Earnings Per Share

6 Months Ended

Jul. 01, 2012

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Stock Repurchase Program

On July 14, 2011, the Company announced that its Board of Directors approved a stock repurchase program of up to $100.0 million of the Company's common stock effective through December 31, 2012. The stock repurchase program will be funded primarily with cash on hand, free cash flow, and borrowings under the Company’s Revolving Credit Facility. The stock repurchase program is intended to be implemented through purchases made from time to time in the open market or in privately negotiated transactions, in accordance with applicable securities and stock exchange requirements. The program may also include repurchases from time to time from executive officers or directors of vested restricted stock and/or vested stock options. The stock repurchase program does not obligate the Company to purchase any specific amount of its common stock and may be suspended or extended at any time at the Company’s discretion. During the fiscal year ended January 1, 2012, the Company purchased 3.9 million shares of its common stock at a cost of $75.0 million primarily purchased with proceeds from the Company’s Revolving Credit Facility. There were no repurchases of common stock under the stock repurchase program during the twenty-six weeks ended July 1, 2012.

Earnings per share

Basic earnings per share is computed by dividing the net income attributable to The GEO Group, Inc. shareholders by the weighted average number of outstanding shares of common stock. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator includes dilutive common stock equivalents such as stock options and shares of restricted stock. Basic and diluted earnings per share (“EPS”) were calculated for the thirteen and twenty-six weeks ended July 1, 2012 and July 3, 2011 as follows (in thousands, except per share data):

	Thirteen Weeks Ended				Twenty-six Weeks Ended
	July 1, 2012		July 3, 2011		July 1, 2012			July 3, 2011
Income from continuing operations	$	23,046	$	20,246	$	38,058		$	35,978
Net (income) loss attributable to noncontrolling interests	25		415		(9		)	825
Net income from continuing operations attributable to The GEO Group, Inc.	23,071		20,661		38,049			36,803
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	60,839		64,455		60,803			64,373
Per share amount	$	0.38	$	0.32	$	0.63		$	0.57
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	60,839		64,455		60,803			64,373
Effect of dilutive securities: Stock options and restricted stock	227		403		181			414
Weighted average shares assuming dilution	61,066		64,858		60,984			64,787
Per share amount	$	0.38	$	0.32	$	0.62		$	0.57

Thirteen Weeks

For the thirteen weeks ended July 1, 2012, 57,934 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. 1,642 shares of restricted stock were anti-dilutive.

For the thirteen weeks ended July 3, 2011, 77,472 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. No shares of restricted stock were anti-dilutive.

Twenty-six Weeks

For the twenty-six weeks ended July 1, 2012, 112,428 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. 1,584 shares of restricted stock were anti-dilutive.

For the twenty-six weeks ended July 3, 2011, 56,094 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. No shares of restricted stock were anti-dilutive.