3.	EARNINGS PER SHARE

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


*Quarters Ended March 31,*	2018		2017
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	34,219	$	26,181
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		3,775		3,120

Earnings allocated to Watsco, Inc. shareholders	$	30,444	$	23,061

Weighted-average common shares outstanding – Basic		34,254,331		32,642,612
Basic earnings per share for Common and Class B common stock	$	0.89	$	0.71
Allocation of earnings for Basic:
Common stock	$	28,134	$	21,147
Class B common stock		2,310		1,914

	$	30,444	$	23,061

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	34,219	$	26,181
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		3,775		3,120

Earnings allocated to Watsco, Inc. shareholders	$	30,444	$	23,061

Weighted-average common shares outstanding – Basic		34,254,331		32,642,612
Effect of dilutive stock options		65,779		37,194

Weighted-average common shares outstanding – Diluted		34,320,110		32,679,806

Diluted earnings per share for Common and Class B common stock	$	0.89	$	0.71

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 March 31, 2018 and 2017, our outstanding Class B common stock was convertible into 2,599,496 and 2,709,311 shares of our Common stock, respectively.

Diluted earnings per share excluded 9,228 and 16,067 shares for the quarters ended March 31, 2018 and 2017, 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.