of our net monetary liabilities denominated
in currencies other than U.S. dollars.

Credit Risk

The market for our services and products is primarily the offshore oil and gas industry, and our clients consist primarily of
major integrated, national and independent oil and gas producers. We perform ongoing credit evaluations of our clients and have
not historically required collateral. We maintain allowances for potential credit losses.

Cash equivalents, which consist of funds invested in highly-liquid debt instruments with original maturities of 90 days or
less, are held by major banks or investment firms, and we believe that credit risk in these instruments is minimal. We also manage
our credit risk by not entering into complex financial transactions or those with a perceived high level of credit risk.

For more information on the impact of the global market conditions see Item 7. “Management’s Discussion and Analysis
of Financial Condition and Results of Operations — Executive Overview — Market Outlook” and Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Financial
Condition and Sources of Liquidity” included elsewhere in this Annual Report.

Interest Rate Risk

As of March 31, 2017, we had $1.3 billion of debt outstanding, of which $875.5 million carried a variable rate of interest.
The market value of our fixed rate debt fluctuates with changes in interest rates. The fair value of our debt has been estimated in
accordance with the accounting standard regarding fair value. The fair value of our fixed rate long-term debt is estimated based
on quoted market prices. The carrying and fair value of our long-term debt, including the current portion and excluding unamortized
debt issuance costs, are as follows (in thousands):

March 31,

2017

2016

Carrying
Value

6 ¼% Senior Notes .......................................................... $ 401,535
261,907
Term Loan........................................................................
45,900
Term Loan Credit Facility................................................
139,100
Revolving Credit Facility.................................................
196,832
Lombard Debt ..................................................................
200,000
Macquarie Debt................................................................
16,471
Airnorth Debt ...................................................................
15,326
Eastern Airways Debt ......................................................
16,293
Other debt.........................................................................
$1,293,364

Fair Value
$ 323,236
261,907
45,900
139,100
196,832
200,000
16,471
15,326
16,293
$1,215,065

Carrying
Value
$ 401,535
335,665
200,000
144,000
—
—
19,652
15,643
24,394
$1,140,889

Fair Value
$ 277,059
335,665
200,000
144,000
—
—
19,652
15,643
24,394
$1,016,413

If prevailing market interest rates had been 1% higher as of March 31, 2017, and all other factors affecting our debt remained
the same, the fair value of the 6 ¼% Senior Notes would have decreased by $13.9 million or 4.3%, respectively. Under comparable
sensitivity analysis as of March 31, 2016, the fair value of the 6 ¼% Senior Notes would have decreased by $13.1 million or 4.7%,
respectively.

Item 8. Consolidated Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
Bristow Group Inc.:

We have audited the accompanying consolidated balance sheets of Bristow Group Inc. and subsidiaries as of March 31, 2017 and
2016, and the related consolidated statements of operations, comprehensive loss, cash flows, and stockholders’ investment and
redeemable noncontrolling interests for each of the years in the three-year period ended March 31, 2017. These consolidated
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of Bristow Group Inc. and subsidiaries as of March 31, 2017 and 2016, and the results of their operations and their cash flows for
each of the years in the three-year period ended March 31, 2017, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
Bristow Group Inc.’s internal control over financial reporting as of March 31, 2017, based on criteria established in Internal Control
— Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO),
and our report dated May 23, 2017 expressed an unqualified opinion on the effectiveness of the Company’s internal control over
financial reporting.

/s/ KPMG LLP

Houston, Texas
May 23, 2017

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands, except per share amounts)

Gross revenue:

Operating revenue from non-affiliates...................................................................... $ 1,276,374
71,476
Operating revenue from affiliates.............................................................................
52,652
Reimbursable revenue from non-affiliates ...............................................................
1,400,502

$ 1,550,638
78,909
85,966
1,715,513

$ 1,639,263
87,724
131,682
1,858,669

Operating expense:

Direct cost.................................................................................................................
Reimbursable expense ..............................................................................................
Depreciation and amortization..................................................................................
General and administrative .......................................................................................

1,103,984
50,313
118,748
195,367
1,468,412

1,227,541
81,824
136,812
224,645
1,670,822

1,174,991
124,566
114,293
254,158
1,668,008

Loss on impairment.....................................................................................................
Loss on disposal of assets ...........................................................................................
Earnings from unconsolidated affiliates, net of losses................................................

(16,278)
(14,499)
6,945

(55,104)
(30,693)
261

(7,167)
(35,849)
(1,771)

Operating income (loss) ..............................................................................................

(91,742)

(40,845)

145,874

Interest expense, net ....................................................................................................
Other income (expense), net .......................................................................................
Income (loss) before provision for income taxes .....................................................
Benefit (provision) for income taxes ..........................................................................
Net income (loss)......................................................................................................
Net (income) loss attributable to noncontrolling interests........................................
Net income (loss) attributable to Bristow Group......................................................
Accretion of redeemable noncontrolling interests....................................................
Net income (loss) attributable to common stockholders .......................................... $ (170,536) $

(49,919)
(2,641)
(144,302)
(32,588)
(176,890)
6,354
(170,536)
—

(34,128)
(4,258)
(79,231)
2,082
(77,149)
4,707
(72,442)
(1,498)
(73,940) $

(29,354)
(5,047)
111,473
(22,766)
88,707
(4,407)
84,300
—
84,300

Earnings (loss) per common share:

Basic ......................................................................................................................... $
Diluted ...................................................................................................................... $

(4.87) $
(4.87) $

(2.12) $
(2.12) $

Cash dividends declared per common share ............................................................... $

0.28

1.09

2.40
2.37

1.28

The accompanying notes are an integral part of these consolidated financial statements.

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Net income (loss) ................................................................................................................... $(176,890) $ (77,149) $ 88,707
Other comprehensive loss:

Currency translation adjustments......................................................................................
Pension liability adjustment, net of tax provision of $4.0 million, $4.4 million and

$10.6 million, respectively ............................................................................................
Total comprehensive loss.......................................................................................................

(21,636)

(21,604)

(71,617)

(11,511)
(210,037)

705
(98,048)

(36,978)
(19,888)

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands)

Net (income) loss attributable to noncontrolling interests ................................................
Currency translation adjustments attributable to noncontrolling interests........................
Total comprehensive (income) loss attributable to noncontrolling interests ....................
Total comprehensive loss attributable to Bristow Group.......................................................
Accretion of redeemable noncontrolling interests ............................................................

(4,407)
(5,228)
(9,635)
(29,523)
—
Total comprehensive loss attributable to common stockholders ........................................... $(208,994) $ (93,430) $ (29,523)

6,354
(5,311)
1,043
(208,994)
—

4,707
1,409
6,116
(91,932)
(1,498)

The accompanying notes are an integral part of these consolidated financial statements.

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31,

2017

2016

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents................................................................................................................ $
Accounts receivable from non-affiliates ..........................................................................................
Accounts receivable from affiliates..................................................................................................
Inventories ........................................................................................................................................
Assets held for sale...........................................................................................................................
Prepaid expenses and other current assets........................................................................................
Total current assets.........................................................................................................................
Investment in unconsolidated affiliates ..............................................................................................
Property and equipment – at cost:

96,656
198,129
8,786
124,911
38,246
41,143
507,871
210,162

104,310
243,425
5,892
142,503
43,783
53,183
593,096
194,952

Less – Accumulated depreciation and amortization.........................................................................

Land and buildings ...........................................................................................................................
Aircraft and equipment.....................................................................................................................

231,448
2,622,701
2,854,149
(599,785)
2,254,364
19,798
Goodwill .............................................................................................................................................
121,652
Other assets.........................................................................................................................................
Total assets.......................................................................................................................................... $ 3,113,847

253,098
2,570,577
2,823,675
(540,423)
2,283,252
29,990
161,655
$ 3,262,945

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ INVESTMENT

Current liabilities:

Accounts payable ............................................................................................................................. $
Accrued wages, benefits and related taxes.......................................................................................
Income taxes payable .......................................................................................................................
Other accrued taxes ..........................................................................................................................
Deferred revenue ..............................................................................................................................
Accrued maintenance and repairs ....................................................................................................
Accrued interest................................................................................................................................
Other accrued liabilities ...................................................................................................................
Deferred taxes ..................................................................................................................................
Short-term borrowings and current maturities of long-term debt ....................................................
Contingent consideration..................................................................................................................
Total current liabilities...................................................................................................................
Long-term debt, less current maturities ..............................................................................................
Accrued pension liabilities .................................................................................................................
Other liabilities and deferred credits...................................................................................................
Deferred taxes.....................................................................................................................................
Commitments and contingencies (Note 7)
Redeemable noncontrolling interest ...................................................................................................
Stockholders’ investment:

98,215
59,077
15,145
9,611
19,911
22,914
12,909
46,679
830
131,063
—
416,354
1,150,956
61,647
28,899
154,873

96,966
59,431
27,400
7,995
24,206
22,196
11,985
48,392
1,881
60,394
29,522
390,368
1,071,578
70,107
33,273
172,254

6,886

15,473

Common stock, $.01 par value, authorized 90,000,000; outstanding: 35,213,991 and 34,976,743
379
shares (exclusive of 1,291,441 treasury shares)..........................................................................
809,995
Additional paid-in capital.................................................................................................................
991,906
Retained earnings .............................................................................................................................
(328,277)
Accumulated other comprehensive loss ...........................................................................................
(184,796)
Treasury shares, at cost (2,756,419 shares)......................................................................................
1,289,207
Total Bristow Group stockholders’ investment..................................................................................
5,025
Noncontrolling interests......................................................................................................................
Total stockholders’ investment...........................................................................................................
1,294,232
Total liabilities, redeemable noncontrolling interests and stockholders’ investment......................... $ 3,113,847

377
801,173
1,172,273
(289,819)
(184,796)
1,499,208
10,684
1,509,892
$ 3,262,945

The accompanying notes are an integral part of these consolidated financial statements.

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Fiscal Year Ended March 31,
2016

2015

2017

Cash flows from operating activities:

Net income (loss) ........................................................................................................ $ (176,890) $ (77,149) $

88,707

(In thousands)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization ....................................................................................
Deferred income taxes ................................................................................................
Write-off of deferred financing fees............................................................................
Discount amortization on long-term debt ...................................................................
Loss on disposal of assets ...........................................................................................
Gain on sale of unconsolidated affiliates ....................................................................
Loss on impairment.....................................................................................................
Extinguishment of debt ...............................................................................................
Stock-based compensation ..........................................................................................
Equity in earnings from unconsolidated affiliates less than (in excess of) dividends
received..................................................................................................................
Tax benefit related to stock-based compensation........................................................

Increase (decrease) in cash resulting from changes in:

Accounts receivable ....................................................................................................
Inventories...................................................................................................................
Prepaid expenses and other assets...............................................................................
Accounts payable ........................................................................................................
Accrued liabilities .......................................................................................................
Other liabilities and deferred credits ...........................................................................
Net cash provided by operating activities ..........................................................................
Cash flows from investing activities:

Capital expenditures....................................................................................................
Acquisitions, net of cash received...............................................................................
Proceeds from sale of unconsolidated affiliates..........................................................
Proceeds from asset dispositions.................................................................................
Investment in unconsolidated affiliate ........................................................................
Deposit received on aircraft held for sale ...................................................................
Net cash used in investing activities ..................................................................................
Cash flows from financing activities:

Proceeds from borrowings ..........................................................................................
Payment of contingent consideration ..........................................................................
Debt issuance costs .....................................................................................................
Repayment of debt and debt redemption premiums ...................................................
Partial prepayment of put/call obligation....................................................................
Acquisition of noncontrolling interests.......................................................................
Dividends paid to noncontrolling interest ...................................................................
Repurchase of common stock .....................................................................................
Common stock dividends paid ....................................................................................
Issuance of common stock ..........................................................................................
Tax benefit related to stock-based compensation........................................................
Net cash provided by (used in) financing activities ...........................................................
Effect of exchange rate changes on cash and cash equivalents..........................................
Net increase (decrease) in cash and cash equivalents ........................................................
Cash and cash equivalents at beginning of period .............................................................
Cash and cash equivalents at end of period........................................................................ $
Supplemental disclosure of non-cash investing activities:

Deferred sale leaseback advance................................................................................. $
Completion of deferred sale leaseback ....................................................................... $
Aircraft sold for future spare parts and maintenance .................................................. $
Aircraft purchased with short-term borrowings.......................................................... $

118,748
15,720
923
1,606
14,499
—
16,278
—
12,352

(4,438)
—

23,759
(1,958)
1,267
15,052
(19,713)
(6,503)
10,702

(135,110)
—
—
18,471
—
290
(116,349)

708,267
(10,000)
(8,010)
(570,328)
(49)
—
(2,533)
—
(9,831)
—
—
107,516
(9,523)
(7,654)
104,310
96,656

136,812
(51,643)
—
1,000
30,693
—
55,104
—
21,181

2,619
—

46,608
(3,380)
493
13,316
(34,035)
(25,593)
116,026

114,293
(7,457)
660
4,323
35,849
(3,921)
7,167
2,591
16,353

9,418
(1,550)

24,112
(21,478)
(25,485)
(4,665)
29,461
(15,152)
253,226

(372,375)
—
—
60,035
(4,410)
—
(316,750)

(601,834)
(20,303)
4,185
414,859
—
—
(203,093)

928,802
(9,453)
(5,139)
(677,003)
(55)
(7,309)
(153)
—
(38,076)
—
—
191,614
9,274
164
104,146
$ 104,310

454,393
—
—
(460,274)
(59)
(3,170)
—
(80,831)
(45,078)
5,172
1,550
(128,297)
(22,031)
(100,195)
204,341
$ 104,146

18,285

— $
69,680
— $ (74,480) $ (183,688)
13,417
— $
—
— $

1,228
24,394

$
$

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ INVESTMENT AND REDEEMABLE NONCONTROLLING INTERESTS

BRISTOW GROUP INC. AND SUBSIDIARIES

(In thousands, except share amounts)

Total Bristow Group Stockholders’ Investment

Redeemable
Noncontrolling
Interests

Common
Stock

Common
Stock
(Shares)

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Treasury
Stock

Noncontrolling
Interests

Total
Stockholders’
Investment

March 31, 2014 ....................................................... $

22,283

373

35,708,469

762,813

$ 1,245,220

(156,506) $

Issuance of common stock ...................................

Correction of historical shares outstanding..........

Acquisition of noncontrolling interest .................

Distributions paid to noncontrolling interests......

Repurchases of common stock.............................

Common stock dividends ($1.28 per share) ........

Currency translation adjustments.........................

Net income ...........................................................

Other comprehensive loss ....................................

March 31, 2015 .......................................................

Issuance of common stock ...................................

Acquisition of noncontrolling interests................

Distributions paid to noncontrolling interests......

Dividends paid to noncontrolling interest............

Common stock dividends ($1.09 per share) ........

Currency translation adjustments.........................

Net loss.................................................................

Accretion of noncontrolling interests...................

Other comprehensive loss ....................................

March 31, 2016 .......................................................

Issuance of common stock ...................................

Distributions paid to noncontrolling interests......

Dividends paid to noncontrolling interest............

Common stock dividends ($0.28 per share) ........

Currency translation adjustments.........................

Net loss.................................................................

Other comprehensive loss ....................................

—

3,427

—

(2,837)

3,350

—

26,223

—

(5,467)

—

(1,070)

(5,711)

1,498

—

15,473

—

(1,739)

(6,848)

—

290,754

—

(1,160,940)

—

376

34,838,374

—

138,369

—

377

34,976,743

—

237,248

—

22,194

—

(3,170)

—

781,837

18,784

552

—

801,173

8,822

—

(45,078)

—

84,300

—

1,284,442

—

(153)

(38,076)

—

(72,442)

(1,498)

—

1,172,273

—

(9,831)

—

(170,536)

—

(113,823)

(270,329)

—

(19,490)

(289,819)

—

(38,458)

March 31, 2017 ....................................................... $

6,886

379

35,213,991

809,995

991,906

(328,277) $

(103,965) $
—

—

—
(80,831)
—

—

—
(184,796)
—

—

—
(184,796)
—

—

—
(184,796) $

8,651

—

—
(59)
—

—
(2,392)
1,056

—

7,256

—

—
(55)
—

—

2,479

1,004

—

10,684

—
(49)
(2,533)
—
(3,572)
495

—

5,025

1,756,586

22,197

—
(3,170)
(59)
(80,831)
(45,078)
(2,392)
85,356
(113,823)
1,618,786

18,785

552
(55)
(153)
(38,076)
2,479
(71,438)
(1,498)
(19,490)
1,509,892

8,824
(49)
(2,533)
(9,831)
(3,572)
(170,041)
(38,458)
1,294,232

The accompanying notes are an integral part of these consolidated financial statements.

BRISTOW GROUP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Operations

Bristow Group Inc., a Delaware corporation (together with its consolidated entities, unless the context requires otherwise,
“Bristow Group”, the “Company”, “we”, “us”, or “our”), is the leading provider of industrial aviation services to the worldwide
offshore energy industry based on the number of aircraft operated. With a fleet of 459 aircraft as of March 31, 2017, including 111
held by unconsolidated affiliates, we and our affiliates conduct major transportation operations in the North Sea, Nigeria and the
U.S. Gulf of Mexico, and in most of the other major offshore energy producing regions of the world, including Australia, Brazil,
Canada, Russia and Trinidad. We and our affiliates also provide private sector search and rescue (“SAR”) services in Australia,
Canada, Nigeria, Norway, Russia, Trinidad and the United States, and public sector SAR services in the U.K. on behalf of the
Maritime & Coastguard Agency. Certain of our affiliates also provide regional fixed wing scheduled and charter services in the
U.K., Nigeria and Australia, helicopter military training and helicopter flight training.

Basis of Presentation

The consolidated financial statements include the accounts of Bristow Group Inc. and its consolidated entities after elimination
of all significant intercompany accounts and transactions. Investments in affiliates in which we have a majority voting interest and
entities that meet the criteria of Variable Interest Entities (“VIEs”) of which we are the primary beneficiary are consolidated. See
discussion of VIEs in Note 3. We apply the equity method of accounting for investments in entities if we have the ability to exercise
significant influence over an entity that (a) does not meet the variable interest entity criteria or (b) meets the variable interest entity
criteria, but for which we are not deemed to be the primary beneficiary. We apply the cost method of accounting for investments
in other entities if we do not have the ability to exercise significant influence over the unconsolidated affiliate. These investments
in private companies are carried at cost and are adjusted only for capital distributions and other-than-temporary declines in value.
Dividends from cost method investments are recognized in earnings from unconsolidated affiliates, net of losses, when paid.

Our fiscal year ends March 31, and we refer to fiscal years based on the end of such period. Therefore, the fiscal year ended

March 31, 2017 is referred to as fiscal year 2017.

Certain reclassifications of prior period information have been made to conform to the presentation of the current period
information as a result of an adoption of a required accounting standard. In the prior period financial statements, we had included
unamortized debt issuance costs in other assets. Current period presentation has reclassified certain of these unamortized debt
issuance costs as direct deductions of our debt balances on our consolidated balance sheets. These reclassifications had no effect
on net income (loss) or cash flows provided by operating activities as previously reported.

Summary of Significant Accounting Policies

Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during
the reporting period. Actual results could differ from those estimates. Areas where accounting estimates are made by management
include:

• Allowances for doubtful accounts;

•

Inventory allowances;

Property and equipment;

• Goodwill, intangible and other long-lived assets;

•

Pension benefits;

• Contingent liabilities; and

• Taxes.

Cash and Cash Equivalents — Our cash equivalents include funds invested in highly-liquid debt instruments with original

maturities of 90 days or less.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Accounts Receivable — Trade and other receivables are stated at net realizable value. We grant short-term credit to our
clients, primarily major integrated, national and independent oil and gas companies. We establish allowances for doubtful accounts
on a case-by-case basis when a determination is made that the required payment is unlikely to occur. In establishing these allowances,
we consider a number of factors, including our historical experience, change in our clients’ financial position and restrictions
placed on the conversion of local currency into U.S. dollars, as well as disputes with clients regarding the application of contract
provisions to our services.

The following table is a rollforward of the allowance for doubtful accounts from non-affiliates (in thousands):

Balance – beginning of fiscal year............................................................. $
Additional allowances................................................................................
Write-offs and collections..........................................................................
Balance – end of fiscal year ....................................................................... $

Fiscal Year Ended March 31,

2017
5,562
575
(1,639)
4,498

2016

859
6,638
(1,935)
5,562

2015
5,074
1,050
(5,265)
859

During fiscal year 2016, the allowance for doubtful accounts for non-affiliates was increased primarily for amounts due from

two clients in Nigeria and one client in Australia for which we no longer believed collection was probable.

During fiscal year 2015, an allowance previously recorded for a client that filed for bankruptcy was reversed as we settled
outstanding matters related to ongoing bankruptcy proceedings, which resulted in a $4.4 million reduction in bad debt expense,
included within direct cost on our consolidated statements of operations. The remaining amount of $0.5 million related to this
client was written off as no further settlement is expected.

As of March 31, 2017 and 2016, there were no allowances for doubtful accounts related to accounts receivable due from

affiliates.

Inventories — Inventories are stated at the lower of average cost or net realizable value and consist primarily of spare parts.

The following table is a rollforward of the allowance related to dormant, obsolete and excess inventory (in thousands):

Balance – beginning of fiscal year............................................................. $ 27,763
7,572
Impairment of inventories..........................................................................
1,617
Additional allowances................................................................................
(14,635)
Inventory disposed and scrapped ...............................................................
(803)
Foreign currency effects ............................................................................
Balance – end of fiscal year ....................................................................... $ 21,514

2017

2016
$ 45,414
5,439
192
(22,428)
(854)
$ 27,763

2015
$ 47,298
7,167
4,867
(10,125)
(3,793)
$ 45,414

Fiscal Year Ended March 31,

During fiscal years 2017, 2016 and 2015, we increased our inventory allowance by $1.6 million, $0.2 million and $4.9
million, respectively, as a result of our periodic assessment of inventory that was dormant, obsolete or excess within our operational
fleet of aircraft.

During fiscal years 2017, 2016 and 2015, we recorded impairment charges of $7.6 million, $5.4 million and $7.2 million,
respectively, to write-down certain spare parts within inventories to market value. These impairment charges resulted from the
identification of $56.4 million, $19.4 million and $19.1 million, respectively, of inventory that was dormant, obsolete or excess
based on a review of our future inventory needs related to changes to our fleet strategy and plans. The impairment charges in fiscal
year 2017 were recorded primarily due to a change in estimate of consumption of inventory and the continued decline in the
secondary market for inventory resulting from our decision to cease operation of certain older model aircraft within our fleet in
fiscal year 2018. The impairment charges in fiscal years 2016 and 2015 related primarily to spare parts held for a large aircraft
model where we decided to accelerate removal from our fleet by the end of fiscal year 2016. As we had intended to operate these
model types longer in certain markets, we identified excess inventory that would not be used on our aircraft and therefore needed
to be sold or otherwise disposed of. These impairment charges are included in loss on impairment on the consolidated statements
of operations.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Prepaid Expenses and Other Current Assets — As of March 31, 2017 prepaid expenses and other current assets included
the short-term portion of contract acquisition and pre-operating costs totaling $9.7 million related to SAR contracts in the U.K.
and two client contracts in Norway. As of March 31, 2016, prepaid expenses and other current assets included the short-term
portion of contract acquisition and pre-operating costs totaling $12.1 million related to SAR contracts in the U.K. and Australia
and a client contract in Norway. These contract acquisition and pre-operating costs are recoverable under the contracts and will
be expensed over the terms of the contracts. During fiscal year 2017 and 2016, we expensed $16.9 million and $10.0 million,
respectively, due to the start-up of some of these contracts and cancellation of the contract in Australia.

Property and Equipment — Property and equipment are stated at cost. Property and equipment includes construction in
progress, primarily consisting of progress payments on aircraft purchases and facility construction, of $199.3 million and $307.4
million as of March 31, 2017 and 2016, respectively. Interest costs applicable to the construction of qualifying assets are capitalized
as a component of the cost of such assets.

Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets. The
estimated useful lives of aircraft generally range from 5 to 15 years, and the residual value used in calculating depreciation of
aircraft generally ranges from 30% to 50% of cost. The estimated useful lives for buildings on owned properties range from 15 to
30 years. Other depreciable assets are depreciated over estimated useful lives ranging from 3 to 15 years, except for leasehold
improvements which are depreciated over the lesser of the useful life of the improvement or the lease term (including any period
where we have options to renew if it is probable that we will renew the lease). The cost and related accumulated depreciation of
assets sold or otherwise disposed of are removed from the accounts and the resulting gains or losses are included in gain (loss) on
disposal of assets.

We capitalize betterments and improvements to our aircraft and depreciate such costs over the remaining useful lives of the

aircraft. Betterments and improvements increase the life or utility of an aircraft.

For discussion of impairment of long-lived assets, including property and equipment, see Loss on Impairment below. For

further details on property and equipment, see Note 4.

Goodwill — Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets
acquired. Goodwill has an indefinite useful life and is not amortized, but is assessed for impairment annually or when events or
changes in circumstances indicate that a potential impairment exists.

Goodwill of $19.8 million and $30.0 million as of March 31, 2017 and 2016, respectively, related to our reporting units were

as follows (in thousands):

Europe
Caspian
March 31, 2015...................................................................................... $ 35,701
(170)
(328)
(25,177)
10,026
(1,320)
(8,706)

Purchase price adjustments to previously acquired goodwill (1).......
Foreign currency translation .............................................................
Impairments ......................................................................................
March 31, 2016......................................................................................
Foreign currency translation .............................................................
Impairments ......................................................................................
March 31, 2017...................................................................................... $
_____________

Asia
Pacific
$ 23,791
(3,991)
164
—
19,964
(166)
—
— $ 19,798

Corporate
and other
$ 10,190

Africa
$ 5,946
—
233
(6,179)
—
—
—
— $

Total
$ 75,628
— (4,161)
102
33
(41,579)
(10,223)
— 29,990
— (1,486)
— (8,706)
— $ 19,798

(1) Relates to the correction of an immaterial error related to the acquisitions of Airnorth and Eastern. We determined that the accounting
treatment for the supplemental rent for leased aircraft at Airnorth and Eastern was incorrectly being expensed in advance of a maintenance
event occurring. To correct this error, we reduced goodwill by $4.2 million, increased prepaid expenses and other current assets by
$2.7 million, increased deferred tax liabilities by $3.1 million, decreased accrued maintenance and repairs by $3.6 million and increased
direct costs $1.0 million. This error is not material to our consolidated financial statements for fiscal year 2016 or our previously
reported consolidated financial statements for any period.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Accumulated goodwill impairment of $50.9 million and $42.2 million as of March 31, 2017 and 2016, respectively,

related to our reporting units were as follows (in thousands):

Europe
Caspian

Africa

Corporate
and other

Americas

Total

March 31, 2015 ............................................................ $
Impairments.............................................................
March 31, 2016 ............................................................
Impairments.............................................................
March 31, 2017 ............................................................ $

— $

(25,177)
(25,177)
(8,706)
(33,883) $

— $

(6,179)
(6,179)
—
(6,179) $

— $

(10,223)
(10,223)
—
(10,223) $

(576) $
—
(576)
—
(576) $

(576)
(41,579)
(42,155)
(8,706)
(50,861)

For further discussion of impairment of goodwill, see Loss on Impairment below.

