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,
	2019		2018		2019		2018
NUMERATOR
Basic:
Net income	$	48,578	$	39,197	$	97,918	$	76,974
Diluted:
Net income	$	48,578	$	39,197	$	97,918	$	76,974
DENOMINATOR
Basic:
Weighted average common shares outstanding		119,080		118,546		119,026		118,501
Diluted:
Weighted average common shares outstanding		119,080		118,546		119,026		118,501
Effect of dilutive securities:
Stock options	51			92	43			96
Restricted stock-based awards	131			10	112			29
Weighted average shares and assumed conversions		119,262		118,648		119,181		118,626
BASIC EARNINGS PER SHARE	$	0.41	$	0.33	$	0.82	$	0.65
DILUTED EARNINGS PER SHARE	$	0.41	$	0.33	$	0.82	$	0.65

Approximately 0.3 million and 0.4 million stock options were excluded from the computation of diluted earnings per share for the three months ended June 30, 2019 and 2018, respectively because they were anti-dilutive. Approximately 0.4 million and 0.5 million stock options were excluded from the computation of diluted earnings per share for the six months ended June 30, 2019 and 2018, respectively, because they were anti-dilutive.