L3 Technologies, Inc. (NYSE: LLL) has reported diluted EPS from continuing operations of USD 0.29 and adjusted diluted EPS from continuing operations of USD 1.96 for the quarter ended September 29, 2017 (2017 third quarter), the company said.
Adjusted diluted EPS excludes a previously disclosed goodwill impairment charge of USD 1.67 per diluted share for Vertex Aerospace. Diluted EPS from continuing operations for the quarter ended September 23, 2016 (2016 third quarter) was USD 1.88. Net sales of USD 2,646 million for the 2017 third quarter increased by 6% compared to the 2016 third quarter.
During the 2017 third quarter the company recorded a goodwill impairment charge of USD 187 million (USD 133 million after income taxes), or USD 1.67 per diluted share related to the decline in the estimated fair value of the Vertex Aerospace reporting unit due to the Fort Rucker Aviation Maintenance and Support contract recompetition loss.
The goodwill impairment charge is included in consolidated operating income. Segment operating income represents earnings from the company´s business segments before the goodwill impairment charge. Segment operating income is used by management for purposes of evaluating the operating performance of the company´s business segments.