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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-K
 þ
    
    Annual Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended December 31, 2006
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Transition period from  to
 Commission File Number 0-21086
 Global Industries, Ltd.
  LOUISIANA
(State or Other Jurisdiction of Incorporation or 
Organization)
    
    72-1212563(I.R.S. Employer Identification Number)8000 Global Drive 
Carlyss, Louisiana
(Address of Principal Executive Offices)
    
    70665
(Zip Code)
 (337) 583-5000
  Title of each class
    
    Name of each exchange on which registeredCommon Stock ($0.01 par value)
    
    The NASDAQ Stock Market LLC
  None
 þ o
 o þ
 þ o
 o
  þ o o
 o þ
   DOCUMENTS
INCORPORATED BY REFERENCE




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##### 



INDEX  FORM 10-K
 PART IItem 1.
    
    Business
    
    
    4Item 1A.
    
    Risk Factors
    
    
    10Item 1B.
    
    Unresolved Staff Comments
    
    
    15Item 2.
    
    Properties
    
    
    16Item 3.
    
    Legal Proceedings
    
    
    19Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    20Item (Unnumbered).
    
    Executive Officers of the Registrant
    
    
    21PART IIItem 5.
    
    Market for the Registrants Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
    
    
    23Item 6.
    
    Selected Financial Data
    
    
    24Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    25Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    43Item 8.
    
    Financial Statements and Supplementary DataManagements Report on Internal Control over Financial Reporting
    
    
    44Report of Independent Registered Public Accounting Firm
    
    
    45Consolidated Balance Sheets  December 31, 2006 and 2005
    
    
    48Consolidated Statements of Operations  Years Ended December 31, 2006, 2005, and 2004
    
    
    49Consolidated Statements of Shareholders Equity  Years Ended December 31, 2006, 2005, and 2004
    
    
    50Consolidated Statements of Cash Flows  Years Ended December 31, 2006, 2005, and 2004
    
    
    51Notes to Consolidated Financial Statements
    
    
    52Item 9.
    
    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    83Item 9A.
    
    Controls and Procedures
    
    
    83PART IIIItem 10.
    
    Directors and Executive Officers and Corporate Governance of the Registrant
    
    
    84Item 11.
    
    Executive Compensation
    
    
    84Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    84Item 13.
    
    Certain Relationships and Related Transactions and Director Independence
    
    
    84Item 14.
    
    Principal Accountant Fees and Services
    
    
    84PART IVItem 15.
    
    Exhibits and Financial Statement Schedules
    
    
    85Signatures
    
    
    91Subsidiaries of the RegistrantConsent of Deloitte & Touche LLPSection 302 CertificationSection 302 CertificationSection 906 CertificationSection 906 Certification
  2




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FORWARD-LOOKING STATEMENTS
    
    
    fluctuations in the prices of or demand for oil and gas;
    
    the level of offshore drilling activity;
    
    operating hazards;
    
    industry conditions;
    
    foreign exchange and currency fluctuations;
    
    changes in laws and regulations;
    
    acquisition or divestitures;
    
    environmental matters; and
    
    the availability of capital resources.
  3




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PART I
 
 ITEM 1. BUSINESS
   DESCRIPTION OF OPERATIONS
    
    
    Offshore Construction Services, which includes pipeline construction and platform
installation and removal services; and
    
    Diving Services, which includes diving and marine support services.
  Recent Business Developments
 Tonkawa
 4




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Offshore Construction Services
     Diving Services
  5




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Raw Materials
  Customers and Contracts
   6




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Competition
   Backlog
  Factors Affecting Demand
  
    
    oil and gas prices, along with expectations about future prices;
    
    the cost of exploring for, producing, and delivering oil and gas;
    
    the terms and conditions of offshore leases;
    
    the discovery rates of new oil and gas reserves in offshore areas;
    
    the ability of businesses in the oil and gas industry to raise capital; and
    
    local and international political and economic conditions.
 7




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Patents
 Hercules Chickasaws
 Employees
  Seasonality
  Government Regulation and Environmental Matters
     8




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SEC REPORTING
 www.sec.gov
 www.globalind.com
 9




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##### Table of Contents



ITEM 1A. RISK FACTORS
  Our business is substantially dependent on the level of capital expenditures in the oil and gas
industry and lower capital expenditures will adversely affect our results of operations.
  
    
    the oil and gas industrys ability to economically justify placing discoveries of oil
and gas reserves in production;
    
    the oil and gas industrys need to clear all structures from the lease once the oil and
gas reserves have been depleted; and
    
    weather events, such as major tropical storms.
  Our international operations expose us to additional risks inherent in doing business abroad.
  
    
    currency exchange rate fluctuations, devaluations, and restrictions on currency
repatriation;
    
    unfavorable taxes, tax increases, and retroactive tax claims;
    
    the disruption of operations from labor and political disturbances;
    
    insurrection, war, or acts of terrorism that may disrupt or limit markets;
    
    expropriation or seizure of our property;
    
    nullification, modification, or renegotiation of existing contracts;
    
    regional economic downturns;
    
    import/export quotas and other forms of public and governmental regulation; and
    
    inability to obtain or retain licenses required for operations.
  We are exposed to the substantial hazards and risks inherent in marine construction and our
insurance coverage is limited.
  10




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We depend on significant customers.
  If we are unable to attract and retain skilled workers our business will be adversely affected.
  11




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We may not complete our fixed-price or unit-rate contracts within our original estimates of costs,
which will adversely affect our results.
  Our industry is highly competitive.
   Our debt instruments contain covenants that limit our operating and financial flexibility.
  Critical accounting policies significantly affect our reported financial results and conditions.
  Our internal controls may not be sufficient to achieve all stated goals and objectives; existing
deficiencies may not be adequately remediated.
  12




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We have incurred losses in past years and may incur additional losses in the future which could
adversely effect our operations.
  Compliance with environmental and other governmental regulations could be costly and could
negatively impact our operations.
   Our principal shareholder is able to exercise substantial influence.
  We limit foreign ownership of our company, which could reduce the price of our common stock.
  Provisions in our corporate documents and Louisiana law could delay or prevent a change in control
of our company, even if that change would be beneficial to our shareholders.
  13




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Our business is capital intensive, and our ability to finance our business depends on generating
sufficient cash flow from our operations
  We may experience difficulties resolving claims and variation orders, which may adversely impact
our cash flows.
  There might be delays or cancellation of projects included in our backlog.
  We may experience equipment or mechanical failures, which could increase costs, reduce revenues and
result in penalties for failure to meet project completion requirements.
  Our operations could suffer with the loss of one of our senior officers or other key personnel.
  14




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We operate in countries where corrupt behavior has been known to exist that could impair our
ability to do business in the future or result in significant fines or penalties.
  Our revenues are subject to a significant number of tax regimes, and changes in the tax legislation
or the rules implementing tax legislation or the regulator enforcing those rules or legislation in
any one of these countries could negatively and adversely affect our results of operations.
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  15




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ITEM 2.
    
    PROPERTIES
  Hercules Hercules Hercules Hercules
 Titan 2 Titan 2 Titan 2s
 Chickasaw Chickasaw
 Pioneer Pioneers Pioneer
 REM Commander REM Fortress REM
Fortress REM Commander REM Fortress
 Titan 2 REM Commander REM Fortress
  16




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##### Table of Contents



Chickasaw
    ApproximateSquare Feet
    
    Owned/LeasedLocation
    
    Principal Use
    
    
    or Acreage
    
    (Lease Expiration)Carlyss, LA
    
    Shore base/Corporate Headquarters
    
    
    625
    
    acres
    
    OwnedPort of Iberia, LA
    
    Research and Development Center
    
    
    3,765
    
    sq. ft.
    
    Leased (Mar. 2010)Houston, TX
    
    Office
    
    
    67,059
    
    sq. ft.
    
    Leased (Jul. 2013)Cd. Del Carmen, Mexico
    
    Office/Workshop
    
    
    41,042
    
    sq. ft.
    
    OwnedTema, Ghana
    
    Office/Shore base
    
    
    56,966
    
    sq. ft.
    
    Leased (May 2011)Lagos, Nigeria
    
    Office
    
    
    2,000
    
    sq. ft.
    
    Leased (Mar. 2008)Sharjah, United Arab Emirates
    
    Office/Shore base
    
    
    54,338
    
    sq. ft.
    
    Leased (Monthly)Mumbai, India
    
    Project Management Office
    
    
    4,000
    
    sq. ft.
    
    Leased (Dec. 2008)Bangkok, Thailand
    
    Office
    
    
    11,445
    
    sq. ft.
    
    Leased (Apr. 2008)Batam Island, Indonesia
    
    Shore base
    
    
    45
    
    acres
    
    Leased (Mar. 2028)
 17




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Global Industries, Ltd.
Listing of Major Construction Vessels
 PipelayDerrick
    
    Maximum
    
    MaximumMaximum
    
    Pipe
    
    Water
    
    Year
    
    LivingLength
    
    Lift
    
    Diameter
    
    Depth
    
    Acquired/
    
    QuarterVessel Name
    
    Vessel Type
    
    
    Capability
    
    
    (Feet)
    
    (Tons)
    
    (Inches)
    
    (Feet)
    
    Leased
    
    CapacityTitan 2(1)
    
    Ship
    
    Derrick
    
    
    456
    
    
    
    880
    
    
    
    
    
    
    
    
    
    
    
    2001
    
    
    
    326Hercules
    
    Barge
    
    Pipelay/reel/derrick
    
    
    444
    
    
    
    2,000
    
    
    
    60.00
    
    
    
    10,000
    
    
    
    1995
    
    
    
    191Seminole
    
    Ship
    
    Pipelay/derrick ship
    
    
    424
    
    
    
    800
    
    
    
    48.00
    
    
    
    1,500
    
    
    
    1997
    
    
    
    220Comanche
    
    Barge
    
    Pipelay/derrick
    
    
    400
    
    
    
    1,000
    
    
    
    48.00
    
    
    
    1,500
    
    
    
    1996
    
    
    
    223Shawnee
    
    Barge
    
    Pipelay/derrick
    
    
    400
    
    
    
    860
    
    
    
    48.00
    
    
    
    1,500
    
    
    
    1996
    
    
    
    272Iroquois
    
    Barge
    
    Pipelay
    
    
    400
    
    
    
    250
    
    
    
    60.00
    
    
    
    1,000
    
    
    
    1997
    
    
    
    259DLB 264
    
    Barge
    
    Pipelay/derrick
    
    
    397
    
    
    
    1,000
    
    
    
    60.00
    
    
    
    1,000
    
    
    
    1998
    
    
    
    220DLB 332
    
    Barge
    
    Pipelay/derrick
    
    
    352
    
    
    
    750
    
    
    
    60.00
    
    
    
    1,000
    
    
    
    1998
    
    
    
    208Cheyenne
    
    Barge
    
    Pipelay/bury/derrick
    
    
    350
    
    
    
    800
    
    
    
    36.00
    
    
    
    1,500
    
    
    
    1992
    
    
    
    190Cherokee
    
    Barge
    
    Pipelay/derrick
    
    
    350
    
    
    
    925
    
    
    
    36.00
    
    
    
    1,500
    
    
    
    1990
    
    
    
    183Chickasaw
    
    Barge
    
    Pipelay/reel
    
    
    275
    
    
    
    160
    
    
    
    12.75
    
    
    
    6,000
    
    
    
    1990
    
    
    
    70Sea Constructor
    
    Barge
    
    Pipelay/bury
    
    
    250
    
    
    
    200
    
    
    
    24.00
    
    
    
    400
    
    
    
    1987
    
    
    
    104Pioneer
    
    SWATH (2)
    
    Multi-service
    
    
    200
    
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    1996
    
    
    
    57G/P 37
    
    Barge
    
    Pipelay/bury
    
    
    188
    
    
    
    140
    
    
    
    16.00
    
    
    
    300
    
    
    
    1981
    
    
    
    58
 
 (1)
    
    The Titan 2is leased from a third party under a long-term charter agreement which expires in
August 2013.(2)
    
    Small Waterplane Area Twin Hull vessel Pipeliner 5 Tonkawa
 18




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ITEM 3.
    
    LEGAL PROCEEDINGS
 
     19




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ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  20




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ITEM (Unnumbered). EXECUTIVE OFFICERS OF THE REGISTRANT
   Name
    
    Age
    
    PositionWilliam J. Doré
    
    
    64
    
    
    Chairman of the Board of Directors and Retired Chief Executive OfficerB.K. Chin
    
    
    56
    
    
    Chief Executive Officer and DirectorPeter S. Atkinson
    
    
    59
    
    
    President and Chief Financial OfficerJames J. Doré
    
    
    52
    
    
    Senior Vice President, Eastern HemisphereRussell J. Robicheaux
    
    
    58
    
    
    Chief Administrative Officer and General CounselByron W. Baker
    
    
    50
    
    
    Senior Vice President, the Americas
      21




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22




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PART II
 
 ITEM 5.
    
