EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

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 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 Three Months Ended March 31,
	2017		2016
NUMERATOR
Basic:
Net income	$	50,047	$	46,307


Diluted:
Net income	$	50,047	$	46,307


DENOMINATOR
Basic:
Weighted average common shares outstanding		117,782		117,235


Diluted:
Weighted average common shares outstanding		117,782		117,235
Effect of dilutive securities:
Stock options		420		432
Restricted stock-based awards		57		102

Weighted average shares and assumed conversions		118,259		117,769


BASIC EARNINGS PER SHARE	$	0.42	$	0.39


DILUTED EARNINGS PER SHARE	$	0.42	$	0.39

There were no stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2017. Approximately 16,000 stock options were excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 because they were anti-dilutive.