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## TIDEWATER INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended March 31, 2010, 2009, and 2008 

Assumptions used to determine net periodic benefit costs for the fiscal years ended March 31 were as follows: 

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To develop the expected long-term rate of return on assets assumption, the company considered the current level of expected returns on various asset classes. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected return on plan assets assumption for the portfolio. 

Based upon the assumptions used to measure the company’s qualified pension and postretirement benefit obligation at March 31, 2010, including pension and postretirement benefits attributable to estimated future employee service, the company expects that benefits to be paid over the next ten years will be as follows: 

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The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation at March 31, 2010 was 10% for pre-65 medical and prescription drug coverage and 7% for post- 65 medical coverage; gradually declining to 4.5% in the year 2029. The assumed health care cost trend rate used in measuring the net periodic postretirement benefit cost for the year ended March 31, 2010 was 10% for pre-65 medical and prescription drug coverage and 7% for post-65 medical coverage; gradually declining to 4.5% in the year 2029. The health care cost trend rate used in measuring the net periodic postretirement benefit cost for fiscal 2011 is expected to be 9.5% for pre-65 medical and prescription drug coverage and 7% for post-65 medical coverage. A 1% increase in the assumed health care cost trend rates for each year would increase the accumulated postretirement benefit obligation by approximately $3.6 million at March 31, 2010 and increase the total of service and interest cost for the year ended March 31, 2010 by $0.4 million. A 1% decrease in the assumed health care cost trend rates for each year would decrease the accumulated postretirement benefit obligation by approximately $3.0 million at March 31, 2010 and decrease the total of service and interest cost for the year ended March 31, 2010 by $0.3 million. 

## Defined Contribution Plans 

Upon meeting various citizenship, age and service requirements, employees are eligible to participate in a defined contribution savings plan and can contribute from 2% to 75% of their base salary to an employee benefit trust. The company matches with company common stock 50% of the first 6% of eligible compensation deferred by the employee. The plan held 264,194 shares and 263,458 shares of the company's common stock at March 31, 2010 and 2009, respectively. Amounts charged to expense for the plan for 2010, 2009 and 2008 were $1.6 million, $1.9 million and $2.0 million, respectively. Forfeitures totaling approximately $0.2 million, $0.2 million and $0.1 million reduced the costs of the plan for fiscal 2010, 2009 and 2008, respectively. 

A non-qualified supplemental savings plan is provided to executive officers and designated employees who have the opportunity to defer up to 50% of their eligible compensation that cannot be deferred under the existing 401(k) plan due to IRS limitations. A company match is provided on these contributions equal to 50% of the first 6% of eligible compensation deferred by the employee. The plan also allows participants to 

