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
		June 30, 2014			June 30, 2013
		Income	Shares		Income	Shares
Basic:
Continuing operations:
Net income applicable to Helix	$	57,782		$	27,211
Less: Loss from discontinued operations, net of tax		-			29
Net income from continuing operations		57,782			27,240
Less: Undistributed income allocable to participating securities – continuing operations		(300)			(203)
Net income applicable to common shareholders – continuing operations	$	57,482	104,992	$	27,037	105,046


Discontinued operations:
Loss from discontinued operations, net of tax	$	-	104,992	$	(29)	105,046


		Three Months Ended			Three Months Ended
		June 30, 2014			June 30, 2013
		Income	Shares		Income	Shares
Diluted:
Continuing operations:
Net income applicable to common shareholders – continuing operations	$	57,482	104,992	$	27,037	105,046
Effect of dilutive securities:
Share-based awards other than participating securities		-	303		-	87
Undistributed income reallocated to participating securities		1	-		-	-
Net income applicable to common shareholders – continuing operations	$	57,483	105,295	$	27,037	105,133

Discontinued operations:
Loss from discontinued operations, net of tax	$	-	105,295	$	(29)	105,133


		Six Months Ended			Six Months Ended
		June 30, 2014			June 30, 2013
		Income	Shares		Income	Shares
Basic:
Continuing operations:
Net income applicable to Helix	$	111,501		$	28,826
Less: Income from discontinued operations, net of tax		-			(1,029)
Net income from continuing operations		111,501			27,797
Less: Undistributed income allocable to participating securities – continuing operations		(586)			(201)
Net income applicable to common shareholders – continuing operations	$	110,915	105,059	$	27,596	105,039


Discontinued operations:
Income from discontinued operations, net of tax	$	-		$	1,029
Less: Undistributed income allocable to participating securities – discontinued operations		-			(7)
Net income applicable to common shareholders – discontinued operations	$	-	105,059	$	1,022	105,039


		Six Months Ended			Six Months Ended
		June 30, 2014			June 30, 2013
		Income	Shares		Income	Shares
Diluted:
Continuing operations:
Net income applicable to common shareholders – continuing operations	$	110,915	105,059	$	27,596	105,039
Effect of dilutive securities:
Share-based awards other than participating securities		-	300		-	102
Undistributed income reallocated to participating securities		2	-		1	-
Net income applicable to common shareholders – continuing operations	$	110,917	105,359	$	27,597	105,141

Discontinued operations:
Income from discontinued operations, net of tax	$	-	105,359	$	1,029	105,141

No diluted shares were included for the 2032 Notes for the three- and six-month periods ended June 30, 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).