Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings per share

Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding, reduced for 2018 by the weighted average shares held in escrow that under certain circumstances may have been returned to the Company. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either their explicit vesting terms or retirement eligibility requirements.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units (under the treasury stock method) and, for 2018, the weighted average contingently returnable 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:


	Year ended December 31,
	2020		2019		2018
Net income (loss) attributable to DaVita Inc.:
Continuing operations	$	783,295	$	706,832	$	624,321
Discontinued operations	(9,653)		104,149		(464,927)
Net income attributable to DaVita Inc.	$	773,642	$	810,981	$	159,394

Weighted average shares outstanding:
During the period	119,797		153,181		171,886
Contingently returnable(1)	—		—		(1,100)
Basic shares	119,797		153,181		170,786
Contingently returnable(1)	—		—		1,100
Assumed incremental from stock plans	2,826		631		479
Diluted shares	122,623		153,812		172,365

Basic net income (loss) attributable to DaVita Inc.:
Continuing operations per share	$	6.54	$	4.61	$	3.66
Discontinued operations per share	(0.08)		0.68		(2.73)
Basic net income per share attributable to DaVita Inc.	$	6.46	$	5.29	$	0.93

Diluted net income (loss) attributable to DaVita Inc.:
Continuing operations per share	$	6.39	$	4.60	$	3.62
Discontinued operations per share	(0.08)		0.67		(2.70)
Diluted net income per share attributable to DaVita Inc.	$	6.31	$	5.27	$	0.92

Anti-dilutive stock-settled awards excluded from calculation(2)	2,301		5,936		5,295

(1)Shares previously held in escrow for the DaVita HealthCare Partners merger.

(2)Shares associated with stock awards excluded from the diluted denominator calculation because they were anti-dilutive under the treasury stock method.