2010 are reflective of the reduced demand for vessels in the U.S. GOM and the stacking of additional  vessels. The company’s deepwater class of vessels was responsible for approximately $2.9 million, or 5%, of the  loss in revenue during fiscal 2010 as compared to fiscal 2009, because three deepwater vessels required  drydockings during fiscal 2010. Average day rates on the deepwater class of vessels increased  approximately 8%, during the comparative periods because one deepwater vessel performed short-term  charter assignments periodically during fiscal 2010 at contract rates substantially higher than the otherwise  average day rate. The company’s towing supply/supply class of vessels were responsible for approximately  68%, or $39.2 million, of the loss in revenue during fiscal 2010 as compared to fiscal 2009, due to an  approximate 10 percentage point decrease in utilization, an approximate 30% decrease in average day  rates resulting from the transfer of vessels to international markets, vessel sales and weak demand for the  company’s vessels in the shallow waters of the U.S. GOM market. The company’s crew/utility class of  vessels was responsible for approximately $15.1 million, or 26%, of the loss in revenue during the same  comparative periods due to the transfer of crewboats to international markets. Vessel revenues, utilization  percentages and average day rates by vessel class for the U.S. segment are disclosed in the “Vessel Class  Revenues and Statistics by Segment” section of this report. U.S.-based operating profit decreased approximately $25.6 million, or 74%, during fiscal 2010 compared to  fiscal 2009, primarily due to lower revenues. Reductions in revenues were somewhat offset by an  approximate $28.2 million, or 34%, decrease in vessel operating costs (primarily crew costs and repair and  maintenance costs) and an approximate $5.1 million, or 32%, decrease in depreciation expense resulting  from fewer vessels operating in the U.S. GOM market during fiscal 2010 compared to fiscal 2009. Crew  costs decreased approximately 41%, or $23.1 million during fiscal 2010 compared to fiscal 2009, due to the  transfer of vessels to international markets, reductions in crew personnel and wage reductions on crews  staffing the remaining active vessels. Repair and maintenance costs were approximately 18%, or  $2.0 million lower during fiscal 2010 as compared to fiscal 2009 because comparatively fewer drydocks  were performed in fiscal 2010 versus fiscal 2009 and, because fewer vessels were operating in the U.S.  GOM, comparatively lower expenditures were required for routine maintenance and repairs.  Other Items . Foreign exchange gains increased approximately $1.4 million, or 52%, during fiscal 2010 as  compared to fiscal 2009, primarily due to an $11.0 million, or $0.21 per common share, foreign exchange  gain related to the 50% devaluation of the Venezuelan bolivar fuerte relative to U.S. dollar. Excluding this  gain, foreign exchange gains decreased approximately $9.6 million, or 356%, due to the devaluation of the  U.S. dollar relative to other currencies.  Fiscal 2010 insurance and loss reserves were comparable to fiscal 2009.  Gain on asset dispositions, net, during fiscal 2010 increased approximately 3%, or $0.9 million, as  compared to fiscal 2009, due to higher gains earned on the mix of vessels sold. Dispositions of vessels can  vary from quarter to quarter; therefore, gains on sales of assets may fluctuate significantly from period to  period. The company recorded impairment charges of $3.1 million and $1.4 million during fiscal 2010 and  2009, respectively, on certain stacked vessels, which are included in gains on asset dispositions, net. International Segment . Vessel day rates for the international segment moved higher during fiscal 2009,  largely due to an increase in drilling activity in the international markets. In 2008, capital spending budgets  for exploration and production were based on strong crude oil pricing that occurred during the first half of  calendar year 2008. The price of crude oil peaked at $147 per barrel in mid-July 2008 but fell to around the  $48 to $52 price range around mid-April 2009. OPEC responded to falling crude prices by cutting production  in an effort to stabilize prices. It was unknown at the time whether crude oil prices would stabilize at levels  that would support significant levels of exploration and production spending by oil and gas companies.  Demand for the company’s vessels in the various international markets was strong during most of fiscal  2009 and began showing some signs of weakening as the fiscal year ended.  -37-  Fiscal 2009 Compared to Fiscal 2008  General Market Conditions 