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 September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
NUMERATOR
Basic:
Net income	$	40,994	$	41,178	$	117,968	$	136,700
Diluted:
Net income	$	40,994	$	41,178	$	117,968	$	136,700
DENOMINATOR
Basic:
Weighted average common shares outstanding		118,597		118,182		118,544		118,044
Diluted:
Weighted average common shares outstanding		118,597		118,182		118,544		118,044
Effect of dilutive securities:
Stock options	178			262	123			353
Restricted stock-based awards	74			84	44			62
Weighted average shares and assumed conversions		118,849		118,528		118,711		118,459
BASIC EARNINGS PER SHARE	$	0.35	$	0.35	$	1.00	$	1.16
DILUTED EARNINGS PER SHARE	$	0.34	$	0.35	$	0.99	$	1.15

Approximately 16,000 and 0.3 million stock options were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2018, respectively, because they were anti-dilutive. Approximately 16,000 and 5,000 stock options were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2017, respectively, because they were anti-dilutive.