that it should be able to maintain adequate insurance in the future at rates considered commercially  acceptable, it cannot guarantee such with the current level of uncertainty in the markets the company  operates. The company’s wholly-owned subsidiary, Quality Shipyards, L.L.C., performs both repair work and new  construction work for outside customers, as well as the construction, repair and modification of the  company’s own vessels. The shipyard operations require raw materials, such as alloy steels in various  forms, welding gases, paint, fuels and lubricants, which are available from many sources. The shipyard  does not depend on any one supplier or source for any of these materials. Although shortages for some of  these materials and fuels have occurred from time to time, no material shortage currently exists nor does  the shipyard anticipate any shortages. The commodity price for iron ore, the main component of steel, is  typically volatile, and shortages may occur from time to time.  The company’s global vessel fleet generally has its highest utilization rates in the warmer months when the  weather is more favorable for offshore exploration, field development and construction work. The company’s  U.S. GOM operations can be impacted by the Atlantic hurricane season from the months of June through  November, when offshore exploration, field development and construction work tends to slow or halt in an  effort to mitigate potential losses and damage that may occur to the offshore oil and gas infrastructure  should a hurricane enter the U.S. GOM. However, demand for offshore marine vessels typically increases in  the U.S. GOM in connection with repair and remediation work that follows any hurricane damage to offshore  crude oil and natural gas infrastructure. The company’s vessels that operate in Southeast Asia and Pacific  are impacted by the monsoon season, which moves across the region between September and early  March. The company’s business volume is more dependent on crude oil and natural gas prices and global supply  and demand conditions for the company's offshore marine services than any seasonal variation.  As of March 31, 2010, the company had approximately 7,900 employees worldwide. The company strives to  maintain excellent relations with its employees. The company is not a party to any union contract in the  United States but through several subsidiaries is a party to union agreements covering local nationals in  several countries other than the United States. In the past, the company has been the subject of a union  organizing campaign for the U.S. GOM employees by maritime labor unions. These union organizing efforts  have abated, although the threat has not been completely eliminated. If the employees in the U.S. GOM  were to unionize, the company’s flexibility in managing industry changes in the domestic market could be  adversely affected. Employees Seasonality  Raw Materials  -14- 