##### Table of Contents



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, 2009
 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
    
    72-1212563(State or Other Jurisdiction of
    
    (I.R.S. Employer Identification Number)Incorporation or Organization)8000 Global DriveCarlyss, Louisiana
    
    70665(Address of Principal Executive Offices)
    
    (Zip Code)
 (337) 583-5000
  Title of each class
    
    Name of each exchange on which registeredCommon Stock ($0.01 par value)
    
    The NASDAQ Global Select Market LLC
  None
  þ o
  o þ
  þ o
  o o
 o
  Large Accelerated Filer þ
    
    Accelerated Filer o
    
    Non-accelerated Filer o
    
    Smaller Reporting Company o(Do not check if Smaller reporting company)
  o þ




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DOCUMENTS INCORPORATED BY REFERENCE
  2




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##### 



GLOBAL INDUSTRIES, LTD.
TABLE OF CONTENTS
 FORM 10-K
 PART IItem 1.
    
    Business
    
    
    6Item 1A.
    
    Risk Factors
    
    
    13Item 1B.
    
    Unresolved Staff Comments
    
    
    21Item 2.
    
    Properties
    
    
    21Item 3.
    
    Legal Proceedings
    
    
    26Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    27Item (Unnumbered).
    
    Executive Officers of the Registrant
    
    
    27PART IIItem 5.
    
    Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    30Item 6.
    
    Selected Financial Data
    
    
    31Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    32Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    51Item 8.
    
    Financial Statements and Supplementary DataReport of Independent Registered Public Accounting Firm
    
    
    53Consolidated Balance Sheets  December 31, 2009 and 2008
    
    
    54Consolidated Statements of Operations  Years Ended December 31, 2009, 2008, and 2007
    
    
    55Consolidated Statements of Shareholders Equity  Years Ended December 31, 2009, 2008, and 2007
    
    
    56Consolidated Statements of Cash Flows  Years Ended December 31, 2009, 2008, and 2007
    
    
    57Notes to Consolidated Financial Statements
    
    
    58Item 9.
    
    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    91Item 9A.
    
    Controls and Procedures
    
    
    91Managements Report on Internal Control over Financial Reporting
    
    
    91PART IIIItem 10.
    
    Directors, Executive Officers, and Corporate Governance
    
    
    95Item 11.
    
    Executive Compensation
    
    
    95Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    95Item 13.
    
    Certain Relationships and Related Transactions and Director Independence
    
    
    95Item 14.
    
    Principal Accountant Fees and Services
    
    
    95PART IVItem 15.
    
    Exhibits and Financial Statement Schedules
    
    
    96Signatures
    
    
    101EX-10.56EX-10.57EX-10.58EX-21.1EX-23.1EX-31.1EX-31.2EX-32.1EX-32.2
  3




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##### Table of Contents



FORWARD-LOOKING STATEMENTS
    
    
    the level of capital expenditures in the oil and gas industry;
    
    general economic and business conditions and industry trends;
    
    risks inherent in doing business abroad;
    
    operating hazards related to working offshore;
    
    our dependence on significant customers;
    
    the level of offshore drilling activity;
    
    possible construction delays or cost overruns related to construction projects;
    
    our ability to attract and retain skilled workers;
    
    environmental matters;
    
    changes in laws and regulations;
    
    the effects of resolving claims and variation orders;
    
    adverse outcomes from legal and regulatory proceedings;
    
    our ability to obtain surety bonds, letters of credit and financing;
    
    our availability of capital resources;
    
    our ability to obtain new project awards;
    
    delays or cancellation of projects included in backlog;
    
    fluctuations in the prices of or demand for oil and gas;
    
    our ability to comply with covenants in our credit agreements and other debt
instruments and availability, terms and deployment of capital; and
    
    foreign exchange, currency, and interest rate fluctuations.
  4




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5




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PART I
 
 ITEM 1.
    
    BUSINESS
  Segments of Business
  DESCRIPTION OF OPERATIONS
 Global
1200 Global 1201
    
    
    Offshore Construction Services, which include pipeline construction and platform
installation and removal services; and
    
    Subsea Services, which include diving and diverless intervention, SURF (subsea
equipment, umbilical, riser, and flow line), and support services for construction.
  Offshore Construction Services
  6




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Subsea Services
  
    
    supporting exploration;
    
    supporting platform and pipeline installation;
    
    performing periodic inspections of pipelines and platforms;
    
    performing repairs and maintenance to pipelines and platforms;
    
    supporting SURF (subsea equipment, umbilical, riser and flow line);
    
    providing remotely operated vehicle (ROV) services, and
    
    performing salvage and site clearance services.
   7




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Business Strategy
  
    
    business development and backlog accumulation,
    
    retention and hiring of key personnel,
    
    cost management,
    
    successful project execution, and
    
    successful integration of the Global 1200into our fleet.
  Raw Materials
  8




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Customers and Contracts
  2009
    
    2008
    
    2007Customer
    
    %
    
    %
    
    %Chevron
    
    
    15
    %
    
    
    15
    %
    
    
    14
    %Petroleo Brasileiro S.A. (Petrobras)
    
    
    13
    %
    
    
    14
    %
    
    
    Petroleos Mexicanos (PEMEX)
    
    
    12
    %
    
    
    10
    %
    
    
    23
    %Mobile Producing Nigeria
    
    
    12
    %
    
    
    1
    %
    
    
    PT Transportasi Gas Indonesia
    
    
    10
    %
    
    
    
    
    
    
    Saudi Aramco
    
    
    8
    %
    
    
    14
    %
    
    
    4
    %Oil and Natural Gas Corporation Limited (India)
    
    
    
    
    
    
    10
    %
    
    
    4
    %
    Competition
   9




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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.
  Patents
  Employees
  Seasonality
  Financial Information about Geographic Areas
  10




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Government Regulation and Environmental Matters
       11




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AVAILABLE INFORMATION
 www.sec.gov
 www.globalind.com
 12




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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.
  
    
    general economic conditions;
    
    the demand for oil and natural gas;
    
    the cost of exploring for, producing and delivering oil and natural gas;
    
    expectations regarding future commodity prices;
    
    the need to maintain, repair, and replace existing pipelines and structures to
extend the life of production;
    
    the need to clear structures from the lease once the oil and gas reserves have been
depleted; and
    
    weather events, such as major tropical storms or hurricanes.
  Economic conditions could negatively impact our business.
  Volatility and uncertainty of the credit markets may negatively impact us.
   13




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We depend on significant customers and a loss of any one of them could have a material adverse
effect on our business and results of operations.
  New capital asset construction projects are subject to risks, including delays and cost overruns,
which could have a material adverse effect on our available cash resources and results of
operations.
 Global 1200 Global 1201
 
    
    shortages of equipment, materials or skilled labor;
    
    unscheduled delays in the delivery of ordered materials and equipment;
    
    unanticipated cost increases;
    
    weather interferences;
    
    difficulties in obtaining necessary permits or in meeting permit conditions;
    
    design and engineering problems; and
    
    shipyard delays and performance issues.
  Our international operations expose us to additional risks inherent in doing business abroad.
  
    
    regional economic downturns;
    
    currency exchange rate fluctuations, devaluations, and restrictions on currencyrepatriation;
    
    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 markets;
    
    expropriation or seizure of our property;
    
    nullification, modification,  renegotiation or unenforceability of existing contracts;
    
    import/export quotas and other forms of public and governmental regulation; and
    
    inability to obtain or retain licenses required for operations.
  14




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We are exposed to the substantial hazards and risks inherent in marine construction and our
insurance coverage is limited.
   The implementation of our business strategy will expose us to additional operational risk.
  Our business is capital intensive and our ability to finance our business depends on generating
sufficient cash flow from our operations.
  We have incurred losses in past years and may incur additional losses in the future which could
adversely affect our operations.
  15




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We may be unable to obtain critical project materials or services on a timely basis.
  We are subject to risks associated with contractual pricing and may not complete fixed-price or
unit-rate contracts within our original estimates of costs, which will adversely affect our
results.
  Our use of percentage-of-completion method of accounting could result in volatility in our results
of operations.
  Our industry is highly competitive.
   16




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We operate in countries where corrupt behavior exists that could impair our ability to do business in the future or result in significant fines or penalties.
  Our internal controls may not be sufficient to achieve all stated goals and objectives.
  We have substantial funds held at domestic and foreign financial institutions that exceed the
insurance coverage offered by the FDIC and foreign governments, the loss of which would have a
severe negative effect on our operations and liquidity.
  Our investments in auction rate securities may be adversely impacted by continued liquidity risk.
  We may experience difficulties resolving claims and variation orders, which may adversely impact
our cash flows.
  17




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18




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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.
  The loss of one or more of our senior officers or other key personnel, or our failure to attract,
assimilate and retain key personnel in the future, could disrupt our operations and our results of
operations could suffer.
   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.
  Our debt instruments contain covenants that limit our operating and financial flexibility.
  19




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Critical accounting policies significantly affect our reported financial results and conditions.
  Compliance with environmental and other governmental regulations could be costly and could
negatively impact our operations.
     20




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War, other armed conflicts, or terrorist attacks could have a material adverse effect on our
business.
  We limit our foreign ownership, 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,
even if that change would be beneficial to our shareholders.
  
 ITEM 1B.
    
    UNRESOLVED STAFF COMMENTS
  
 ITEM 2.
    
    PROPERTIES
 Global 1200 Global 1201
 Hercules Hercules Hercules Hercules
 21




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Titan 2 Titan 2 Titan 2
 Comanche Comanche
 Iroquois Iroquois
 DLB 264 DLB 264
 DLB 332 DLB 332
 Chickasaw Chickasaw
 Pioneer Pioneer Pioneer
 Norman Commander Norman Commander
 Olympic Challenger Olympic Challenger Olympic
Challenger
 Global Orion Global Orion
 Global 1200 Global 1200 Global 1200
 Global 1201 Global 1201 Global 1200
 22




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Titan 2 Olympic
Challenger Norman Commander
 Chickasaw
   23




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ApproximateSquare Feet
    
    Owned/LeasedLocation
    
    Principal Use
    
    or Acreage
    
    (Lease Expiration)Carlyss, LA
    
    Shore base/Corporate Headquarters
    
    
    603
    
    
    acres
    
    OwnedPort of Iberia, LA
    
    Research and Development Center
    
    
    3,765
    
    
    sq. ft.
    
    Leased (Mar. 2010)(1)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 (July 2011)Sharjah, United Arab Emirates
    
    Office
    
    
    8,646
    
    
    sq. ft.
    
    Leased (April 2011)Mumbai, India
    
    Project Management Office
    
    
    8,535
    
    
    sq. ft.
    
    Leased (Dec. 2011)Batam Island, Indonesia
    
    Shore base
    
    
    45
    
    
    acres
    
    Leased (Mar. 2028)Singapore
    
    Office
    
    
    10,854
    
    
    sq. ft.
    
    Leased (Aug. 2013)Rio de Janeiro, Brazil
    
    Office
    
    
    6,480
    
    
    sq. ft.
    
