Earnings Per Common Share

12 Months Ended

Dec. 31, 2023

The calculation of basic earnings per common share is computed by dividing income available to Arch common shareholders by the weighted average number of Common Shares and common share equivalents outstanding. The following table sets forth the computation of basic and diluted earnings per common share:


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income	$	4,442	$	1,482	$	2,239
Amounts attributable to noncontrolling interests	1		(6)		(82)
Net income available to Arch	4,443		1,476		2,157
Preferred dividends	(40)		(40)		(48)
Loss on redemption of preferred shares	—		—		(15)
Net income available to Arch common shareholders	$	4,403	$	1,436	$	2,094

Denominator:
Weighted average common shares outstanding	368.7		368.6		391.7


Effect of dilutive common share equivalents:
Nonvested restricted shares	2.5		2.1		2.0
Stock options (1)	7.6		6.9		6.6
Weighted average common shares and common share equivalents outstanding – diluted	378.8		377.6		400.3

Earnings per common share:
Basic	$	11.94	$	3.90	$	5.35
Diluted	$	11.62	$	3.80	$	5.23

(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 2023, 2022 and 2021, the number of stock options excluded were 0.5 million, 0.8 million and 2.4 million, respectively.