Note 10 – Earnings Per Share

We have shares of restricted stock issued and outstanding, some of which remain subject to vesting requirements. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding common stock and are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share (“EPS”) amounts under the two class method in periods in which we have earnings from continuing operations. For periods in which we have a net loss we do not use the two class method as holders of our restricted shares are not contractually obligated to share in such losses.

The presentation of basic EPS amounts on the face of the accompanying condensed consolidated statements of operations and comprehensive income is computed by dividing the net income applicable to Helix common shareholders by the weighted average shares of outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. The computations of the numerator (Income) and denominator (Shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations and comprehensive income are as follows (in thousands):


		Three Months Ended				Three Months Ended
		June 30, 2012				June 30, 2011
		Income		Shares		Income		Shares
Basic:
Net income applicable to Helix common shareholders	$	44,641			$	41,313
Less: Undistributed net income allocable to participating securities.....................................		(449	)			(514	)
Net income applicable to Helix common shareholders	$	44,192		104,563	$	40,799		104,673


		Three Months Ended			Three Months Ended
		June 30, 2012			June 30, 2011
		Income	Shares		Income	Shares
Diluted:
Net income per common share - Basic........	$	44,192	104,563	$	40,799	104,673
Effect of dilutive securities:
Stock options......................................................................		─	118		─	106
Undistributed earnings reallocated to participating securities.............................................................................		2	─		3	─
2025 Notes and 2032 Notes...........................................		─	─		─	─
Convertible preferred stock..............................................		10	361		10	361
Net income per common share - Diluted......................	$	44,204	105,042	$	40,812	105,140


		Six Months Ended				Six Months Ended
		June 30, 2012				June 30, 2011
		Income		Shares		Income		Shares
Basic:
Net income applicable to Helix common shareholders	$	110,368			$	67,170
Less: Undistributed net income allocable to participating securities.....................................		(1,111	)			(850	)
Net income applicable to Helix common shareholders	$	109,257		104,547	$	66,320		104,573


		Six Months Ended			Six Months Ended
		June 30, 2012			June 30, 2011
		Income	Shares		Income	Shares
Diluted:
Net income per common share - Basic........	$	109,257	104,547	$	66,320	104,573
Effect of dilutive securities:
Stock options......................................................................		─	104		─	90
Undistributed earnings reallocated to participating securities.............................................................................		5	─		4	─
2025 Notes and 2032 Notes...........................................		─	─		─	─
Convertible preferred stock..............................................		20	361		20	361
Net income per common share - Diluted......................	$	109,282	105,012	$	66,344	105,024

There were no diluted shares associated with our 2025 Convertible Senior Notes as the conversion price of $32.14 (and conversion trigger of $38.57 per share) was not met in either of the three- or six-month periods ended June 30, 2012 and 2011. Also, no diluted shares were included for our 2032 Notes for the three- or six-month periods ended June 30, 2012 as the conversion price of $25.02 (and conversion trigger of $32.53 per share) was not met and we have the right to settle any such future conversions in cash at our sole discretion.