ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS Fiscal 2010 Business Highlights and Key Focus  -27-  The following discussion and analysis of financial condition and results of operations should be read in  conjunction with the accompanying consolidated financial statements as of March 31, 2010 and 2009 and  for the years ended March 31, 2010, 2009 and 2008 that we included in Item 8 of this Annual Report on  Form 10-K. The following discussion and analysis contains forward-looking statements that involve risks and  uncertainties. The company’s future results of operations could differ materially from its historical results or  or those anticipated in its forward-looking statements as a result of certain factors, including those set forth  under “Risk Factors” in Item 1A and elsewhere in this report. With respect to this section, the cautionary  language applicable to such forward-looking statements described in “Forward-Looking Statements” found  before Item 1 of this report is incorporated by reference into this Item 7. The following discussion should also  be read in conjunction with the Selected Financial Data and the Consolidated Financial Statements and  related disclosures of this report.  During fiscal 2010, the company continued its focus on maintaining its competitive advantages, sustained its  presence in its international markets, and continued to modernize its vessel fleet to generate future earnings  capacity while removing from active service certain traditional vessels that are not currently providing  adequate returns. Key elements of the company’s strategy continue to be the preservation of its strong  financial position and the maintenance of adequate liquidity to fund the expansion of its fleet of newer  vessels. Operating management focused on safe operations and maintaining disciplined cost control.  The company’s strategy contemplates organic growth through the construction of vessels at a variety of  shipyards worldwide and possible acquisitions of vessels and/or other owners and operators of offshore  supply vessels. The company has the largest number of new vessels among its competitors in the industry,  and it also has the largest fleet of older vessels in the industry. Management regularly evaluates alternatives  for its older fleet. The company intends to pursue its long-term fleet replenishment and modernization  strategy on a disciplined basis and, in each case, will carefully consider whether proposed investments and  transactions have the appropriate risk/reward profile. The company’s consolidated net earnings were $259.5 million during fiscal 2010 as compared to  $406.9 million during fiscal 2009, a decrease of approximately 36%, or $147.4 million, due to a  16% decrease in total revenues during the comparative periods and to a $43.7 million, net provision for  Venezuelan operations as disclosed below and in Note 10 of Notes to Consolidated Financial Statements,  an $11.4 million, or $0.22 per common share, proposed settlement with the SEC related to the previously  announced internal investigation as disclosed in Note 10 of Notes to Consolidated Financial Statements,  partially offset by an approximate 8% reduction in vessel operating costs and the reversal of $36.1 million of  accrued income tax liabilities as disclosed below and in Note 3 of Notes to Consolidated Financial  Statements included in Item 8 of this report.  The company recorded $1.2 billion in revenue during fiscal 2010 as compared to the $1.4 billion recorded  during fiscal 2009, a decrease of approximately 16%, or $222.2 million, primarily due to an approximate  eight percentage point reduction in total worldwide fleet utilization resulting from a contraction in customer  spending and activity, and due to the loss of revenue from the seizure of the company’s Venezuelan  operations. The company’s Venezuelan operations contributed $11.3 million of revenues during fiscal 2010  as compared to $61.6 million of revenues contributed during fiscal 2009. Vessel revenues generated by the company’s international segment decreased approximately $160.9 million, or 13%, during fiscal 2010 compared to fiscal 2009, while the vessel revenues generated by  the United States (U.S.) segment decreased approximately $57.3 million, or 39%, during the same  comparative periods. Other marine revenues decreased approximately 12%, or $4.0 million, during the  same comparative periods. International segment vessel operating costs decreased approximately 5%, or  $27.4 million, while the company’s U.S. segment vessel operating costs decreased approximately 34%, or  $28.2 million, during fiscal 2010 as compared to fiscal 2009. The company reduced its vessel operating  costs in reaction to the contraction in spending by our customers. Costs of other marine revenues  decreased approximately 6%, or $1.9 million, during the same comparative periods. A significant portion of  the company's operations is conducted internationally, therefore, the company’s international vessel 