L-3 Holdings' Earnings Per Common Share

3 Months Ended

Mar. 27, 2015

Earnings Per Share [Abstract]

L-3 Holdings' Earnings Per Common Share

13.  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 27, 2015			March 28, 2014
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	109		$	172
Net income attributable to noncontrolling interests		(4	)		(2	)
Net income attributable to L-3 Holdings’ common shareholders	$	105		$	170
Earnings per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		82.3			86.1
Basic earnings per share:
Net income	$	1.28		$	1.97
Diluted:
Common and potential common shares:
Weighted average common shares outstanding		82.3			86.1
Assumed exercise of stock options		2.9			3.4
Unvested restricted stock awards		1.4			1.7
Employee stock purchase plan contributions		0.1			—
Performance unit awards		0.2			0.2
Assumed purchase of common shares for treasury		(3.1	)		(3.5	)
Assumed conversion of the CODES(1)		—			1.5
Common and potential common shares		83.8			89.4
Diluted earnings per share:
Net income	$	1.25		$	1.90

⁽¹⁾  L-3 Holdings’ 3% Convertible Contingent Debt Securities (CODES) due 2035 were retired on June 20, 2014 and were dilutive for the quarterly period ended March 28, 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. As of March 28, 2014, the conversion price was $89.08.

The computation of diluted EPS excludes shares for stock options of 0.2 million for the quarterly period ended March 27, 2015 and shares for stock options and employee stock purchase plan contributions of 0.4 million for the quarterly period ended March 28, 2014, as they were anti-dilutive.