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
		September 30, 2014			September 30, 2013
		Income	Shares		Income	Shares
Basic:
Continuing operations:
Net income applicable to Helix	$	75,586		$	44,593
Less: Income from discontinued operations, net of tax		-			(44)
Net income from continuing operations		75,586			44,549
Less: Undistributed income allocable to participating securities – continuing operations		(392)			(337)
Net income applicable to common shareholders – continuing operations	$	75,194	104,997	$	44,212	105,029


Discontinued operations:
Income from discontinued operations, net of tax	$	-	104,997	$	44	105,029


		Three Months Ended			Three Months Ended
		September 30, 2014			September 30, 2013
		Income	Shares		Income	Shares
Diluted:
Continuing operations:
Net income applicable to common shareholders – continuing operations	$	75,194	104,997	$	44,212	105,029
Effect of dilutive securities:
Share-based awards other than participating securities		-	341		-	107
Undistributed income reallocated to participating securities		1	-		-	-
Net income applicable to common shareholders – continuing operations	$	75,195	105,338	$	44,212	105,136

Discontinued operations:
Income from discontinued operations, net of tax	$	-	105,338	$	44	105,136


		Nine Months Ended			Nine Months Ended
		September 30, 2014			September 30, 2013
		Income	Shares		Income	Shares
Basic:
Continuing operations:
Net income applicable to Helix	$	187,087		$	73,419
Less: Income from discontinued operations, net of tax		-			(1,073)
Net income from continuing operations		187,087			72,346
Less: Undistributed income allocable to participating securities – continuing operations		(980)			(525)
Net income applicable to common shareholders – continuing operations	$	186,107	105,038	$	71,821	105,036


Discontinued operations:
Income from discontinued operations, net of tax	$	-		$	1,073
Less: Undistributed income allocable to participating securities – discontinued operations		-			(8)
Net income applicable to common shareholders – discontinued operations	$	-	105,038	$	1,065	105,036


		Nine Months Ended			Nine Months Ended
		September 30, 2014			September 30, 2013
		Income	Shares		Income	Shares
Diluted:
Continuing operations:
Net income applicable to common shareholders – continuing operations	$	186,107	105,038	$	71,821	105,036
Effect of dilutive securities:
Share-based awards other than participating securities		-	336		-	116
Undistributed income reallocated to participating securities		3	-		-	-
Net income applicable to common shareholders – continuing operations	$	186,110	105,374	$	71,821	105,152

Discontinued operations:
Income from discontinued operations, net of tax	$	-	105,374	$	1,073	105,152

No diluted shares were included for the 2032 Notes for the three- and nine-month periods ended September 30, 2014 and 2013 as 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).