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


	Third Quarter Ended						Year-to-Date Ended
	September 27, 2013			September 28, 2012			September 27, 2013			September 28, 2012
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	208		$	194		$	588		$	605
Net income from continuing operations attributable to noncontrolling interests		(4	)		(2	)		(6	)		(3	)
Net income from discontinued operations attributable to noncontrolling interests		—			—			—			(4	)

Net income attributable to L-3 Holdings’ common shareholders	$	204		$	192		$	582		$	598

Earnings (loss) attributable to L-3 Holdings’ common shareholders:
Continuing operations	$	204		$	193		$	582		$	570
Discontinued operations, net of income tax		—			(1	)		—			28

Net income attributable to L-3 Holdings’ common shareholders	$	204		$	192		$	582		$	598

Earnings (loss) per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		89.6			96.1			89.9			97.4

Basic earnings (loss) per share:
Continuing operations	$	2.28		$	2.01		$	6.47		$	5.85
Discontinued operations, net of income tax		—			(0.01	)		—			0.29

Basic earnings per share	$	2.28		$	2.00		$	6.47		$	6.14

Diluted:
Common and potential common shares:
Weighted average common shares outstanding		89.6			96.1			89.9			97.4
Assumed exercise of stock options		4.7			2.1			3.9			1.7
Unvested restricted stock awards		1.8			2.0			1.8			2.1
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		(5.2	)		(3.1	)		(4.7	)		(2.8	)
Assumed conversion of the CODES⁽¹⁾		0.1			—			0.1			—

Common and potential common shares		91.3			97.4			91.3			98.7

Diluted earnings (loss) per share:
Continuing operations	$	2.23		$	1.98		$	6.37		$	5.78
Discontinued operations, net of income tax		—			(0.01	)		—			0.28

Diluted earnings per share	$	2.23		$	1.97		$	6.37		$	6.06

⁽¹⁾

L-3 Holdings’ CODES had no impact on diluted EPS for the quarterly or year-to-date periods ended September 28, 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 September 27, 2013, the conversion price was $90.24.