    Leased (Jun. 2010)
 
 (1)
    
    This lease has a right to extend until March 2015. 24




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Global Industries, Ltd.  Listing of Major Construction Vessels
 Derrick
    
    PipelayMaximum
    
    MaximumMaximum
    
    Pipe
    
    Water
    
    Year
    
    LivingLength
    
    Lift
    
    Diameter
    
    Depth
    
    Acquired
    
    QuarterVessel Name
    
    Vessel Type
    
    Capability
    
    (Feet)
    
    (Tons)
    
    (Inches)
    
    (Feet)
    
    /Leased
    
    CapacityTitan 2(1)
    
    Ship
    
    Derrick
    
    
    408
    
    
    
    882
    
    
    
    
    
    
    
    
    
    
    
    2001
    
    
    
    330Hercules
    
    Barge
    
    Pipelay/reel/derrick
    
    
    486
    
    
    
    2,000
    
    
    
    60.00
    
    
    
    10,000
    
    
    
    1995
    
    
    
    269Comanche
    
    Barge
    
    Pipelay/derrick
    
    
    401
    
    
    
    1,000
    
    
    
    48.00
    
    
    
    1,000
    
    
    
    1996
    
    
    
    243Shawnee
    
    Barge
    
    Pipelay/derrick
    
    
    400
    
    
    
    860
    
    
    
    36.00
    
    
    
    800
    
    
    
    1996
    
    
    
    259Iroquois
    
    Barge
    
    Pipelay
    
    
    400
    
    
    
    250
    
    
    
    48.00
    
    
    
    1,200
    
    
    
    1997
    
    
    
    261DLB 264
    
    Barge
    
    Pipelay/derrick
    
    
    400
    
    
    
    1,100
    
    
    
    60.00
    
    
    
    1,000
    
    
    
    1998
    
    
    
    275DLB 332
    
    Barge
    
    Pipelay/derrick
    
    
    353
    
    
    
    800
    
    
    
    42.00
    
    
    
    1,000
    
    
    
    1998
    
    
    
    247Cherokee
    
    Barge
    
    Pipelay/derrick
    
    
    387
    
    
    
    925
    
    
    
    48.00
    
    
    
    1,000
    
    
    
    1990
    
    
    
    174Chickasaw
    
    Barge
    
    Pipelay/reel
    
    
    275
    
    
    
    165
    
    
    
    12.00
    
    
    
    6,000
    
    
    
    1990
    
    
    
    73Sea Constructor
    
    Barge
    
    Pipelay/bury
    
    
    250
    
    
    
    200
    
    
    
    24.00
    
    
    
    600
    
    
    
    1987
    
    
    
    104
 
 (1)
    
    The Titan 2is leased from a third party under a long-term charter agreement which
expires in May 2018. 25




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ITEM 3.
    
    LEGAL PROCEEDINGS
  26




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ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM (Unnumbered). EXECUTIVE OFFICERS OF THE REGISTRANT
   Name
    
    Age
    
    PositionJohn A. Clerico
    
    
    68
    
    
    Chairman of the Board and Chief Executive OfficerPeter S. Atkinson
    
    
    62
    
    
    President and Principal Financial OfficerRussell J. Robicheaux
    
    
    61
    
    
    Senior Vice President, Chief Administrative Officer,
General Counsel and SecretaryJames J. Doré
    
    
    55
    
    
    Senior Vice President, North America and Worldwide
Diving and Subsea ServicesByron W. Baker
    
    
    53
    
    
    Senior Vice President, Worldwide OperationsJohn M. Katok
    
    
    53
    
    
    Senior Vice President, Worldwide Business DevelopmentEduardo Borja
    
    
    52
    
    
    Senior Vice President, Global Marketing and StrategyDavid R. Sheil
    
    
    53
    
    
    Senior Vice President, Human ResourcesAshit Jain
    
    
    39
    
    
    Senior Vice President, Asia Pacific/India and Middle EastTrudy McConnaughhay
    
    
    50
    
    
    Vice President and Controller
    27




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PART II
 
 ITEM 5.
    
    MARKET FOR THE REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
  Common Stock PriceLow
    
    
    HighYear ended 2008:First quarter
    
    $
    15.62
    
    
    $
    22.92Second quarter
    
    
    15.86
    
    
    
    19.73Third quarter
    
    
    6.57
    
    
    
    17.50Fourth quarter
    
    
    2.10
    
    
    
    6.70Year ended 2009:First quarter
    
    $
    2.74
    
    
    $
    4.43Second quarter
    
    
    4.00
    
    
    
    7.68Third quarter
    
    
    5.11
    
    
    
    10.63Fourth quarter
    
    
    5.67
    
    
    
    9.20
    Maximum Number ofTotal Number of Shares
    
    
    Shares that May YetPurchased as Part of
    
    
    Be Purchased UnderTotal Number of Shares
    
    
    Average Price Paid
    
    
    Publicly Announced Plans
    
    
    the Plans orPeriod
    
    Purchased(1)
    
    
    per Share
    
    
    or Programs
    
    
    ProgramsOctober 1, 2009  October 31, 2009
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    November 1, 2009  November 30, 2009
    
    
    4,717
    
    
    
    6.39
    
    
    
    
    
    
    
    December 1, 2009  December 31, 2009
    
    
    32,868
    
    
    
    6.93
    
    
    
    
    
    
    
    Total
    
    
    37,585
    
    
    $
    6.86
    
    
    
    
    
    
    
    
 
 (1)
    
    Represents the surrender of shares of common stock to satisfy payments for
withholding taxes in connection with the vesting of restricted stock issued to employees under
shareholder approved equity incentive plans. 30




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ITEM 6.
    
    SELECTED FINANCIAL DATA
  Year Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(in thousands, except per share and ratio data)Revenues
    
    $
    914,348
    
    
    $
    1,070,988
    
    
    $
    992,513
    
    
    $
    1,234,849
    
    
    $
    688,615Cost of operations
    
    
    755,301
    
    
    
    1,084,581
    
    
    
    719,768
    
    
    
    887,003
    
    
    
    571,768Gross profit (loss)
    
    
    159,047
    
    
    
    (13,593
    )
    
    
    272,745
    
    
    
    347,846
    
    
    
    116,847Loss on asset impairments
    
    
    1,186
    
    
    
    2,551
    
    
    
    141
    
    
    
    8,931
    
    
    
    Reduction in litigation provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,699
    )
    
    
    Net gain on asset disposal
    
    
    (8,351
    )
    
    
    (1,695
    )
    
    
    (4,220
    )
    
    
    (6,395
    )
    
    
    (5,303
    )Selling, general and administrative expenses
    
    
    69,165
    
    
    
    95,364
    
    
    
    81,275
    
    
    
    71,109
    
    
    
    50,916Operating income (loss)
    
    
    97,047
    
    
    
    (109,813
    )
    
    
    195,549
    
    
    
    287,900
    
    
    
    71,234Interest income
    
    
    2,020
    
    
    
    14,477
    
    
    
    27,966
    
    
    
    8,169
    
    
    
    3,304Interest expense
    
    
    (13,061
    )
    
    
    (16,439
    )
    
    
    (15,463
    )
    
    
    (10,787
    )
    
    
    (10,192
    )Other income (expense), net
    
    
    7,302
    
    
    
    (641
    )
    
    
    3,826
    
    
    
    705
    
    
    
    1,668Income (loss) before income taxes
    
    
    93,308
    
    
    
    (112,416
    )
    
    
    211,878
    
    
    
    285,987
    
    
    
    66,014Income taxes
    
    
    19,577
    
    
    
    6,775
    
    
    
    53,234
    
    
    
    86,242
    
    
    
    31,256Net income (loss)
    
    $
    73,731
    
    
    $
    (119,191
    )
    
    $
    158,644
    
    
    $
    199,745
    
    
    $
    34,758Net income (loss) per diluted shareNet income (loss)
    
    $
    0.64
    
    
    $
    (1.05
    )
    
    $
    1.35
    
    
    $
    1.70
    
    
    $
    0.30Ratio of earnings to fixed charges (1)
    
    
    2.9x
    
    
    
    n/a
    (2)
    
    
    6.9x
    
    
    
    12.0x
    
    
    
    5.6xTotal assets (3)
    
    $
    1,524,193
    
    
    $
    1,489,353
    
    
    $
    1,588,605
    
    
    $
    1,070,997
    
    
    $
    844,662Working capital (3)
    
    $
    405,609
    
    
    $
    380,894
    
    
    $
    843,017
    
    
    $
    460,126
    
    
    $
    232,050Long-term debt (3)
    
    $
    298,326
    
    
    $
    293,926
    
    
    $
    290,119
    
    
    $
    73,260
    
    
    $
    77,220
 
 (1)
    
    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.(2)
    
    Earnings were inadequate to cover fixed charges by $75.6 million for 2008.(3)
    
    As of the end of the period. 31




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ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Results of Operations
 General
     Offshore Construction Services
   32




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Subsea Services
  33




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##### Table of Contents



Year Ended December 31, 2009 Compared to Year Ended December 31, 2008
 2009
    
    
    2008% of
    
    
    
    
    
    
    % of
    
    
    % ChangeThousands
    
    
    Revenue
    
    
    Thousands
    
    
    Revenue
    
    
    (Unfavorable)Revenues
    
    $
    914,348
    
    
    
    100.0
    %
    
    $
    1,070,988
    
    
    
    100.0
    %
    
    
    (14.6)
    %Cost of operations
    
    
    755,301
    
    
    
    82.6
    
    
    
    1,084,581
    
    
    
    101.3
    
    
    
    30.4Gross profit (loss)
    
    
    159,047
    
    
    
    17.4
    
    
    
    (13,593
    )
    
    
    1.3
    
    
    
    n/m
    (1)Loss on asset impairments
    
    
    1,186
    
    
    
    0.1
    
    
    
    2,551
    
    
    
    
    
    
    
    53.5Net gain on asset disposal
    
    
    (8,351
    )
    
    
    0.9
    
    
    
    (1,695
    )
    
    
    
    
    
    
    392.7Selling, general and administrative
expenses
    
    
    69,165
    
    
    
    7.6
    
    
    
    95,364
    
    
    
    8.9
    
    
    
    27.5Operating income (loss)
    
    
    97,047
    
    
    
    10.6
    
    
    
    (109,813
    )
    
    
    10.2
    
    
    
    188.4Interest income
    
    
    2,020
    
    
    
    0.2
    
    
    
    14,477
    
    
    
    1.4
    
    
    
    (86.0
    )Interest expense
    
    
    (13,061
    )
    
    
    1.4
    
    
    
    (16,439
    )
    
    
    1.5
    
    
    
    20.5Other income (expense), net
    
    
    7,302
    
    
    
    0.8
    
    
    
    (641
    )
    
    
    
    
    
    
    n/m
    (1)Income (loss) before income taxes
    
    
    93,308
    
    
    
    10.2
    
    
    
    (112,416
    )
    
    
    10.5
    
    
    
    183.0Income taxes
    
    
    19,577
    
    
    
    2.1
    
    
    
    6,775
    
    
    
    0.6
    
    
    
    (189.0
    )Net income (loss)
    
    $
    73,731
    
    
    
