Earnings Per Common Share

The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Numerator
Net income (loss)	$	92,928		$	22,101		$	136,165		$	486,278
Noncontrolling interests' share in earnings	(2,986		)	(2,718		)	(5,991		)	(5,750		)
Net income (loss) attributable to HCP, Inc.	89,942			19,383			130,174			480,528
Less: Participating securities' share in earnings	(461		)	(100		)	(852		)	(674		)
Net income (loss) applicable to common shares	$	89,481		$	19,283		$	129,322		$	479,854
Numerator - Dilutive
Net income (loss) applicable to common shares	$	89,481		$	19,283		$	129,322		$	479,854
Add: distributions on dilutive convertible units and other	—			—			—			3,655
Dilutive net income (loss) available to common shares	$	89,481		$	19,283		$	129,322		$	483,509
Denominator
Basic weighted average shares outstanding	469,769			468,646			469,664			468,474
Dilutive potential common shares - equity awards	172			193			135			195
Dilutive potential common shares - DownREIT conversions	—			—			—			4,697
Diluted weighted average common shares	469,941			468,839			469,799			473,366
Earnings per common share:
Basic	$	0.19		$	0.04		$	0.28		$	1.02
Diluted	$	0.19		$	0.04		$	0.28		$	1.02

Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, and require use of the two-class method when computing basic and diluted earnings per share.

For the three and six months ended June 30, 2018 and the three months ended June 30, 2017, 7 million shares issuable upon conversion of 4 million DownREIT units were not included because they are anti-dilutive.