Segment Information

9 Months Ended

12 Months Ended

Jan. 31, 2013

Apr. 30, 2012

Segment Information

19. Segment information:

We operate under the following segments:

• Helicopter Services;

• Maintenance, repair and overhaul (“MRO”);

• Corporate and other.

We have provided information on segment revenues and segment EBITDAR (adjusted) because these are the financial measures used by the Company’s chief operating decision maker in making operating decisions and assessing performance. Transactions between operating segments are at standard industry rates.

The Helicopter Services segment includes flying operations around the world serving offshore oil and gas, EMS/SAR and other industries. While management does not include aircraft lease and associated costs in an internal measure of profitability for the Helicopter Services segment, these costs are presented in the Helicopter Services column as they are most directly attributable to Helicopter Services operations and revenues.

The MRO segment includes facilities in Norway, Canada, Australia, Poland, and the US that provide helicopter repair and overhaul services for our fleet and for a growing external customer base in Europe, Asia and North America.

Corporate and other includes corporate office costs in various jurisdictions and is not considered a reportable segment.

	Nine months ended January 31, 2013
	Helicopter Services			MRO			Corporate and other			Inter-segment eliminations			Consolidated
Revenue from external customers	$	1,203,471		$	96,503		$	4,720		$	—		$	1,304,694
Add: Inter-segment revenues		3,635			215,649			42			(219,326	)		—
Total revenue		1,207,106			312,152			4,762			(219,326	)		1,304,694
Direct costs (i)		(863,298	)		(252,613	)		(7,154	)		219,326			(903,739	)
Earnings from equity accounted investees		2,687			—			—			—			2,687
General and administration costs		—			—			(56,110	)		—			(56,110	)
Segment EBITDAR (adjusted) (ii)		346,495			59,539			(58,502	)		—			347,532
Aircraft lease and associated costs		(149,390	)		—			—			—			(149,390	)
Amortization														(84,646	)
Restructuring costs														(8,617	)
Impairment of receivables and funded residual value guarantees														(1,036	)
Impairment of intangible assets (iii)														(6,943	)
Impairment of assets held for sale														(11,457	)
Impairment of assets held for use														(4,724	)
Loss on disposal of assets														(9,019	)
Interest on long-term debt														(93,949	)
Foreign exchange gain														7,015
Other financing charges														(22,465	)
Income tax expense														(50,606	)
Loss from continuing operations														(88,305	)
Income from discontinued operations, net of tax														1,024
Net loss													$	(87,281	)

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.

(ii) Segment EBITDAR (adjusted) is defined as earnings before interest, taxes, depreciation, amortization and aircraft lease and associated costs or total revenue plus earnings from equity accounted investees less direct costs excluding aircraft lease and associated costs less general and administrative expenses.

(iii) Impairment of intangible assets relates to the Corporate and other segment.

	Nine months ended January 31, 2012
	Helicopter services			MRO			Corporate and other			Inter-segment eliminations			Consolidated
Revenue from external customers	$	1,131,879		$	103,707		$	3,996		$	—		$	1,239,582
Add: Inter-segment revenues		4,916			204,208			30			(209,154	)		—
Total revenue		1,136,795			307,915			4,026			(209,154	)		1,239,582
Direct costs (i)		(827,255	)		(253,441	)		(12,846	)		209,154			(884,388	)
Earnings from equity accounted investees		1,642			—			—			—			1,642
General and administration costs		—			—			(47,483	)		—			(47,483	)
Segment EBITDAR (adjusted) (ii)		311,182			54,474			(56,303	)		—			309,353
Aircraft lease and associated costs		(128,968	)		—			—			—			(128,968	)
Amortization														(80,891	)
Restructuring costs														(15,612	)
Impairment of receivables and funded residual value guarantees														(161	)
Impairment of intangible assets (iii)														(2,712	)
Impairment of assets held for sale														(12,554	)
Gain on disposal of assets														2,946
Interest on long-term debt														(89,256	)
Foreign exchange loss														(7,798	)
Other financing charges														(14,017	)
Income tax recovery														1,882
Loss from continuing operations														(37,788	)
Loss from discontinued operations, net of tax														(9,528	)
Net loss													$	(47,316	)

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.

(ii) Segment EBITDAR (adjusted) is defined as earnings before interest, taxes, depreciation, amortization and aircraft lease and associated costs or total revenue plus earnings from equity accounted investees less direct costs excluding aircraft lease and associated costs less general and administrative expenses.

