v2.4.1.9

COMMITMENTS AND CONTINGENCIES | 12 Months Ended
--- | ---
Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Aircraft Purchase Contracts — As shown in the table below, we expect to make additional capital expenditures over the next five fiscal years to purchase additional aircraft. As of March 31, 2015, we had 45 aircraft on order and options to acquire an additional 30 aircraft. Although a similar number of our existing aircraft may be sold during the same period, the additional aircraft on order will provide incremental fleet capacity in terms of revenue and operating income. As discussed in Note 1, we were awarded a contract to provide civilian SAR services for all of the U.K. The SAR configured aircraft on order in the table below are intended to service this contract and other SAR contracts.
| Fiscal Year Ending March 31, |  |
| 2016 |  | 2017 |  | 2018 |  | 2019 and beyond |  | Total
Commitments as of March 31, 2015: (1) (2) |  |  |  |  |  |  |  |  |
Number of aircraft: |  |  |  |  |  |  |  |  |
Medium | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Large (3) | 10 |  |  | 5 |  |  | 6 |  |  | 7 |  |  | 28 |
SAR configured | 9 |  |  | — |  |  | — |  |  | — |  |  | 9 |
| 27 |  |  | 5 |  |  | 6 |  |  | 7 |  |  | 45 |
Related expenditures (in thousands)(2) (4) |  |  |  |  |  |  |  |  |
Medium and large | $ | 293,821 |  |  | $ | 88,547 |  |  | $ | 75,936 |  |  | $ | 87,231 |  |  | $ | 545,535 |
SAR configured | 122,796 |  |  | — |  |  | — |  |  | — |  |  | 122,796 |
| $ | 416,617 |  |  | $ | 88,547 |  |  | $ | 75,936 |  |  | $ | 87,231 |  |  | $ | 668,331 |
Options as of March 31, 2015: |  |  |  |  |  |  |  |  |
Number of aircraft: |  |  |  |  |  |  |  |  |
Medium | 3 |  |  | 4 |  |  | 7 |  |  | — |  |  | 14 |
Large (3) | — |  |  | 9 |  |  | 7 |  |  | — |  |  | 16 |
| 3 |  |  | 13 |  |  | 14 |  |  | — |  |  | 30 |
Related expenditures (in thousands)(3) | $ | 124,382 |  |  | $ | 286,814 |  |  | $ | 183,060 |  |  | $ | — |  |  | $ | 594,256 |
_________
(1) | Signed client contracts are currently in place that will utilize 13 of these aircraft.
(2) | Excludes commitments related to sale leaseback advance. See Note 1 for further details.
(3) | Seventeen large aircraft on order expected to enter service between fiscal years 2017 and 2020 are subject to the successful development and certification of the aircraft.
(4) | Includes progress payments on aircraft scheduled to be delivered in future periods.
The following chart presents an analysis of our aircraft orders and options during fiscal years 2015, 2014 and 2013:
| Fiscal Year Ended March 31,
| 2015 |  | 2014 |  | 2013
| Orders |  | Options |  | Orders |  | Options |  | Orders |  | Options
Beginning of fiscal year | 43 |  |  | 55 |  |  | 45 |  |  | 70 |  |  | 15 |  |  | 40 |
Aircraft delivered | (18 | ) |  | — |  |  | (21 | ) |  | — |  |  | (8 | ) |  | — |
Aircraft ordered | 8 |  |  | — |  |  | 18 |  |  | — |  |  | 26 |  |  | — |
New options | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42 |
Exercised options | 12 |  |  | (12 | ) |  | 8 |  |  | (8 | ) |  | 12 |  |  | (12 | )
Expired options | — |  |  | (13 | ) |  | — |  |  | (7 | ) |  | — |  |  | — |
Orders assigned subject to leaseback (1) | — |  |  | — |  |  | (7 | ) |  | — |  |  | — |  |  | — |
End of fiscal year | 45 |  |  | 30 |  |  | 43 |  |  | 55 |  |  | 45 |  |  | 70 |
___________
(1) | During fiscal year 2014, we transferred our interest in seven aircraft previously ordered in return for $106.1 million in progress payments previously paid on these aircraft.
