Earnings per share (Notes)

6 Months Ended

Jun. 30, 2019

Earnings per share

Basic earnings per share is calculated by dividing net income attributable to the Company, adjusted for any change in noncontrolling interest redemption rights in excess of fair value, by the weighted average number of common shares outstanding, net of the weighted average shares held in escrow that under certain circumstances may have been returned to the Company.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units (under the treasury stock method) as well as the weighted average shares held in escrow that were outstanding during the period.

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:



	Three months ended June 30,					Six months ended June 30,
	2019		2018			2019		2018
Numerators:
Net income from continuing operations attributable to DaVita Inc.	$	194,223	$	199,603		$	314,477	$	390,618
Change in noncontrolling interest redemption rights in excess of fair value	—		(98		)	—		(98		)
Net income from continuing operations for earnings per share calculation	194,223		199,505			314,477		390,520
Net income from discontinued operations attributable to DaVita Inc.	79,328		67,673			108,363		55,344
Net income attributable to DaVita Inc. for earnings per share calculation	$	273,551	$	267,178		$	422,840	$	445,864

Basic:
Weighted average shares outstanding during the period	166,346		173,811			166,367		177,461
Weighted average contingently returnable shares held in escrow for the DaVita HealthCare Partners merger	—		(2,194		)	—		(2,194		)
Weighted average shares for basic earnings per share calculation	166,346		171,617			166,367		175,267

Basic net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.17	$	1.16		$	1.89	$	2.23
Discontinued operations per share	0.47		0.40			0.65		0.31
Basic net income per share attributable to DaVita Inc.	$	1.64	$	1.56		$	2.54	$	2.54

Diluted:
Weighted average shares outstanding during the period	166,346		173,811			166,367		177,461
Assumed incremental shares from stock plans	454		295			423		489
Weighted average shares for diluted earnings per share calculation	166,800		174,106			166,790		177,950

Diluted net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.16	$	1.15		$	1.89	$	2.19
Discontinued operations per share	0.48		0.38			0.65		0.32
Diluted net income per share attributable to DaVita Inc.	$	1.64	$	1.53		$	2.54	$	2.51

Anti-dilutive stock-settled awards excluded from calculation⁽¹⁾	5,797		6,227			5,974		4,840

(1)

Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method.