(iii) Impairment of intangible assets relates to the Corporate and other segment.

27. Segment information:

The Company operates under the following segments:

• Helicopter Services;

• Maintenance, repair and overhaul (“MRO”); and

• Corporate and other.

The Company has provided information on segment revenues and segment EBITDAR (adjusted) because these are the financial measures used by the Company’s Chief operating decision maker in making operating decisions and assessing performance. Transactions between operating segments are at standard industry rates.

The Helicopter Services segment includes flying operations around the world serving offshore oil and gas, EMS/SAR and other industries.

The MRO segment includes facilities in Norway, Canada, Australia, and the US that provide helicopter repair and overhaul services for the Company’s fleet and for a growing external customer base in Europe, Asia and North America.

During 2011, the Company changed its internal structure resulting in the former European Operations and Global Operations segments being combined to form the Helicopter Services segment. In addition, the former Fleet segment was eliminated as the activities of this segment are now being managed as a cost centre as opposed to as a revenue generating division of the Company. While management does not include aircraft lease and associated costs in an internal measure of profitability for the Helicopter Services segment, these costs are now presented in the Helicopter Services column as they are most directly attributable to Helicopter Services operations and revenues.

Corporate and other includes corporate office costs in various jurisdictions and is not considered a reportable segment.

The accounting policies of the segments and the basis of accounting for transactions between segments are the same as those described in the summary of significant accounting policies.

	For the year ended April 30, 2012
	Helicopter services			MRO			Corporate and other			Inter-segment eliminations			Consolidated
Revenue from external customers	$	1,520,223		$	166,479		$	5,837		$	—		$	1,692,539
Add: Inter-segment revenues		7,550			275,920			18			(283,488	)		—
Total revenue		1,527,773			442,399			5,855			(283,488	)		1,692,539
Direct costs (i)		(1,117,216	)		(353,485	)		(18,002	)		283,488			(1,205,215	)
Earnings from equity accounted investees		2,844			—			—			—			2,844
General and administrative		—			—			(69,590	)		—			(69,590	)
Segment EBITDAR (adjusted) (ii)		413,401			88,914			(81,737	)		—			420,578
Aircraft lease and associated costs		(176,685	)		—			—			—			(176,685	)
Amortization														(112,967	)
Restructuring costs														(22,511	)
Recovery of receivables and funded residual value guarantees														272
Impairment of intangible assets														(4,218	)
Impairment of assets held for sale														(13,469	)
Gain on disposal of assets														8,169
Interest on long-term debt														(116,578	)
Foreign exchange gain														1,795
Other financing charges														(15,062	)
Income tax expense														(48,217	)
Loss from continuing operations														(78,893	)
Loss from discontinued operations, net of tax														(16,107	)
Loss for the year													$	(95,000	)
Segment assets	$	858,930		$	392,150		$	1,385,089		$	—		$	2,636,169
Segment assets - held-for-sale (note 7)		521			—			79,292			—			79,813
Total assets	$	859,451		$	392,150		$	1,464,381		$	—		$	2,715,982
Segment capital asset expenditures	$	11,762		$	114,971		$	249,891		$	—		$	376,624
Segment goodwill		433,811			—			—			—			433,811

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.

(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.

	For the year ended April 30, 2011
	Helicopter services			MRO			Corporate and other			Inter-segment eliminations			Consolidated
Revenue from external customers	$	1,311,983		$	129,222		$	4,255		$	—		$	1,445,460
Add: Inter-segment revenues		7,508			238,397			617			(246,522	)		—
Total revenue		1,319,491			367,619			4,872			(246,522	)		1,445,460
Direct costs (i), (iii)		(951,268	)		(324,057	)		(18,049	)		246,522			(1,046,852	)
Earnings from equity accounted investees		2,159			—			—			—			2,159
General and administrative		—			—			(65,391	)		—			(65,391	)
Segment EBITDAR (adjusted) (ii)		370,382			43,562			(78,568	)		—			335,376
Aircraft lease and associated costs		(164,828	)		—			—			—			(164,828	)
Amortization														(99,625	)
Restructuring costs														(4,751	)
Impairment of receivables and funded residual value guarantees														(1,919	)
Impairment of intangible assets														(20,608	)
Impairment of assets held for sale														(5,239	)
Gain on disposal of assets														7,193
Interest on long-term debt														(91,462	)
Foreign exchange gain														17,916
Other financing charges														(67,036	)
Income tax recovery														32,916
Loss from continuing operations														(62,067	)
Loss from discontinued operations, net of tax														(3,202	)
Loss for the year													$	(65,269	)
Segment assets	$	1,060,591		$	404,940		$	1,272,825		$	—		$	2,738,356
Segment assets - held-for-sale (note 7)		2,749			15,268			31,782			—			49,799
Total assets	$	1,063,340		$	420,208		$	1,304,607		$	—		$	2,788,155
Segment capital asset expenditures	$	12,105		$	100,287		$	116,412		$	—		$	228,804
Segment goodwill		448,121			—			—			—			448,121

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.

