Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020		2019		2018
Numerator:
Net income	$	1,465,711	$	1,693,300	$	727,821
Amounts attributable to noncontrolling interests	(60,190)		(56,981)		30,150
Net income available to Arch	1,405,521		1,636,319		757,971
Preferred dividends	(41,612)		(41,612)		(41,645)
Loss on redemption of preferred shares	—		—		(2,710)
Net income available to Arch common shareholders	$	1,363,909	$	1,594,707	$	713,616

Denominator:
Weighted average common shares outstanding	403,062,179		401,802,815		401,036,376
Series D preferred securities (1)	—		—		3,311,245
Weighted average common shares outstanding – basic	403,062,179		401,802,815		404,347,621
Effect of dilutive common share equivalents:
Nonvested restricted shares	1,682,309		1,673,770		1,474,207
Stock options (2)	5,514,967		8,132,893		7,084,650
Weighted average common shares and common share equivalents outstanding – diluted	410,259,455		411,609,478		412,906,478

Earnings per common share:
Basic	$	3.38	$	3.97	$	1.76
Diluted	$	3.32	$	3.87	$	1.73

(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 2020, 2019 and 2018, the number of stock options excluded were 2,249,821, 1,302,017 and 5,673,821, respectively.