Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of computation of basic and diluted earnings per common share

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



	Year Ended December 31,
	2019			2018			2017
Numerator:
Net income	$	1,693,300		$	727,821		$	629,709
Amounts attributable to noncontrolling interests	(56,981		)	30,150			(10,431		)
Net income available to Arch	1,636,319			757,971			619,278
Preferred dividends	(41,612		)	(41,645		)	(46,041		)
Loss on redemption of preferred shares	—			(2,710		)	(6,735		)
Net income available to Arch common shareholders	$	1,594,707		$	713,616		$	566,502

Denominator:
Weighted average common shares outstanding	401,802,815			401,036,376			377,531,628
Series D preferred securities (1)	—			3,311,245			26,606,736
Weighted average common shares outstanding – basic	401,802,815			404,347,621			404,138,364
Effect of dilutive common share equivalents:
Nonvested restricted shares	1,673,770			1,474,207			3,936,594
Stock options (2)	8,132,893			7,084,650			9,710,067
Weighted average common shares and common share equivalents outstanding – diluted	411,609,478			412,906,478			417,785,025

Earnings per common share:
Basic	$	3.97		$	1.76		$	1.40
Diluted	$	3.87		$	1.73		$	1.36


(1)	The company has determined that, based on a review of the terms, features and rights of the Company’s non-voting common equivalent preferred shares compared to the rights of the Company’s common shareholders, the underlying common shares that the convertible securities convert to were common share equivalents at the time of their issuance.

(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 2019, 2018 and 2017, the number of stock options excluded were 1,302,017, 5,673,821 and 2,603,451, respectively.