EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

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 CoreCivic, 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 Years Ended December 31,
	2016		2015		2014
NUMERATOR
Basic:
Net income	$	219,919	$	221,854	$	195,022

Diluted:
Net income	$	219,919	$	221,854	$	195,022

DENOMINATOR
Basic:
Weighted average common shares outstanding		117,384		116,949		116,109

Diluted:
Weighted average common shares outstanding		117,384		116,949		116,109
Effect of dilutive securities:
Stock options		306		631		895
Restricted stock-based awards		101		205		308

Weighted average shares and assumed conversions		117,791		117,785		117,312

BASIC EARNINGS PER SHARE	$	1.87	$	1.90	$	1.68

DILUTED EARNINGS PER SHARE	$	1.87	$	1.88	$	1.66

Approximately 268,000, 8,000, and 12,000 stock options were excluded from the computations of diluted earnings per share for the years ended December 31, 2016, 2015, and 2014, respectively, because they were anti-dilutive.