Earnings Per Share

6 Months Ended

Jun. 30, 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				Six Months
	Ended June 30,				Ended June 30,
	2016		2015		2016		2015
Income from continuing operations — basic	$	32,654	$	18,027	$	63,473	$	(64,476)
Less: Adjustment for dilutive effect of Telesat stock options		(764)		(761)		(2,199)		—
Income from continuing operations — diluted	$	31,890	$	17,266	$	61,274	$	(64,476)

Telesat stock options are excluded from the calculation of diluted loss per share for the six months ended June 30, 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				Six Months
	Ended June 30,				Ended June 30,
	2016		2015		2016	2015
Weighted average common shares outstanding		30,933		30,927	30,933	30,923
Unconverted restricted stock units		75		79	75	—
Common shares outstanding for diluted earnings per share		31,008		31,006	31,008	30,923

For the six months ended June 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):


	Six Months Ended
	June 30, 2015
Unconverted restricted stock units	80