Earnings Per Share

9 Months Ended

Sep. 30, 2020

8. 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, 2020 and 2019 as follows (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net income	$	39,172	$	45,885	$	100,947	$	128,370
Net loss attributable to noncontrolling interests		48		47		174		181
Net income attributable to The GEO Group, Inc.		39,220		45,932		101,121		128,551
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding		119,826		119,209		119,677		119,052
Per share amount	$	0.33	$	0.39	$	0.84	$	1.08
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding		119,826		119,209		119,677		119,052
Dilutive effect of equity incentive plans		206		73		287		262
Weighted average shares assuming dilution		120,032		119,282		119,964		119,314
Per share amount	$	0.33	$	0.39	$	0.84	$	1.08

For the three months ended September 30, 2020, 1,996,201 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 1,810,572 common stock equivalents from restricted shares that were anti-dilutive.

For the three months ended September 30, 2019, 1,522,227 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 1,801,015 common stock equivalents from restricted shares that were anti-dilutive.

For the nine months ended September 30, 2020, 1,921,600 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 1,610,107 common stock equivalents from restricted shares that were anti-dilutive.

For the nine months ended September 30, 2019, 1,497,922 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 1,479,719 common stock equivalents from restricted shares that were anti-dilutive.