EARNINGS PER SHARE

9 Months Ended

Sep. 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 September 30,					For the Nine Months Ended September 30,
	2012		2011			2012			2011
NUMERATOR
Basic:
Income from continuing operations	$	42,339	$	39,347		$	111,715		$	122,403
Loss from discontinued operations, net of taxes		—		(107	)		(362	)		(415	)
Net income	$	42,339	$	39,240		$	111,353		$	121,988
Diluted:
Income from continuing operations	$	42,339	$	39,347		$	111,715		$	122,403
Loss from discontinued operations, net of taxes		—		(107	)		(362	)		(415	)
Diluted net income	$	42,339	$	39,240		$	111,353		$	121,988
DENOMINATOR
Basic:
Weighted average common shares outstanding		99,637		104,254			99,500			106,624
Diluted:
Weighted average common shares outstanding		99,637		104,254			99,500			106,624
Effect of dilutive securities:
Stock options		973		550			790			621
Restricted stock-based compensation		232		216			174			169
Weighted average shares and assumed conversions		100,842		105,020			100,464			107,414
BASIC EARNINGS PER SHARE:
Income from continuing operations	$	0.42	$	0.38		$	1.12		$	1.14
Loss from discontinued operations, net of taxes		—		—			—			—
Net income	$	0.42	$	0.38		$	1.12		$	1.14
DILUTED EARNINGS PER SHARE:
Income from continuing operations	$	0.42	$	0.37		$	1.11		$	1.14
Loss from discontinued operations, net of taxes		—		—			—			—
Net income	$	0.42	$	0.37		$	1.11		$	1.14

Approximately 0.2 million and 1.9 million stock options were excluded from the computations of diluted earnings per share for the three months ended September 30, 2012 and 2011, respectively, because they were anti-dilutive. Approximately 0.9 million and 1.6 million stock options were excluded from the computations of diluted earnings per share for the nine months ended September 30, 2012 and 2011, respectively, because they were anti-dilutive.