Earnings per share

12 Months Ended

Dec. 31, 2013

Earnings per share

2. Earnings per share

Basic net income per share is calculated by dividing net income attributable to the Company adjusted for any change in noncontrolling interest redemption rights in excess of fair value, by the weighted average number of common shares and vested stock units outstanding, net of shares held in escrow that under certain circumstances may be returned to the Company.

Diluted net income per share includes the dilutive effect of outstanding stock-settled stock appreciation rights (SSARs), stock options and unvested stock units (under the treasury stock method) as well as shares held in escrow that the Company expects will remain outstanding.

The reconciliations of the numerators and denominators used to calculate basic and diluted net income per share are as follows:

	Year ended December 31,
	2013			2012			2011
	(shares in thousands)
Basic:
Income from continuing operations attributable to DaVita HealthCare Partners Inc.	$	620,197		$	536,236		$	496,182
Change in noncontrolling interest redemption rights in excess of fair value		—			—			335
Income from continuing operations for basic earnings per share calculation		620,197			536,236			496,517
Discontinued operations attributable to DaVita HealthCare Partners Inc.		13,249			(219	)		(18,181	)
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation	$	633,446		$	536,017		$	478,336
Weighted average shares outstanding during the period		212,128			192,396			189,309
Vested stock units		5			6			7
Weighted average contingently returnable shares held in escrow as a result of the acquisition of HealthCare Partners		(2,194	)		(366	)		—
Weighted average shares for basic earnings per share calculation		209,939			192,036			189,316
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc.	$	2.95		$	2.79		$	2.62
Basic income from discontinued operations per share attributable to DaVita HealthCare Partners Inc.		0.07			—			(0.09	)
Basic net income per share attributable to DaVita HealthCare Partners Inc.	$	3.02		$	2.79		$	2.53
Diluted:
Income from continuing operations attributable to DaVita HealthCare Partners Inc.	$	620,197		$	536,236		$	496,182
Change in noncontrolling interest redemption rights in excess of fair value		—			—			335
Income from continuing operations for diluted earnings per share calculation		620,197			536,236			496,517
Discontinued operations attributable to DaVita HealthCare Partners Inc.		13,249			(219	)		(18,181	)
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation	$	633,446		$	536,017		$	478,336
Weighted average shares outstanding during the period		212,128			192,396			189,309
Vested stock units		5			6			7
Assumed incremental shares from stock plans		2,631			3,540			3,748
Weighted average shares for diluted earnings per share calculation		214,764			195,942			193,064
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc.	$	2.89		$	2.74		$	2.57
Diluted income from discontinued operations per share attributable to DaVita HealthCare Partners Inc.		0.06			—			(0.09	)
Diluted net income per share attributable to DaVita HealthCare Partners Inc.	$	2.95		$	2.74		$	2.48
Anti-dilutive stock-settled awards excluded from calculation(1)		4,194			2,616			4,775

(1) Shares associated with stock-settled stock appreciation rights and stock options excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method.