EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

4. EARNINGS PER SHARE

The following table presents the calculation of basic and diluted earnings per share for our common stock:


Years Ended December 31,	2024		2023		2022
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	536,286	$	536,337	$	601,167
Less: distributed and undistributed earnings allocated to restricted common stock		37,392		36,966		51,365

Earnings allocated to Watsco, Inc. shareholders	$	498,894	$	499,371	$	549,802

Weighted-average common shares outstanding - Basic		37,391,461		36,406,148		35,564,203

Basic earnings per share for common stock	$	13.34	$	13.72	$	15.46


Allocation of earnings for Basic:
Common stock	$	454,680	$	455,186	$	499,792
Class B common stock		44,214		44,185		50,010

	$	498,894	$	499,371	$	549,802

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	536,286	$	536,337	$	601,167
Less: distributed and undistributed earnings allocated to restricted common stock		37,369		36,932		51,294

Earnings allocated to Watsco, Inc. shareholders	$	498,917	$	499,405	$	549,873

Weighted-average common shares outstanding - Basic		37,391,461		36,406,148		35,564,203
Effect of dilutive stock options		118,871		125,535		119,431

Weighted-average common shares outstanding - Diluted		37,510,332		36,531,683		35,683,634

Diluted earnings per share for common stock	$	13.30	$	13.67	$	15.41

Diluted earnings per share for our Common stock assumes the conversion of all 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 December 31, 2024, 2023, and 2022, our outstanding Class B common stock was convertible into 3,313,787, 3,221,259, and 3,234,939 shares of our Common stock, respectively.

Diluted earnings per share excluded 30,154, 18,489, and 190,462 shares for the years ended December 31, 2024, 2023, and 2022, respectively, related to stock options with an exercise price per share greater than the average market value, resulting in an anti-dilutive effect on diluted earnings per share.