14. L-3 Holdings’ Earnings Per Common
Share
A reconciliation of basic and diluted earnings per
share (EPS) is presented in the table below.
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Third Quarter Ended |
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Year-to-Date Ended |
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September 26,
2014 |
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September 27,
2013 |
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September 26,
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September 27,
2013 |
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(in millions,
except per share data) |
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Reconciliation of net income:
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Net income
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$ |
157 |
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$ |
204 |
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$ |
470 |
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$ |
572 |
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Net income attributable to noncontrolling interests
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(3 |
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(4 |
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(9 |
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(6 |
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Net income attributable to L-3 Holdings’ common
shareholders
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$ |
154 |
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$ |
200 |
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$ |
461 |
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$ |
566 |
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Earnings per share attributable to L-3 Holdings’ common
shareholders:
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Basic:
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Weighted average common shares outstanding
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85.1 |
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89.6 |
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85.7 |
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89.9 |
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Basic earnings per share:
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Net income
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$ |
1.81 |
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$ |
2.23 |
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$ |
5.38 |
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$ |
6.30 |
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Diluted:
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Common and potential common shares:
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Weighted average common shares outstanding
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85.1 |
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89.6 |
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85.7 |
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89.9 |
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Assumed exercise of stock options
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2.8 |
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4.7 |
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3.0 |
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3.9 |
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Unvested restricted stock awards
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1.5 |
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1.8 |
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1.6 |
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1.8 |
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Employee stock purchase plan contributions
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— |
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0.2 |
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0.1 |
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0.2 |
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Performance unit awards
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0.1 |
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0.1 |
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0.1 |
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0.1 |
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Assumed purchase of common shares for treasury
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(2.9 |
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(5.2 |
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(3.2 |
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(4.7 |
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Assumed conversion of the CODES(1)
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— |
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0.1 |
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1.1 |
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0.1 |
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Common and potential common shares
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86.6 |
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91.3 |
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88.4 |
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91.3 |
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Diluted earnings per share:
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Net income
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$ |
1.78 |
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$ |
2.19 |
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$ |
5.21 |
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$ |
6.20 |
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| (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.
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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.
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