NET INCOME (LOSS) PER COMMON SHARE

12 Months Ended

Dec. 31, 2014

NET INCOME (LOSS) PER COMMON SHARE

14.  NET INCOME (LOSS) PER COMMON SHARE

The following table presents a reconciliation of net income (loss) and shares used in calculating basic and diluted net income (loss) per share for the years ended December 31, 2014, 2013 and 2012.

	For the Years Ended
	December 31, 2014			December 31, 2013		December 31, 2012
	(dollars in thousands, except per share data)
Net income (loss) attributable to Annaly		(842,083	)		3,729,698		1,735,900
Less: Preferred stock dividends		71,968			71,968		39,530
Net income (loss) per share available (related) to common stockholders, prior to adjustment for dilutive potential common shares, if necessary		(914,051	)		3,657,730		1,696,370
Add:  Interest on Convertible Senior Notes, if dilutive		-			67,056		27,843
Net income (loss) available to common stockholders, as adjusted		(914,051	)		3,724,786		1,724,213
Weighted average shares of common stock outstanding-basic		947,539,294			947,337,915		972,902,459
Add:  Effect of stock awards and Convertible Senior Notes, if dilutive		-			48,219,111		32,852,598
Weighted average shares of common  stock outstanding-diluted		947,539,294			995,557,026		1,005,755,057
Net income (loss) per share available (related) to common share:
Basic	$	(0.96	)	$	3.86	$	1.74
Diluted	$	(0.96	)	$	3.74	$	1.71

Options to purchase 2.3 million shares of common stock were outstanding and considered anti-dilutive as their exercise price and option expense exceeded the average stock price for the year ended December 31, 2014. Options to purchase 3.5 million shares of common stock were outstanding and considered anti-dilutive as their exercise price and option expense exceeded the average stock price for the year ended December 31, 2013. Options to purchase 2.8 million shares of common stock were outstanding and considered anti-dilutive as their exercise price and option expense exceeded the average stock price for the year ended December 31, 2012.