EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

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:


Quarters Ended March 31,	2023		2022
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	110,073	$	113,298
Less: distributed and undistributed earnings allocated to restricted common stock		7,414		10,311

Earnings allocated to Watsco, Inc. shareholders	$	102,659	$	102,987


Weighted-average common shares outstanding – Basic		36,192,597		35,348,977
Basic earnings per share for Common and Class B common stock	$	2.84	$	2.91
Allocation of earnings for Basic:
Common stock	$	93,489	$	95,521
Class B common stock		9,170		7,466

	$	102,659	$	102,987

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	110,073	$	113,298
Less: distributed and undistributed earnings allocated to restricted common stock		7,411		10,297

Earnings allocated to Watsco, Inc. shareholders	$	102,662	$	103,001


Weighted-average common shares outstanding – Basic		36,192,597		35,348,977
Effect of dilutive stock options		109,231		155,403

Weighted-average common shares outstanding – Diluted		36,301,828		35,504,380

Diluted earnings per share for Common and Class B common stock	$	2.83	$	2.90

Anti-dilutive stock options not included above		169,916		143,372

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, 2023 and 2022, our outstanding Class B common stock was convertible into 3,232,844, and 2,562,448 shares of our Common stock, respectively.