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Share-based compensation (Tables)
6 Months Ended
Jun. 30, 2011
Share-based compensation  
Schedule of share-based compensation expense and related income tax benefit

 

 

 

 

Three months ended
June 30

 

Six months ended
June 30

 

(dollars in millions)

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense (1)

 

0.5

 

0.8

 

1.7

 

1.4

 

Income tax benefit

 

0.1

 

0.2

 

0.5

 

0.4

 

 

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

Schedule of nonqualified stock options

 

 

June 30, 2011

 

 

 

Outstanding & Exercisable (Vested)

 

Year of
grant

 

Range of
exercise prices

 

Number
of options

 

Weighted-average
remaining
contractual life

 

Weighted-average
exercise price

 

 

 

 

 

 

 

 

 

 

 

2002

 

$

21.68

 

20,000

 

0.8

 

$

21.68

 

2003

 

20.49

 

93,500

 

1.7

 

20.49

 

 

 

$

20.49 – 21.68

 

113,500

 

1.5

 

$

20.70

Schedule of nonqualified stock options activity and statistics

 

 

 

 

Three months ended
June 30

 

Six months ended
June 30

 

(dollars in thousands, except prices)

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Shares expired

 

 

 

 

2,000

 

Weighted-average price of shares expired

 

 

 

 

$

20.49

 

Shares exercised

 

69,500

 

17,000

 

102,000

 

63,000

 

Weighted-average exercise price

 

$

21.07

 

$

20.34

 

$

20.82

 

$

16.25

 

Cash received from exercise

 

$

1,465

 

$

346

 

$

2,123

 

$

1,024

 

Intrinsic value of shares exercised (1)

 

$

581

 

$

76

 

$

840

 

$

625

 

Tax benefit realized for the deduction of exercises

 

$

170

 

$

29

 

$

271

 

$

243

 

 

(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

 

 

June 30, 2011

 

 

 

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

 

132,000

 

1.8

 

$

26.02

 

2005

 

26.18

 

278,000

 

2.5

 

26.18

 

 

 

$

26.02 –26.18

 

410,000

 

2.3

 

$

26.13

Schedule of stock appreciation rights activity and statistics

 

 

 

 

Three months ended
June 30

 

Six months ended
June 30

 

(dollars in thousands, except prices)

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Shares forfeited

 

 

 

 

 

Weighted-average price of shares forfeited

 

 

 

 

 

Shares expired

 

4,000

 

12,000

 

40,000

 

18,000

 

Weighted-average price of shares expired

 

$

26.18

 

$

26.18

 

$

26.11

 

$

26.18

 

Shares exercised

 

 

 

 

Schedule of restricted share and stock awards

 

 

 

 

Three months ended June 30

 

Six months ended June 30

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

88,709

 

$

24.63

 

120,700

 

$

25.48

 

89,709

 

$

24.64

 

129,000

 

$

25.50

 

Granted

 

 

 

 

 

 

 

 

 

Vested

 

(29,800

)

26.03

 

(42,000

)

26.30

 

(29,800

)

26.03

 

(43,565

)

26.29

 

Forfeited

 

(1,000

)

24.68

 

 

 

(2,000

)

25.02

 

(6,735

)

25.75

 

Outstanding, end of period

 

57,909

 

$

23.91

 

78,700

 

$

25.04

 

57,909

 

$

23.91

 

78,700

 

$

25.04

 

 

(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 June 30

 

Six months ended June 30

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

230,517

 

$

21.69

 

69,000

 

$

16.99

 

146,500

 

$

19.80

 

70,500

 

$

16.99

 

Granted

 

1,000

(2)

26.25

 

77,500

(4)

22.30

 

86,017

(3)

24.97

 

77,500

(4)

22.30

 

Vested

 

 

 

 

 

 

 

(250

)

16.99

 

Forfeited

 

 

 

 

 

(1,000

)

22.60

 

(1,250

)

16.99

 

Outstanding, end of period

 

231,517

 

$

21.70

 

146,500

 

$

19.80

 

231,517

 

$

21.70

 

146,500

 

$

19.80

 

 

(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 $26,000.

(3)         Total weighted-average grant-date fair value of $2.1 million.

(4)         Total weighted-average grant-date fair value of $1.7 million

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

 

 

 

 

Three months ended June 30

 

Six months ended June 30

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

200,735

 

$

25.94

 

132,588

 

$

20.42

 

126,782

 

$

20.33

 

36,198

 

$

14.85

 

Granted

 

475

 

35.46

 

 

 

75,015

(2)

35.46

 

97,191

(3)

22.45

 

Vested

 

 

 

 

 

 

 

 

 

Forfeited

 

(1,647

)

22.45

 

 

 

(2,234

)

22.45

 

(801

)

14.85

 

Outstanding, end of period

 

199,563

 

$

25.99

 

132,588

 

$

20.42

 

199,563

 

$

25.99

 

132,588

 

$

20.42

 

 

(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 $2.7 million.

(3)          Total weighted-average grant-date fair value of $2.2 million.

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

 

 

 

 

2011

 

2010

 

Risk-free interest rate

 

1.25%

 

1.30%

 

Expected life in years

 

3

 

3

 

Expected volatility

 

27.8%

 

27.9%

 

Range of expected volatility for Peer Group

 

21.2% to 82.6%

 

22.3% to 52.3%

 

Grant date fair value (per share)

 

$35.46

 

$22.45

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

 

 

 

 

Three months ended June 30

 

Six months ended June 30

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, beginning of period

 

273,550

 

$

21.26

 

184,535

 

$

18.69

 

161,310

 

$

18.66

 

24,131

 

$

16.99

 

Granted

 

712

 

26.25

 

 

 

113,831

(2)

24.96

 

160,939

(3)

18.95

 

Vested

 

 

 

 

 

 

 

 

 

Cancelled

 

(81,908

)

18.38

 

 

 

(81,908

)

18.38

 

 

 

Forfeited

 

(6,587

)

18.95

 

 

 

(7,466

)

18.95

 

(535

)

16.99

 

Outstanding, end of period

 

185,767

 

$

22.63

 

184,535

 

$

18.69

 

185,767

 

$

22.63

 

184,535

 

$

18.69

 

 

(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 $2.8 million.

(3)          Total weighted-average grant-date fair value of $3.0 million.