Earnings Per Share

9 Months Ended

Sep. 30, 2015

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 62.0%. 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):


	Nine Months Ended September 30, 2014
Income from continuing operations — basic	$	12,304
Less: Adjustment for dilutive effect of Telesat stock options		(615)
Income from continuing operations — diluted	$	11,689

Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended September 30, 2015 and 2014, and nine months ended September 30, 2015 as the effect would be antidilutive.

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):


	Nine Months Ended September 30,
	2014
Weighted average common shares outstanding	30,920
Unconverted restricted stock units	84
Common shares outstanding for diluted earnings per share	31,004

For the three months ended September 30, 2015 and 2014, and nine months ended September 30, 2015, the following unconverted 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 September 30,		Nine Months Ended September 30,
	2015	2014	2015
Unconverted restricted stock units	75	84	78