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,
	2018		2017		2018		2017
Numerator:
Net income available to TMHC – basic	$	93,568	$	32,876	$	196,446	$	68,789
Net income attributable to non-controlling interest	714		21,390		4,391		76,810
Loss fully attributable to public holding company	100		136		349		288
Net income – diluted	$	94,382	$	54,402	$	201,186	$	145,887
Denominator:
Weighted average shares – basic (Class A)	111,396		72,471		112,449		56,791
Weighted average shares – non-controlling interest (Class B)	863		47,253		2,508		62,842
Restricted stock units	904		1,121		1,043		1,026
Stock Options	277		338		378		332
Weighted average shares – diluted	113,440		121,183		116,378		120,991
Earnings per common share – basic:
Net income available to Taylor Morrison Home Corporation	$	0.84	$	0.45	$	1.75	$	1.21
Earnings per common share – diluted:
Net income available to Taylor Morrison Home Corporation	$	0.83	$	0.45	$	1.73	$	1.21

We excluded a total weighted average of 2,562,840 and 1,685,938 outstanding anti-dilutive stock options and unvested restricted stock units (“RSUs”) and 1,442,767 and 1,926,836 stock options and unvested RSUs from the calculation of earnings per share for the three and nine months ended September 30, 2018 and 2017, 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. Refer to Note 17. Subsequent Events for discussion regarding our holding company reorganization and the retirement of Class B Common Stock on October 26, 2018.