L-3 Holdings' Earnings Per Common Share

3 Months Ended

Mar. 30, 2012

L-3 Holdings' Earnings Per Common Share [Abstract]

L-3 Holdings' Earnings Per Common Share

11.  L-3 Holdings’ Earnings Per Common Share

A reconciliation of basic and diluted earnings per share (EPS) is presented in the table below.

	First Quarter Ended
	March 30, 2012			April 1, 2011
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	203		$	207
Net income attributable to noncontrolling interests		(2	)		(3	)
Net income allocable to participating securities		—			(1	)
Net income allocable to L-3 Holdings’ common shareholders	$	201		$	203
Earnings per share allocable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		99.0			108.5
Basic earnings per share:
Net income	$	2.03		$	1.87
Diluted:
Common and potential common shares:
Weighted average common shares outstanding		99.0			108.5
Assumed exercise of stock options		1.2			2.8
Unvested restricted stock awards		2.0			1.3
Employee stock purchase plan contributions		0.3			0.3
Performance unit awards		0.1			0.1
Assumed purchase of common shares for treasury		(2.4	)		(3.5	)
Assumed conversion of the CODES (1)		—			—
Common and potential common shares		100.2			109.5
Diluted earnings per share:
Net income	$	2.01		$	1.85

⁽¹⁾  L-3 Holdings’ CODES had no impact on diluted EPS for the quarters ended March 30, 2012 or April 1, 2011, 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. As of March 30, 2012, the conversion price was $96.48.

The computation of diluted EPS excluded 3.7 million of stock options for the quarter ended March 30, 2012 and 2.9 million of stock options and restricted stock units for the quarter ended April 1, 2011 as they were anti-dilutive.