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Share-based compensation (Tables)
12 Months Ended
Dec. 31, 2011
Share-based compensation  
Schedule of share-based compensation expense and related income tax benefit

 

 

(in millions)

 

2011  

 

2010  

 

2009  

 

 

 

 

 

 

 

 

 

Share-based compensation expense 1

 

$3.8

 

 

$2.7

 

 

$1.1

 

 

Income tax benefit

 

1.3

 

 

0.9

 

 

0.3

 

 

 

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

Summary of information about nonqualified stock options

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

215,500

 

 

$20.76

 

374,500

 

 

$19.73

 

375,500

 

 

$19.73

 

Granted

 

 

 

 

 

 

 

 

 

 

Exercised

 

(160,000

)

 

20.70

 

(157,000

)

 

18.32

 

 

 

 

Forfeited

 

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

(2,000

)

 

20.49

 

(1,000

)

 

17.61

 

Outstanding, December 31

 

55,500

 

 

$20.92

 

215,500

 

 

$20.76

 

374,500

 

 

$19.73

 

Exercisable, December 31

 

55,500

 

 

$20.92

 

215,500

 

 

$20.76

 

374,500

 

 

$19.73

 

 

(1)  Weighted-average exercise price

Schedule of nonqualified stock options by grant year

 

 

December 31, 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

0.3

$21.68

 

2003

20.49

35,500

1.0

20.49

 

 

$20.49 – 21.68

55,500

0.7

$20.92

 

Schedule of nonqualified stock options activity and statistics

 

 

(dollars in thousands)

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

Cash received from exercise

 

$3,312

 

$2,876

 

 

Intrinsic value of shares exercised 1

 

1,270

 

1,355

 

 

Tax benefit realized for the deduction of exercises

 

181

 

278

 

 

 

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.

Summary of information about stock appreciation rights

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

450,000

 

 

$26.13

 

480,000

 

 

$26.13

 

791,000

 

 

$26.12

 

Granted

 

 

 

 

 

 

 

 

 

 

Exercised

 

(110,000

)

 

26.09

 

 

 

 

 

 

 

Forfeited

 

 

 

 

 

 

 

(6,000

)

 

26.18

 

Expired

 

(58,000

)

 

26.13

 

(30,000

)

 

26.18

 

(305,000

)

 

26.10

 

Outstanding, December 31

 

282,000

 

 

$26.14

 

450,000

 

 

$26.13

 

480,000

 

 

$26.13

 

Exercisable, December 31

 

282,000

 

 

$26.14

 

450,000

 

 

$26.13

 

480,000

 

 

$26.13

 

 

(1)  Weighted-average exercise price

Schedule of stock appreciation rights by grant year

 

 

December 31, 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

72,000

2.3

$26.02

 

2005

26.18

210,000

2.6

26.18

 

 

$26.02 –26.18

282,000

2.5

$26.14

 

Schedule of stock appreciation rights activity and statistics

 

 

(dollars in thousands, except prices)

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

Shares vested

 

 

 

228,000

 

Aggregate fair value of vested shares

 

 

 

$1,354

 

Intrinsic value of shares exercised 1

 

$64

 

 

 

Tax benefit realized for the deduction of exercises

 

$25

 

 

 

Dividend equivalent shares distributed under Section 409A

 

 

 

3,143

 

Weighted-average Section 409A distribution price

 

 

 

$13.64

 

Intrinsic value of shares distributed under Section 409A

 

 

 

$43

 

Tax benefit realized for Section 409A distributions

 

 

 

$17

 

 

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 right.

Schedule of restricted share and stock awards

 

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

89,709

 

 

$24.64

 

129,000

 

 

$25.50

 

160,500

 

 

$25.51

 

Granted

 

–  

 

 

18,009

(2)

 

22.21

 

 

 

 

Vested

 

(40,102

)

 

24.83

 

(43,565

)

 

26.29

 

(3,851

)

 

24.52

 

Forfeited

 

(2,800

)

 

24.93

 

(13,735

)

 

24.35

 

(27,649

)

 

25.67

 

Outstanding, December 31

 

46,807

 

 

$24.45

 

89,709

 

 

$24.64

 

129,000

 

 

$25.50

 

 

(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.

(2)   Total weighted-average grant-date fair value of $0.4 million.

Schedule of restricted stock units

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

 

(1)

 

Shares

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

146,500

 

 

$19.80

 

70,500

 

 

$16.99

 

 

 

Granted

 

101,786

(2)

 

24.68

 

77,500

(3)

 

22.30

 

70,500(4)

 

$16.99

 

Vested

 

–  

 

 

(250

)

 

16.99

 

 

 

Forfeited

 

(1,000

)

 

22.60

 

(1,250

)

 

16.99

 

 

 

Outstanding, December 31

 

247,286

 

 

$21.80

 

146,500

 

 

$19.80

 

70,500  

 

$16.99

 

 

(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 $2.5 million.

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

(4)   Total weighted-average grant-date fair value of $1.2 million.

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

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

 

(1)

 

Shares

 

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

126,782

 

 

$20.33

 

36,198

 

 

$14.85

 

 

 

Granted

 

75,015

(2)

 

35.46

 

97,191

(3)

 

22.45

 

36,198

(4)

$14.85

 

Vested

 

 

 

 

 

 

 

 

 

Forfeited

 

(4,412

)

 

29.56

 

(6,607

)

 

21.53

 

 

 

 

 

Outstanding, December 31

 

197,385

 

 

$25.94

 

126,782

 

 

$20.33

 

36,198

 

$14.85

 

 

(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.

(4)   Total weighted-average grant-date fair value of $0.5 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

 

2009

 

Risk-free interest rate

 

1.25%

 

1.30%

 

1.30%

 

Expected life in years

 

3

 

3

 

3

 

Expected volatility

 

27.8%

 

27.9%

 

23.7%

 

Range of expected volatility for Peer Group

 

21.2% to 82.6%

 

22.3% to 52.3%

 

20.8% to 46.9%

 

Grant date fair value (per share)

 

$35.46

 

$22.45

 

$14.85

 

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

 

 

 

2011

 

2010

 

2009

 

 

 

Shares

 

 

(1)

 

Shares

 

 

(1)

 

Shares

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding, January 1

 

161,310

 

 

$18.66

 

24,131

 

 

$16.99

 

 

 

Granted

 

113,831

 

 

24.96

 

160,939

(2)

 

18.95

 

24,131

(3)

$16.99

 

Vested

 

 

 

–    

 

 

 

 

 

 

Cancelled

 

(81,908

)

 

18.38

 

 

 

 

 

 

Forfeited

 

(10,735

)

 

20.12

 

(23,760

)

 

18.90

 

 

 

Outstanding, December 31

 

182,498

 

 

$22.63

 

161,310

 

 

$18.66

 

24,131

 

$16.99

 

 

(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 $3.0 million.

(3)   Total weighted-average grant-date fair value of $0.4 million.