NET INCOME (LOSS) PER COMMON SHARE

3 Months Ended

Mar. 31, 2015

NET INCOME (LOSS) PER COMMON SHARE

13.           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 quarters ended March 31, 2015 and 2014.

	For the Quarter Ended
	March 31, 2015			March 31, 2014
	(dollars in thousands, except per share data)
Net income (loss) attributable to Annaly	$	(476,409	)	$	(203,351	)
Less: Preferred stock dividends		17,992			17,992
Net income (loss) per share available (related) to common stockholders, prior to adjustment for dilutive potential common shares, if necessary		(494,401	)		(221,343	)
Add:  Interest on Convertible Senior Notes, if dilutive		-			-
Net income (loss) available to common stockholders, as adjusted		(494,401	)		(221,343	)
Weighted average shares of common stock outstanding-basic		947,669,831			947,458,813
Add:  Effect of stock awards and Convertible Senior Notes, if dilutive		-			-
Weighted average shares of common  stock outstanding-diluted		947,669,831			947,458,813
Net income (loss) per share available (related) to common share:
Basic	$	(0.52	)	$	(0.23	)
Diluted	$	(0.52	)	$	(0.23	)

Options to purchase 2.3 million and 3.2 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 quarters ended March 31, 2015 and 2014, respectively.