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		Six Months Ended
	June 30,		June 30,
	2019		2019		2018
Income from continuing operations — basic	$	38,227	$	76,743	$	4,778
Less: Adjustment for dilutive effect of Telesat stock options		(230)		(484)		(10)
Income from continuing operations — diluted	$	37,997	$	76,259	$	4,768

Telesat stock options are excluded from the calculation of diluted income per share for the three months ended June 30, 2018 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				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Weighted average common shares outstanding		30,933		30,933		30,933	30,933
Unconverted restricted stock units		75		75		75	75
Common shares outstanding for diluted earnings per share		31,008		31,008		31,008	31,008