Earnings Per Share

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income available to TMHC by the weighted average number of shares of Class A Common Stock outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if all shares of Class B Common Stock and their corresponding New TMM Units were exchanged for shares of Class A Common Stock and if all outstanding equity awards to issue shares of Class A Common Stock were exercised or settled.

The following is a summary of the components of basic and diluted earnings per share (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Numerator:
Net income available to TMHC – basic	$	14,837	$	12,344	$	33,335	$	43,382
Income from discontinued operations, net of tax	—		—		—		56,662
Income from discontinued operations, net of tax attributable to non-controlling interest – Principal Equityholders	—		—		—		(41,381		)
Net income from discontinued operations – basic	$	—	$	—	$	—	$	15,281
Net income from continuing operations – basic	$	14,837	$	12,344	$	33,335	$	28,101
Net income from continuing operations – basic	$	14,837	$	12,344	$	33,335	$	28,101
Net income from continuing operations attributable to non-controlling interest – Principal Equityholders	43,471		33,312		96,261		76,470
Loss fully attributable to public holding company	19		5		191		234
Net income from continuing operations – diluted	$	58,327	$	45,661	$	129,787	$	104,805
Net income from discontinued operations – diluted	$	—	$	—	$	—	$	56,662
Denominator:
Weighted average shares – basic (Class A)	30,427		33,122		31,300		33,088
Weighted average shares – Principal Equityholders’ non-controlling interest (Class B)	89,053		89,158		89,089		89,188
Restricted stock units	522		178		463		136
Stock Options	101		—		18		—
Weighted average shares – diluted	120,103		122,458		120,870		122,412
Earnings per common share – basic:
Income from continuing operations	$	0.49	$	0.37	$	1.07	$	0.85
Income from discontinued operations, nets of tax	$	—	$	—	$	—	$	0.46
Net income available to Taylor Morrison Home Corporation	$	0.49	$	0.37	$	1.07	$	1.31
Earnings per common share – diluted:
Income from continuing operations	$	0.49	$	0.37	$	1.07	$	0.85
Income from discontinued operations, net of tax	$	—	$	—	$	—	$	0.46
Net income available to Taylor Morrison Home Corporation	$	0.49	$	0.37	$	1.07	$	1.31

We excluded a total weighted average of 1,602,509 and 1,531,404 stock options and unvested restricted stock units (“RSUs”) and 1,578,969 and 1,543,056 stock options and unvested RSUs from the calculation of earnings per share for the three and nine months ended September 30, 2016 and 2015, respectively.

The shares of Class B Common Stock have voting rights but do not have economic rights or rights to dividends or distributions on liquidation and therefore are not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share.