Earnings Per Share

6 Months Ended

Jun. 30, 2021

Net income per share:

Earnings Per Share

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 62.6% to approximately 60.8%.

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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021
Net income — basic	$	21,491	$	73,566	$	52,207
Less: Adjustment for dilutive effect of Telesat stock options		(1,642)		(398)		(1,797)
Net income — diluted	$	19,849	$	73,168	$	50,410

Telesat stock options are excluded from the calculation of diluted loss per share for the six months ended June 30, 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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021
Weighted average common shares outstanding		30,933		30,933		30,933
Unconverted restricted stock units		99		84		99
Common shares outstanding for diluted earnings per share		31,032		31,017		31,032

For the six months ended June 30, 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):

	Six Months Ended
	June 30, 2020
Unconverted restricted stock units	84