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EARNINGS PER SHARE
 9 Months Ended
Sep. 30, 2023
EARNINGS PER SHARE
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,
 
 
  
2023
 
  
2022
 
  
2023
 
  
2022
 
Basic Earnings per Share:
  
  
  
  
Net income attributable to Watsco, Inc. shareholders
   
$
170,953
 
    $ 157,641     
$
453,790
 
    $ 463,496  
Less: distributed and undistributed earnings allocated to
restricted common stock
   
 
11,921
 
      14,387     
 
31,248
 
      42,293  
    
 
 
     
 
 
     
 
 
     
 
 
  
Earnings allocated to Watsco, Inc. shareholders
   
$
159,032
 
    $ 143,254     
$
422,542
 
    $ 421,203  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding—Basic
   
 
36,446,825
 
      35,450,277     
 
36,315,680
 
      35,401,179  
Basic earnings per share for Common and Class B common
stock
   
$
4.36
 
    $ 4.04     
$
11.64
 
    $ 11.90  
Allocation of earnings for Basic:
                                    
Common stock
   
$
144,942
      $ 132,846     
$
384,970
      $ 390,557  
Class B common stock
     
14,090
        10,408       
37,572
        30,646  
    
 
 
     
 
 
     
 
 
     
 
 
  
    
$
159,032
 
    $ 143,254     
$
422,542
 
    $ 421,203  
    
 
 
     
 
 
     
 
 
     
 
 
  
Diluted Earnings per Share:
                                    
Net income attributable to Watsco, Inc. shareholders
   
$
170,953
 
    $ 157,641     
$
453,790
 
    $ 463,496  
Less: distributed and undistributed earnings allocated to
restricted common stock
   
 
11,903
 
      14,368     
 
31,211
 
      42,228  
    
 
 
     
 
 
     
 
 
     
 
 
  
Earnings allocated to Watsco, Inc. shareholders
   
$
159,050
 
    $ 143,273     
$
422,579
 
    $ 421,268  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding—Basic
   
 
36,446,825
 
      35,450,277     
 
36,315,680
 
      35,401,179  
Effect of dilutive stock options
   
 
132,583
 
      112,008     
 
122,395
 
      128,309  
    
 
 
     
 
 
     
 
 
     
 
 
  
Weighted-average common shares outstanding—Diluted
   
 
36,579,408
 
      35,562,285     
 
36,438,075
 
      35,529,488  
    
 
 
     
 
 
     
 
 
     
 
 
  
Diluted earnings per share for Common and Class B common
stock
   
$
4.35
 
    $ 4.03     
$
11.60
 
   
$
11.86
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anti-dilutive stock options not included above
   
 
24,988
 
      208,610     
 
37,533
 
     
181,115
  
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, 2023 and 2022,
our
outstanding Class B common stock was convertible into 3,229,118 and 2,575,725 shares of our Common stock, respectively.