Other Intangible Assets — Intangible assets with finite useful lives are amortized over their respective estimated useful lives

to their estimated residual values. Intangible assets by type were as follows (in thousands):

Client
contracts

Client
relationships

Trade name
and
trademarks

Internally
developed
software

Gross Carrying Amount

Licenses

Total

March 31, 2015 ....................................... $
Foreign currency translation...............
March 31, 2016 .......................................
Foreign currency translation...............
March 31, 2017 ....................................... $

8,165
5
8,170
(1)
8,169

13,056
(277)
12,779
(27)
12,752

5,148
(140)
5,008
(525)
4,483

1,179
(30)
1,149
(87)
1,062

758
(6)
752
(6)
746

28,306
(448)
27,858
(646)
27,212

March 31, 2015 ....................................... $
Impairments........................................
Amortization expense.........................
March 31, 2016 .......................................
Amortization expense.........................
March 31, 2017 ....................................... $

(7,399) $
—
(663)
(8,062)
(93)
(8,155) $

(1,583) $
(8,086)
(931)
(10,600)
(471)
(11,071) $

(323) $
—
(313)
(636)
(272)
(908) $

(244) $
—
(236)
(480)
(205)
(685) $

(542) $
—
(59)
(601)
(56)
(657) $

(10,091)
(8,086)
(2,202)
(20,379)
(1,097)
(21,476)

Accumulated Amortization

Weighted average remaining contractual
life, in years .......................................

0.2

4.6

13.1

1.8

1.6

5.8

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

2018...................................................................... $
2019......................................................................
2020......................................................................
2021......................................................................
2022......................................................................
Thereafter .............................................................

837
715
442
442
442
2,858
5,736

The Bristow Norway and Eastern Airways acquisitions, completed in October 2008 and February 2014, respectively, included
in our Europe Caspian region, resulted in intangible assets for client contracts, client relationships, trade names and trademarks,
internally developed software and licenses. The Airnorth acquisition completed in January 2015, included in our Asia Pacific
region, resulted in intangible assets for client contracts, client relationships and trade name and trademarks. During fiscal year
2017, we tested the remaining intangible assets for Eastern Airways for trade name and trademarks and internally developed
software. We determined that the fair value was above carrying value and therefore no impairment was required. For further details
on the Airnorth acquisition, see Note 2. For discussion of impairment of long-lived assets, including purchased intangibles subject
to amortization, see Loss on Impairment below.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Other Assets — In addition to the intangible assets discussed above, other assets primarily include deferred tax assets of
$34.8 million as of March 31, 2017 and the long-term portion of contract acquisition and pre-operating costs totaling $51.1 million
as of March 31, 2017 related to SAR contracts in the U.K. and two client contracts in Norway, which are recoverable under the
contracts and will be expensed over the life of the contracts. As of March 31, 2016, other assets primarily include deferred tax
assets of $68.0 million and the long-term portion of contract acquisition and pre-operating costs totaling $55.1 million related to
SAR contracts in the U.K. and a client contract in Norway, which are recoverable under the contracts and will be expensed over
the life of the contracts.

Contingent Liabilities — We establish reserves for estimated loss contingencies when we believe a loss is probable and the
amount of the loss can be reasonably estimated. Our contingent liability reserves relate primarily to potential tax assessments,
litigation, personal injury claims and environmental liabilities. Results for each reporting period include revisions to contingent
liability reserves resulting from different facts or information which become known or circumstances which change and affect our
previous assumptions with respect to the likelihood or amount of loss. Such revisions are based on information which becomes
known or circumstances that change after the reporting date for the previous period through the reporting date of the current period.
Reserves for contingent liabilities are based upon our assumptions and estimates regarding the probable outcome of the matter.
Should the outcome differ from our assumptions and estimates or other events result in a material adjustment to the accrued
estimated reserves, revisions to the estimated reserves for contingent liabilities would be required to be recognized. Legal costs
are expensed as incurred.

Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in gain (loss)
on disposal of assets when we have received proof of loss documentation or are otherwise assured of collection of these amounts.

Some of our acquisitions include a provision that provides for additional consideration to be paid to the sellers of the acquired
company based on the achievement of specified performance thresholds. In such cases, we record the obligations to pay those
amounts at fair value at the acquisition date and include such obligations in the consideration transferred. This contingent
consideration obligation is included in contingent consideration for the current portion and other liabilities and deferred credits
for the long-term portion on our consolidated balance sheets. We assess the estimated fair value of the contractual obligation to
pay the contingent consideration on a quarterly basis and any changes in estimated fair value are recorded as accretion expense
included in depreciation and amortization on our consolidated statements of operations. In other cases, additional consideration
is based on the achievement of performance thresholds and continued employment with the Company. In these cases, we record
such amounts in general and administrative expense when such additional consideration is earned. See Note 2 for a discussion on
our acquisitions, Note 3 for a discussion on contingent consideration obligations related to our investments in unconsolidated
affiliates and Note 6 for details on the fair value of the contingent consideration obligation.

Loss on Impairment

Loss on impairment includes goodwill impairment charges of $8.7 million and $41.6 million for fiscal years 2017 and 2016,
respectively, and intangible asset impairment charges of $8.1 million for fiscal year 2016, and inventory impairment charges of
$7.6 million, $5.4 million and $7.2 million for fiscal years 2017, 2016 and 2015, respectively. For details on our analysis of
impairment of goodwill, other long-lived assets and investments in unconsolidated affiliates, see discussion below. For further
details on inventory impairments, see Inventories discussed above.

Goodwill — As discussed above, we test goodwill for impairment on an annual basis or when events or changes in
circumstances indicate that a potential impairment exists. For the purposes of performing an analysis of goodwill, we evaluate
whether there are reporting units below the reporting segment we disclose for segment reporting purposes by assessing whether
our regional management typically reviews results and whether discrete financial information exists at a lower level.

We performed the interim impairment test of goodwill for Eastern Airways as of December 31, 2016, noting that the estimated
fair value of Eastern Airways was below its carrying value, resulting in an impairment of all of the remaining goodwill related to
Eastern Airways and a loss of $8.7 million reflected in loss on impairment in our statement of operations for the three and nine
months ended December 31, 2016. The only remaining goodwill recorded as of March 31, 2017 relates to Airnorth within our Asia
Pacific region. We did not have any triggering events to test Airnorth for impairment during fiscal year 2017.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

During the three months ended September 30, 2015, we noted rapid and significant declines in the market value of our
Common Stock and an overall reduction in expected operating results which resulted from the downturn in the oil and gas industry
due to reduced crude oil prices. The impact on our results was reflected in an increase in the number of idle aircraft and reduction
in forecasted results across our global oil and gas helicopter operations, and was reflected in reduced operating revenue for our
business for the three months ended September 30, 2015, when excluding growth from the U.K. SAR contract and the addition
of Airnorth. The reduction in demand for aircraft in the offshore energy market led to further impairment of older model aircraft.
Based on these factors, we concluded that the fair value of our goodwill could have fallen below its carrying value and that an
interim period analysis of goodwill was required.

We performed our analysis of goodwill for the following reporting units as of September 30, 2015, with goodwill as reflected

below prior to any impairment recorded:

• Bristow Norway, within our Europe Caspian region, which included $12.1 million of goodwill;

• Eastern Airways, within our Europe Caspian region, which included $24.6 million of goodwill;

• Airnorth, within our Asia Pacific region, which included $21.9 million of goodwill.

• Our Africa region, which included $5.9 million of goodwill; and

• Bristow Academy, within Corporate and other, which included $10.2 million of goodwill.

We performed the interim impairment test of goodwill across the reporting units discussed above, noting that the estimated
fair values of the Africa region, Eastern Airways and Airnorth exceeded the carrying values. The estimated fair values of Bristow
Academy and Bristow Norway were below their carrying values, resulting in an impairment of all of the goodwill for those reporting
units of $22.3 million reflected in loss on impairment in our statement of operations for the three months ended September 30,
2015. We updated the impairment analysis as of March 31, 2016 for the Africa region, Eastern Airways and Airnorth. The estimated
fair value of Airnorth exceeded the carrying value. The estimated fair value of the Africa region and Eastern Airways was below
the carrying value, resulting in an impairment of all of the goodwill for Africa of $6.2 million and a portion of the goodwill for
Eastern Airways of $13.1 million reflected in our loss on impairment in our statement of operations for the three months ended
March 31, 2016.

We estimated the implied fair value of the reporting units using a variety of valuation methods, including the income and
market approaches. The determination of estimated fair value required us to use significant unobservable inputs, representative
of a Level 3 fair value measurement, including assumptions related to the future performance of the reporting units, such as
projected demand for our services and rates.

The income approach was based on a discounted cash flow model, which utilized present values of cash flows to estimate
fair value. The future cash flows were projected based on our estimates of future rates for our services, utilization, operating costs,
capital requirements, growth rates and terminal values. Forecasted rates and utilization take into account current market conditions
and our anticipated business outlook, both of which have been impacted by the adverse changes in the offshore energy business
environment from the current downturn. Operating costs were forecasted using a combination of our historical average operating
costs and expected future costs, including ongoing cost reduction initiatives. Capital requirements in the discounted cash flow
model were based on management’s estimates of future capital costs resulting from expected market demand in future periods.
The estimated capital requirements included cash outflows for new aircraft, infrastructure and improvements. A terminal period
was used to reflect our estimate of stable, perpetual growth. The future cash flows were discounted using a market-participant
risk-adjusted weighted average cost of capital for each of the reporting units individually and in the aggregate. These assumptions
were derived from unobservable inputs and reflect management’s judgments and assumptions.

The market approach was based upon the application of price-to-earnings multiples to management’s estimates of future
earnings adjusted for a control premium. Management’s earnings estimates were derived from unobservable inputs that require
significant estimates, judgments and assumptions as described in the income approach.

For purposes of the goodwill impairment test, we calculated the reporting units’ estimated fair value as the average of the

values calculated under the income approach and the market approach.

During fiscal year 2016, we evaluated the estimated fair value of our reporting units compared to our market capitalization.
The aggregate fair values of our reporting units exceeded our market capitalization, and we believe the resulting implied control
premium was reasonable based on recent market transactions within our industry or other relevant benchmark data. During fiscal
year 2017, this calculation was not performed because the reporting unit with goodwill did not represent a significant portion of
our business.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The estimates used to determine the fair value of the reporting units discussed above reflect management’s best estimates,
and we believe they are reasonable. Future declines in the reporting units’ operating performance or our anticipated business
outlook may reduce the estimated fair value of these reporting units and result in additional impairments. Factors that could have
a negative impact on the fair value include, but are not limited to:

• decreases in estimated rates and utilization due to greater-than-expected market pressures, downtime and other risks

associated with offshore energy operations;

• sustained declines in our Common Stock price;

• decreases in revenue due to our inability to attract and retain skilled personnel;

• changes in worldwide offshore energy transportation supply and demand, competition or technology;

• changes in future levels of drilling activity and expenditures, whether as a result of global capital markets and liquidity,
prices of oil and natural gas or otherwise, which may cause our clients to further reduce offshore production and drilling
activities;

• possible cancellation or suspension of contracts as a result of mechanical difficulties, performance or other reasons;

•

inability to manage costs during the current downturn and in future periods;

increases in the market-participant risk-adjusted weighted average cost of capital; and

• declines in anticipated growth rates.

Adverse changes in one or more of these factors could result in additional goodwill impairments in future periods.

Property and Equipment, and Purchased Intangibles Subject to Amortization — Long-lived assets, such as property and
equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset group to
be held and used exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying
amount of the asset group exceeds the fair value of the asset group. Assets held for sale are classified as current assets on our
consolidated balance sheets and recorded at the lower of the carrying amount or fair value less costs to sell, and are no longer
depreciated. We recorded impairment charges of $12.5 million, $29.6 million and $36.1 million included in loss on disposal of
assets to reduce the carrying value of aircraft held for sale in fiscal years 2017, 2016 and 2015, respectively. Additionally, we
recorded impairment of our purchased intangibles for Eastern Airways of $8.1 million included in loss on impairment related to
our client relationships in fiscal year 2016.

Investments in Unconsolidated Affiliates — We perform regular reviews of each investee’s financial condition, the business
outlook for its products and services, and its present and projected results and cash flows. When an investee has experienced
consistent declines in financial performance or difficulties raising capital to continue operations, and when we expect the decline
to be other-than-temporary, the investment is written down to fair value. Actual results may vary from estimates due to the
uncertainty regarding the projected financial performance of investees, the severity and expected duration of declines in value,
and the available liquidity in the capital markets to support the continuing operations of the investees in which we have investments.
We did not recognize any impairment charges related to our investments in unconsolidated affiliates in fiscal years 2017, 2016
and 2015.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Deferred Sale Leaseback Advance — During fiscal year 2014, we received payment of approximately $106.1 million for
progress payments we had made on seven aircraft under construction, and we assigned any future payments due on these construction
agreements to the purchaser. As we had the obligation and intent to lease the aircraft back from the purchaser upon completion,
we recorded a liability equal to the cash received and additional payments made by the purchaser totaling $147.4 million, with a
corresponding increase to construction in progress. During fiscal year 2015, we took delivery and entered into leases for five of
the aircraft and removed a total of $183.7 million and $182.6 million from construction in progress and deferred sale leaseback
advance, respectively, on our consolidated balance sheet. During fiscal year 2016, we took delivery and entered into leases for the
remaining two aircraft and removed a total of $75.8 million and $74.3 million from construction in progress and deferred sale
leaseback advance, respectively, on our consolidated balance sheet. As of March 31, 2016, the construction in progress and deferred
sale leaseback advance liability related to these deferred sale leaseback transactions were removed from our consolidated balance
sheet.

Revenue Recognition — In general, we recognize revenue when it is both realized or realizable and earned. We consider
revenue to be realized or realizable and earned when the following conditions exist: there is persuasive evidence of an arrangement
(generally a client contract exists); the services or products have been performed or delivered to the client; the sales price is fixed
or determinable; and collection has occurred or is probable.

Revenue from helicopter services, including SAR services, is recognized based on contractual rates as the related services
are performed. The charges under these contracts are generally based on a two-tier rate structure consisting of a daily or monthly
fixed fee plus additional fees for each hour flown. These contracts are for varying periods and generally permit the client to cancel
the contract before the end of the term. We also provide services to clients on an “ad hoc” basis, which usually entails a shorter
contract notice period and duration. The charges for ad hoc services are based on an hourly rate or a daily or monthly fixed fee
plus additional fees for each hour flown. In order to offset potential increases in operating costs, our long-term contracts may
provide for periodic increases in the contractual rates charged for our services. We recognize the impact of these rate increases
when the criteria outlined above have been met. This generally includes written recognition from the clients that they are in
agreement with the amount of the rate escalation. Cost reimbursements from clients are recorded as reimbursable revenue with
the related reimbursed costs recorded as reimbursable expense on our consolidated statements of operations.

Eastern Airways and Airnorth primarily earn revenue through charter and scheduled airline services and provision of airport
services (Eastern Airways only). Both chartered and scheduled airline service revenue is recognized net of passenger taxes and
discounts. Revenue is recognized at the earlier of the period in which the service is provided or the period in which the right to
travel expires, which is determined by the terms and conditions of the ticket. Ticket sales are recorded within deferred revenue
in accordance with the above policy. Airport services revenue is recognized when earned.

Bristow Academy, our helicopter training unit, primarily earns revenue from military training, flight training provided to
individual students and ground school courses. We recognize revenue from these sources using the same revenue recognition
principles described above as services are provided. We consider revenue to be realized or realizable and earned when the following
conditions exist: there is persuasive evidence of an arrangement (generally a contract exists); the services have been performed
or delivered to the client or student; the sales price is fixed and determinable; and collection has occurred or is probable.

Pension Benefits — See Note 9 for a discussion of our accounting for pension benefits.

Maintenance and Repairs — We generally charge maintenance and repair costs, including major aircraft component overhaul
costs, to earnings as the costs are incurred. However, certain major aircraft components, such as engines and transmissions, are
maintained by third-party vendors under contractual agreements also referred to as power-by-the hour maintenance agreements.
Under these agreements, we are charged an agreed amount per hour of flying time related to maintenance, repair and overhaul of
the parts and components covered. The costs charged under these contractual agreements are recognized in the period in which
the flight hours occur. To the extent that we have not yet been billed for costs incurred under these arrangements, these costs are
included in accrued maintenance and repairs on our consolidated balance sheets. From time to time, we receive credits from our
original equipment manufacturers as settlement for additional labor and maintenance expense costs incurred for aircraft performance
issues. We record these credits as a reduction in maintenance expense when the credits are utilized in lieu of cash payments for
purchases or services. The cost of certain major overhauls on owned fixed-wing aircraft operated by Eastern Airways and Airnorth
are capitalized when incurred and depreciated over the period until the next expected major overhaul. The cost of major overhauls
on leased fixed-wing aircraft operated by Eastern Airways and Airnorth are charged to maintenance and repair costs when incurred.

Taxes — We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and
liabilities are determined based upon temporary differences between the carrying amount and tax basis of our assets and liabilities
and measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on
deferred income tax assets and liabilities of a change in the tax rates is recognized in income in the period in which the change
84

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

occurs. We record a valuation reserve when we believe that it is more likely than not that any deferred income tax asset created
will not be realized.

In assessing the realizability of deferred income tax assets, management considers whether it is more-likely-than-not that
some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is
dependent upon the generation of future taxable income during the periods in which such temporary differences become deductible.

We recognize tax benefits attributable to uncertain tax positions when it is more-likely-than-not that a tax position will be
sustained upon examination by the authorities. The benefit from a position that has surpassed the more-likely-than-not threshold
is the largest amount of benefit that is more than 50% likely to be realized upon settlement. We recognize interest and penalties
accrued related to unrecognized tax benefits as a component of benefit (provision) for income taxes in our statement of operations.

Foreign Currency — In preparing our financial statements, we must convert all non-U.S. dollar currencies to U.S. dollars.
Balance sheet information is presented based on the exchange rate as of the balance sheet date, and statement of operations
information is presented based on the average exchange rate for the period. The various components of stockholders’ investment
are presented at their historical average exchange rates. The resulting difference after applying the different exchange rates is the
currency translation adjustment, which is reported in stockholders’ investment as accumulated other comprehensive gains or losses.
Foreign currency transaction gains and losses are recorded in other income (expense), net in our statement of operations and result
from the effect of changes in exchange rates on transactions denominated in currencies other than a company’s functional currency,
including transactions between consolidated companies. An exception is made where an intercompany loan or advance is deemed
to be of a long-term investment nature, in which instance foreign currency transaction gains or losses are included as currency
translation adjustments and are reported in stockholders’ investment as accumulated other comprehensive gains or losses. Changes
in exchange rates could cause significant changes in our financial position and results of operations in the future.

As a result of changes in exchange rates, we recorded foreign currency transaction losses of approximately $2.9 million,
$4.3 million and $6.5 million during fiscal years 2017, 2016 and 2015, respectively. Our earnings from unconsolidated affiliates,
net of losses, are also affected by the impact of changes in foreign currency exchange rates on the reported results of our
unconsolidated affiliates. During fiscal years 2017, 2016 and 2015, earnings from unconsolidated affiliates, net of losses, decreased
by $3.2 million, $22.4 million and $25.7 million, respectively, as a result of the impact of changes in foreign currency exchange
rates on the earnings of our unconsolidated affiliates, primarily the impact of changes in the Brazilian real to U.S. dollar exchange
rate on earnings for our affiliate in Brazil. See further discussion of foreign exchange risks and controls under Item 7A. “Quantitative
and Qualitative Disclosures about Market Risk” included elsewhere in this Annual Report.

Incentive Compensation — See Note 9 for a discussion of our accounting for incentive compensation arrangements.

Interest Income (Expense), Net — During fiscal years 2017, 2016 and 2015 interest expense, net consisted of the following

(in thousands):

Fiscal Year Ended

2017

2016

2015

Interest income ............................................. $
Interest expense ...........................................

956
(30,310)
Interest expense, net ............................. $ (49,919) $ (34,128) $ (29,354)

1,058
(35,186)

943
(50,862)

Other Income (Expense), Net — The amounts for fiscal years 2017, 2016 and 2015 include the foreign currency transaction
gains and losses described under “Foreign Currency” above. Other income (expense), net in fiscal year 2015 also includes a pre-
tax gain on the sale of an unconsolidated affiliate of $3.9 million. Additionally, other income (expense), net for fiscal year 2015
includes $2.6 million related to premium paid for the repurchase of a portion of the 6¼% Senior Notes due 2022 (the “6¼% Senior
Notes”). See further discussion in Note 5. Other income (expense), net in fiscal years 2017 and 2016 did not include any other
significant items.

Accretion of Redeemable Noncontrolling Interests — Accretion of redeemable noncontrolling interests of $1.5 million for
fiscal year 2016 related to put arrangements whereby the noncontrolling interest holders may require us to redeem the remaining
shares of Airnorth (prior to repurchasing the remaining 15% of the outstanding shares in November 2015 discussed below) and
Eastern Airways at a formula-based amount that is not considered fair value (the “redemption amount”). No accretion of redeemable
noncontrolling interests was recorded in fiscal years 2017 and 2015. Redeemable noncontrolling interest is adjusted each period
for comprehensive income, dividends attributable to the noncontrolling interest and changes in ownership interest, if any, such
that the noncontrolling interest represents the proportionate share of Airnorth’s and Eastern Airways’ equity (the “carrying value”).
Additionally, at each period end we are required to compare the redemption amount to the carrying value of the redeemable

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

noncontrolling interest and record the redeemable noncontrolling interest at the higher of the two amounts, with a corresponding
charge or credit directly to retained earnings. While this charge or credit does not impact net income (loss), it does result in a
reduction or increase of income (loss) available to common shareholders in the calculation of diluted earnings (loss) per share (see
Note 10). In November 2015, we purchased the remaining 15% of the outstanding shares of Airnorth for A$7.3 million ($5.3
million) resulting in a reduction of $5.5 million to redeemable noncontrolling interests and an increase of $2.6 million to additional
paid-in capital on our consolidated balance sheet.

Recent Accounting Pronouncements

We consider the applicability and impact of all accounting standard updates (“ASUs”). ASUs not listed below were assessed
and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results
of operations.

In May 2014, the Financial Accounting Standards Board (the “FASB”) issued accounting guidance on revenue recognition
for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects
to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition
guidance when it becomes effective. This new standard is effective for annual reporting periods beginning after December 15,
2016. However, in July 2015, the FASB approved the deferral of the effective date of the revenue recognition standard permitting
public entities to apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Early application
is permitted, but not before the original effective date of December 15, 2016. The standard is required to be adopted using either
the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative
adjustment to retained earnings on the balance sheet. We have not adopted this standard yet but expect to adopt the new revenue
standard using the modified retrospective transition method. We are continuing to evaluate the effect this accounting guidance will
have on our related disclosures and are still assessing the differences between the new revenue standard and current accounting
practices.

In August 2014, the FASB issued accounting guidance on determining when and how to disclose going-concern uncertainties
in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability
to continue as a going concern within a year of the date the financial statements are issued. The standard applies to all entities and
is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We adopted this
accounting guidance effective March 31, 2017 and performed an annual assessment of our ability to continue as a going concern
within a year of the date these financial statements were issued.

In February 2015, the FASB issued accounting guidance which changes the analysis that a reporting entity must perform to
determine whether it should consolidate certain types of legal entities. The guidance amends the criteria for determining which
entities are considered VIEs and amends the criteria for determining if a service provider possesses a variable interest in a VIE.
This accounting guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2015. A reporting
entity may apply the amendments using a modified retrospective approach or a full retrospective application. We adopted this
accounting guidance effective April 1, 2016 and there is no material effect on our consolidated financial statements and related
disclosures.

In April 2015, the FASB issued accounting guidance relating to the presentation of debt issuance costs. The intent is to
simplify the presentation of debt issuance costs by requiring entities to record debt issuance costs on the balance sheet as a direct
deduction from the carrying amount of the related debt liability, similar to debt discounts or premiums. In August 2015, the FASB
issued additional guidance to allow issuers to continue to recognize debt issuance costs related to line-of-credit arrangements as
an asset and amortize that asset over the term of the credit agreement regardless of whether a balance is outstanding. These
pronouncements are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We
adopted this accounting guidance effective April 1, 2016. As a result of the adoption, we presented $8.9 million of unamortized
debt issuance costs that were previously included in other assets in our consolidated balance sheet as of March 31, 2016 as direct
deductions from the carrying amount of the related debt.

In November 2015, the FASB issued accounting guidance that changed how deferred taxes are classified on an entity’s
balance sheet. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be
classified as noncurrent on the balance sheet. The new guidance is effective for fiscal years, and interim periods within those years,
beginning after December 15, 2016 and early adoption is permitted. The guidance may be applied either prospectively, for all
deferred tax assets and liabilities, or retrospectively. If applied prospectively, entities are required to include a statement that prior
periods were not retrospectively adjusted. If applied retrospectively, entities are also required to include quantitative information
about the effects of the change on prior periods. We have not yet adopted this accounting guidance or determined the method of
adoption but the adoption of this guidance would reduce current assets and current liabilities and increase long-term assets and
86

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

long-term liabilities by such amounts. As of March 31, 2017, we had $0.1 million in current deferred taxes and $0.8 million in
current deferred liabilities that would be reclassified to long-term upon adoption of this accounting guidance.

In February 2016, the FASB issued accounting guidance which amends the existing accounting standards for lease accounting,
including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting.
This accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018,
with early adoption permitted. Additionally, this accounting guidance requires a modified retrospective transition approach for all
leases existing at, or entered into after the date of initial application, with an option to use certain transition relief. We have not
yet adopted this standard and are currently evaluating the effect this standard will have on our financial statements.

In March 2016, the FASB issued accounting guidance related to accounting for employee share-based payments. The
accounting guidance is intended to simplify several aspects of accounting for share-based payment award transactions including
income tax consequences, classification of awards as either equity or liabilities and classification on the statements of cash flows.
This accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016
and early adoption is permitted. We have not yet adopted this standard and are currently evaluating the effect this standard will
have on our financial statements.

In August 2016, the FASB issued accounting guidance to reduce the diversity in practice in how certain cash receipts and
cash payments are presented and classified in the statement of cash flows. This guidance is effective for fiscal years, and interim
periods within those years, beginning after December 15, 2017, and early adoption is permitted. We completed our evaluation of
this standard and concluded the adoption will not have a material impact on our financial statements.

In October 2016, the FASB issued accounting guidance related to current and deferred income taxes for intra-entity transfer
of assets other than inventory. This accounting guidance requires an entity to recognize the income tax consequences of an intra-
entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of
an asset other than inventory. This accounting guidance is effective for fiscal years, and interim periods within those years, beginning
after December 15, 2017, and early adoption is permitted. We have not yet adopted this accounting guidance and are currently
evaluating the effect this accounting guidance will have on our financial statements.

In October 2016, the FASB issued accounting guidance related to interest held through related parties that are under common
control. This accounting guidance affects reporting entities that are required to evaluate whether they should consolidate a variable
interest entity in certain situations involving entities under common control. Specifically, the guidance changes the evaluation of
whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single
decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common
control with the reporting entity. The accounting guidance is effective for fiscal years beginning after December 15, 2016, and
interim periods within those years, and early adoption is permitted. We have not yet adopted this standard and are currently
evaluating the effect this standard will have on our financial statements.

