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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 ________________________________________
FORM 10-Q
________________________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedDecember 31, 2021
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
001-35701
Bristow Group Inc.
(Exact name of registrant as specified in its charter)
Delaware 72-1455213
(State or Other Jurisdiction of
Incorporation or Organization)
 (IRS Employer
Identification No.)
3151 Briarpark Drive, Suite 700 
Houston, Texas 77042
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code:
(713) 267-7600
          None
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareVTOLNYSE
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      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).    Yes  No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging 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      No  
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes      No  
The total number of shares of common stock, par value $0.01 per share, outstanding as of January 28, 2022 was 28,301,943. The Registrant has no other class of common stock outstanding.



BRISTOW GROUP INC.
INDEX
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 




PART I — FINANCIAL INFORMATION 
Item 1.     Financial Statements.
BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

Three Months Ended December 31,Nine Months Ended December 31,
  2021202020212020
Revenues:
Operating revenues$285,010 $300,275 $863,480 $857,505 
Reimbursable revenues10,609 9,622 34,324 27,225 
Total revenues295,619 309,897 897,804 884,730 
Costs and expenses:
Operating expenses221,875 227,031 655,146 632,868 
Reimbursable expenses10,561 9,525 33,863 27,092 
General and administrative expenses40,966 37,599 117,419 112,604 
Merger-related costs34 4,450 2,416 26,367 
Restructuring costs17 1,547 985 17,885 
Depreciation and amortization17,223 17,931 58,062 52,824 
Total costs and expenses290,676 298,083 867,891 869,640 
Loss on impairment (53,249)(24,835)(90,078)
Gain (loss) on disposal of assets727 1,951 1,388 (1,000)
Earnings (losses) from unconsolidated affiliates, net(860)896 (1,413)866 
Operating income (loss)4,810 (38,588)5,053 (75,122)
Interest income36 359 144 1,055 
Interest expense(10,230)(13,203)(31,280)(39,152)
Loss on extinguishment of debt (229)(124)(844)
Reorganization items, net(29)1,984 (578)1,984 
Loss on sale of subsidiaries  (2,002) 
Change in fair value of preferred stock derivative liability   15,416 
Gain on bargain purchase   81,093 
Other, net3,969 5,864 25,483 20,457 
Total other income (expense), net(6,254)(5,225)(8,357)80,009 
Income (loss) before income taxes(1,444)(43,813)(3,304)4,887 
Income tax benefit (expense)1,608 (13,447)(8,034)(18,736)
Net income (loss)164 (57,260)(11,338)(13,849)
Net (income) loss attributable to noncontrolling interests(220)139 (141)343 
Net loss attributable to Bristow Group Inc.$(56)$(57,121)$(11,479)$(13,506)
Income (loss) per common share(1):
Basic$ $(1.97)$(0.40)$5.15 
Diluted$ $(1.97)$(0.40)$3.58 
Weighted average common shares outstanding(1):
Basic28,214,650 28,944,908 28,633,875 23,178,914 
Diluted28,214,650 28,944,908 28,633,875 32,375,532 
(1) See Note 9 to the condensed consolidated financial statements for details on prior year income (loss) per share and weighted average common shares outstanding.

The accompanying notes are an integral part of these condensed consolidated financial statements.
1


BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited, in thousands)

Three Months Ended December 31,Nine Months Ended December 31,
 2021202020212020
Net income (loss)$164 $(57,260)$(11,338)$(13,849)
Other comprehensive income (loss):
Currency translation adjustments2,351 27,705 (12,059)46,190 
Pension liability adjustment, net(162) 711  
Unrealized gain (loss) on cash flow hedges, net(430)(1,232)2,121 (3,396)
Total comprehensive income (loss)1,923 (30,787)(20,565)28,945 
Net comprehensive (income) loss attributable to noncontrolling interests(220)139 (141)343 
Total comprehensive income (loss) attributable to Bristow Group Inc.$1,703 $(30,648)$(20,706)$29,288 





































The accompanying notes are an integral part of these condensed consolidated financial statements.
2



BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share amounts)

December 31,March 31,
20212021
ASSETS
Current assets:
Cash and cash equivalents
$273,967 $228,010 
Restricted cash
3,495 3,069 
Accounts receivable, net of allowance for doubtful accounts of $2,049 and $2,300 as of December 31 and March 31, 2021, respectively
177,102 215,620 
Inventories
88,487 92,180 
Assets held for sale
5,432 14,750 
Prepaid expenses and other current assets
27,981 32,119 
Total current assets
576,464 585,748 
Property and equipment1,086,177 1,090,094 
Accumulated depreciation and amortization(133,595)(85,535)
Property and equipment, net952,582 1,004,559 
Investment in unconsolidated affiliates18,596 37,530 
Right-of-use assets213,840 246,667 
Other assets103,307 117,766 
Total assets
$1,864,789 $1,992,270 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$60,305 $69,542 
Accrued wages, benefits and related taxes
47,535 58,595 
Income taxes payable and other accrued taxes17,594 19,972 
Deferred revenue
13,417 13,598 
Accrued maintenance and repairs
35,249 26,907 
Current portion of operating lease liabilities
72,705 77,909 
Accrued interest and other accrued liabilities
28,497 22,632 
Short-term borrowings and current maturities of long-term debt
13,125 15,965 
Total current liabilities
288,427 305,120 
Long-term debt, less current maturities517,687 527,528 
Accrued pension liabilities28,891 44,150 
Other liabilities and deferred credits4,748 6,681 
Deferred taxes39,883 42,430 
Long-term operating lease liabilities140,841 167,718 
Total liabilities
$1,020,477 $1,093,627 
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests
 1,572 
Stockholders’ equity:
Common stock, $0.01 par value, 110,000,000 authorized; 28,301,943 and 29,694,071 outstanding as of December 31 and March 31, 2021, respectively
303 303 
Additional paid-in capital
696,092 687,715 
Retained earnings
215,533 227,011 
Treasury shares, at cost; 1,967,769 and 466,700 shares as of December 31 and March 31, 2021, respectively
(51,083)(10,501)
Accumulated other comprehensive loss(16,142)(6,915)
Total Bristow Group Inc. stockholders’ equity844,703 897,613 
Noncontrolling interests(391)(542)
Total stockholders’ equity844,312 897,071 
Total liabilities and stockholders’ equity$1,864,789 $1,992,270 





The accompanying notes are an integral part of these condensed consolidated financial statements.

3


BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Nine Months Ended December 31,
 20212020
Cash flows from operating activities:
Net loss$(11,338)$(13,849)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
67,249 68,325 
Deferred income taxes
(1,672)8,312 
Loss from extinguishment of debt
124 844 
  Bad debt expense309  
 Amortization of deferred financing fees 978  
Discount amortization on long-term debt
5,858 12,823 
Reorganization items, net
578 (1,984)
Loss (gain) on disposal of assets(1,388)1,000 
Loss on impairment
24,835 90,078 
Loss on sale of subsidiaries
2,002  
Gain on bargain purchase
 (81,093)
Change in fair value of preferred stock derivative liability
 (15,416)
Stock-based compensation
8,377 9,377 
Equity in earnings from unconsolidated affiliates less than dividends received1,413 2,700 
Increase (decrease) in cash resulting from changes in:
Accounts receivable
37,226 24,942 
Inventory, prepaid expenses and other assets
3,515 (3,060)
Accounts payable, accrued expenses and other liabilities
(19,789)(42,930)
Net cash provided by operating activities118,277 60,069 
Cash flows from investing activities:
Capital expenditures
(23,226)(11,232)
Proceeds from asset dispositions
14,549 66,501 
Cash transferred in sale of subsidiaries, net of cash received
(851) 
Increase in cash from Era merger
 120,236 
Net cash provided by (used in) investing activities(9,528)175,505 
Cash flows from financing activities:
Debt issuance costs
(2,988) 
Repayment of debt and debt redemption premiums
(16,022)(126,231)
Purchase of treasury shares
(40,582)(10,007)
Old Bristow share repurchases
 (4,807)
Net cash used in financing activities(59,592)(141,045)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(2,774)4,183 
Net increase in cash, cash equivalents and restricted cash46,383 98,712 
Cash, cash equivalents and restricted cash at beginning of period231,079 199,121 
Cash, cash equivalents and restricted cash at end of period$277,462 $297,833 
Cash paid during the period for:
Interest
$17,296 $25,641 
Income taxes$10,451 $13,029 