    8.1
    %
    
    $
    (119,191
    )
    
    
    11.1
    %
    
    
    161.9
    %
 
 (1)
    
    Not meaningful Revenues
 Depreciation and Amortization in Cost of Operations
 Gross Profit
 Loss on Asset Impairments 
 Gain on Asset Disposal
 34




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##### Table of Contents



Selling, General and Administrative Expenses
 Interest Income
 Interest Expense Global 1200 Global 1201
 Other Income (Expense), Net
 Income Taxes
 Segment Information
 North America Offshore Construction Division
 Hercules Sea
Constructor Cherokee Titan II Chickasaw GP37 Cherokee
 North America Subsea
 Olympic Challenger Global Orion Sea Lion Sea Lion Sea Lion
 35




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##### Table of Contents



Norman Commander Global Orion Olympic Challenger
 Latin America
 Norman Commander
 West Africa
 Hercules Sea
Constructor Sea Puma CB3 Power Barge 1
 Middle East
  36




---



##### Table of Contents



Asia Pacific/India
 Seminole
 37




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##### Table of Contents



Year Ended December 31, 2008 Compared to Year Ended December 31, 2007
 2008
    
    
    2007% of
    
    
    
    
    
    
    % of
    
    
    % ChangeThousands
    
    
    Revenue
    
    
    Thousands
    
    
    Revenue
    
    
    (Unfavorable)Revenues
    
    $
    1,070,988
    
    
    
    100.0
    %
    
    $
    992,513
    
    
    
    100.0
    %
    
    
    7.9
    %Cost of operations
    
    
    1,084,581
    
    
    
    101.3
    
    
    
    719,768
    
    
    
    72.5
    
    
    
    (50.7
    )Gross profit (loss)
    
    
    (13,593
    )
    
    
    1.3
    
    
    
    272,745
    
    
    
    27.5
    
    
    
    (105.0
    )Loss on asset impairments
    
    
    2,551
    
    
    
    
    
    
    
    141
    
    
    
    
    
    
    
    n/m
    (1)Net gain on asset disposal
    
    
    (1,695
    )
    
    
    
    
    
    
    (4,220
    )
    
    
    0.4
    
    
    
    (59.8
    )Selling, general and administrative expenses
    
    
    95,364
    
    
    
    8.9
    
    
    
    81,275
    
    
    
    8.2
    
    
    
    (17.3
    )Operating income (loss)
    
    
    (109,813
    )
    
    
    10.2
    
    
    
    195,549
    
    
    
    19.7
    
    
    
    (156.2
    )Interest income
    
    
    14,477
    
    
    
    1.4
    
    
    
    27,966
    
    
    
    2.8
    
    
    
    (48.2
    )Interest expense
    
    
    (16,439
    )
    
    
    1.5
    
    
    
    (15,463
    )
    
    
    1.6
    
    
    
    (6.3
    )Other income (expense), net
    
    
    (641
    )
    
    
    
    
    
    
    3,826
    
    
    
    0.4
    
    
    
    (116.8
    )Income (loss) before income taxes
    
    
    (112,416
    )
    
    
    10.5
    
    
    
    211,878
    
    
    
    21.3
    
    
    
    (153.1
    )Income taxes
    
    
    6,775
    
    
    
    0.6
    
    
    
    53,234
    
    
    
    5.3
    
    
    
    87.3Net income (loss)
    
    $
    (119,191
    )
    
    
    11.1
    %
    
    $
    158,644
    
    
    
    16.0
    %
    
    
    (175.1)
    %
 
 (1)
    
    Not meaningful Revenues
 Depreciation and Amortization in Cost of Operations Global Orion
 Gross Profit
 Loss on Asset Impairments
 Gain on Asset Disposal
 38




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##### Table of Contents



Selling, General and Administrative Expenses 
 Interest Income
 Interest Expense 
 Other Income (Expense), Net
 Income Taxes
 Segment Information
 North America Offshore Construction Division
 Cherokee
 North America Subsea
 Global Orion Olympic Challenger
 39




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##### Table of Contents



Norman
Commander
 Latin America
  West Africa
  Middle East
  Asia Pacific/India
  40




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##### Table of Contents



Utilization of Major Construction Vessels
  Industry and Business Outlook
    Liquidity and Capital Resources
 Overview
  Global 1200 Global 1201
 41




---



##### Table of Contents



Cash Flows
 Operating Activities
 Investing Activities  Global 1200 Global 1201
 Financing Activities
 Long-Term Debt
    42




---



##### Table of Contents



Other Indebtedness and Obligations
  Charters  Titan 2 Titan 2
 Norman Commander Olympic Challenger
 43




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##### Table of Contents



Future Lease Obligations 
 2010
    
    $
    31,5552011
    
    
    25,8702012
    
    
    19,4062013
    
    
    12,0852014
    
    
    2Thereafter
    
    
    12Total
    
    $
    88,930
 Summary of Contractual Obligations as of December 31, 2009
 Payments due by periodLess than
    
    
    1-3
    
    
    3-5
    
    
    More thanContractual Obligations
    
    Total
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 years(in thousands)Long-Term Debt Principal Only(1)
    
    $
    386,380
    
    
    $
    3,960
    
    
    $
    7,920
    
    
    $
    332,920
    
    
    $
    41,580Long-Term Debt Interest Only(1)
    
    
    74,948
    
    
    
    13,594
    
    
    
    26,271
    
    
    
    20,581
    
    
    
    14,502Operating Lease Obligations  Cancelable
    
    
    60,506
    
    
    
    6,306
    
    
    
    13,254
    
    
    
    14,647
    
    
    
    26,299Operating Lease Obligations  Non-Cancelable
    
    
    88,930
    
    
    
    31,555
    
    
    
    45,276
    
    
    
    12,087
    
    
    
    12Purchase Obligations(2)
    
    
    109,219
    
    
    
    96,643
    
    
    
    12,576
    
    
    
    
    
    
    
    Total
    
    $
    719,983
    
    
    $
    152,058
    
    
    $
    105,297
    
    
    $
    380,235
    
    
    $
    82,393
 
 (1)
    
    Assuming conversion on the earliest call date of
August 1, 2014 of our Senior Convertible Debentures.(2)
    
    Primarily represents commitments outstanding for the construction of two saturation diving systems and the Global 1200and Global 1201which do not include
capitalized interest.  Off Balance Sheet Arrangements
  44




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##### Table of Contents



Liquidity Risk
  
    
    temporarily cash-collateralize letters of credit and bank guarantees;
    
    temporarily waive compliance with certain financial covenants;
    
    temporarily prohibit share repurchases; and
    
    temporarily maintain unencumbered liquidity of $100 million.
   
    
    allow for a new starting point in measuring financial performance; and
    
    permit borrowings and/or the issuance of letters of credit and bank guarantees based on
a rate premium over prime rate ranging from 1.50% to 3.00% or London Interbank Offered Rate
(LIBOR) ranging from 2.00% to 3.50% based upon certain financial ratios.
    45




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##### Table of Contents



Liquidity Outlook
   Global 1200 Global 1201
  46




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##### Table of Contents



Recent Accounting Pronouncements
 SFAS 168 The FASB Accounting Standards Codification and
the Hierarchy of Generally Accepted Accounting Principles TM
 SFAS 167 Amendments to FASB Interpretation No. 46(R),
Consolidation of Variable Interest Entities
 SFAS 165 Subsequent Events
 SFAS 161 Disclosures about Derivative Instruments
and Hedging Activities
 ASU No. 2010-06
 ASU No. 2009-05
 47




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##### Table of Contents



Critical Accounting Policies and Estimates
  Revenue Recognition
   Receivables
  Property and Equipment
  48




---



##### Table of Contents



Goodwill
  Income Taxes
     49




---



##### Table of Contents



50




---



##### Table of Contents



ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Foreign Currency Risk
      Interest Rate Risk
   51




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##### Table of Contents



52




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##### Table of Contents



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Internal Control-Integrated Framework
 DELOITTE & TOUCHE LLP
 53




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##### Table of Contents



GLOBAL INDUSTRIES, LTD.
CONSOLIDATED BALANCE SHEETS  (in thousands)
 December 31,2009
    
    
    2008ASSETSCurrent AssetsCash and cash equivalents
    
    $
    344,855
    
    
    $
    287,669Restricted cash
    
    
    1,139
    
    
    
    94,516Marketable securities
    
    
    30,750
    
    
    
    Accounts receivable  net of allowance of $2,765 for 2009
and $12,070 for 2008
    
    
    160,273
    
    
    
    180,018Unbilled work on uncompleted contracts
    
    
    92,569
    
    
    
    86,011Contract costs incurred not yet recognized
    
    
    489
    
    
    
    11,982Deferred income taxes
    
    
    2,945
    
    
    
    7,223Assets held for sale
    
    
    16,152
    
    
    
    2,181Prepaid expenses and other
    
    
    31,596
    
    
    
    44,585Total current assets
    
    
    680,768
    
    
    
    714,185Property and Equipment, net
    
    
    722,819
    
    
    
    599,078Other AssetsMarketable securities  long-term
    
    
    11,097
    
    
    
    42,375Accounts receivable  long-term
    
    
    12,294
    
    
    
    22,246Deferred charges, net
    
    
    49,866
    
    
    
    70,573Goodwill
    
    
    37,388
    
    
    
    37,388Other
    
    
    9,961
    
    
    
    3,508Total other assets
    
    
    120,606
    
    
    
    176,090Total
    
    $
    1,524,193
    
    
    $
    1,489,353LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesCurrent maturities of long term debt
    
    $
    3,960
    
    
    $
    3,960Accounts payable
    
    
    192,008
    
    
    
    207,239Employee-related liabilities
    
    
    18,079
    
    
    
    26,113Income taxes payable
    
    
    45,301
    
    
    
    38,649Accrued anticipated contract losses
    
    
    322
    
    
    
    35,055Other accrued liabilities
    
    
    15,489
    
    
    
    22,275Total current liabilities
    
    
    275,159
    
    
    
    333,291Long-Term Debt
    
    
    294,366
    
    
    
    289,966Deferred Income Taxes
    
    
    69,998
    
    
    
    64,020Other Liabilities
    
    
    15,171
    
    
    
    13,266Commitments and Contingencies
    
    
    
    
    
    
    Shareholders EquityCommon stock, $0.01 par value, 150,000 authorized, and 119,989 and 119,650 shares issued at December 31, 2009 and 2008, respectively
    
    
    1,200
    
    
    
    1,197Additional paid-in capital
    
    
    513,353
    
    
    
    509,345Retained earnings
    
    
    468,430
    
    
    
    394,699Treasury stock at cost, 6,130 shares
    
    
    (105,038
    )
    
    
    (105,038
    )Accumulated other comprehensive loss
    
    
    (8,446
    )
    
    
    (11,393
    )Total shareholders equity
    
    
    869,499
    
    
    
    788,810Total
    
    $
    1,524,193
    
    
    $
    1,489,353
  54




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GLOBAL INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS  (in thousands, except per share data)
 Year Ended December 31,2009
    
    
    2008
    
    
    2007Revenues
    
    $
    914,348
    
    
    $
    1,070,988
    
    
    $
    992,513Cost of operations
    
    
    755,301
    
    
    
