Bristow Group Inc. Transition report pursuant to Rule 13a-10 or 15d-10

Transition report pursuant to Rule 13a-10 or 15d-10

LEASES

LEASES

9 Months Ended

Dec. 31, 2022

The Company leases aircraft, land, hangars, buildings, fuel tanks and tower sites under operating lease agreements.

The majority of the bases from which the Company operates are leased with remaining terms between one and fifty-six years. The Company’s lease agreements are either month-to-month or non-cancelable and generally provide for fixed monthly rent payments. The Company also generally pays for insurance, taxes and maintenance expenses associated with these leases which is excluded from its lease liability and recognized as incurred.

Operating leases as of the periods reflected in the table below were as follows (in thousands):


	December 31, 2022		March 31, 2022
Operating lease right-of-use assets	$	240,977	$	193,505

Current portion of operating lease liabilities	76,261		69,866
Operating lease liabilities	165,955		125,441
Total operating lease liabilities	$	242,216	$	195,307

Operating leases for the periods reflected in the table below were as follows (in thousands, except years and percentages):


	Nine Months Ended December 31, 2022			Twelve Months Ended March 31, 2022			Twelve Months Ended March 31, 2021
Cash paid for operating leases	$	69,669		$	100,339		$	112,590
ROU assets obtained in exchange for lease obligations	$	107,034		$	34,185		$	21,923
Weighted average remaining lease term	5 years			4 years			4 years
Weighted average discount rate	6.09		%	6.13		%	6.23		%

The Company’s leases for aircraft range up to base terms of 180 months with renewal options of up to 60 months. In some cases, the Company’s leases for aircraft include early purchase options and purchase options upon expiration. The leases contain terms customary in transactions of this type, including provisions that allow the lessor to repossess the aircraft and require the Company to pay a stipulated amount if the Company defaults on its obligations under the agreements.

Rent expense for the periods reflected in the table below were as follows (in thousands):


	Nine Months Ended December 31, 2022		Twelve Months Ended March 31, 2022		Twelve Months Ended March 31, 2021
Rent expense under all operating leases	$	74,378	$	106,180	$	120,309
Rent expense under operating leases for aircraft	$	57,976	$	83,788	$	97,919

As of December 31, 2022, aggregate future payments under all non-cancelable operating leases that have initial or remaining terms in excess of one year, including leases for aircraft, are as follows (in thousands):


	Aircraft		Other		Total
Twelve months ended December 31,
2023	$	74,976	$	12,790	$	87,766
2024	59,656		9,202		68,858
2025	35,869		7,717		43,586
2026	21,230		6,125		27,355
2027	16,452		4,023		20,475
Thereafter	19,245		12,015		31,260
	$	227,428	$	51,872	$	279,300