Earnings Per Share

3 Months Ended

Mar. 31, 2016

11. Earnings Per Share

Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s economic ownership interest in Telesat from 62.7% to approximately 61.8%.

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 March 31, 2016
Income from continuing operations — basic	$	23,907
Less: Adjustment for dilutive effect of Telesat stock options		(1,535)
Income from continuing operations — diluted	$	22,372

Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended March 31, 2015 as the effect would have been antidilutive.

Basic income per share is computed based upon the weighted average number of share 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 March 31, 2016
Weighted average common shares outstanding	30,933
Unconverted restricted stock units	75
Common shares outstanding for diluted earnings per share	31,008

For the three months ended March 31, 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 March 31, 2015
Unconverted restricted stock units	84