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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	79,163	$	65,029	$	203,339	$	164,966
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		6,451		5,470		16,600		13,844

Earnings allocated to Watsco, Inc. shareholders	$	72,712	$	59,559	$	186,739	$	151,122

Weighted-average common shares outstanding - Basic		34,339,859		32,712,151		34,301,672		32,679,334
Basic earnings per share for Common and Class B common stock	$	2.12	$	1.82	$	5.44	$	4.62
Allocation of earnings for Basic:
Common stock	$	67,201	$	54,627	$	172,571	$	138,594
Class B common stock		5,511		4,932		14,168		12,528

	$	72,712	$	59,559	$	186,739	$	151,122

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	79,163	$	65,029	$	203,339	$	164,966
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		6,448		5,468		16,593		13,840

Earnings allocated to Watsco, Inc. shareholders	$	72,715	$	59,561	$	186,746	$	151,126

Weighted-average common shares outstanding - Basic		34,339,859		32,712,151		34,301,672		32,679,334
Effect of dilutive stock options		59,530		34,215		64,850		32,516

Weighted-average common shares outstanding - Diluted		34,399,389		32,746,366		34,366,522		32,711,850

Diluted earnings per share for Common and Class B common stock	$	2.11	$	1.82	$	5.43	$	4.62
Anti-dilutive stock options not included above		79,316		12,571		39,751		33,156

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, 2018 and 2017, our outstanding Class B common stock was convertible into 2,602,528 and 2,709,194 shares of our Common stock, respectively.