EARNINGS PER SHARE

Basic earnings per common share is computed by dividing the net income from continuing operations attributable to The GEO Group, Inc. 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 were calculated for the three and nine months ended September 30, 2017 and 2016 as follows (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Net income	$	38,453	$	43,674	$	109,761	$	99,156
Net loss attributable to noncontrolling interests	36		46		123		123
Net income attributable to The GEO Group, Inc.	38,489		43,720		109,884		99,279
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	122,251		111,162		119,356		111,015
Per share amount	$	0.31	$	0.39	$	0.92	$	0.89
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	122,251		111,162		119,356		111,015
Dilutive effect of equity incentive plans	636		342		758		410
Weighted average shares assuming dilution	122,887		111,504		120,114		111,425
Per share amount	$	0.31	$	0.39	$	0.91	$	0.89

Outstanding share and per-share amounts disclosed for all periods presented have been retroactively adjusted to reflect the effects of the stock split.

Three Months

For the three months ended September 30, 2017, 681,007 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 814,800 common stock equivalents from restricted shares that were anti-dilutive.

For the three months ended September 30, 2016, 921,192 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 357,842 common stock equivalents from restricted shares that were anti-dilutive.

Nine Months

For the nine months ended September 30, 2017, 601,453 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 662,126 common stock equivalents from restricted shares that were anti-dilutive.

For the nine months ended September 30, 2016, 849,915 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 333,782 common stock equivalents from restricted shares that were anti-dilutive.