L3’s Earnings Per Share

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



	Year Ended December 31,
	2018			2017			2016
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	1,026		$	693		$	724
Net income from continuing operations attributable to noncontrolling interests	(21		)	(16		)	(14		)
Net income attributable to L3’s common shareholders	$	1,005		$	677		$	710
Earnings (loss) attributable to L3’s common shareholders:
Continuing operations	$	800		$	753		$	619
Discontinued operations, net of income tax	205			(76		)	91
Net income attributable to L3’s common shareholders	$	1,005		$	677		$	710
Earnings per share attributable to L3’s common shareholders:
Basic:
Weighted average common shares outstanding	78.5			78.0			77.4
Basic earnings (loss) per share:
Continuing operations	$	10.19		$	9.65		$	7.99
Discontinued operations, net of income tax	2.61			(0.97		)	1.18
Net income	$	12.80		$	8.68		$	9.17
Diluted:
Common and potential common shares:
Weighted average common shares outstanding	78.5			78.0			77.4
Effect of dilutive securities	1.1			1.6			1.4
Common and potential common shares	79.6			79.6			78.8
Diluted earnings (loss) per share:
Continuing operations	$	10.05		$	9.46		$	7.86
Discontinued operations, net of income tax	2.58			(0.95		)	1.15
Net income	$	12.63		$	8.51		$	9.01

The computation of diluted EPS excludes 0.3 million, 0.3 million and 0.4 million shares for the years ended December 31, 2018, 2017 and 2016, respectively, for share-based payment awards as they were anti-dilutive.