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Financial Instruments and Risk ConcentrationIn the normal course of business, we manage risks associated with foreign exchangerates and interest rates through a variety of strategies, including the use of hedgingtransactions. As a matter of policy, we do not use derivative instruments unless there isan underlying exposure.Other financial instruments that potentially subject us to concentrations of credit risk areprincipally cash and cash equivalents and accounts receivable. The carrying values ofcash and cash equivalents and bank borrowings approximate their fair values due to theshort maturity of those instruments or the short-term duration of the associated interestrate periods. Accounts receivable are generated from a broad group of customers,primarily from within the energy industry, which is our major source of revenue. Due totheir short-term nature, carrying values of our accounts receivable and accounts payableapproximate fair market value.One customer in Angola owed us $40 million at December 31, 2011 and $56 million atDecember 31, 2010, all of which is overdue. We completed the work on the contractsrelated to this receivable in the first quarter of 2010. Based on our past history with thiscustomer, we believe this receivable ultimately will be collected. During 2011, based onour current estimate of when the receivable will be collected, we reduced the net carryingvalue of the receivable by $3 million to reflect a present value estimate and reclassified$22 million to Other non-current assets on our balance sheet at December 31, 2011,which represents the amount we believe will be collected more than one year from thebalance sheet date. The $3 million adjustment was charged against our earnings as areduction of revenue in our Subsea Projects segment.48 Oceaneering International, Inc.