Earnings per share

3 Months Ended

Mar. 31, 2017

Basic net income per share is calculated by dividing net income attributable to the Company, adjusted for any change in noncontrolling interests redemption rights in excess of fair value, by the weighted average number of common shares and vested stock units outstanding, net of shares held in escrow from the DaVita HealthCare Partner merger that under certain circumstances may be returned to the Company.

Diluted net income 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 contingently returnable shares held in escrow.

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



	Three months ended March 31,
	2017			2016
Basic:
Net income attributable to DaVita Inc.	$	447,697		$	97,434
Weighted average shares outstanding during the period	194,571			206,561
Contingently returnable shares held in escrow from the DaVita HealthCare Partners merger	(2,194		)	(2,194		)
Weighted average shares for basic earnings per share calculation	192,377			204,367
Basic net income per share attributable to DaVita Inc.	$	2.33		$	0.48
Diluted:
Net income attributable to DaVita Inc.	$	447,697		$	97,434
Weighted average shares outstanding during the period	194,571			206,561
Assumed incremental shares from stock plans	710			1,367
Weighted average shares for diluted earnings per share calculation	195,281			207,928
Diluted net income per share attributable to DaVita Inc.	$	2.29		$	0.47
Anti-dilutive potential common shares excluded from calculation⁽¹⁾	3,427			2,273


(1)	Shares associated with stock-settled stock appreciation rights that are excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method.