Earnings per share

3 Months Ended

Mar. 31, 2016

2.	Earnings per share

Basic net income (loss) per share is calculated by dividing net income (loss) 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 that under certain circumstances may be returned to the Company.

Diluted net income (loss) 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,
	2016			2015
Basic:
Net income (loss) attributable to DaVita HealthCare Partners Inc.	$	97,434		$	(110,617	)
Weighted average shares outstanding during the period		206,561			215,581
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		204,367			213,387
Basic net income (loss) per share attributable to DaVita HealthCare Partners Inc.	$	0.48		$	(0.52	)
Diluted:
Net income (loss) attributable to DaVita HealthCare Partners Inc.	$	97,434		$	(110,617	)
Weighted average shares outstanding during the period		206,561			215,581
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger		—			(2,194	)
Assumed incremental shares from stock plans		1,367			—
Weighted average shares for diluted earnings per share calculation		207,928			213,387
Diluted net income (loss) per share attributable to DaVita HealthCare Partners Inc.	$	0.47		$	(0.52	)
Anti-dilutive potential common shares excluded from calculation ⁽¹⁾		2,273			5,992

⁽¹⁾

Shares associated with stock-settled stock appreciation rights and contingently returnable shares that are excluded from the diluted denominator calculation because they are anti-dilutive on their terms or, in the case of the quarter ended March 31, 2015, due to the Company’s net loss attributable to DaVita HealthCare Partners Inc.