Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

v3.20.2
REVENUE RECOGNITION
 6 Months Ended
Sep. 30, 2020
Revenue Recognition [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNTION
Revenue Recognition
The Company derives its revenues primarily from oil and gas flight services and search and rescue services. A majority of the Company’s revenue is generated through two types of contracts: helicopter services and fixed wing services. Revenue is recognized when control of the identified distinct goods or services has been transferred to the customer, the transaction price is determined and allocated to the satisfied performance obligations and the Company has determined that collection has occurred or is probable of occurring.
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.
Operating revenue from the Company’s oil and gas line of service is derived mainly from fixed-term contracts with its customers. Fixed-term contracts typically have original terms of one to five years, subject to provisions permitting early termination by customers. Customers are typically invoiced on a monthly basis with payment terms of 30-60 days.
The following table shows the total revenue related to third party customers (in thousands):
 
Three Months Ended September 30,
 
 
Six Months Ended September 30,
 
Successor
 
 
Predecessor
 
 
Successor
 
 
Predecessor
 
2020
 
 
2019
 
 
2020
 
 
2019
Revenue:
 
 
 
 
 
 
 
 
 
 
Operating revenue from non-affiliates
$
282,060

 
 
$
290,939

 
 
$
528,189

 
 
$
594,672

Operating revenue from affiliates
3,267

 
 
5,365

 
 
7,861

 
 
9,840

Reimbursable revenue from non-affiliates
8,918

 
 
13,536

 
 
17,603

 
 
30,136

Revenue from Contracts with Customers
294,245

 
 
309,840

 
 
553,653

 
 
634,648

Other revenue from non-affiliates
447

 
 
409

 
 
867

 
 
806

Other revenue from affiliates
9,948

 
 
7,971

 
 
20,313

 
 
15,942

Total Revenue
$
304,640

 
 
$
318,220

 
 
$
574,833

 
 
$
651,396


Contract Assets, Liabilities and Receivables
The Company generally satisfies performance of contract obligations by providing helicopter and fixed wing services to its customers in exchange for consideration. The timing of performance may differ from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. A contract asset exists when the Company has a contract with a customer for which revenue has been recognized (i.e., services have been performed), but customer payment is contingent on a future event (i.e., satisfaction of additional performance obligations). These contract assets are transferred to receivables when the right to consideration becomes unconditional. Contract liabilities relate to deferred revenue in which advance consideration is received from customers for contracts where revenue is recognized based on future performance of services.
As of September 30 and March 31, 2020 (Successor), receivables related to services performed under contracts with customers were $173.7 million and $148.3 million, respectively. During the six months ended September 30, 2020 (Successor), the Company recognized $2.2 million of revenue from outstanding contract liabilities. Contract liabilities related to services performed under contracts with customers were $7.9 million and $4.9 million as of September 30, 2020 (Successor) and March 31, 2020 (Predecessor), respectively. Contract liabilities are primarily generated by fixed wing services where customers pay for tickets in advance of receiving the Company’s services and advanced payments from helicopter services customers. There were no contract assets as of September 30 and March 31, 2020 (Successor).
There was $0.6 million and $1.0 million in revenues recognized from satisfied performance obligations related to prior periods (for example, due to changes in transaction price) for the three months and six months ended September 30, 2020 (Successor), respectively.
Remaining Performance Obligations
Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period and (2) the expected timing to recognize this revenue (in thousands):
 
Remaining Performance Obligations (Successor)
 
Six Months Ending March 31, 2021
 
Fiscal Year Ending March 31,
 
Total
 
 
2022
 
2023
 
2024
 
2025 and thereafter
 
Outstanding Service Revenue:
 
 
 
 
 
 
 
 
 
 
 
Helicopter contracts
$
223,773

 
$
243,575

 
$
198,487

 
$
171,741

 
271,155

 
$
1,108,731

Fixed wing contracts
718

 
—

 
—

 
—

 
—

 
718

Total remaining performance obligation revenue
$
224,491

 
$
243,575

 
$
198,487

 
$
171,741

 
271,155

 
$
1,109,449


Although substantially all of the Company’s revenue is derived under contract, due to the nature of the business, the Company does not have significant remaining performance obligations as its contracts typically include unilateral termination clauses that allow its customers to terminate existing contracts with a notice period of 30 to 365 days. The table above includes performance obligations up to the point where the parties can cancel existing contracts. Any applicable cancellation penalties have been excluded. As such, the Company’s actual remaining performance obligation revenue is expected to be greater than what is reflected in the table above. In addition, the remaining performance obligation disclosure does not include expected consideration related to performance obligations of a variable nature (i.e., flight services) as they cannot be reasonably and reliably estimated.