Earnings per share

6 Months Ended

Jun. 30, 2012

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 June 30					Six months ended June 30
	2012		2011			2012		2011
	Basic and diluted		Basic and diluted			Basic and diluted		Basic and diluted
Distributed earnings	$	0.31	$	0.31		$	0.62	$	0.62
Undistributed earnings (loss)	0.09		(0.03		)	0.18		(0.04		)
	$	0.40	$	0.28		$	0.80	$	0.58

As of June 30, 2011, the antidilutive effects of SARs of 410,000 shares of HEI common stock, 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.