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L-3 Holdings' Earnings Per Common Share
9 Months Ended
Sep. 30, 2011
L-3 Holdings' Earnings Per Common Share [Abstract] 
L-3 Holdings' Earnings Per Common Share
 
12.  L-3 Holdings’ Earnings Per Common Share
 
A reconciliation of basic and diluted earnings per share (EPS) is presented in the table below.
 
                                 
    Third Quarter Ended     Year-to-Date Ended  
    September 30,
 		    September 24,
 		    September 30,
 		    September 24,
 		 
    2011     2010     2011     2010  
    (in millions, except per share data)  
 
Reconciliation of net income:
                               
Net income
  $ 238     $ 241     $ 691     $ 694  
Net income attributable to noncontrolling interests
    (3 )     (3 )     (9 )     (7 )
Net income allocable to participating securities
    —       (1 )     (2 )     (4 )
                                 
Net income allocable to L-3 Holdings’ common shareholders
  $ 235     $ 237     $ 680     $ 683  
                                 
Earnings per share allocable to L-3 Holdings’ common shareholders:
                               
Basic:
                               
Weighted average common shares outstanding
     103.5        114.0        106.0        115.1  
                                 
Basic earnings per share:
                               
Net income
  $ 2.27     $ 2.08     $ 6.42     $ 5.93  
                                 
Diluted:
                               
Common and potential common shares:
                               
Weighted average common shares outstanding
    103.5       114.0       106.0       115.1  
Assumed exercise of stock options
    1.5       2.1       2.3       3.0  
Unvested restricted stock awards
    2.1       1.4       1.8       1.3  
Employee stock purchase plan contributions
    0.4       0.6       0.1       0.5  
Performance unit awards
    —       —       0.1       —  
Assumed purchase of common shares for treasury
    (2.7 )     (3.4 )     (3.1 )     (3.9 )
Assumed conversion of the CODES(1)
    —       —       —       —  
                                 
Common and potential common shares
    104.8       114.7       107.2       116.0  
                                 
Diluted earnings per share:
                               
Net income
  $ 2.24     $ 2.07     $ 6.34     $ 5.89  
                                 
 
 
(1) L-3 Holdings’ CODES had no impact on diluted EPS for the quarter or year-to-date periods ended September 30, 2011 or September 24, 2010, respectively, because the average market price of L-3 Holdings common stock during these periods was less than the price at which the CODES would have been convertible into L-3 Holdings common stock. The conversion price was $97.79 during the quarter ended September 30, 2011.
 
 
Excluded from the computations of diluted EPS are certain shares related to stock options, restricted stock and restricted stock units underlying employee stock-based compensation and employee stock purchase plan contributions of 3.3 million and 3.1 million for the quarter and year-to-date periods ended September 30, 2011, respectively, and 3.3 million and 2.7 million for the quarter and year-to-date periods ended September 24, 2010, respectively, because they were anti-dilutive.