EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

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,
	2022		2021		2022		2021
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	157,641	$	140,865	$	463,496	$	340,059
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		14,387		12,590		42,293		30,182

Earnings allocated to Watsco, Inc. shareholders	$	143,254	$	128,275	$	421,203	$	309,877


Weighted-average common shares outstanding - Basic		35,450,277		35,260,126		35,401,179		35,222,865
Basic earnings per share for Common and Class B common stock	$	4.04	$	3.64	$	11.90	$	8.80
Allocation of earnings for Basic:
Common stock	$	132,846	$	118,905	$	390,557	$	287,217
Class B common stock		10,408		9,370		30,646		22,660

	$	143,254	$	128,275	$	421,203	$	309,877

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	157,641	$	140,865	$	463,496	$	340,059
Less: distributed and undistributed earnings allocated to non-vested restricted common stock		14,368		12,563		42,228		30,132

Earnings allocated to Watsco, Inc. shareholders	$	143,273	$	128,302	$	421,268	$	309,927


Weighted-average common shares outstanding - Basic		35,450,277		35,260,126		35,401,179		35,222,865
Effect of dilutive stock options		112,008		181,852		128,309		177,389

Weighted-average common shares outstanding - Diluted		35,562,285		35,441,978		35,529,488		35,400,254


Diluted earnings per share for Common and Class B common stock	$	4.03	$	3.62	$	11.86	$	8.75

Anti-dilutive stock options not included above		208,610		63,959		181,115		27,513

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, 2022 and 2021, our outstanding Class B common stock was convertible into 2,575,725 and 2,575,698 shares of our Common stock, respectively.