Earnings Per Share

9 Months Ended

Sep. 30, 2012

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. Repurchases of common stock under the stock repurchase program during the thirty-nine weeks ended September 30, 2012 were not significant.

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”) from continuing operations were calculated for the thirteen and thirty-nine weeks ended September 30, 2012 and October 2, 2011 as follows (in thousands, except per share data):



	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 30, 2012		October 2, 2011		September 30, 2012		October 2, 2011
Income from continuing operations	$	16,456	$	20,668	$	54,514	$	56,646
Net loss attributable to noncontrolling interests	890		225		881		1,050
Net income from continuing operations attributable to The GEO Group, Inc.	17,346		20,893		55,395		57,696
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	60,906		63,340		60,838		64,028
Per share amount from continuing operations	$	0.28	$	0.33	$	0.91	$	0.90
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding	60,906		63,340		60,838		64,028
Effect of dilutive securities: Stock options and restricted stock	396		215		245		360
Weighted average shares assuming dilution	61,302		63,555		61,083		64,388
Per share amount from continuing operations	$	0.28	$	0.33	$	0.91	$	0.90

Thirteen Weeks

For the thirteen weeks ended September 30, 2012, 24,303 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.

For the thirteen weeks ended October 2, 2011, 123,738 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. 106 shares of restricted stock were anti-dilutive.

Thirty-nine Weeks

For the thirty-nine weeks ended September 30, 2012, 59,915 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. 538 shares of restricted stock were anti-dilutive.

For the thirty-nine weeks ended October 2, 2011, 79,466 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.

- Definition

The entire disclosure for earnings per share.

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