Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

2. EARNINGS PER SHARE

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

	Quarter Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	45,699	$	41,005	$	110,402	$	88,575
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		3,251		2,822		7,813		6,119
Earnings allocated to Watsco, Inc. shareholders	$	42,448	$	38,183	$	102,589	$	82,456
Weighted-average Common and Class B common shares outstanding for basic earnings per share		32,206,448		32,107,701		32,182,430		31,529,296
Basic earnings per share for Common and Class B common stock	$	1.32	$	1.19	$	3.19	$	2.62
Allocation of earnings for Basic:
Common stock	$	38,880	$	34,789	$	93,960	$	74,992
Class B common stock		3,568		3,394		8,629		7,464
	$	42,448	$	38,183	$	102,589	$	82,456
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	45,699	$	41,005	$	110,402	$	88,575
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		3,246		2,820		7,801		6,115
Earnings allocated to Watsco, Inc. shareholders	$	42,453	$	38,185	$	102,601	$	82,460
Weighted-average Common and Class B common shares outstanding for basic earnings per share		32,206,448		32,107,701		32,182,430		31,529,296
Effect of dilutive stock options		69,665		60,465		63,936		68,242
Weighted-average Common and Class B common shares outstanding for diluted earnings per share		32,276,113		32,168,166		32,246,366		31,597,538
Diluted earnings per share for Common and Class B common stock	$	1.32	$	1.19	$	3.18	$	2.61
Anti-dilutive stock options not included in above		620		2,283		4,963		11,445

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 and adjusts for the dilutive effects of outstanding stock options using the treasury stock method; therefore, no allocation of earnings to Class B common stock is required. As of September 30, 2013 and 2012, our outstanding Class B common stock was convertible into 2,706,860 and 2,854,055 shares of our Common stock, respectively.