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Share-based compensation (Tables)
9 Months Ended
Sep. 30, 2012
Share-based compensation  
Schedule of share-based compensation expense and related income tax benefit

 

 

 

 

Three months ended
September 30

 

Nine months ended
September 30

 

(in millions)

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense (1)

 

$

1.2

 

$

1.0

 

$

4.7

 

$

2.7

 

Income tax benefit

 

0.4

 

0.4

 

1.6

 

0.9

 

(1)         The Company has not capitalized any share-based compensation cost.

Schedule of nonqualified stock options by grant year

 

 

September 30, 2012

 

Outstanding & Exercisable (Vested)

 

Year of
grant

 

Range of
exercise prices

 

Number
of options

 

Weighted-average
remaining
contractual life

 

Weighted-average
exercise price

 

 

 

 

 

 

 

 

 

 

 

2003

 

$

20.49

 

14,000

 

0.6

 

$

20.49

 

Schedule of nonqualified stock options activity and statistics

 

 

 

 

Three months ended
September 30

 

Nine months ended
September 30

 

(dollars in thousands, except prices)

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Shares exercised

 

8,000

 

2,000

 

41,500

 

104,000

 

Weighted-average exercise price

 

$

20.49

 

$

20.49

 

$

21.06

 

$

20.81

 

Cash received from exercise

 

$

164

 

$

41

 

$

874

 

$

2,164

 

Intrinsic value of shares exercised (1)

 

$

89

 

$

6

 

$

354

 

$

846

 

Tax benefit (expense) realized for the deduction of exercises

 

$

35

 

$

(85

)

$

138

 

$

186

 

 

 

(1)         Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalents exceeds the exercise price of the option.

Schedule of stock appreciation rights by grant year

 

 

September 30, 2012

 

Outstanding & Exercisable (Vested)

 

Year of
grant

 

Range of
exercise prices

 

Number of shares
underlying SARs

 

Weighted-average
remaining
contractual life

 

Weighted-average
exercise price

 

 

 

 

 

 

 

 

 

 

 

2004

 

$

26.02

 

62,000

 

1.6

 

$

26.02

 

2005

 

26.18

 

106,000

 

2.4

 

26.18

 

 

 

$

26.02 —26.18

 

168,000

 

2.1

 

$

26.12

 

Schedule of stock appreciation rights activity and statistics

 

 

 

Three months ended
September 30

 

Nine months ended
September 30

 

(dollars in thousands, except prices)

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Shares underlying SARS expired

 

 

18,000

 

 

58,000

 

Weighted-average price of shares expired

 

 

$

26.18

 

 

$

26.13

 

Shares underlying SARS exercised

 

2,000

 

 

114,000

 

 

Weighted-average price of shares exercised

 

$

26.18

 

 

$

26.17

 

 

Intrinsic value of shares exercised (1)

 

$

3

 

 

$

197

 

 

Tax benefit realized for the deduction of exercises

 

$

1

 

 

$

77

 

 

(1)         Intrinsic value is the amount by which the fair market value of the underlying stock and the related dividend equivalent rights exceeds the exercise price of the right.

Schedule of restricted share and stock awards

 

 

 

 

Three months ended September 30

 

Nine months ended September 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

14,807

 

$

22.45

 

57,909

 

$

23.91

 

46,807

 

$

24.45

 

89,709

 

$

24.64

 

Granted

 

 

 

 

 

 

 

 

 

Vested

 

(1,000

)

24.68

 

 

 

(33,000

)

25.35

 

(29,800

)

26.03

 

Forfeited

 

 

 

(300

)

24.71

 

 

 

(2,300

)

24.98

 

Outstanding, end of period

 

13,807

 

$

22.29

 

57,609

 

$

23.90

 

13,807

 

$

22.29

 

57,609

 

$

23.90

 

 

 

(1)         Weighted-average grant-date fair value per share. The grant date fair value of a restricted stock award share was the closing or average price of HEI common stock on the date of grant.