    MARKET FOR THE REGISTRANTS COMMON EQUITY, RELATED
SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
 Common Stock Trading and Dividends
  High
    
    Low2005First Quarter
    
    $
    10.290
    
    
    $
    7.370Second Quarter
    
    
    10.950
    
    
    
    8.160Third Quarter
    
    
    14.790
    
    
    
    8.690Fourth Quarter
    
    
    14.900
    
    
    
    11.1702006First Quarter
    
    $
    14.550
    
    
    $
    12.050Second Quarter
    
    
    19.810
    
    
    
    14.140Third Quarter
    
    
    18.650
    
    
    
    14.780Fourth Quarter
    
    
    16.940
    
    
    
    12.960
    23




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ITEM 6. SELECTED FINANCIAL DATA
  Year Ended December 31,2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002(in thousands, except per share and ratio data)Revenues
    
    $
    1,234,849
    
    
    $
    688,615
    
    
    $
    463,331
    
    
    $
    459,029
    
    
    $
    461,916Cost of operations
    
    
    887,003
    
    
    
    571,768
    
    
    
    398,875
    
    
    
    455,968
    
    
    
    408,890Gross profit
    
    
    347,846
    
    
    
    116,847
    
    
    
    64,456
    
    
    
    3,061
    
    
    
    53,026Loss on asset impairments
    
    
    8,931
    
    
    
    
    
    
    
    7,173
    
    
    
    
    
    
    
    45,597Provision for Vinci (GTM) litigation
    
    
    (13,699
    )
    
    
    
    
    
    
    
    
    
    
    33,500
    
    
    
    Net gains on asset sales
    
    
    (6,395
    )
    
    
    (5,303
    )
    
    
    (18,246
    )
    
    
    (5,674
    )
    
    
    (1,270
    )Selling, general and administrative expenses
    
    
    71,109
    
    
    
    50,916
    
    
    
    37,923
    
    
    
    37,648
    
    
    
    37,376Operating income
    
    
    287,900
    
    
    
    71,234
    
    
    
    37,606
    
    
    
    (62,413
    )
    
    
    (28,677
    )Interest expense
    
    
    10,787
    
    
    
    10,192
    
    
    
    14,797
    
    
    
    11,434
    
    
    
    16,344Other
    
    
    (8,874
    )
    
    
    (4,972
    )
    
    
    1,647
    
    
    
    (1,562
    )
    
    
    (659
    )Income (loss) from continuing operations
before income taxes
    
    
    285,987
    
    
    
    66,014
    
    
    
    21,162
    
    
    
    (72,285
    )
    
    
    (44,362
    )Income taxes
    
    
    86,242
    
    
    
    31,256
    
    
    
    14,640
    
    
    
    (1,159
    )
    
    
    (8,385
    )Income (loss) from continuing operations, net
of income taxes
    
    
    199,745
    
    
    
    34,758
    
    
    
    6,522
    
    
    
    (71,126
    )
    
    
    (35,977
    )Income from discontinued operations,
net of income taxes (1)
    
    
    
    
    
    
    
    
    
    
    15,910
    
    
    
    2,797
    
    
    
    6,614Net income (loss)
    
    $
    199,745
    
    
    $
    34,758
    
    
    $
    22,432
    
    
    $
    (68,329
    )
    
    $
    (29,363
    )Net income (loss) per diluted shareContinuing operations
    
    $
    1.70
    
    
    $
    0.30
    
    
    $
    0.06
    
    
    $
    (0.71
    )
    
    $
    (0.36
    )Discontinued operations
    
    
    0.00
    
    
    
    0.00
    
    
    
    0.14
    
    
    
    0.03
    
    
    
    0.06Net income (loss)
    
    $
    1.70
    
    
    $
    0.30
    
    
    $
    0.20
    
    
    $
    (0.68
    )
    
    $
    (0.30
    )Ratio of earnings to fixed charges (2)
    
    
    16.7x
    
    
    
    5.6x
    
    
    
    2.1x
    
    
    
    (3
    )
    
    
    (3
    )Total assets (4)
    
    $
    1,070,997
    
    
    $
    844,662
    
    
    $
    743,240
    
    
    $
    620,831
    
    
    $
    701,644Working capital (4)
    
    
    460,126
    
    
    
    232,050
    
    
    
    186,647
    
    
    
    37,321
    
    
    
    75,060Long-term debt, total (4)
    
    
    73,260
    
    
    
    77,220
    
    
    
    81,180
    
    
    
    123,728
    
    
    
    126,657
 
 (1)
    
    Includes the gain on the sale of our Liftboat Division in 2004 of $16.1 million net of tax.(2)
    
    For purposes of computing the ratios of earnings to fixed charges: (1) earnings consist of
income from continuing operations before income taxes plus fixed charges, excluding
capitalized interest, and (2) fixed charges consist of interest expense (including capitalized
interest) and the estimated interest component of rent expense (one-third of total rent
expense). There were no dividends paid or accrued during the periods presented above.(3)
    
    Earnings were inadequate to cover fixed charges by $72.3 million and $44.4 million for 2003
and 2002, respectively.(4)
    
    As of the end of the period. 24




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ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Results of Operations
 General
 Disclosures About Segments of an
Enterprise and Related Information,
    Offshore Construction Services
  25




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Diving Services
  26




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Overview
  27




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Year Ended December 31, 2006 Compared to Year Ended December 31, 2005
 2006
    
    
    2005% of
    
    
    
    
    
    
    % of
    
    
    % ChangeThousands
    
    
    Revenue
    
    
    Thousands
    
    
    Revenue
    
    
    (Unfavorable)Revenues
    
    $
    1,234,849
    
    
    
    100.0
    %
    
    $
    688,615
    
    
    
    100.0
    %
    
    
    79
    %Cost of operations
    
    
    887,003
    
    
    
    71.8
    
    
    
    571,768
    
    
    
    83.0
    
    
    
    (55
    )Gross profit
    
    
    347,846
    
    
    
    28.2
    
    
    
    116,847
    
    
    
    17.0
    
    
    
    198Loss on asset impairments
    
    
    8,931
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    Reduction in litigation provision.
    
    
    (13,699
    )
    
    
    (1.1
    )
    
    
    
    
    
    
    
    
    
    
    Net gain on asset disposal
    
    
    (6,395
    )
    
    
    (0.5
    )
    
    
    (5,303
    )
    
    
    (0.8
    )
    
    
    21Selling, general and
administrative expenses
    
    
    71,109
    
    
    
    5.8
    
    
    
    50,916
    
    
    
    7.4
    
    
    
    (40
    )Operating income
    
    
    287,900
    
    
    
    23.3
    
    
    
    71,234
    
    
    
    10.4
    
    
    
    304Other expense:Interest expense
    
    
    10,787
    
    
    
    0.9
    
    
    
    10,192
    
    
    
    1.5
    
    
    
    (6
    )Other (income)
    
    
    (8,874
    )
    
    
    (0.8
    )
    
    
    (4,972
    )
    
    
    (0.6
    )
    
    
    78Income from continuing operations
before income taxes
    
    
    285,987
    
    
    
    23.2
    
    
    
    66,014
    
    
    
    9.5
    
    
    
    333Income taxes
    
    
    86,242
    
    
    
    7.0
    
    
    
    31,256
    
    
    
    4.5
    
    
    
    (176
    )Income from continuing operations,
net of income taxes
    
    
    199,745
    
    
    
    16.2
    
    
    
    34,758
    
    
    
    5.0
    
    
    
    475Net income
    
    $
    199,745
    
    
    
    16.2
    %
    
    $
    34,758
    
    
    
    5.0
    %
    
    
    475
    %
 Revenues. REM Commander
 Depreciation and Amortization in Cost of Operations.
 Gross Profit.
 Loss on Asset Impairments.
 28




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Reduction in Litigation Provision.
 Selling, General, and Administrative Expenses.
 Other Expense or Income.
 Net Income.
 Segment Information
  Gulf of Mexico Offshore Construction Division
  29




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G/P 37 Pipeliner 5
 Gulf of Mexico Diving
 REM Commander
 Latin America
  30




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West Africa
  Middle East
 Tonkawa
 Asia Pacific
 REM Fortress Hercules REM Fortress Hercules
 31




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##### Table of Contents



Year Ended December 31, 2005 Compared to Year Ended December 31, 2004
 2005
    
    
    2004% of
    
    
    
    
    
    
    % of
    
    
    % ChangeThousands
    
    
    Revenue
    
    
    Thousands
    
    
    Revenue
    
    
    (Unfavorable)Revenues
    
    $
    688,615
    
    
    
    100.0
    %
    
    $
    463,331
    
    
    
    100.0
    %
    
    
    49
    %Cost of operations
    
    
    571,768
    
    
    
    83.0
    
    
    
    398,875
    
    
    
    86.1
    
    
    
    (43
    )Gross profit
    
    
    116,847
    
    
    
    17.0
    
    
    
    64,456
    
    
    
    13.9
    
    
    
    81Loss on asset impairments
    
    
    
    
    
    
    
    
    
    
    7,173
    
    
    
    1.5
    
    
    
    Net gain on asset disposal
    
    
    (5,303
    )
    
    
    (0.8
    )
    
    
    (18,246
    )
    
    
    (3.9
    )
    
    
    (71
    )Selling, general and administrative expenses
    
    
    50,916
    
    
    
    7.4
    
    
    
    37,923
    
    
    
    8.2
    
    
    
    (34
    )Operating income
    
    
    71,234
    
    
    
    10.4
    
    
    
    37,606
    
    
    
    8.1
    
    
    
    89Other expense:Interest expense
    
    
    10,192
    
    
    
    1.5
    
    
    
    14,797
    
    
    
    3.2
    
    
    
    31Other (income)
    
    
    (4,972
    )
    
    
    (0.6
    )
    
    
    1,647
    
    
    
    0.3
    
    
    
    402Income from continuing operations
before taxes
    
    
    66,014
    
    
    
    9.5
    
    
    
    21,162
    
    
    
    4.6
    
    
    
    212Income taxes
    
    
    31,256
    
    
    
    4.5
    
    
    
    14,640
    
    
    
    3.2
    
    
    
    (113
    )Income from continuing operations,
net of taxes
    
    
    34,758
    
    
    
    5.0
    
    
    
    6,522
    
    
    
    1.4
    
    
    
    433Income from discontinued operations,
net of taxes
    
    
    
    
    
    
    
    
    
    
    15,910
    
    
    
    3.4
    
    
    
    Net income
    
    $
    34,758
    
    
    
    5.0
    %
    
    $
    22,432
    
    
    
    4.8
    %
    
    
    55
    %
 Revenues
 Depreciation and Amortization in Cost of Operations.
 Gross Profit. Hercules
 Net Gains on Asset Disposal. Arapaho
 Selling, General and Administrative Expenses.
 32




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##### Table of Contents



Interest Expense .
 Other Expense or Income.
 Income From Continuing Operations, Net of Taxes.
 Segment Information
  Gulf of Mexico Offshore Construction Division
 Hercules Arapaho
 Gulf of Mexico Diving
  Latin America
  33




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##### Table of Contents



West Africa
 Navajo
 Middle East
  Asia Pacific
 Hercules Hercule s
 34




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##### Table of Contents



Industry and Business Outlook
     35




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##### Table of Contents



Liquidity and Capital Resources
 Overview
   Cash Flow
    Long-Term Debt
    36




---



##### Table of Contents



Other Indebtedness and Obligations
  Titan 2 Titan 2
  37




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##### Table of Contents



2007
    
    $
    25,2352008
    
    
    24,3682009
    
    
    22,1532010
    
    
    11,8242011
    
    
    6,610Thereafter
    
    
    2,079Total
    
    $
    92,269
 Off-Balance Sheet Arrangements
  Summary of Contractual Obligations as of December 31, 2006
 Payments due by period(In
Thousands)Less than
    
    
    1-3
    
    
    4-5
    
    
    More thanContractual Obligations
    
    Total
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 yearsLong-Term Debt Principal Only(1)
    
    $
    73,260
    
    
    $
    3,960
    
    
    $
    11,880
    
    
    $
    7,920
    
    
    $
    49,500Long-Term Debt Interest Only
    
    
    53,659
    
    
    
    5,572
    
    
    
    14,884
    
    
    
    8,396
    
    
    
    24,807Operating Lease Obligations  Cancelable(2)
    
    
    40,597
    
    
    
    5,616
    
    
    
    17,690
    
    
    
    13,251
    
    
    
    4,040Operating Lease Obligations  Non-Cancelable(3)
    
    
    92,269
    
    
    
    25,235
    
    
    
    58,345
    
    
    
    7,923
    
    
    
    766Purchase Obligations
    
    
    37,611
    
    
    
    19,128
    
    
    
    18,483
    
    
    
    
    
    
    
    Other Liabilities Reflected on the Registrants Balance Sheet
under GAAP(4)
    
    
    (1,659
    )
    
    
    (253
    )
    
    
    (641
    )
    
    
    (592
    )
    
    
    (173
    )Total
    
    $
    295,737
    
    
    $
    59,258
    
    
    $
    120,641
    
    
    $
    36,898
    
    
    $
    78,940
 
 (1)
    
    For more information regarding our Long-term Debt Obligations, including interest payments, please see Note 6 to the Notes to Consolidated Financial Statements
included elsewhere in this Annual Report.(2)
    
    Represents the Titan 2lease. For more information regarding this lease, please see Note 7 to the Notes to Consolidated Financial Statements included elsewhere in this
Annual Report.(3)
    
    Includes the minimum charter payments related to two newly built DSVs which were delivered in 2006 under long-term charter agreements.(4)
    
    The amount shown as due in less than one year is included in the balance of other accrued liabilities. 38




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##### Table of Contents



Liquidity Outlook
    39




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##### Table of Contents



Recent Accounting Pronouncements
 Accounting for Uncertainty in Income Taxes  an interpretation of FASB Statement No. 109 Accounting for Income Taxes.
 Fair Value Measurements
 Guidance on
Materiality
 The Fair Value Option for Financial Assets and
Financial Liabilities
 40




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##### Table of Contents



Critical Accounting Policies and Estimates
  Revenue Recognition
    Receivables
  Property and Equipment
  41