    1,084,581
    
    
    
    719,768Gross profit (loss)
    
    
    159,047
    
    
    
    (13,593
    )
    
    
    272,745Loss on asset impairments
    
    
    1,186
    
    
    
    2,551
    
    
    
    141Net gain on asset disposal
    
    
    (8,351
    )
    
    
    (1,695
    )
    
    
    (4,220
    )Selling, general, and administrative expenses
    
    
    69,165
    
    
    
    95,364
    
    
    
    81,275Operating income (loss)
    
    
    97,047
    
    
    
    (109,813
    )
    
    
    195,549Interest income
    
    
    2,020
    
    
    
    14,477
    
    
    
    27,966Interest expense
    
    
    (13,061
    )
    
    
    (16,439
    )
    
    
    (15,463
    )Other income (expense), net
    
    
    7,302
    
    
    
    (641
    )
    
    
    3,826Income (loss) before income taxes
    
    
    93,308
    
    
    
    (112,416
    )
    
    
    211,878Income taxes
    
    
    19,577
    
    
    
    6,775
    
    
    
    53,234Net income (loss)
    
    $
    73,731
    
    
    $
    (119,191
    )
    
    $
    158,644Earnings (loss) per common share:Basic
    
    $
    0.65
    
    
    $
    (1.05
    )
    
    $
    1.37Diluted
    
    $
    0.64
    
    
    $
    (1.05
    )
    
    $
    1.35Weighted Average Shares Outstanding:Basic
    
    
    112,631
    
    
    
    113,647
    
    
    
    113,833Diluted
    
    
    113,125
    
    
    
    113,647
    
    
    
    115,515
  55




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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, 2007
    
    
    116,252,411
    
    
    $
    1,162
    
    
    $
    379,297
    
    
    $
    (644
    )
    
    $
    (8,084
    )
    
    $
    353,834
    
    
    $
    725,565Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    158,644
    
    
    
    158,644Cumulative effect of adopting ASC 740-10-05
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,412
    
    
    
    1,412Issuance of Convertible Debentures
    
    
    
    
    
    
    
    
    
    
    68,240
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68,240Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    14,059
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,059Restricted stock issues, net
    
    
    203,816
    
    
    
    2
    
    
    
    2,564
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,566Exercise of stock options
    
    
    1,544,559
    
    
    
    16
    
    
    
    17,669
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,685Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    4,777
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,777Treasury stock purchased
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76,613
    )
    
    
    
    
    
    
    
    
    
    
    (76,613
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,181
    
    
    
    
    
    
    
    4,181Balance at Dec. 31, 2007
    
    
    118,000,786
    
    
    $
    1,180
    
    
    $
    486,606
    
    
    $
    (77,257
    )
    
    $
    (3,903
    )
    
    $
    513,890
    
    
    $
    920,516Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (119,191
    )
    
    
    (119,191
    )Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    8,375
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,375Restricted stock issues, net
    
    
    681,446
    
    
    
    7
    
    
    
    2,648
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,655Exercise of stock options
    
    
    967,628
    
    
    
    10
    
    
    
    8,595
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,605Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    3,121
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,121Treasury stock purchased
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (27,781
    )
    
    
    
    
    
    
    
    
    
    
    (27,781
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,490
    )
    
    
    
    
    
    
    (7,490
    )Balance at Dec. 31, 2008
    
    
    119,649,860
    
    
    $
    1,197
    
    
    $
    509,345
    
    
    $
    (105,038
    )
    
    $
    (11,393
    )
    
    $
    394,699
    
    
    $
    788,810Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    73,731
    
    
    
    73,731Amortization of unearned
stock compensation
    
    
    
    
    
    
    
    
    
    
    4,946
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,946Restricted stock issues, net
    
    
    301,749
    
    
    
    3
    
    
    
    369
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    372Exercise of stock options
    
    
    37,133
    
    
    
    
    
    
    
    202
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    202Tax effect of exercise of
stock options
    
    
    
    
    
    
    
    
    
    
    (1,509
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,509
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,947
    
    
    
    
    
    
    
    2,947Balance at Dec. 31, 2009
    
    
    119,988,742
    
    
    $
    1,200
    
    
    $
    513,353
    
    
    $
    (105,038
    )
    
    $
    (8,446
    )
    
    $
    468,430
    
    
    $
    869,499
  56




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##### Table of Contents



GLOBAL INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS  in thousands)
 Year Ended December 31,2009
    
    
    2008
    
    
    2007Cash Flows From Operating ActivitiesNet income (loss)
    
    $
    73,731
    
    
    $
    (119,191
    )
    
    $
    158,644Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:Depreciation and non-stock-based amortization
    
    
    60,215
    
    
    
    56,139
    
    
    
    47,238Stock-based compensation expense
    
    
    5,832
    
    
    
    11,024
    
    
    
    16,625Provision for doubtful accounts
    
    
    7,448
    
    
    
    11,512
    
    
    
    (3,537
    )Gain on sale or disposal of property and equipment
    
    
    (8,351
    )
    
    
    (1,695
    )
    
    
    (4,220
    )Derivative (gain) loss
    
    
    (880
    )
    
    
    613
    
    
    
    (249
    )Loss on asset impairments
    
    
    1,186
    
    
    
    2,551
    
    
    
    141Deferred income taxes
    
    
    2,755
    
    
    
    (11,518
    )
    
    
    (17,841
    )Excess tax benefits from stock-based compensation
    
    
    (381
    )
    
    
    (4,139
    )
    
    
    (4,777
    )Changes in operating assets and liabilitiesAccounts receivable, unbilled work, and contract costs
    
    
    27,184
    
    
    
    (20,911
    )
    
    
    31,440Prepaid expenses and other
    
    
    12,582
    
    
    
    (19,929
    )
    
    
    (9,693
    )Accounts payable, employee-related liabilities, and
other accrued liabilities
    
    
    (111,860
    )
    
    
    23,599
    
    
    
    84,550Deferred dry-docking costs incurred
    
    
    (6,517
    )
    
    
    (47,223
    )
    
    
    (30,651
    )Net cash provided by (used in) operating activities
    
    
    62,944
    
    
    
    (119,168
    )
    
    
    267,670Cash Flows From Investing ActivitiesProceeds from the sale of assets
    
    
    26,944
    
    
    
    6,490
    
    
    
    5,813Additions to property and equipment
    
    
    (121,967
    )
    
    
    (267,929
    )
    
    
    (61,792
    )Purchase of marketable securities
    
    
    
    
    
    
    (49,545
    )
    
    
    (466,680
    )Sale of marketable securities
    
    
    400
    
    
    
    107,105
    
    
    
    366,745Decrease in (additions to) restricted cash
    
    
    93,377
    
    
    
    (93,395
    )
    
    
    (48
    )Net cash (used in) investing activities
    
    
    (1,246
    )
    
    
    (297,274
    )
    
    
    (155,962
    )Cash Flows From Financing ActivitiesProceeds from the sale of common stock, net
    
    
    206
    
    
    
    8,605
    
    
    
    17,685Repurchase of common stock
    
    
    (543
    )
    
    
    (27,781
    )
    
    
    (76,613
    )Additions to deferred charges
    
    
    (596
    )
    
    
    (342
    )
    
    
    (7,325
    )Repayment of long-term debt
    
    
    (3,960
    )
    
    
    (3,960
    )
    
    
    (3,960
    )Proceeds from long-term debt
    
    
    
    
    
    
    
    
    
    
    325,000Excess tax benefits from stock-based compensation
    
    
    381
    
    
    
    4,139
    
    
    
    4,777Net cash provided by (used in) financing activities
    
    
    (4,512
    )
    
    
    (19,339
    )
    
    
    259,564Cash and Cash EquivalentsIncrease (decrease)
    
    
    57,186
    
    
    
    (435,781
    )
    
    
    371,272Beginning of period
    
    
    287,669
    
    
    
    723,450
    
    
    
    352,178End of period
    
    $
    344,855
    
    
    $
    287,669
    
    
    $
    723,450
  57




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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
 Restricted Cash
 Marketable Securities 
 Receivables 
 58




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##### Table of Contents



Allowances for Doubtful Accounts 
 Assets Held for Sale Tornado Subtec 1 Cheyenne
 Property and Equipment, and Depreciation
  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
 59




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##### Table of Contents



Deferred Charges
  Goodwill
 Impairment of Long-Lived Assets
 Contracts in Progress and Revenue Recognition
  Derivative Financial Instruments
  60




---



##### Table of Contents



Foreign Currency Translation
 Stock-Based Compensation 
 Income Taxes
    Concentration of Credit Risk
 Use of Estimates
 61




---



##### Table of Contents



Basic
and Diluted Earnings Per Share
 Recent Accounting Pronouncements
 SFAS 168 The FASB Accounting Standards Codification and
the Hierarchy of Generally Accepted Accounting Principles TM
 SFAS 167 Amendments to FASB Interpretation No. 46(R),
Consolidation of Variable Interest Entities
 SFAS 165 Subsequent Events
 SFAS 161 Disclosures about Derivative Instruments
and Hedging Activities
 62




---



##### Table of Contents



ASU No. 2010-06
 ASU No. 2009-05
 2. Marketable Securities
    Auction Rate Securities under Settlement Agreement 
 63




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##### Table of Contents



Auction Rate Securities issued by Municipalities
 64




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##### Table of Contents



3. Fair Value of Financial Instruments
  Level 1  Observable inputs such as quoted prices in active markets.Level 2  Inputs (other than quoted prices in active markets) that are either directly or
indirectly observable.Level 3  Unobservable inputs which require managements best estimate of what market
participants would use in pricing the asset or liability.
    (in thousands)
 Description
    
    Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Cash equivalents
    
    $
    63,797
    
    
    $
    63,797
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    41,847
    
    
    
    
    
    
    
    
    
    
    
    41,847Derivative contracts
    
    
    1,827
    
    
    
    
    
    
    
    1,827
    
    
    
    Total
    
    $
    107,471
    
    
    $
    63,797
    
    
    $
    1,827
    
    
    $
    41,847
 (in thousands)
 Description
    
    Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Cash equivalents
    
    $
    122,107
    
    
    $
    122,107
    
    
    $
    
    
    
    $
    Marketable securities
    
    
    42,375
    
    
    
    
    
    
    
    
    
    
    
    42,375Derivative contracts
    
    
    (3,716
    )
    
    
    
    
    
    
    (3,716
    )
    
    
    Total
    
    $
    160,766
    
    
    $
    122,107
    
    
    $
    (3,716
    )
    
    $
    42,375
   65




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##### Table of Contents



Changes in Level 3 Financial Instruments
 Year Ended December 31,(in thousands)2009
    
    
    2008Beginning Balance
    
    $
    42,375
    
    
    $
    48,800Sales
    
    
    (400
    )
    
    
    (13,550
    )Total gains or (losses):Included in other comprehensive income
    
    
    (128
    )
    
    
    Transfers in to Level 3
    
    
    
    
    
    
    12,125Transfers out of Level 3
    
    
    
    
    
