Quarterly report pursuant to Section 13 or 15(d)

REVENUES

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REVENUES
 9 Months Ended
Dec. 31, 2021
Revenue Recognition [Abstract]  
REVENUES REVENUES
Revenue Recognition
The Company derives its revenues primarily from oil and gas flight services, government services and fixed wing services. A majority of the Company’s revenue is generated through two types of contracts: helicopter services, which includes oil and gas, government and other 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 revenues (in thousands):
Three Months Ended December 31, Nine Months Ended December 31,
  2021 2020 2021 2020
Revenues from contracts with customers $ 287,465  $ 303,836  $ 876,031  $ 857,489 
Total other revenues 8,154  6,061  21,773  27,241 
Total revenues $ 295,619  $ 309,897  $ 897,804  $ 884,730 
Beginning in fiscal year 2022, the revenues by line of service tables have been modified to more accurately reflect how management views the Company’s lines of service. These changes include the addition of a Government services line of service which includes revenues from U.K. SAR, the U.S. Bureau of Safety and Environmental Enforcement (“BSEE”), and other government contracts. In addition, our Other activities and services (“other” services) will now reflect revenues derived from leasing aircraft to non-governmental third party operators, oil and gas contracts that do not materially fit into one of the three major oil and gas operating regions and other services as they arise. As such, operating revenues from Asia Pacific oil and gas services are now shown under other services following the exit of that line of service in the Asia Pacific region. Prior period amounts will not match the previously reported amounts by individual lines of service. Management believes this change provides more relevant information needed to understand and analyze the Company’s current lines of service.
Revenues by Service Line. The following table sets forth the operating revenues earned by service line for the applicable periods (in thousands):
Three Months Ended December 31, Nine Months Ended December 31,
2021 2020 2021 2020
Oil and gas services $ 194,934  $ 206,027  $ 578,399  $ 602,412 
Government services(1)
66,435  64,866  206,619  185,099 
Fixed wing services 20,509  20,054  68,566  51,836 
Other services(2)
3,132  9,328  9,896  18,158 
Total operating revenues $ 285,010  $ 300,275  $ 863,480  $ 857,505 
____________________ 
(1)Includes revenues of approximately $8.4 million and $19.0 million related to government services that were previously included in the oil and gas and other service lines for the three and nine months ended December 31, 2020, respectively.
(2)Includes Asia Pacific and certain Europe revenues of approximately $3.3 million and $9.9 million that were previously included in the oil and gas service line for the three and nine months ended December 31, 2020, respectively.
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 revenues in which advance consideration is received from customers for contracts where revenues are recognized based on future performance of services.
As of December 31 and March 31, 2021, receivables related to services performed under contracts with customers were $143.2 million and $167.3 million, respectively. During the nine months ended December 31, 2021, the Company recognized $12.2 million of revenues from outstanding contract liabilities. Contract liabilities related to services performed under contracts with customers were $12.6 million and $13.3 million as of December 31, 2021 and March 31, 2021, 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 December 31 and March 31, 2021.
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
Three Months Ending March 31, 2022 Fiscal Year Ending March 31, Total
  2023 2024 2025 2026 and thereafter
Outstanding Service Revenue:
Helicopter contracts
 $ 121,508  $ 263,994  $ 211,573  $ 165,436  $ 127,335  $ 889,846 
Fixed wing contracts
 794  47  —  —  —  841 
Total remaining performance obligation revenue
 $ 122,302  $ 264,041  $ 211,573  $ 165,436  $ 127,335  $ 890,687 
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.