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 62.3%.

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 June 30,		Six Months Ended June 30,
	2016		2017		2016
Income from continuing operations — basic	$	32,654	$	69,187	$	63,473
Less: Adjustment for dilutive effect of Telesat stock options		(764)		(633)		(2,199)
Income from continuing operations — diluted	$	31,890	$	68,554	$	61,274

Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended June 30, 2017 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 June 30,		Six Months Ended June 30,
		2016	2017		2016
Weighted average common shares outstanding		30,933		30,933		30,933
Unconverted restricted stock units		75		75		75
Common shares outstanding for diluted earnings per share		31,008		31,008		31,008

For the three months ended June 30, 2017, 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 June 30, 2017
Unconverted restricted stock units	75