In January 2017, the FASB issued accounting guidance to simplify the subsequent measure of goodwill. The amendments
in this guidance eliminate the second step of the two-step goodwill impairment test. An entity will no longer be required to calculate
the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting
unit had been acquired in a business combination to determine the impairment of goodwill. The amendments in this guidance will
now require goodwill impairment to be measured by the amount by which the carrying value of the reporting unit exceeds its fair
value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The accounting
guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Upon
adoption, an entity shall apply the guidance prospectively with early adoption permitted for interim or annual goodwill tests
performed after January 1, 2017. We have adopted this standard effective January 1, 2017 and there is no material effect on our
consolidated financial statements and related disclosures.

In January 2017, the FASB issued accounting guidance which clarifies the definition of a business with the objective of
adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The
amendment provides a screen for determining when a transaction involves the acquisition of a business. If substantially all of the
fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then
the transaction does not involve the acquisition of a business. If the screen is not met, then the amendment requires that to be
considered a business, the operation must include at a minimum an input and a substantive process that together significantly
contribute to the ability to create an output. The guidance may reduce the number of transactions accounted for as business
acquisitions. This accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December
15, 2017, and early adoption is permitted. The amendments should be applied prospectively, and no disclosures are required at the

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

effective date. We have not yet adopted this accounting guidance and are currently evaluating the effect this accounting guidance
will have on our financial statements.

In March 2017, the FASB issued accounting guidance related to the presentation of net periodic pension cost and net periodic
postretirement benefit cost. The guidance requires employers to disaggregate the service cost component from the other components
of net benefit cost and disclose the amount of net benefit cost that is included in the statement of operations or capitalized in assets,
by line item. The accounting guidance requires employers to report the service cost component in the same line item(s) as other
compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs
from prior periods, and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The
accounting guidance also allows only the service cost component to be eligible for capitalization when applicable. This guidance
is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is
permitted as of the first interim period of an annual period for which interim or annual financial statements have not been issued.
The guidance requires application on a retrospective basis for the presentation of the service cost component and the other
components of net periodic pension cost and net periodic postretirement benefit cost in the statement of operations and on a
prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement
benefit in assets. We have not yet adopted this accounting guidance and are currently evaluating the effect this accounting guidance
will have on our financial statements.

Note 2 — ACQUISITIONS

We apply the provisions of Accounting Standards Codification 805, Business Combinations (“ASC 805”), in the accounting
for our business acquisitions. ASC 805 requires companies to separately recognize goodwill from the assets acquired and liabilities
assumed, which are at their acquisition date fair values. Goodwill as of the acquisition date represents the excess of the purchase
price over the fair values of the assets acquired and the liabilities assumed.

We use significant estimates and assumptions, including fair value estimates, to determine fair value of assets acquired and
liabilities assumed and, when applicable, the related useful lives of the acquired assets as of the business combination date. The
fair value measurements are primarily based on significant inputs that are not observable in the market, other than certain financial
assets and liabilities that are acquired or assumed in the acquisitions. The market approach, which indicates value for a subject
asset based on available market pricing for comparable assets, is utilized to estimate the fair value for land and buildings, aircraft
and spare parts inventory. The market approach includes prices and other relevant information generated by market transactions
involving comparable assets, as well as pricing guides and other sources. We consider the current market for assets, the maintenance
condition of assets and the expected proceeds from the sale of assets, among other factors. As a result we classify these assets in
Level 3 in the fair value hierarchy. For those financial assets and liabilities which utilize observable inputs we classify these
amounts in Level 2.

The income approach is primarily used to value intangible assets, including client relationships, certain internally used
software, and trade names, as well as noncontrolling interest. The income approach indicates value for a subject asset based on
the present value of cash flows projected to be generated by the asset. Projected cash flows are discounted at a required market
rate of return that reflects the relative risk of achieving the cash flows and the time value of money. The fair values associated with
these assets and liabilities are classified in Level 3 in the fair value hierarchy.

The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent
economic utility, is used, as appropriate, for certain assets for which the market and income approaches cannot be applied due to
the nature of the asset. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the asset, less
an allowance for loss in value due to depreciation. Assets valued using the cost approach are classified in Level 3 in the fair value
hierarchy.

See Note 6 for additional description of the fair value measurement.

Airnorth Acquisition

On January 29, 2015, Bristow Helicopters Australia Pty Ltd. (“Bristow Helicopters Australia”) acquired an 85% interest in
Capiteq Limited, operating under the name Airnorth, for cash of A$30.3 million ($24.0 million) with possible earn out consideration
of up to A$17.0 million ($13.0 million) to be paid over four years based in part on the achievement of specified financial performance
thresholds and continued employment by the selling shareholders. A portion of the first year earn-out payment of $1.5 million was
paid during fiscal year 2016 as Airnorth achieved agreed performance targets. Airnorth did not achieve the performance targets
for the second year earn-out payment. In addition, we entered into an agreement with the other shareholders of Capiteq Limited
that granted us the right after six months to buy all of their shares (and granted them the right after three years to require us to buy

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

all of their shares) and included transfer restrictions and other customary provisions. We recognized $24.3 million of goodwill as
a result of the Airnorth acquisition. The goodwill recorded as part of this acquisition primarily reflects the value of offering a
complete suite of point to point transportation services for our clients and synergies expected to arise from the combined entities,
as well as any intangible assets that do not qualify for separate recognition.

In November 2015, we purchased the remaining 15% of the outstanding shares of Airnorth for A$7.3 million ($5.3 million)
resulting in a reduction of $5.5 million to redeemable noncontrolling interests and an increase of $2.6 million to additional paid-
in capital on our consolidated balance sheet.

We believe this investment strengthens our ability to provide point to point transportation services for existing Australian
based passengers, expands industrial aviation services in certain areas in Southeast Asian markets and creates a more integrated
logistics solution for global clients. Airnorth is Northern Australia’s largest regional fixed wing operator based in Darwin, Northern
Territory, Australia with both scheduled and charter services that focus primarily on the energy and mining industries in northern
and western Australia as well as international service to Dili, Timor-Leste. Airnorth’s fleet consists of 14 aircraft and its customer
base includes many energy companies to which Bristow Group provides helicopter transportation services.

The following table summarizes the consolidated assets and liabilities of Airnorth as of January 29, 2015 (in thousands):

Current assets ............................................................................................... $
Property and equipment ...............................................................................
Goodwill (1) ..................................................................................................
Prepaid expenses and other assets (1) ...........................................................
Total assets...................................................................................................

Current liabilities, including debt (1) ............................................................
Long-term debt, less current maturities .......................................................
Other long-term liabilities............................................................................
Total liabilities .............................................................................................
Temporary equity.........................................................................................
Net assets ..................................................................................................... $

15,188
39,822
24,252
4,403
83,665

(20,104)
(20,606)
(9,441)
(50,151)
(3,427)
30,087

_____________

(1) For details on the correction of an immaterial error related to the acquisition of Airnorth, see Note 1.

Airnorth contributed $77.1 million, $75.4 million and $11.4 million of operating revenue during fiscal years 2017, 2016 and

2015, respectively, and is included in our Asia Pacific region.

Prior to the acquisition of the remaining 15% of outstanding shares of Airnorth in November 2015, redeemable noncontrolling
interests included the third-party noncontrolling interests in Airnorth. The third-party noncontrolling interest holders held a written
put option, which allowed them to sell their noncontrolling interest to Bristow Helicopters Australia at any time after the end of
the third year after acquisition. In addition to the written put option, Bristow Helicopters Australia held a perpetual call option to
acquire the noncontrolling interest after six months. Under each of these alternatives, the exercise price would be based on a
contractually defined multiple of cash flows formula (the “Airnorth Redemption Value”), which is not a fair value measurement,
and was payable in cash. As the written put option was redeemable at the option of the noncontrolling interest holders, and not
solely within Bristow Helicopters Australia’s control, the noncontrolling interest in Airnorth was classified in redeemable
noncontrolling interests between the stockholders’ investment and liabilities sections of the consolidated balance sheets. The initial
carrying amount of the noncontrolling interest was the fair value of the noncontrolling interest as of the acquisition date.

The noncontrolling interest was adjusted each period for comprehensive income and dividends attributable to the
noncontrolling interest and any changes in Bristow Helicopters Australia’s ownership interest in Airnorth, if any. An additional
adjustment to the carrying value of the noncontrolling interest was required if the Airnorth Redemption Value exceeded the current
carrying value. Changes in the carrying value of the noncontrolling interest related to a change in the Airnorth Redemption Value
would be recorded against permanent equity and would not affect net income. While there was no impact on net income, the
redeemable noncontrolling interest impacted our calculation of earnings per share. Utilizing the two-class method, we adjusted
the numerator of the earnings per share calculation to reflect the changes in the excess, if any, of the Airnorth Redemption Value
over the greater of (1) the noncontrolling interest carrying amount or (2) the fair value of the noncontrolling interest on a quarterly
basis.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Changes in the balance for the redeemable noncontrolling interest related to Airnorth are as follows (in thousands):

Acquisition of Airnorth on January 29, 2015............................................... $
Noncontrolling interest expense ..................................................................
Currency translation.....................................................................................
Balance as of March 31, 2015......................................................................
Noncontrolling interest expense ..................................................................
Accretion of noncontrolling interest ............................................................
Currency translation.....................................................................................
Acquisition of remaining 15% of Airnorth..................................................
Balance as of March 31, 2016...................................................................... $

3,427
(39)
(49)
3,339
788
1,498
(158)
(5,467)
—

The summary pro forma condensed consolidated financial information presented below for fiscal year 2015 gives effect to
the acquisition of Airnorth as if it had occurred as of April 1, 2013. The pro forma adjustments are based upon available information
and certain assumptions that we believe are reasonable. The pro forma net income has been adjusted to reflect depreciation and
amortization expense as if those adjustments had been applied on April 1, 2013. The summary pro forma condensed consolidated
financial information is for informational purposes only and does not purport to represent what our consolidated results of operations
actually would have been if the acquisition of Airnorth had occurred at any date, and such data does not purport to project our
results of operations for any future period.

Fiscal Year Ended
March 31, 2015

(In thousands)
(Unaudited)

Gross revenue............................................................................................. $
Net income .................................................................................................

1,927,680
87,902

Note 3 — VARIABLE INTEREST ENTITIES AND OTHER INVESTMENTS IN SIGNIFICANT AFFILIATES

VIEs

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional
subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is
consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly
impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that
could potentially be significant to the VIE. If we determine that we have operating power and the obligation to absorb losses or
receive benefits, we consolidate the VIE as the primary beneficiary, and if not, we do not consolidate.

As of March 31, 2017, we had interests in four VIEs of which we are the primary beneficiary, which are described below,

and had no interests in VIEs of which we are not the primary beneficiary.

Bristow Aviation Holdings Limited — We own 49% of Bristow Aviation Holdings Limited’s (“Bristow Aviation”) common
stock and a significant amount of its subordinated debt. Bristow Aviation is incorporated in England and holds all of the outstanding
shares in Bristow Helicopters Limited (“Bristow Helicopters”). Bristow Aviation’s subsidiaries provide industrial aviation services
to clients primarily in the U.K, Norway, Australia, Nigeria and Trinidad and fixed wing services primarily in the U.K and Australia.
Bristow Aviation is organized with three different classes of ordinary shares having disproportionate voting rights. The Company,
Caledonia Investments plc (“Caledonia”) and a European Union investor (the “E.U. Investor”) own 49%, 46% and 5%, respectively,
of Bristow Aviation’s total outstanding ordinary shares, although Caledonia has voting control over the E.U. Investor’s shares.

In addition to our ownership of 49% of Bristow Aviation’s outstanding ordinary shares, in May 2004, we acquired eight
million shares of deferred stock, essentially a subordinated class of stock with no voting rights, from Bristow Aviation for £1 per
share ($14.4 million in total). We also have £91.0 million ($113.8 million) principal amount of subordinated unsecured loan stock
(debt) of Bristow Aviation bearing interest at an annual rate of 13.5% and payable semi-annually. Payment of interest on such debt
has been deferred since its incurrence in 1996. Deferred interest accrues at an annual rate of 13.5% and aggregated $1.9 billion as
of March 31, 2017.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company, Caledonia, the E.U. Investor and Bristow Aviation have entered into a shareholder agreement respecting,
among other things, the composition of the board of directors of Bristow Aviation. On matters coming before Bristow Aviation’s
board, Caledonia’s representatives have a total of three votes and the two other directors have one vote each. In addition, Caledonia
has the right to nominate two persons to our board of directors and to replace any such directors so nominated.

Caledonia, the Company and the E.U. Investor also have entered into a put/call agreement under which, upon giving specified
prior notice, we have the right to buy all the Bristow Aviation shares held by Caledonia and the E.U. Investor, who, in turn, each
have the right to require us to purchase such shares. Under current English law, we would be required, in order for Bristow Aviation
to retain its operating license, to find a qualified E.U. investor to own any Bristow Aviation shares we have the right to acquire
under the put/call agreement. The only restriction under the put/call agreement limiting our ability to exercise the put/call option
is a requirement to consult with the Civil Aviation Authority (the “CAA”) in the U.K. regarding the suitability of the new holder
of the Bristow Aviation shares. The put/call agreement does not contain any provisions should the CAA not approve the new E.U.
investor. However, we would work diligently to find an E.U. investor suitable to the CAA. The amount by which we could purchase
the shares of the other investors holding 51% of the equity of Bristow Aviation is fixed under the terms of the call option, and we
have reflected this amount on our consolidated balance sheets as noncontrolling interest.

Furthermore, the call option provides a mechanism whereby the economic risk for the other investors is limited should the
financial condition of Bristow Aviation deteriorate. The call option price is the nominal value of the ordinary shares held by the
noncontrolling shareholders (£1.0 million as of March 31, 2017) plus an annual guaranteed rate of return less any prepayments of
such call option price and any dividends paid on the shares concerned. We can elect to pre-pay the guaranteed return element of
the call option price wholly or in part without exercising the call option. No dividends have been paid by Bristow Aviation. We
have accrued the annual return due to the other shareholders at a rate of sterling LIBOR plus 3% (prior to May 2004, the rate was
fixed at 12%) by recognizing noncontrolling interest expense on our consolidated statements of operations, with a corresponding
increase in noncontrolling interest on our consolidated balance sheets. Prepayments of the guaranteed return element of the call
option are reflected as a reduction in noncontrolling interest on our consolidated balance sheets. The other investors have an option
to put their shares in Bristow Aviation to us. The put option price is calculated in the same way as the call option price except that
the guaranteed rate for the period to April 2004 was 10% per annum. If the put option is exercised, any pre-payments of the call
option price are set off against the put option price.

Changes in the balance for the noncontrolling interest associated with Bristow Aviation are as follows (in thousands):

Balance – beginning of fiscal year .................................................................................. $ 1,410
(49)
Payments to noncontrolling interest shareholders...........................................................
Noncontrolling interest expense ......................................................................................
50
(185)
Currency translation ........................................................................................................
Balance – end of fiscal year............................................................................................. $ 1,226

2017

2016
$ 1,457
(55)
55
(47)
$ 1,410

2015
$ 1,645
(59)
58
(187)
$ 1,457

Fiscal Year Ended March 31,

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Bristow Aviation and its subsidiaries are exposed to similar operational risks and are therefore monitored and evaluated on
a similar basis by management. Accordingly, the financial information reflected on our consolidated balance sheets and statements
of operations for Bristow Aviation and subsidiaries is presented in the aggregate, including intercompany amounts with other
consolidated entities, as follows (in thousands):

March 31,

2017

2016

Assets

Cash and cash equivalents ............................................................................ $
Accounts receivable......................................................................................
Inventories ....................................................................................................
Prepaid expenses and other current assets ....................................................
Total current assets ................................................................................
Investment in unconsolidated affiliates ........................................................
Property and equipment, net .........................................................................
Goodwill .......................................................................................................
Other assets...................................................................................................

Total assets............................................................................................. $

92,409
222,560
90,190
50,016
455,175
3,513
306,831
19,798
203,228
988,545

Liabilities

Accounts payable.......................................................................................... $
Accrued liabilities.........................................................................................
Accrued interest ............................................................................................
Deferred taxes...............................................................................................
Current maturities of long-term debt ............................................................
Total current liabilities...........................................................................
Long-term debt, less current maturities ........................................................
Accrued pension liabilities ...........................................................................
Other liabilities and deferred credits.............................................................
Deferred taxes...............................................................................................
Temporary equity..........................................................................................

146,841
122,130
1,891,305
—
18,578
2,178,854
501,782
61,647
8,138
20,264
6,886
Total liabilities and temporary equity.................................................... $ 2,777,571

62,773
565,223
102,738
53,776
784,510
4,676
251,494
29,990
82,443
$ 1,153,113

521,563
141,977
1,698,360
—
10,322
2,372,222
155,222
70,107
7,928
20,330
15,473
$ 2,641,282

Revenue......................................................................................................... $ 1,209,019
(80,542)
Operating income (loss) ................................................................................
(279,159)
Net loss..........................................................................................................

2017

Fiscal Year Ended March 31,
2016
$ 1,441,834
(57,780)
(279,309)

2015
$ 1,512,312
40,524
(179,757)

Bristow Helicopters Nigeria Ltd. — Bristow Helicopters Nigeria Ltd. (“BHNL”) is a joint venture in Nigeria in which Bristow
Helicopters owned a 48% interest, a Nigerian company owned 100% by Nigerian employees owned a 50% interest and an employee
trust fund owned the remaining 2% interest as of March 31, 2017. BHNL provides industrial aviation services to clients in Nigeria.

In order to be able to bid competitively for our services in the Nigerian market, we were required to identify local citizens
to participate in the ownership of entities domiciled in the region. However, these owners do not have extensive knowledge of the
aviation industry and have historically deferred to our expertise in the overall management and day-to-day operation of BHNL
(including the establishment of operating and capital budgets and strategic decisions regarding the potential expansion of BHNL’s
operations). We have also historically provided subordinated financial support to BHNL and will need to continue to do so unless
and until BHNL acquires sufficient equity to permit itself to finance its activities without that additional support from us. As we
have the power to direct the most significant activities affecting the economic performance and ongoing success of BHNL and
hold a variable interest in the entity in the form of our equity investment and working capital infusions, we consolidate BHNL as
the primary beneficiary. The employee-owned Nigerian entity referenced above purchased its 19% interest in BHNL in December
2013 with proceeds from a loan received from BGI Aviation Technical Services Nigeria Limited (“BATS”). In July 2014, the
employee-owned Nigerian entity purchased an additional 29% interest with proceeds from a loan received from Bristow Helicopters
(International) Limited (“BHIL”). In April 2015, Bristow Helicopters purchased an additional 8% interest in BHNL and the
employee-owned Nigerian entity purchased an additional 2% interest with proceeds from a loan received from BHIL. Both BATS
and BHIL are wholly-owned subsidiaries of Bristow Aviation. The employee-owned Nigerian entity is also a VIE that we consolidate
as the primary beneficiary and we eliminate the loans discussed above in consolidation.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

BHNL is an indirect subsidiary of Bristow Aviation; therefore, financial information for this entity is included within the

amounts for Bristow Aviation and its subsidiaries presented above.

Pan African Airlines Nigeria Ltd. — Pan African Airlines Nigeria Ltd. (“PAAN”) is a joint venture in Nigeria with local

partners in which we own an interest of 50.17%. PAAN provides industrial aviation services to clients in Nigeria.

The activities that most significantly impact PAAN’s economic performance relate to the day-to-day operation of PAAN,
setting of operating and capital budgets and strategic decisions regarding the potential expansion of PAAN’s operations. Throughout
the history of PAAN, our representation on the board and our secondment to PAAN of its managing director has enabled us to
direct the key operational decisions of PAAN (without objection from the other board members). We have also historically provided
subordinated financial support to PAAN. As we have the power to direct the most significant activities affecting the economic
performance and ongoing success of PAAN and hold a variable interest in the form of our equity investment and working capital
infusions, we consolidate PAAN as the primary beneficiary. However, as long as we own a majority interest in PAAN, the separate
presentation of financial information in a tabular format for PAAN is not required.

Other Significant Affiliates — Consolidated

In addition to the VIEs discussed above, we consolidate the less than 100% owned entities described below.

Eastern Airways — Bristow Helicopters has a 60% interest in Eastern Airways, a regional fixed wing operator based at
Humberside Airport located in North Lincolnshire, England with both charter and scheduled services targeting U.K oil and gas
industry transportation. Eastern Airways operates 31 fixed wing aircraft and provides technical support for three fixed wing aircraft.
The terms of the purchase agreement for Eastern Airways included potential earn-out consideration of up to £6 million ($7.5
million) to be paid over a three-year period based on the achievement of specified financial performance thresholds through March
31, 2017. None of the earn-out targets were achieved. In addition, Bristow Helicopters entered into agreements with the other
shareholders of Eastern Airways that grant Bristow Helicopters the right to buy all of the Eastern Airways shares (and grant them
the right after seven years to require Bristow Helicopters to buy all of their shares) and include transfer restrictions and other
customary provisions.

The third-party noncontrolling interest holders hold a written put option, which will allow them to sell their noncontrolling
interest to Bristow Helicopters at any time after the end of the seventh year after acquisition. In addition to the written put option,
Bristow Helicopters holds a perpetual call option to acquire the noncontrolling interest at any time. Under each of these alternatives,
the exercise price will be based on a contractually defined multiple of cash flows formula (the “Eastern Redemption Value”), which
is not a fair value measurement, and is payable in cash. As the written put option is redeemable at the option of the noncontrolling
interest holders, and not solely within Bristow Helicopters control, the noncontrolling interest in Eastern Airways is classified in
redeemable noncontrolling interests between the stockholders’ investment and liabilities sections of the consolidated balance
sheets. The initial carrying amount of the noncontrolling interest was the fair value of the noncontrolling interest as of the acquisition
date.

The noncontrolling interest is adjusted each period for comprehensive income and dividends attributable to the noncontrolling
interest and changes in Bristow Helicopters’ ownership interest in Eastern Airways, if any. An additional adjustment to the carrying
value of the noncontrolling interest may be required if the Eastern Redemption Value exceeds the current carrying value. Changes
in the carrying value of the noncontrolling interest related to a change in the Eastern Redemption Value will be recorded against
permanent equity and will not affect net income. While there is no impact on net income, the redeemable noncontrolling interest
will impact our calculation of earnings per share. Utilizing the two-class method, we will adjust the numerator of the earnings per
share calculation to reflect the changes in the excess, if any, of the Eastern Redemption Value over the greater of (1) the noncontrolling
interest carrying amount or (2) the fair value of the noncontrolling interest on a quarterly basis.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Changes in the balance for the redeemable noncontrolling interest related to Eastern Airways are as follows (in thousands):

Balance as of March 31, 2014...................................................................... $
Noncontrolling interest expense ..................................................................
Currency translation.....................................................................................
Balance as of March 31, 2015......................................................................
Noncontrolling interest expense ..................................................................
Currency translation.....................................................................................
Balance as of March 31, 2016......................................................................
Noncontrolling interest expense ..................................................................
Currency translation.....................................................................................
Balance as of March 31, 2017...................................................................... $

22,283
3,389
(2,787)
22,885
(6,499)
(913)
15,473
(6,848)
(1,739)
6,886

Eastern Airways is consolidated based on the rights to manage the day-to-day operations of the company which were granted

under a shareholders’ agreement and our ability to buy all of their Eastern Airways shares under a put/call agreement.

Aviashelf Aviation Co. — Bristow Aviation has a 48.5% interest in Aviashelf Aviation Co. (“Aviashelf”), a Russian helicopter
company. Additionally, we own 51% of two U.K. joint venture companies, Bristow Helicopters Leasing Ltd. and Sakhalin Bristow
Air Services Ltd. These two U.K. companies lease aircraft to Aviashelf which holds the client contracts for our Russian operations.
Aviashelf is consolidated based on the ability of certain consolidated subsidiaries of Bristow Aviation to control the vote on a
majority of the shares of Aviashelf, rights to manage the day to day operations of the company which were granted under a
shareholders’ agreement, and our ability to acquire an additional 8.5% interest in Aviashelf under a put/call option agreement.

Other Significant Affiliates — Unconsolidated

We have investments in other significant unconsolidated affiliates as described below.

Cougar — We own a 25% voting interest and a 40% economic interest in Cougar Helicopters Inc. (“Cougar”), the largest
offshore energy and SAR helicopter service provider in Canada. Cougar’s operations are primarily focused on serving the offshore
oil and gas industry off Canada’s Atlantic coast and in the Arctic. Cougar operates eight helicopters leased from us on a long-term
basis. We also lease maintenance and SAR facilities located in St. John’s, Newfoundland and Labrador and Halifax, Nova Scotia
to Cougar on a long-term basis. The terms of the purchase agreement for Cougar include a potential earn-out of $40 million payable
over three years based on Cougar achieving certain agreed performance targets. The first year and second year earn-out payments
of $6.0 million and $8.0 million were paid in March 2014 and April 2015, respectively, as Cougar achieved agreed performance
targets. The third year earn-out was achieved as Cougar achieved agreed performance targets of which $10 million was paid in
April 2016 and $16 million was paid in April 2017. The fair value of the earn-out was $16.0 million as of March 31, 2017 and is
included in short-term borrowings and current maturities of long-term debt on our consolidated balance sheet and $26.0 million
as of March 31, 2016 and is included in contingent consideration on our consolidated balance sheet. The investment in Cougar is
accounted for under the equity method. As of March 31, 2017 and 2016, the investment in Cougar was $56.9 million and $59.7
million, respectively, and is included on our consolidated balance sheets in investment in unconsolidated affiliates. Due to timing
differences in our financial reporting requirements, we record our share of Cougar’s financial results in earnings from unconsolidated
affiliates on a three-month delay. Additionally, we lease six S-92 model aircraft and one AW139 model aircraft from VIH Aviation
Group, which is a related party due to common owners of Cougar, and paid lease fees of $12.5 million, $6.5 million and $6.4
million in fiscal years 2017, 2016 and 2015, respectively. Additionally, we have paid $0.5 million, $2.6 million and $7.3 million
in fiscal years 2017, 2016 and 2015, respectively, to VIH Aerospace Inc., another related party with common owners of Cougar,
for SAR and other equipment. In July 2016 we began leasing a facility in Galliano, Louisiana from VIH Helicopters USA, Inc.,
another related party with common owners of Cougar, and paid $0.1 million in lease fees during fiscal year 2017.

HCA — As of March 31, 2014, we owned a 50% interest in HCA, a U.K. company that provides inspection and certification
services for offshore helidecks. On November 21, 2014, we sold our 50% interest in HCA for £2.7 million, or approximately $4.2
million. We recorded a pre-tax gain on sale of unconsolidated affiliate of $3.9 million during fiscal year 2015 on our consolidated
statements of operations. HCA was accounted for under the equity method prior to November 21, 2014.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Líder — We own an approximate 20% voting interest and a 41.9% economic interest in Líder Táxi Aéreo S.A. (“Líder”),
the largest provider of helicopter and executive aviation services in Brazil. Líder’s fleet has 43 helicopters and 22 fixed wing
aircraft (including owned and managed aircraft). Effective May 28, 2014, our ownership interest in Líder in Brazil was reduced
from 42.5% to 41.9% as a result of Líder’s issuance of additional shares to improve tax and cost-saving efficiencies. This transaction
resulted in no material impact to our consolidated financial statements. The investment in Líder is accounted for under the equity
method. As of March 31, 2017 and 2016, the investment in Líder was $143.5 million and $124.2 million, respectively, and is
included in our consolidated balance sheets in investment in unconsolidated affiliates.

