Earnings Per Share

9 Months Ended

Sep. 30, 2020

Net (loss) 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 62.7% 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					Nine Months Ended
	September 30,					September 30,
	2020		2019		2020		2019
Net income — basic	$	51,172	$	6,247	$	3,395	$	82,990
Less: Adjustment for dilutive effect of Telesat stock options		(257)		(51)		(46)		(535)
Net income — diluted	$	50,915	$	6,196	$	3,349	$	82,455

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					Nine Months Ended
	September 30,					September 30,
	2020		2019		2020		2019
Weighted average common shares outstanding		30,933		30,933		30,933		30,933
Unconverted restricted stock units		93		75		84		75
Common shares outstanding for diluted earnings per share		31,026		31,008		31,017		31,008