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 net income for the purpose of computing diluted earnings per share (in thousands):


		Three Months Ended
		March 31, 2019
Net income — basic	$	38,516
Less: Adjustment for dilutive effect of Telesat stock options		(254)
Net income — diluted	$	38,262

Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended March 31, 2020 as the effect would be 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
	March 31, 2019
Weighted average common shares outstanding	30,933
Unconverted restricted stock units	75
Common shares outstanding for diluted earnings per share	31,008

For the three months ended March 31, 2020, 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
	March 31, 2020
Unconverted restricted stock units	75