EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

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,
	2020		2019		2020		2019
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	106,489	$	83,480	$	223,569	$	208,672
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		9,146		6,973		19,178		17,326

Earnings allocated to Watsco, Inc. shareholders	$	97,343	$	76,507	$	204,391	$	191,346


Weighted-average common shares outstanding - Basic		35,099,871		34,755,627		35,046,156		34,544,425
Basic earnings per share for Common and Class B common stock	$	2.77	$	2.20	$	5.83	$	5.54
Allocation of earnings for Basic:
Common stock	$	90,197	$	70,836	$	189,364	$	177,075
Class B common stock		7,146		5,671		15,027		14,271

	$	97,343	$	76,507	$	204,391	$	191,346

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	106,489	$	83,480	$	223,569	$	208,672
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		9,135		6,971		19,175		17,325

Earnings allocated to Watsco, Inc. shareholders	$	97,354	$	76,509	$	204,394	$	191,347


Weighted-average common shares outstanding - Basic		35,099,871		34,755,627		35,046,156		34,544,425
Effect of dilutive stock options		137,151		33,328		62,887		25,294

Weighted-average common shares outstanding - Diluted		35,237,022		34,788,955		35,109,043		34,569,719

Diluted earnings per share for Common and Class B common stock	$	2.76	$	2.20	$	5.82	$	5.54

Anti-dilutive stock options not included above		3,750		183,083		27,755		220,013

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, 2020 and 2019, our outstanding Class B common stock was convertible into 2,576,570 and 2,576,336 shares of our Common stock, respectively.