EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2016

2. EARNINGS PER SHARE

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


	Quarter Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	63,099	$	57,968	$	153,257	$	146,439
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		5,081		4,595		12,388		11,513

Earnings allocated to Watsco, Inc. shareholders	$	58,018	$	53,373	$	140,869	$	134,926

Weighted-average common shares outstanding - Basic		32,613,995		32,458,906		32,567,073		32,421,350
Basic earnings per share for Common and Class B common stock	$	1.78	$	1.64	$	4.33	$	4.16
Allocation of earnings for Basic:
Common stock	$	53,186	$	48,893	$	129,120	$	123,588
Class B common stock		4,832		4,480		11,749		11,338

	$	58,018	$	53,373	$	140,869	$	134,926

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	63,099	$	57,968	$	153,257	$	146,439
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		5,078		4,592		12,383		11,505

Earnings allocated to Watsco, Inc. shareholders	$	58,021	$	53,376	$	140,874	$	134,934

Weighted-average common shares outstanding - Basic		32,613,995		32,458,906		32,567,073		32,421,350
Effect of dilutive stock options		36,158		39,951		34,042		47,963

Weighted-average common shares outstanding - Diluted		32,650,153		32,498,857		32,601,115		32,469,313

Diluted earnings per share for Common and Class B common stock	$	1.78	$	1.64	$	4.32	$	4.16

Anti-dilutive stock options not included above		3,565		16,332		18,876		58,169

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, 2016 and 2015, our outstanding Class B common stock was convertible into 2,716,320 and 2,724,464 shares of our Common stock, respectively.