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,
	2017		2016		2017		2016
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	65,029	$	63,099	$	164,966	$	153,257
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		5,470		5,081		13,844		12,388

Earnings allocated to Watsco, Inc. shareholders	$	59,559	$	58,018	$	151,122	$	140,869


Weighted-average common shares outstanding - Basic		32,712,151		32,613,995		32,679,334		32,567,073
Basic earnings per share for Common and Class B common stock	$	1.82	$	1.78	$	4.62	$	4.33
Allocation of earnings for Basic:
Common stock	$	54,627	$	53,186	$	138,594	$	129,120
Class B common stock		4,932		4,832		12,528		11,749

	$	59,559	$	58,018	$	151,122	$	140,869


Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	65,029	$	63,099	$	164,966	$	153,257
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		5,468		5,078		13,840		12,383

Earnings allocated to Watsco, Inc. shareholders	$	59,561	$	58,021	$	151,126	$	140,874

Weighted-average common shares outstanding - Basic		32,712,151		32,613,995		32,679,334		32,567,073
Effect of dilutive stock options		34,215		36,158		32,516		34,042

Weighted-average common shares outstanding - Diluted		32,746,366		32,650,153		32,711,850		32,601,115

Diluted earnings per share for Common and Class B common stock	$	1.82	$	1.78	$	4.62	$	4.32

Anti-dilutive stock options not included above		12,571		3,565		33,156		18,876

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, 2017 and 2016, our outstanding Class B common stock was convertible into 2,709,194 and 2,716,320 shares of our Common stock, respectively.