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##### Table of Contents



Goodwill
  Income Taxes
   Accounting for Contingencies
 42




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##### Table of Contents



ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
     Accounting for Derivative Instruments and Hedging
Activities
   43




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##### Table of Contents



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
   Internal Control  Integrated Framework
 Internal Control  Integrated Framework
  /s/ B.K. CHIN
    
    /s/ PETER S. ATKINSONB.K. Chin
Chief Executive Officer
    
    Peter S. Atkinson
President and Chief Financial OfficerCarlyss,
Louisiana
March 1, 2007
 44




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 Internal Control-Integrated Framework
   45




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##### Table of Contents



Internal Control-Integrated Framework Internal Control-Integrated Framework
 Share-Based Payments
 DELOITTE & TOUCHE LLP
 46




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Share-Based Payment
 Internal Control-Integrated
Framework
 DELOITTE
& TOUCHE LLP
 47




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##### Table of Contents



GLOBAL INDUSTRIES, LTD.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
 December 31,2006
    
    
    2005ASSETSCurrent AssetsCash and cash equivalents
    
    $
    352,178
    
    
    $
    127,138Restricted cash
    
    
    1,073
    
    
    
    1,477Accounts receivable  net of allowance of $17,203 for 2006
and $7,757 for 2005
    
    
    197,258
    
    
    
    168,781Unbilled work on uncompleted contracts
    
    
    90,980
    
    
    
    76,291Contract costs incurred not yet recognized
    
    
    22,721
    
    
    
    34,076Deferred income taxes
    
    
    2,781
    
    
    
    14,158Prepaid expenses and other
    
    
    16,147
    
    
    
    34,448Total current assets
    
    
    683,138
    
    
    
    456,369Property and Equipment, net
    
    
    316,876
    
    
    
    330,402Other AssetsAccounts receivable  long-term
    
    
    7,731
    
    
    
    Deferred charges, net
    
    
    19,862
    
    
    
    19,125Deferred income taxes
    
    
    2,711
    
    
    
    Goodwill, net
    
    
    37,388
    
    
    
    37,388Other
    
    
    3,291
    
    
    
    1,378Total other assets
    
    
    70,983
    
    
    
    57,891Total
    
    $
    1,070,997
    
    
    $
    844,662LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesCurrent maturities of long term debt
    
    $
    3,960
    
    
    $
    3,960Accounts payable
    
    
    127,009
    
    
    
    106,348Employee-related liabilities
    
    
    25,643
    
    
    
    16,170Income taxes payable
    
    
    38,092
    
    
    
    25,726Accrued interest payable
    
    
    2,134
    
    
    
    2,249Advance billings on uncompleted contracts
    
    
    4,557
    
    
    
    21,308Litigation liability provision
    
    
    
    
    
    
    34,911Other accrued liabilities
    
    
    21,617
    
    
    
    13,647Total current liabilities
    
    
    223,012
    
    
    
    224,319Long-Term Debt
    
    
    69,300
    
    
    
    73,260Deferred Income Taxes
    
    
    51,714
    
    
    
    49,491Other Liabilities
    
    
    1,406
    
    
    
    787Commitments and Contingencies
    
    
    
    
    
    
    Shareholders EquityCommon stock, $0.01 par value, 150,000 authorized, and 116,252 and 114,344
shares issued and outstanding at December 31, 2006 and 2005, respectively
    
    
    1,162
    
    
    
    1,144Additional paid-in capital
    
    
    379,297
    
    
    
    350,550Retained earnings
    
    
    353,834
    
    
    
    154,089Treasury stock at cost, 25 in 2006 and none in 2005
    
    
    (644
    )
    
    
    Accumulated other comprehensive loss
    
    
    (8,084
    )
    
    
    (8,978
    )Total shareholders equity
    
    
    725,565
    
    
    
    496,805Total
    
    $
    1,070,997
    
    
    $
    844,662
  48




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##### Table of Contents



GLOBAL INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 Year Ended December 31,2006
    
    
    2005
    
    
    2004Revenues
    
    $
    1,234,849
    
    
    $
    688,615
    
    
    $
    463,331Cost of operations
    
    
    887,003
    
    
    
    571,768
    
    
    
    398,875Gross profit
    
    
    347,846
    
    
    
    116,847
    
    
    
    64,456Loss on asset impairments
    
    
    8,931
    
    
    
    
    
    
    
    7,173Reduction in litigation provision
    
    
    (13,699
    )
    
    
    
    
    
    
    Net gain on asset disposal
    
    
    (6,395
    )
    
    
    (5,303
    )
    
    
    (18,246
    )Selling, general and administrative expenses
    
    
    71,109
    
    
    
    50,916
    
    
    
    37,923Operating income
    
    
    287,900
    
    
    
    71,234
    
    
    
    37,606Other expense (income):Interest expense
    
    
    10,787
    
    
    
    10,192
    
    
    
    14,797Other, net
    
    
    (8,874
    )
    
    
    (4,972
    )
    
    
    1,647Income from continuing operations before income taxes
    
    
    285,987
    
    
    
    66,014
    
    
    
    21,162Income taxes
    
    
    86,242
    
    
    
    31,256
    
    
    
    14,640Income from continuing operations, net of income taxes
    
    
    199,745
    
    
    
    34,758
    
    
    
    6,522Income from discontinued operations, net of income taxes
    
    
    
    
    
    
    
    
    
    
    15,910Net income
    
    $
    199,745
    
    
    $
    34,758
    
    
    $
    22,432Basic earnings per common share:Earnings from continuing operations
    
    $
    1.73
    
    
    $
    0.31
    
    
    $
    0.06Earnings from discontinued operations
    
    $
    0.00
    
    
    $
    0.00
    
    
    $
    0.15Basic earnings per share
    
    $
    1.73
    
    
    $
    0.31
    
    
    $
    0.21Diluted earnings per common share:Earnings from continuing operations
    
    $
    1.70
    
    
    $
    0.30
    
    
    $
    0.06Earnings from discontinued operations
    
    $
    0.00
    
    
    $
    0.00
    
    
    $
    0.14Diluted earnings per share
    
    $
    1.70
    
    
    $
    0.30
    
    
    $
    0.20
  49




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GLOBAL INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
(In thousands, except share data)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-In
    
    
    Treasury
    
    
    Comprehensive
    
    
    RetainedShares
    
    
    Amount
    
    
    Capital
    
    
    Stock
    
    
    Loss
    
    
    Earnings
    
    
    TotalBalance at Jan. 1, 2004
    
    
    101,282,097
    
    
    $
    1,013
    
    
    $
    288,137
    
    
    $
    
    
    
    $
    (8,978
    )
    
    $
    96,899
    
    
    $
    377,071Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,432
    
    
    
    22,432Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    623
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    623Restricted stock issues, net
    
    
    2,014,403
    
    
    
    20
    
    
    
    380
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    400Exercise of stock options
    
    
    438,876
    
    
    
    4
    
    
    
    1,444
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,448Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    263
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    263Common stock issued
    
    
    9,614,782
    
    
    
    96
    
    
    
    48,395
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48,491Balance at Dec. 31, 2004
    
    
    113,350,158
    
    
    $
    1,133
    
    
    $
    339,242
    
    
    $
    
    
    
    $
    (8,978
    )
    
    $
    119,331
    
    
    $
    450,728Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34,758
    
    
    
    34,758Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    2,836
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,836Restricted stock issues, net
    
    
    (143,864
    )
    
    
    
    
    
    
    455
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    455Exercise of stock options
    
    
    1,015,633
    
    
    
    10
    
    
    
    6,720
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,730Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    763
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    763Common stock issued
    
    
    121,734
    
    
    
    1
    
    
    
    534
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    535Balance at Dec. 31, 2005
    
    
    114,343,661
    
    
    $
    1,144
    
    
    $
    350,550
    
    
    $
    
    
    
    $
    (8,978
    )
    
    $
    154,089
    
    
    $
    496,805Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    199,745
    
    
    
    199,745Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    9,721
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,721Restricted stock issues, net
    
    
    760,277
    
    
    
    7
    
    
    
    5,446
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,453Exercise of stock options
    
    
    1,053,042
    
    
    
    10
    
    
    
    9,210
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,220Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    3,690
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,690Common stock issued
    
    
    95,431
    
    
    
    1
    
    
    
    680
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    681Treasury Stock purchased
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (644
    )
    
    
    
    
    
    
    
    
    
    
    (644
    )Unrealized gain on foreign currency hedges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    894
    
    
    
    
    
    
    
    894Balance at Dec. 31, 2006
    
    
    116,252,411
    
    
    $
    1,162
    
    
    $
    379,297
    
    
    $
    (644
    )
    
    $
    (8,084
    )
    
    $
    353,834
    
    
    $
    725,565
  50




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GLOBAL INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended December 31,2006
    
    
    2005
    
    
    2004Cash Flows From Operating ActivitiesIncome from continuing operations
    
    $
    199,745
    
    
    $
    34,758
    
    
    $
    6,522Adjustments to reconcile net income to net cash provided by (used in)
operating activities:Depreciation and non-stock-based amortization
    
    
    51,190
    
    
    
    49,861
    
    
    
    46,832Stock-based compensation expense
    
    
    15,173
    
    
    
    3,268
    
    
    
    1,047Provision for doubtful accounts
    
    
    29,010
    
    
    
    5,223
    
    
    
    1,777Gain on sale or disposal of property and equipment
    
    
    (6,395
    )
    
    
    (5,303
    )
    
    
    (18,247
    )Loss on asset impairments
    
    
    8,931
    
    
    
    
    
    
    
    7,173Reduction in litigation provision
    
    
    (13,699
    )
    
    
    
    
    
    
    Deferred income taxes
    
    
    11,003
    
    
    
    4,487
    
    
    
    21,569Tax penalties, fees, and adjustments
    
    
    3,267
    
    
    
    2,500
    
    
    
    Excess tax benefits from stock-based compensation
    
    
    (3,690
    )
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    455Changes in operating assets and liabilities
    
    
    
    
    
    
    
    
    
    
    Accounts receivable, unbilled work, and contract costs
    
    
    (67,617
    )
    
    
    (153,288
    )
    
    
    (14,240
    )Prepaid expenses and other
    
    
    16,389
    
    
    
    (8,860
    )
    
    
    (4,392
    )Accounts payable, employee-related liabilities and
other accrued liabilities
    
    
    38,723
    
    
    
    74,259
    
    
    
    29,776Deferred dry-docking costs incurred
    
    
    (13,895
    )
    
    
    (10,386
    )
    
    
    (14,344
    )Litigation settlement payment
    
    
    (22,050
    )
    
    
    
    
    
    
    Net cash provided by continuing operations
    
    
    246,085
    
    
    
    (3,481
    )
    
    
    63,928Net cash used in discontinued operations
    
    
    
    
    
    
    
    
    
    
    (11,966
    )Net cash provided by (used in) operating activities
    
    
    246,085
    
    
    
    (3,481
    )
    
    
    51,962Cash Flows From Investing ActivitiesProceeds from the sale of assets
    
    
    13,431
    
    
    
    9,176
    
    
    
    23,575Additions to property and equipment
    
    
    (42,450
    )
    
    
    (23,392
    )
    
    
    (4,384
    )Decrease in (additions to) restricted cash
    
    
    404
    
    
    
    (1,477
    )
    
    
    Net cash provided by (used in) continuing operations
    
    
    (28,615
    )
    
    
    (15,693
    )
    
    
    19,191Net cash provided by discontinued operations
    
    
    
    
    
    
    
    
    
    
    53,460Net cash provided by (used in) investing activities
    
    
    (28,615
    )
    
    
    (15,693
    )
    
    
    72,651Cash Flows From Financing ActivitiesProceeds from the sale of common stock, net
    
    
    9,220
    
    
    
    7,720
    
    
    
    50,621Additions to deferred charges
    
    
    (736
    )
    
    
    (609
    )
    
    
    (5,152
    )Repayment of long-term debt
    
    
    (3,960
    )
    
    
    (3,960
    )
    
    
    (191,549
    )Repurchase of common stock
    
    
    (644
    )
    
    
    
    
    
    
    Proceeds from long-term debt
    
    
    
    
    
    
    
    
    
    
    149,000Excess tax benefits from stock-based compensation
    
    
    3,690
    
    
    
    
    
    
    
    Net cash provided by financing activities
    
    
    7,570
    
    
    
    3,151
    
    
    
    2,920Cash and Cash EquivalentsIncrease (decrease)
    
    
    225,040
    
    
    
    (16,023
    )
    
    
    127,533Beginning of period
    
    
    127,138
    
    
    
    143,161
    
    
    
    15,628End of period
    
    $
    352,178
    
    
    $
    127,138
    
    
    $
    143,161
  51




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##### Table of Contents



GLOBAL INDUSTRIES, LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Organization and Summary of Significant Accounting Policies
 Organization
 Principles of Consolidation
 Cash and Cash Equivalents
 Receivables accounts receivable accounts receivable, accounts
receivable  long term unbilled work on uncompleted contracts contract costs incurred not yet recognized
 accounts receivable unbilled work on uncompleted contracts
 Property and Equipment
 52




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##### Table of Contents



Marine barges, vessels and related equipment
    
    
    5
    
    
    
    
    
    
    25 yearsMachinery and equipment
    
    
    5
    
    
    
    
    
    
    18 yearsTransportation equipment
    
    
    3
    
    
    
    
    
    
    10 yearsFurniture and fixtures
    
    
    2
    
    
    
    
    
    
    12 yearsBuildings and leasehold improvements
    
    
    3
    
    
    
