Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

14. Earnings Per Share

Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s ownership interest in Telesat to approximately 62.3%. The following table presents the dilutive impact of Telesat stock options on Loral’s reported income from continuing operations for the purpose of computing diluted earnings per share (in thousands):

	Year Ended December 31,
	2012		2011		2010
Income from continuing operations — basic	$	100,442	$	52,608	$	387,589
Less: Adjustment for dilutive effect of Telesat stock options		(683)		(4,352)		(4,177)
Income from continuing operations — diluted	$	99,759	$	48,256	$	383,412

Basic 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 common shares outstanding for diluted earnings per share (in thousands):

	Year Ended December 31,
	2012		2011		2010
Common and potential common shares outstanding for diluted earnings per share:
Weighted average common shares outstanding		30,703		30,680		30,085
Stock options		61		257		495
Unvested restricted stock units		226		226		206
Unvested restricted stock		1		3		8
Unvested SS/L Phantom SARs		—		—		93
Common shares outstanding for diluted earnings per share		30,991		31,166		30,887