rnings Per Share

Basic earnings per share amounts are based on the weighted average of common shares outstanding for the respective periods. Diluted earnings per share amounts are based on the weighted average of common shares outstanding plus the dilutive effect of potential common stock. Potential common stock includes outstanding partnership units exchangeable for common shares under the Continuing Offer (Note 8), outstanding options for partnership units, PSU, RSU, deferred shares under the Non-Employee Directors’ Deferred Compensation Plan, and unissued partnership units under a unit option deferral election (Note 7). In computing the potentially dilutive effect of potential common stock, partnership units are assumed to be exchanged for common shares under the Continuing Offer, increasing the weighted average number of shares outstanding. The potentially dilutive effects of partnership units outstanding and/or issuable under the unit option deferral elections are calculated using the if-converted method, while the effects of other potential common stock are calculated using the treasury method. Contingently issuable shares are included in diluted EPS based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period.

As of June 30, 2011, there were 7.4 million partnership units outstanding and 0.9 million unissued partnership units under unit option deferral elections that may be exchanged for common shares of the Company under the Continuing Offer. These outstanding partnership units and unissued units were excluded from the computation of diluted earnings per share as they were anti-dilutive in all periods presented. Also, there were out-of-the-money options for 15 thousand and 0.2 million shares for the three and six months ended June 30, 2011, respectively, and 0.5 million and 0.6 million shares for the three and six months ended June 30, 2010, respectively, that were excluded from the computation of diluted EPS because they were anti-dilutive.



	Three Months Ended				Six Months Ended
	June 30				June 30
	2011		2010		2011		2010
Net income attributable to Taubman Centers, Inc. common shareowners (Numerator):
Basic	$	8,344	$	7,453	$	19,060	$	13,736
Impact of additional ownership of TRG	86		57		184		104
Diluted	$	8,430	$	7,510	$	19,244	$	13,840

Shares (Denominator) – basic	56,186,216		54,550,964		55,875,329		54,454,579
Effect of dilutive securities	1,583,249		1,060,923		1,501,547		1,036,356
Shares (Denominator) – diluted	57,769,465		55,611,887		57,376,876		55,490,935

Earnings per common share – basic	$	0.15	$	0.14	$	0.34	$	0.25
Earnings per common share – diluted	$	0.15	$	0.14	$	0.34	$	0.25