XML 73 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Earnings Per Share
6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share

4. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income available to TMHC by the weighted average number 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 Class A Common Stock and if equity awards to issue common stock that are dilutive were exercised (in thousands):

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2014      2013      2014      2013  

Numerator:

           

Net income available to TMHC — basic

   $ 14,816       $ 5,327       $ 25,748       $ 5,327   

Principal Equityholders’ non-controlling interest

     40,461         14,492         70,708         14,492   

Loss fully attributable to Class A Common Stock

     45         30         244         30   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income — diluted

   $ 55,322       $ 19,849       $ 96,700       $ 19,849   

Denominator:

           

Weighted average shares — basic (Class A)

     32,875         32,806         32,866         32,806   

Principal Equityholders’ non-controlling interest (Class B)

     89,434         89,503         89,443         89,503   

Restricted stock units

     45         18         40         18   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares — diluted

     122,354         122,327         122,349         122,327   

Earnings per common share:

           

Basic

   $ 0.45       $ 0.16       $ 0.78       $ 0.16   

Diluted

   $ 0.45       $ 0.16       $ 0.78       $ 0.16   

We excluded a total of 1,264,137 and 1,252,237 stock options and time-vesting RSUs from the calculation of earnings per common share for the three and six months ended June 30, 2014, respectively, and excluded 1,109,364 stock options from the calculation of the earnings per common share for the three and six months ended June 30, 2013, as their inclusion is anti-dilutive.

The shares of Class B Common Stock have voting rights but no economic rights, including no rights to dividends or distribution on liquidation, and therefore, are not participating securities. Accordingly, Class B Common Stock is not included in basic earnings per share. Additionally, the income from Principal Equityholders’ non-controlling interest and the related Class B Shares produces an anti-dilutive effect on diluted earnings per common share.