    
    
    
    40 years
  Interest Capitalization
 Deferred Charges
 Goodwill
 Contracts in Progress and Revenue Recognition Accounting for Performance of Construction Type and Certain Production Type Contracts
  Impairment of Long-Lived Assets Accounting for the Impairment or Disposal of
Long-lived Assets,
 53




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##### Table of Contents



Derivatives and Other Financial Instruments Accounting for Derivative Instruments and Hedging Activities,
 prepaid
expenses and other other non-current assets
  Foreign Currency Translation
 Stock-Based Compensation Share-Based Payment
 Income Taxes
 54




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##### Table of Contents



Concentration of Credit Risk
 Use of Estimates
 Basic and Diluted Earnings Per Share 
 55




---



##### Table of Contents



Recent Accounting Pronouncements  Accounting for Uncertainty in Income Taxes  an
interpretation of FASB Statement No. 109 Accounting for Income Taxes.
 Fair Value Measurements
 Guidance on
Materiality
 The Fair Value Option for Financial Assets and
Financial Liabilities
 Reclassifications 
 2. Stock-Based Compensation
   56




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##### Table of Contents



Transition Election Related to Accounting for the Tax
Effect of Share-Based Payment Awards
 57




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##### Table of Contents



Pro Forma Information
 Twelve
    
    
    TwelveMonths Ended
    
    
    Months EndedDecember 31,
    
    
    December 31,2005
    
    
    2004(In thousands except per share amounts)Net income
    
    $
    34,758
    
    
    $
    22,432Add: Recognized stock compensation expense,
net of taxes
    
    
    2,027
    
    
    
    22Less: SFAS 123R pro forma stock compensation expense
net of taxes
    
    
    (2,793
    )
    
    
    (4,911
    )Pro-forma net income
    
    $
    33,992
    
    
    $
    17,543As reported:Basic
    
    $
    0.31
    
    
    $
    0.21Diluted
    
    $
    0.30
    
    
    $
    0.20Pro forma:Basic
    
    $
    0.31
    
    
    $
    0.16Diluted
    
    $
    0.29
    
    
    $
    0.16
  Method Used to Determine Actual and Pro FormaAward Type
    
    Compensation Cost for Prior YearsStock Options:
    
    Estimated using the Black-Scholes Option Valuation method (Pro forma)Time-based Restricted Stock:
    
    Measured using fair value on the grant date (Actual)Performance Shares:
    
    Initially measured using fair value and expected
achievement levels on the date of grant.
Compensation cost is then periodically adjusted to
reflect changes in market prices and achievement
through the settlement date (Actual)
 58




---



##### Table of Contents



2005
    
    2004Expected life in years
    
    6 years
    
    5.4 yearsInterest rate
    
    
    4.54
    %
    
    
    2.74
    %Volatility
    
    
    46.59
    %
    
    
    50.15
    %Forfeiture rate
    
    Actual
    
    ActualExpected dividends
    
    
    -0-
    
    
    
    -0-
  Award Type
    
    Method Used to Determine 2006 Compensation CostStock Options:
    
    Estimated using the Black-Scholes Option
Valuation method in accordance with SFAS 123RTime-based Restricted Stock:
    
    Measured using fair value on the grant date
Forfeitures assumed to be 12 %Performance Shares/Units:
    
    Performance shares/units are segregated
between those shares which are earned based
upon a market condition and those which are
earned based upon other criteria. Performance
shares/units which are dependent upon a market
condition are measured using the fair value at
the date of grant and a 100% expected
achievement level. The fair value of the
market based awards is based upon a Monte
Carlo Simulation. Performance shares/units
which have no market-based earnings criteria
are initially measured using fair value at
date of award and expected achievement levels
on date of grant. Compensation cost is then
periodically adjusted to reflect changes in
expected achievement through the settlement
date.
  Quarter Ended
    
    Quarter Ended
    
    Quarter Ended
    
    Quarter EndedDecember 31,
    
    September 30,
    
    June 30,
    
    March 312006
    
    2006
    
    2006
    
    2006Expected life in years
    
    6 years
    
    6 years
    
    6 years
    
    6 yearsInterest rate
    
    
    4.68
    %
    
    
    4.61
    %
    
    
    5.15
    %
    
    
    4.98
    %Volatility
    
    
    55.24
    %
    
    
    56.75
    %
    
    
    58.70
    %
    
    
    54.82
    %Forfeiture rate
    
    
    25.00
    %
    
    
    25.00
    %
    
    
    25.00
    %
    
    
    25.00
    %Expected dividends
    
    
    -0-
    
    
    
    -0-
    
    
    
    -0-
    
    
    
    -0-
  59




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##### Table of Contents



STOCK OPTIONS
 Outstanding Options Year Ended December 31, 2006Weighted
    
    
    Remaining
    
    
    AggregateAverage
    
    
    Average
    
    
    IntrinsicExercise
    
    
    Contractual
    
    
    ValueShares
    
    
    Price
    
    
    Life (Years)
    
    
    (In thousands)Outstanding at December 31, 2005
    
    
    4,459,050
    
    
    $
    10.14Granted
    
    
    1,086,300
    
    
    
    13.07Forfeited or expired
    
    
    (262,990
    )
    
    
    11.91Exercised
    
    
    (1,073,603
    )
    
    
    9.03Outstanding at December 31, 2006
    
    
    4,208,757
    
    
    $
    11.06
    
    
    
    5.0
    
    
    $
    11,072Exercisable at December 31, 2006
    
    
    2,938,957
    
    
    $
    10.76
    
    
    
    3.6
    
    
    $
    8,885
   Non-Vested OptionsYear Ended December 31, 2006WeightedAverageGrant DateShares
    
    
    Fair ValueOutstanding at December 31, 2005
    
    
    782,990
    
    
    $
    7.88Vested
    
    
    (442,220
    )
    
    
    8.63Forfeited or expired
    
    
    (157,270
    )
    
    
    10.12Granted
    
    
    1,086,300
    
    
    
    13.07Outstanding at December 31, 2006
    
    
    1,269,800
    
    
    $
    11.78
  60




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##### Table of Contents



TIME- BASED RESTRICTED STOCK
 Non-Vested Outstanding Shares Year Ended December 31, 2006Weighted
    
    
    RemainingAverage
    
    
    Average
    
    
    AggregateGrant Date
    
    
    Contractual
    
    
    ValueShares
    
    
    Fair Value
    
    
    Life (Years)
    
    
    (In thousands)Outstanding at December 31, 2005
    
    
    846,174
    
    
    $
    6.75Granted
    
    
    912,981
    
    
    
    14.97Forfeited or expired
    
    
    (161,517
    )
    
    
    10.27Vested and released to participants
    
    
    (81,705
    )
    
    
    6.03Outstanding at December 31, 2006
    
    
    1,515,933
    
    
    $
    11.36
    
    
    
    1.66
    
    
    $
    17,224
   PERFORMANCE SHARES
 Non-Vested Outstanding Shares Year Ended December 31, 2006WeightedAverage
    
    
    AggregateGrant Date
    
    
    ValueShares
    
    
    Fair Value
    
    
    (In thousands)Outstanding at December 31, 2005
    
    
    952,000
    
    
    $
    5.72Granted
    
    
    20,000
    
    
    
    15.56Forfeited or expired
    
    
    (100,000
    )
    
    
    5.42Outstanding at December 31, 2006
    
    
    872,000
    
    
    $
    5.98
    
    
    $
    5,211
   61




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##### Table of Contents



PERFORMANCE-BASED UNITS
 Non-Vested Outstanding Units Year Ended December 31, 2006WeightedAverage
    
    
    AggregateGrant Date
    
    
    ValueUnits
    
    
    Fair Value
    
    
    (In thousands)Outstanding at December 31, 2005
    
    
    
    
    
    $
    Granted
    
    
    231,586
    
    
    
    15.11Forfeited or expired
    
    
    (13,400
    )
    
    
    14.41Vested and released to participants
    
    
    
    
    
    
    Outstanding at December 31, 2006
    
    
    218,186
    
    
    $
    15.15
    
    
    $
    3,305
    Non-Employee Director Compensation Plan
  1995 Employee Stock Purchase Plan 
 62




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##### Table of Contents



3. Restricted Cash
  4. Receivables
 Accounts receivable Accounts receivable Accounts receivable  long term
 Costs and Estimated Earnings on Uncompleted Contracts
 December 31,2006
    
    
    2005(In thousands)Costs incurred and recognized on uncompleted contracts
    
    $
    663,381
    
    
    $
    567,266Estimated earnings
    
    
    197,693
    
    
    
    62,038Costs and estimated earnings on uncompleted contracts
    
    
    861,074
    
    
    
    629,304Less: Billings to date
    
    
    (796,353
    )
    
    
    (608,272
    )64,721
    
    
    
    21,032Plus: Accrued revenue(1)
    
    
    21,702
    
    
    
    33,951$
    86,423
    
    
    $
    54,983Included in accompanying balance sheets under the
following captions:Unbilled work on uncompleted contracts
    
    $
    90,980
    
    
    $
    76,291Advance billings on uncompleted contracts
    
    
    (4,557
    )
    
    
    (21,308
    )$
    86,423
    
    
    $
    54,983
 
 (1)
    
    Accrued revenue represents unbilled amounts receivable which are related to work
performed on projects for which the percentage of completion method is not applicable. 63




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##### Table of Contents



5. Property and Equipment
  December 31,2006
    
    
    2005(In thousands)Marine barges, vessels, and related equipment
    
    $
    427,153
    
    
    $
    447,467Machinery and equipment
    
    
    75,079
    
    
    
    67,864Transportation equipment
    
    
    6,459
    
    
    
    6,465Furniture and fixtures
    
    
    11,315
    
    
    
    9,848Buildings and leasehold improvements
    
    
    47,429
    
    
    
    45,533Land
    
    
    6,930
    
    
    
    6,930Construction in progress
    
    
    28,536
    
    
    
    19,334602,901
    
    
    
    603,441Less accumulated depreciation and amortization
    
    
    (286,025
    )
    
    
    (273,039
    )Property and equipment  net
    
    $
    316,876
    
    
    $
    330,402
  64




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##### Table of Contents



6. Financing Arrangements
  December 31,2006
    
    
    2005(In thousands)United States Government Guaranteed
Ship Financing Bonds, 2000 Series dated
February 15, 2000, payable in semi-annual
principal installments of $1,980,000 with a
final installment of $1,980,000 plus
interest at 7.71%, maturing February 15,
2025, collateralized by the Herculesvessel
and related equipment with a net book value
of $90.6 million at December 31, 2006
    
    $
    73,260
    
    
    $
    77,220Revolving line of credit with a syndicate
of commercial banks, interest payable at
variable rates
    
    
    
    
    
    
    Total long-term debt
    
    
    73,260
    
    
    
    77,220Less current maturities
    
    
    3,960
    
    
    
    3,960Long-term debt, less current maturities
    
    $
    69,300
    
    
    $
    73,260
  2007
    
    $
    3,9602008
    
    
    3,9602009
    
    
    3,9602010
    
    
    3,9602011
    
    
    3,960Thereafter
    
    
    53,460Total
    
    $
    73,260
   65




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##### Table of Contents



7. Commitments and Contingencies
 Leases 
 Titan 2 Titan 2
   2007
    
    $
    25,2352008
    
    
    24,3682009
    
    
    22,1532010
    
    
    11,8242011
    
    
    6,610Thereafter
    
    
    2,079Total
    
    $
    92,269
 Legal Proceedings 
 66




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##### Table of Contents




    Construction and Purchases in Progress 
 Guarantees 
 Letters of Credit 
 8. Shareholders Equity
 Authorized Preferred Stock 
 Treasury Stock 
 67




---



##### Table of Contents



9. Losses on Asset Impairment
   68




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##### Table of Contents



Year Ended December 31,Segment
    
    Description of Asset
    
    2006
    
    2004(in thousands)Gulf of Mexico OCD
    
    One MCV(1) & Other
    
    $
    1,415
    
    
    $
    Portion of One Facility
    
    
    
    
    
    
    3,011Gulf of Mexico
Diving
    
    One DSV
    
    
    1,963
    
    
    
    Latin America
    
    Three DSVs
    
    
    1,434
    
    
    
    One Launch Barge
    
    
    
    
    
    
    99West Africa
    
    One MCV
    
    
    
    
    
    
    2,506Middle East
    
    One MCV & Two DSVs
    
    
    4,119
    
    
    
    One Launch Barge
    
    
    
    
    
    
    1,289Corporate
    
    Other
    
    
    
    
    
    
    268Total
    
    
    
    $
    8,931
    
    
    $
    7,173
 
 (1)
    
    Major Construction Vessel 10. Asset Dispositions
 Arapaho
 11. Interest Expense
  69




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##### Table of Contents



12. Other, net
  Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)Interest income
    
    
    (8,169
    )
    
    
    (3,304
    )
    
    
    (976
    )Foreign exchange (gains) and losses, net
    
    
    1,613
    
    
    
    (632
    )
    
    
    2,792Derivative income, net
    
    
    (397
    )
    
    
    
    
    
    
    All other, net
    
    
    (1,921
    )
    
    
    (1,036
    )
    
    
    (169
    )Other expense (income), net
    
    
    (8,874
    )
    
    
    (4,972
    )
    
    
    1,647
  70




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##### Table of Contents



13. Derivative Financial Instruments
 Accounting for
Derivative Instruments and Hedging Activities,
  71




---



##### Table of Contents



14. Income Taxes
  Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)U.S. Federal and State:Current
    
    $
    29,915
    
    
    $
    15,593
    
    
    $
    46Deferred
    
    
    6,882
    
    
    