PAS — We have a 25% interest in Petroleum Air Services (“PAS”), an Egyptian corporation that provides helicopter and
fixed wing transportation to the offshore energy industry in Egypt. Additionally, spare fixed wing capacity is chartered to tourism
operators. PAS owns 46 aircraft. PAS is accounted for under the cost method as we are unable to exert significant influence over
its operations.

Other — Historically, in addition to the expansion of our business through purchases of new and used aircraft, we have also
established new joint ventures with local partners or purchased significant ownership interests in companies with ongoing helicopter
operations, particularly in countries where we have no operations or our operations are limited in scope, and we continue to evaluate
similar opportunities which could enhance our operations. Where we believe that it is probable that an equity method investment
will result, the costs associated with such investment evaluations are deferred and included in investment in unconsolidated affiliates
on the consolidated balance sheets. For each investment evaluated, an impairment of deferred costs is recognized in the period in
which we determine that it is no longer probable an equity method investment will result. As of March 31, 2017 and 2016, we had
no amounts in investment in unconsolidated affiliates in the process of being evaluated.

Our percentage of economic ownership and investment balances for the unconsolidated affiliates are as follows:

March 31,

2017

2016

2017

2016

(In thousands)

Cost Method:

PAS........................................................................................

25%

25% $

6,286

Equity Method:

Cougar (1) ...............................................................................
Líder (1) ..................................................................................
Other ......................................................................................
Total .....................................................................................................

40%
41.9%

40%

56,885
41.9% 143,477
3,514
$ 210,162

59,742
124,248
4,676
$ 194,952

_______________

(1) We had a 25% voting interest in Cougar and an approximate 20% voting interest in Líder as of March 31, 2017 and 2016.

Earnings from unconsolidated affiliates were as follows (in thousands):

Fiscal Year Ended March 31,
2015
2016

2017

Dividends from entities accounted for under the cost method:

PAS ............................................................................................................................... $ 2,068

$ 2,068

Earnings, net of losses, from entities accounted for under the equity method:

Cougar...........................................................................................................................
Líder..............................................................................................................................
Other (1) .........................................................................................................................

(2,857)
8,064
(330)
4,877
Total............................................................................................................................................. $ 6,945
_______________

(2,001)
(116)
310
(1,807)
261

(710)
(4,236)
1,107
(3,839)
$ (1,771)

(1) We sold our 50% interest in HCA in November 2014.

We received $0.4 million, $0.8 million and $5.6 million of dividends from our investments accounted for under the equity

method during fiscal years 2017, 2016 and 2015, respectively.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

A summary of combined financial information of our unconsolidated affiliates accounted for under the equity method is set

forth below (in thousands):

March 31,

2017

2016

(Unaudited)

Current assets ................................................................................................... $ 248,998
310,975
Non-current assets............................................................................................
Total assets................................................................................................ $ 559,973
Current liabilities ............................................................................................. $ 127,292
244,978
Non-current liabilities ......................................................................................
187,703
Equity...............................................................................................................
Total liabilities and equity ........................................................................ $ 559,973

$ 269,619
295,416
$ 565,035
$ 146,938
266,545
151,552
$ 565,035

Fiscal Year Ended March 31,

2017

2016

2015

Revenue ............................................................................................................ $ 327,351
50,371
Gross profit....................................................................................................... $
14,581
Net income ....................................................................................................... $

(Unaudited)
$ 368,586
60,873
$
21,871
$

$ 499,692
99,127
$
559
$

Note 4 — PROPERTY AND EQUIPMENT AND ASSETS HELD FOR SALE

During fiscal years 2017, 2016 and 2015, we made capital expenditures as follows:

Fiscal Year Ended March 31,

2017

2016

2015

Number of aircraft delivered:

Medium .........................................................................................
Large .............................................................................................
SAR aircraft ..................................................................................
Total aircraft (1) ......................................................................

5
—
4
9

1
3
4
8

6
10
5
21

Capital expenditures (in thousands):

Aircraft and related equipment (2) ................................................. $ 127,447
7,663
Other .............................................................................................
Total capital expenditures ...................................................... $ 135,110

$ 285,530
86,845
$ 372,375

$ 476,368
125,466
$ 601,834

_______________

(1) During fiscal year 2016, we took delivery of two aircraft that were purchased using short-term debt borrowings for the final payments

of the aircraft. As of March 31, 2017, the short-term borrowings for these aircraft have been paid.

(2) During fiscal years 2017, 2016 and 2015, we spent $71.4 million, $202.7 million and $440.9 million, respectively, on progress payments

for aircraft to be delivered in future periods.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table presents details on the aircraft sold or disposed of and impairments on assets held for sale during fiscal

years 2017, 2016 and 2015:

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands, except for
number of aircraft)

Number of aircraft sold or disposed of (1)........................................
Proceeds from sale or disposal of assets (1)...................................... $
Gain (loss) from sale or disposal of assets ...................................... $

14
18,471
$
(2,049) $

35
60,035
(1,122) $

44
$ 414,859
208

Number of aircraft impaired............................................................
Impairment charges on aircraft held for sale and construction in

progress ........................................................................................ $

12,450

29,571

36,057

_______________

(1) During fiscal years 2016 and 2015, three and 14 of these aircraft, respectively, were sold and leased back and we received $29.2 million
and $380.7 million, respectively, in proceeds for the aircraft. We did not enter into any sale leasebacks during fiscal year 2017.

In addition to capital expenditures and sale or disposal of assets, the following items impacted property and equipment during

fiscal year 2017:

• We recorded accelerated depreciation of $10.4 million on 11 medium aircraft operating in our Europe Caspian,
Americas and Africa regions as our management decided to exit these model types earlier than originally anticipated.
In certain instances the salvage values of some aircraft were also adjusted to reflect our expectation of sales values
in the current market.

• We transferred 12 aircraft to held for sale and reduced property and equipment by $19.7 million.

In addition to capital expenditures and sale or disposal of assets, the following items impacted property and equipment during

fiscal year 2016:

• We recorded accelerated depreciation of $28.7 million on 18 medium, four large and one fixed wing aircraft operating
in our Europe Caspian, Americas, Africa and Asia Pacific regions as our management decided to exit these model
types earlier than originally anticipated. In certain instances the salvage values of some aircraft were also adjusted
to reflect our expectation of sales values in the current market.

• We took delivery and entered into leases for the remaining two aircraft related to the deferred sale leaseback and
removed a total of $75.8 million and $74.3 million, respectively, from construction in progress and deferred sale
leaseback advance on our consolidated balance sheet. See Note 1 for further details on the deferred sale leaseback
advance.

• We took delivery of two large aircraft which we purchased using short-term debt borrowings for the final payments

of the aircraft of $24.4 million.

• We transferred 35 aircraft to held for sale and reduced property and equipment by $83.6 million.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In addition to capital expenditures and sale or disposal of assets, the following items impacted property and equipment during

fiscal year 2015:

• We recorded accelerated depreciation of $10.4 million for 10 medium, four large and one fixed wing aircraft operating
in our Africa, Americas and Asia Pacific regions as our management decided to exit these model types earlier than
originally anticipated.

• We increased the liabilities associated with deferred sale leaseback advance for additional payments made by the
purchaser during fiscal year 2015 by $69.7 million, with a corresponding increase to construction in progress.
Additionally, we took delivery and entered into leases for five aircraft related to the deferred sale leaseback and
removed $183.7 million and $182.6 million, respectively, from construction in progress and deferred sale leaseback
advance, current from our consolidated balance sheet. See Note 1 for further details on the deferred sale leaseback.

• We determined that since fiscal year 2010 we had been improperly capitalizing profit on intercompany technical
services billings related to aircraft modifications. To correct this error, we reduced property and equipment, net of
accumulated depreciation, by $4.4 million and increased deferred gains on aircraft sold and leased back included
within other long-term liabilities by $0.9 million. The offsetting impact on our consolidated statements of operations
was a reduction in revenue of $3.5 million, an increase in direct cost of $2.0 million and a reduction in depreciation
and amortization of $0.2 million. The error was not material to our consolidated financial statements for fiscal year
2015 or our previously reported consolidated financial statements for any period.

• We received proceeds of $16.0 million from insurance recoveries for inventory destroyed in a fire in our Port Harcourt,
Nigeria hangar. Additionally, we recorded a gain of $4.9 million in gain (loss) on disposal of assets on our consolidated
statement of operations and included in the table above.

• We transferred 15 aircraft to held for sale and reduced property and equipment by $91.5 million.

During fiscal years 2017 and 2016, we saw a deterioration in market sales for aircraft resulting mostly from an increase in
idle aircraft and reduced demand across the offshore energy market. While other markets exist for certain aircraft model types,
including utility, firefighting, government, VIP transportation and tourism, the market for certain model type aircraft slowed. As
a result of these market changes, changes in estimated salvage values of our fleet of operational aircraft and other changes in the
timing of exiting certain aircraft from our operations, we recorded impairments and additional depreciation expense discussed
above. For further details, see Note 1 for a discussion on impairments of property and equipment.

Assets Held for Sale

As of March 31, 2017 and 2016, we had 20 and 22 aircraft, for $38.2 million and $43.8 million, classified as held for sale,
respectively. We intend to sell or otherwise dispose of these assets during the next fiscal year. We recorded impairment charges of
$12.5 million, $29.6 million and $36.1 million to reduce the carrying value of 14, 16 and 27 aircraft held for sale during fiscal
years 2017, 2016 and 2015, respectively. These impairment charges were included in loss on disposal of assets in the consolidated
statements of operations.

The impairment charges recorded on held for sale aircraft during fiscal years 2017, 2016 and 2015 related primarily to older
model aircraft types our management decided to dispose of earlier than originally anticipated in addition to the impact of changes
in expected sales prices in the aircraft aftermarket resulting from the ongoing oil and gas market downturn. The impairment charges
recorded in fiscal year 2017 related primarily to the downturn in the oil and gas industry which resulted from reduced crude oil
prices and which caused a reduction in demand for aircraft in the offshore energy market and the impairment of older model aircraft
classified as held for sale. The impairment charges recorded in fiscal year 2016 related primarily to a medium aircraft model type
we made the decision to accelerate our exit from during the current downturn. The impairment charges recorded in fiscal year
2015 related to a large aircraft model type our management decided to sell as part of a single transaction, which reduced the overall
sales price for these aircraft. Also during fiscal year 2015, impairment charges included $4.3 million related to three medium
prototype aircraft as we entered into an agreement in April 2015 to sell these three aircraft and purchase fully developed/non-
prototype aircraft.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 5 — DEBT

Debt as of March 31, 2017 and 2016 consisted of the following (in thousands):

March 31,

2017
401,535
6 ¼% Senior Notes due 2022 .................................................................................... $
261,907
Term Loan .................................................................................................................
45,900
Term Loan Credit Facility .........................................................................................
139,100
Revolving Credit Facility ..........................................................................................
196,832
Lombard Debt............................................................................................................
200,000
Macquarie Debt .........................................................................................................
16,471
Airnorth Debt.............................................................................................................
15,326
Eastern Airways Debt................................................................................................
16,293
Other Debt .................................................................................................................
(11,345)
Unamortized debt issuance costs...............................................................................
1,282,019
Total debt ..............................................................................................................
Less short-term borrowings and current maturities of long-term debt .................
(131,063)
Total long-term debt ............................................................................................. $ 1,150,956

2016
401,535
335,665
200,000
144,000
—
—
19,652
15,643
24,394
(8,917)
1,131,972
(60,394)
$ 1,071,578

6 ¼% Senior Notes due 2022 — On October 12, 2012, we completed an offering of $450 million of the 6 ¼% Senior Notes.
The 6 ¼% Senior Notes are our unsecured senior obligations and are jointly and severally guaranteed on a senior unsecured basis
by certain of our U.S. subsidiaries (the “Guarantor Subsidiaries”). The indenture for our 6 ¼% Senior Notes includes restrictive
covenants which limit, among other things, our ability to incur additional debt, issue disqualified stock, pay dividends, repurchase
stock, invest in other entities, sell assets, incur additional liens or security, merge or consolidate the Company and enter into
transactions with affiliates. Interest on the 6 ¼% Senior Notes is payable on April 15 and October 15 of each year and the 6 ¼%
Senior Notes mature on October 15, 2022. We may redeem any of the 6 ¼% Senior Notes at any time on or after October 15, 2017,
in whole or part, in cash, at certain redemption prices plus accrued and unpaid interest, if any, to the date of redemption. At any
time prior to October 15, 2017, we may redeem all, but not less than all, of the 6 ¼% Senior Notes at a redemption price equal to
the principal amount plus an applicable premium and accrued and unpaid interest, if any, to the redemption date. We incurred
financing fees of $7.4 million, that are included as deferred financing fees in other assets in the consolidated balance sheets which
we will amortize as interest expense in the consolidated statements of operations over the life of the 6 ¼% Senior Notes.

In fiscal year 2015, we repurchased $48.5 million principal amount of the 6 ¼% Senior Notes in the open market at 103.75%
to 107.75%, plus accrued interest, for a total of $52.0 million. In connection with these repurchases, we incurred $2.6 million in
premium and fees which are included in extinguishment of debt on our consolidated statement of operations, and wrote-off $0.7
million of unamortized deferred financing fees, which is included in interest expense, net on our consolidated statement of
operations.

Revolving Credit Facility and Term Loan — As of March 31, 2017, our amended and restated revolving credit and term loan
agreement (the “Amended and Restated Credit Agreement”), included a $400 million revolving credit facility with a subfacility
of $30 million for letters of credit (the “Revolving Credit Facility”, and a five-year, $350 million term loan (the “Term Loan”)
(together with the Revolving Credit Facility and the Term Loan Credit Facility described below, collectively the “Senior Credit
Facilities”, and the Senior Credit Facilities, together with the Lombard Debt and the Macquarie Debt described below, the “Credit
Facilities”)). As of March 31, 2017, we had $139.1 million in borrowings outstanding and $0.6 million in letters of credit outstanding
under the Revolving Credit Facility and $262.1 million outstanding under the Term Loan excluding $0.2 million of unamortized
discount. The Revolving Credit Facility and the Term Loan mature in April 2019.

As of March 31, 2017, borrowings under the Amended and Restated Credit Agreement bear interest at an interest rate equal
to, at our option, either the Base Rate or LIBOR (or EURIBO, in the case of Euro-denominated borrowings) plus the applicable
margin. “Base Rate” means the higher of (1) the prime rate and (2) the Federal Funds rate plus 0.50% per annum. The applicable
margin for borrowings ranged from 0.00% to 2.50% prior to entering into the Eighth Amendment discussed below, and thereafter,
ranges from 0.50% to 3.50%, depending on whether the Base Rate or LIBOR was used and based on our leverage ratio pricing
grid. In addition, we are required to pay fees on the daily unused amount of the Revolving Credit Facility in an amount per annum
equal to an applicable percentage, which ranges from 0.25% to 0.625% and based on our leverage ratio pricing grid. Fees owed
on the letters of credit issued under the Revolving Credit Facility are equal to the applicable margin for LIBOR borrowings. The
interest rate was 3.79% and 2.69% as of March 31, 2017 and 2016, respectively.

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As of March 31, 2017, obligations under the Amended and Restated Credit Agreement were guaranteed by the Guarantor
Subsidiaries and secured by the U.S. cash and cash equivalents, accounts receivable, inventories, non-aircraft equipment, prepaid
expenses and other current assets, intangible assets and intercompany promissory notes held by Bristow Group Inc. and the
Guarantor Subsidiaries, and 100% and 65% of the capital stock of certain of our principal domestic and foreign subsidiaries,
respectively, as well as the aircraft pledged in connection with the Eighth Amendment described below. In addition, the Amended
and Restated Credit Agreement included customary covenants, including certain financial covenants and restrictions on our ability
to enter into certain transactions, including those that could result in the incurrence of additional indebtedness and liens; the making
of loans, guarantees or investments; sale of assets; payments of dividends or repurchases of our capital stock; and entering into
transactions with affiliates.

On November 5, 2015, simultaneously with the closing of a senior secured term loan credit agreement (the “Term Loan
Credit Agreement”) which provides for $200 million of term loan commitments (the “Term Loan Credit Facility”) described below,
we entered into the seventh amendment to the Amended and Restated Revolving Credit and Term Loan Agreement (“Seventh
Amendment”) which permitted, among other things: (i) entry into the Term Loan Credit Facility and the incurrence of indebtedness
thereunder and (ii) the granting of liens by the Company and the Guarantor Subsidiaries in favor of the lenders under the Term
Loan Credit Facility on a pari passu secured basis with the liens granted in favor of the lenders under the Amended and Restated
Revolving Credit and Term Loan Agreement.

On May 23, 2016, we entered into an eighth amendment to the Amended and Restated Credit Agreement (the “Eighth
Amendment”) that, among other things, (a) replaced the maximum leverage ratio requirement with a maximum senior secured
leverage ratio, defined as the ratio of the sum of senior secured debt and the present value of obligations under operating leases
to consolidated EBITDA for the most recent four consecutive fiscal quarters, which ratio may not be not greater than 4.25:1.00
for each fiscal quarter ending during the period from March 31, 2016 through September 30, 2017 and 4.00:1.00 for each fiscal
quarter ending thereafter, (b) replaced the interest coverage ratio requirement with a minimum current ratio, defined as the ratio
of the sum of consolidated current assets minus the book value of aircraft held for sale plus the unused amount of aggregate
revolving commitments less $25 million to consolidated current liabilities, which may not be not less than 1.00:1.00 as of the last
day of each fiscal quarter, (c) allowed for the issuance of certain additional indebtedness when the leverage ratio exceeds 4.75:1.00,
including (i) unsecured, subordinated or convertible indebtedness to refinance outstanding term loans under the Amended and
Restated Credit Agreement and the Term Loan Credit Agreement, (ii) additional unsecured, subordinated or convertible
indebtedness of up to $100 million in principal amount, (iii) equipment financings, including, without limitation, aircraft sale and
leaseback transactions, and (iv) financings of U.K. bases with respect to helicopter SAR services and (d) limited cash dividends
on our Common Stock to $0.07 per share per quarter. In addition, in connection with the Eighth Amendment and the first amendment
to the Term Loan Credit Agreement described below, certain of our U.S. subsidiaries have granted liens on certain of their aircraft
to secure our obligations under the Amended and Restated Credit Agreement and the Term Loan Credit Agreement on a pari passu
secured basis in favor of the lenders under each such agreement. Also as part of the Eight Amendment, the applicable margin for
borrowings under the Amended and Restated Credit Agreement ranges from 0.50% to 3.50%, depending on whether the Base Rate
or LIBOR was used and based on our leverage ratio pricing grid.

During fiscal year 2017, we had borrowings of $300.6 million and made payments of $305.5 million under the Revolving

Credit Facility. Additionally, during fiscal year 2017 we paid $73.9 million to reduce our borrowings under the Term Loan.

Term Loan Credit Facility — On November 5, 2015, we entered into the Term Loan Credit Agreement as discussed above.
Proceeds from the Term Loan Credit Facility were initially used to repay loans outstanding under our $400 million Revolving
Credit Facility. The additional liquidity was used for capital expenditures, working capital needs and general corporate purposes.
The interest rate at closing was LIBOR plus a borrowing margin of 2.0%. The Term Loan Credit Facility is guaranteed by certain
of our Guarantor Subsidiaries and secured by the U.S. cash and cash equivalents, accounts receivable, inventories, non-aircraft
equipment, prepaid expenses and other current assets, intangible assets and intercompany promissory notes held by the Company
and the Guarantor Subsidiaries, and 100% and 65% of the capital stock of certain of our principal domestic and foreign subsidiaries,
respectively, as well as certain aircraft as discussed above under “Revolving Credit Facility and Term Loan.” In addition, the Term
Loan Credit Facility includes customary covenants, including certain financial covenants and restrictions on our ability to enter
into certain transactions, including those that could result in the incurrence of additional indebtedness and liens; the making of
loans, guarantees or investments; sale of assets; payments of dividends or repurchases of our capital stock; and entering into
transactions with affiliates. The Term Loan Credit Facility matures in November 2017.

On May 23, 2016, we entered into the first amendment to the Term Loan Credit Agreement that, among other things,

incorporates, as applicable, the provisions of the Eighth Amendment described above.

During fiscal year 2017, we paid $154.1 million to reduce the borrowings under the Term Loan Credit Facility.

100

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Lombard Debt — On November 11, 2016, certain of our subsidiaries entered into two, seven-year British pound sterling
denominated secured equipment term loans for an aggregate $200 million U.S. dollar equivalent with Lombard North Central Plc,
a part of the Royal Bank of Scotland (the “Lombard Debt”). In December 2016, the first loan amount of $109.9 million (GBP 89.1
million) funded and the borrower prepaid scheduled principal payments of $4.5 million (GBP 3.7 million). The proceeds from this
financing were used to finance the purchase by the borrower thereunder of three SAR aircraft utilized for our U.K. SAR contract
from a subsidiary. In January 2017, the second loan amount of $90.1 million (GBP 72.4 million) funded. The proceeds from this
financing were used to finance the purchase by the borrower thereunder of five SAR aircraft utilized for our U.K. SAR contract
from a subsidiary. The borrowers’ respective obligations under the financings are guaranteed by the Company, and each financing
is secured by the aircraft purchased by the applicable borrower with the proceeds of its loan. The credit agreements governing the
Lombard Debt includes covenants, including requirements to maintain, register and insure the respective SAR aircraft secured
thereunder, and restrictions on the respective borrower thereunder to incur additional liens on or sell the respective SAR aircraft
secured thereunder (except to the Company and its subsidiaries). Borrowings under the financings bear interest at an interest rate
equal to the ICE Benchmark Administration Limited LIBOR (or the successor thereto) plus 2.25% per annum. The financing which
funded in December 2016 matures in December 2023 and the financing which funded in January 2017 matures in January 2024.

Macquarie Debt — On February 1, 2017, one of our wholly-owned subsidiaries entered into a term loan credit agreement
for a $200 million five-year secured equipment term loan with Macquarie Bank Limited (the “Macquarie Debt”). In conjunction
with closing and funding under such term loan, we have agreed to lease five helicopters for lease terms ranging from 60 to 63
months from Wells Fargo Bank Northwest, N.A., acting as owner trustee for Macquarie Aerospace Inc., an affiliate of Macquarie
Bank Limited. The borrower's obligations under the credit agreement are guaranteed by the Company and secured by 20 oil and
gas aircraft. The financing funded on March 7, 2017. Borrowings under the financing bear interest at an interest rate equal to the
ICE Benchmark Administration Limited LIBOR (or the successor thereto) plus 5.35% per annum. The proceeds from the financing
were used to repay $154.1 million of our Term Loan Credit Facility and $45.9 million of our Term Loan.

The credit agreement governing the Macquarie Debt includes covenants, including requirements to maintain, register and
insure the respective aircraft secured thereunder, and restrictions on the respective borrower thereunder to incur additional liens
on or sell the respective aircraft secured thereunder (except to the Company and its subsidiaries). The Macquarie Debt matures in
March 2022.

Airnorth Debt— Airnorth’s outstanding debt includes interest bearing term loans of $16.5 million as of March 31, 2017.
The term loans primarily relate to the purchase of aircraft, have a remaining term of approximately three to seven years, and consist
of a term loan with interest at LIBOR plus a margin of 2.85% and two term loans each with a fixed rate of 3.1% plus the Reserve
Bank of Australia cash rate of 2.0%. The term loans have customary covenants, including certain financial covenants, and varying
principal payments.

Eastern Airways Debt — Eastern Airways’ outstanding debt includes interest bearing term loans and borrowings under a
revolving credit facility totaling $15.3 million as of March 31, 2017. The term loans were used to refinance other Eastern
indebtedness in October 2015 and bear interest at LIBOR plus a margin of 1.75%. The interest rate on the term loans was 1.971%
as of March 31, 2017. These term loans have quarterly principal payments and mature on August 31, 2018. Borrowings under the
revolving credit facility are used for general corporate, working capital and capital expenditure purposes, and bear interest at
LIBOR plus a margin of 1.75%. All outstanding obligations under the revolving credit facility will mature on August 31, 2018.

Other Debt — Other debt primarily includes amounts payable relating to the third year earn-out payment for our investment

in Cougar totaling $16.0 million that was subsequently paid in April 2017.

Other Matters — Aggregate annual maturities (which excludes unamortized discount of $0.2 million and unamortized debt

issuance costs of $11.3 million) for all debt for the next five fiscal years and thereafter are as follows (in thousands):

Fiscal year ending March 31

2018......................................................................................................................................... $
2019.........................................................................................................................................
2020.........................................................................................................................................
2021.........................................................................................................................................
2022.........................................................................................................................................
Thereafter ................................................................................................................................

134,009
77,397
351,437
28,559
157,664
544,491
$ 1,293,557

101

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Interest paid in fiscal years 2017, 2016 and 2015 was $51.4 million, $41.8 million and $38.0 million, respectively. Capitalized

interest was $10.2 million, $10.6 million and $14.6 million in fiscal years 2017, 2016 and 2015, respectively.

GE Commitment Letter — On February 2, 2017, we executed a commitment letter for an approximate six-year, $230 million
secured equipment financing with PK Transportation Finance Ireland Limited, a part of GE Capital Aviation Services (“GECAS”).
As part of this financing, which is subject to entering into definitive agreements, Milestone Aviation Group Limited (“Milestone”),
a GECAS company, will defer up to $25 million in lease rentals on certain Airbus Helicopters EC225LP (also known as a H225)
model helicopters on lease to us. The financing is intended to be secured by up to 20 oil and gas aircraft. Borrowings under the
financing will bear interest at an interest rate equal to the ICE Benchmark Administration Limited LIBOR (or the successor thereto)
plus 5% per annum. We expect this financing to close no later than June 30, 2017. The proceeds from the financing are expected
to be used to repay amounts outstanding under our existing bank indebtedness. As part of executing the commitment letter, we
extended three Sikorsky S-92 leases by two years each with Milestone.

Note 6 — FAIR VALUE DISCLOSURES

Assets and liabilities subject to fair value measurement are categorized into one of three different levels depending on the

observability of the inputs employed in the measurement, as follows:

• Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 – inputs that reflect quoted prices for identical assets or liabilities in markets which are not active; quoted prices
for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or liability;
or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 – unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to
determine fair value. These assumptions are required to be consistent with market participant assumptions that are
reasonably available.

Non-recurring Fair Value Measurements

The majority of our non-financial assets, which include inventories, property and equipment, assets held for sale, goodwill
and other intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events
occur such that a non-financial asset is required to be evaluated for impairment and deemed to be impaired, the impaired non-
financial asset is recorded as its fair value.

The following table summarizes the assets as of March 31, 2017, valued at fair value on a non-recurring basis (in thousands):

The following table summarizes the assets as of March 31, 2016, valued at fair value on a non-recurring basis (in thousands):

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Inventories...................................................... $
Assets held for sale ........................................
Goodwill ........................................................

Total assets.............................................. $

— $
—
—
— $

46,568
38,246
—
84,814

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Inventories...................................................... $
Assets held for sale ........................................
Goodwill ........................................................
Other intangible assets ...................................

Total assets.............................................. $

— $
—
—
—
— $

6,261
43,783
—
—
50,044

102

Balance as of
March 31, 2017
46,568
38,246
19,798
104,612

— $
—
19,798
19,798

Total Loss for
Fiscal Year
2017

(7,572)
(12,450)
(8,706)
(28,728)

Balance as of
March 31, 2016
6,261
43,783
29,990
—
80,034

— $
—
29,990
—
29,990

Total Loss for
Fiscal Year
2016

(5,439)
(29,571)
(41,579)
(8,086)
(84,675)

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The fair value of inventories using Level 2 inputs is determined by evaluating the current economic conditions for sale and
disposal of spare parts, which includes estimates as to the recoverability of the carrying value of the parts based on historical
experience with sales and disposal of similar spare parts, the expected timeframe of sales or disposals, the location of the spare
parts to be sold and the condition of the spare parts to be sold or otherwise disposed of. See Note 1 for further discussion of the
impairment of inventories and other intangible assets.