    
    (5,000
    )Balance at end of period
    
    $
    41,847
    
    
    $
    42,375
 4. Receivables
  66




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Costs and Estimated Earnings on Uncompleted Contracts
 December 31,2009
    
    
    2008(in thousands)Costs incurred and recognized on uncompleted contracts
    
    $
    891,530
    
    
    $
    738,496Estimated earnings (loss)
    
    
    66,179
    
    
    
    (19,411
    )Costs and estimated earnings on uncompleted contracts
    
    
    957,709
    
    
    
    719,085Less: Billings to date
    
    
    (873,636
    )
    
    
    (653,373
    )84,073
    
    
    
    65,712Plus: Accrued revenue(1)
    
    
    8,496
    
    
    
    15,770Less: Advance billings on uncompleted contracts
    
    
    (175
    )
    
    
    (80
    )$
    92,394
    
    
    $
    81,402Included in accompanying balance sheets under the
following captions:Unbilled work on uncompleted contracts
    
    $
    92,569
    
    
    $
    86,011Other accrued liabilities
    
    
    (175
    )
    
    
    (4,609
    )$
    92,394
    
    
    $
    81,402
 
 (1)
    
    Accrued revenue represents unbilled amounts receivable related to work performed on projects for which
the percentage of completion method is not applicable. 5. Property and Equipment
  December 31,2009
    
    
    2008(in thousands)Land
    
    $
    6,322
    
    
    $
    6,322Facilities and equipment
    
    
    183,526
    
    
    
    179,650Marine barges, vessels, and related equipment
    
    
    474,208
    
    
    
    535,042Construction in progress
    
    
    375,360
    
    
    
    208,8271,039,416
    
    
    
    929,841Less accumulated depreciation and amortization
    
    
    (316,597
    )
    
    
    (330,763
    )Property and equipment  net
    
    $
    722,819
    
    
    $
    599,078
  6. Deferred Dry-Docking Costs
  67




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##### Table of Contents



Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Net book value at beginning of period
    
    $
    61,552
    
    
    $
    30,734
    
    
    $
    13,672Additions for the period
    
    
    6,517
    
    
    
    47,223
    
    
    
    30,651Reclassifications to assets held for sale
    
    
    (4,914
    )
    
    
    
    
    
    
    Amortization expense for the period
    
    
    (21,330
    )
    
    
    (16,405
    )
    
    
    (13,589
    )Net book value at end of period
    
    $
    41,825
    
    
    $
    61,552
    
    
    $
    30,734
 7. Derivative Financial Instruments
 Global 1200
  Global 1200
 Global 1200
 68




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##### Table of Contents



8. Long-Term Debt
  December 31,2009
    
    
    2008(in thousands)United States Government Guaranteed Ship
Financing Bonds, 2000 Series dated February 15,
2000, payable in semi-annual principal
installments of $1.98 million with an interest
rate of 7.71%, maturing February 15, 2025, and
collateralized by the Herculesvessel and
related equipment with a net book value of
$88.6 million at December 31, 2009
    
    $
    61,380
    
    
    $
    65,340Senior Convertible Debentures are due in August
2027, Unsecured indebtedness with an interest
rate of 2.75% payable semi-annually, net of
unamortized discount of $88.1 million and $96.4
million, respectively
    
    
    236,946
    
    
    
    228,586Revolving Credit Facility with a syndicate of
commercial banks, collateralized by real
estate, fleet mortgage on vessels and stock
pledge of subsidiaries, interest payable at
variable rates
    
    
    
    
    
    
    Total long-term debt
    
    
    298,326
    
    
    
    293,926Less current maturities
    
    
    3,960
    
    
    
    3,960Long-term debt, less current maturities
    
    $
    294,366
    
    
    $
    289,966
  2010
    
    $
    3,9602011
    
    
    3,9602012
    
    
    3,9602013
    
    
    3,9602014(1)
    
    
    328,960Thereafter
    
    
    41,580Total maturities
    
    $
    386,380Less unamortized discount
    
    
    88,054Total
    
    $
    298,326
 
 (1)
    
    Assumes $325,000 Senior
Convertible Debentures are redeemed on August
1, 2014, the earliest permissible date. United States Government Guaranteed Ship Financing Bonds (Title XI bonds)
  Senior Convertible Debentures 
 69




---



##### Table of Contents



December 31,2009
    
    
    2008(In thousands)Principal amount of debt component
    
    $
    325,000
    
    
    $
    325,000Less: Unamortized debt discount
    
    
    88,054
    
    
    
    96,414Carrying amount of debt component
    
    $
    236,946
    
    
    $
    228,586Debt discount on issuance
    
    $
    107,261
    
    
    $
    107,261Less: Issuance costs
    
    
    2,249
    
    
    
    2,249Deferred income tax
    
    
    36,772
    
    
    
    36,772Carrying amount of equity component
    
    $
    68,240
    
    
    $
    68,240
  Year Ended December 31,2009
    
    
    2008(In thousands)Contractual interest coupon, 2.75%
    
    $
    8,938
    
    
    $
    8,938Amortization of debt discount
    
    
    8,360
    
    
    
    7,767Total Debentures interest expense
    
    $
    17,298
    
    
    $
    16,705Effective interest rate
    
    
    7.5
    %
    
    
    7.5
    %
   Revolving Credit Facility 
 70




---



##### Table of Contents




    
    temporarily cash-collateralize letters of credit and bank guarantees;
    
    temporarily waive compliance with certain financial covenants;
    
    temporarily prohibit share repurchases; and
    
    temporarily maintain unencumbered liquidity of $100 million.
   
    
    allow for a new starting point in measuring financial performance; and
    
    permit borrowings and/or the issuance of letters of credit and bank guarantees based on
a rate premium over prime rate ranging from 1.50% to 3.00% or London Interbank Offered Rate
(LIBOR) ranging from 2.00% to 3.50% based upon certain financial ratios.
     71




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##### Table of Contents



9. Commitments and Contingencies
 Commitments
  Titan 2 Titan 2
 Norman Commander REM Commander
 Olympic Challenger,
  2010
    
    $
    31,5552011
    
    
    25,8702012
    
    
    19,4062013
    
    
    12,0852014
    
    
    2Thereafter
    
    
    12Total
    
    $
    88,930
 Construction and Purchases in Progress  Global 1200 Global 1201 
 Guarantees 
 Letters of Credit 
 72




---



##### Table of Contents



Contingencies
     Investigations and Litigation
      73




---



##### Table of Contents



10. Shareholders Equity
 Accumulated Other Comprehensive Income
 CumulativeForeign
    
    
    Forward
    
    
    
    
    
    
    AccumulatedCurrency
    
    
    Foreign
    
    
    Auction
    
    
    OtherTranslation
    
    
    Currency
    
    
    Rate
    
    
    ComprehensiveAdjustment
    
    
    Contracts
    
    
    Securities
    
    
    Income (Loss)Balance at January 1, 2008
    
    $
    (8,978
    )
    
    $
    5,075
    
    
    $
    
    
    
    $
    (3,903
    )Change in value
    
    
    
    
    
    
    (4,742
    )
    
    
    (3,085
    )
    
    
    (7,827
    )Reclassification to earnings
    
    
    
    
    
    
    (2,748
    )
    
    
    3,085
    
    
    
    337Balance at December 31, 2008
    
    $
    (8,978
    )
    
    $
    (2,415
    )
    
    $
    
    
    
    $
    (11,393
    )Change in value
    
    
    
    
    
    
    2,736
    
    
    
    (83
    )
    
    
    2,653Reclassification to earnings
    
    
    
    
    
    
    294
    
    
    
    
    
    
    
    294Balance at December 31, 2009
    
    $
    (8,978
    )
    
    $
    615
    
    
    $
    (83
    )
    
    $
    (8,446
    )
  74




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##### Table of Contents



Comprehensive Income 
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Net income (loss)
    
    $
    73,731
    
    
    $
    (119,191
    )
    
    $
    158,644Comprehensive income (loss):Unrealized gain (loss) on foreign
currency hedges before taxes
    
    
    4,662
    
    
    
    (11,523
    )
    
    
    6,432Unrealized loss on auction rate securities
    
    
    (128
    )
    
    
    
    
    
    
    Provision for income taxes
    
    
    (1,587
    )
    
    
    4,033
    
    
    
    (2,251
    )Comprehensive income (loss)
    
    $
    76,678
    
    
    $
    (126,681
    )
    
    $
    162,825
 Preferred Stock 
 Treasury Stock 
 11. Stock-Based Compensation
 Stock-Based Compensation Expense
  Stock Benefit Plans
 2005 Stock Incentive Plan
 75




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##### Table of Contents



Non-Employee Director Compensation Plan
  1998 Equity Incentive Plan
 76




---



##### Table of Contents



Stock Option Activities
  Weighted
    
    
    Remaining
    
    
    AggregateAverage
    
    
    Average
    
    
    IntrinsicExercise
    
    
    Contractual
    
    
    ValueOptions
    
    
    Price
    
    
    Life(in years)
    
    
    (in thousands)Outstanding at January 1, 2007
    
    
    4,208,757
    
    
    $
    11.06
    
    
    
    5.0
    
    
    $
    11,072Granted
    
    
    471,775
    
    
    
    14.03Forfeited or expired
    
    
    (220,918
    )
    
    
    13.75Exercised
    
    
    (1,544,559
    )
    
    
    11.42Outstanding at December 31, 2007
    
    
    2,915,055
    
    
    $
    11.15
    
    
    
    5.4
    
    
    $
    30,046Granted
    
    
    258,400
    
    
    
    20.39Forfeited or expired
    
    
    (127,249
    )
    
    
    12.29Exercised
    
    
    (1,146,428
    )
    
    
    10.33Outstanding at December 31, 2008
    
    
    1,899,778
    
    
    $
    12.83
    
    
    
    6.0
    
    
    $
    Granted
    
    
    12,000
    
    
    
    3.19Forfeited or expired
    
    
    (149,192
    )
    
    
    13.96Exercised
    
    
    (37,133
    )
    
    
    5.44Outstanding at December 31, 2009
    
    
    1,725,453
    
    
    $
    12.83
    
    
    
    4.96
    
    
    $
    Fully vested and expected to vest at December 31, 2009
    
    
    1,676,366
    
    
    $
    12.72
    
    
    
    4.87
    
    
    $
    Exercisable at December 31, 2009
    
    
    1,529,104
    
    
    $
    12.35
    
    
    
    4.59
    
    
    $
    
   Year endedDecember 31,2009
    
    2008
    
    2007Expected life in years
    
    6 years
    
    6 years
    
    6 yearsRisk-free interest rate
    
    
    1.86
    %
    
    
    2.80-3.44
    %
    
    
    3.83-5.09
    %Volatility
    
    
    63.16
    %
    
    
    50.79-51.99
    %
    
    
    50.95-54.45
    %Expected dividends
    
    
    -0-
    
    
    
    -0-
    
    
    
    -0-
    77




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##### Table of Contents



WeightedAverageGrant-DateNon-vested options
    
    Options
    
    
    Fair ValueOutstanding at January 1, 2007
    
    
    1,269,800
    
    
    $
    11.78Vested
    
    
    (625,963
    )
    