    4,258
    
    
    
    1,307Foreign:Current
    
    
    44,098
    
    
    
    7,951
    
    
    
    6,187Deferred
    
    
    5,347
    
    
    
    3,454
    
    
    
    7,100Total
    
    $
    86,242
    
    
    $
    31,256
    
    
    $
    14,640
 
 Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)United States
    
    $
    96,989
    
    
    $
    66,439
    
    
    $
    15,678Foreign
    
    
    188,998
    
    
    
    (425
    )
    
    
    5,484Total
    
    $
    285,987
    
    
    $
    66,014
    
    
    $
    21,162
  Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)Taxes at U.S. Federal statutory rate of 35%
    
    $
    100,095
    
    
    $
    23,105
    
    
    $
    7,407Foreign tax credit
    
    
    
    
    
    
    (1,903
    )
    
    
    (594
    )Permanent book to tax differences:Exchange and inflationary gains on foreign
tax filings
    
    
    (157
    )
    
    
    2,425
    
    
    
    1,885Disallowed deductions
    
    
    1,186
    
    
    
    956
    
    
    
    600Interest income on affiliate balances
    
    
    2,197
    
    
    
    805
    
    
    
    665Other permanent differences
    
    
    629
    
    
    
    890
    
    
    
    (129
    )Foreign income taxes at different rates
    
    
    (21,460
    )
    
    
    6,675
    
    
    
    7,724Foreign net operating loss carryforward
valuation allowance
    
    
    2,901
    
    
    
    1,036
    
    
    
    1,753Valuation allowance reversal
    
    
    
    
    
    
    (3,004
    )
    
    
    (4,337
    )Other
    
    
    851
    
    
    
    271
    
    
    
    (334
    )Total
    
    $
    86,242
    
    
    $
    31,256
    
    
    $
    14,640
  72




---



##### Table of Contents



December 31,2006
    
    
    2005(In thousands)Deferred Tax Liabilities:Excess book over tax basis of property and equipment
    
    $
    45,967
    
    
    $
    49,042Deferred charges
    
    
    3,640
    
    
    
    2,908Accounts receivable
    
    
    2,311
    
    
    
    1,772Deferred Tax Assets, Current:GTM litigation accrual (not currently deductible)
    
    
    
    
    
    
    (12,219
    )Net operating loss carryforward
    
    
    (11,208
    )
    
    
    (12,939
    )Valuation allowance
    
    
    10,586
    
    
    
    7,685Accrued liabilities
    
    
    (177
    )
    
    
    (600
    )Allowance for doubtful accounts
    
    
    (316
    )
    
    
    (316
    )Stock-based compensation (not currently deductible)
    
    
    (1,756
    )
    
    
    Deferred Tax Assets, Non-Current:Stock-based compensation (not currently deductible)
    
    
    (2,711
    )Net deferred tax liability
    
    $
    46,336
    
    
    $
    35,333
 Accounting for Contingencies,
  73




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##### Table of Contents



15. Discontinued Operations
 Accounting for the Impairment or Disposal of Long-Lived Assets,
  Year EndedDecember 31,2004(In thousands)Revenues
    
    $
    20,347Income before income taxes (1)
    
    
    29,335Income tax expense
    
    
    13,425Net income from discontinued operations
    
    $
    15,910
 
 (1)
    
    Includes a gain of $29.7 million in 2004 from the gain on the sale of the Liftboat
Division. Year EndedDecember 31,2004(In thousands)Supplemental Cash Flow InformationCash Flows From Operating Activities:Net income from discontinued operations
    
    $
    15,910Adjustments to reconcile net income to net cash used
in operating activities:Depreciation and amortization
    
    
    6,362Gain on sale of assets
    
    
    (29,666
    )Deferred dry-docking cost incurred
    
    
    (4,572
    )Net cash used in discontinued operations
    
    $
    (11,966
    )Cash Flows From Investing Activities:Proceeds from sale of assets
    
    $
    53,583Additions to property and equipment
    
    
    (123
    )Net cash provided by discontinued operations
    
    $
    53,460
 74




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##### Table of Contents



16. Comprehensive Income
  Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)Net income
    
    $
    199,745
    
    
    $
    34,758
    
    
    $
    22,432Other comprehensive (loss) income:Unrealized net gain on foreign currency hedges before taxes
    
    
    1,375
    
    
    
    
    
    
    
    Provision for income taxes
    
    
    (481
    )
    
    
    
    
    
    
    Comprehensive income
    
    $
    200,639
    
    
    $
    34,758
    
    
    $
    22,432
  AccumulatedAccumulated
    
    
    Foreign
    
    
    OtherTranslation
    
    
    Exchange
    
    
    ComprehensiveAdjustment
    
    
    Agreements
    
    
    Income (Loss)(in thousands)Balance at December 31, 2005
    
    $
    (8,978
    )
    
    $
    
    
    
    $
    (8,978
    )Change in value
    
    
    
    
    
    
    821
    
    
    
    821Reclassification of loss to earnings
    
    
    
    
    
    
    73
    
    
    
    73Balance at December 31, 2006
    
    $
    (8,978
    )
    
    $
    894
    
    
    $
    (8,084
    )
 75




---



##### Table of Contents



17. Employee Benefits
    18. Earnings Per Share
  Incomefrom
    
    Weighted-Average SharesContinuing
    
    
    
    
    
    Effect of Dilutive
    
    
    
    
    
    Earnings Per ShareOperatons
    
    Basic
    
    Securities
    
    Diluted
    
    Basic
    
    DilutedYear ended 2006
    
    $
    199,745
    
    
    
    115,632
    
    
    
    1,675
    
    
    
    117,307
    
    
    $
    1.73
    
    
    $
    1.70Year ended 2005
    
    
    34,758
    
    
    
    113,959
    
    
    
    1,113
    
    
    
    115,072
    
    
    
    0.31
    
    
    
    0.30Year ended 2004
    
    
    6,522
    
    
    
    108,746
    
    
    
    790
    
    
    
    109,536
    
    
    
    0.06
    
    
    
    0.06
  76




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##### Table of Contents



19. Industry Segment and Geographic Information
 Disclosures
about Segments of an Enterprise and Related Information
   77




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##### Table of Contents



Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)Total segment revenuesGulf of Mexico OCD
    
    $
    221,027
    
    
    $
    160,591
    
    
    $
    65,076Gulf of Mexico Diving
    
    
    131,288
    
    
    
    64,943
    
    
    
    38,169Latin America
    
    
    500,324
    
    
    
    256,337
    
    
    
    238,986West Africa
    
    
    191,389
    
    
    
    30,360
    
    
    
    7,469Middle East
    
    
    164,266
    
    
    
    76,750
    
    
    
    50,792Asia Pacific
    
    
    90,616
    
    
    
    132,258
    
    
    
    76,702Subtotal
    
    $
    1,298,910
    
    
    $
    721,239
    
    
    $
    477,194Intersegment eliminationsGulf of Mexico OCD
    
    $
    
    
    
    $
    
    
    
    $
    (4,777
    )Gulf of Mexico Diving
    
    
    (45,954
    )
    
    
    (29,880
    )
    
    
    (9,086
    )Latin America
    
    
    (1,218
    )
    
    
    (553
    )
    
    
    West Africa
    
    
    
    
    
    
    
    
    
    
    Middle East
    
    
    (13,660
    )
    
    
    (1,625
    )
    
    
    Asia Pacific
    
    
    (3,229
    )
    
    
    (566
    )
    
    
    Subtotal
    
    $
    (64,061
    )
    
    $
    (32,624
    )
    
    $
    (13,863
    )Consolidated revenues
    
    $
    1,234,849
    
    
    $
    688,615
    
    
    $
    463,331Interest expenseGulf of Mexico OCD
    
    $
    1,212
    
    
    $
    536
    
    
    $
    1,337Gulf of Mexico Diving
    
    
    252
    
    
    
    252
    
    
    
    221Latin America
    
    
    3,502
    
    
    
    3,379
    
    
    
    6,681West Africa
    
    
    1,800
    
    
    
    672
    
    
    
    1,855Middle East
    
    
    1,477
    
    
    
    766
    
    
    
    965Asia Pacific
    
    
    2,940
    
    
    
    4,012
    
    
    
    3,018Over (under) allocated corporate expense
    
    
    (396
    )
    
    
    575
    
    
    
    720Consolidated interest expense
    
    $
    10,787
    
    
    $
    10,192
    
    
    $
    14,797Depreciation and amortization expenseGulf of Mexico OCD
    
    $
    10,304
    
    
    $
    12,674
    
    
    $
    17,931Gulf of Mexico Diving
    
    
    3,606
    
    
    
    2,454
    
    
    
    2,498Latin America
    
    
    8,820
    
    
    
    7,075
    
    
    
    4,390West Africa
    
    
    8,058
    
    
    
    3,617
    
    
    
    3,137Middle East
    
    
    980
    
    
    
    1,872
    
    
    
    3,833Asia Pacific
    
    
    18,763
    
    
    
    19,607
    
    
    
    10,687Corporate
    
    
    15,832
    
    
    
    5,830
    
    
    
    5,403Consolidated depreciation and amortization
    
    $
    66,363
    
    
    $
    53,129
    
    
    $
    47,879
 78




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##### Table of Contents



Year Ended December 31,2006
    
    
    2005
    
    
    2004(in thousands)Income (loss) before taxesGulf of Mexico OCD
    
    $
    55,612
    
    
    $
    41,541
    
    
    $
    13,214Gulf of Mexico Diving
    
    
    51,911
    
    
    
    24,107
    
    
    
    4,613Latin America
    
    
    132,191
    
    
    
    1,437
    
    
    
    30,071West Africa
    
    
    21,671
    
    
    
    (11,279
    )
    
    
    (22,749
    )Middle East
    
    
    17,985
    
    
    
    14,548
    
    
    
    (1,630
    )Asia Pacific
    
    
    (6,589
    )
    
    
    (3,350
    )
    
    
    (2,010
    )Corporate (litigation provision)
    
    
    13,699
    
    
    
    
    
    
    
    Over (under) allocated corporate expenses
    
    
    (493
    )
    
    
    (990
    )
    
    
    (347
    )Consolidated income before taxes
    
    $
    285,987
    
    
    $
    66,014
    
    
    $
    21,162Segment assets at period endGulf of Mexico OCD
    
    $
    128,018
    
    
    $
    191,052
    
    
    $
    211,528Gulf of Mexico Diving
    
    
    84,499
    
    
    
    32,022
    
    
    
    18,104Latin America
    
    
    249,406
    
    
    
    168,646
    
    
    
    126,621West Africa
    
    
    188,028
    
    
    
    63,211
    
    
    
    54,103Middle East
    
    
    35,403
    
    
    
    33,919
    
    
    
    46,700Asia Pacific
    
    
    102,716
    
    
    
    228,088
    
    
    
    118,377Corporate
    
    
    282,927
    
    
    
    127,724
    
    
    
    167,807Consolidated segment assets at period end
    
    $
    1,070,997
    
    
    $
    844,662
    
    
    $
    743,240Expenditures for long-lived assetsGulf of Mexico OCD
    
    $
    1,875
    
    
    $
    374
    
    
    $
    683Gulf of Mexico Diving
    
    
    13,766
    
    
    
    4,812
    
    
    
    1,043Latin America
    
    
    539
    
    
    
    579
    
    
    
    639West Africa
    
    
    1,457
    
    
    
    967
    
    
    
    175Middle East
    
    
    1,112
    
    
    
    1,305
    
    
    
    449Asia Pacific
    
    
    11,840
    
    
    
    8,218
    
    
    
    293Corporate
    
    
    11,861
    
    
    
    7,137
    
    
    
    1,102Consolidated expenditures for long-lived assets
    
    $
    42,450
    
    
    $
    23,392
    
    
    $
    4,384
 79




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##### Table of Contents



Year Ended December 31,2006
    
    
    2005
    
    
    2004(In thousands)Revenues from external customersMexico
    
    $
    500,669
    
    
    $
    259,397
    
    
    $
    242,572United States
    
    
    303,090
    
    
    
    135,817
    
    
    
    80,969India
    
    
    143,485
    
    
    
    40,511
    
    
    
    11,703China
    
    
    54,420
    
    
    
    77,130
    
    
    
    Malaysia
    
    
    26,048
    
    
    
    15,382
    
    
    
    54,409Other
    
    
    207,137
    
    
    
    160,378
    
    
    
    73,678$
    1,234,849
    
    
    $
    688,615
    
    
    $
    463,331Long lived assets at period endUnited States
    
    $
    108,241
    
    
    $
    117,600
    
    
    $
    192,906Foreign areas
    
    
    208,635
    
    
    
    212,802
    
    
    
    151,013$
    316,876
    
    
    $
    330,402
    
    
    $
    343,919
  20. Major Customers
  Year Ended December 31,2006
    
    2005
    
    2004(In thousands)Amount
    
    %
    
    Amount
    
    %
    
    Amount
    
    %Customer A
    
    $
    499,105
    
    
    
    40
    %
    
    $
    245,598
    
    
    
    36
    %
    
    $
    238,986
    
    
    
    52
    %Customer B
    
    
    235,284
    
    
    
    19
    %
    
    
    63,125
    
    
    
    9
    %
    
    
    33,215
    
    
    
    7
    %Customer C
    
    
    133,209
    
    
    
    11
    %
    
    
    13,388
    
    
    
    2
    %
    
    
    
    
    
    
    Customer D
    
    
    56,211
    
    
    
