EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2021

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,
	2021		2020		2021		2020
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	140,865	$	106,489	$	340,059	$	223,569
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		12,590		9,146		30,182		19,178

Earnings allocated to Watsco, Inc. shareholders	$	128,275	$	97,343	$	309,877	$	204,391


Weighted-average common shares outstanding - Basic		35,260,126		35,099,871		35,222,865		35,046,156
Basic earnings per share for Common and Class B common stock	$	3.64	$	2.77	$	8.80	$	5.83
Allocation of earnings for Basic:
Common stock	$	118,905	$	90,197	$	287,217	$	189,364
Class B common stock		9,370		7,146		22,660		15,027

	$	128,275	$	97,343	$	309,877	$	204,391

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	140,865	$	106,489	$	340,059	$	223,569
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		12,563		9,135		30,132		19,175

Earnings allocated to Watsco, Inc. shareholders	$	128,302	$	97,354	$	309,927	$	204,394


Weighted-average common shares outstanding - Basic		35,260,126		35,099,871		35,222,865		35,046,156
Effect of dilutive stock options		181,852		137,151		177,389		62,887

Weighted-average common shares outstanding - Diluted		35,441,978		35,237,022		35,400,254		35,109,043

Diluted earnings per share for Common and Class B common stock	$	3.62	$	2.76	$	8.75	$	5.82

Anti-dilutive stock options not included above		63,959		3,750		27,513		27,755

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, 2021 and 2020, our outstanding Class B common stock was convertible into 2,575,698 and 2,576,570 shares of our Common stock, respectively.