EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE

8. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For CCA diluted earnings per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to restricted stock-based compensation and stock options.

A reconciliation of the numerator and denominator of the basic earnings per share computation to the numerator and denominator of the diluted earnings per share computation is as follows (in thousands, except per share data):

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2012		2011			2012			2011
NUMERATOR
Basic:
Income from continuing operations	$	37,334	$	42,616		$	69,376		$	83,056
Loss from discontinued operations, net of taxes		—		(198	)		(362	)		(308	)
Net income	$	37,334	$	42,418		$	69,014		$	82,748
Diluted:
Income from continuing operations	$	37,334	$	42,616		$	69,376		$	83,056
Loss from discontinued operations, net of taxes		—		(198	)		(362	)		(308	)
Diluted net income	$	37,334	$	42,418		$	69,014		$	82,748
DENOMINATOR
Basic:
Weighted average common shares outstanding		99,570		106,977			99,431			107,828
Diluted:
Weighted average common shares outstanding		99,570		106,977			99,431			107,828
Effect of dilutive securities:
Stock options		767		622			699			657
Restricted stock-based compensation		128		129			146			146
Weighted average shares and assumed conversions		100,465		107,728			100,276			108,631
BASIC EARNINGS PER SHARE:
Income from continuing operations	$	0.37	$	0.40		$	0.70		$	0.77
Loss from discontinued operations, net of taxes		—		—			—			—
Net income	$	0.37	$	0.40		$	0.70		$	0.77
DILUTED EARNINGS PER SHARE:
Income from continuing operations	$	0.37	$	0.39		$	0.69		$	0.76
Loss from discontinued operations, net of taxes		—		—			—			—
Net income	$	0.37	$	0.39		$	0.69		$	0.76

Approximately 1.0 million and 1.6 million stock options were excluded from the computations of diluted earnings per share for the three months ended June 30, 2012 and 2011, respectively, because they were anti-dilutive. Approximately 1.3 million and 1.5 million stock options were excluded from the computations of diluted earnings per share for the six months ended June 30, 2012 and 2011, respectively, because they were anti-dilutive.