operations are the primary driver of its revenue and earnings. Revenues generated from international vessel  operations as a percentage of the company’s total vessel revenues were 92% during fiscal 2010 compared  to 89% during fiscal 2009.  In May 2009, a Venezuelan law was enacted directing the government of Venezuela to take possession of  certain assets of oil service companies doing business in Venezuela, and pursuant to that legislation,  Petróleos de Venezuela, S.A. (PDVSA), the Venezuelan national oil company, took possession of (a) 11 of  the company’s vessels that were then supporting PDVSA operations in the Lake Maracaibo region, (b) the  company’s shore-based facility adjacent to Lake Maracaibo and (c) certain other related assets. In July  2009, Petrosucre, S.A. (Petrosucre), a subsidiary of PDVSA, took control of four additional vessels. As a  result of the May 2009 seizure of the 11 vessels and other assets discussed above, the company recorded  a charge of $3.75 million ($2.9 million after tax, or $0.06 per common share), during the quarter ended  June 30, 2009, to write off the net book value of the assets seized. As a result of the July 2009 vessel  seizures, the company recorded a charge of $0.5 million ($0.4 million after tax, or $0.01 per common share)  during the quarter ended September 30, 2009. In addition, as a result of the asset seizures referred to  above, the lack of further vessel operations in Venezuela, and the continuing uncertainty about the timing  and amount of the compensation that the company may collect in the future, the company recorded a  $44.8 million ($44.8 million after tax, or $0.87 per common share) provision during the quarter ended  June 30, 2009, to fully reserve accounts receivable payable by PDVSA and Petrosucre. The company  insured the seized vessels and successfully recovered its insured vessel asset losses from insurance  underwriters in March 2010, which resulted in a gain on disposition of vessels of $5.4 million ($3.5 million  after tax, or $0.07 per common share). The company has yet to recover losses associated with other  aspects of its Venezuelan business that were seized. The above charges and gain on disposition of vessels  are included in the provision for Venezuelan operations in the accompanying consolidated statement of  earnings. Please refer to Note 10 of Notes to Consolidated Financial Statements included in Item 8 of this  report for more detailed discussion regarding the company’s Venezuelan operations.  In January 2008, the U.S. District Court for the Eastern District of Louisiana issued a final ruling in the  company’s favor with respect to a motion for summary judgment concerning the IRS disallowance of the  company’s tax deduction for foreign sales corporation commissions for fiscal years 1999 and 2000. In  April 2009, the Fifth Circuit Court of Appeals affirmed the District Court’s judgment. The IRS did not appeal  the Court of Appeals ruling, resulting in final resolution of the issue in the company’s favor in July 2009. The  tax benefit related to the issue is approximately $36.1 million, or $0.70 per common share, during fiscal  2010, which primarily includes a reversal of previously recorded liabilities for uncertain tax positions and  interest income on the judgment. During fiscal 2010, the company continued its significant vessel construction and acquisition program that  began in calendar year 2000. This program facilitated the company’s entrance into deepwater markets  around the world in addition to allowing the company to begin to replace its core fleet with fewer, larger, and  more technologically sophisticated vessels. The vessel construction and acquisition program were initiated  with the intent of strengthening the company’s presence in all major oil and gas producing regions of the  world through the replacement of aging vessels in the company’s core fleet. During this decade, the  company purchased and/or constructed 185 vessels for approximately $2.4 billion. Between April 1999 and  March 2010, the company also sold, primarily to buyers that operate outside of our industry, 508 vessels.  Most of the vessel sales were at prices that exceeded their carrying values. In aggregate, proceeds from,  and pre-tax gains on, vessel dispositions during this period approximated $746.0 million and $256.4 million,  respectively.  In recent years, the company has funded all vessel additions from available cash, operating cash flow, and  funds provided by the 2003 private placement of $300.0 million in senior unsecured notes, revolving credit  facilities and various leasing arrangements. At March 31, 2010, the company had commitments to acquire  five vessels and build 31 vessels at a number of different shipyards around the world (one of which is being  constructed in the United States by the company’s wholly-owned shipyard, Quality Shipyards, L.L.C.) at a  total cost, including contract costs and other incidental costs, of approximately $742.4 million, including  contract costs and other incidental costs, of which costs for the 31 new-build vessels totaled $681.8 million.  In particular, the company is committed to the construction of 13 anchor handling towing supply vessels  ranging between 5,150 and 13,570 brake horsepower (BHP), 16 platform supply vessels, ranging between  2,965 and 5,400 deadweight tons of cargo capacity, and two crewboats. Scheduled delivery for these  vessels began in April 2010 with delivery of the final vessel expected in July 2012. The company also had  -28- 