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 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 stock-based awards 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,
	2018		2017
NUMERATOR
Basic:
Net income	$	37,777	$	50,047
Diluted:
Net income	$	37,777	$	50,047
DENOMINATOR
Basic:
Weighted average common shares outstanding		118,359		117,782
Diluted:
Weighted average common shares outstanding		118,359		117,782
Effect of dilutive securities:
Stock options	101			420
Restricted stock-based awards	49			57
Weighted average shares and assumed conversions		118,509		118,259
BASIC EARNINGS PER SHARE	$	0.32	$	0.42
DILUTED EARNINGS PER SHARE	$	0.32	$	0.42

Approximately 0.5 million stock options were excluded from the computation of diluted earnings per share for the three months ended March 31, 2018, 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, 2017.