Quarterly report pursuant to Section 13 or 15(d)

SHARE-BASED COMPENSATION AND OTHER EMPLOYEE BENEFIT PLANS

v3.20.2
SHARE-BASED COMPENSATION AND OTHER EMPLOYEE BENEFIT PLANS
 6 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION AND OTHER EMPLOYEE BENEFIT PLANS SHARE-BASED COMPENSATION AND OTHER EMPLOYEE BENEFIT PLANS
Management Incentive Plan
On the Effective Date, the Compensation Committee of Old Bristow’s Board adopted the 2019 Management Incentive Plan (the “MIP”). At the time of its adoption, the MIP served as an equity-based compensation plan for directors, officers and participating employees and other service providers of Old Bristow and its affiliates, pursuant to which Old Bristow was permitted to issue awards covering shares of the Old Bristow Common Stock and Old Bristow Preferred Stock. During the five months ended March 31, 2020 (Successor), Old Bristow awarded 188,210 shares of restricted Old Bristow Preferred Stock, 312,606 shares of restricted Old Bristow Common Stock, 113,081 Old Bristow Preferred Stock options and 265,049 Old Bristow Common Stock options. Upon the closing of the Merger, these awards converted into 656,617 shares of restricted Combined Company Common Stock and 433,283 stock options to purchase Combined Company Common Stock, of which 73,131 shares of restricted Combined Company Common Stock and 48,448 Combined Company Common Stock options vested and 227,884 shares of restricted of Combined Company Common Stock and 151,307 Combined Company Common Stock options forfeited on June 11, 2020 (Successor). Upon the closing of the Merger, 151,768 shares of unvested Combined Company restricted stock awards previously issued under the Era Group Inc. 2012 Share Incentive Plan (the “2012 Incentive Plan”) remained unvested.
Total stock based compensation expense, which includes stock options and restricted stock was $2.0 million and $7.2 million for the three and six months ended September 30, 2020 (Successor), respectively.
On June 17, 2020 (Successor), the Company awarded 150,001 shares of Combined Company performance restricted stock units at an average grant date fair value of $7.73 and 150,001 stock options to purchase Combined Company Common Stock at a grant date fair value of $10.99 to certain senior executives. The performance restricted stock vests on a cliff-basis after three years based on certain stock price performance targets. The following table shows the assumptions used to compute the stock-based compensation expense for stock options granted on June 17, 2020 (Successor):
 
Common Stock Options
Risk free interest rate
0.5
%
Expected life (years)
6.5

Volatility
80.0
%
Weighted average exercise price of options granted
15.76

Weighted average grant-date fair value of options granted
10.99


During the three months ended September 30, 2020, the Combined Company awarded 218,088 shares of restricted stock units at an average grant date fair value $19.41 per share and 11,667 stock options at a grant date fair value of $14.56.
Pension Plans
The components of net periodic pension cost (benefit) other than the service cost component are included in other income (expense), net on the Company’s condensed consolidated statement of operations. The following table provides a detail of the components of net periodic pension cost (benefit) (in thousands):
 
Three Months Ended September 30,
 
 
Six Months Ended September 30,
 
Successor
 
 
Predecessor
 
 
Successor
 
 
Predecessor
 
2020
 
 
2019
 
 
2020
 
 
2019
Service cost for benefits earned during the period
$
304

 
 
$
152

 
 
$
595

 
 
$
311

Interest cost on pension benefit obligation
2,334

 
 
2,799

 
 
4,576

 
 
5,718

Expected return on assets
(3,233
)
 
 
(3,841
)
 
 
(6,340
)
 
 
(7,846
)
Prior service costs
—

 
 
34

 
 
—

 
 
69

Amortization of unrecognized losses
—

 
 
1,976

 
 
—

 
 
4,037

Net periodic pension cost
$
(595
)
 
 
$
1,120

 
 
$
(1,169
)
 
 
$
2,289


The current estimates of the Company’s cash contributions to the Company’s defined benefit pension plans to be paid in fiscal year 2021 are $16.3 million, of which $7.6 million was paid during the six months ended September 30, 2020 (Successor).