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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Numerator:
Net income available to TMHC – basic	$	27,401	$	11,685	$	37,169	$	18,498
Net income attributable to non-controlling interest – Principal Equityholders	28,322		33,683		54,164		52,790
Loss fully attributable to public holding company	125		100		152		173
Net income – diluted	$	55,848	$	45,468	$	91,485	$	71,461
Denominator:
Weighted average shares – basic (Class A)	58,977		31,574		48,822		31,742
Weighted average shares – Principal Equityholders’ non-controlling interest (Class B)	60,630		89,107		70,766		89,107
Restricted stock units	1,075		366		976		367
Stock Options	379		5		331		1
Weighted average shares – diluted	121,061		121,052		120,895		121,217
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	0.46	$	0.37	$	0.76	$	0.58
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	0.46	$	0.37	$	0.76	$	0.58

We excluded a total weighted average of anti-dilutive 1,660,683 and 1,602,935 stock options and unvested restricted stock units (“RSUs”) and 1,926,724 and 2,361,178 stock options and unvested RSUs from the calculation of earnings per share for the three and six months ended June 30, 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.