The accompanying notes are an integral part of these condensed consolidated financial statements.
4


BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)
(In thousands, except share amounts)

 Total Bristow Group Inc. Stockholders’ Equity  
 Redeemable Noncontrolling InterestsCommon
Stock
Common
Stock
(Shares)
Additional
Paid-in
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Stockholders’
Equity
March 31, 2021$1,572 $303 29,694,071 $687,715 $227,011 $(10,501)$(6,915)$(542)$897,071 
Share award amortization— — 48,851 2,326 — — — — 2,326 
Share repurchases— — (936,567)— — (25,199)— — (25,199)
Currency translation adjustments— — — — — — — 5 5 
Net loss— — — — (14,197)— — (14)(14,211)
Sale of noncontrolling interest(1,572)— — — — — — — — 
Other comprehensive income— — — — — — 2,166 — 2,166 
June 30, 2021$ $303 28,806,355 $690,041 $212,814 $(35,700)$(4,749)$(551)$862,158 
Share award amortization— — 60,367 2,661 — — — — 2,661 
Share repurchases— — (564,502)— — (15,383)— — (15,383)
Currency translation adjustments— — — — — — — 5 5 
Net income (loss)— — — — 2,775 — — (65)2,710 
Other comprehensive loss— — — — — — (13,152)— (13,152)
September 30, 2021$ $303 28,302,220 $692,702 $215,589 $(51,083)$(17,901)$(611)$838,999 
Share award amortization— — (277)3,390 — — — — 3,390 
Net income (loss)— — — — (56)— — 220 164 
Other comprehensive income— — — — — — 1,759 — 1,759 
December 31, 2021$ $303 $28,301,943 $696,092 $215,533 $(51,083)$(16,142)$(391)$844,312 





The accompanying notes are an integral part of these condensed consolidated financial statements.



5


BRISTOW GROUP INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)
(In thousands, except share amounts)

 Total Bristow Group Inc. Stockholders’ Investment  
 Redeemable Noncontrolling InterestsMezzanine Equity Preferred StockCommon
Stock
Common
Stock
(Shares)
(1)
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury StockNoncontrolling
Interests
Total
Stockholders’
Investment
March 31, 2020$ $149,785 $1 11,235,566 $295,897 $139,228 $(8,641)$ $(269)$426,216 
Share repurchases— (2,151)— (142,721)— 1,263 — — — 1,263 
Preferred stock share conversion— (146,448)4 34,836,688 270,678 142,614 — — — 413,296 
Elimination of Old Bristow stock— — (5)(45,929,533)5 — — — —  
Exchange of common stock— — 231 23,026,894 (231)— — — —  
Era purchase price— — 72 7,175,029 108,268 — — — — 108,340 
Preferred stock compensation activity and conversion— (1,186)— — 6,370 — — — — 6,370 
Purchase of Company common stock (tax withholding)— — — (42,199)— — — — — — 
Currency translation adjustments— — — — — — — — 13 13 
Net income (loss)— — — — — 71,477 — — (73)71,404 
Other comprehensive income— — — — — — 2,278 — — 2,278 
June 30, 2020  303 30,159,724 680,987 354,582 (6,363) (329)1,029,180 
Share award amortization— — — 2,008 — — — — 2,008 
Purchase of treasury shares— — — (345,757)— — — (7,579)— (7,579)
Era purchase price adjustment1,501 — — (233)395 — — — — 395 
Currency translation adjustments— — — — — — — — (14)(14)
Net loss(18)— — — — (27,861)— — (113)(27,974)
Other comprehensive income— — — — — — 14,043 — — 14,043 
September 30, 20201,483  303 29,813,734 683,390 326,721 7,680 (7,579)(456)1,010,059 
Share award amortization— — — — 2,185 — — — — 2,185 
Purchase of treasury shares— — — (103,258)— — — (2,428)— (2,428)
Purchase price adjustment— — — — — — — — — — 
Currency translation adjustments— — — — — — — — (8)(8)
Net loss(30)— — — — (57,121)— — (109)(57,230)
Other comprehensive income— — — — — — 26,473 — — 26,473 
December 31, 2020$1,453 $ $303 $29,710,476 $685,575 $269,600 $34,153 $(10,007)$(573)$979,051 
_______________________
(1) Certain shares were reclassified out of common stock issued and into un-issued.

