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L-3 Holdings' Earnings Per Common Share
 9 Months Ended
Sep. 26, 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.

 

     Third Quarter Ended     Year-to-Date Ended  
     September 26,
2014		     September 27,
2013		     September 26,
2014		     September 27,
2013		  
     (in millions, except per share data)  

Reconciliation of net income:

         

Net income

    $ 157      $ 204      $ 470      $ 572   

Net income attributable to noncontrolling interests

      (3 )      (4 )      (9 )      (6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to L-3 Holdings’ common shareholders

    $ 154      $ 200      $ 461      $ 566   
  

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share attributable to L-3 Holdings’ common shareholders:

         

Basic:

         

Weighted average common shares outstanding

      85.1        89.6        85.7        89.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share:

         

Net income

    $ 1.81      $ 2.23      $ 5.38      $ 6.30   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted:

         

Common and potential common shares:

         

Weighted average common shares outstanding

      85.1        89.6        85.7        89.9   

Assumed exercise of stock options

      2.8        4.7        3.0        3.9   

Unvested restricted stock awards

      1.5        1.8        1.6        1.8   

Employee stock purchase plan contributions

      —          0.2        0.1        0.2   

Performance unit awards

      0.1        0.1        0.1        0.1   

Assumed purchase of common shares for treasury

      (2.9 )      (5.2 )      (3.2 )      (4.7 ) 

Assumed conversion of the CODES(1)

      —          0.1        1.1        0.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Common and potential common shares

      86.6        91.3        88.4        91.3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share:

         

Net income

    $ 1.78      $ 2.19      $ 5.21      $ 6.20   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

As of June 18, 2014, the final date of conversion, the conversion price during the year-to-date period ended June 27, 2014 was $88.71. Although the CODES were retired during the year-to-date period ended June 27, 2014, they were dilutive for the year-to-date period ended September 26, 2014 as the average market price of L-3 Holdings’ common stock during the period that the CODES were outstanding was greater than the price at which the CODES would have been convertible into L-3 Holdings’ common stock. See Note 10 regarding the retirement of the CODES.

 

The computation of diluted EPS excluded shares for stock options and employee stock purchase plan contributions of 0.6 million and 0.5 million for the quarterly and year-to-date periods ended September 26, 2014, respectively, and shares for stock options of 1.2 million for the year-to-date period ended September 27, 2013, as they were anti-dilutive.