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 (as defined below) 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 and six months ended June 30, 2023 and 2022 as follows (in thousands, except per share data):


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net income	$	29,525		$	53,673		$	57,519		$	91,852
Net loss attributable to noncontrolling interests		46			54			55			94
Less: Undistributed income allocable to participating securities		(5,016	)		(9,171	)		(9,787	)		(15,717	)
Net income attributable to The GEO Group, Inc. available to common stockholders		24,555			44,556			47,787			76,229
Basic earnings per share attributable to The GEO Group, Inc. available to common stockholders:
Weighted average shares outstanding		122,045			121,119			121,740			120,918
Per share amount	$	0.20		$	0.37		$	0.39		$	0.63
Diluted earnings per share attributable to The GEO Group, Inc. available to common stockholders:
Weighted average shares outstanding		122,045			121,119			121,740			120,918
Dilutive effect of equity incentive plans		1,233			762			1,756			732
Weighted average shares assuming dilution		123,278			121,881			123,496			121,650
Per share amount	$	0.20		$	0.37		$	0.39		$	0.63

For the three months ended June 30, 2023, 1,908,737 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 1,459,879 common stock equivalents from restricted shares that were anti-dilutive for the period.

For the three months ended June 30, 2022, 2,054,095 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 671,995 common stock equivalents from restricted shares that were anti-dilutive for the period.

For the six months ended June 30, 2023, 1,539,815 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 271,545 common stock equivalents from restricted shares that were anti-dilutive for the period.

For the six months ended June 30, 2022, 1,980,905 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 678,679 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 June 30, 2023, conditions had not been met to exchange the 6.50% Exchangeable Notes due 2026 into shares of the Company’s common stock. Approximately 24.9 million shares of potential common shares associated with the conversion option embedded in the convertible notes were excluded from the computation for the three and six months ended June 30, 2023 and 2022 as the average stock price was lower than the exchange price.