Earnings Per Share

3 Months Ended

Mar. 31, 2017

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 March 31,
	2017		2016
Numerator:
Net income available to TMHC – basic	$	11,476	$	6,813
Net income attributable to non-controlling interest – Principal Equityholders	24,134		19,107
Loss fully attributable to public holding company	27		72
Net income – diluted	$	35,637	$	25,992
Denominator:
Weighted average shares – basic (Class A)	38,554		31,923
Weighted average shares – Principal Equityholders’ non-controlling interest (Class B)	81,015		89,107
Restricted stock units	703		237
Stock Options	206		—
Weighted average shares – diluted	120,478		121,267
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	0.30	$	0.21
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	0.30	$	0.21

We excluded a total weighted average of anti-dilutive 1,847,982 and 2,136,552 stock options and unvested restricted stock units (“RSUs”) from the calculation of earnings per share for the three months ended March 31, 2017 and 2016, 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.