We periodically purchase aircraft for which we have no orders. During fiscal year 2015, we purchased three aircraft for which we did not have orders. Operating Leases — We have non-cancelable operating leases in connection with the lease of certain equipment, land and facilities, including leases for aircraft. Rent expense incurred under all operating leases was $164.8 million, $105.8 million and $67.4 million in fiscal years 2015, 2014 and 2013, respectively. Rent expense incurred under operating leases for aircraft was $138.3 million, $83.5 million and $46.8 million in fiscal years 2015, 2014 and 2013, respectively. As of March 31, 2015, aggregate future payments under all non-cancelable operating leases that have initial or remaining terms in excess of one year, including leases for 82 aircraft, are as follows (in thousands):
| Aircraft |  | Other |  | Total
Fiscal year ending March 31, |  |  |  |  |
2016 | $ | 158,066 |  |  | $ | 8,378 |  |  | $ | 166,444 |
2017 | 155,450 |  |  | 7,798 |  |  | 163,248 |
2018 | 137,407 |  |  | 8,864 |  |  | 146,271 |
2019 | 110,139 |  |  | 8,566 |  |  | 118,705 |
2020 | 72,232 |  |  | 7,560 |  |  | 79,792 |
Thereafter | 26,999 |  |  | 51,615 |  |  | 78,614 |
| $ | 660,293 |  |  | $ | 92,781 |  |  | $ | 753,074 |
In both fiscal years 2015 and 2014, we sold 14 aircraft for $380.7 million and $246.4 million, respectively, and entered into 14 separate agreements each year to lease these aircraft back. Additionally, in fiscal year 2014, we received payment of approximately $106.1 million for progress payments we had previously made on seven aircraft under construction and we assigned any future payments due on these construction agreements to the purchaser. We have the obligation and intent to lease the aircraft back from the purchaser upon completion. See Note 1 for further details. The aircraft leases range from base terms of up to 180 months with renewal options of up to 240 months in some cases, include purchase options upon expiration and some include early purchase options. The leases contain terms customary in transactions of this type, including provisions that allow the lessor to repossess the aircraft and require us to pay a stipulated amount if we default on our obligations under the agreements. These leases are included in the amounts disclosed above. The following is a summary of the terms related to aircraft leased under operating leases with original or remaining terms in excess of one year:
End of Lease Term | Number of Aircraft |  | Monthly Lease Payments (in thousands)
Fiscal year 2016 to fiscal year 2017 | 11 |  |  | $ | 1,627 |
Fiscal year 2018 to fiscal year 2020 | 49 |  |  | 9,512 |
Fiscal year 2021 to fiscal year 2024 | 22 |  |  | 2,004 |
| 82 |  |  | $ | 13,143 |
Employee Agreements — Approximately 45% of our employees are represented by collective bargaining agreements and/or unions with 18% of these employees being represented by collective bargaining agreements and/or unions that have expired or will expire in one year. These agreements generally include annual escalations of up to 6%. Periodically, certain groups of our employees who are not covered by a collective bargaining agreement consider entering into such an agreement. During fiscal year 2015, we recognized $0.9 million in severance expense included in direct costs and general and administrative expense in our West Africa business unit. During fiscal years 2015 and 2014, respectively, we recognized $0.9 million and $2.9 million in severance expense included in direct costs and general and administrative expense in our North America business unit, primarily as a result of our planned closure of our Alaska operations. During fiscal years 2014 and 2013, we recognized $2.1 million and $2.2 million, respectively, in compensation expense included in direct cost related to severance costs as a result of the termination of two separate contracts in the Southern North Sea. Also, during fiscals year 2015, 2014 and 2013, we recognized approximately $5.5 million, and $2.9 million, and $2.0 million, respectively, in compensation expense (including expenses recorded for the acceleration of unvested stock options and restricted stock), included in general and administrative expense, related to the separation between us and officers. We also have employment agreements with members of senior management. For further details on the retirement of our former President and Chief Executive Officer, see Note 9. Nigerian Litigation — In November 2005, two of our consolidated foreign affiliates were named in a lawsuit filed with the High Court of Lagos State, Nigeria by Mr. Benneth Osita Onwubalili and his affiliated company, Kensit Nigeria Limited, which allegedly acted as agents of our affiliates in Nigeria. The claimants allege that an agreement between the parties was terminated without justification and seek damages of $16.3 million. We responded to this claim in early 2006. There has been minimal activity on this claim since then. Environmental Contingencies — The U.S. Environmental Protection Agency, also referred to as the EPA, has in the past notified us that we are a potential responsible party, or PRP, at three former waste disposal facilities that are on the National Priorities List of contaminated sites. Under the federal Comprehensive Environmental Response, Compensation and Liability Act, also known as the Superfund law, persons who are identified as PRPs may be subject to strict, joint and several liability for the costs of cleaning up environmental contamination resulting from releases of hazardous substances at National Priorities List sites. Although we have not yet obtained a formal release of liability from the EPA with respect to any of the sites, we believe that our potential liability in connection with the sites is not likely to have a material adverse effect on our business, financial condition or results of operations. Other Purchase Obligations — As of March 31, 2015, we had $308.2 million of other purchase obligations representing unfilled purchase orders for aircraft parts, commitments associated with upgrading facilities at our bases and non-cancelable power-by-the-hour maintenance commitments. Other Matters - Although infrequent, aircraft accidents have occurred in the past, and the related losses and liability claims have been covered by insurance subject to deductible, self-insured retention and loss sensitive factors. We operate in jurisdictions internationally where we are subject to risks that include government action to obtain additional tax revenue. In a number of these jurisdictions, political unrest, the lack of well-developed legal systems and legislation that is not clear enough in its wording to determine the ultimate application, can make it difficult to determine whether legislation may impact our earnings until such time as a clear court or other ruling exists. We operate in jurisdictions currently where amounts may be due to governmental bodies that we are not currently recording liabilities for as it is unclear how broad or narrow legislation may ultimately be interpreted. We believe that payment of amounts in these instances is not probable at this time, but is reasonably possible. A loss contingency is reasonably possible if the contingency has a more than remote but less than probable chance of occurring. Although management believes that there is no clear requirement to pay amounts at this time and that positions exist suggesting that no further amounts are currently due, it is reasonably possible that a loss could occur for which we have estimated a maximum loss at March 31, 2015 to be approximately $5 million to $8 million. We are a defendant in certain claims and litigation arising out of operations in the normal course of business. In the opinion of management, uninsured losses, if any, will not be material to our financial position, results of operations or cash flows.

X
- Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration