TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008  capitalization of 0.45 as compared to a maximum ratio of consolidated debt to total capitalization of  0.55 with the prior agreement. All other terms, including the financial and negative covenants, are customary  for facilities of its type and consistent with the prior agreement in all material respects.  The revolving credit facility provides, among other things, for the issuance of letters of credit that the  company may utilize to guarantee performance under some of our operating contracts, as well as  insurance, tax and other obligations in various jurisdictions. The facility also provides for customary fees and  expense reimbursements and includes other covenants (including limitations on the incurrence of debt,  mergers and other fundamental changes, limits on the company’s ability to encumber its assets for the  benefit of others and asset sales) and events of default (including a change of control) that are customary  for similar facilities. There were no borrowings outstanding under the amended and restated revolving credit agreement at  March 31, 2010, and the full $450.0 million was available at March 31, 2010. There were no outstanding  borrowings under the company’s previous revolving credit agreement at March 31, 2009.  The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct  vessels. Interest and debt costs incurred, net of interest capitalized for fiscal 2010, 2009, and 2008 and was  approximately $1.7 million, $0.7 million, and $7.0 million, respectively. Interest costs capitalized during fiscal  2010, 2009 and 2008 was approximately $15.6 million, $13.8 million, and $10.5 million, respectively. Debt Costs  (5) EMPLOYEE RETIREMENT PLANS U.S. Defined Benefit Pension Plan  A defined benefit pension plan (pension plan) covers certain U.S. citizen employees and employees who  are permanent residents of the United States. Benefits are based on years of service and employee  compensation. Approximately 99% of the pension plan assets are invested in fixed income securities with  the balance invested in cash and cash equivalents. The plan does not invest in Tidewater stock. The  company’s policy is to contribute no less than the minimum required contribution by law and no more than  the maximum deductible amount. The company contributed $4.7 million and $4.4 million to the defined  benefit pension trust during fiscal 2010 and 2009, respectively. The company does not expect to contribute  to the plan during fiscal 2011. In December 2009, the Board of Directors adopted amendments to the pension plan whereby effective  December 31, 2010, the accrual of benefits would be discontinued. On that date, previously accrued  pension benefits under the pension plan will be frozen for the approximately 70 active employees who  participate in the plan. This change will not affect benefits earned by participants prior to January 1, 2011.  Because future benefit accruals under the pension plan will be eliminated, the active employees who are  participants in the pension plan will become participants in the company’s defined contribution retirement  plan effective January 1, 2011. These changes will provide the company more predictable retirement plan  costs and cash flows. By freezing the benefits, the company’s future benefit obligations and requirements  for cash contributions for the frozen pension plan will be reduced. Any gains or losses associated with the  curtailment of the pension plan were immaterial. The company also offers a supplemental retirement plan (supplemental plan) that provides pension benefits  to certain employees in excess of those allowed under the company’s tax-qualified pension plan. Assets of  this non-contributory defined benefit plan are held in a Rabbi Trust, invested in a variety of marketable  securities, none of which is Tidewater stock. The Trust assets, which are included in “other assets” in the  company’s consolidated balance sheet, are recorded at fair value with unrealized gains or losses included in  other comprehensive income. Included in other assets at March 31, 2010 and 2009, is $16.2 million and  $12.4 million, respectively, of investments held in a Rabbi Trust for the benefit of participants in the  Supplemental Executive Retirement Plan  F-19