Earnings Per Share

9 Months Ended

Sep. 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						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011		2010
	(In thousands)						(In thousands)
Net (loss) income attributable to Loral common shareholders — basic	$	(77,368	)	$	72,392		$	19,784	$	82,100
Less: Adjustment for dilutive effect of Telesat stock options		—			(1,003	)		—		(1,116	)
Net (loss) income attributable to Loral common shareholders — diluted	$	(77,368	)	$	71,389		$	19,784	$	80,984

For the three and nine months ended September 30, 2011, Telesat stock options were excluded from the calculation of diluted (loss) income per share because they were antidilutive.

Basic (loss) income 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				Nine Months
	Ended September 30,				Ended September 30,
	2011		2010		2011		2010
	(In thousands)				(In thousands)
Common and potential common shares:
Weighted average common shares outstanding		30,706		30,206		30,680		30,017
Stock options		—		591		287		425
Unvested restricted stock		—		7		3		10
Unvested restricted stock units		—		213		225		201
Unvested SS/L Phantom SARS		—		187		—		124
Common and potential common shares		30,706		31,204		31,195		30,777

For the three months ended September 30, 2011, the effect of stock options outstanding, which would be calculated using the treasury stock method and 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, restricted stock units and SS/L Phantom SARs excluded from the calculation of diluted income (loss) per share:

	Three Months
	Ended September 30,
	2011
	(In thousands)
Stock options		169
Unvested restricted stock units		227
Unvested restricted stock		2
Unvested SS/L Phantom SARs		—