Bristow Group Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

REVENUES

REVENUES

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

The Company derives its revenues primarily from oil and gas flight services, emergency response services and leasing activities. Dry-leasing revenues are recognized in accordance with ASC 842. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The following table presents the Company’s operating revenues disaggregated by geographical region in which services are provided:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating revenues:
U.S.	$	36,694	$	40,312	$	70,907	$	79,444
International	14,499		14,160		28,115		29,777
Total operating revenues	$	51,193	$	54,472	$	99,022	$	109,221

The following table presents the Company’s total revenues earned by service line:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues:
Oil and gas flight services:
U.S.	$	33,270	$	37,771	$	65,736	$	74,305
International	14,499		14,160		28,115		29,777
Total oil and gas	47,769		51,931		93,851		104,082
Emergency response services	3,424		2,541		5,171		5,139
Total operating revenues	$	51,193	$	54,472	$	99,022	$	109,221
Dry-leasing revenues:
U.S.	882		1,271		1,333		1,844
International	3,405		1,985		6,418		3,985
Total revenues	$	55,480	$	57,728	$	106,773	$	115,050

The Company determines revenue recognition by applying the following steps:


1.	Identify the contract with a customer;


2.	Identify the performance obligations in the contract;


3.	Determine the transaction price;


4.	Allocate the transaction price to the performance obligations; and


5.	Recognize revenue as the performance obligations are satisfied.

The Company earns the majority of its revenue through master service agreements or subscription agreements, which typically include a fixed monthly or daily fee, incremental fees based on hours flown and fees for ancillary items such as fuel, security, charter services, etc. The Company’s arrangements to serve its customers represent a promise to stand ready to provide services at the customer’s discretion.

The Company recognizes revenue for flight services and emergency response services with the passing of each day as the Company has the right to consideration from its customers in an amount that corresponds directly with the value to the customer of performance completed to date. The Company typically invoices customers on a monthly basis for revenues earned during the prior month, with payment terms of 30 days. The Company’s customer arrangements do not contain any significant financing component for customers. Amounts for taxes collected from customers and remitted to governmental authorities are reported on a net basis.