L3's Earnings Per Share

3 Months Ended

Mar. 31, 2017

L3's Earnings Per Share [Abstract]

L3's Earnings Per Share

14. L3’s Earnings Per Share

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

	First Quarter Ended
	March 31, 2017			March 25, 2016
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	168		$	230
Net income from continuing operations attributable to noncontrolling interests		(4	)		(3	)
Net income attributable to L3’s common shareholders	$	164		$	227
Earnings attributable to L3’s common shareholders:
Continuing operations	$	164		$	164
Discontinued operations, net of income tax		—			63
Net income attributable to L3’s common shareholders	$	164		$	227
Earnings per share attributable to L3’s common shareholders:
Basic:
Weighted average common shares outstanding		77.7			77.8
Basic earnings per share:
Continuing operations	$	2.11		$	2.11
Discontinued operations, net of income tax		—			0.81
Net income	$	2.11		$	2.92
Diluted:
Common and potential common shares:
Weighted average common shares outstanding		77.7			77.8
Assumed exercise of stock options		2.8			2.0
Unvested restricted stock awards		0.8			1.1
Employee stock purchase plan contributions		0.1			0.1
Performance unit awards		0.1			0.1
Assumed purchase of common shares for treasury		(2.2	)		(2.1	)
Common and potential common shares		79.3			79.0
Diluted earnings per share:
Continuing operations	$	2.07		$	2.08
Discontinued operations, net of income tax		—			0.79
Net income	$	2.07		$	2.87

The computation of diluted EPS excludes shares for stock options, restricted stock awards and performance unit awards contributions of 0.3 million and 1.2 million for the quarterly periods ended March 31, 2017 and March 25, 2016, respectively, as they were anti-dilutive.