Note 9 — Earnings Per Share

We have shares of restricted stock issued and outstanding, which currently are unvested. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding unrestricted common stock and the shares 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 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 are as follows (in thousands):


		Three Months Ended			Three Months Ended
		March 31, 2014			March 31, 2013
		Income	Shares		Income	Shares
Basic:
Continuing operations:
Net income applicable to Helix	$	53,719		$	1,615
Less: Income from discontinued operations, net of tax		-			(1,058)
Net income from continuing operations		53,719			557
Less: Undistributed income allocable to participating securities – continuing operations		(286)			(5)
Net income applicable to common shareholders – continuing operations	$	53,433	105,126	$	552	105,032


Discontinued operations:
Income from discontinued operations, net of tax	$	-		$	1,058
Less: Undistributed income allocable to participating securities – discontinued operations		-			(8)
Net income applicable to common shareholders – discontinued operations	$	-	105,126	$	1,050	105,032


		Three Months Ended			Three Months Ended
		March 31, 2014			March 31, 2013
		Income	Shares		Income	Shares
Diluted:
Continuing operations:
Net income applicable to common shareholders – continuing operations	$	53,433	105,126	$	552	105,032
Effect of dilutive securities:
Share-based awards other than participating securities		-	249		-	133
Undistributed income reallocated to participating securities		1	-		-	-
Net income applicable to common shareholders – continuing operations	$	53,434	105,375	$	552	105,165

Discontinued operations:
Income from discontinued operations, net of tax	$	-	105,375	$	1,058	105,165

No diluted shares were included for the 2032 Notes for the three-month periods ended March 31, 2014 and 2013 as the conversion price of $25.02 and the conversion trigger of $32.53 per share were not met in either period, and because we have the right to settle any such future conversions in cash at our sole discretion (Note 6).