A reconciliation of basic and diluted earnings per share (EPS) is presented in the table below.


	Third Quarter Ended						Year-to-Date Ended
	September 25, 2015			September 26, 2014			September 25, 2015			September 26, 2014
	(in millions, except per share data)
Reconciliation of net (loss) income:
Net (loss) income	$	(296	)	$	157		$	(63	)	$	470
Net income attributable to noncontrolling interests		(3	)		(3	)		(11	)		(9	)

Net (loss) income attributable to L-3 Holdings’ common shareholders	$	(299	)	$	154		$	(74	)	$	461

Earnings (loss) per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		80.0			85.1			81.5			85.7

Basic (loss) earnings per share:
Net (loss) income	$	(3.74	)	$	1.81		$	(0.91	)	$	5.38

Diluted:
Common and potential common shares⁽¹⁾:
Weighted average common shares outstanding		80.0			85.1			81.5			85.7
Assumed exercise of stock options		—			2.8			—			3.0
Unvested restricted stock awards		—			1.5			—			1.6
Employee stock purchase plan contributions		—			—			—			0.1
Performance unit awards		—			0.1			—			0.1
Assumed purchase of common shares for treasury		—			(2.9	)		—			(3.2	)
Assumed conversion of the CODES⁽²⁾		—			—			—			1.1

Common and potential common shares		80.0			86.6			81.5			88.4

Diluted (loss) earnings per share:
Net (loss) income	$	(3.74	)	$	1.78		$	(0.91	)	$	5.21

⁽¹⁾	Due to a loss for the quarterly and year-to-date periods ended September 25, 2015, zero incremental weighted average potential common shares are included because the effect would be antidilutive.

⁽²⁾

L-3 Holdings’ 3% Convertible Contingent Debt Securities (CODES) due 2035 were retired on June 20, 2014, and 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. As of June 18, 2014, the final date of conversion, the conversion price was $88.71.