Earnings Per Common Share

Basic earnings per common share amounts are based on the weighted average of common shares outstanding for the respective periods. Diluted earnings per common 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 TRG Units exchangeable for common shares under the Continuing Offer (Note 15), outstanding options for TRG Units, TSR PSU, NOI PSU, Restricted and Performance-based TRG Profits Units, RSU, deferred shares under the Non-Employee Directors’ Deferred Compensation Plan, and unissued TRG Units under a unit option deferral election (Note 13). In computing the potentially dilutive effect of potential common stock, TRG 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 TRG 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 earnings per common share based on the number of shares, if any, which would be issuable if the end of the reporting period were the end of the contingency period.



	Year Ended December 31
	2018		2017		2016
Net income attributable to TCO common shareholders (Numerator):
Basic	$	57,952	$	55,267	$	107,358
Impact of additional ownership of TRG	85		114		257
Diluted	$	58,037	$	55,381	$	107,615

Shares (Denominator) – basic	60,994,444		60,675,129		60,363,416
Effect of dilutive securities	283,271		365,366		466,139
Shares (Denominator) – diluted	61,277,715		61,040,495		60,829,555

Earnings per common share - basic	$	0.95	$	0.91	$	1.78
Earnings per common share - diluted	$	0.95	$	0.91	$	1.77

The calculation of diluted earnings per common share in certain periods excluded certain potential common stock including outstanding TRG Units and unissued TRG Units under a unit option deferral election, both of which may be exchanged for common shares of TCO under the Continuing Offer. The table below presents the potential common stock excluded from the calculation of diluted earnings per common share as they were anti-dilutive in the period presented.



	Year Ended December 31
	2018	2017	2016
Weighted average noncontrolling TRG Units outstanding	4,149,144	4,089,327	3,983,781
Unissued TRG Units under unit option deferral elections	871,262	871,262	871,262