EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2019

4.	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,	2019		2018
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	35,037	$	34,219
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		4,924		3,775
Earnings allocated to Watsco, Inc. shareholders	$	30,113	$	30,444
Weighted-average common shares outstanding – Basic		34,388,117		34,254,331
Basic earnings per share for Common and Class B common stock	$	0.88	$	0.89
Allocation of earnings for Basic:
Common stock	$	27,856	$	28,134
Class B common stock		2,257		2,310
	$	30,113	$	30,444
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	35,037	$	34,219
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		4,924		3,775
Earnings allocated to Watsco, Inc. shareholders	$	30,113	$	30,444
Weighted-average common shares outstanding – Basic		34,388,117		34,254,331
Effect of dilutive stock options		14,485		65,779
Weighted-average common shares outstanding – Diluted		34,402,602		34,320,110
Diluted earnings per share for Common and Class B common stock	$	0.88	$	0.89
Anti-dilutive stock options not included above		322,584		9,228

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, 2019 and 2018, our outstanding Class B common stock was convertible into 2,820,291 and 2,599,496 shares of our Common stock, respectively.