Bristow Group Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

The components of deferred tax assets and liabilities are as follows (in thousands):


	December 31,
	2025		2024
Deferred tax assets:
Foreign tax credits	$	6,004	$	6,275
Net operating losses	116,539		137,902
Pension liability	—		41
Interest expense limitation	65,108		53,572
Accrued expenses not currently deductible	24		12,682
Lease liabilities	80,506		87,778
Other	5,727		7,660
Foreign currency adjustments	11,974		—
Gross deferred tax assets	285,882		305,910
Valuation allowance	(97,766)		(139,272)
Total deferred tax assets	$	188,116	$	166,638
Deferred tax liabilities:
Property and equipment	$	(97,338)	$	(92,505)
Accrued pension liability	(2,897)		—
Inventories	(925)		(976)
Investment in foreign subsidiaries and unconsolidated affiliates	(1,215)		(2,764)
Right-of-use lease asset	(80,576)		(87,826)
Intangibles	(9,199)		(13,838)

Other	354		17,692
Total deferred tax liabilities	$	(191,796)	$	(180,217)
Net deferred tax liabilities	$	(3,680)	$	(13,579)

The following table shows the expiration of such loss carryforwards (in thousands, except dates):


	December 31, 2025	Expiration
Foreign tax credit carryforwards	$6,004	2028-2032
Foreign net operating loss carryforwards	$390,102	Indefinite
State net operating loss carryforwards	$101,524	Indefinite
State net operating loss carryforwards	$457,205	2026-2042
Section 163j interest expense	$275,998	Indefinite

The components of income (loss) before income taxes for the periods reflected in the table below were as follows (in thousands):


	Year Ended December 31, 2025		Year Ended December 31, 2024		Year Ended December 31, 2023
Domestic	$	45,739	$	21,188	$	(39,130)
Foreign	105,497		80,875		57,142
Income (loss) before income taxes	$	151,236	$	102,063	$	18,012

The components of income tax expense for the periods reflected in the table below were as follows (in thousands):

The following table reflects information on the provision of income taxes and rate reconciliations in accordance with ASU 2023-09:


Category	Year Ended December 31, 2025	Effective Tax Rate
Federal statutory tax rate	31,760	21.0	%
State and local income taxes, net of federal income tax effect (1)	1,997	1.3	%
Foreign tax effects:
Australia
Nontaxable or nondeductible items	(2,455)	(1.6)	%
Gain on sale of investment	2,541	1.7	%
Valuation allowances	(27,110)	(17.9)	%






Cayman Islands


Tax rate differential	(3,212)	(2.1)	%

Ireland
Other	(767)	(0.5)	%
Tax rate differential	2,481	1.6	%

Netherlands
Transfer pricing	(3,221)	(2.1)	%
Other	573	0.4	%

Nigeria
Other	3,199	2.1	%
Tax credits	(3,248)	(2.1)	%
Tax rate differential	4,068	2.6	%
Withholding tax	2,326	1.5	%





Panama

Other	(161)	(0.1)	%
Tax exempt interest	(134,385)	(88.9)	%
Tax rate differential	21,572	14.3	%

Trinidad and Tobago
Other	168	0.1	%
Tax rate differential	2,132	1.4	%

United Kingdom (England, Northern Ireland, Scotland, and Wales)
Gain on sale of investment	2,260	1.5	%
Other	1,221	0.8	%
Pillar two top up tax	1,715	1.1	%
Tax credits	(2,640)	(1.7)	%
Tax exempt interest	134,280	88.8	%
Tax rate differential	(20,285)	(13.4)	%

Other jurisdictions	2,201	1.5	%

Effect of cross-border tax laws
Forgone foreign tax credit	3,265	2.2	%
Other	711	0.5	%

Valuation allowances	(1,735)	(1.2)	%
Nontaxable or nondeductible Items	3,236	2.1	%
Other adjustments	(676)	(0.5)	%
Total	21,809	14.4	%

(1)For the year ended December 31, 2025, state and local income taxes are primarily related to the state of Louisiana.

Below is a reconciliation of the statutory federal income tax expense and the Company’s total tax expense for years ended December 31, 2023 and 2024:


	Year Ended December 31, 2024		Year Ended December 31, 2023
Statutory rate	21.0	%	21.0	%
Net foreign tax on non-U.S. earnings	0.9	%	15.5	%
Foreign earnings double tax relief	(8.0)	%	(9.5)	%
Foreign earnings indefinitely reinvested abroad	—	%	(3.4)	%
Change in valuation allowance	(3.5)	%	(23.6)	%
Foreign earnings that are currently taxed in the U.S.	—	%	7.4	%
Changes in prior year estimates	(0.3)	%	—	%
Impact of U.S. withholding tax	10.6	%	2.2	%
Impact of tax rate changes	2.9	%	2.6	%
Foreign tax credits	12.9	%	76.5	%
Deferred gains	(3.1)	%	7.9	%
GILTI income	0.9	%	19.8	%
Other, net	(27.2)	%	22.0	%
Effective tax rate	7.1	%	138.4	%

The following table summarizes the years open by jurisdiction as of December 31, 2025:

The activity associated with unrecognized tax benefit for the periods reflected in the table below was follows (in thousands):


	Year Ended December 31, 2025		Year Ended December 31, 2024		Year Ended December 31, 2023
Unrecognized tax benefits – beginning of period	$	100	$	4,173	$	4,067
Increases for tax positions taken in prior periods	—		—		106

Decrease related to statute of limitation expirations	—		(4,073)		—
Unrecognized tax benefits – end of period	$	100	$	100	$	4,173

The following table presents income taxes paid (net of refunds received) for the year ended December 31, 2025 (in thousands):