The accompanying notes are an integral part of these condensed consolidated financial statements.
6


BRISTOW GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1 — BASIS OF PRESENTATION, CONSOLIDATION AND ACCOUNTING POLICIES
Basis of Presentation
The condensed consolidated financial statements include the accounts of Bristow Group Inc. and its consolidated entities. On January 23, 2020, Era Group Inc. (“Era”), Ruby Redux Merger Sub, Inc., a wholly owned subsidiary of Era (“Merger Sub”) and Bristow Group Inc. (“Old Bristow”) entered into an Agreement and Plan of Merger, as amended on April 22, 2020 (the “Merger Agreement”). On June 11, 2020, the merger (the “Merger”) contemplated by the Merger Agreement was consummated and Merger Sub merged with and into Old Bristow, with Old Bristow continuing as the surviving corporation and as a direct wholly owned subsidiary of Era. Following the Merger, Era changed its name to Bristow Group Inc., and Old Bristow changed its name to Bristow Holdings U.S. Inc. Unless the context otherwise indicates, in this Quarterly Report on Form 10-Q, references to:
the “Company”, “Combined Company,” “Bristow”,  “we”, “us” and “our” refer to the entity currently known as Bristow Group Inc. and formerly known as Era Group Inc., together with all of its current subsidiaries;
“Old Bristow” refers to the entity formerly known as Bristow Group Inc. and now known as Bristow Holdings U.S. Inc., together with its subsidiaries prior to the consummation of the Merger; and
“Era” refers to Era Group Inc. (currently known as Bristow Group Inc., the parent of the Combined Company) and its subsidiaries prior to consummation of the Merger.
Pursuant to the United States (“U.S.”) generally accepted accounting principles (“GAAP”), the Merger was accounted for as an acquisition by Old Bristow of Era even though Era was the legal acquirer and remained the ultimate parent of the Combined Company. As a result, upon the closing of the Merger, Old Bristow’s historical financial statements replaced Era’s historical financial statements for all periods prior to the completion of the Merger, and the financial condition, results of operations, comprehensive income and cash flows of Era have been included in those financial statements since June 12, 2020. Any reference to comparative period disclosures in the Quarterly Report on Form 10-Q refers to Old Bristow.
The Company’s fiscal year ends March 31, and fiscal years are referenced based on the end of such period. Therefore, the fiscal year ending March 31, 2022 is referred to as “fiscal year 2022”.
The condensed consolidated financial information for the three and nine months ended December 31, 2021 and December 31, 2020 has been prepared by the Company in accordance with GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information reporting on Quarterly Form 10-Q and Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from that which would appear in the annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021, filed with the SEC on May 27, 2021.
The preparation of these financial statements and accompanying footnotes requires the Company to make estimates and assumptions; however, they include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair presentation of the condensed consolidated balance sheet, the condensed consolidated statements of operations and comprehensive loss, the condensed consolidated statements of cash flows and the condensed consolidated statements of changes in stockholders equity.  Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the entire fiscal year. 
The condensed consolidated financial information found on this Quarterly Form 10-Q has not been audited by the Company’s independent registered public accounting firm.
7


