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:


	Quarter Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	89,957	$	73,756	$	124,176	$	99,937
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		7,379		6,189		10,147		8,376

Earnings allocated to Watsco, Inc. shareholders	$	82,578	$	67,567	$	114,029	$	91,561

Weighted-average common shares outstanding—Basic		34,309,885		32,682,474		34,282,261		32,662,653
Basic earnings per share for Common and Class B common stock	$	2.41	$	2.07	$	3.33	$	2.80
Allocation of earnings for Basic:
Common stock	$	76,321	$	61,966	$	105,383	$	83,966
Class B common stock		6,257		5,601		8,646		7,595

	$	82,578	$	67,567	$	114,029	$	91,561

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	89,957	$	73,756	$	124,176	$	99,937
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		7,374		6,186		10,144		8,374

Earnings allocated to Watsco, Inc. shareholders	$	82,583	$	67,570	$	114,032	$	91,563

Weighted-average common shares outstanding—Basic		34,309,885		32,682,474		34,282,261		32,662,653
Effect of dilutive stock options		69,310		26,172		67,554		31,653

Weighted-average common shares outstanding—Diluted		34,379,195		32,708,646		34,349,815		32,694,306

Diluted earnings per share for Common and Class B common stock	$	2.40	$	2.07	$	3.32	$	2.80
Anti-dilutive stock options not included above		40,797		63,467		24,044		27,787

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 June 30, 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.