EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

EARNINGS PER SHARE

14. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the year. 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 as adjusted, by the weighted average number of common shares after considering the additional dilution related to restricted stock grants 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 Years Ended December 31,
	2012			2011			2010
NUMERATOR
Basic:
Income from continuing operations	$	157,123		$	163,766		$	158,363
Loss from discontinued operations, net of taxes		(362	)		(1,256	)		(1,170	)
Net income	$	156,761		$	162,510		$	157,193
Diluted:
Income from continuing operations	$	157,123		$	163,766		$	158,363
Loss from discontinued operations, net of taxes		(362	)		(1,256	)		(1,170	)
Diluted net income	$	156,761		$	162,510		$	157,193
DENOMINATOR
Basic:
Weighted average common shares outstanding		99,545			104,736			112,015
Diluted:
Weighted average common shares outstanding		99,545			104,736			112,015
Effect of dilutive securities:
Stock options		864			603			769
Restricted stock-based compensation		214			196			193
Weighted average shares and assumed conversions		100,623			105,535			112,977
BASIC EARNINGS PER SHARE:
Income from continuing operations	$	1.58		$	1.56		$	1.41
Loss from discontinued operations, net of taxes		—			(0.01	)		(0.01	)
Net income	$	1.58		$	1.55		$	1.40
DILUTED EARNINGS PER SHARE:
Income from continuing operations	$	1.56		$	1.55		$	1.40
Loss from discontinued operations, net of taxes		—			(0.01	)		(0.01	)
Net income	$	1.56		$	1.54		$	1.39

Approximately 0.7 million, 1.6 million, and 1.4 million stock options were excluded from the computations of diluted earnings per share for the years ended December 31, 2012, 2011, and 2010, respectively, because they were anti-dilutive.