Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation

15. Stock-Based Compensation

As of September 30, 2012, there were 1,308,232 shares of Loral common stock available for future grant under the Company’s Amended and Restated 2005 Stock Incentive Plan. This number of common shares available would be reduced if Loral restricted stock units or SS/L phantom stock appreciation rights are settled in Loral common stock.

The fair value of the SS/L phantom stock appreciation rights (“SS/L Phantom SARs”) is included as a liability in our consolidated balance sheets. The payout liability is adjusted each reporting period to reflect the fair value of the underlying SS/L equity based on the actual performance of SS/L. As of September 30, 2012 and December 31, 2011, the amount of the liability in our consolidated balance sheet related to the SS/L Phantom SARs was $1.3 million and $4.6 million, respectively. As of September 30, 2012, $0.5 million of the liability was included in liabilities held for sale. During the nine months ended September 30, 2012 and 2011, cash payments of $3.9 million and $4.3 million, respectively, were made related to SS/L Phantom SARs.

Stock-based compensation consists of (in thousands):

	Three Months Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
Total stock-based compensation	$	393		$	1,039		$	1,536		$	3,175
Stock-based compensation included in income from discontinued operations		(41	)		(368	)		(194	)		(1,213	)
Stock-based compensation included in income from continuing operations	$	352		$	671		$	1,342		$	1,962

Stock-based compensation included in income from continuing operations relates to Loral directors and Corporate employees. There were 11,057 units of stock-based awards granted during the nine months ended September 30, 2012.