TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008  Fair Value Measurements  The company follows the provisions of Fair Value Measurements and Disclosures, ASC Topic 820, for  financial assets and liabilities that are measured and reported at fair value on a recurring basis. The topic  establishes a hierarchy for inputs used in measuring fair value. Fair value is calculated based on  assumptions that market participants would use in pricing assets and liabilities and not on assumptions  specific to the entity. The statement requires that each asset and liability carried at fair value be classified  into one of the following categories: The company made certain reclassifications to prior period amounts to conform to the current year  presentation. These reclassifications did not have a material effect on the consolidated statement of  financial position, results of operations or cash flows.  The company evaluates subsequent events through the time of our filing on the date we issue financial  statements. From time to time, new accounting pronouncements are issued by the FASB that are adopted by the  company as of the specified effective date. Unless otherwise discussed, management believes that the  impact of recently issued standards, which are not yet effective, will not have a material impact on the  company’s consolidated financial statements upon adoption.  In June 2009, the Financial Accounting Standards Board (FASB) revised Accounting Standards Codification  (ASC) 105, Generally Accepted Accounting Principles (GAAP), to establish a hierarchy of GAAP to identify  the sources of accounting principles and the framework for selecting the principles used in the preparation  of financial statements of nongovernmental entities that are presented in conformity with GAAP in the United  States. Rules and interpretive releases of the SEC under federal securities laws are also sources of  authoritative GAAP for SEC registrants. All guidance contained in the codification carries an equal level of  authority. The amended provisions of ASC 105 are effective for interim and annual periods ending after  September 15, 2009. The company adopted the provisions of ASC 105 effective September 30, 2009, and it  did not have a material impact on the company’s consolidated financial position, results of operations or  cash flows; however, the company is disclosing codification citations in place of corresponding references to  legacy accounting pronouncements.  In May 2009, the FASB issued ASC 855, Subsequent Events, which establishes general standards of  accounting for and disclosure of events that occur after the balance sheet date but before financial  statements are issued or are available to be issued. ASC 855 requires disclosure of the date through which  an entity has evaluated subsequent events and the basis for that date, and is effective for interim and  annual periods ending after June 15, 2009. The company adopted the provisions of ASC 855 effective  June 30, 2009, and it did not have a material impact on the company’s consolidated financial position,  results of operations or cash flows.  F-14 Reclassifications  Subsequent Events  Accounting Pronouncements  Level 1:  Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market based inputs or unobservable inputs that are corroborated by  market data Level 3:  Unobservable inputs that are not corroborated by market data