EARNINGS AND DIVIDENDS PER COMMON SHARE

The weighted average number of common shares outstanding during the reporting period is used to calculate basic earnings per common share. Diluted earnings per common share assume the exercise of stock options and vesting of restricted shares using the treasury stock method, to the extent dilutive. Dilution resulting from the conversion option within our convertible debt is determined by computing an average of incremental shares included in each quarterly diluted EPS computation. If NHI’s current share price increases above the adjusted conversion price, further dilution will be attributable to the conversion feature.

The following table summarizes the average number of common shares and the net income used in the calculation of basic and diluted earnings per common share (in thousands, except share and per share amounts):



	Year Ended December 31,
	2017		2016		2015
Net income attributable to common stockholders	$	159,365	$	151,540	$	148,862

BASIC:
Weighted average common shares outstanding	40,894,219		39,013,412		37,604,594

DILUTED:
Weighted average common shares outstanding	40,894,219		39,013,412		37,604,594
Stock options and restricted shares	67,703		52,497		34,842
Convertible senior notes - unsecured	189,531		89,471		4,735
Average dilutive common shares outstanding	41,151,453		39,155,380		37,644,171

Net income per common share - basic	$	3.90	$	3.88	$	3.96
Net income per common share - diluted	$	3.87	$	3.87	$	3.95

Net share effect of anti-dilutive stock options	573		6,366		51,603

Regular dividends declared per common share	$	3.80	$	3.60	$	3.40