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


	Second Quarter Ended						First Half Ended
	June 28, 2013			June 29, 2012			June 28, 2013			June 29, 2012
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	186		$	208		$	380		$	411
Net income from continuing operations attributable to noncontrolling interests		(1	)		—			(2	)		(1	)
Net income from discontinued operations attributable to noncontrolling interests		—			(3	)		—			(4	)

Net income attributable to L-3 Holdings’ common shareholders	$	185		$	205		$	378		$	406

Earnings attributable to L-3 Holdings’ common shareholders:
Continuing operations	$	185		$	191		$	378		$	377
Discontinued operations, net of income taxes		—			14			—			29

Net income attributable to L-3 Holdings’ common shares	$	185		$	205		$	378		$	406

Earnings per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		89.9			97.2			90.1			98.1

Basic earnings per share:
Continuing operations	$	2.06		$	1.97		$	4.20		$	3.84
Discontinued operations, net of income taxes		—			0.14			—			0.30

Basic earnings per share	$	2.06		$	2.11		$	4.20		$	4.14

Diluted:
Common and potential common shares:
Weighted average common shares outstanding		89.9			97.2			90.1			98.1
Assumed exercise of stock options		3.6			1.6			3.5			1.4
Unvested restricted stock awards		1.8			2.4			1.8			2.2
Employee stock purchase plan contributions		0.2			0.3			0.2			0.3
Performance unit awards		0.1			—			0.1			—
Assumed purchase of common shares for treasury		(4.5	)		(3.0	)		(4.4	)		(2.6	)
Assumed conversion of the CODES⁽¹⁾		—			—			—			—

Common and potential common shares		91.1			98.5			91.3			99.4

Diluted earnings per share:
Continuing operations	$	2.03		$	1.94		$	4.14		$	3.79
Discontinued operations, net of income taxes		—			0.14			—			0.29

Diluted earnings per share	$	2.03		$	2.08		$	4.14		$	4.08

⁽¹⁾

L-3 Holdings’ CODES had no impact on diluted EPS for the quarterly and first half periods ended June 28, 2013 and June 29, 2012 as 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 June 28, 2013, the conversion price was $90.24.