    
    11.08Forfeited
    
    
    (155,686
    )
    
    
    12.44Granted
    
    
    471,775
    
    
    
    14.03Outstanding at December 31, 2007
    
    
    959,926
    
    
    $
    13.23Vested
    
    
    (606,888
    )
    
    
    13.98Forfeited
    
    
    (70,938
    )
    
    
    14.34Granted
    
    
    258,400
    
    
    
    20.39Outstanding at December 31, 2008
    
    
    540,500
    
    
    $
    15.67Vested
    
    
    (336,576
    )
    
    
    14.56Forfeited
    
    
    (19,575
    )
    
    
    18.21Granted
    
    
    12,000
    
    
    
    3.19Outstanding at December 31, 2009
    
    
    196,349
    
    
    $
    16.55
  Stock Award Activities
 Restricted stock 
 Weighted
    
    
    RemainingAverage
    
    
    Average
    
    
    AggregateGrant-Date
    
    
    Contractual Life
    
    
    ValueShares
    
    
    Fair Value
    
    
    (in years)
    
    
    (in thousands)Outstanding at January 1, 2009
    
    
    1,174,850
    
    
    $
    11.25
    
    
    
    1.87
    
    
    $
    13,222Granted
    
    
    447,650
    
    
    
    3.53Forfeited
    
    
    (162,101
    )
    
    
    8.80Vested and released to participants
    
    
    (654,540
    )
    
    
    7.99Outstanding at December 31, 2009
    
    
    805,859
    
    
    $
    10.22
    
    
    
    1.31
    
    
    $
    8,238
  Performance Shares 
 78




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##### Table of Contents



Performance-based Units 
 WeightedAverage
    
    
    AggregateGrant-Date
    
    
    ValueUnits
    
    
    Fair Value
    
    
    (in thousands)Outstanding at January 1, 2009
    
    
    519,172
    
    
    $
    14.49
    
    
    $
    7,520Granted
    
    
    951,000
    
    
    
    2.74Forfeited or expired
    
    
    (131,204
    )
    
    
    13.75Vested and released to participants
    
    
    (39,162
    )
    
    
    12.51Outstanding at December 31, 2009
    
    
    1,299,806
    
    
    $
    6.03
    
    
    $
    7,832
   12. Employee Benefits
   13.Asset Disposal and Impairments and Assets Held for Sale
  Net Gains and (Losses) on Asset Disposal 
 79




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##### Table of Contents



Year Ended December 31,Segment

    Description of Asset

    2009
    
    
    2008
    
    
    2007(in thousands)North America OCD
    
    One pipelay barge
in 2009 and Other
in 2007-2009
    
    $
    447
    
    
    $
    (224
    )
    
    $
    (59
    )North America Subsea
    
    One DSV in 2009,
dive support
systems in 2007 and
Other in 2007-2009
    
    
    4,346
    
    
    
    (196
    )
    
    
    (335
    )Latin America
    
    One DSV in 2007 and
Other in 2007-2009
    
    
    (14
    )
    
    
    (176
    )
    
    
    975West Africa
    
    Two cargo barges
and one DSV in 2009
and Other in 2007 &
2009
    
    
    641
    
    
    
    
    
    
    
    (16
    )Asia Pacific/India
    
    One DLB in 2009,
One DSV in 2007 and
Other in 2007-2009
    
    
    3,337
    
    
    
    10
    
    
    
    1,077Middle East
    
    One DSV (each
in 2008 and
2007) and
Other in 2007-2009
    
    
    83
    
    
    
    2,280
    
    
    
    2,300Corporate
    
    Other
    
    
    (489
    )
    
    
    1
    
    
    
    278$
    8,351
    
    
    $
    1,695
    
    
    $
    4,220
 Losses on Asset Impairments 
 Year Ended December 31,Segment

    Description of Asset

    2009
    
    
    2008
    
    
    2007(in thousands)North America Subsea
    
    One DSV (each
in 2009 and 2008)
& Three Dive
Systems in 2009
    
    $
    766
    
    
    $
    995
    
    
    $
    Latin America
    
    One DSV
    
    
    190
    
    
    
    
    
    
    
    West Africa
    
    Other in 2009 & One
DSV in 2008
    
    
    230
    
    
    
    1,556
    
    
    
    Corporate
    
    Other
    
    
    
    
    
    
    
    
    
    
    141$
    1,186
    
    
    $
    2,551
    
    
    $
    141
  Assets Held for Sale 
 Year Ended December 31,Segment

    Description of Asset

    2009
    
    
    2008(in thousands)North America Subsea
    
    One DSV and Dive System
    
    $
    
    
    
    $
    749West Africa
    
    One DLB, One DSV and Other for
2009 and One DSV for 2008
    
    
    6,832
    
    
    
    1,000Middle East
    
    One DLB
    
    
    
    
    
    
    432Asia Pacific/India
    
    One OSV and Other
    
    
    9,320
    
    
    
    $
    16,152
    
    
    $
    2,181
 14. Other Income (Expense), net
  80




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Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Foreign exchange rate gain (loss)
    
    $
    2,711
    
    
    $
    (2,498
    )
    
    $
    (1,474
    )Derivative contract gain
    
    
    881
    
    
    
    613
    
    
    
    1,606Reversal of allowance for doubtful accounts
    
    
    
    
    
    
    
    
    
    
    787Settlement (1)
    
    
    
    
    
    
    
    
    
    
    1,395Insurance settlements (2)
    
    
    2,728
    
    
    
    
    
    
    
    Penalties on past due taxes
    
    
    (476
    )
    
    
    (134
    )
    
    
    (61
    )Other
    
    
    1,458
    
    
    
    1,378
    
    
    
    1,573Total
    
    $
    7,302
    
    
    $
    (641
    )
    
    $
    3,826
 
 (1)
    
    Gain from settlement of a claim for interrupted operations as a result of a 2006 oil
spill by a refinery adjacent to our property in Louisiana.(2)
    
    Proceeds from settlement on claim for prior year damages to the Cherokeeand from
settlement of prior year costs incurred on a project claim. 15. Income Taxes
  Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)U.S. federal and state:Current
    
    $
    
    
    
    $
    (10,015
    )
    
    $
    21,482Deferred
    
    
    2,700
    
    
    
    (5,540
    )
    
    
    (11,963
    )Foreign:Current
    
    
    18,469
    
    
    
    23,882
    
    
    
    47,684Deferred
    
    
    (1,592
    )
    
    
    (1,552
    )
    
    
    (3,969
    )Total
    
    $
    19,577
    
    
    $
    6,775
    
    
    $
    53,234
   Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)United States
    
    $
    4,663
    
    
    $
    (45,932
    )
    
    $
    36,992Foreign
    
    
    88,645
    
    
    
    (66,484
    )
    
    
    174,886Total
    
    $
    93,308
    
    
    $
    (112,416
    )
    
    $
    211,878
 81




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##### Table of Contents



Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Taxes at U.S. federal statutory rate of 35%
    
    $
    32,657
    
    
    $
    (39,345
    )
    
    $
    74,158Permanent book to tax differences:Exchange and inflationary gains on foreign tax filings
    
    
    79
    
    
    
    (919
    )
    
    
    137Disallowed deductions
    
    
    1,175
    
    
    
    271
    
    
    
    598Interest income on affiliate balances
    
    
    670
    
    
    
    1,194
    
    
    
    2,157Other permanent differences
    
    
    301
    
    
    
    543
    
    
    
    Foreign income taxes at different rates
    
    
    (10,186
    )
    
    
    44,506
    
    
    
    (21,272
    )Foreign net operating loss carryforward valuation
allowance
    
    
    54
    
    
    
    1,229
    
    
    
    11Valuation allowance reversal
    
    
    (5,107
    )
    
    
    (105
    )
    
    
    (336
    )Section 199 tax-exempt income and various items
    
    
    (66
    )
    
    
    (599
    )
    
    
    (2,219
    )Total
    
    $
    19,577
    
    
    $
    6,775
    
    
    $
    53,234
      82




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##### Table of Contents



December 31,2009
    
    
    2008(in thousands)Deferred Tax Liabilities:Excess book over tax basis of property and equipment
    
    $
    50,517
    
    
    $
    42,268Deferred charges
    
    
    8,081
    
    
    
    10,585Accounts receivable
    
    
    1,229
    
    
    
    512Discount on convertible notes
    
    
    33,138
    
    
    
    35,079Deferred Tax Assets, Current:Net operating loss carryforward
    
    
    (6,770
    )
    
    
    (10,648
    )Valuation allowance
    
    
    852
    
    
    
    8,805Accrued liabilities
    
    
    (2,832
    )
    
    
    (8,734
    )Allowance for doubtful accounts
    
    
    (315
    )
    
    
    (316
    )Deferred Tax Assets, Non-Current:Stock-based compensation (not currently deductible)
    
    
    (4,623
    )
    
    
    (6,053
    )Foreign Tax Credit
    
    
    (16,537
    )
    
    
    (16,175
    )Net deferred tax liability
    
    $
    62,740
    
    
    $
    55,323
  Accounting for Uncertainty in Income Taxes 
 Balance at January 1, 2008
    
    $
    5,909Additions based on positions for current year
    
    
    Additions for tax positions for prior year
    
    
    Foreign Exchange
    
    
    (740
    )Settlements
    
    
    (1,170
    )Balance at December 31, 2008
    
    $
    3,999Additions based on positions for current year
    
    
    Additions for tax positions for prior year
    
    
    Foreign Exchange
    
    
    131Settlements
    
    
    Balance at December 31, 2009
    
    $
    4,130
  83




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##### Table of Contents




    United States
    2001 to 2009
    Brazil
    2007 to 2009
    Mexico
    2004 to 2009
    Nigeria
    2006 to 2009
 16. Earnings Per Share
   84




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##### Table of Contents



Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands, except per share data)Basic EPS:Net income (loss)
    
    $
    73,731
    
    
    $
    (119,191
    )
    
    $
    158,644Less earnings attributed to shareholders of
non-vested restricted stock
    
    
    (774
    )
    
    
    
    
    
    
    (3,148
    )Earnings (loss) attributed to common shareholders
    
    $
    72,957
    
    
    $
    (119,191
    )
    
    $
    155,496Weighted-average number of common shares
outstanding  basic
    
    
    112,631
    
    
    
    113,647
    
    
    
    113,833Basic earnings (loss) per common share
    
    $
    0.65
    
    
    $
    (1.05
    )
    
    $
    1.37Diluted EPS:Earnings (loss) attributable to common
shareholders-basic
    
    $
    72,957
    
    
    $
    (119,191
    )
    
    $
    155,496Adjustment to earnings (loss) attributable to
common shareholders for redistribution to
shareholders of non-vested restricted stock
    
    
    3
    
    
    
    
    
    
    
    44Adjusted earnings (loss) attributable to common
shareholders-diluted
    
    $
    72,960
    
    
    $
    (119,191
    )
    
    $
    155,540Weighted average number of common shares
outstanding  basic
    
    
    112,631
    
    
    
    113,647
    
    
    
    113,833Dilutive effect of potential common shares:Stock options
    
    
    26
    
    
    
