EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

2.	EARNINGS PER SHARE

The following table presents the calculation of basic and diluted earnings per common share for our Common and Class B common stock:


	Quarter Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	57,968	$	54,461	$	146,439	$	127,315
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		4,595		4,106		11,513		9,644

Earnings allocated to Watsco, Inc. shareholders	$	53,373	$	50,355	$	134,926	$	117,671

Weighted-average common shares outstanding - Basic		32,458,906		32,330,888		32,421,350		32,292,559
Basic earnings per share for Common and Class B common stock	$	1.64	$	1.56	$	4.16	$	3.64

Allocation of earnings for Basic:
Common stock	$	48,893	$	46,138	$	123,588	$	107,804
Class B common stock		4,480		4,217		11,338		9,867

	$	53,373	$	50,355	$	134,926	$	117,671

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	57,968	$	54,461	$	146,439	$	127,315
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		4,592		4,103		11,505		9,635

Earnings allocated to Watsco, Inc. shareholders	$	53,376	$	50,358	$	134,934	$	117,680

Weighted-average common shares outstanding - Basic		32,458,906		32,330,888		32,421,350		32,292,559
Effect of dilutive stock options		39,951		45,051		47,963		52,509

Weighted-average common shares outstanding - Diluted		32,498,857		32,375,939		32,469,313		32,345,068

Diluted earnings per share for Common and Class B common stock	$	1.64	$	1.56	$	4.16	$	3.64

Anti-dilutive stock options not included above		16,332		28,565		58,169		7,788

Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At September 30, 2015 and 2014, our outstanding Class B common stock was convertible into 2,724,464 and 2,707,725 shares of our Common stock, respectively.