    5
    %
    
    
    78,363
    
    
    
    11
    %
    
    
    
    
    
    
    
  21. Supplemental Disclosures of Cash Flow Information
  Year Ended December 31,2006
    
    2005
    
    2004(In thousands)Cash paid for:Interest, net of amount capitalized
    
    $
    12,772
    
    
    $
    9,282
    
    
    $
    14,235Income taxes
    
    
    55,437
    
    
    
    8,286
    
    
    
    3,608
   80




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##### Table of Contents



22. Related Party Transactions
    81




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##### Table of Contents



24. Interim Financial Information (Unaudited)
  First
    
    Second
    
    Third
    
    Fourth
    
    TotalQuarter
    
    Quarter
    
    Quarter
    
    Quarter
    
    Year(In thousands, except per share amounts)2006Revenues
    
    $
    246,267
    
    
    $
    367,631
    
    
    $
    316,865
    
    
    $
    304,086
    
    
    $
    1,234,849Gross profit
    
    
    48,130
    
    
    
    101,137
    
    
    
    104,838
    
    
    
    93,741
    
    
    
    347,846Income from continuing
operations(1)
    
    
    18,764
    
    
    
    62,383
    
    
    
    63,669
    
    
    
    54,929
    
    
    
    199,745Net income(1)
    
    
    18,764
    
    
    
    62,383
    
    
    
    63,669
    
    
    
    54,929
    
    
    
    199,745Income from continuing operations per
shareBasic(1)
    
    $
    0.16
    
    
    $
    0.54
    
    
    $
    0.55
    
    
    $
    0.47
    
    
    $
    1.73Diluted(1)
    
    $
    0.16
    
    
    $
    0.53
    
    
    $
    0.54
    
    
    $
    0.47
    
    
    $
    1.70Net income per shareBasic(1)
    
    $
    0.16
    
    
    $
    0.54
    
    
    $
    0.55
    
    
    $
    0.47
    
    
    $
    1.73Diluted(1)
    
    $
    0.16
    
    
    $
    0.53
    
    
    $
    0.54
    
    
    $
    0.47
    
    
    $
    1.702005Revenues
    
    $
    137,256
    
    
    $
    209,359
    
    
    $
    168,043
    
    
    $
    173,957
    
    
    $
    688,615Gross profit
    
    
    24,297
    
    
    
    37,534
    
    
    
    25,554
    
    
    
    29,462
    
    
    
    116,847Income from continuing operations
    
    
    7,496
    
    
    
    12,353
    
    
    
    4,833
    
    
    
    10,076
    
    
    
    34,758Net income
    
    
    7,496
    
    
    
    12,353
    
    
    
    4,833
    
    
    
    10,076
    
    
    
    34,758Net income from continuing operations
per shareBasic
    
    $
    0.07
    
    
    $
    0.11
    
    
    $
    0.04
    
    
    $
    0.09
    
    
    $
    0.31Diluted
    
    $
    0.07
    
    
    $
    0.11
    
    
    $
    0.04
    
    
    $
    0.09
    
    
    $
    0.30Net income per shareBasic
    
    $
    0.07
    
    
    $
    0.11
    
    
    $
    0.04
    
    
    $
    0.09
    
    
    $
    0.31Diluted
    
    $
    0.07
    
    
    $
    0.11
    
    
    $
    0.04
    
    
    $
    0.09
    
    
    $
    0.30
 
 (1)
    
    Financial results for the fourth quarter of 2006 include a $4.4 million pre-tax non-cash
impairment charge related to the retirement and impairment of one major construction vessel
and four dive support vessels, a $3.3 million net gain on asset disposals primarily related to
the sale of one cargo barge, and $5.3 million of non-reimbursable expense related to the
relocation of the Hercules from the Asia Pacific region to West Africa. Financial results for
the fourth quarter of 2005 included no impairment charges and an immaterial net gain on asset
disposals. 82




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##### Table of Contents



ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Design and Evaluation of Internal Control Over Financial Reporting
  Changes in Internal Control Over Financial Reporting
  83




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##### Table of Contents



PART III
 
 ITEM 10.
    
    DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANT
  
 ITEM 11.
    
    EXECUTIVE COMPENSATION
  
 ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
  
 ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
  
 ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
  84




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##### Table of Contents



PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)
    
    
    1.
    
    
    
    
    
    
    Financial Statements.Included in Part II of this report.Independent Auditors Report.Consolidated Balance Sheets as of December 31, 2006 and 2005.Consolidated Statements of Operations for the years ended
December 31, 2006, 2005, and 2004.Consolidated Statements of Shareholders Equity for the years
ended December 31, 2006, 2005, and 2004.Consolidated Statements of Cash Flows for the years ended
December 31, 2006, 2005, and 2004.Consolidated Statements of Comprehensive Income (Loss) for the
years ended December 31, 2006, 2005, and 2004.Notes to Consolidated Financial Statements.2.
    
    
    
    
    
    
    Financial Statement Schedules.The following financial statement schedule is included:Schedule II  Valuation and Qualifying Accounts.All other financial statement schedules are omitted because
the information is not required or because the information
required is in the financial statements or notes thereto.3.
    
    
    
    
    
    
    Exhibits.Pursuant to Item 601(B)(4)(iii), the Registrant agrees to
furnish to the Commission, upon request, a copy of any
instrument with respect to long-term debt not exceeding 10% of
the total assets of the Registrant and its consolidated
subsidiaries.The following exhibits are filed as part of this Annual Report:3.1
    
    
    
    
    
    
    Amended and Restated Articles of Incorporation of Registrant
as amended, incorporated by reference to Exhibits 3.1 and 3.3
to the Form S-1 Registration Statement filed by the Registrant
(Reg. No 33-56600).3.2
    
    
    
    
    
    
    Bylaws of Registrant, incorporated by reference to Exhibit 3.2
to the Form S-1 filed by Registrant (Reg. No. 33-56600).4.1
    
    
    
    
    
    
    Form of Common Stock certificate, incorporated by reference to
Exhibit 4.1 to the Form S-1 filed by Registrant (Reg. No.
33-56600).10.1
    
    
    
    
    
    
    Global Industries, Ltd. 1992 Stock Option Plan, incorporated
by reference to Exhibit 10.1 to the Form S-1 filed by
Registrant (Reg. No. 33-56600).10.2
    
    
    
    
    
    
    Global Industries, Ltd. Profit Sharing and Retirement Plan, as
amended, incorporated by reference to Exhibit 10.2 to the Form
S-1 filed by Registrant (Reg. No. 33-56600).10.3
    
    
    
    
    
    
    Agreement of Lease dated May 1, 1992, between SFIC Gulf Coast
Properties, Inc. and Global Pipelines PLUS, Inc., incorporated
by reference to Exhibit 10.6 to the Form S-1 filed by
Registrant (Reg. No. 33-56600).10.4
    
    
    
    
    
    
    Lease Extension and Amendment Agreement dated January 1, 1996,
between Global Industries, Ltd. and William J. Doré relating
to the Lafayette office and adjacent land, incorporated by
reference to Exhibit 10.7 to the Registrants Annual Report on
Form 10-K for the fiscal year ended March 31, 1996.10.5
    
    
    
    
    
    
    Agreement between Global Divers and Contractors, Inc. and
Colorado School of
 85




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##### Table of Contents



Mines, dated October 15, 1991, incorporated
by reference to Exhibit 10.20 to the Form S-1 filed by
Registrant (Reg. No. 33-56600).10.6
    
    
    
    
    
    
    Sublicense Agreement between Santa Fe International
Corporation and Global Pipelines PLUS, Inc. dated May 24,
1990, relating to the Chickasaws reel pipelaying technology,
incorporated by reference to Exhibit 10.21 to the Form S-1
filed by Registrant (Reg. No. 33-56600).10.7
    
    
    
    
    
    
    Non-Competition Agreement and Registration Rights Agreement
between the Registrant and William J. Doré, incorporated by
reference to Exhibit 10.23 to the Form S-1 filed by Registrant
(Reg. No. 33-56600).10.8
    
    
    
    
    
    
    Global Industries, Ltd. Restricted Stock Plan, incorporated by
reference to Exhibit 10.25 to the Form S-1 filed by Registrant
(Reg. No. 33-56600).10.9
    
    
    
    
    
    
    Second Amendment to the Global Industries, Ltd. Profit Sharing
Plan, incorporated by reference to Exhibit 10.19 to the
Registrants Registration Statement on Form S-1 (Reg. No.
33-81322).10.10
    
    
    
    
    
    
    Global Industries, Ltd. 1995 Employee Stock Purchase Plan,
incorporated by reference to Exhibit 10.20 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1995.10.11
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and Hibernia National Bank,
Indenture Trustee, dated as of September 27, 1994,
incorporated by reference to Exhibit 10.22 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1995.10.12
    
    
    
    
    
    
    Amendment to Global Industries, Ltd. 1992 Stock Option Plan,
incorporated by reference to Exhibit 10.23 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1996.10.13
    
    
    
    
    
    
    Amendment to Global Industries, Ltd. 1992 Stock Option Plan,
incorporated by reference to Exhibit 10.23 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1996.10.14
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and First National Bank of
Commerce, Indenture Trustee, dated as of August 15, 1996,
incorporated by reference to Exhibit 10.21 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1997 (SEC File No. 000-21086).10.15
    
    
    
    
    
    
    Form of Indemnification Agreement between the Registrant and
each of the Registrants directors, incorporated by reference
to Exhibit 10.22 to the Registrants Annual Report on Form
10-K for the fiscal year ended March 31, 1997 (SEC File No.
000-21086).10.16
    
    
    
    
    
    
    1996 Amendment to Global Industries, Ltd. 1995 Employee Stock
Purchase Plan, incorporated by reference to Exhibit 10.26 to
the Registrants Annual Report on Form 10-K for the fiscal
year ended March 31, 1997 (SEC File No. 000-21086).10.17
    
    
    
    
    
    
    Amendment Assignment and Assumption of Authorization Agreement
relating to United States Government Ship Financing
obligations between Global Industries, Ltd., shipowner, and
First National Bank of Commerce, Indenture Trustee, dated as
of October 23, 1996, incorporated by reference to Exhibit
10.27 to the Registrants Annual Report on Form 10-K for the
fiscal year ended March 31, 1997 (SEC File No. 000-21086).10.18
    
    
    
    
    
    
    Global Industries, Ltd. 1998 Equity Incentive Plan
incorporated by reference to exhibit 10.28 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1998 (SEC File No. 000-21086).10.19
    
    
    
    
    
    
    Facilities Agreement (related to Carlyss Facility) by and
between the Registrant and Lake Charles Harbor and Terminal
District dated as of November 1, 1997, incorporated by
reference to Exhibit 10.2 to Registrants Quarterly Report on
Form 10-Q for the quarter ended December 31, 1997 (SEC File
No. 000-21086).10.20
    
    
    
    
    
    
    Ground Lease and Lease-Back Agreement (related to Carlyss
Facility) by and between the Registrant and Lake Charles
Harbor and Terminal District dated as of November 1, 1997,
incorporated by reference to Exhibit 10.3 to Registrants
 86




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##### Table of Contents



Quarterly Report on Form 10-Q for the quarter ended December
31, 1997 (SEC File No. 000-21086).10.21
    
    
    
    
    
    
    Pledge and Security Agreement (related to Carlyss Facility) by
and between Registrant and Bank One, Louisiana, National
Association, dated as of November 1, 1997, incorporated by
reference to Exhibit 10.5 to Registrants Quarterly Report on
Form 10-Q for the quarter ended December 31, 1997 (SEC File
No. 000-21086).10.22
    
    
    
    
    
    
    Global Industries, Ltd. Non-Employee Directors Compensation
Plan, incorporated by reference to Exhibit 4.1 to Registrants
Registration Statement on Form S-8 (Reg. No. 333-69949).10.23
    
    
    
    
    
    
    Share Purchase Agreement between Global Industries, Ltd. and
ETPM, S.A., incorporated by reference to Exhibit 2.2 to
Registrants Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 1999 (SEC File No. 000-21086).10.24
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and Wells Fargo Bank, Indenture
Trustee, dated as of February 22, 2000, incorporated by
reference to Exhibit 10.33 to Registrants Annual Report on
Form 10-K for the year ended December 31, 1999.10.25
    
    
    
    
    
    
    Asset Acquisition Agreement by and between Global Industries,
Ltd. and Oceaneering International, Inc. dated as of September
30, 2000, incorporated by reference to Exhibit 10.2 to
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000 (SEC File No. 000-21086).10.26
    
    
    
    
    
    
    2000 Amendment to Global Industries, Ltd. 1998 Equity
Incentive Plan, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended March 31,
2001(SEC File No. 000-21086).10.27
    
    
    
    
    
    
    Severance Agreement dated February 22, 1995 between Global
Industries, Ltd. and James J. Doré, incorporated by reference
to Exhibit 10.2 to Registrants Quarterly Report for the
quarter ended March 31, 2001(SEC File No. 000-21086).10.28
    
    
    
    
    
    
    Second Amended and Restated Credit Agreement dated April 30,
2002 among Global Industries, Ltd. Offshore Mexico, S. DE R.L.
DE C.V., the Lenders and Bank One, NA, as administrative agent
for the Lenders, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended March 31,
2002.10.29
    
    
    
    
    
    
    Credit Agreement Amendment dated January 10, 2003 among Global
Industries, Ltd. Offshore Mexico, S. DE R.L. DE C.V., the
Lenders and Bank One, NA, as administrative agent for the
Lenders, incorporated by reference to Exhibit 10.37 to
registrants Annual Report on Form 10K for the year ended
December 31, 2002.10.30
    
