Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

12. Earnings Per Share

Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral's ownership interest in Telesat. The following table presents the dilutive impact of Telesat stock options on Loral's reported net income for the purpose of computing diluted earnings per share (in thousands):

		September 30,			September 30,
	Year Ended December 31,			Year Ended December 31,
	2011			2010
Net income attributable to Loral common shareholders — basic	$	126,677		$	486,846
Less: Adjustment for dilutive effect of Telesat stock options		(4,352	)		(4,177	)
Net income attributable to Loral common shareholders — diluted	$	122,325		$	482,669

Telesat stock options were excluded from the calculations of 2009 diluted earnings per share because they did not have a significant dilutive effect in 2009.

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:

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(In thousands)
Common shares outstanding for diluted earnings per share:
Weighted average common shares outstanding		30,680		30,085		29,761
Stock options		257		495		48
Unvested restricted stock units		226		206		115
Unvested restricted stock		3		8		4
Unvested SS/L Phantom SARS		—		93		53
Common shares outstanding for diluted earnings per share		31,166		30,887		29,981

For the year ended December 31, 2009, the effect of certain stock options outstanding, which would be calculated using the treasury stock method and certain non-vested restricted stock and non-vested RSUs were excluded from the calculation of diluted earnings per share, as the effect would have been antidilutive. The following summarizes stock options outstanding, non-vested restricted stock and non-vested restricted stock units excluded from the calculation of diluted earnings per share:

		September 30,
	Year Ended December 31,
	2009
	(In thousands)
Stock options outstanding		125
Unvested restricted stock units		8
Unvested restricted stock		30