Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	488,682	$	399,189	$	866,397	$	1,380,532
Amounts attributable to noncontrolling interests	(69,643)		(6,736)		(4,420)		(70,597)
Net income (loss) available to Arch	419,039		392,453		861,977		1,309,935
Preferred dividends	(10,403)		(10,403)		(31,209)		(31,209)

Net income (loss) available to Arch common shareholders	$	408,636	$	382,050	$	830,768	$	1,278,726

Denominator:


Weighted average common shares and common share equivalents outstanding — basic	402,850,485		402,564,121		403,081,266		401,419,153
Effect of dilutive common share equivalents:
Nonvested restricted shares	1,580,791		1,895,972		1,690,447		1,637,015
Stock options (1)	4,763,381		8,720,108		5,543,184		7,751,234
Weighted average common shares and common share equivalents outstanding — diluted	409,194,657		413,180,201		410,314,897		410,807,402

Earnings per common share:
Basic	$	1.01	$	0.95	$	2.06	$	3.19
Diluted	$	1.00	$	0.92	$	2.02	$	3.11

(1) 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 2020 third quarter and 2019 third quarter, the number of stock options excluded were 4,713,241 and 37,394, respectively. For the nine months ended September 30, 2020 and 2019 period, the number of stock options excluded were 2,361,413 and 2,198,115, respectively.