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 dilutive 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,
	2017		2016		2017		2016
Numerator:
Net income available to TMHC – basic	$	32,876	$	14,837	$	68,789	$	33,335
Net income attributable to non-controlling interest – Principal Equityholders	21,390		43,471		76,810		96,261
Loss fully attributable to public holding company	136		19		288		191
Net income – diluted	$	54,402	$	58,327	$	145,887	$	129,787
Denominator:
Weighted average shares – basic (Class A)	72,471		30,427		56,791		31,300
Weighted average shares – Principal Equityholders’ non-controlling interest (Class B)	47,253		89,053		62,842		89,089
Restricted stock units	1,121		522		1,026		463
Stock Options	338		101		332		18
Weighted average shares – diluted	121,183		120,103		120,991		120,870
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	0.45	$	0.49	$	1.21	$	1.07
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	0.45	$	0.49	$	1.21	$	1.07

We excluded a total weighted average of 1,685,938 and 1,602,509 outstanding anti-dilutive stock options and unvested restricted stock units (“RSUs”) and 1,926,836 and 1,578,969 outstanding stock options and unvested RSUs from the calculation of earnings per share for the three and nine months ended September 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.