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Revenue in Excess of Amounts Billed on uncompleted fixed-price contracts accounted forusing the percentage-of-completion method is summarized as follows:December 31,(in thousands) 2011 2010Revenue recognized $ 271,233 $ 262,602Less: Billings to customers (252,745) (238,473)Revenue in excess of amounts billed $ 18,488 $ 24,129Billings in Excess of Revenue Recognized on uncompleted fixed-price contractsaccounted for using the percentage-of-completion method are summarized as follows:December 31,(in thousands) 2011 2010Amounts billed to customers $ 78,876 $ 90,315Less: Revenue recognized (42,952 ) (45,144 )Billings in excess of revenue recognized $ 35,924 $ 45,171Stock-Based Compensation. We recognize all share-based payments to directors,officers and employees over their vesting periods in the income statement based on theirestimated fair values.The Compensation Committee of our Board of Directors has expressed its intention torefrain from using stock options as a component of compensation for our executiveofficers and other employees for the foreseeable future. Additionally, our Board ofDirectors has expressed its intention to refrain from using stock options as a componentof nonemployee director compensation for the foreseeable future. No stock options havebeen granted since 2005, and we no longer have any stock options outstanding. Formore information on our employee benefit plans, see Note 8.Income Taxes. We provide income taxes at appropriate tax rates in accordance with ourinterpretation of the respective tax laws and regulations after review and consultation withour internal tax department, tax advisors and, in some cases, legal counsel in variousjurisdictions. We provide for deferred income taxes for differences between carryingamounts of assets and liabilities for financial and tax reporting purposes. Our policy is toprovide for deferred U.S. income taxes on foreign income only to the extent such incomeis not to be indefinitely reinvested in foreign entities. We provide a valuation allowanceagainst deferred tax assets when it is more likely than not that the asset will not berealized.We recognize the benefit for a tax position if the benefit is more likely than not to besustainable upon audit by the applicable taxing authority. If this threshold is met, the taxbenefit is then measured and recognized at the largest amount that is greater than 50percent likely of being realized upon ultimate settlement. We account for any applicableinterest and penalties on uncertain tax positions as a component of our provision forincome taxes on our financial statements.36 Oceaneering International, Inc.