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.