L-3 Holdings' Earnings Per Common Share

3 Months Ended

Mar. 25, 2016

14. 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 25, 2016			March 27, 2015
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	230		$	109
Net income from continuing operations attributable to noncontrolling interests		(3	)		(4	)

Net income attributable to L-3 Holdings’ common shareholders	$	227		$	105

Earnings attributable to L-3 Holdings’ common shareholders:
Continuing operations	$	164		$	101
Discontinued operations, net of income tax		63			4

Net income attributable to L-3 Holdings’ common shareholders	$	227		$	105

Earnings per share attributable to L-3 Holdings’ common shareholders:
Basic:
Weighted average common shares outstanding		77.8			82.3

Basic earnings per share:
Continuing operations	$	2.11		$	1.23
Discontinued operations, net of income tax		0.81			0.05

Net income	$	2.92		$	1.28

Diluted:
Common and potential common shares:
Weighted average common shares outstanding		77.8			82.3
Assumed exercise of stock options		2.0			2.9
Unvested restricted stock awards		1.1			1.4
Employee stock purchase plan contributions		0.1			0.1
Performance unit awards		0.1			0.2
Assumed purchase of common shares for treasury		(2.1	)		(3.1	)

Common and potential common shares		79.0			83.8

Diluted earnings per share:
Continuing operations	$	2.08		$	1.20
Discontinued operations, net of income tax		0.79			0.05

Net income	$	2.87		$	1.25

The computation of diluted EPS excludes shares for stock options, restricted stock awards and performance unit awards of 1.2 million for the quarterly period ended March 25, 2016 and shares for stock options of 0.2 million for the quarterly period ended March 27, 2015, as they were anti-dilutive.