The fair value of assets held for sale using Level 2 inputs is determined through evaluation of expected sales proceeds for
aircraft. This analysis includes estimates based on historical experience with sales, recent transactions involving similar assets,
quoted market prices for similar assets and condition and location of aircraft to be sold or otherwise disposed of. See Note 4 for
details on assets held for sale.

The fair value of goodwill is estimated using a variety of valuation methods, including the income and market approaches.
These estimates of fair value include unobservable inputs, representative of Level 3 fair value measurement, including assumptions
related to future performance, such as projected demand for our services and rates. For further details on our goodwill, see Note
1.

See Note 2 for details on the fair values related to the Airnorth acquisition.

Recurring Fair Value Measurements

The following table summarizes the financial instruments we had as of March 31, 2017, valued at fair value on a recurring

basis (in thousands):

Rabbi Trust investments ............................... $
Total assets............................................. $

3,075
3,075

$
$

— $
— $

Balance as of
March 31, 2017
3,075
3,075

— $
— $

Balance Sheet
Classification
Other assets

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

The following table summarizes the financial instruments we had as of March 31, 2016, valued at fair value on a recurring

basis (in thousands):

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Rabbi Trust investments................................ $
Total assets............................................. $

2,990
2,990

$
$

— $
— $

Contingent consideration (1):

Current ................................................... $

— $

29,522

Long-term ..............................................
Total liabilities ....................................... $

—
— $

3,069
32,591

_______________

Balance at
March 31, 2016
2,990
2,990

— $
— $

Balance Sheet
Classification
Other assets

Contingent
consideration
Other liabilities and
deferred credits

(1) Relates to our investments in Cougar totaling $26.0 million and our acquisition of Airnorth totaling $6.6 million (see Notes 2 and 3).

The rabbi trust investments consist of cash and mutual funds whose fair value are based on quoted prices in active markets
for identical assets, and are designated as Level 1 within the valuation hierarchy. The rabbi trust holds investments related to our
non-qualified deferred compensation plan for our senior executives as discussed in Note 9.

103

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table provides a rollforward of the contingent consideration liability Level 3 fair value measurements during

fiscal year 2017 (in thousands):

Contingent consideration:

Balance as of March 31, 2016 .......................................................................................... $
Change in fair value of contingent consideration .....................................................
Payment of Cougar third year earn-out.....................................................................
Reclass of remaining Cougar third year earn-out to short-term borrowings and

accrued liabilities...................................................................................................

Balance as of March 31, 2017 .......................................................................................... $

32,591
(6,591)
(10,000)

(16,000)
—

Significant
Unobservable
Inputs (Level 3)

We assess the estimated fair value of the contractual obligation to pay the contingent consideration on a quarterly basis and
any changes in estimated fair value are recorded as accretion expense included in depreciation and amortization on our consolidated
statements of operations. Fluctuations in the fair value of contingent consideration are impacted by two unobservable inputs,
management’s estimate of the probability of Cougar or Airnorth achieving certain agreed performance targets and the estimated
discount rate. As of March 31, 2016, the discount rate approximated 4% for the contingent consideration related to Cougar. As of
March 31, 2016, the discount rate approximated 2% for the contingent consideration related to Airnorth. For details on the earn-
out payments for Airnorth and Cougar, see Notes 2 and 3, respectively.

Fair Value of Debt

The fair value of our debt has been estimated in accordance with the accounting standard regarding fair value. The fair value
of our fixed rate long-term debt is estimated based on quoted market prices. The carrying and fair value of our long-term debt,
including the current portion and excluding unamortized debt issuance costs, are as follows (in thousands):

March 31,

2017

2016

6 ¼% Senior Notes .............................................................................. $
Term Loan............................................................................................
Term Loan Credit Facility....................................................................
Revolving Credit Facility.....................................................................
Lombard Debt ......................................................................................
Macquarie Debt....................................................................................
Airnorth Debt .......................................................................................
Eastern Airways Debt ..........................................................................
Other Debt............................................................................................

Carrying
Value
401,535
261,907
45,900
139,100
196,832
200,000
16,471
15,326
16,293
$ 1,293,364

Fair Value

323,236
261,907
45,900
139,100
196,832
200,000
16,471
15,326
16,293
$ 1,215,065

Carrying
Value
401,535
335,665
200,000
144,000
—
—
19,652
15,643
24,394
$ 1,140,889

Fair Value

277,059
335,665
200,000
144,000
—
—
19,652
15,643
24,394
$ 1,016,413

Other

The fair values of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value

due to the short-term nature of these items.

104

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 7 — COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Contracts — As shown in the table below, we expect to make additional capital expenditures over the
next six fiscal years to purchase additional aircraft. As of March 31, 2017, we had 32 aircraft on order and options to acquire an
additional four aircraft. Although a similar number of our existing aircraft may be sold during the same period, the additional
aircraft on order will provide incremental fleet capacity in terms of revenue and operating income.

Commitments as of March 31, 2017: (2)

Number of aircraft:

Medium................................................
Large....................................................
U.K. SAR.............................................

Related commitment expenditures (in

thousands) (3)

Medium and large................................ $
U.K. SAR.............................................

Options as of March 31, 2017:

Number of aircraft:

Large....................................................

Related option expenditures (in

thousands) (3) .................................... $

_______________

Fiscal Year Ending March 31,

2018

2019

2020

2021 and
thereafter (1)

Total

5
—
4
9

—
5
—
5

—
4
—
4

—
14
—
14

5
23
4
32

2,263
58,975
61,238

89,994
—
89,994

69,504
—
69,504

187,532
—
187,532

349,293
58,975
408,268

—
—

2
2

—
—

4
4

— $

44,181

31,536

— $

75,717

(1)

(2)

(3)

Includes $80.6 million for five aircraft orders that can be cancelled prior to the delivery dates. During fiscal year 2017, we made non-refundable deposits
of $4.5 million related to these aircraft.

Signed client contracts are currently in place that will utilize four of these aircraft.

Includes progress payments on aircraft scheduled to be delivered in future periods only if options are exercised.

The following chart presents an analysis of our aircraft orders and options during fiscal years 2017, 2016 and 2015:

Beginning of fiscal year.......................................................................
Aircraft delivered............................................................................
Aircraft ordered ..............................................................................
New options ....................................................................................
Exercised options............................................................................
Expired options...............................................................................
End of fiscal year.................................................................................

Fiscal Year Ended March 31,

2017

2016

2015

Orders
36
(9)
5
—
—
—
32

Options
14
—
—
—
—
(10)
4

Orders
45
(8)
—
—
(1)
—
36

Options
30
—
—
4
—
(20)
14

Orders
43
(18)
8
—
12
—
45

Options
55
—
—
—
(12)
(13)
30

We periodically purchase aircraft for which we have no orders. During both fiscal years 2017 and 2016, we purchased one
aircraft for which we did not have an order. During fiscal year 2015, we purchased three aircraft for which we did not have orders.

105

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Operating Leases — We have non-cancelable operating leases in connection with the lease of certain equipment, land and
facilities, including leases for aircraft. Rental expense incurred under all operating leases was $212.6 million, $211.8 million and
$164.8 million in fiscal years 2017, 2016 and 2015, respectively. Rental expense incurred under operating leases for aircraft was
$188.2 million, $184.0 million and $138.3 million in fiscal years 2017, 2016 and 2015, respectively. As of March 31, 2017,
aggregate future payments under all non-cancelable operating leases that have initial or remaining terms in excess of one year,
including leases for 95 aircraft, are as follows (in thousands):

Fiscal year ending March 31,

2018..................................................................................................................... $ 179,940
154,331
2019.....................................................................................................................
106,513
2020.....................................................................................................................
39,327
2021.....................................................................................................................
19,930
2022.....................................................................................................................
9,387
Thereafter ............................................................................................................
$ 509,428

$ 11,319
10,218
8,522
7,448
6,942
32,368
$ 76,817

$ 191,259
164,549
115,035
46,775
26,872
41,755
$ 586,245

Aircraft

Other

Total

In fiscal years 2016 and 2015, we sold three and 14 aircraft for $29.2 million and $380.7 million, respectively, and entered
into separate agreements to lease these aircraft back. We did not enter into any sale leasebacks during fiscal year 2017. See Note
1 for further details.

The aircraft leases range from base terms of up to 180 months with renewal options of up to 240 months in some cases,
include purchase options upon expiration and some include early purchase options. The leases contain terms customary in
transactions of this type, including provisions that allow the lessor to repossess the aircraft and require us to pay a stipulated amount
if we default on our obligations under the agreements. These leases are included in the amounts disclosed above. The following
is a summary of the terms related to aircraft leased under operating leases with original or remaining terms in excess of one year
as of March 31, 2017:

End of Lease Term
Fiscal year 2018 to fiscal year 2019 ........................................................
Fiscal year 2020 to fiscal year 2022 ........................................................
Fiscal year 2023 to fiscal year 2025 ........................................................

Number
of Aircraft
33
48
14
95

Employee Agreements — Approximately 51% of our employees are represented by collective bargaining agreements and/
or unions with 92% of these employees being represented by collective bargaining agreements and/or unions that have expired or
will expire in one year. These agreements generally include annual escalations of up to 4.5%. Periodically, certain groups of our
employees who are not covered by a collective bargaining agreement consider entering into such an agreement. We also have
employment agreements with members of senior management. For discussion on separation programs between the Company and
its employees, see Note 9.

Nigerian Litigation — In November 2005, two of our consolidated foreign affiliates were named in a lawsuit filed with the
High Court of Lagos State, Nigeria by Mr. Benneth Osita Onwubalili and his affiliated company, Kensit Nigeria Limited, which
allegedly acted as agents of our affiliates in Nigeria. The claimants allege that an agreement between the parties was terminated
without justification and seek damages of $16.3 million. We responded to this claim in early 2006. There has been minimal activity
on this claim since then.

Environmental Contingencies — The U.S. Environmental Protection Agency (the “EPA”), has in the past notified us that we
are a potential responsible party, or PRP, at three former waste disposal facilities that are on the National Priorities List of
contaminated sites. Under the federal Comprehensive Environmental Response, Compensation and Liability Act, also known as
the Superfund law, persons who are identified as PRPs may be subject to strict, joint and several liability for the costs of cleaning
up environmental contamination resulting from releases of hazardous substances at National Priorities List sites. Although we
have not yet obtained a formal release of liability from the EPA with respect to any of the sites, we believe that our potential liability
in connection with the sites is not likely to have a material adverse effect on our business, financial condition or results of operations.

Other Purchase Obligations — As of March 31, 2017, we had $55.1 million of other purchase obligations representing
unfilled purchase orders for aircraft parts, commitments associated with upgrading facilities at our bases and non-cancelable power-

106

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

by-the-hour maintenance commitments. For further details on the non-cancelable power-by-the-hour maintenance commitments,
see Note 1.

Other Matters — Although infrequent, aircraft accidents have occurred in the past, and the related losses and liability claims

have been covered by insurance subject to deductible, self-insured retention and loss sensitive factors.

Additionally, we became aware of an incident involving another operator of the Sikorsky S-92A in the North Sea in December
2016. The preliminary review suggests a reduction in tail rotor control authority. Subsequent to the accident, Sikorsky issued a
number of Air Service Bulletins (ASBs) and the Federal Aviation Administration issued an Emergency Airworthiness Directive
(Emergency AD) to enhance inspections and ongoing operational monitoring on the tail rotor pitch change shaft bearing assembly.
We acted immediately in each case to ensure ongoing compliance with the ASBs and Emergency AD across our global fleet. The
other operator’s incident remains under investigation by the U.K. Air Accidents Investigation Branch. It is too early to determine
whether or not any further action may be required or the impact of this on our future business, financial condition and results of
operations.

As previously reported, on April 29, 2016, another helicopter company’s H225 helicopter crashed near Turøy outside of
Bergen, Norway. The aircraft was carrying eleven passengers and two crew members at the time of the accident. Thirteen fatalities
were reported. The cause of the accident is not yet known and is under investigation by authorities in Norway.

Prior to the accident, we operated a total of 27 H225 model aircraft (including 16 owned and 11 leased) worldwide as follows:

• Five H225 model aircraft registered in Norway;

• Thirteen H225 model aircraft registered in the United Kingdom; and

• Nine H225 model aircraft registered in Australia.

On June 2, 2016, the European Aviation Safety Agency (“EASA”) issued an emergency airworthiness directive, which was
subsequently amended on June 3, 2016 and June 9, 2016 (collectively, the “June EASA Airworthiness Directive”), prohibiting
flight of H225 and AS332L2 model aircraft. The June EASA Airworthiness Directive by its terms did not apply to military, customs,
police, search and rescue, firefighting, coastguard or similar activities or services as those types of services are governed by the
member states of EASA directly.

On October 7, 2016, EASA issued a new airworthiness directive effective October 13, 2016 (the “October EASA
Airworthiness Directive”) that expressly supersedes the June EASA Airworthiness Directive and details the mandatory actions
necessary to permit a return to service of the H225 and AS332L2 model aircraft. In response to the October EASA Airworthiness
Directive, the U.K. Civil Aviation Authority (“UK CAA”) immediately issued a statement (the “UK CAA Statement”) confirming
that its existing restriction that was evidenced through its safety directive issued in June 2016, prohibiting all commercial flying
of these model aircraft remains in effect until further notice. The safety directive issued in June 2016 by the Norway Civil Aviation
Agency (“NCAA”) prohibiting commercial operation of the H225 and AS332L2 model aircraft in Norway remains in effect as
well. The UK CAA Statement also stated that the UK CAA and NCAA are awaiting further information from the accident
investigation before considering any future action.

In light of the October EASA Airworthiness Directive and UK CAA Statement, we are working with local regulators, Airbus,
HeliOffshore and our clients to carefully evaluate our next steps for the H225 model aircraft in both our oil and gas and SAR
operations in Norway, the United Kingdom and Australia. We do not currently have any AS332L2 model aircraft in our fleet. Until
we are confident that the H225 model aircraft can be operated safely, we will continue to suspend all operation of its H225 model
aircraft, including for SAR and training.

Specifically, we will continue to not operate for commercial purposes our sole H225 model aircraft in Norway, our 13 H225
model aircraft in the United Kingdom or our six H225 model aircraft in Australia, or for search and rescue purposes, including
training and missions, any of our other four H225 model aircraft in Norway or our other three H225 model aircraft in Australia.

Our other aircraft, including SAR, continue to operate globally. It is too early to determine whether the H225 accident that
occurred in Norway in April 2016 will have a material impact on us as we are in the process of quantifying the impact and
investigating potential claims against Airbus.

We operate in jurisdictions internationally where we are subject to risks that include government action to obtain additional
tax revenue. In a number of these jurisdictions, political unrest, the lack of well-developed legal systems and legislation that is
not clear enough in its wording to determine the ultimate application, can make it difficult to determine whether legislation may

107

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

impact our earnings until such time as a clear court or other ruling exists. We operate in jurisdictions currently where amounts
may be due to governmental bodies that we are not currently recording liabilities for as it is unclear how broad or narrow legislation
may ultimately be interpreted. We believe that payment of amounts in these instances is not probable at this time, but is reasonably
possible.

A loss contingency is reasonably possible if the contingency has a more than remote but less than probable chance of
occurring. Although management believes that there is no clear requirement to pay amounts at this time and that positions exist
suggesting that no further amounts are currently due, it is reasonably possible that a loss could occur for which we have estimated
a maximum loss at March 31, 2017 to be approximately $5 million to $8 million.

We are a defendant in certain claims and litigation arising out of operations in the normal course of business. In the opinion

of management, uninsured losses, if any, will not be material to our financial position, results of operations or cash flows.

Note 8 — TAXES

The components of deferred tax assets and liabilities are as follows (in thousands):

March 31,

2017

2016

Deferred tax assets:

Foreign tax credits......................................................................................... $
State net operating losses ..............................................................................
Net operating losses ......................................................................................
Accrued pension liability ..............................................................................
Accrued equity compensation .......................................................................
Deferred revenue...........................................................................................
Employee award programs............................................................................
Employee payroll accruals ............................................................................
Inventories.....................................................................................................
Investment in unconsolidated affiliates.........................................................
Other..............................................................................................................
Valuation allowance - foreign tax credits......................................................
Valuation allowance - state ...........................................................................
Valuation allowance......................................................................................

Total deferred tax assets......................................................................... $

39,554
8,432
97,878
10,445
17,162
1,446
4,343
5,328
3,111
17,099
5,865
(31,974)
(8,432)
(34,321)
135,936

41,140
—
28,695
13,266
17,092
1,749
5,098
5,099
3,305
10,863
4,903
—
—
(29,373)
101,837

Deferred tax liabilities:

Property and equipment ................................................................................ $ (220,305) $ (202,388)
(799)
Inventories.....................................................................................................
Investment in unconsolidated affiliates.........................................................
(38)
(1,360)
Employee programs ......................................................................................
—
Deferred gain.................................................................................................
(3,390)
Other..............................................................................................................
Total deferred tax liabilities ................................................................... $ (260,515) $ (207,975)
Net deferred tax liabilities .................................................................................... $ (124,579) $ (106,138)

(1,967)
(28,631)
(1,033)
(3,208)
(5,371)

Companies may use foreign tax credits to offset the U.S. income taxes due on income earned from foreign sources. However,
the credit that may be claimed for a particular taxable year is limited by the total income tax on the U.S. income tax return as well
as by the ratio of foreign source net income in each statutory category to total net income. The amount of creditable foreign taxes
available for the taxable year that exceeds the limitation (i.e., “excess foreign tax credits”) may be carried back one year and
forward ten years. We have $39.6 million of excess foreign tax credits as of March 31, 2017, of which $6.6 million will expire in
2021, $4.0 million will expire in fiscal year 2022, $0.2 million will expire in fiscal year 2023, $15.6 million will expire in fiscal
year 2024 and $13.2 million will expire in fiscal year 2025. In fiscal year 2016, we generated $123.2 million of net operating loss
in the U.S. which we carried back to fiscal years 2014 and 2015 and received a cash refund of $27.7 million. The unused losses
of $1.6 million after the carryback will expire in 2036. In fiscal year 2017, we generated $124.7 million of net operating loss in
the U.S. which we will carryforward to future years; any unused losses will expire in 2037.

108

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not
be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of
the appropriate character in the future and in the appropriate taxing jurisdictions. As of March 31, 2017, valuation allowances
were $34.3 million for foreign operating loss carryforwards, $8.4 million for state operating loss carryforwards and $32.0 million
for foreign tax credits.

The components of income before provision for income taxes for fiscal years 2017, 2016 and 2015 are as follows (in

thousands):

Fiscal Year Ended March 31,

2017

2016

2015

Domestic................................................................................................. $ (147,988) $ (115,277) $ (40,602)
Foreign ...................................................................................................
152,075
Total........................................................................................................ $ (144,302) $ (79,231) $ 111,473

36,046

3,686

The provision for income taxes for fiscal years 2017, 2016 and 2015 consisted of the following (in thousands):

Current:

Domestic ......................................................................................... $
Foreign ............................................................................................

Deferred:

Fiscal Year Ended March 31,

2017

2016

2015

2,797
17,153
19,950

$ (29,907) $
27,317
(2,590) $

4
34,822
34,826

$
Total........................................................................................................ $

24,651
(12,013)
12,638
32,588

$
$

(4,483) $ (11,358)
4,991
(702)
$ (12,060)
508
22,766
(2,082) $

The reconciliation of the U.S. Federal statutory tax rate to the effective income tax rate for the provision for income taxes

is shown below:

Statutory rate...........................................................................................
Net foreign tax on non-U.S. earnings .....................................................
Benefit of foreign tax deduction in the U.S............................................
Foreign earnings indefinitely reinvested abroad.....................................
Change in valuation allowance...............................................................
Foreign earnings that are currently taxed in the U.S. .............................
Effect of reduction in corporate income tax rate ....................................
Goodwill impairment..............................................................................
Benefit of current year foreign tax credits..............................................
Tax reserve release..................................................................................
Other, net ................................................................................................
Effective tax rate..............................................................................

Fiscal Year Ended March 31,

2017
35.0 %
(0.5)%
2.5 %
(1.1)%
(25.7)%
(28.3)%
(0.2)%
(1.0)%
— %
0.6 %
(3.9)%
(22.6)%

2016
35.0 %
(8.4)%
2.6 %
15.9 %
(25.3)%
(7.9)%
1.1 %
(11.8)%
— %
0.2 %
1.2 %
2.6 %

2015
35.0 %
26.3 %
— %
(47.0)%
4.0 %
8.7 %
— %
— %
(11.3)%
(0.1)%
4.8 %
20.4 %

Our effective income tax rate for fiscal year 2017 is (22.6)% representing the income tax expense rate on a pre-tax net loss

for the fiscal year, which was reduced by $37.0 million of tax expense for an increase in valuation allowance.

109

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In fiscal year 2017, our effective tax rate was impacted by valuation allowances of $37.0 million and a change in the mix
of geographic earnings in which we experienced U.S. losses offset by taxes in jurisdictions taxed on a deemed profit basis. The
current effective tax rate was impacted by the tax effect of the $8.7 million goodwill impairment discussed in Note 1.

In August 2008, certain of our existing and newly created subsidiaries completed intercompany leasing transactions involving
eleven aircraft. The tax benefit of this transaction is being recognized over the remaining useful life of the assets, which is
approximately 13 years. During each of the fiscal years 2017, 2016 and 2015, this transaction resulted in a $2.4 million, $2.8
million and $2.9 million reduction in our consolidated provision for income taxes, respectively.

Our operations are subject to the jurisdiction of multiple tax authorities, which impose various types of taxes on us, including
income, value added, sales and payroll taxes. Determination of taxes owed in any jurisdiction requires the interpretation of related
tax laws, regulations, judicial decisions and administrative interpretations of the local tax authority. As a result, we are subject to
tax assessments in such jurisdictions including the re-determination of taxable amounts by tax authorities that may not agree with
our interpretations and positions taken. The following table summarizes the years open by jurisdiction as of March 31, 2017:

Jurisdiction
U.S.............................................................................................. Fiscal year 2014 to present
U.K. ............................................................................................ Fiscal year 2016 to present
Nigeria ........................................................................................ Fiscal year 2009 to present
Trinidad ...................................................................................... Fiscal year 2005 to present
Australia ..................................................................................... Fiscal year 2013 to present
Norway ....................................................................................... Fiscal year 2014 to present

Years Open

The effects of a tax position are recognized in the period in which we determine that it is more-likely-than-not (defined as
a more than 50% likelihood) that a tax position will be sustained upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition
threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being recognized upon ultimate
settlement.

We have analyzed filing positions in the federal, state and foreign jurisdictions where we are required to file income tax
returns for all open tax years. We believe that the settlement of any tax contingencies would not have a significant impact on our
consolidated financial position, results of operations or liquidity. In fiscal years 2017, 2016 and 2015, we had a net (benefit)
provision of $0.2 million, $0.4 million and $0.5 million, respectively, of reserves for tax contingencies primarily related to non-
U.S. income tax on foreign leasing operations. Our policy is to accrue interest and penalties associated with uncertain tax positions
in our provision for income taxes. In fiscal years 2017, 2016 and 2015, $0.2 million, $0.3 million and $0.4 million, respectively,
in interest and penalties were accrued in connection with uncertain tax positions.

As of March 31, 2017 and 2016, we had $1.3 million and $1.1 million, respectively, of unrecognized tax benefits, all of

which would have an impact on our effective tax rate, if recognized.

The activity associated with our unrecognized tax benefit during fiscal years 2017 and 2016 is as follows (in thousands):

Fiscal Year Ended
March 31,

Unrecognized tax benefits – beginning of fiscal year ................................................ $ 1,093
Eastern pre-acquisition tax liability............................................................................
1,059
Increases for tax positions taken in prior years ..........................................................
(818)
Decreases for tax positions taken in prior years.........................................................
Decrease related to statute of limitation expirations ..................................................
(2)
Unrecognized tax benefits – end of fiscal year .......................................................... $ 1,332

2017

2016
$ 4,904
— (4,193)
898
(188)
(328)
$ 1,093

Unremitted foreign earnings reinvested abroad upon which U.S. income taxes have not been provided aggregated
approximately $717.1 million and $832.1 million as of March 31, 2017 and 2016, respectively. No accrual of income tax has been
made for fiscal years 2017 and 2016 related to these indefinitely reinvested earnings as there was no plan in place to repatriate
any of these foreign earnings to the U.S. as of the end of the fiscal year. Withholding taxes, if any, upon repatriation would not be
significant. We do not currently provide for U.S. deferred taxes on unremitted earnings of our foreign subsidiaries as such earnings
are deemed to be permanently reinvested. If such earnings were to be distributed, we could be subject to U.S. taxes, which may

110

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

have a material impact on our results of operations. We cannot practicably estimate the amount of additional taxes that might be
payable on unremitted earnings

We receive a tax benefit that is generated by certain employee stock benefit plan transactions. This benefit is recorded directly
to additional paid-in-capital on our consolidated balance sheets and does not reduce our effective income tax rate. The tax benefit
for fiscal years 2015 totaled approximately $1.6 million, respectively. We did not receive any tax benefits in fiscal years 2017 and
2016 relating to employee stock benefit plan transactions.

Income taxes paid during fiscal years 2017, 2016 and 2015 were $28.1 million, $28.0 million and $34.8 million, respectively.

Note 9 — EMPLOYEE BENEFIT PLANS

Defined Contribution Plans

The Bristow Group Inc. Employee Savings and Retirement Plan (the “Bristow Plan”) covers Bristow Group Inc., Bristow
U.S. LLC, Bristow Panama Inc. and Bristow Alaska Inc. employees. Under the Bristow Plan, we match each participant’s
contributions up to 3% of the employee’s compensation. In addition, under the Bristow Plan, we contribute an additional 3% of
the employee’s compensation at the end of each calendar year.

Bristow Helicopters and Bristow International Aviation (Guernsey) Limited (“BIAGL”) have a defined contribution plan.

This defined contribution plan replaced the defined benefit pension plans described below for future accrual.

On March 1, 2016, the defined benefit pension plan in Norway discussed below was closed and replaced with a defined

contribution plan.

Our contributions to our defined contribution plans were $12.3 million, $14.4 million and $15.2 million for fiscal years

2017, 2016 and 2015, respectively.

Defined Benefit Plans

The defined benefit pension plans of Bristow Helicopters and BIAGL replaced by the defined contribution plans described
above covered all full-time employees of Bristow Aviation and BIAGL employed on or before December 31, 1997. Both plans
were closed to future accrual as of February 1, 2004. The defined benefits for employee members were based on the employee’s
annualized average last three years’ pensionable salaries up to February 1, 2004, increasing thereafter in line with retail price
inflation (prior to 2011) and consumer price inflation (from 2011 onwards), and subject to maximum increases of 5% per year
over the period to retirement. Any valuation deficits are funded by contributions by Bristow Helicopters and BIAGL. Plan assets
are held in separate funds administered by the plans’ trustee (the “Trustee”), which are primarily invested in equities and debt
securities. For members of the two closed defined benefit pension plans, since January 2005, Bristow Helicopters contributes a
maximum of 7% of a participant’s non-variable salary, and since April 2006, the maximum employer contribution into the plan
has been 7.35% for pilots. Each member is required to contribute a minimum of 5% of non-variable salary for Bristow Helicopters
to match the contribution. In addition, there are three defined contribution plans for staff who were not members of the original
defined benefit plans, two of which are closed to new members.

