Earnings per share

9 Months Ended

Sep. 30, 2011

Earnings per share

Earnings per share

8 · Earnings per share

Under the two-class method of computing earnings per share (EPS), EPS was comprised as follows for both unvested restricted stock awards and unrestricted common stock:

	Three months ended September 30				Nine months ended September 30
	2011		2010		2011		2010
	Basic and diluted		Basic and diluted		Basic and diluted		Basic and diluted
Distributed earnings	$	0.31	$	0.31	$	0.93	$	0.93
Undistributed earnings	0.19		0.04		0.16		0.02
	$	0.50	$	0.35	$	1.09	$	0.95

As of September 30, 2011 and 2010, the antidilutive effects of SARs of 392,000 shares and 462,000 shares of HEI common stock, respectively, for which the exercise prices were greater than the closing market price of HEI’s common stock were not included in the computation of diluted EPS.