L-3 Holdings' Earnings Per Common Share

3 Months Ended

Mar. 28, 2014

Earnings Per Share [Abstract]

L-3 Holdings' Earnings Per Common Share

14.  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 28, 2014			March 29, 2013
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	172		$	192
Net income attributable to noncontrolling interests		(2	)		(1	)
Net income attributable to L-3 Holdings’ common shareholders	$	170		$	191
Earnings per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		86.1			90.3
Basic earnings per share:
Net income	$	1.97		$	2.12
Diluted:
Common and potential common shares:
Weighted average common shares outstanding		86.1			90.3
Assumed exercise of stock options		3.4			3.4
Unvested restricted stock awards		1.7			1.7
Employee stock purchase plan contributions		—			0.2
Performance unit awards		0.2			0.1
Assumed purchase of common shares for treasury		(3.5	)		(4.2	)
Assumed conversion of the CODES(1)		1.5			—
Common and potential common shares		89.4			91.5
Diluted earnings per share:
Net income	$	1.90		$	2.09

⁽¹⁾  L-3 Holdings’ CODES had no impact on diluted EPS for the quarterly period ended March 29, 2013 as the average market price of L-3 Holdings’ common stock during this period was less than the price at which the CODES would have been convertible into L-3 Holdings common stock. As of March 28, 2014, the conversion price was $89.08.

The computation of diluted EPS excluded shares for stock options and employee stock purchase plan contributions of 0.4 million and shares for stock options of 1.8 million for the quarterly periods ended March 28, 2014 and March 29, 2013, respectively, as they were anti-dilutive.