BRISTOW GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
Basis of Consolidation
The consolidated financial statements include the accounts of Bristow Group Inc., its wholly and majority-owned subsidiaries and entities that meet the criteria of variable interest entities (“VIEs”) of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation.
Summary of Significant Accounting Policies and Other Accounting Considerations
Reclassifications — Certain amounts reported for prior periods in the consolidated financial statements have been reclassified to conform with the current period’s presentation.
Sale of Subsidiary — During the nine months ended December 31, 2021, the Company sold its 75% interest in Hauser Investments Limited (“Hauser”), which owns 100% of Sicher Helicopters SAS (“Sicher”), a provider of helicopter services to Colombia’s oil and gas market. The sale resulted in a $2.0 million loss included in sale of subsidiaries on the condensed consolidated statement of operations.
Investment in Unconsolidated Affiliates — The Company has a 25% economic interest in Petroleum Air Services (“PAS”), an Egyptian corporation that provides helicopter and fixed wing transportation to the offshore energy industry and other general aviation services in Egypt. During the nine months ended December 31, 2021, upon evaluating its investment in PAS, the Company identified an indicator for impairment due to a decline in PAS’s performance. As a result, the Company performed a fair valuation of its investment in PAS using a market approach that relied on significant Level III inputs due to the nature of unobservable inputs that required significant judgment and assumptions. The market approach utilized two methods, each yielding similar valuation outcomes through the use of a multiple relevant to each method, derived from select guideline public companies, and an expected dividend rate or earnings of PAS. This resulted in a $16.0 million loss on impairment recorded during the nine months ended December 31, 2021. As of December 31, 2021, the investment in PAS was $17.0 million and is included on the condensed consolidated balance sheets in investment in unconsolidated affiliates. PAS is a cost method investment.
Recent Accounting Pronouncements
The Company considers 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 the Company’s consolidated financial position or results of operations.
Adopted
In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “Reference Rate Reform” (Topic 848). The guidance is intended to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The standard was effective beginning in fiscal year 2022 for the Company. Adoption of this accounting standard had no material impact to the Company’s financial statements.
In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740), new guidance to simplify the accounting for income taxes, which eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This standard also included guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The standard was effective beginning in fiscal year 2022 for the Company. Adoption of this accounting standard had no material impact to the Company’s financial statements.
Not Yet Adopted
In May 2021, the FASB issued ASU Update No. 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The purpose of this update is to clarify and reduce diversity in practice for
8


BRISTOW GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
the accounting of certain modifications or exchanges of equity written call options. Under the guidance, an issuer determines the accounting for the modification or exchange based on whether the transaction was executed to issue equity, to issue or modify debt, or for other reasons. The standard will be effective for the Company beginning in fiscal year 2023 and early adoption is permitted. The Company is currently evaluating the effect this accounting guidance will have on its consolidated financial statements.
Note 2 — BUSINESS COMBINATIONS
Era Group Inc.
On June 11, 2020, the combination of Old Bristow with Era was successfully completed in an all-stock transaction with Era having issued shares of common stock (“Combined Company Common Stock”) to Old Bristow’s stockholders in exchange for such holders shares of common stock in Old Bristow. The transaction was accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). In the Merger, Old Bristow merged with and into Merger Sub, a subsidiary of Era, with Old Bristow remaining as the surviving company and as a subsidiary of Era, the ultimate parent of the Combined Company. Era was one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the U.S., primarily servicing offshore energy installations. The transaction was structured as an all-stock, reverse-triangular merger, whereby Era issued shares of Combined Company Common Stock to Old Bristow stockholders, allowing it to qualify as a tax free reorganization for U.S. federal income tax purposes. Following the Merger, Era changed its name to Bristow Group Inc., and the Combined Company Common Stock continued to trade on the NYSE under the new ticker symbol VTOL.
While Era was the legal acquirer in the Merger, Old Bristow was determined to be the accounting acquirer, based upon the terms of the Merger and other considerations including that: (i) immediately following completion of the Merger, Old Bristow stockholders owned approximately 77% of the outstanding shares of Combined Company Common Stock and pre-Merger holders of Era common stock (“Era Common Stockholders”) owned approximately 23% of the outstanding shares of Combined Company Common Stock and (ii) the board of directors of the Company consisted of eight directors, including six Old Bristow designees. The Merger was accounted for under the acquisition method of accounting under ASC 805, Business Combinations. The acquisition method of accounting requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The Company completed its assessment of the fair value of assets acquired and liabilities assumed within the required one-year period from the date of acquisition. Management recorded the acquired aircraft at an aggregate fair value of $179.9 million. Based upon the illiquid state of the secondary market, relevant and reliable market data for the Era fleet was not readily available. As a result, the Company derived the fair value of the Era fleet of aircraft from the estimated enterprise value of Era, using the discounted cash flow method of the income approach. The estimated enterprise value of Era was made using principal assumptions such as forecasted revenues and discount rate. All non-aircraft acquired assets and assumed liabilities were valued at fair value, which based upon their nature were more readily determinable. After allocating fair values to all the non-aircraft acquired assets and assumed liabilities, the remaining value was attributed to the aircraft.
9


