Contractual Obligations and Contingent Commitments  Contractual Obligations  Letters of Credit and Surety Bonds Off-Balance Sheet Arrangements  Fiscal 2010 Sale/Leaseback  -55-  Under the sale/leaseback agreements, the company has the option to purchase the six vessels at 75% of  the original sales price or cause the owners to sell the vessels whereby the company guarantees  approximately 84% of the original lease value to the third-party companies. The company may repurchase  the vessels prior to the end of the charter term with penalties of up to 5% assessed if purchased in years  The sale/leaseback transactions resulted in proceeds of approximately $101.8 million and a deferred gain of  $39.6 million. The carrying value of the six vessels was $62.2 million at the dates of sale. The leases on the  five vessels sold in June 2009 will expire on June 30, 2014, and the lease on the vessel sold in July 2009  will expire on July 30, 2014. The company is accounting for the transactions as sale/leaseback transactions  with operating lease treatment and will expense periodic lease payments over the five year charter hire  operating lease terms. In June 2009, the company sold five vessels to four unrelated third-party companies, and simultaneously  entered into bareboat charter agreements with the respective companies. In July 2009, the company sold  an additional vessel to an unrelated third-party company, and simultaneously entered into bareboat charter  agreements with the respective company.  In the ordinary course of business, the company had other commitments that the company is contractually  obligated to fulfill with cash should the obligations be called. These obligations include standby letters of  credit and surety bonds that guarantee our performance as it relates to our vessel contracts, insurance,  customs and other obligations in various jurisdictions. While these obligations are not normally called, the  obligation could be called by the beneficiaries at any time before the expiration date should the company  breach certain contractual and/or performance or payment obligation. As of March 31, 2010, the company  had $52.1 million of outstanding standby letters of credit and surety bonds. The obligations that are the  subject of these surety bonds and standby letters of credit are geographically concentrated in Nigeria and  Mexico.  (A) These amounts represent the liability for unrecognized tax benefits under FIN 48. The following table summarizes the company’s consolidated contractual obligations as of March 31, 2010  and the effect such obligations, inclusive of interest costs, are expected to have on the company’s liquidity  and cash flows in future periods. (In thousands) Payments Due by Fiscal Year More Than Total 2011 2012  2013 2014 2015 5 Years Principal payments on long-term debt  $  300,000  25,000  40,000  60,000  140,000  ---  35,000  Interest payments on long-term debt  37,904  12,405  10,970  8,692  3,686  1,613  538  Uncertain tax positions (A) 16,119 1,580 1,951 6,933 2,544 2,650 461 Operating leases  10,028 4,911 3,159 1,628 205 125 --- Bareboat charter leases 80,871 17,626 17,626 17,627 17,609 10,383 --- Purchase obligations 60,606 60,606 --- --- --- --- --- Vessel construction obligations 409,864 273,250 135,362 1,252 --- --- --- Pension and post-retirement obligations 77,911 5,991 6,499 6,943 7,597 7,977 42,904 Total obligations $ 993,303 401,369 215,567 103,075 171,641 22,748 78,903