EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

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 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 Three Months Ended March 31,
	2013		2012
NUMERATOR
Basic:
Income from continuing operations	$	181,092	$	32,042
Loss from discontinued operations, net of taxes		—		(362	)
Net income	$	181,092	$	31,680
Diluted:
Income from continuing operations	$	181,092	$	32,042
Loss from discontinued operations, net of taxes		—		(362	)
Diluted net income	$	181,092	$	31,680
DENOMINATOR
Basic:
Weighted average common shares outstanding		100,070		99,292
Diluted:
Weighted average common shares outstanding		100,070		99,292
Effect of dilutive securities:
Stock options		1,556		631
Restricted stock		209		163
Weighted average shares and assumed conversions		101,835		100,086
BASIC EARNINGS PER SHARE:
Income from continuing operations	$	1.81	$	0.32
Loss from discontinued operations, net of taxes		—		—
Net income	$	1.81	$	0.32
DILUTED EARNINGS PER SHARE:
Income from continuing operations	$	1.78	$	0.32
Loss from discontinued operations, net of taxes		—		—
Net income	$	1.78	$	0.32

Approximately 13,500 and 1.5 million stock options were excluded from the computations of diluted earnings per share for the three months ended March 31, 2013 and 2012, respectively, because they were anti-dilutive.