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:


*Years Ended December 31,*	2017		2016		2015
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	208,221	$	182,810	$	172,929
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		17,430		14,806		13,634

Earnings allocated to Watsco, Inc. shareholders	$	190,791	$	168,004	$	159,295

Weighted-average common shares outstanding—Basic		32,824,947		32,582,385		32,435,961

Basic earnings per share for Common and Class B common stock	$	5.81	$	5.16	$	4.91

Allocation of earnings for Basic:
Common stock	$	175,667	$	154,021	$	146,037
Class B common stock		15,124		13,983		13,258

	$	190,791	$	168,004	$	159,295

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	208,221	$	182,810	$	172,929
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		17,427		14,801		13,626

Earnings allocated to Watsco, Inc. shareholders	$	190,794	$	168,009	$	159,303

Weighted-average common shares outstanding—Basic		32,824,947		32,582,385		32,435,961
Effect of dilutive stock options		37,686		34,119		44,395

Weighted-average common shares outstanding—Diluted		32,862,633		32,616,504		32,480,356

Diluted earnings per share for Common and Class B common stock	$	5.81	$	5.15	$	4.90

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 December 31, 2017, 2016 and 2015, our outstanding Class B common stock was convertible into 2,601,996, 2,711,811 and 2,699,710 shares of our Common stock, respectively.

Diluted earnings per share excluded 11,664, 31,839 and 67,014 shares for the years ended December 31, 2017, 2016 and 2015, respectively, related to stock options with an exercise price per share greater than the average market value, resulting in an anti-dilutive effect on diluted earnings per share.