Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

18. 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 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,
	2012			2011			2012			2011
(Loss) income from continuing operations — basic	$	(9,718	)	$	14,841		$	(10,608	)	$	58,031
Less: Adjustment for dilutive effect of Telesat stock options		—			(998	)		—			(2,967	)
(Loss) income from continuing operations— diluted	$	(9,718	)	$	13,843		$	(10,608	)	$	55,064

Telesat stock options are excluded from the calculation of diluted loss per share for the three and six months ended June 30, 2012, as the effect would be antidilutive.

Basic income 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):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Common and potential common shares outstanding for diluted earnings per share:
Weighted average common shares outstanding		30,704		30,698		30,653		30,668
Stock options		—		217		—		346
Unvested restricted stock		—		2		—		3
Unvested restricted stock units		—		226		—		224
Common shares outstanding for diluted earnings per share		30,704		31,143		30,653		31,241

For the three and six months ended June 30, 2012, all stock options outstanding, unvested restricted stock and unvested restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive. The following summarizes stock options outstanding, unvested restricted stock and unvested restricted stock units excluded from the calculation of diluted loss per share:

	Three Months Ended June  30,		Six Months Ended June  30,
	2012		2012
Stock options outstanding		57		97
Unvested restricted stock		2		2
Unvested restricted stock units		232		223