EARNINGS PER SHARE

Basic earnings per share of common stock 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 months ended June 30, 2018 and 2017 as follows (in thousands, except per share data):



	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Net income	$	37,325	$	30,942	$	72,245	$	71,308
Net loss attributable to noncontrolling interests	96		50		163		87
Net income attributable to The GEO Group, Inc.	37,421		30,992		72,408		71,395
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	120,274		122,125		121,017		117,885
Per share amount	$	0.31	$	0.25	$	0.60	$	0.61
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	120,274		122,125		121,017		117,885
Dilutive effect of equity incentive plans	385		770		444		817
Weighted average shares assuming dilution	120,659		122,895		121,461		118,702
Per share amount	$	0.31	$	0.25	$	0.60	$	0.60

Three Months

For the three months ended June 30, 2018, 969,655 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 709,153 common stock equivalents from restricted shares that were anti-dilutive.

For the three months ended June 30, 2017, 486,018 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 175,385 common stock equivalents from restricted shares that were anti-dilutive.

Six Months

For the six months ended June 30, 2018, 821,206 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 719,184 common stock equivalents from restricted shares that were anti-dilutive.

For the six months ended June 30, 2017, 561,129 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 554,201 common stock equivalents from restricted shares that were anti-dilutive.