L3's Earnings Per Common Share

6 Months Ended

Jun. 30, 2017

L3's Earnings Per Common Share [Abstract]

L3's Earnings Per Common Share

14.  L3’s Earnings Per Common Share

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

	Second Quarter Ended						First Half Ended
	June 30, 2017			June 24, 2016			June 30, 2017			June 24, 2016
	(in millions, except per share data)
Reconciliation of net income:
Net income	$	207		$	151		$	375		$	381
Net income from continuing operations attributable to noncontrolling interests		(5	)		(4	)		(9	)		(7	)
Net income attributable to L3’s common shareholders	$	202		$	147		$	366		$	374
Earnings attributable to L3’s common shareholders:
Continuing operations	$	202		$	147		$	366		$	311
Discontinued operations, net of income tax		―			—			—			63
Net income attributable to L3’s common shareholders	$	202		$	147		$	366		$	374
Earnings per share attributable to L3’s common shareholders:
Basic:
Weighted average common shares outstanding		78.0			77.2			77.8			77.5
Basic earnings per share:
Continuing operations	$	2.59		$	1.90		$	4.70		$	4.02
Discontinued operations, net of income tax		―			—			—			0.81
Net income	$	2.59		$	1.90		$	4.70		$	4.83
Diluted:
Common and potential common shares:
Weighted average common shares outstanding		78.0			77.2			77.8			77.5
Assumed exercise of stock options		2.6			2.7			2.7			2.3
Unvested restricted stock awards		0.9			1.0			0.9			1.1
Employee stock purchase plan contributions		0.1			—			0.1			0.1
Performance unit awards		0.1			0.1			0.1			0.1
Assumed purchase of common shares for treasury		(2.2	)		(2.6	)		(2.2	)		(2.4	)
Common and potential common shares		79.5			78.4			79.4			78.7
Diluted earnings per share:
Continuing operations	$	2.54		$	1.88		$	4.61		$	3.95
Discontinued operations, net of income tax		―			—			—			0.80
Net income	$	2.54		$	1.88		$	4.61		$	4.75

The computation of diluted EPS excludes shares for stock options, restricted stock awards and performance unit awards contributions of 0.4 million and 0.3 million for the quarterly and first half periods ended June 30, 2017, respectively, and shares for stock options and employee stock purchase plan contributions of 0.6 million and 0.9 million for the quarterly and first half periods ended June 24, 2016, respectively, as they were anti-dilutive.