Bristow Group Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income (Loss) Before Income Taxes and Equity Earnings

For financial reporting purposes, income (loss) before income taxes and equity earnings for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):



	2015			2014		2013
U.S.	$	27,699		$	22,631	$	29,149
Foreign	(3,740		)	—		—
Total	$	23,959		$	22,631	$	29,149

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):



	2015			2014		2013
Current:
Federal	$	(70	)	$	—	$	3,758
State	63			15		91
Foreign	(76		)	1,220		742
Total current	(83		)	1,235		4,591
Deferred:
Federal	13,977			6,870		5,912
State	364			180		1,224
Foreign	(141		)	—		—
Total deferred	14,200			7,050		7,136
Income tax expense	$	14,117		$	8,285	$	11,727

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles the difference between the statutory federal income tax rate for the Company and the effective income tax rate for the years ended December 31, 2015, 2014 and 2013:



Provision (benefit):	2015		2014		2013
Statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal tax benefit	(0.1	)%	0.8	%	1.7	%
Valuation allowance	1.8	%	0.1	%	2.7	%
Transfer of asset to Hauser	4.0	%	—	%	—	%
Write-off of deferred tax asset upon consolidation of Aeróleo	16.0	%	—	%	—	%
Other	2.2	%	0.7	%	0.8	%
	58.9	%	36.6	%	40.2	%

Schedule of Net Deferred Tax Liabilities

The components of net deferred income tax liabilities as of December 31, 2015 and 2014 were as follows (in thousands):



	2015			2014
Deferred tax liabilities:
Property and equipment	$	232,835		$	222,521
Buy-in on maintenance contracts	1,990			2,488
Other	1,552			—
Total deferred tax liabilities	236,377			225,009
Deferred tax assets:
Equipment leases	355			496
State NOL	7,414			6,857
Other	—			3,431
Valuation allowance	(1,240		)	(806		)
Total deferred tax assets	6,529			9,978
Net deferred tax liabilities	$	229,848		$	215,031

Summary of Income Tax Contingencies

A reconcilication of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):



	2015
Unrecognized tax benefits at the beginning of the year	$	—
Increases due to the consolidation of Aeróleo	648
Unrecognized tax benefits at the end of the year	$	648