Earnings Per Share

3 Months Ended

Mar. 31, 2017

10. 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 62.4%.

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,
	2017		2016
Income from continuing operations — basic	$	71,364	$	30,819
Less: Adjustment for dilutive effect of Telesat stock options		(185)		(1,535)
Income from continuing operations — diluted	$	71,179	$	29,284

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,
	2017	2016
Weighted average common shares outstanding	30,933	30,933
Unconverted restricted stock units	75	75
Common shares outstanding for diluted earnings per share	31,008	31,008