BRISTOW GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
The acquisition date fair value of the consideration transferred consisted of the following (in thousands):
Fair value of Combined Company Common Stock issued (1)
$106,440 
Fair value of accelerated stock awards (2)
2,067 
Fair value of exchanged stock awards (3)
228 
Total consideration transferred$108,735 
Fair value of redeemable noncontrolling interest1,501 
Total fair value of Era$110,236 
___________________________ 
(1)Represents the fair value of Combined Company Common Stock retained by Era Common Stockholders based on the closing market price of Era shares on June 11, 2020, the acquisition date.
(2)Represents the fair value of restricted share awards of Combined Company Common Stock held by Era employees that were accelerated upon consummation of the Merger.
(3)Represents the fair value of restricted share awards of Combined Company Common Stock held by Era employees relating to the pre-Merger vesting period.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition, June 11, 2020 (in thousands):
Assets acquired:
Cash and cash equivalents$120,236 
Accounts receivable from non-affiliates35,079 
Prepaid expenses and other current assets17,598 
Inventories8,826 
Property and equipment223,256 
Right-of-use assets8,395 
Other assets 14,792 
Total assets acquired$428,182 
Liabilities assumed:
Accounts payable$9,686 
Accrued wages, benefits and related taxes8,319 
Income taxes payable1,791 
Deferred revenue236 
Current portion of operating lease liabilities1,711 
Other accrued liabilities18,474 
Short-term borrowings and current maturities of long-term debt17,485 
Long-term debt, less current maturities136,704 
Other liabilities and deferred credits1,404 
Deferred taxes34,198 
Long-term operating lease liabilities6,845 
Total liabilities and redeemable noncontrolling interest assumed$236,853 
Net assets acquired$191,329 
The Merger initially resulted in a gain on bargain purchase due to the estimated fair value of the identifiable net assets acquired exceeding the purchase consideration transferred by $75.4 million; after further analysis, during the second quarter of fiscal year 2021, the Company recorded measurement period adjustments to its preliminary estimates due to additional information received primarily related to aircraft, redeemable noncontrolling interest and income taxes, resulting in an increase in bargain purchase gain of $5.7 million, for a total of $81.1 million shown as a gain on bargain purchase on the consolidated statements of operations, for the fiscal year ended March 31, 2021. The bargain purchase was a result of a combination of
10


BRISTOW GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Unaudited)
factors including depressed oil and gas prices and market volatility linked to the COVID-19 pandemic between the initial announcement and consummation of the Merger.
Specifically, the Era share price declined from $8.59 to $5.16 between the last trading day prior to the announcement of the Merger and the date the Merger closed. The aggregate Merger consideration was based on an exchange ratio that was fixed and did not fluctuate in the event that the value of Old Bristow’s common stock increased or Era’s common stock decreased, between the date of entry into the Merger agreement and consummation of the Merger.
The following unaudited supplemental pro forma combined financial information presents the Company’s results of operations for the three and nine months ended December 31, 2020, as though the Merger had occurred on November 1, 2019, the effective date of Old Bristow’s emer