L-3 Holdings' Earnings Per Common Share (Tables)

3 Months Ended

Mar. 28, 2014

Reconciliation of Basic and Diluted Earnings Per 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.