    
    
    
    
    
    $48,000,000 Revolving B termination letter dated February 7,
2003 from Global Industries, Ltd. to Bank One, N.A.,
incorporated by reference to Exhibit 10.38 to registrants
Annual Report on Form 10K for the year ended December 31,
2002.10.31
    
    
    
    
    
    
    Amendment No. 3 and Consent date June 30, 2003 among Global
Industries, Ltd., and Global Offshore Mexico, S. DE R.L. DE
C.V., the Lenders and Bank One, NA, as administrative agent
for the Lenders, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended June 30,
2003.10.32
    
    
    
    
    
    
    Credit Agreement Amendment dated December 29, 2003 among
Global Industries, Ltd. Offshore Mexico, S. DE R.L. DE C.V.,
the Lenders and Bank One, NA, as administrative agent for the
Lenders. (incorporated by reference to Exhibit 10.38 to
registrants Annual Report on Form 10-K for the year ended
December 31, 2003).10.33
    
    
    
    
    
    
    Consent and Waiver dated August 3, 2004 by Global Industries,
Ltd., and Global Offshore Mexico, S. de R.L. de C.V., the
Lenders to the Credit Agreement and Calyon New York Branch, as
administrative agent for the Lender. (incorporated by
reference to Exhibit 10.1 to registrants Quarterly Report on
Form 10-Q for the quarter ended June 30, 2004).10.34
    
    
    
    
    
    
    Amended and restated credit agreement dated August 6, 2004
among Global Industries, Ltd., Global Offshore Mexico, S. de
R.L. de C.V., the Lenders to the
 87




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##### Table of Contents



Credit Agreement and Calyon
New York Branch, as administrative agent for the Lender.
(incorporated by reference to Exhibit 10.2 to registrants
Quarterly Report on Form 10-Q for the quarter ended June 30,
2004).10.35
    
    
    
    
    
    
    Asset Purchase Agreement dated September 2, 2004 by and
between Mercury Offshore Assets, LLC and Global Industries,
Ltd. (incorporated by reference to Exhibit 2.1 to Form 8-K
filed September 8, 2004).10.36
    
    
    
    
    
    
    Act of Cash Sale dated September 22, 2004 by and between
Global Movible Offshore, LLC and Doré Partners, Ltd.
(incorporated by reference to Exhibit 10.1 to Form 8-K filed
September 30, 2004).10.37
    
    
    
    
    
    
    Form of Executive Long-Term Restricted Stock Agreement
(Performance Vesting/POC-TSR Based). (incorporated by
reference to Exhibit 10.1 to Form 8-K filed September 30,
2004).10.38
    
    
    
    
    
    
    Credit Agreement Amendment dated September 30, 2004 among
Global Industries, Ltd. and Global Offshore Mexico, S. DE R.L.
DE C.V., the Lenders and Calyon New York Branch as
administrative agent for the lenders. (incorporated by
reference to Exhibit 10.4 to registrants Quarterly Report on
Form 10-Q for the quarter ended September 30, 2004).10.39
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Management Incentive Plan.
(incorporated by reference to Exhibit 10.40 to registrants
Annual Report on Form 10-K for the year ended December 31,
2004).10.40
    
    
    
    
    
    
    Amended and Restated Credit Agreement Amendment dated March
14, 2005 among Global Industries, Ltd. and Global Offshore
Mexico, S. DE R.L. DE C.V., the Lenders and Calyon New York
Branch as administrative agent for the lenders. (incorporated
by reference to Exhibit 10.41 to registrants Annual Report on
Form 10-K for the year ended December 31, 2004).10.41
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Stock Incentive Plan.
(incorporated by reference to Exhibit 10.42 to registrants
Annual Report on Form 10-K for the year ended December 31,
2004).10.42
    
    
    
    
    
    
    Lease Agreement dated November 10, 2005 between the Company
and Mr. William J. Doré to an office building, warehouse, and
land located in Lafayette, Louisiana. (incorporated by
reference to Exhibit 10.1 to registrants Quarterly Report on
Form 10-Q for the quarter ended September 30, 2005).10.43
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Restricted Stock Agreement Form.
(incorporated by reference to Exhibit 10.1 of registrants
Form 8-K filed November 7, 2005).10.44
    
    
    
    
    
    
    Letter Agreement between the Company and Peter S. Atkinson
dated November 16, 2005. (incorporated by reference to Exhibit
10.1 of registrants Form 8-K filed November 22, 2005).10.45
    
    
    
    
    
    
    Amendment No. 1 to Agreement between the Company and Timothy
W. Miciotto dated June 9, 2005. (incorporated by reference to
Exhibit 10.2 of registrants Form 8-K filed November 22,
2005).10.46
    
    
    
    
    
    
    Resignation and Release Agreement dated December 5, 2005.
(incorporated by reference to Exhibit 10.1 of registrants
Form 8-K filed December 8, 2005).10.47
    
    
    
    
    
    
    Form of Executive Long-term Incentive Performance Unit
Agreement. (incorporated by reference to Exhibit 10.1 of
registrants Form 8-K filed February 22, 2006).10.48
    
    
    
    
    
    
    Form of Non-Employee Director Restricted Stock Agreement dated
May 16, 2006. (incorporated by reference to Exhibit 10.1 of
registrants Form 8-K filed May 22, 2006).10.49
    
    
    
    
    
    
    Trading Plan dated June 5, 2006 between Mr. William J. Doré
and Raymond James Financial authorizing the sale of up to a
maximum six million of his common shares of Global Industries,
Ltd. (incorporated by reference to Exhibit 99.1 of
registrants Form 8-K filed June 6, 2006).10.50
    
    
    
    
    
    
    Third Amended and Restated Credit Agreement dated June 30,
2006 among Global Industries, Ltd. Global Offshore Mexico, S.
de R.L. de C.V., Global Industries International, L.P., the
Lenders and Calyon New York Branch, as administrative agent
for the Lenders. (incorporated by reference to Exhibit 10.1
 88




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##### Table of Contents



of registrants Form 8-K filed July 7, 2006).10.51
    
    
    
    
    
    
    A Settlement Agreement where GLOBAL, VINCI, and ACERGY agree
to release, waive, and extinguish any rights, claims or causes
of action they have or may have against each other, and agree
to dismiss the pending legal proceedings referenced in the
Settlement Agreement. (incorporated by reference to Exhibit
10.1 of registrants Quarterly Report on Form 10-Q for the
quarter ended June 30, 2006).10.52
    
    
    
    
    
    
    Employment Agreement between Global Industries, Ltd. and B. K.
Chin effective as of September 18, 2006. (incorporated by
reference to Exhibit 10.1 of registrants Form 8-K filed
September 22, 2006).10.53
    
    
    
    
    
    
    Retirement Agreement between Global Industries, Ltd. and Mr.
William J. Doré effective as of September 18, 2006.
(incorporated by reference to Exhibit 10.2 of registrants
Form 8-K filed September 22, 2006).*21.1
    
    
    
    
    
    
    Subsidiaries of the Registrant.*23.1
    
    
    
    
    
    
    Consent of Deloitte & Touche LLP.*31.1
    
    
    
    
    
    
    Section 302 Certification of B.K. Chin.*31.2
    
    
    
    
    
    
    Section 302 Certification of Peter S. Atkinson.*32.1
    
    
    
    
    
    
    Section 906 Certification of B.K. Chin.*32.2
    
    
    
    
    
    
    Section 906 Certification of Peter S. Atkinson.
 
 *
    
    Included with this filing. 89




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##### Table of Contents



Global Industries, Ltd.
Schedule II Valuation and Qualifying Accounts
For the Years Ended December 31, 2006, 2005, and 2004
(in thousands)
 Balance at
    
    AdditionsBeginning of
    
    Charged to
    
    Charged to Other
    
    
    
    
    
    Balance atDescription
    
    Period
    
    Costs and Expenses
    
    Accounts
    
    Deductions
    
    End of PeriodYear ended December 31, 2006
Allowances for doubtful accounts
    
    $
    7,757
    
    
    $
    38,323
    
    
    $
    
    
    
    $
    28,877
    
    
    $
    17,203Year ended December 31, 2005
Allowances for doubtful accounts
    
    $
    9,456
    
    
    $
    6,327
    
    
    $
    
    
    
    $
    8,026
    
    
    $
    7,757Year ended December 31, 2004
Allowances for doubtful accounts
    
    $
    11,043
    
    
    $
    17,739
    
    
    $
    
    
    
    $
    19,326
    
    
    $
    9,456
 90




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##### Table of Contents



SIGNATURES
  GLOBAL INDUSTRIES, LTD.By:
    /s/ PETER S. ATKINSONPeter S. AtkinsonPresident and Chief Financial Officer
(Principal Financial and Accounting Officer)   /s/ WILLIAM J. DORÉ

William J. Doré
    
    Chairman of the Board
    
    March 1, 2007/s/ B. K. CHIN

B. K. Chin
    
    Chief Executive Officer and Director
    
    March 1, 2007/s/ PETER S. ATKINSON

Peter S. Atkinson
    
    President, and Chief Financial
Officer (Principal Financial and
Accounting Officer)
    
    March 1, 2007/s/ JOHN A. CLERICO

John A. Clerico
    
    Director
    
    March 1, 2007/s/ EDWARD P. DJEREJIAN

Edward P. Djerejian
    
    Director
    
    March 1, 2007/s/ LARRY E. FARMER

Larry E. Farmer
    
    Director
    
    March 1, 2007/s/ EDGAR G. HOTARD

Edgar G. Hotard
    
    Director
    
    March 1, 2007/s/ RICHARD A. PATTAROZZI

Richard A. Pattarozzi
    
    Director
    
    March 1, 2007/s/ JAMES L. PAYNE

James L. Payne
    
    Director
    
    March 1, 2007/s/ MICHAEL J. POLLOCK

Michael J. Pollock
    
    Director
    
    March 1, 2007/s/ CINDY B. TAYLOR

Cindy B. Taylor
    
    Director
    
    March 1, 2007
 91




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##### Table of Contents



(a)
    
    
    1.
    
    
    
    
    
    
    Financial Statements.Included in Part II of this report.Independent Auditors Report.Consolidated Balance Sheets as of December 31, 2006 and 2005.Consolidated Statements of Operations for the years ended
December 31, 2006, 2005, and 2004.Consolidated Statements of Shareholders Equity for the years
ended December 31, 2006, 2005, and 2004.Consolidated Statements of Cash Flows for the years ended
December 31, 2006, 2005, and 2004.Notes to Consolidated Financial Statements.2.
    
    
    
    
    
    
    Financial Statement Schedules.The following financial statement schedule is included:Schedule II  Valuation and Qualifying Accounts.All other financial statement schedules are omitted because
the information is not required or because the information
required is in the financial statements or notes thereto.3.
    
    
    
    
    
    
    Exhibits.Pursuant to Item 601(B)(4)(iii), the Registrant agrees to
furnish to the Commission, upon request, a copy of any
instrument with respect to long-term debt not exceeding 10% of
the total assets of the Registrant and its consolidated
subsidiaries.The following exhibits are filed as part of this Annual Report:3.1
    
    
    
    
    
    
    Amended and Restated Articles of Incorporation of Registrant
as amended, incorporated by reference to Exhibits 3.1 and 3.3
to the Form S-1 Registration Statement filed by the Registrant
(Reg. No 33-56600).3.2
    
    
    
    
    
    
    Bylaws of Registrant, incorporated by reference to Exhibit 3.2
to the Form S-1 filed by Registrant (Reg. No. 33-56600).4.1
    
    
    
    
    
    
    Form of Common Stock certificate, incorporated by reference to
Exhibit 4.1 to the Form S-1 filed by Registrant (Reg. No.
33-56600).10.1
    
    
    
    
    
    
    Global Industries, Ltd. 1992 Stock Option Plan, incorporated
by reference to Exhibit 10.1 to the Form S-1 filed by
Registrant (Reg. No. 33-56600).10.2
    
    
    
    
    
    
    Global Industries, Ltd. Profit Sharing and Retirement Plan, as
amended, incorporated by reference to Exhibit 10.2 to the Form
S-1 filed by Registrant (Reg. No. 33-56600).10.3
    
    
    
    
    
    
    Agreement of Lease dated May 1, 1992, between SFIC Gulf Coast
Properties, Inc. and Global Pipelines PLUS, Inc., incorporated
by reference to Exhibit 10.6 to




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##### Table of Contents



the Form S-1 filed by Registrant (Reg. No. 33-56600).10.4
    
    
    
    
    
    
    Lease Extension and Amendment Agreement dated January 1, 1996,
between Global Industries, Ltd. and William J. Doré relating
to the Lafayette office and adjacent land, incorporated by
reference to Exhibit 10.7 to the Registrants Annual Report on
Form 10-K for the fiscal year ended March 31, 1996.10.5
    
    
    
    
    
    
    Agreement between Global Divers and Contractors, Inc. and
Colorado School of Mines, dated October 15, 1991, incorporated
by reference to Exhibit 10.20 to the Form S-1 filed by
Registrant (Reg. No. 33-56600).10.6
    
    
    
    
    
    
    Sublicense Agreement between Santa Fe International
Corporation and Global Pipelines PLUS, Inc. dated May 24,
1990, relating to the Chickasaws reel pipelaying technology,
incorporated by reference to Exhibit 10.21 to the Form S-1
filed by Registrant (Reg. No. 33-56600).10.7
    
    
    
    
    