Bristow Norway had a final salary defined benefit pension plan, which was closed on March 1, 2016 as discussed above.
Under this plan, pilots could have retired from age 58 and other employees from age 62 (after meeting certain criteria). Bristow
Norway also participates in the standard Norwegian Avtalefestet pension (contractual pension or “AFP”), which is accounted for
as a defined contribution plan. The pension benefit was a percentage of final salary in excess of a deductible. The maximum pension
was available to those with 30 or more years of service as of the date of retirement. Additionally, there were associated death and
disability benefits. Plan assets were held in an insurance policy with an insurance company and contributions followed Norwegian
rules, which were based on an individual actuarial calculation for each plan member.

The closure of the Bristow Norway final salary plan on March 1, 2016 led to a curtailment and settlement of the projected
benefit obligations. All active members of the plan were transferred to the new defined contribution for future service and the
accrued individual insurance reserves for the beneficiaries was transferred to individual insurance policies.

111

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following tables provide a rollforward of the projected benefit obligation and the fair value of plan assets, set forth the
defined benefit retirement plans’ funded status and provide detail of the components of net periodic pension cost calculated for
the U.K. and Norway pension plans. The measurement date adopted is March 31. For the purposes of amortizing gains and losses,
the 10% corridor approach has been adopted and assets are taken at fair market value. Any such gains or losses are amortized over
the average remaining life expectancy of the plan members.

Fiscal Year Ended
March 31,

2017

2016

(In thousands)

Change in benefit obligation:

Projected benefit obligation (PBO) at beginning of period..................... $ 525,053
627
Service cost..............................................................................................
15,330
Interest cost..............................................................................................
73,622
Actuarial loss (gain) ................................................................................
(26,456)
Benefit payments and expenses...............................................................
—
Curtailments ............................................................................................
—
Settlements ..............................................................................................
(70,990)
Effect of exchange rate changes ..............................................................
Projected benefit obligation (PBO) at end of period ............................... $ 517,186

$ 639,299
8,243
20,108
(17,096)
(29,836)
(12,960)
(65,799)
(16,906)
$ 525,053

Change in plan assets:

Market value of assets at beginning of period......................................... $ 454,946
71,873
Actual return on assets.............................................................................
16,530
Employer contributions ...........................................................................
(26,456)
Benefit payments and expenses...............................................................
—
Settlements ..............................................................................................
Effect of exchange rate changes ..............................................................
(61,354)
Market value of assets at end of period ................................................... $ 455,539

$ 539,723
(6,271)
32,128
(29,836)
(65,799)
(14,999)
$ 454,946

Reconciliation of funded status:

Accumulated benefit obligation (ABO) .................................................. $ 517,186
Projected benefit obligation (PBO) ......................................................... $ 517,186
(455,539)
Fair value of assets ..................................................................................
Net recognized pension liability.............................................................. $ 61,647
Amounts recognized in accumulated other comprehensive loss............. $ 220,396

$ 524,540
$ 525,053
(454,946)
$ 70,107
$ 235,720

Fiscal Year Ended March 31,

2017

2016

2015

(In thousands)

Components of net periodic pension cost:

Service cost for benefits earned during the period ................... $
Interest cost on PBO .................................................................
Expected return on assets..........................................................
Amortization of unrecognized losses........................................

627
15,330
(21,697)
7,266
Net periodic pension cost .................................................. $ 1,526

$ 8,243
20,108
(27,208)
8,246
$ 9,389

$ 7,878
26,000
(31,020)
6,653
$ 9,511

The amount in accumulated other comprehensive loss as of March 31, 2017 expected to be recognized as a component of

net periodic pension cost in fiscal year 2018 is $6.5 million, net of tax, and represents amortization of the net actuarial losses.

112

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Actuarial assumptions used to develop the components of the U.K. plans were as follows:

Discount rate................................................................................
Expected long-term rate of return on assets ................................
Pension increase rate ...................................................................

Fiscal Year Ended March 31,

2017
3.30%
5.30%
2.80%

2016
3.30%
5.40%
2.80%

2015
4.40%
6.29%
3.10%

Actuarial assumptions used to develop the components of the Norway plan were as follows:

Discount rate................................................................................
Rate of compensation increase ....................................................
Social Security increase amount..................................................
Expected return on plan assets ....................................................
Pension increase rate ...................................................................

2.50%
3.50%
3.25%
1.50%
—%

4.25%
4.00%
3.75%
2.75%
1.75%

Fiscal Year Ended March 31,

2016

2015

We utilize a British pound sterling denominated AA corporate bond index as a basis for determining the discount rate for
our U.K. plans and NOK-denominated corporate bonds that are credit-rated AA or AAA as a basis for determining the discount
rate for our Norway plan. The expected rate of return assumptions have been determined following consultation with our actuarial
advisors. In the case of bond investments, the rates assumed have been directly based on market redemption yields at the
measurement date, and those on other asset classes represent forward-looking rates that have typically been based on other
independent research by investment specialists.

Under U.K. and Guernsey legislation, it is the Trustee who is responsible for the investment strategy of the plans, although
day-to-day management of the assets is delegated to a team of regulated investment fund managers. The Trustee of the Bristow
Staff Pension Scheme (the “Scheme”) has the following three stated primary objectives when determining investment strategy:

(i) “funding objective” - to ensure that the Scheme is fully funded using assumptions that contain a modest margin for
prudence. Where an actuarial valuation reveals a deficit, a recovery plan will be put in place which will take into
account the financial covenant to the employer;

(ii) “stability objective” - to have due regard to the likely level and volatility of required contributions when setting the

Scheme’s investment strategy; and

(iii) “security objective” - to ensure that the solvency position of the Scheme (as assessed on a gilt basis) is expected to
improve. The Trustee will take into account the strength of the employer’s covenant when determining the expected
improvement in the solvency position of the Scheme.

The types of investments are held, and the relative allocation of assets to investments is selected, in light of the liability
profile of the Scheme, its cash flow requirements, the funding level and the Trustee’s stated objectives. In addition, in order to
avoid an undue concentration of risk, assets are diversified within and across asset classes.

In determining the overall investment strategy for the plans, the Trustee undertakes regular asset and liability modeling
(“ALM”) with the assistance of their U.K. actuary. The ALM looks at a number of different investment scenarios and projects
both a range and a best estimate of likely return from each one. Based on these analyses, and following consultation with us, the
Trustee determines the benchmark allocation for the plans’ assets.

113

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The market value of the plan's assets as of March 31, 2017 and 2016 was allocated between asset classes as follows. Details

of target allocation percentages under the Trustee’s investment strategies as of the same dates are also included.

Target Allocation
as of March 31,

Actual Allocation
as of March 31,

Asset Category
Equity securities ............................................................
Debt securities...............................................................
Property .........................................................................
Other assets ...................................................................
Total...............................................................................

2016

2017
64.8% 58.3%
34.8% 31.1%
—%
—%
0.4% 10.6%

2016
60.7%
35.9%
0.1%
3.3%
100.0% 100.0% 100.0% 100.0%

2017
51.1%
33.4%
—%
15.5%

The following table summarizes, by level within the fair value hierarchy, the plan assets we had as of March 31, 2017, which

are valued at fair value (in thousands):

The following table summarizes, by level within the fair value hierarchy, the plan assets we had as of March 31, 2016, which

are valued at fair value (in thousands):

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Cash and cash equivalents ................................... $
Equity investments - U.K. ...................................
Equity investments - Non-U.K. ...........................
Government debt securities .................................
Corporate debt securities .....................................

Total investments.......................................... $

70,650
—
—
—
—
70,650

— $

47,392
185,567
80,654
71,276
$ 384,889

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Cash and cash equivalents ................................... $
Equity investments - U.K.....................................
Equity investments - Non-U.K. ...........................
Diversified growth (absolute return) funds..........
Government debt securities..................................
Corporate debt securities......................................
Insurance policies.................................................

Total investments.......................................... $

14,229
—
—
—
—
—
—
14,229

— $

61,085
117,140
98,024
72,728
89,256
—
$ 438,233

Balance as of
March 31, 2017
70,650
47,392
185,567
80,654
71,276
455,539

— $
—
—
—
—
— $

Balance as of
March 31, 2016
14,229
61,085
117,140
98,024
72,728
89,256
2,484
454,946

— $
—
—
—
—
—
2,484
2,484

The investments’ fair value measurement level within the fair value hierarchy is classified in its entirety based on the lowest
level of input that is significant to the measurement. The fair value of assets using Level 2 inputs is determined based on the fair
value of the underlying investment using quoted prices in active markets or other significant inputs that are deemed observable.
Our Norway pension plan is vested in an insurance policy which is designated as Level 3 within the valuation hierarchy and the
fair value is based on the estimated value provided by the insurer.

114

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Estimated future benefit payments over each of the next five fiscal years from March 31, 2017 and in aggregate for the

following five fiscal years after fiscal year 2022, including life assurance premiums, are as follows (in thousands):

Projected Benefit Payments by the Plans for Fiscal Years Ending March 31,
Payments
2018................................................................................................................................ $ 19,882
20,382
2019................................................................................................................................
20,883
2020................................................................................................................................
21,508
2021................................................................................................................................
22,008
2022................................................................................................................................
117,417
Aggregate 2023 - 2027 ...................................................................................................

We expect to fund these payments with our cash contributions to the plans, plan assets and earnings on plan assets. The

current estimates of our cash contributions for our pension plans required for fiscal year 2018 are expected to be $15.8 million.

Incentive Compensation

Incentive and Stock Option Plans — Stock–based awards are currently made under the Bristow Group Inc. 2007 Long-Term
Incentive Plan (the “2007 Plan”). As of March 31, 2017, a maximum of 10,646,729 shares of Common Stock are reserved, including
4,360,908 shares available for incentive awards under the 2007 Plan. Awards granted under the 2007 Plan may be in the form of
stock options, stock appreciation rights, shares of restricted stock, other stock-based awards (payable in cash or our Common
Stock) or performance awards, or any combination thereof, and may be made to outside directors, employees or consultants.

In addition, we have the following incentive and stock plans which have awards outstanding as of March 31, 2017, but under

which we no longer make grants:

• The 2004 Stock Incentive Plan (the “2004 Plan”), which provided for awards to officers and key employees in the form
of stock options, stock appreciation rights, restricted stock, other stock-based awards or any combination thereof. Options
become exercisable at such time or times as determined at the date of grant and expire no more than 10 years after the
date of grant.

• The 2003 Non-qualified Stock Option Plan for Non-employee Directors (the “2003 Director Plan”), which provided for
a maximum of 250,000 shares of our Common Stock to be issued pursuant to such plan. As of the date of each annual
meeting, each non-employee director who met certain attendance criteria was automatically granted an option to purchase
5,000 shares of our Common Stock. The exercise price of the options granted was equal to the fair market value of our
Common Stock on the date of grant, and the options were exercisable not earlier than six months after the date of grant
and expire no more than ten years after the date of grant.

In June 2016, June 2015 and June 2014, the Compensation Committee of our board of directors authorized the grant of stock
options, time vested restricted stock and long-term performance cash awards to participating employees. Each of the stock options
has a ten-year term and has an exercise price equal to the fair market value (as defined in the 2007 Plan) of our Common Stock
on the grant date. The options will vest in annual installments of one-third each, beginning on the first anniversary of the grant
date. Restricted stock grants vest at the end of three years. Performance cash awards allow the recipient to receive from 0 to 200%
of the target amount at the end of three years depending on how our total shareholder return ranks among a peer group over the
performance period. The value of the performance cash awards is calculated on a quarterly basis by comparing the performance
of our Common Stock, including any dividends paid since the award date, against the peer group and has a maximum potential
payout of $11.4 million, $10.7 million and $11.3 million for the June 2016, June 2015 and June 2014 awards, respectively. The
total value of the awards is recognized as compensation expense over a three-year vesting period with the recognition amount
being adjusted quarterly. Compensation expense related to the performance cash awards during fiscal years 2017, 2016 and 2015
was $7.0 million, $1.4 million and $14.1 million, respectively. Performance cash compensation expense has been allocated to our
various regions.

Total share-based compensation expense, which includes stock options, restricted stock and restricted stock units, was $12.4
million, $21.2 million and $16.4 million for fiscal years 2017, 2016 and 2015, respectively. Stock-based compensation expense
is included in general and administrative expense in the consolidated statements of operations and has been allocated to our various
regions. As of March 31, 2017 and 2016, there were no non-vested restricted stock units.

115

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

On May 23, 2016, our board of directors approved an amendment and restatement of the 2007 Plan, which was approved
by our stockholders on August 3, 2016, that effected each of the following changes: (i) reserved an additional 5,250,000 “shares” (or
2,625,000 full value shares) that, when combined with “shares” remaining available for issuance under the 2007 plan resulted in
a total of approximately 6,400,000 “shares” (or approximately 3,200,000 full value shares) available for issuance under the amended
and restated 2007 plan, with each option and stock appreciation right granted under the amended and restated 2007 plan counting
as one “shares” against such total and with each incentive award that may be settled in common stock counting as two “shares” (or
one full value share) against such total; (ii) increased the maximum share-based employee award under the amended and restated
2007 plan from 500,000 full value shares to 1,000,000 full value shares; (iii) set the maximum aggregate compensation and incentive
awards that may be provided by the Company in any calendar year to any non-employee member of the board of directors at
$1,125,000; and (iv) made other administrative and updating changes.

A summary of our stock option activity for fiscal year 2017 is presented below:

Weighted
Average
Exercise
Prices

Outstanding at March 31, 2016............ $
Granted ...........................................
Expired or forfeited ........................
Outstanding at March 31, 2017............
Exercisable at March 31, 2017.............

57.74
16.21
57.79
42.78
55.95

Number of
Shares

2,041,442
1,024,168
(222,002)
2,843,608
1,431,992

Weighted
Average
Remaining
Contractual Life

Aggregate
Intrinsic Value

(in thousands)

6.66
4.40

$
$

—
—

Stock options granted to employees under the 2004 and 2007 Plans vest ratably over three years on each anniversary from
the date of grant and expire 10 years from the date of grant. Stock options granted to non-employee directors under the 2003
Director Plans vest after six months.

We use a Black-Scholes option pricing model to estimate the fair value of share-based awards. The Black-Scholes option
pricing model incorporates various assumptions, including the risk-free interest rate, volatility, dividend yield and the expected
term of the options.

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equal to the
expected term of the option. Expected volatilities are based on the historical volatility of shares of our Common Stock, which has
not been adjusted for any expectation of future volatility given uncertainty related to the future performance of our Common Stock
at this time. We also use historical data to estimate the expected term of the options within the option pricing model and groups
of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term
of the options represents the period of time that the options granted are expected to be outstanding. Additionally, we estimate pre-
vesting option forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual pre-vesting
forfeitures differ from those estimates. We record stock-based compensation expense only for those awards expected to vest using
an estimated forfeiture rate based on our historical forfeiture data.

The following table shows the assumptions we used to compute the stock-based compensation expense for stock option

grants issued during fiscal years 2017, 2016 and 2015.

Risk free interest rate .....................................................................
Expected life (years) ......................................................................
Volatility.........................................................................................
Dividend yield................................................................................
Weighted average grant-date fair value of options granted ........... $ 2.16

2017
1.07%
5
46.8%
2.74%

2016
1.62%
5
28.1%
3.14%

2015
1.67%
5
30.1%
2.06%

$ 10.71

$ 17.17

Fiscal Year Ended
March 31,

Unrecognized stock-based compensation expense related to nonvested stock options was approximately $3.8 million as of
March 31, 2017, relating to a total of 1,411,616 unvested stock options. We recognize compensation expense on a straight-line
basis over the requisite service period for the entire award. We expect to recognize this stock-based compensation expense over
a weighted average period of approximately 1.5 years. The total fair value of options vested during fiscal years 2017, 2016 and
2015 was approximately $7.8 million, $7.4 million and $8.9 million, respectively.

116

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The total intrinsic value, determined as of the date of exercise, of options exercised during fiscal years 2017, 2016 and 2015
was zero, zero and $2.4 million, respectively. The total amount of cash we received from option exercises during fiscal years 2017,
2016 and 2015 was zero, zero and $5.2 million, respectively. The total tax benefit attributable to options exercised during fiscal
years 2017, 2016 and 2015 was zero, zero and $0.6 million, respectively.

The excess tax benefits from stock-based compensation for fiscal years 2017, 2016 and 2015 of zero, zero and $1.6 million,
respectively, are reported on our consolidated statements of cash flows in financing activities. This represents the reduction in the
provision for income taxes otherwise payable during the period attributable to the actual gross tax benefits in excess of the expected
tax benefits for options exercised in current and prior periods.

We have restricted stock awards that cliff vest on the third anniversary from the date of grant provided the grantee is still

employed by the Company, subject to our retirement policy.

We record compensation expense for restricted stock awards based on an estimate of the service period related to the awards,
which is tied to the future performance of our stock over certain time periods under the terms of the award agreements. The
estimated service period is reassessed quarterly. Changes in this estimate may cause the timing of expense recognized in future
periods to accelerate. Compensation expense related to awards of restricted stock and restricted stock units for fiscal years 2017,
2016 and 2015 was $8.0 million, $12.9 million and $10.1 million, respectively.

The following is a summary of non-vested restricted stock as of March 31, 2017 and 2016 and changes during fiscal year

2017:

Non-vested as of March 31, 2016 ...................................................
Granted.....................................................................................
Forfeited...................................................................................
Vested.......................................................................................
Non-vested as of March 31, 2017 ...................................................

Weighted
Average
Grant Date Fair
Value per Unit
65.24
$
10.21
59.78
42.39
26.97

Units
440,856
642,753
(45,535)
(298,581)
739,493

Unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $7.1 million as
of March 31, 2017, relating to a total of 739,493 unvested restricted stock. We expect to recognize this stock-based compensation
expense over a weighted average period of approximately 1.6 years.

The Annual Incentive Compensation Plan provides for an annual award of cash bonuses to key employees based primarily
on pre-established objective measures of performance. The bonuses related to this plan were $5.0 million and $19.9 million for
fiscal years 2017 and 2015, respectively. There were no bonuses awarded related to this plan during fiscal year 2016.

Additionally, we have a non-qualified deferred compensation plan for our senior executives. Under the terms of the plan,
participants can elect to defer a portion of their compensation for distribution at a later date. In addition, we have the discretion to
make annual tax deferred contributions to the plan on the participants’ behalf. We contributed $0.6 million, $1.3 million and $1.5
million to this plan in each of fiscal years 2017, 2016 and 2015, respectively. The assets of the plan are held in a rabbi trust and
are subject to our general creditors. As of March 31, 2017, the amount held in trust was $3.1 million.

117

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Retirement of President and Chief Executive Officer — On February 3, 2014, we announced that William E. Chiles would
resign as President and Chief Executive Officer of the Company effective upon the conclusion of the 2014 annual meeting of the
stockholders of the Company that was held on July 31, 2014. On June 9, 2014, Jonathan E. Baliff began serving as President and
on July 31, 2014 he assumed the additional role of Chief Executive Officer of the Company. Mr. Baliff also became a member of
the Board of Directors of the Company effective July 31, 2014.

Mr. Chiles and the Company entered into a Retirement and Consulting Agreement, dated January 30, 2014 (the “Agreement”)
to specify the terms of his continued employment with the Company. We recorded additional compensation expense, included in
general and administrative expense, of $5.5 million during fiscal year 2015 related to the Agreement.

Separation Agreements — In March 2015 and May 2016, we offered voluntary separation programs (“VSPs”) to certain
employees as part of our ongoing efforts to improve efficiencies and reduce costs. Additionally, beginning in March 2015, we
initiated involuntary separation programs (“ISPs”) in certain regions. The expense related to the VSPs and ISPs for the fiscal years
2017, 2016 and 2015 is as follows (in thousands):

Fiscal Year Ended March 31,

2017

2016

2015

VSP:

Direct cost ................................................ $
General and administrative.......................

Total..................................................... $

ISP:

Direct cost ................................................ $
General and administrative.......................

Total..................................................... $

1,663
23
1,686

5,938
9,238
15,176

7,664
886
8,550

5,162
8,788
13,950

—
—
—

233
692
925

On April 18, 2016, Mr. Jeremy Akel departed the Company as Senior Vice President and Chief Operating Officer. Mr. Akel
and the Company have entered into a Separation Agreement and Release in Full, dated June 7, 2016 to specify the terms of his
departure from the Company, pursuant to which he will receive benefits generally consistent with the termination without cause
terms set forth in the Bristow Group Inc. Management Severance Benefits Plan for U.S. Employees effective June 4, 2014 and
the Amended and Restated Severance Benefits Agreement between Mr. Akel and the Company dated April 20, 2012. Additionally,
on July 1, 2016, Ms. Hilary Ware departed the Company as Senior Vice President and Chief Administration Officer. Ms. Ware and
the Company have entered into a Separation Agreement and Release in Full, dated July 14, 2016 to specify the terms of her
departure from the Company, pursuant to which she will receive benefits generally consistent with the termination without cause
terms set forth in the Bristow Group Inc. Management Severance Benefits Plan for U.S. Employees effective June 4, 2014 and
the Amended and Restated Severance Benefits Agreement between Ms. Ware and the Company dated November 4, 2010. We
recognized compensation expense related to the departure of Mr. Akel and Ms. Ware during fiscal year 2017 included in the table
above.

During fiscal year 2015, we recognized $0.9 million in severance expense included in direct costs and general and
administrative expense in our Americas region, primarily as a result of our planned closure of our Alaska operations. Also, during
fiscal year 2015, we recognized approximately $5.5 million in compensation expense (including expenses recorded for the
acceleration of unvested stock options and restricted stock), included in general and administrative expense, related to the separation
between us and officers. These expenses are not included in the table above.

118

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 10 — STOCKHOLDERS’ INVESTMENT, EARNINGS PER SHARE AND ACCUMULATED OTHER
COMPREHENSIVE INCOME

Stockholders’ Investment

Common Stock — The total number of authorized shares of our Common Stock reserved as of March 31, 2017 was 7,946,425.

These shares are reserved in connection with our stock-based compensation plans.

The following is a summary of changes in outstanding shares of Common Stock for the years ended March 31, 2017 and

2016:

Outstanding as of March 31, 2015..................................................................................
Issuance of restricted stock ........................................................................................
Outstanding as of March 31, 2016..................................................................................
Issuance of restricted stock ........................................................................................
Outstanding as of March 31, 2017..................................................................................

34,838,374
138,369
34,976,743
237,248
35,213,991

Weighted Average
Price Per Share

45.69

17.41

Restrictions on Foreign Ownership of Common Stock — Under the Federal Aviation Act, it is unlawful to operate certain
aircraft for hire within the U.S. unless such aircraft are registered with the Federal Aviation Administration (the “FAA”) and the
FAA has issued an operating certificate to the operator. As a general rule, aircraft may be registered under the Federal Aviation
Act only if the aircraft are owned or controlled by one or more citizens of the U.S. and an operating certificate may be granted
only to a citizen of the U.S. For purposes of these requirements, a corporation is deemed to be a citizen of the U.S. only if, among
other things, at least 75% of its voting interests are owned or controlled by U.S. citizens. If persons other than U.S. citizens should
come to own or control more than 25% of our voting interest or if any other requirements are not met, we have been advised that
our aircraft may be subject to deregistration under the Federal Aviation Act, and we may lose our ability to operate within the U.S.
Deregistration of our aircraft for any reason, including foreign ownership in excess of permitted levels, would have a material
adverse effect on our ability to conduct operations within our North America and Bristow Academy business units. Therefore, our
organizational documents currently provide for the automatic suspension of voting rights of shares of our Common Stock owned
or controlled by non-U.S. citizens, and our right to redeem those shares, to the extent necessary to comply with these requirements.
As of March 31, 2017, approximately 5,203,000 shares of our Common Stock were held by persons with foreign addresses. These
shares represented approximately 15% of our total outstanding common shares as of March 31, 2017. Our foreign ownership may
fluctuate on each trading day because our Common Stock is publicly traded.

Dividends — We paid quarterly dividends of $0.07 per share during each quarter of fiscal year 2017, quarterly dividends of
$0.34 per share during the first, second and third quarters of fiscal year 2016 and $0.07 per share during the fourth quarter of fiscal
year 2016 and quarterly dividends of $0.32 per share during each quarter of fiscal year 2015. On May 18, 2017, our board of
directors approved a dividend of $0.07 per share of Common Stock, payable on June 22, 2017 to shareholders of record on June
7, 2017. For fiscal years 2017, 2016 and 2015, we paid dividends totaling $9.8 million, $38.1 million and $45.1 million, respectively,
to our stockholders. The declaration of future dividends is at the discretion of our board of directors and subject to our results of
operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments.

Share Repurchases — We did not repurchase any shares of Common Stock during fiscal years 2017 and 2016. During fiscal
years 2015, we repurchased 1,160,940 shares of our Common Stock for $80.8 million. As of November 4, 2016, the $150.0 million
of remaining repurchase authority previously authorized by our board of directors expired and was not renewed. In addition,
covenants in our credit agreements restrict our ability to repurchase our Common Stock. Shares outstanding used to calculate
earnings per share during fiscal year 2015 reflect the repurchase of shares when they were delivered.

119

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Earnings per Share

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average
number of shares of Common Stock outstanding during the period. Diluted earnings per common share excludes options to purchase
shares and restricted stock awards, which were outstanding during the period but were anti-dilutive, as follows:

Fiscal Year Ended March 31,

2017

2016

2015

Options:

Outstanding ..................................................................................
Weighted average exercise price..................................................

Restricted stock awards:

Outstanding ..................................................................................
Weighted average price ................................................................

1,815,020
31.98

541,014
26.76

1,194,783
62.11

286,804
37.27

682,800
69.04

—
—

The following table sets forth the computation of basic and diluted earnings per share:

Earnings (in thousands):

Income (loss) available to common stockholders ..................

(170,536) $

(73,940) $

84,300

Fiscal Year Ended March 31,

2017

2016

2015

Weighted average number of common shares outstanding –
basic ....................................................................................
Net effect of dilutive stock options, restricted stock units
and restricted stock awards based on the treasury stock
method..............................................................................
Weighted average number of common shares outstanding –
diluted .................................................................................
Basic earnings (loss) per common share.....................................
Diluted earnings (loss) per common share..................................

Accumulated Other Comprehensive Income

35,044,040

34,893,844

35,193,480

—

335,125

35,044,040

34,893,844

$
$

(4.87) $
(4.87) $

(2.12) $
(2.12) $

35,528,605
2.40
2.37

The following table sets forth the changes in the balances of each component of accumulated other comprehensive income:

Outstanding as of March 31, 2014...............................................................
Other comprehensive income before reclassification................................
Reclassified from accumulated other comprehensive income ..................
Net current period other comprehensive income.......................................
Foreign exchange rate impact....................................................................
Outstanding as of March 31, 2015...............................................................
Other comprehensive income before reclassification................................
Reclassified from accumulated other comprehensive income ..................
Net current period other comprehensive income.......................................
Foreign exchange rate impact....................................................................
Outstanding as of March 31, 2016...............................................................
Other comprehensive income before reclassification................................
Reclassified from accumulated other comprehensive income ..................
Net current period other comprehensive income.......................................
Foreign exchange rate impact....................................................................
Outstanding as of March 31, 2017...............................................................

