Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Numerator:
Net income	$	256,347		$	199,099		$	422,731		$	473,134
Amounts attributable to noncontrolling interests	(12,701		)	(13,932		)	(28,662		)	(34,840		)
Net income available to Arch	243,646			185,167			394,069			438,294
Preferred dividends	(10,403		)	(11,349		)	(20,840		)	(22,567		)
Loss on redemption of preferred shares	—			—			(2,710		)	—
Net income available to Arch common shareholders	$	233,243		$	173,818		$	370,519		$	415,727

Denominator:
Weighted average common shares outstanding	404,800,421			369,027,702			399,485,135			366,436,407
Series D preferred shares (1)	—			34,432,290			6,677,373			36,349,722
Weighted average common shares and common share equivalents outstanding — basic	404,800,421			403,459,992			406,162,508			402,786,129
Effect of dilutive common share equivalents:
Nonvested restricted shares	1,575,749			4,448,889			1,837,356			4,670,889
Stock options (2)	6,735,035			9,825,057			7,460,892			9,964,878
Weighted average common shares and common share equivalents outstanding — diluted	413,111,205			417,733,938			415,460,756			417,421,896

Earnings per common share:
Basic	$	0.58		$	0.43		$	0.91		$	1.03
Diluted	$	0.56		$	0.42		$	0.89		$	1.00


(1)	Such shares are convertible non-voting common equivalent preferred shares issued in connection with the UGC acquisition. See Note 3.

(2)

Certain stock options were not included in the computation of diluted earnings per share where the exercise price of the stock options exceeded the average market price and would have been anti-dilutive or where, when applying the treasury stock method to in-the-money options, the sum of the proceeds, including unrecognized compensation, exceeded the average market price and would have been anti-dilutive. For the 2018 second quarter and 2017 second quarter, the number of stock options excluded were 5,350,733 and 1,499,997, respectively. For the six months ended June 30, 2018 and 2017, the number of stock options excluded were 5,372,789 and 2,292,228, respectively.