    
    Non-Competition Agreement and Registration Rights Agreement
between the Registrant and William J. Doré, incorporated by
reference to Exhibit 10.23 to the Form S-1 filed by Registrant
(Reg. No. 33-56600).10.8
    
    
    
    
    
    
    Global Industries, Ltd. Restricted Stock Plan, incorporated by
reference to Exhibit 10.25 to the Form S-1 filed by Registrant
(Reg. No. 33-56600).10.9
    
    
    
    
    
    
    Second Amendment to the Global Industries, Ltd. Profit Sharing
Plan, incorporated by reference to Exhibit 10.19 to the
Registrants Registration Statement on Form S-1 (Reg. No.
33-81322).10.10
    
    
    
    
    
    
    Global Industries, Ltd. 1995 Employee Stock Purchase Plan,
incorporated by reference to Exhibit 10.20 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1995.10.11
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and Hibernia National Bank,
Indenture Trustee, dated as of September 27, 1994,
incorporated by reference to Exhibit 10.22 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1995.10.12
    
    
    
    
    
    
    Amendment to Global Industries, Ltd. 1992 Stock Option Plan,
incorporated by reference to Exhibit 10.23 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1996.10.13
    
    
    
    
    
    
    Amendment to Global Industries, Ltd. 1992 Stock Option Plan,
incorporated by reference to Exhibit 10.23 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1996.10.14
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and First National Bank of
Commerce, Indenture Trustee, dated as of August 15, 1996,
incorporated by reference to Exhibit 10.21 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1997 (SEC File No. 000-21086).10.15
    
    
    
    
    
    
    Form of Indemnification Agreement between the Registrant and
each of the Registrants directors, incorporated by reference
to Exhibit 10.22 to the Registrants Annual Report on Form
10-K for the fiscal year ended March 31, 1997 (SEC File No.
000-21086).10.16
    
    
    
    
    
    
    1996 Amendment to Global Industries, Ltd. 1995 Employee Stock
Purchase Plan, incorporated by reference to Exhibit 10.26 to
the Registrants Annual Report on Form 10-K for the fiscal
year ended March 31, 1997 (SEC File No. 000-21086).10.17
    
    
    
    
    
    
    Amendment Assignment and Assumption of Authorization Agreement
relating to United States Government Ship Financing
obligations between Global Industries, Ltd., shipowner, and
First National Bank of Commerce, Indenture Trustee, dated as
of October 23, 1996, incorporated by reference to Exhibit
10.27 to the Registrants Annual Report on Form 10-K for the
fiscal year ended March 31,




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##### Table of Contents



1997 (SEC File No. 000-21086).10.18
    
    
    
    
    
    
    Global Industries, Ltd. 1998 Equity Incentive Plan
incorporated by reference to exhibit 10.28 to the Registrants
Annual Report on Form 10-K for the fiscal year ended March 31,
1998 (SEC File No. 000-21086).10.19
    
    
    
    
    
    
    Facilities Agreement (related to Carlyss Facility) by and
between the Registrant and Lake Charles Harbor and Terminal
District dated as of November 1, 1997, incorporated by
reference to Exhibit 10.2 to Registrants Quarterly Report on
Form 10-Q for the quarter ended December 31, 1997 (SEC File
No. 000-21086).10.20
    
    
    
    
    
    
    Ground Lease and Lease-Back Agreement (related to Carlyss
Facility) by and between the Registrant and Lake Charles
Harbor and Terminal District dated as of November 1, 1997,
incorporated by reference to Exhibit 10.3 to Registrants
Quarterly Report on Form 10-Q for the quarter ended December
31, 1997 (SEC File No. 000-21086).10.21
    
    
    
    
    
    
    Pledge and Security Agreement (related to Carlyss Facility) by
and between Registrant and Bank One, Louisiana, National
Association, dated as of November 1, 1997, incorporated by
reference to Exhibit 10.5 to Registrants Quarterly Report on
Form 10-Q for the quarter ended December 31, 1997 (SEC File
No. 000-21086).10.22
    
    
    
    
    
    
    Global Industries, Ltd. Non-Employee Directors Compensation
Plan, incorporated by reference to Exhibit 4.1 to Registrants
Registration Statement on Form S-8 (Reg. No. 333-69949).10.23
    
    
    
    
    
    
    Share Purchase Agreement between Global Industries, Ltd. and
ETPM, S.A., incorporated by reference to Exhibit 2.2 to
Registrants Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 1999 (SEC File No. 000-21086).10.24
    
    
    
    
    
    
    Trust Indenture relating to United States Government
Guaranteed Ship Financing Obligations between Global
Industries, Ltd., shipowner, and Wells Fargo Bank, Indenture
Trustee, dated as of February 22, 2000, incorporated by
reference to Exhibit 10.33 to Registrants Annual Report on
Form 10-K for the year ended December 31, 1999.10.25
    
    
    
    
    
    
    Asset Acquisition Agreement by and between Global Industries,
Ltd. and Oceaneering International, Inc. dated as of September
30, 2000, incorporated by reference to Exhibit 10.2 to
Registrants Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000 (SEC File No. 000-21086).10.26
    
    
    
    
    
    
    2000 Amendment to Global Industries, Ltd. 1998 Equity
Incentive Plan, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended March 31,
2001(SEC File No. 000-21086).10.27
    
    
    
    
    
    
    Severance Agreement dated February 22, 1995 between Global
Industries, Ltd. and James J. Doré, incorporated by reference
to Exhibit 10.2 to Registrants Quarterly Report for the
quarter ended March 31, 2001(SEC File No. 000-21086).10.28
    
    
    
    
    
    
    Second Amended and Restated Credit Agreement dated April 30,
2002 among Global Industries, Ltd. Offshore Mexico, S. DE R.L.
DE C.V., the Lenders and Bank One, NA, as administrative agent
for the Lenders, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended March 31,
2002.10.29
    
    
    
    
    
    
    Credit Agreement Amendment dated January 10, 2003 among Global
Industries, Ltd. Offshore Mexico, S. DE R.L. DE C.V., the
Lenders and Bank One, NA, as administrative agent for the
Lenders, incorporated by reference to Exhibit 10.37 to
registrants Annual Report on Form 10K for the year ended
December 31, 2002.10.30
    
    
    
    
    
    
    $48,000,000 Revolving B termination letter dated February 7,
2003 from Global Industries, Ltd. to Bank One, N.A.,
incorporated by reference to Exhibit 10.38 to registrants
Annual Report on Form 10K for the year ended December 31,
2002.




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##### Table of Contents



10.31
    
    
    
    
    
    
    Amendment No. 3 and Consent date June 30, 2003 among Global
Industries, Ltd., and Global Offshore Mexico, S. DE R.L. DE
C.V., the Lenders and Bank One, NA, as administrative agent
for the Lenders, incorporated by reference to Exhibit 10.1 to
Registrants Quarterly Report for the quarter ended June 30,
2003.10.32
    
    
    
    
    
    
    Credit Agreement Amendment dated December 29, 2003 among
Global Industries, Ltd. Offshore Mexico, S. DE R.L. DE C.V.,
the Lenders and Bank One, NA, as administrative agent for the
Lenders. (incorporated by reference to Exhibit 10.38 to
registrants Annual Report on Form 10-K for the year ended
December 31, 2003).10.33
    
    
    
    
    
    
    Consent and Waiver dated August 3, 2004 by Global Industries,
Ltd., and Global Offshore Mexico, S. de R.L. de C.V., the
Lenders to the Credit Agreement and Calyon New York Branch, as
administrative agent for the Lender. (incorporated by
reference to Exhibit 10.1 to registrants Quarterly Report on
Form 10-Q for the quarter ended June 30, 2004).10.34
    
    
    
    
    
    
    Amended and restated credit agreement dated August 6, 2004
among Global Industries, Ltd., Global Offshore Mexico, S. de
R.L. de C.V., the Lenders to the
Credit Agreement and Calyon
New York Branch, as administrative agent for the Lender.
(incorporated by reference to Exhibit 10.2 to registrants
Quarterly Report on Form 10-Q for the quarter ended June 30,
2004).10.35
    
    
    
    
    
    
    Asset Purchase Agreement dated September 2, 2004 by and
between Mercury Offshore Assets, LLC and Global Industries,
Ltd. (incorporated by reference to Exhibit 2.1 to Form 8-K
filed September 8, 2004).10.36
    
    
    
    
    
    
    Act of Cash Sale dated September 22, 2004 by and between
Global Movible Offshore, LLC and Doré Partners, Ltd.
(incorporated by reference to Exhibit 10.1 to Form 8-K filed
September 30, 2004).10.37
    
    
    
    
    
    
    Form of Executive Long-Term Restricted Stock Agreement
(Performance Vesting/POC-TSR Based). (incorporated by
reference to Exhibit 10.1 to Form 8-K filed September 30,
2004).10.38
    
    
    
    
    
    
    Credit Agreement Amendment dated September 30, 2004 among
Global Industries, Ltd. and Global Offshore Mexico, S. DE R.L.
DE C.V., the Lenders and Calyon New York Branch as
administrative agent for the lenders. (incorporated by
reference to Exhibit 10.4 to registrants Quarterly Report on
Form 10-Q for the quarter ended September 30, 2004).10.39
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Management Incentive Plan.
(incorporated by reference to Exhibit 10.40 to registrants
Annual Report on Form 10-K for the year ended December 31,
2004).10.40
    
    
    
    
    
    
    Amended and Restated Credit Agreement Amendment dated March
14, 2005 among Global Industries, Ltd. and Global Offshore
Mexico, S. DE R.L. DE C.V., the Lenders and Calyon New York
Branch as administrative agent for the lenders. (incorporated
by reference to Exhibit 10.41 to registrants Annual Report on
Form 10-K for the year ended December 31, 2004).10.41
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Stock Incentive Plan.
(incorporated by reference to Exhibit 10.42 to registrants
Annual Report on Form 10-K for the year ended December 31,
2004).10.42
    
    
    
    
    
    
    Lease Agreement dated November 10, 2005 between the Company
and Mr. William J. Doré to an office building, warehouse, and
land located in Lafayette, Louisiana. (incorporated by
reference to Exhibit 10.1 to registrants Quarterly Report on
Form 10-Q for the quarter ended September 30, 2005).10.43
    
    
    
    
    
    
    Global Industries, Ltd. 2005 Restricted Stock Agreement Form.
(incorporated by reference to Exhibit 10.1 of registrants
Form 8-K filed November 7, 2005).10.44
    
    
    
    
    
    
    Letter Agreement between the Company and Peter S. Atkinson
dated November




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##### Table of Contents



16, 2005. (incorporated by reference to Exhibit
10.1 of registrants Form 8-K filed November 22, 2005).10.45
    
    
    
    
    
    
    Amendment No. 1 to Agreement between the Company and Timothy
W. Miciotto dated June 9, 2005. (incorporated by reference to
Exhibit 10.2 of registrants Form 8-K filed November 22,
2005).10.46
    
    
    
    
    
    
    Resignation and Release Agreement dated December 5, 2005.
(incorporated by reference to Exhibit 10.1 of registrants
Form 8-K filed December 8, 2005).10.47
    
    
    
    
    
    
    Form of Executive Long-term Incentive Performance Unit
Agreement. (incorporated by reference to Exhibit 10.1 of
registrants Form 8-K filed February 22, 2006).10.48
    
    
    
    
    
    
    Form of Non-Employee Director Restricted Stock Agreement dated
May 16, 2006. (incorporated by reference to Exhibit 10.1 of
registrants Form 8-K filed May 22, 2006).10.49
    
    
    
    
    
    
    Trading Plan dated June 5, 2006 between Mr. William J. Doré
and Raymond James Financial authorizing the sale of up to a
maximum six million of his common shares of Global Industries,
Ltd. (incorporated by reference to Exhibit 99.1 of
registrants Form 8-K filed June 6, 2006).10.50
    
    
    
    
    
    
    Third Amended and Restated Credit Agreement dated June 30,
2006 among Global Industries, Ltd. Global Offshore Mexico, S.
de R.L. de C.V., Global Industries International, L.P., the
Lenders and Calyon New York Branch, as administrative agent
for the Lenders. (incorporated by reference to Exhibit 10.1
of registrants Form 8-K filed July 7, 2006).10.51
    
    
    
    
    
    
    A Settlement Agreement where GLOBAL, VINCI, and ACERGY agree
to release, waive, and extinguish any rights, claims or causes
of action they have or may have against each other, and agree
to dismiss the pending legal proceedings referenced in the
Settlement Agreement. (incorporated by reference to Exhibit
10.1 of registrants Quarterly Report on Form 10-Q for the
quarter ended June 30, 2006).10.52
    
    
    
    
    
    
    Employment Agreement between Global Industries, Ltd. and B. K.
Chin effective as of September 18, 2006. (incorporated by
reference to Exhibit 10.1 of registrants Form 8-K filed
September 22, 2006).10.53
    
    
    
    
    
    
    Retirement Agreement between Global Industries, Ltd. and Mr.
William J. Doré effective as of September 18, 2006.
(incorporated by reference to Exhibit 10.2 of registrants
Form 8-K filed September 22, 2006).*21.1
    
    
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    Subsidiaries of the Registrant.*23.1
    
    
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    Consent of Deloitte & Touche LLP.*31.1
    
    
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    Section 302 Certification of B.K. Chin.*31.2
    
    
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    Section 302 Certification of Peter S. Atkinson.*32.1
    
    
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    Section 906 Certification of B.K. Chin.*32.2
    
    
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    Section 906 Certification of Peter S. Atkinson.
 
 *
    
    Included with this filing.