Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

11. 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 61.9%. 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):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Income from continuing operations — basic	$	53,002	$	(5,402)	$	38,184	$	(18,988)
Less: Adjustment for dilutive effect of Telesat stock options		(1,299)		—		(1,291)		—
Income from continuing operations — diluted	$	51,703	$	(5,402)	$	36,893	$	(18,988)

Telesat stock options are excluded from the calculation of diluted loss per share for the three and six months ended June 30, 2013, as the effect would be antidulitive.

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):

	Three Months Ended June 30,			Six Months Ended June 30,
		2014	2013		2014	2013
Common and potential common shares outstanding for diluted earnings per share:
Weighted average common shares outstanding		30,920	30,793		30,920	30,781
Unconverted restricted stock units		84	—		84	—
Common shares outstanding for diluted earnings per share		31,004	30,793		31,004	30,781

For the three and six months ended June 30, 2013, the following unvested restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands):

	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013
Unconverted restricted stock units		84		172