_______________

Currency
Translation
Adjustments
57,812
$
(76,845)
—
(76,845)
(20,033)
(39,066)
(20,195)
—
(20,195)
(8,104)
(67,365)
(26,947)
—
(26,947)
(55,409)
(149,721) $

Pension Liability
Adjustments (1)

(214,318) $
(42,301)
5,323
(36,978)
20,033
(231,263)
(5,583)
6,288
705
8,104
(222,454)
(17,142)
5,631
(11,511)
55,409
(178,556) $

Total
(156,506)
(119,146)
5,323
(113,823)
—
(270,329)
(25,778)
6,288
(19,490)
—
(289,819)
(44,089)
5,631
(38,458)
—
(328,277)

(1) Reclassification of amounts related to pension liability adjustments were included as a component of net periodic pension cost.

120

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 11 — SEGMENT INFORMATION

We conduct our business in one segment: Industrial Aviation Services. The Industrial Aviation Services segment operations
are conducted primarily through four regions as follows: Europe Caspian, Africa, Americas and Asia Pacific. The Europe Caspian
region comprises all our operations and affiliates in Europe and Central Asia, including Norway, the U.K. and Turkmenistan. The
Africa region comprises all our operations and affiliates on the African continent, including Nigeria, Tanzania and Egypt. The
Americas region comprises all our operations and affiliates in North America and South America, including Brazil, Canada, Guyana,
Suriname, Trinidad and the U.S. Gulf of Mexico. The Asia Pacific region comprises all our operations and affiliates in Australia
and Southeast Asia, including Malaysia and Sakhalin. Additionally, we operate a training unit, Bristow Academy, which is included
in Corporate and other.

The following tables show region information for fiscal years 2017, 2016 and 2015, and as of March 31, 2017 and 2016,
where applicable, reconciled to consolidated totals, and prepared on the same basis as our consolidated financial statements (in
thousands):

Region gross revenue from external clients:

Europe Caspian......................................................................
Africa.....................................................................................
Americas................................................................................
Asia Pacific............................................................................
Corporate and other ...............................................................
Total region gross revenue..................................................

Intra-region gross revenue:

Europe Caspian......................................................................
Africa.....................................................................................
Americas................................................................................
Asia Pacific............................................................................
Corporate and other ...............................................................
Total intra-region gross revenue .........................................

Consolidated gross revenue reconciliation:

Europe Caspian......................................................................
Africa.....................................................................................
Americas................................................................................
Asia Pacific............................................................................
Corporate and other ...............................................................
Intra-region eliminations ............................................................
Total consolidated gross revenue ........................................

Fiscal Year Ended March 31,

2017

2016

2015

734,344
204,522
217,500
233,902
10,234
1,400,502

6,722
—
4,465
1
332
11,520

741,066
204,522
221,965
233,903
10,566
(11,520)
1,400,502

858,144
255,254
283,565
296,840
21,710
1,715,513

5,708
2
7,834
2
2,209
15,755

863,852
255,256
291,399
296,842
23,919
(15,755)
1,715,513

883,992
347,272
346,085
257,351
23,969
1,858,669

7,444
—
6,003
254
3,048
16,749

891,436
347,272
352,088
257,605
27,017
(16,749)
1,858,669

121

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Earnings from unconsolidated affiliates, net of losses – equity

method investments:
Europe Caspian (1) ........................................................................
Americas.......................................................................................
Corporate and other ......................................................................
Total earnings (loss) from unconsolidated affiliates, net of

losses – equity method investments.....................................

Consolidated operating income (loss) reconciliation:

Europe Caspian ............................................................................
Africa............................................................................................
Americas.......................................................................................
Asia Pacific ..................................................................................
Corporate and other ......................................................................
Gain (loss) on disposal of assets ..................................................
Total consolidated operating income (loss).............................

Capital expenditures:

Europe Caspian ............................................................................
Africa............................................................................................
Americas.......................................................................................
Asia Pacific ..................................................................................
Corporate and other (2)..................................................................
Total capital expenditures........................................................

Depreciation and amortization:

Europe Caspian ............................................................................
Africa............................................................................................
Americas.......................................................................................
Asia Pacific ..................................................................................
Corporate and other ......................................................................
Total depreciation and amortization (3) ....................................

Fiscal Year Ended March 31,

2017

2016

2015

273
5,207
(603)

310
(2,117)
—

4,877

(1,807) $

13,840
30,179
4,224
(20,870)
(104,616)
(14,499)
(91,742) $

44,024
4,575
8,275
15,086
63,150
135,110

39,511
16,664
32,727
19,091
10,755
118,748

50,406
19,702
34,463
4,073
(118,796)
(30,693)
(40,845) $

127,072
1,386
92,418
23,745
127,754
372,375

41,509
29,337
36,371
20,526
9,069
136,812

1,107
(4,946)
—

(3,839)

128,543
91,758
79,176
12,455
(130,209)
(35,849)
145,874

192,689
1,330
124,854
23,077
259,884
601,834

37,830
17,333
34,617
23,450
1,063
114,293

122

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Identifiable assets:

Europe Caspian....................................................................................................
Africa...................................................................................................................
Americas..............................................................................................................
Asia Pacific..........................................................................................................
Corporate and other (4) .........................................................................................
Total identifiable assets...................................................................................

1,091,536
325,719
809,071
433,614
453,907
3,113,847

1,067,647
304,081
884,455
426,677
580,085
3,262,945

March 31,

2017

2016

March 31,

2017

2016

Investments in unconsolidated affiliates – equity method investments:

Europe Caspian......................................................................................................
Americas................................................................................................................
Corporate and other ...............................................................................................
Total investments in unconsolidated affiliates – equity method investments.....

257
200,362
3,257
203,876

298
183,990
4,378
188,666

_______________

(1) On November 21, 2014, we sold our 50% interest in HCA. See Note 3 for details on the sale of HCA.

(2)

(3)

(4)

Includes $39.5 million, $84.8 million and $232.3 million of construction in progress payments that were not allocated to business units in fiscal years
2017, 2016 and 2015, respectively.

Includes accelerated depreciation expense of $10.4 million during fiscal year 2017 related to aircraft where management made the decision to exit certain
model types earlier than originally anticipated in our Europe Caspian, Americas and Africa regions of $0.5 million, $3.9 million and $6.0 million,
respectively. We recorded accelerated depreciation expense of $28.7 million during fiscal year 2016 related to aircraft where management made the
decision to exit certain model types earlier than originally anticipated in our Europe Caspian, Americas, Africa and Asia Pacific regions of $0.6 million,
$6.0 million, $16.8 million and $5.3 million, respectively. We recorded accelerated depreciation expense of $10.4 million during fiscal year 2015 related
to aircraft where management made the decision to exit certain model types earlier than originally anticipated in our Americas, Africa and Asia Pacific
regions of $2.5 million, $1.9 million and $6.0 million. For further details, see Note 4.

Includes $199.3 million and $307.4 million of construction in progress within property and equipment on our consolidated balance sheets as of March 31,
2017 and 2016, respectively, which primarily represents progress payments on aircraft and facilities under construction to be delivered in future periods.

We attribute revenue to various countries based on the location where services are actually performed. Long-lived assets
consist primarily of helicopters and fixed wing aircraft and are attributed to various countries based on the physical location of
the asset at a given fiscal year-end. Information by geographic area is as follows (in thousands):

Gross revenue:

United Kingdom ...........................................
Norway .........................................................
Australia........................................................
Nigeria ..........................................................
United States.................................................
Canada ..........................................................
Trinidad.........................................................
Falkland Islands ............................................
Other countries..............................................

Fiscal Year Ended March 31,

2017

2016

2015

510,796
218,848
216,562
204,521
87,234
61,877
57,531
1,935
41,198
1,400,502

587,493
225,807
272,407
246,449
158,901
61,257
55,423
44,724
63,052
1,715,513

616,191
266,186
228,774
327,164
222,661
61,713
59,073
9,172
67,735
1,858,669

123

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Long-lived assets:

United Kingdom................................
Australia ............................................
United States .....................................
Norway..............................................
Nigeria...............................................
Canada...............................................
Trinidad .............................................
Other countries ..................................
Construction in progress primarily

attributable to aircraft (1) ................

March 31,

2017

2016

600,948
317,944
298,804
268,892
228,863
204,842
118,058
16,738

577,810
305,933
292,324
171,948
184,440
180,665
113,768
149,004

199,275
2,254,364

307,360
2,283,252

_______________

(1)

These costs have been disclosed separately as the physical location where the aircraft will ultimately be operated is subject to change.

During fiscal year 2017, we conducted operations in over 10 countries. Due to the nature of our principal assets, aircraft are
regularly and routinely moved between operating areas (both domestic and foreign) to meet changes in market and operating
conditions. During fiscal years 2017, 2016 and 2015, the aggregate activities of one major integrated oil and gas company accounted
for 9%, 11% and 12%, respectively, of our consolidated gross revenue. One other client accounted for 10% or more of our
consolidated gross revenue during fiscal years 2017 and 2016. During fiscal year 2017, our top ten clients accounted for 63% of
consolidated gross revenue.

Note 12 — QUARTERLY FINANCIAL INFORMATION (Unaudited)

Fiscal year 2017
Gross revenue .............................................................
Operating loss (9).........................................................
Net loss attributable to Bristow Group (9)...................
Loss per share:

Basic.........................................................................
Diluted......................................................................

Fiscal year 2016
Gross revenue .............................................................
Operating income (loss) (9) .........................................
Net income (loss) attributable to Bristow Group (9) ...
Earnings (loss) per share:

Basic.........................................................................
Diluted......................................................................

$
$

_______________

June 30

(1)(2)

September 30

(3)(4)

December 31

(5)(6)

March 31

(7)(8)

Fiscal Quarter Ended

(In thousands, except per share amounts)

369,398
(26,235)
(40,772)

357,467
(26,882)
(29,797)

337,443
(19,097)
(21,927)

(1.17) $
(1.17) $

(0.85) $
(0.85) $

(0.62) $
(0.62) $

466,996
4,834
(3,257)

446,911
(29,833)
(47,132)

(0.27) $
(0.27) $

(1.21) $
(1.21) $

419,887
22,077
3,202

0.09
0.09

$
$

336,194
(19,528)
(78,040)

(2.22)
(2.22)

381,719
(37,923)
(25,255)

(0.72)
(0.72)

(1) Operating loss, net loss and diluted loss per share for the fiscal quarter ended June 30, 2016 included: (a) a negative impact of $6.6 million, $4.3 million,
and $0.12, respectively, from organizational restructuring costs to increase efficiency and reduced costs across the organization and (b) a negative impact
of $6.9 million, $4.5 million and $0.13, respectively, due to fleet changes that resulted in additional depreciation expense. Net loss and diluted loss per
share for the fiscal quarter ended June 30, 2016 included a negative impact of $13.2 million and $0.38, respectively, due to tax valuation allowances.

(2) Operating income, net loss and diluted loss per share for the fiscal quarter ended June 30, 2015 included: (a) a negative impact of $8.0 million, $5.6
million and $0.16, respectively, from severance expense related to separation programs designed to increase efficiency and reduce costs across the
organization, (b) a negative impact of $10.5 million, $7.9 million and $0.23 due to fleet changes that resulted in additional depreciation expense and (c)
a negative impact of $5.4 million, $3.5 million and $0.10, respectively, due to impairment charges on inventory. Diluted loss per share for the fiscal
quarter ended June 30, 2015 was impacted by a negative impact of $0.18 due to the accretion of redeemable noncontrolling interests.

124

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(3) Operating loss, net loss and diluted loss per share for the fiscal quarter ended September 30, 2016 included: (a) a negative impact of $10.7 million, $7.3
million, and $0.21, respectively, from organizational restructuring costs to increase efficiency and reduced costs across the organization, (b) a negative
impact of $1.3 million, $0.9 million and $0.02, respectively, due to fleet changes that resulted in additional depreciation expense and (c) a negative impact
of $7.6 million, $5.3 million and $0.15, respectively, due to impairment charges on inventory. Net loss and diluted loss per share for the fiscal quarter
ended September 30, 2016 included a negative impact of $2.5 million and $0.07, respectively, due to tax valuation allowances.

(4) Operating loss, net loss and diluted loss per share for the fiscal quarter ended September 30, 2015 included: (a) a negative impact of $5.7 million, $4.2
million and $0.12, respectively, from severance expense related to separation programs designed to increase efficiency and reduce costs across the
organization, (b) a negative impact of $10.5 million, $7.9 million and $0.22 due to fleet changes that resulted in additional depreciation expense and (c)
a negative impact of $22.3 million, $25.6 million and $0.73, respectively, due to impairment of goodwill related to our Bristow Norway and Bristow
Academy reporting units. Diluted loss per share for the fiscal quarter ended September 30, 2015 was positively impacted by $0.14 due to the accretion
of redeemable noncontrolling interests.

(5) Operating loss, net loss and diluted loss per share for the fiscal quarter ended December 31, 2016 included: (a) a negative impact of $0.8 million, $0.6
million, and $0.02, respectively, from organizational restructuring costs to increase efficiency and reduced costs across the organization, (b) a negative
impact of $1.1 million, $0.8 million and $0.02, respectively, due to fleet changes that resulted in additional depreciation expense and (c) a negative impact
of $8.7 million, $7.9 million and $0.22, respectively, due to impairment of goodwill related to Eastern Airways. Net loss and diluted loss per share for
the fiscal quarter ended December 31, 2016 included a negative impact of $3.7 million and $0.10, respectively, due to tax valuation allowances.

(6) Operating income, net income and diluted earnings per share for the fiscal quarter ended December 31, 2015 included: (a) a decrease of $7.3 million,
$5.4 million and $0.15, respectively, from severance expense related to separation programs designed to increase efficiency and reduce costs across the
organization and (b) a decrease of $5.0 million, $3.8 million and $0.11 due to fleet changes that resulted in additional depreciation expense. Net income
and diluted earnings per share for the fiscal quarter ended December 31, 2015 included a decrease of $9.5 million and $0.27, respectively, due to tax
valuation allowance.

(7) Operating loss, net loss and diluted loss per share for the fiscal quarter ended March 31, 2017 included: (a) a negative impact of $2.8 million, $2.1 million,
and $0.06, respectively, from organizational restructuring costs to increase efficiency and reduced costs across the organization, (b) a negative impact of
$1.1 million, $0.7 million and $0.02, respectively, due to fleet changes that resulted in additional depreciation expense and (c) a positive impact of $5.9
million, $5.9 million and $0.17, respectively, from the reversal of Airnorth contingent consideration. Net loss and diluted loss per share for the fiscal
quarter ended March 31, 2017 included a negative impact of $40.0 million and $1.14, respectively, due to tax items that include a one-time non-cash tax
effect from repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions and the valuation of deferred tax
assets.

(8) Operating loss, net loss and diluted loss per share for the fiscal quarter ended March 31, 2016 included: (a) a negative impact of $5.9 million, $2.3 million
and $0.07, respectively, from organizational restructuring costs to increase efficiency and reduced costs across the organization and (b) a negative impact
of $3.6 million, $3.2 million and $0.09 due to fleet changes that resulted in additional depreciation expense and (c) a negative impact of $27.4 million,
$15.7 million and $0.44, respectively, due to impairment of goodwill related to our Africa region and impairment of goodwill and intangibles for Eastern
Airways. Net loss and diluted loss per share for the fiscal quarter ended March 31, 2016 included a negative impact of $5.1 million and $0.14, respectively,
due to tax valuation allowances.

(9)

The fiscal quarters ended June 30, September 30 and December 31, 2016, and March 31, 2017 included $10.0 million, $2.2 million, $0.9 million and
$1.4 million, respectively, in loss on disposal of assets included in operating loss which also increased (decreased) net loss by $(6.8) million, $(1.5)
million, $1.1 million and $(0.8) million, respectively, and diluted loss per share by $(0.19), $(0.04), $0.03 and $(0.02), respectively. The fiscal quarters
ended June 30, September 30 and December 31, 2015, and March 31, 2016 included $7.7 million, $14.0 million, $2.2 million and $6.8 million, respectively
in loss on disposal of assets included in operating income (loss) which also decreased net income (loss) by $5.9 million, $10.8 million, $1.7 million and
$3.7 million, respectively, and diluted earnings (loss) per share by $0.17, $0.31, $0.05 and $0.10, respectively.

125

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 13 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In connection with the issuance of the 6 ¼% Senior Notes and the 3% Convertible Senior Notes (which we repurchased
during fiscal year 2016), the Guarantor Subsidiaries fully, unconditionally, jointly and severally guaranteed the payment obligations
under these notes. As part of the Eighth Amendment to our Amended and Restated Credit Agreement, Bristow Academy, Inc.
became a Guarantor Subsidiary. Therefore, Bristow Academy, Inc. is presented as a Guarantor Subsidiary for fiscal year 2017 in
the following supplemental consolidating financial statements. Further, Bristow U.S. Leasing LLC, a new U.S. subsidiary of the
Company created in fiscal year 2017, also is presented as Guarantor Subsidiaries for fiscal year 2017 in the following supplemental
consolidating financial statements.

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.

126

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Operations
Fiscal Year Ended March 31, 2017

Revenue:

Gross revenue .............................................................
Intercompany revenue ................................................

Operating expense:

Direct cost and reimbursable expense ........................
Intercompany expenses ..............................................
Depreciation and amortization ...................................
General and administrative.........................................

Loss on impairment....................................................
Gain (loss) on disposal of assets ................................
Earnings from unconsolidated affiliates, net of

losses.......................................................................
Operating loss.............................................................

Interest expense, net ...................................................
Other income (expense), net.......................................

(43,581)
1,257

Loss before (provision) benefit for income taxes.......
Allocation of consolidated income taxes ...................
Net loss.......................................................................
Net (income) loss attributable to noncontrolling

interests ...................................................................
Net loss attributable to Bristow Group.......................

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

Eliminations

Consolidated

— $
—
—

170,306
114,196
284,502

$ 1,230,196
—
1,230,196

— $ 1,400,502
—
1,400,502

(114,196)
(114,196)

77
—
9,513
64,278
73,868

—
—

(28,119)
(101,987)

(144,311)
(26,175)
(170,486)

202,974
—
51,784
23,055
277,813

(4,761)
(15,576)

—
(13,648)

(3,480)
3,883

(13,245)
(10,862)
(24,107)

951,246
114,196
57,451
108,034
1,230,927

— 1,154,297
—
118,748
195,367
1,468,412

(114,196)
—
—
(114,196)

(11,517)
1,077

6,903
(4,268)

(2,858)
(7,781)

(14,907)
4,449
(10,458)

—
—

28,161
28,161

—
—

(16,278)
(14,499)

6,945
(91,742)

(49,919)
(2,641)

28,161
—
28,161

(144,302)
(32,588)
(176,890)

(50)

$ (170,536) $

—
(24,107) $

6,404
(4,054) $

—
28,161

6,354
$ (170,536)

127

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2017

Net loss .........................................................................
Other comprehensive income (loss):

Currency translation adjustments ...............................
Pension liability adjustment .......................................
Total comprehensive income (loss) ..............................

Net (income) loss attributable to noncontrolling

interests ...................................................................

Currency translation adjustments attributable to

noncontrolling interests ..........................................

Total comprehensive income attributable to

noncontrolling interests ..........................................

Total comprehensive income (loss) attributable to

Bristow Group...........................................................

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

$ (170,486) $

(24,107) $

(10,458) $

28,161

$ (176,890)

(In thousands)

—
—
(170,486)

388
—
(23,719)

209,065
(11,511)
187,096

(231,089)
—
(202,928)

(21,636)
(11,511)
(210,037)

(50)

—

(50)

—

6,404

(5,311)

1,093

—

6,354

(5,311)

1,043

$ (170,536) $

(23,719) $

188,189

$ (202,928) $ (208,994)

128

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Balance Sheet
As of March 31, 2017

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

ASSETS

Eliminations

Consolidated

Current assets:

Cash and cash equivalents..........................................
Accounts receivable ...................................................
Inventories ..................................................................
Assets held for sale.....................................................
Prepaid expenses and other current assets..................
Total current assets...................................................

3,382
76,383
—
—
3,237
83,002

Land and buildings .....................................................
Aircraft and equipment...............................................

Less – Accumulated depreciation and amortization.....

Goodwill .......................................................................
Other assets...................................................................
Total assets....................................................................

299
288,235
34,721
30,716
4,501
358,472

104,435
—
37,633

92,975
212,900
90,190
7,530
43,856
447,451

126,296
210,162
39,706

— $

(370,603)
—
—
(10,451)
(381,054)

(2,722,362)
—
(383,980)

96,656
206,915
124,911
38,246
41,143
507,871

—
210,162
—

2,491,631
—
306,641

4,806
151,005
155,811
(29,099)
126,712
—
18,770
$ 3,026,756

62,114
1,199,073
1,261,187
(258,225)
1,002,962
—
2,139
$ 1,505,641

164,528
1,272,623
1,437,151
(312,461)
1,124,690
19,798
100,743
$ 2,068,846

—
231,448
— 2,622,701
— 2,854,149
(599,785)
—
— 2,254,364
19,798
—
121,652
—
$(3,487,396) $ 3,113,847

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ INVESTMENT

Current liabilities:

Accounts payable .......................................................
Accrued liabilities ......................................................
Deferred taxes ............................................................
Short-term borrowings and current maturities of

long-term debt.........................................................
Contingent consideration............................................
Total current liabilities.............................................

Long-term debt, less current maturities ........................
Intercompany notes payable .........................................
Accrued pension liabilities ...........................................
Other liabilities and deferred credits.............................
Deferred taxes...............................................................
Redeemable noncontrolling interests............................
Stockholders’ investment:

Common stock............................................................
Additional paid-in-capital ..........................................
Retained earnings .......................................................
Accumulated other comprehensive income (loss) .....
Treasury shares...........................................................
Total Bristow Group stockholders’ investment............
Noncontrolling interests................................................
Total stockholders’ investment.....................................
Total liabilities, redeemable noncontrolling interests

and stockholders’ investment....................................

231,841
61,791
(1,272)

70,434
17,379
2,102

79,053
—
371,413

763,325
70,689
—
11,597
112,716
—

379
809,995
991,906
78,306
(184,796)
1,695,790
1,226
1,697,016

17,432
—
107,347

284,710
226,091
—
6,229
40,344
—

20,028
29,387
791,117
388
—
840,920
—
840,920

151,382
132,704
—

34,578
—
318,664

102,921
87,200
61,647
11,073
1,813
6,886

$ (355,442) $
(25,628)
—

—
—
(381,070)

98,215
186,246
830

131,063
—
416,354

— 1,150,956
—
61,647
28,899
154,873
6,886

(383,980)
—
—
—
—

115,317
284,048
819,987
255,491
—
1,474,843
3,799
1,478,642

(135,345)
(313,435)
(1,611,104)
(662,462)
—
(2,722,346)
—
(2,722,346)

379
809,995
991,906
(328,277)
(184,796)
1,289,207
5,025
1,294,232

$ 3,026,756

$ 1,505,641

$ 2,068,846

$(3,487,396) $ 3,113,847

129

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended March 31, 2017

Net cash provided by (used in) operating activities......

$ (101,676) $

18,359

(In thousands)
94,019
$

— $

10,702

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

(92,810)
2,125
—
(90,685)

97,778
(10,000)
(886)
(31,812)
—
(2,533)
(2,385)

(16,674)
33,488

(9,523)
27,299
65,676
92,975

—
—
—
—

—
—
—
—
—
—
—

—
—

—
—
—
— $

(135,110)
18,471
290
(116,349)

708,267
(10,000)
(8,010)
(570,328)
(49)
(2,533)
(9,831)

—
107,516

(9,523)
(7,654)
104,310
96,656

Cash flows from investing activities:

Capital expenditures.................................................
Proceeds from asset dispositions .............................
Deposit received on asset held for sale ....................
Net cash used in investing activities.............................

(16,544)
—
—
(16,544)

(25,756)
16,346
290
(9,120)

Cash flows from financing activities:

Proceeds from borrowings .......................................
Payment of contingent consideration.......................
Debt issuance costs ..................................................
Repayment of debt ...................................................
Partial prepayment of put/call obligation.................
Dividends paid to noncontrolling interest................
Dividends paid .........................................................
Increases (decreases) in cash related to

intercompany advances and debt..........................
Net cash provided by (used in) financing activities......
Effect of exchange rate changes on cash and cash

equivalents ................................................................
Net increase (decrease) in cash and cash equivalents...
Cash and cash equivalents at beginning of period........
Cash and cash equivalents at end of period ..................

300,600
—
(2,925)
(533,500)
(49)
—
13,780

308,455
86,361

—
(31,859)
35,241
3,382

309,889
—
(4,199)
(5,016)
—
—
(21,226)

(291,781)
(12,333)

—
(3,094)
3,393
299

130

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Income
Fiscal Year Ended March 31, 2016

Revenue:

Gross revenue .............................................................
Intercompany revenue ................................................

Operating expense:

Loss on impairment....................................................
Loss on disposal of assets...........................................
Earnings from unconsolidated affiliates, net of

losses.......................................................................
Operating income (loss) .............................................

Interest expense, net ...................................................
Other income (expense), net.......................................

Income (loss) before (provision) benefit for income
taxes ........................................................................
Allocation of consolidated income taxes ...................
Net income (loss) .......................................................
Net (income) loss attributable to noncontrolling

interests ...................................................................
Net income (loss) attributable to Bristow Group .......
Accretion of redeemable noncontrolling interests .....
Net income (loss) attributable to common

stockholders ............................................................

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

Eliminations

Consolidated

— $
—
—

229,499
87,673
317,172

$ 1,486,014
—
1,486,014

— $ 1,715,513
—
1,715,513

(87,673)
(87,673)

320
—
7,137
68,787
76,244

192,500
—
60,312
27,440
280,252

1,116,545
87,673
69,363
128,418
1,401,999

— 1,309,365
—
136,812
224,645
1,670,822

(87,673)
—
—
(87,673)

—
—

(7,264)
(21,579)

(47,840)
(9,114)

1,271
(74,973)

(30,167)
400

(104,740)
32,355
(72,385)

(57)
(72,442)
—

—
8,077

(3,859)
499

4,717
(3,546)
1,171

—
1,171
—

220
27,281

(102)
(5,157)

22,022
(26,727)
(4,705)

4,764
59
(1,498)

—
—

(1,230)
(1,230)

—
—

(1,230)
—
(1,230)

—
(1,230)
—

(55,104)
(30,693)

261
(40,845)

(34,128)
(4,258)

(79,231)
2,082
(77,149)

4,707
(72,442)
(1,498)

(72,442) $

1,171

(1,439) $

(1,230) $

(73,940)

131

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2016

Net income (loss)..........................................................
Other comprehensive income (loss):

Currency translation adjustments ...............................
Pension liability adjustment .......................................
Total comprehensive income (loss) ..............................

Net (income) loss attributable to noncontrolling

interests ...................................................................

Currency translation adjustment attributable to

noncontrolling interest ............................................

Total comprehensive income (loss) attributable to

noncontrolling interests.............................................

Total comprehensive income (loss) attributable to

Bristow Group...........................................................
Accretion of redeemable noncontrolling interests .....

Total comprehensive (income) loss attributable to

common stockholders ...............................................

