TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008  Whereas fluctuating rates of return are characteristic of the securities markets, the investment objective of  the supplemental plan is to achieve investment returns sufficient to meet the actuarial assumptions. This is  defined as an investment return greater than the current actuarial discount rate assumption of 5.5%, which  is subject to annual upward or downward revisions .  All objectives are based upon a five to ten year  investment horizon.  Equity securities may represent up to 75% of the market value of the plan assets with a minimum  requirement of 55% of the market value of the plan. Equity holdings shall be restricted to issues of  corporations that are actively traded on the major U.S. exchanges and NASDAQ. Debt securities will  represent a maximum of 45% and a minimum of 25% of the market value of the plan. Debt security  investments may include all securities issued by the U.S. Treasury or other federal agencies and investment  grade corporate bonds. Up to 20% of the fixed income portfolio may be invested in bonds rated below  investment grade. Cash and cash equivalent investments may represent a small portion of the plan market  value, generally less than 10%. When a particular asset class exceeds its minimum or maximum allocation  ranges, rebalancing will be addressed upon review of the quarterly performance reports and as cash  contributions and withdrawals are made.  The following table provides the target and actual asset allocations for the pension plan and the  supplemental plan: The pension plan and the supplemental plan assets are periodically evaluated for concentration risks. As of  March 31, 2010, the company did not have any individual asset investments that comprised 10% or more of  each plan’s overall assets. The pension plan assets will primarily be invested in debt securities with no more than the greater of 5% of  the fixed income portfolio or $2.5 million being invested in the securities of a single issuer, except  investments in U.S. Treasury and other federal agency obligations. In the event that plan assets exceed the  estimated plan liabilities for the pension plan, up to 15% of the market value of the assets will be invested in  equity securities. The investment policy sets forth that the maximum single investment of the equity portfolio  is 5% of the portfolio market value. Further, investments in foreign securities are restricted to American  Depository Receipts (ADR) and stocks listed on the U.S. stock exchanges and may not exceed 10% of the  equity portfolio.  The current diversification policy for the supplemental plan sets forth that equity securities in any single  industry sector shall not exceed 25% of the equity portfolio market value and shall not exceed 10% market  value of the equity portfolio for equity holdings in any single corporation. Additionally, debt securities should  be diversified between issuers within each sector with no one issuer comprising more than 10% of the  aggregate fixed income portfolio, excluding issues of the U.S. Treasury or other federal agencies.  F-21 Significant Concentration Risks  Actual as of  Actual as of  Target 2010 2009 Pension plan:  Equity securities --- --- 9% Debt securities 100% 99% 61% Cash and other  ---  1%  30%  Total 100% 100% 100% Supplemental plan:  Equity securities 65% 61% 48% Debt securities 35% 36% 46% Cash and other  ---  3%  6%  Total 100% 100% 100%