Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

16. Earnings Per Share

Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s ownership interest in Telesat. The following table presents the dilutive impact of Telesat stock options on Loral’s reported net income for the purpose of computing diluted earnings per share.

	Three Months			Six Months
	Ended June 30,			Ended June 30,
	2011			2011
	(In thousands)
Net income (loss) attributable to Loral common shareholders — basic	$	29,333		$	97,152
Less: Adjustment for dilutive effect of Telesat stock options		(998	)		(2,967	)
Net income (loss) attributable to Loral common shareholders — diluted		28,335			94,185

Telesat stock options were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2010 because they did not have a significant dilutive effect.

Basic earnings per share is computed based upon the weighted average number of shares of voting and non-voting common stock outstanding. The following is the computation of weighted average common shares outstanding for diluted earnings per share:

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
	(In thousands)				(In thousands)
Common and potential common shares:
Weighted average common shares outstanding		30,698		29,984		30,668		29,923
Stock options		217		—		346		342
Unvested restricted stock units		226		—		224		196
Unvested restricted stock		2		—		3		11
Unvested SS/L Phantom SARS		—		—		—		92
Common and potential common shares		31,143		29,984		31,241		30,564

For the three and six months ended June 30, 2010, the effect of certain stock options outstanding, which would be calculated using the treasury stock method and certain unvested restricted stock, restricted stock units and SS/L Phantom SARs were excluded from the calculation of diluted income (loss) per share, as the effect would have been antidilutive. The following summarizes stock options outstanding and unvested restricted stock units excluded from the calculation of diluted income (loss) per share:

	Three Months		Six Months
	Ended June 30,		Ended June 30,
	2010		2010
	(In thousands)
Stock options outstanding		1,435		125
Shares of unvested restricted stock		16		—
Unvested restricted stock units		238		8
Unvested SS/L Phantom SARs		106		—