EARNINGS PER SHARE

Basic earnings per share of common stock is computed by dividing the net income 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, 2018 and 2017 as follows (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Net income	$	39,229	$	38,453	$	111,474	$	109,761
Net loss attributable to noncontrolling interests	60		36		223		123
Net income attributable to The GEO Group, Inc.	39,289		38,489		111,697		109,884
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	119,681		122,251		120,567		119,356
Per share amount	$	0.33	$	0.31	$	0.93	$	0.92
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	119,681		122,251		120,567		119,356
Dilutive effect of equity incentive plans	621		636		488		758
Weighted average shares assuming dilution	120,302		122,887		121,055		120,114
Per share amount	$	0.33	$	0.31	$	0.92	$	0.91

Three Months

For the three months ended September 30, 2018, 613,224 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 477,941 common stock equivalents from restricted shares that were anti-dilutive.

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 EPS because the effect would be anti-dilutive. There were 818,400 common stock equivalents from restricted shares that were anti-dilutive.

Nine Months

For the nine months ended September 30, 2018, 904,375 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 671,149 common stock equivalents from restricted shares that were anti-dilutive.

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.