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 June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
NUMERATOR
Basic:
Net income	$	45,475	$	57,583	$	95,522	$	103,890
Diluted:
Net income	$	45,475	$	57,583	$	95,522	$	103,890
DENOMINATOR
Basic:
Weighted average common shares outstanding		118,164		117,401		117,974		117,318
Diluted:
Weighted average common shares outstanding		118,164		117,401		117,974		117,318
Effect of dilutive securities:
Stock options	377			514	398			473
Restricted stock-based awards	44			94	51			98
Weighted average shares and assumed conversions		118,585		118,009		118,423		117,889
BASIC EARNINGS PER SHARE	$	0.38	$	0.49	$	0.81	$	0.89
DILUTED EARNINGS PER SHARE	$	0.38	$	0.49	$	0.81	$	0.88

There were no stock options excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2017 and 2016.