Earnings Per Share

12 Months Ended

Dec. 31, 2016

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 62.2%. 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, 2016
Income from continuing operations — basic	$	47,570
Less: Adjustment for dilutive effect of Telesat stock options		(1,096)
Income from continuing operations — diluted	$	46,474

Telesat stock options are excluded from the calculation of diluted loss per share for the years ended December 31, 2015 and 2014 as the effect would be antidilutive.

Basic earnings 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, 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 years ended December 31, 2015 and 2014, 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):


	Year Ended December 31,
	2015	2014
Unconverted restricted stock units	78	84