EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2015

EARNINGS PER SHARE

7. 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 by the weighted average number of common shares after considering the additional dilution related to restricted share 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,
	2015		2014
NUMERATOR
Basic:
Net income	$	57,277	$	51,738
Diluted:
Net income	$	57,277	$	51,738
DENOMINATOR
Basic:
Weighted average common shares outstanding		116,634		115,773
Diluted:
Weighted average common shares outstanding		116,634		115,773
Effect of dilutive securities:
Stock options		869		963
Restricted stock-based compensation		265		224
Weighted average shares and assumed conversions		117,768		116,960
BASIC EARNINGS PER SHARE	$	0.49	$	0.45
DILUTED EARNINGS PER SHARE	$	0.49	$	0.44

Approximately 15,900 stock options were excluded from the computation of diluted earnings per share for the three months ended March 31, 2014 because they were anti-dilutive. There were no stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2015.