Schedule of restricted stock units

 

 

 

 

Three months ended September 30

 

Nine months ended September 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

319,071

 

$

22.81

 

231,517

 

$

21.70

 

247,286

 

$

21.80

 

146,500

 

$

19.80

 

Granted

 

 

 

10,000

(3)

22.31

 

94,846

(2)

26.00

 

96,017

(3)

24.69

 

Vested

 

(2,500

)

22.31

 

 

 

(23,997

)

24.69

 

 

 

Forfeited

 

(3,346

)

24.63

 

 

 

(4,910

)

24.92

 

(1,000

)

22.60

 

Outstanding, end of period

 

313,225

 

$

22.80

 

241,517

 

$

21.73

 

313,225

 

$

22.80

 

241,517

 

$

21.73

 

 

 

(1)         Weighted-average grant-date fair value per share. The grant date fair value of the restricted stock units was the average price of HEI common stock on the date of grant.

(2)         Total weighted-average grant-date fair value of $2.5 million.

(3)         Total weighted-average grant-date fair value of $0.2 million and $2.4 million for three and nine months ended September 30, 2011, respectively.

Schedule of Long-Term Incentive Plan (LTIP) linked to total return to shareholders

 

 

 

Three months ended September 30

 

Nine months ended September 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

239,407

 

$

29.12

 

199,563

 

$

25.99

 

197,385

 

$

25.94

 

126,782

 

$

20.33

 

Granted

 

1,723

 

30.71

 

 

 

80,647

(2)

30.71

 

75,015

(3)

35.46

 

Vested

 

 

 

 

 

(35,397

)

14.85

 

 

 

Forfeited

 

(2,450

)

31.09

 

(1,063

)

30.67

 

(3,955

)

30.82

 

(3,297

)

25.10

 

Outstanding, end of period

 

238,680

 

$

29.11

 

198,500

 

$

25.97

 

238,680

 

$

29.11

 

198,500

 

$

25.97

 

 

 

(1)         Weighted-average grant-date fair value per share determined using a Monte Carlo simulation model.

(2)         Total weighted-average grant-date fair value of $2.5 million.

(3)         Total weighted-average grant-date fair value of $2.7 million.

Schedule of assumptions used to determine the fair value of Long-Term Incentive Plan (LTIP) linked to total return to shareholders (TRS)

 

 

 

 

2012

 

2011

 

Risk-free interest rate

 

0.33%

 

1.25%

 

Expected life in years

 

3

 

3

 

Expected volatility

 

25.3%

 

27.8%

 

Range of expected volatility for Peer Group

 

15.5% to 34.5%

 

21.2% to 82.6%

 

Grant date fair value (per share)

 

$

30.71

 

$

35.46

 

Schedule of Long-Term Incentive Plan (LTIP) linked to other performance conditions

 

 

 

Three months ended September 30

 

Nine months ended September 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Outstanding, beginning of period

 

295,184

 

$

23.95

 

185,767

 

$

22.63

 

182,498

 

$

22.63

 

161,310

 

$

18.66

 

Granted

 

4,148

 

27.30

 

 

 

122,852

(2)

26.05

 

113,831

(3)

24.96

 

Vested

 

 

 

 

 

 

 

 

 

Cancelled

 

(17,911

)

18.95

 

 

 

(17,911

)

18.95

 

(81,908

)

18.38

 

Forfeited

 

(3,676

)

24.78

 

(1,596

)

22.74

 

(9,694

)

24.44

 

(9,062

)

19.61

 

Outstanding, end of period

 

277,745

 

$

24.31

 

184,171

 

$

22.63

 

277,745

 

$

24.31

 

184,171

 

$

22.63

 

 

 

(1)         Weighted-average grant-date fair value per share based on the average price of HEI common stock on the date of grant.

(2)         Total weighted-average grant-date fair value of $3.2 million.

(3)         Total weighted-average grant-date fair value of $2.8 million.