Basic earnings per share of common stock is computed by dividing the net income attributable to The GEO Group, Inc. available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income attributable to The GEO Group, Inc. available to common stockholders represents net income attributable to The GEO Group reduced by an allocation of earnings to participating securities. The 6.50% Exchangeable Notes due 2026, which contain non-forfeitable rights to dividends declared and paid on the shares of common stock, are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Diluted EPS is calculated under the if-converted method and the two-class method for each class of shareholders using the weighted average number of shares attributable to each class. The calculation that results in the lowest diluted earnings per share amount for common stock is reported in the Company’s financial statements. The if-converted method includes the dilutive effect of potential common shares related to the 6.50% Exchangeable Notes due 2026, if any. Basic and diluted earnings per share were calculated for the three months ended March 31, 2023 and 2022 as follows (in thousands, except per share data):


	Three Months Ended
	March 31, 2023			March 31, 2022
Net income	$	27,994		$	38,179
Net loss attributable to noncontrolling interests		9			40
Less: Undistributed income allocable to participating securities		(4,770	)		(6,542	)
Net income attributable to The GEO Group, Inc. available to common stockholders		23,233			31,677
Basic earnings per share attributable to The GEO Group, Inc. available to common stockholders:
Weighted average shares outstanding		121,432			120,714
Per share amount	$	0.19		$	0.26
Diluted earnings per share attributable to The GEO Group, Inc. available to common stockholders:
Weighted average shares outstanding		121,432			120,714
Dilutive effect of equity incentive plans		2,220			680
Dilutive effect of exchangeable notes		1,487			-
Weighted average shares assuming dilution		125,139			121,394
Per share amount	$	0.19		$	0.26

For the three months ended March 31, 2023, 1,442,751 weighted average shares of common stock underlying options were excluded from the computation of diluted earnings per share ("EPS") because the effect would be anti-dilutive. There were 203,831 common stock equivalents from restricted shares that were anti-dilutive for the period.

For the three months ended March 31, 2022, 1,906,029 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. There were 875,148 common stock equivalents from restricted shares that were anti-dilutive for the period.

On February 24, 2021, the Company’s wholly owned subsidiary, GEO Corrections Holdings, Inc. (“GEOCH”), completed a private offering of $230 million aggregate principal amount of 6.50% Exchangeable Notes due 2026. Refer to Note 10 – Debt for additional information. As of March 31, 2023, conditions had not been met to exchange the 6.50% Exchangeable Notes due 2026 into shares of the Company’s common stock. Approximately 1.5 million shares of potential common shares associated with the conversion option

embedded in the convertible notes were included in the computation of diluted EPS for the three months ended March 31, 2023 as the Company's average stock price during the period was higher than the exchange price.