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 three and six months ended June 30, 2018 and 2017.



	Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
	(dollars in thousands, except per share data)
Net income (loss)	$	595,887		$	14,522		$	1,923,591		$	454,930
Net income (loss) attributable to noncontrolling interest	(32		)	(102		)	(128		)	(205		)
Net income (loss) attributable to Annaly	595,919			14,624			1,923,719			455,135
Dividends on preferred stock	31,377			23,473			65,143			46,946
Net income (loss) available (related) to common stockholders	$	564,542		$	(8,849	)	$	1,858,576		$	408,189
Weighted average shares of common stock outstanding-basic	1,160,436,777			1,019,000,817			1,160,029,575			1,018,971,942
Add: Effect of stock awards, if dilutive	542,674			—			514,005			385,755
Weighted average shares of common stock outstanding-diluted	1,160,979,451			1,019,000,817			1,160,543,580			1,019,357,697
Net income (loss) per share available (related) to common share:
Basic	$	0.49		$	(0.01	)	$	1.60		$	0.40
Diluted	$	0.49		$	(0.01	)	$	1.60		$	0.40

Options to purchase 0.5 million and 0.8 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 three and six months ended June 30, 2018 and 2017, respectively.