. L3’s Earnings Per Share

A reconciliation of basic and diluted Earnings Per Share (EPS) is presented in the table below.



	Second Quarter Ended						First Half Ended
	June 29, 2018			June 30, 2017			June 29, 2018			June 30, 2017
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	379		$	207		$	587		$	375
Net income from continuing operations attributable to noncontrolling interests	(4		)	(5		)	(9		)	(9		)
Net income attributable to L3’s common shareholders	$	375		$	202		$	578		$	366
Earnings attributable to L3’s common shareholders:
Continuing operations	$	185		$	190		$	372		$	343
Discontinued operations, net of income tax	190			12			206			23
Net income attributable to L3’s common shareholders	$	375		$	202		$	578		$	366
Earnings per share attributable to L3’s common shareholders:
Basic:
Weighted average common shares outstanding	78.4			78.0			78.3			77.8
Basic earnings per share:
Continuing operations	$	2.36		$	2.44		$	4.75		$	4.40
Discontinued operations, net of income tax	2.42			0.15			2.63			0.30
Net income	$	4.78		$	2.59		$	7.38		$	4.70
Diluted:
Common and potential common shares:
Weighted average common shares outstanding	78.4			78.0			78.3			77.8
Effect of dilutive securities	1.0			1.5			1.3			1.6
Common and potential common shares	79.4			79.5			79.6			79.4
Diluted earnings per share:
Continuing operations	$	2.33		$	2.39		$	4.67		$	4.32
Discontinued operations, net of income tax	2.39			0.15			2.59			0.29
Net income	$	4.72		$	2.54		$	7.26		$	4.61

The computation of diluted EPS excludes 0.3 million shares for each of the quarterly and first half periods ended June 29, 2018 and 0.4 million shares and 0.3 million shares for the quarterly and first half periods ended June 30, 2017, respectively, for share-based payment awards as they were anti-dilutive.