    
    
    
    
    1,325Performance units
    
    
    468
    
    
    
    
    
    
    
    357Weighted-average number of common shares
outstanding  diluted
    
    
    113,125
    
    
    
    113,647
    
    
    
    115,515Diluted net income (loss) per common share
    
    $
    0.64
    
    
    $
    (1.05
    )
    
    $
    1.35
   85




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17. Industry, Segment and Geographic Information
    86




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##### Table of Contents



Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Total segment revenuesNorth America OCD
    
    $
    124,749
    
    
    $
    81,137
    
    
    $
    106,478North America Subsea
    
    
    158,929
    
    
    
    146,105
    
    
    
    150,407Latin America
    
    
    229,273
    
    
    
    266,974
    
    
    
    226,999West Africa
    
    
    104,300
    
    
    
    152,877
    
    
    
    184,651Middle East
    
    
    88,372
    
    
    
    237,523
    
    
    
    186,317Asia Pacific/India
    
    
    244,441
    
    
    
    223,450
    
    
    
    181,187Subtotal
    
    $
    950,064
    
    
    $
    1,108,066
    
    
    $
    1,036,039Intersegment eliminationsNorth America OCD
    
    $
    (978
    )
    
    $
    
    
    
    $
    (7,726
    )North America Subsea
    
    
    (31,468
    )
    
    
    (30,713
    )
    
    
    (17,867
    )Latin America
    
    
    
    
    
    
    (2,724
    )
    
    
    (322
    )West Africa
    
    
    
    
    
    
    
    
    
    
    Middle East
    
    
    (3,270
    )
    
    
    (3,641
    )
    
    
    (17,466
    )Asia Pacific/India
    
    
    
    
    
    
    
    
    
    
    (145
    )Subtotal
    
    $
    (35,716
    )
    
    $
    (37,078
    )
    
    $
    (43,526
    )Consolidated revenues
    
    $
    914,348
    
    
    $
    1,070,988
    
    
    $
    992,513Interest expenseNorth America OCD
    
    $
    
    
    
    $
    
    
    
    $
    North America Subsea
    
    
    
    
    
    
    
    
    
    
    Latin America
    
    
    3,305
    
    
    
    2,411
    
    
    
    2,194West Africa
    
    
    (50
    )
    
    
    (2,292
    )
    
    
    811Middle East
    
    
    11
    
    
    
    84
    
    
    
    4Asia Pacific/India
    
    
    171
    
    
    
    128
    
    
    
    3Corporate
    
    
    9,624
    
    
    
    16,108
    
    
    
    12,451Consolidated interest expense
    
    $
    13,061
    
    
    $
    16,439
    
    
    $
    15,463Depreciation and amortization expenseNorth America OCD
    
    $
    16,518
    
    
    $
    4,256
    
    
    $
    6,536North America Subsea
    
    
    13,191
    
    
    
    8,517
    
    
    
    6,046Latin America
    
    
    11,400
    
    
    
    11,558
    
    
    
    6,174West Africa
    
    
    3,217
    
    
    
    12,087
    
    
    
    14,285Middle East
    
    
    4,211
    
    
    
    7,377
    
    
    
    5,814Asia Pacific/India
    
    
    6,794
    
    
    
    8,276
    
    
    
    7,380Corporate
    
    
    10,716
    
    
    
    12,277
    
    
    
    15,604Consolidated depreciation and amortization
    
    $
    66,047
    
    
    $
    64,348
    
    
    $
    61,839
 87




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##### Table of Contents



Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Income (loss) before taxesNorth America OCD
    
    $
    (1,336
    )
    
    $
    (14,963
    )
    
    $
    16,398North America Subsea
    
    
    34,879
    
    
    
    11,262
    
    
    
    63,793Latin America
    
    
    8,216
    
    
    
    (9,215
    )
    
    
    106,308West Africa
    
    
    27,468
    
    
    
    (33,470
    )
    
    
    (5,065
    )Middle East
    
    
    8,901
    
    
    
    (75,668
    )
    
    
    35,794Asia Pacific/India
    
    
    41,319
    
    
    
    46,687
    
    
    
    16,454Corporate
    
    
    (26,139
    )
    
    
    (37,049
    )
    
    
    (21,804
    )Consolidated income (loss) before taxes
    
    $
    93,308
    
    
    $
    (112,416
    )
    
    $
    211,878Segment assets at period endNorth America OCD
    
    $
    140,806
    
    
    $
    39,184
    
    
    $
    110,175North America Subsea
    
    
    180,230
    
    
    
    191,596
    
    
    
    68,269Latin America
    
    
    223,699
    
    
    
    254,007
    
    
    
    261,183West Africa
    
    
    98,897
    
    
    
    214,707
    
    
    
    315,648Middle East
    
    
    193,787
    
    
    
    117,726
    
    
    
    149,844Asia Pacific/India
    
    
    64,066
    
    
    
    173,613
    
    
    
    122,274Other
    
    
    622,708
    
    
    
    498,520
    
    
    
    561,212Consolidated segment assets at period end
    
    $
    1,524,193
    
    
    $
    1,489,353
    
    
    $
    1,588,605Expenditures for long-lived assetsNorth America OCD
    
    $
    3,209
    
    
    $
    299
    
    
    $
    1,761North America Subsea (1)
    
    
    6,514
    
    
    
    114,367
    
    
    
    514Latin America
    
    
    1,713
    
    
    
    9,714
    
    
    
    5,910West Africa
    
    
    2,190
    
    
    
    8,425
    
    
    
    1,873Middle East
    
    
    
    
    
    
    3,682
    
    
    
    11,960Asia Pacific/India
    
    
    3,256
    
    
    
    9,270
    
    
    
    833Other (2)
    
    
    105,085
    
    
    
    122,172
    
    
    
    38,941Consolidated expenditures for long-lived assets
    
    $
    121,967
    
    
    $
    267,929
    
    
    $
    61,792
 
 (1)
    
    2008 includes purchase of a DP-2 class vessel, the Global Orion.(2)
    
    includes expenditures on construction of two new derrick/pipelay vessels, the Global
1200and Global 1201. 88




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Year Ended December 31,2009
    
    
    2008
    
    
    2007(in thousands)Revenues from external customersUnited States
    
    $
    251,233
    
    
    $
    196,530
    
    
    $
    231,292Brazil
    
    
    119,306
    
    
    
    155,819
    
    
    
    Mexico
    
    
    109,967
    
    
    
    108,276
    
    
    
    226,677Nigeria
    
    
    103,532
    
    
    
    104,602
    
    
    
    83,512Indonesia
    
    
    98,267
    
    
    
    562
    
    
    
    6,779Other
    
    
    232,043
    
    
    
    505,199
    
    
    
    444,253$
    914,348
    
    
    $
    1,070,988
    
    
    $
    992,513Long lived assets at period endUnited States
    
    $
    297,046
    
    
    $
    380,926
    
    
    $
    138,367Singapore
    
    
    349,498
    
    
    
    172,456
    
    
    
    49,293Other foreign areas
    
    
    76,275
    
    
    
    45,696
    
    
    
    162,814$
    722,819
    
    
    $
    599,078
    
    
    $
    350,474
  18. Major Customers
  Year Ended December 31,2009
    
    2008
    
    2007(in thousands)Amount
    
    %
    
    Amount
    
    %
    
    Amount
    
    %Customer A
    
    $
    138,811
    
    
    
    15
    %
    
    $
    157,443
    
    
    
    15
    %
    
    $
    137,931
    
    
    
    14
    %Customer B
    
    
    116,887
    
    
    
    13
    %
    
    
    153,279
    
    
    
    14
    %
    
    
    2,035
    
    
    
    Customer C
    
    
    109,533
    
    
    
    12
    %
    
    
    103,907
    
    
    
    10
    %
    
    
    223,803
    
    
    
    23
    %Customer D
    
    
    105,765
    
    
    
    12
    %
    
    
    15,574
    
    
    
    1
    %
    
    
    
    
    
    
    Customer E
    
    
    94,512
    
    
    
    10
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Customer F
    
    
    71,670
    
    
    
    8
    %
    
    
    151,774
    
    
    
    14
    %
    
    
    41,117
    
    
    
    4
    %Customer G
    
    
    
    
    
    
    
    
    
    
    103,961
    
    
    
    10
    %
    
    
    39,408
    
    
    
    4
    %
  89




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##### Table of Contents



19. Supplemental Disclosures of Cash Flow Information
  Year Ended December 31,2009
    
    2008
    
    2007(in thousands)Cash paid for:Interest, net of amount capitalized
    
    $
    7,998
    
    
    $
    11,743
    
    
    $
    5,634Income taxes
    
    
    12,270
    
    
    
    31,068
    
    
    
    66,540
 Other Non-Cash Transactions
  20. Related Party Transactions
  21. Interim Financial Information (Unaudited)
  First
    
    Second
    
    Third
    
    Fourth
    
    TotalQuarter
    
    Quarter
    
    Quarter
    
    Quarter
    
    Year(in thousands, except per share amounts)2009Revenues
    
    $
    269,465
    
    
    $
    294,827
    
    
    $
    203,718
    
    
    $
    146,338
    
    
    $
    914,348Gross profit (loss)
    
    
    45,367
    
    
    
    65,171
    
    
    
    39,863
    
    
    
    8,646
    
    
    
    159,047Net income (loss)
    
    
    19,031
    
    
    
    45,933
    
    
    
    14,018
    
    
    
    (5,251
    )
    
    
    73,731Net income (loss) per shareBasic
    
    $
    0.17
    
    
    $
    0.40
    
    
    $
    0.12
    
    
    $
    (0.05
    )
    
    $
    0.65Diluted
    
    $
    0.17
    
    
    $
    0.40
    
    
    $
    0.12
    
    
    $
    (0.05
    )
    
    $
    0.642008Revenues
    
    $
    301,465
    
    
    $
    300,543
    
    
    $
    218,551
    
    
    $
    250,429
    
    
    $
    1,070,988Gross profit
    
    
    54,330
    
    
    
    7,836
    
    
    
    (88,858
    )
    
    
    13,099
    
    
    
    (13,593
    )Net income
    
    
    26,110
    
    
    
    (14,132
    )
    
    
    (103,108
    )
    
    
    (28,061
    )
    
    
    (119,191
    )Net income per shareBasic
    
    $
    0.23
    
    
    $
    (0.12
    )
    
    $
    (0.90
    )
    
    $
    (0.25
    )
    
    $
    (1.05
    )Diluted
    
    $
    0.22
    
    
    $
    (0.12
    )
    
    $
    (0.90
    )
    
    $
    (0.25
    )
    
    $
    (1.05
    )
 22. Subsequent Events
   90




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ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  Managements Report on Internal Control Over Financial Reporting
  Internal Control 
Integrated Framework
 91




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Internal Control  Integrated Framework
  /s/ John A. Clerico
    
    
    
    /s/ Peter S. AtkinsonJohn A. Clerico
    
    
    
    Peter S. AtkinsonChief Executive Officer
    
    
    
    President(Principal Financial Officer)Carlyss, LouisianaFebruary 26, 2010
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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 Internal
Control-Integrated Framework
    Internal
Control-Integrated Framework
 93




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##### Table of Contents



DELOITTE & TOUCHE LLP
 94




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##### Table of Contents



PART III
 
 ITEM 10.
    
    DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
  
 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
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PART IV
 
 ITEM 15.
    
    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 Documents Filed as Part of This Annual Report
 (1)
    
    -
    
    Financial Statements Included in Part II of this report:   Report of Independent Registered Public Accounting Firm.   Consolidated Balance Sheets as of December 31, 2009 and 2008.   Consolidated Statements of Operations for the years ended
December 31, 2009, 2008, and 2007.   Consolidated Statements of Shareholders Equity for the years
ended December 31, 2009, 2008, and 2007.   Consolidated Statements of Cash Flows for the years ended
December 31, 2009, 2008, and 2007.   Notes to Consolidated Financial Statements.(2)
    
    -
    
    Financial Statement SchedulesSchedule II  Valuation and Qualifying Accounts.
All other schedules are omitted as either not required, not
applicable or because the information required is in the financial
statements or notes thereto.(3)
    
    -
    
    Exhibits.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, as amended through October 31, 2007,
incorporated by reference to Exhibit 3.2 of registrants Form 10-K
filed March 2, 2009.4.1
    
    -
    
    Form of Common Stock certificate, incorporated by reference to
Exhibit 4.1 to the Form S-1 filed by registrant (Reg. No. 33-56600).10.3
    
    -
    
    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).10.5
    
    -
    
    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).10.13
    
    -
    
    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).10.15
    
    -
    
    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).10.17
    
    -
    
    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).10.18
    
    -
    
    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).10.19
    
    -
    
    Global Industries, Ltd. Non-Employee Director Compensation Plan, as
amended, incorporated by reference to Exhibit 10.19 of registrants
Form 10-K filed March 2, 2009.10.20
    
    -
    
    Trust Indenture relating to United States Government Guaranteed Ship
Financing
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Obligations between Global Industries, Ltd., ship owner,
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.10.21
    
    -
    
    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.10.24
    
    -
    
    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.10.25
    
    -
    
    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.10.26
    
    -
    
    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.10.27
    
    -
    
    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.10.28
    
    -
    
    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.10.31
    
    -
    
    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.10.32
    
    -
    
    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, 2006.10.34
    
    -
    
    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.10.36
    
    -
    
    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.10.37
    
    -
    
    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 Quarterly Report on Form 8-K filed
September 22, 2006.10.38
    
    -
    
    Indenture of Global Industries, Ltd. and Wells Fargo Bank, National
Association, as Trustee, dated July 27, 2007. incorporated by
reference to Exhibit 4.1 of registrants Form 10-Q for the quarter
ended June 30, 2007.10.39
    
    -
    
    Registration Rights Agreement, by and between Global Industries,
Ltd., as Issuer, and Lehman Brothers Inc., as Representative of the
Several Initial Purchasers, dated as of July 27, 2007, incorporated
by reference to Exhibit 4.2 of registrants Form 10-Q filed August 6,
2007.10.40
    
    -
    
    Purchase Agreement, between Global Industries, Ltd. and Lehman
Brothers Inc., Calyon Securities (USA) Inc., Fortis Securities LLC
and Natexis Bleichroeder Inc., dated July 23, 2007, incorporated by
reference to Exhibit 10.1 of registrants Form 10-Q filed August 6,
2007.10.41
    
    -
    
    Amendment No. 2 to Third Amended and Restated Credit Agreement, dated
July 27, 2007, by and among Global Industries, Ltd., Global Offshore
Mexico, S. de R.L. de C.V., and Global Industries International
L.L.C. in its capacity as general partner of Global Industries
International, L.P., the Lenders party to the Credit Agreement, and
Calyon New York Branch, as administrative agent for the Lenders,
incorporated by reference to Exhibit 10.2 of registrants Form 10-Q
filed August 6, 2007.10.42
    
    -
    
    Amendment No. 3 to Third Amended and Restated Credit Agreement dated
October 18, 2007 among Global Industries, Ltd., Global Offshore
Mexico, S. DE R.L. DE C.V., Global International, L.L.C., in its
capacity as general partner of 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
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##### Table of Contents



filed October 24, 2007.10.44
    
    -
    
    Amendment No. 4 and Waiver to the Third Amended and Restated Credit
Agreement dated November 7, 2008 among Global Industries, Ltd.,
Global Offshore Mexico, S. de R.L. de C.V., Global Industries
International, L.L.C., in its capacity as general partner of Global
Industries International, L.P., the Lenders and Calyon New York
Branch, as administrative agent for the Lenders, incorporated by
reference to Exhibit 10.2 of registrants Quarterly Report on Form
10-Q for the quarter ended September 30, 2008.10.46
    
    -
    
    Form of Change-In-Control Agreement (without tax gross-up),
incorporated by reference to Exhibit 10.4 of registrants Quarterly
Report on Form 10-Q for the quarter ended September 30, 2008.10.47
    
    -
    
    Resignation and Release Agreement between Global Industries, Ltd. and
Mr. B.K. Chin effective as of October 16, 2008, incorporated by
reference to Exhibit 10.1 of registrants Form 8-K filed October 22,
2008.10.48
    
    -
    
    Amended Retirement Agreement between Global Industries, Ltd. and Mr.
William J. Doré effective as of December 5, 2008, incorporated by
reference to Exhibit 10.1 of registrants Form 8-K filed December 8,
2008.10.49
    
    -
    
    Amendment No. 5 to the Third Amended and Restated Credit Agreement
dated February 25, 2009 among Global Industries, Ltd., Global
Offshore Mexico, S. de R.L. de C.V., Global Industries International,
L.L.C., in its capacity as general partner of Global Industries
International, L.P., the Lenders and Calyon New York Branch, as
administrative agent for the Lenders, incorporated by reference to
Exhibit 10.49 of registrants Form 10-K filed March 2, 2009.10.50
    
    -
    
    First Amendment to Global Industries, Ltd. 2005 Stock Incentive Plan,
incorporated by reference to Appendix A of registrants Definitive
Schedule 14A filed April 3, 2009.10.51
    
    -
    
    Form of Executive Long-Term Incentive Performance Unit Agreement (EPS
Based; Multi-Year), incorporated by reference to Exhibit 10.2 of
registrants Form 10-Q filed May 7, 2009.10.52
    
    -
    
    Form of Executive Long-Term Incentive Performance Unit Agreement (EPS
Based; One Year Performance Period; 14-Month Restricted Period),
incorporated by reference to Exhibit 10.3 of registrants Form 10-Q
filed May 7, 2009.10.53
    
    -
    
    Change in Control Agreement between the registrant and John A.
Clerico dated June 15, 2009, incorporated by reference to Exhibit
10.1 of registrants Form 8-K filed June 18, 2009.10.54
    
    -
    
    2009 Amendment to Global Industries, Ltd. 1998 Equity Incentive Plan,
incorporated by reference to Exhibit 10.1 of registrants Form 10-Q
filed August 6, 2009.10.55
    
    -
    
    First Amendment to Global Industries, Ltd. Management Incentive Plan,
incorporated by reference to Exhibit 10.2 of registrants Form 10-Q
filed August 6, 2009.10.55
    
    -
    
    Second Amendment to Global Industries, Ltd. 2005 Stock Incentive
Plan, incorporated by reference to Exhibit 10.3 of registrants Form
10-Q filed August 6, 2009.*10.56
    
    -
    
    Second Amendment to Global Industries, Ltd. Management Incentive Plan.*10.57
    
    -
    
    First Amendment to Form of Executive Long-Term Incentive Performance
Unit Agreement (EPS Based; Multi-Year).*10.58
    
    -
    
    First Amendment to Form of Executive Long-Term Incentive Performance
Unit Agreement (EPS Based; One Year Performance Period; 14-Month
Restricted Period).
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*21.1
    
    -
    
    Subsidiaries of the Registrant.*23.1
    
    -
    
    Consent of Deloitte & Touche LLP.*31.1
    
    -
    
    Section 302 Certification of John A. Clerico.*31.2
    
    -
    
    Section 302 Certification of Peter S. Atkinson.**32.1
    
    -
    
    Section 906 Certification of John A. Clerico.**32.2
    
    -
    
    Section 906 Certification of Peter S. Atkinson.
 
 *
    
    Included with this filing.
    
    Indicates management contract or compensatory plan or arrangement filed
pursuant to Item 601(b)(10)(iii) of Regulation S-K.**
    
    Furnished herewith 99




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##### Table of Contents



Global Industries, Ltd.
Schedule II Valuation and Qualifying Accounts
For the Years Ended December 31, 2009, 2008, and 2007
 AdditionsBalance at
    
    
    Charged to
    
    
    Charged to Other
    
    
    
    
    
    
    Balance atDescription
    
    Beginning of Period
    
    
    Costs and Expenses
    
    
    Accounts
    
    
    Deductions
    
    
    End of Period(in thousands)Year ended December 31, 2009 Allowances for doubtful accounts
    
    $
    12,070
    
    
    $
    7,448
    
    
    $
    
    
    
    $
    16,753
    
    
    $
    2,765Year ended December 31, 2008  Allowances for doubtful accounts
    
    $
    1,278
    
    
    $
    11,512
    
    
    $
    
    
    
    $
    720
    
    
    $
    12,070Year ended December 31, 2007 Allowances for doubtful accounts
    
    $
    17,203
    
    
    $
    11,819
    
    
    $
    
    
    
    $
    27,744
    
    
    $
    1,278
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##### Table of Contents



SIGNATURES
  GLOBAL INDUSTRIES, LTD.By:
    /s/ PETER S. ATKINSONPeter S. AtkinsonPresident
(Principal Financial Officer)February 26, 2010   /s/ JOHN A. CLERICO
    
    Interim Chairman of the Board andJohn A. Clerico
    
    Chief Executive Officer
    
    February 26, 2010/s/ PETER S. ATKINSON
    
    PresidentPeter S. Atkinson
    
    (Principal Financial Officer)
    
    February 26, 2010/s/ TRUDY P. MCCONNAUGHHAY
    
    ControllerTrudy P. McConnaughhay
    
    (Principal Accounting Officer)
    
    February 26, 2010/s/ LAWRENCE R. DICKERSONLawrence R. Dickerson
    
    Director
    
    February 26, 2010/s/ EDWARD P. DJEREJIAN

Edward P. Djerejian
    
    Director
    
    February 26, 2010/s/ WILLIAM J. DORE

William J. Doré
    
    Director
    
    February 26, 2010/s/ LARRY E. FARMER

Larry E. Farmer
    
    Director
    
    February 26, 2010/s/ EDGAR G. HOTARD

Edgar G. Hotard
    
    Director
    
    February 26, 2010/s/ RICHARD A. PATTAROZZI

Richard A. Pattarozzi
    
    Director
    
    February 26, 2010/s/ JAMES L. PAYNE

James L. Payne
    
    Director
    
    February 26, 2010/s/ MICHAEL J. POLLOCK

Michael J. Pollock
    
    Director
    
    February 26, 2010
 101