(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.

(iii) Direct costs in the Corporate and other segment includes $10.2 million in the write-off of bid costs previously capitalized and other legal and consulting costs incurred in connection with the planned procurement of the UK Search and Rescue Helicopter Services.

	For the year ended April 30, 2010
	Helicopter services			MRO			Corporate and other			Inter-segment eliminations			Consolidated
Revenue from external customers	$	1,186,898		$	112,470		$	14,198		$	—		$	1,313,566
Add: Inter-segment revenues		8,462			263,085			1			(271,548	)		—
Total revenue		1,195,360			375,555			14,199			(271,548	)		1,313,566
Direct costs (i)		(834,351	)		(312,431	)		(9,576	)		271,548			(884,810	)
Earnings from equity accounted investees		1,436			—			—			—			1,436
General and administrative		—			—			(61,157	)		—			(61,157	)
Segment EBITDAR (adjusted) (ii)		362,445			63,124			(56,534	)		—			369,035
Aircraft lease and associated costs		(145,072	)		—			—			—			(145,072	)
Amortization														(77,738	)
Restructuring costs														(4,855	)
Impairment of receivables and funded residual value guarantees														(13,266	)
Impairment of intangible assets														(53,903	)
Impairment of assets held for sale														(26,585	)
Impairment of property and equipment														(36,240	)
Loss on disposal of assets														(2,686	)
Interest on long-term debt														(69,520	)
Foreign exchange gain														16,520
Other financing charges														(21,459	)
Income tax expense														(9,297	)
Loss from continuing operations														(75,066	)
Loss from discontinued operations, net of tax														(1,436	)
Loss for the year													$	(76,502	)

(i) Direct costs in the segment information presented excludes aircraft lease and associated costs. In the consolidated statement of operations these costs are combined.

(ii) Segment EBITDAR (adjusted) is defined as revenues less directs costs, excluding aircraft lease and associated costs, general and administrative expenses plus earnings from equity accounted investees.

Geographic information:

	Revenue For the year ended
	April 30, 2012		April 30, 2011		April 30, 2010
Canada	$	13,914	$	12,671	$	16,386
United Kingdom		262,592		243,921		251,627
Norway		531,452		452,578		405,258
Africa		60,503		56,361		54,776
Australia		213,970		137,639		126,992
Denmark		29,538		29,108		29,535
The Netherlands		94,663		95,835		119,234
Brazil		210,347		163,928		105,856
Asia		93,782		107,305		93,671
Other European countries		139,955		112,188		49,539
Other countries		41,823		33,926		60,692
Consolidated total	$	1,692,539	$	1,445,460	$	1,313,566

Revenues are attributed to countries based on the location of the customer for MRO services and the location of service for helicopter flying services.

The Company provides services across different geographic areas to many customers. In the year ended April 30, 2012, revenue from two customers (2011 – one customer) was greater than 10% of the Company’s revenue, contributing $450.5 million (2011 – $249.9 million, 2010 – $152.6 million) in Helicopter Services. As at April 30, 2012, these two customers had outstanding accounts receivable balances of $24.4 million.

	Property and equipment				Goodwill
	April 30, 2012		April 30, 2011		April 30, 2012		April 30, 2011
Canada	$	62,425	$	91,779	$	10,857	$	11,149
United Kingdom		60,323		75,879		87,800		93,087
Norway		525,470		532,338		39,716		43,526
Africa		55,247		95,138		9,794		10,470
Australia		111,920		97,954		19,523		20,425
Denmark		685		744		1,076		1,199
The Netherlands		9,450		19,466		36,179		40,446
Asia		43,084		46,035		16,100		16,100
Other European countries		58,852		58,686		7,045		7,873
Other countries		99,404		115,480		205,721		203,846
Consolidated total	$	1,026,860	$	1,133,499	$	433,811	$	448,121

Property and equipment is attributed to countries based on the physical location of the asset at the fiscal year end.