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

(72,385) $

(In thousands)
1,171

(4,705) $

(1,230) $

(77,149)

2
—
(72,383)

—
—
1,171

(186,812)
705
(190,812)

165,206
—
163,976

(21,604)
705
(98,048)

(57)

—

(57)

—

4,764

1,409

6,173

—

4,707

1,409

6,116

(72,440)
—

1,171
—

(184,639)
(1,498)

163,976
—

(91,932)
(1,498)

(72,440) $

1,171

$ (186,137) $

163,976

(93,430)

132

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Balance Sheet
As of March 31, 2016

Current assets:

Intercompany investment..............................................
Investment in unconsolidated affiliates ........................
Intercompany notes receivable .....................................
Property and equipment - at cost: .................................
Land and buildings .....................................................
Aircraft and equipment...............................................

Less – Accumulated depreciation and amortization.....

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

Eliminations

Consolidated

ASSETS

35,241
768,641
—
—
5,048
808,930

2,207,516
—
153,078

3,393
353,729
37,185
38,771
(1,843)
431,235

104,435
—
13,787

65,676
373,963
105,318
5,012
49,978
599,947

145,168
194,952
3,600

— $

$
(1,247,016)
—
—
—
(1,247,016)

(2,457,119)
—
(170,465)

104,310
249,317
142,503
43,783
53,183
593,096

—
194,952
—

4,776
137,751
142,527
(23,556)
118,971
—
48,190
$ 3,336,685

63,976
1,142,829
1,206,805
(238,644)
968,161
—
743
$ 1,518,361

184,346
1,289,997
1,474,343
(278,223)
1,196,120
29,990
112,722
$ 2,282,499

—
253,098
— 2,570,577
— 2,823,675
—
(540,423)
— 2,283,252
29,990
—
161,655
—
$(3,874,600) $ 3,262,945

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ INVESTMENT

Current liabilities:

long-term debt.......................................................
Contingent consideration............................................
Total current liabilities.............................................

208,230
26,886
88

25,678
—
260,882

Long-term debt, less current maturities ........................
Intercompany notes payable .........................................
Accrued pension liabilities ...........................................
Other liabilities and deferred credits.............................
Deferred taxes...............................................................
Redeemable noncontrolling interest .............................
Stockholders’ investment:

and stockholders’ investment....................................

1,047,150
—
—
12,278
147,631
—

377
801,173
1,172,273
78,306
(184,796)
1,867,333
1,411
1,868,744

475,118
31,371
1,914

—
—
508,403

—
108,952
—
6,935
3,670
—

4,996
9,291
876,114
—
—
890,401
—
890,401

296,860
401,031
(121)

$ (883,242) $
(257,683)
—

96,966
201,605
1,881

34,716
29,522
762,008

—
—
(1,140,925)

60,394
29,522
390,368

24,428
81,422
70,107
14,060
20,953
15,473

— 1,071,578
—
70,107
33,273
172,254
15,473

(190,374)
—
—
—
—

130,348
284,048
807,131
63,248
—
1,284,775
9,273
1,294,048

(135,344)
(293,339)
(1,683,245)
(431,373)
—
(2,543,301)
—
(2,543,301)

377
801,173
1,172,273
(289,819)
(184,796)
1,499,208
10,684
1,509,892

$ 3,336,685

$ 1,518,361

$ 2,282,499

$(3,874,600) $ 3,262,945

133

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended March 31, 2016

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

Eliminations

Consolidated

Net cash provided by (used in) operating activities......

(96,497) $

104,989

107,534

— $

116,026

Cash flows from investing activities:

Capital expenditures ...................................................
Proceeds from asset dispositions................................
Investment in unconsolidated affiliates......................
Net cash used in investing activities.............................

Cash flows from financing activities:

Proceeds from borrowings .........................................
Payment of contingent consideration .........................
Debt issuance costs.....................................................
Repayment of debt and debt redemption premiums...
Partial prepayment of put/call obligation ...................
Acquisition of noncontrolling interest........................
Dividends to noncontrolling interest ..........................
Dividends paid............................................................
Increases (decreases) in cash related to

intercompany advances and debt ............................
Net cash provided by (used in) financing activities......
Effect of exchange rate changes on cash and cash

(31,223)
—
—
(31,223)

(239,773)
50,780
—
(188,993)

(101,379)
9,255
(4,410)
(96,534)

908,225
—
(5,139)
(649,650)
(55)
—
—
(38,076)

(52,470)
162,835

—
35,115
126
35,241

—
—
—
—
—
—
—
—

86,513
86,513

—
2,509
884
3,393

20,577
(9,453)
—
(27,353)
—
(7,309)
(153)
—

(34,043)
(57,734)

9,274
(37,460)
103,136
65,676

—
—
—
—

—
—
—
—
—
—
—
—

—
—

—
—
—
— $

(372,375)
60,035
(4,410)
(316,750)

928,802
(9,453)
(5,139)
(677,003)
(55)
(7,309)
(153)
(38,076)

—
191,614

9,274
164
104,146
104,310

134

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Operations
Fiscal Year Ended March 31, 2015

Revenue:

Gross revenue .............................................................
Intercompany revenue ................................................

Operating expense:

Loss on impairment....................................................
Gain (loss) on disposal of assets ................................
Earnings from unconsolidated affiliates, net of

losses.......................................................................
Operating income (loss) .............................................

Interest expense, net ...................................................
Other income (expense), net.......................................

—
—
1,834
76,453
78,287

—
—

44,731
(32,789)

112,336
(2,268)

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

(In thousands)

Eliminations

Consolidated

— $
767
767

300,171
91,476
391,647

$ 1,558,498
—
1,558,498

— $ 1,858,669
—
1,858,669

(92,243)
(92,243)

212,216
—
46,098
39,898
298,212

—
269

—
93,704

1,087,341
92,243
66,361
137,807
1,383,752

(7,167)
(36,118)

(1,815)
129,646

— 1,299,557
—
114,293
254,158
1,668,008

(92,243)
—
—
(92,243)

—
—

(44,687)
(44,687)

(7,167)
(35,849)

(1,771)
145,874

(29,354)
(5,047)

(4,581)
483

(137,109)
(3,262)

—
—

77,279
7,080
84,359
(59)
84,300

89,606
(1,319)
88,287
—
88,287

(10,725)
(28,527)
(39,252)
(4,348)
(43,600) $

(44,687)
—
(44,687)
—
(44,687) $

111,473
(22,766)
88,707
(4,407)
84,300

135

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2015

Net income (loss)..........................................................
Other comprehensive income (loss):

Currency translation adjustments ...............................
Pension liability adjustment .......................................
Total comprehensive income (loss) ..............................

Net income attributable to noncontrolling interests ...
Currency translation adjustments attributable to

noncontrolling interests ..........................................

Total comprehensive income attributable to

noncontrolling interests.............................................

Total comprehensive income (loss) attributable to

Bristow Group...........................................................

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

84,359

88,287

(39,252) $

(44,687) $

88,707

(In thousands)

(25,885)
—
58,474

—
—
88,287

24,852
(36,978)
(51,378)

(70,584)
—
(115,271)

(59)

—

(59)

—

(4,348)

(5,228)

(9,576)

—

(71,617)
(36,978)
(19,888)

(4,407)

(5,228)

(9,635)

58,415

88,287

(60,954) $ (115,271) $

(29,523)

136

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Supplemental Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended March 31, 2015

Net cash provided by (used in) operating activities......

(99,130) $

245,451

(In thousands)
106,459
$

446

253,226

Parent
Company
Only

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Eliminations

Consolidated

Cash flows from investing activities:

Capital expenditures.................................................
Acquisitions, net of cash received ...........................
Proceeds from sale of unconsolidated affiliate ........
Proceeds from asset dispositions .............................
Net cash used in investing activities.............................

Cash flows from financing activities:

Proceeds from borrowings .......................................
Repayment of debt and debt redemption

premiums ..........................................................
Partial prepayment of put/call obligation.................
Acquisition of noncontrolling interest .....................
Repurchase of Common Stock.................................
Dividends paid .........................................................
Increases (decreases) in cash related to

intercompany advances and debt..........................
Issuance of Common Stock .....................................
Tax benefit related to stock-based compensation ....
Net cash provided by (used in) financing activities......
Effect of exchange rate changes on cash and cash

(46,217)
—
—
—
(46,217)

(286,879)
—
—
211,423
(75,456)

453,000

(448,799)
(59)
—
(80,831)
(45,078)

255,878
5,172
1,550
140,833

—

—
—
—
—
—

(169,111)
—
—
(169,111)

—
(4,514)
4,640
126

—
884
—
884

(268,738)
(20,303)
4,185
203,436
(81,420)

1,393

(11,475)
—
(3,170)
—
—

(86,767)
—
—
(100,019)

(22,031)
(97,011)
200,147
103,136

—
—
—
—
—

—

—
—
—
—
—

—
—
—
—

—
446
(446)

— $

(601,834)
(20,303)
4,185
414,859
(203,093)

454,393

(460,274)
(59)
(3,170)
(80,831)
(45,078)

—
5,172
1,550
(128,297)

(22,031)
(100,195)
204,341
104,146

137

Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We carried out an evaluation, under the supervision of and with the participation of our management, including Jonathan
E. Baliff, our Chief Executive Officer (“CEO”), and L. Don Miller, our Chief Financial Officer (“CFO”), of the effectiveness of
the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of March 31, 2017. Based
on that evaluation, our CEO and CFO concluded that such disclosure controls and procedures were effective to ensure that
information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified by the SEC’s rules and forms and such information is accumulated and communicated
to our management as appropriate to allow for timely decisions regarding required disclosure under the Exchange Act.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as
such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions or because the degree of compliance with policies or procedures may deteriorate.

Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an
assessment of the effectiveness of our internal control over financial reporting as of March 31, 2017. The assessment was based
on criteria established in the framework Internal Control – Integrated Framework, issued by the Committee of Sponsoring
Organizations of the Treadway Commission in 2013. Based on this assessment, management concluded that our internal control
over financial reporting was effective as of March 31, 2017.

The effectiveness of the Company’s internal control over financial reporting as of March 31, 2017 has been audited by

KPMG LLP, an independent registered public accounting firm, as stated in its report included herein.

MATERIAL CHANGES IN INTERNAL CONTROL

There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2017 that

have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

138

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
Bristow Group Inc.:

We have audited Bristow Group Inc.’s internal control over financial reporting as of March 31, 2017, based on criteria established
in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Bristow Group Inc.’s management is responsible for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on Bristow Group
Inc.’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control
over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Bristow Group Inc. maintained, in all material respects, effective internal control over financial reporting as of
March 31, 2017, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
consolidated balance sheets of Bristow Group Inc. and subsidiaries as of March 31, 2017 and 2016, and the related consolidated
statements of operations, comprehensive loss, cash flows, and stockholders’ investment and redeemable noncontrolling interests
for each of the years in the three-year period ended March 31, 2017, and our report dated May 23, 2017 expressed an unqualified
opinion on those consolidated financial statements.

/s/ KPMG LLP

Houston, Texas
May 23, 2017

139

Item 9B. Other Information

None.

Item 10. Directors, Executive Officers and Corporate Governance

PART III

The information called for by this item will be contained in our definitive proxy statement to be distributed in connection
with our fiscal year 2017 annual meeting of stockholders under the captions “Corporate Governance,” “Committees of the Board
of Directors,” and “Executive Officers of the Registrant” and is incorporated into this document by reference.

Code of Ethics

We have adopted a code of business conduct and ethics applicable to our directors, officers (including our principal executive
officer, principal financial officer and principal accounting officer) and employees, known as the Code of Business Integrity. The
Code of Business Integrity is available on our website at http://www.bristowgroup.com under “About Us” and “Vision, Mission,
Values” caption. In the event that we amend or waive any of the provisions of the Code of Business Integrity with respect to our
senior officers, we intend to disclose the amendment or waiver on our website or, alternatively, through the filing of a Form 8-K.

Item 11. Executive Compensation

The information called for by this item will be contained in our definitive proxy statement to be distributed in connection
with our fiscal year 2017 annual meeting of stockholders under the caption “Director and Executive Officer Compensation” and,
except as specified in the following sentence, is incorporated into this document by reference. Information in our fiscal year 2017
proxy statement not deemed to be “soliciting material” or “filed” with the SEC under its rules, including the Report of the
Compensation Committee on Executive Compensation and the Report of the Audit Committee is not and shall not be deemed to
be incorporated by reference into this report.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by Item 13 appears in Items 11 and 12 of this report.

Item 14. Principal Accounting Fees and Services

140

Item 15. Exhibits, Financial Statement Schedules

(a) (1) Financial Statements —

PART IV

Report of Independent Registered Public Accounting Firm
Consolidated Statements of Operations for fiscal years 2017, 2016 and 2015
Consolidated Statements of Comprehensive Loss for fiscal years 2017, 2016 and 2015
Consolidated Balance Sheets as of March 31, 2017 and 2016
Consolidated Statements of Cash Flows for fiscal years 2017, 2016 and 2015
Consolidated Statements of Stockholders’ Investment and Redeemable Noncontrolling Interests for
fiscal years 2017, 2016 and 2015
Notes to Consolidated Financial Statements

(a) (2) Financial Statement Schedules

71
72
73
74
75

76
77

All schedules have been omitted because the information required is included in the financial statements or notes or have

been omitted because they are not applicable or not required.

(a) (3) Exhibits

Exhibits

(2) Share and Asset Purchase Agreement, dated as of August 31,
2012, by and among Bristow Group Inc., Kenlor Investments
Ltd., VIH Aviation Group, Ltd., VIH Helicopters USA, Inc.,
CGSCH Enterprises Ltd., Cougar Aviation Ltd., Cougar
Helicopters Inc., BHNA Holdings Inc., Bristow Canada
Holdings Inc., Bristow Canadian Real Estate Company Inc.,
and Kenneth Norie.

(3) Articles of Incorporation and By-law.

(1) Restated Certificate of Incorporation of Bristow Group
Inc. dated August 2, 2007.
(2) Amended and Restated By-laws of Bristow Group Inc.
(4) Instruments defining the rights of security holders, including

indentures.
(1) Registration Rights Agreement dated December 19,
1996, between Bristow Group Inc. and Caledonia Industrial &
Services Limited.
(2) Indenture, dated as of June 17, 2008, among Bristow
Group Inc., the Subsidiary Guarantors named therein, and U.S.
Bank National Association, as Trustee (the “2008 Base
Indenture”).
(3) First Supplemental Indenture, dated as of June 17, 2008,
to the 2008 Base Indenture.
(4) Second Supplemental Indenture, dated as of June 17,
2008, to the 2008 Base Indenture.
(5) Third Supplemental Indenture, dated as of June 17, 2008,
to the 2008 Base Indenture.

(10) (1) Offshore Logistics, Inc. Deferred Compensation Plan. *
(2) Form of Aircraft Lease agreement between CFS Air, LLC
and Air Logistics, L.L.C. (a Schedule I has been filed as part of
this exhibit setting forth certain terms omitted from the Form
of the Aircraft Lease Agreement).
(3) S-92 New Helicopter Sales Agreement dated as of May
19, 2006 between Bristow Group Inc. and Sikorsky Aircraft
Corporation. +

(4) Form of Employee Nonqualified Stock Option Award
Letter under the Bristow Group Inc. 2007 Long Term Incentive
Plan. *

141

Incorporated by Reference to

Registration
or File
Number
001-31617

Form or
Report
8-K

Date
October 4, 2012

Exhibit
Number
2.1

001-31617

10-Q

August 2, 2007

001-31617

8-K

March 10, 2014

3.1

0-5232

10-Q

February 14, 1997

4(3)

001-31617

8-K

June 17, 2008

4.1

001-31617

8-K

June 17, 2008

4.2

001-31617

8-K

October 4, 2012

10.4

001-31617

8-K

October 12, 2012

10.6

001-31617
001-31617

10-K
10-Q

June 8, 2004
February 9, 2006

10(18)
10(2)

001-31617

8-K

August 8, 2006

10(1)

001-31617

8-K

May 24, 2007

10.4

Exhibits

(5) Bristow Group Inc. 2007 Long Term Incentive Plan
(incorporated by reference to Appendix A of the Company’s
Proxy Statement on Form DEF14A filed with the SEC on
June 21, 2013). *
(6) Common Stock Purchase Agreement.
(7) Form of Outside Director Restricted Stock Unit Award
Letter under the Bristow Group Inc. 2007 Long Term Incentive
Plan. *

8) Amendment to Form of Aircraft Lease agreement between
CFS Air, LLC and Air Logistics, L.L.C.

(9) Líder Aviação Holding S.A. Shareholders Agreement dated
May 26, 2009. +

(10) Amendment No. 1 to 2007 Bristow Group Inc. 2007 Long
Term Incentive Plan. *

(11) Form of 2010 Stock Option Award Letter. *
(12) Employment Agreement with Jonathan E. Baliff dated
September 12, 2010. *
(13) Indemnity Agreement with Stephen King.
(14) Form of Outside Director Restricted Cash Award Letter. *
(15) Indemnity Agreement with Mathew Masters.
(16) Amended and Restated Revolving Credit and Term Loan
Agreement, dated November 22, 2010.
(17) First Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of December 22,
2011.
(18) Second Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of October 1, 2012.
(19) Third Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of April 29, 2013.
(20) Fourth Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of March 14, 2014.
(21) Fifth Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of April 17, 2015.
(22) Sixth Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of September 29,
2015.
(23) Seventh Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of November 5,
2015.
(24) Eighth Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of May 23, 2016.

(25) Ninth Amendment to Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of September 16,
2016.
(26) Indemnity Agreement with Lori Gobillot.
(27) Form of 2012 Stock Option Award Letter. *
(28) Form of Unanimous Shareholder Agreement, by and
among Bristow Group Inc., Kenneth Norie, Cougar
Helicopters Inc., and the other parties signatory thereto.
(29) S-92 New Helicopter Sales Agreement dated as of
November 7, 2012, between Bristow Group Inc. and Sikorsky
Aircraft Corporation. +
(30) U.K. Search & Rescue Helicopter Service Contract dated
as of March 26, 2013, between Bristow Helicopters and U.K.
Department for Transport. +
(31) Letter regarding treatment of unvested long-term
incentive plan awards.

142

Incorporated by Reference to

Registration
or File
Number
001-31617

Form or
Report
DEF
14A

Date
June 21, 2013

Exhibit
Number
A

001-31617
001-31617

8-K
8-K

June 17, 2008
August 8, 2008

10.1
10.1

001-31617

10-Q

November 5, 2008

10.2

001-31617

10-Q

August 6, 2009

10.1

001-31617

10-K

May 21, 2010

10(69)

001-31617
001-31617

8-K
8-K

June 15, 2010
September 12, 2010

001-31617
001-31617
001-31617
001-31617

8-K
8-K
8-K
10-Q

February 7, 2011
August 5, 2011
November 1, 2011
February 2, 2011

10.1
10.1

10.1
10.1
10.1
10.2

001-31617

8-K

December 28, 2011

10.1

001-31617

8-K

October 4, 2012

001-31617

8-K

May 2, 2013

001-31617

8-K

March 17, 2014

001-31617

8-K

April 20, 2015

001-31617

8-K

October 2, 2015

10.2

10.1

001-31617

8-K

November 5, 2015

10.2

001-31617

8-K

May 25, 2016

10.1

001-31617

8-K

September 19, 2016

10.1

001-31617
001-31617
001-31617

8-K
8-K
8-K

May 1, 2012
May 25, 2012
October 4, 2012

10.1
10.1
10.7

001-31617

10-Q/
A

10-K/
A

April 8, 2013

10.1

November 7, 2013

10.69

001-31617

10-Q

November 7, 2013

10.1

Incorporated by Reference to

Registration
or File
Number
001-31617

Form or
Report
8-K

Date
February 4, 2014

Exhibit
Number
10.1

001-31617

8-K

February 4, 2014

001-31617

8-K

June 10, 2014

001-31617

8-K

June 10, 2014

001-31617

8-K

June 10, 2014

001-31617
001-31617

8-K
10-K

February 4, 2015
May 20, 2015

001-31617

10-K

May 20, 2015

001-31617

8-K

August 17, 2015

001-31617

8-K

August 17, 2015

001-31617

8-K

August 26, 2015

10.2

10.1

10.2

10.3

10.1
10.70

10.71

10.1

10.2

10.1

001-31617

8-K

November 5, 2015

10.1

001-31617

8-K

May 25, 2016

10.2

001-31617

8-K

September 19, 2016

10.2

001-31617

8-K

June 9, 2016

001-31617

8-K

June 9, 2016

001-31617

8-K

June 9, 2016

001-31617

8-K

June 9, 2016

001-31617

8-K

June 9, 2016

001-31617

8-K

June 9, 2016

001-31617

8-K

June 16, 2016

001-31617
001-31617

8-K
8-K

June 28, 2016
July 15, 2016

001-31617

8-K

August 4, 2016

001-31617

8-K

October 5, 2016

10.1

10.2

10.3

10.4

10.5

10.6

10.1

10.1
10.1

10.1

001-31617

8-K

November 14, 2016

10.1

001-31617

8-K

November 14, 2016

10.2

Exhibits
(32) Retirement and Consulting Agreement, between Bristow
Group Inc. and William E. Chiles, dated January 30, 2014.
(33) Form of 2014 Restricted Stock Unit Retention Award
Letter. *
(34) Summary of Terms and Conditions of Nonqualified Stock
Options Award. *
(35) Summary of Terms and Conditions of Officer Restricted
Stock Unit Award. *
(36) Summary of Terms and Conditions of Officer
Performance Cash Award. *
(37) Indemnity Agreement with David Gompert.
(38) Bristow Group Inc. Management Severance Benefits Plan
for U.S. Employees. *
(39) Bristow Group Inc. Management Severance Benefits Plan
for Non-U.S. Employees. *
(40) Compensation Package for Mr. Miller dated as of August
14, 2015.
(41) Stock Option Retention Award Letter for Mr. Miller dated
August 14, 2015. *
(42) Separation Agreement and Release in Full between
Bristow Group Inc. and John H. Briscoe dated as of August 25,
2015.
(43) Term Loan Credit Agreement, dated as of November 5,
2015.
(44) First Amendment to Term Loan Credit Agreement dated
as of May 23, 2016.
(45) Second Amendment to Term Loan Credit Agreement,
dated as of September 16, 2016.
(46) Terms and Conditions of Nonqualified Stock Option
Award. *
(47) Summary of Terms and Conditions of Officer Restricted
Stock Unit Award. *
(48) Summary of Terms and Conditions of Officer
Performance Cash Award. *
(49) Bristow Group Inc. Fiscal Year 2017 Annual Incentive
Compensation Plan. *
(50) Supplement to Bristow Group Inc. Fiscal Year 2017
Annual Incentive Compensation Plan. *
(51) Separation Agreement and Release in Full between the
Company and K. Jeremy Akel, dated as of June 7, 2016.
(52) Indemnity Agreement with Stephen J. Cannon and
Michael A. Flick.
(53) Indemnity Agreement with A. William Higgins.
(54) Separation Agreement and Release in Full between
Bristow Group Inc. and Hilary S. Ware, dated as of July 14,
2016.
(55) Compensation Package for Mr. Akiri, dated as of August
4, 2016. *
(56) Compensation Package for Mr. Collins, dated as of
October 5, 2016. *
(57) Term Loan Credit Agreement, dated as of November 11,
2016, among Bristow U.S. Leasing LLC, the lenders from time
to time party thereto and Lombard North Central Plc.
(58) Term Loan Credit Agreement, dated as of November 11,
2016, among Bristow Aircraft Leasing Limited, the lenders
from time to time party thereto and Lombard North Central
Plc.

143

Exhibits

(59) Term Loan Credit Agreement, dated as of February 1,
2017, among Bristow U.S. LLC, the several banks, other
financial institutions and other lenders from time to time party
thereto and Macquarie Bank Limited, as administrative agent
and as security agent.

Incorporated by Reference to

Registration
or File
Number
001-31617

Form or
Report
8-K

Date
February 2, 2017

Exhibit
Number
10.1

(21)†
(23)†
(24)†
(31.1)†
(31.2)†
(32.1)†

(32.2)†

Subsidiaries.
Consent of Independent Registered Public Accounting Firm.
Powers of Attorney.
Certification of Chief Executive Officer.
Certification of Chief Financial Officer.
Certification of the Chief Executive Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of the Chief Financial Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS XBRL Instance Document.
101.SCH XBRL Taxonomy Extension Schema Document.
101.DEF XBRL Taxonomy Extension Definition Linkbase Document.
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB XBRL Taxonomy Extension Labels Linkbase Document.
101. PRE XBRL Taxonomy Extension Presentation Linkbase Document.
_______________

*
†
††
+

Compensatory Plan or Arrangement
Furnished herewith
Filed herewith
Confidential information has been omitted from this exhibit and filed separately with the SEC pursuant to a
confidential treatment request under Rule 24(b)-2.

Agreements with respect to certain of the registrant’s long-term debt are not filed as Exhibits hereto inasmuch as the debt
authorized under any such Agreement does not exceed 10% of the registrant’s total assets. The registrant agrees to furnish a
copy of each such Agreement to the SEC upon request.

Item 16. Form 10-K Summary

None.

144

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas on the
23rd day of May, 2017.

BRISTOW GROUP INC.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following

persons on behalf of the registrant and in the listed capacities on the 23rd day of May, 2017.

By: /s/ L. Don Miller

L. Don Miller
Senior Vice President and
Chief Financial Officer

President, Chief Executive Officer
and Director

Senior Vice President and
Chief Financial Officer

Vice President,
Chief Accounting Officer

Director

Chairman of the Board and Director

Director

/s/ Jonathan E. Baliff
Jonathan E. Baliff

/s/ L. Don Miller
L. Don Miller

/s/ Brian J. Allman
Brian J. Allman

*
Thomas N. Amonett

*
Lori A. Gobillot

*
Ian A. Godden

*
David C. Gompert

*
A. William Higgins

*
Stephen A. King

*
Thomas C. Knudson

*
Mathew Masters

*
Biggs C. Porter

*
Bruce H. Stover

/s/ E. Chipman Earle
* By: E. Chipman Earle (Attorney-in-Fact)

145

CORPORATE INFORMATION

Bristow Group Inc. Directors
Thomas N. Amonett
President and CEO
Athlon Solutions, LLC

Jonathan E. Baliff
President and CEO
Bristow Group Inc.

Stephen A. King
Finance Director
Caledonia Investments plc

Thomas C. Knudson
Founder and President
Tom Knudson Interests

Lori A. Gobillot
Founding Partner and Consultant
InVista Advisors LLC

Mathew Masters
Head of Quoted Pool
Caledonia Investments plc

Ian A. Godden
Senior Advisor
Yokogawa Electric Corporation

Biggs C. Porter
Executive VP and CFO
Fluor Corporation

David C. Gompert
Distinguished Visiting Professor for
National Securities Studies
United States Naval Academy

Bruce H. Stover
Former Executive VP, Operations
and Business Development
Endeavour International Corporation

A. Williams Higgins
Former CEO and President
CIRCOR International Inc.

Corporate Office
Bristow Group Inc.
2103 City West Boulevard, 4th Floor
Houston, TX 77042
Telephone: 713.267.7600
Fax: 713.267.7620
bristowgroup.com

Common Stock Information
The company’s NYSE symbol is BRS

Investor Information
Additional information on the company
is available at our web site,
bristowgroup.com

Transfer Agent
Computershare
P.O. Box 30170
College Station, TX 77842
Telephone: 866.265.9770
computershare.com

Auditors
KPMG LLP

Bristow Group Inc.
2103 City West Boulevard, 4th Floor
Houston, TX 77042
Telephone: 713.267.7600
Fax: 713.267.7620
bristowgroup.com