Watsco (WSO) 10-Q 1 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 28, 2014	Jul. 28, 2014
		Common Stock	Class B Common Stock
Document Information [Line Items]	'	'	'
Document Type	'10-Q	'	'
Amendment Flag	'false	'	'
Document Period End Date	30-Jun-14	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'
Trading Symbol	'WSO	'	'
Entity Registrant Name	'WATSCO INC	'	'
Entity Central Index Key	'0000105016	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Filer Category	'Large Accelerated Filer	'	'
Entity Common Stock, Shares Outstanding	'	30,081,891	4,877,571

Condensed_Consolidated_Unaudit

Condensed Consolidated Unaudited Statements of Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	$1,170,186	$1,120,452	$1,932,754	$1,834,085
Cost of sales	890,913	853,772	1,465,412	1,391,959
Gross profit	279,273	266,680	467,342	442,126
Selling, general and administrative expenses	166,293	161,595	318,809	306,487
Operating income	112,980	105,085	148,533	135,639
Interest expense, net	1,247	1,688	2,256	2,870
Income before income taxes	111,733	103,397	146,277	132,769
Income taxes	33,348	30,815	43,489	39,098
Net income	78,385	72,582	102,788	93,671
Less: net income attributable to noncontrolling interest	22,284	21,264	29,934	28,968
Net income attributable to Watsco, Inc.	$56,101	$51,318	$72,854	$64,703
Earnings per share for Common and Class B common stock:	'	'	'	'
Basic	$1.60	$1.48	$2.09	$1.87
Diluted	$1.60	$1.48	$2.08	$1.87

Condensed_Consolidated_Unaudit1

Condensed Consolidated Unaudited Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income	$78,385	$72,582	$102,788	$93,671
Other comprehensive income (loss), net of tax	'	'	'	'
Foreign currency translation adjustment	8,562	-8,377	-652	-13,440
Unrealized loss on available-for-sale securities arising during the period	-9	-11	-8	-3
Other comprehensive income (loss)	8,553	-8,388	-660	-13,443
Comprehensive income	86,938	64,194	102,128	80,228
Less: comprehensive income attributable to noncontrolling interest	25,817	17,678	29,627	23,204
Comprehensive income attributable to Watsco, Inc.	$61,121	$46,516	$72,501	$57,024

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$16,865	$19,478
Accounts receivable, net	549,901	399,565
Inventories	759,973	583,154
Other current assets	19,479	18,905
Total current assets	1,346,218	1,021,102
Property and equipment, net	45,139	45,418
Goodwill	392,354	392,610
Intangible assets, net	200,499	203,843
Other assets	6,629	6,558
Assets, Total	1,990,839	1,669,531
Current liabilities:	'	'
Current portion of other long-term obligations	165	107
Accounts payable	269,024	141,104
Accrued expenses and other current liabilities	116,463	102,295
Total current liabilities	385,652	243,506
Long-term obligations:	'	'
Borrowings under revolving credit agreement	348,787	230,044
Other long-term obligations, net of current portion	773	513
Total long-term obligations	349,560	230,557
Deferred income taxes and other liabilities	70,093	68,076
Commitments and contingencies	'	'
Watsco, Inc. shareholders' equity:	'	'
Common stock, $0.50 par value	18,200	18,182
Preferred stock, $0.50 par value	0	0
Paid-in capital	616,011	606,384
Accumulated other comprehensive loss, net of tax	-11,827	-11,474
Retained earnings	384,307	339,362
Treasury stock, at cost	-114,425	-114,425
Total Watsco, Inc. shareholders' equity	894,728	840,396
Noncontrolling interest	290,806	286,996
Total shareholders' equity	1,185,534	1,127,392
Total liabilities and shareholders' equity	1,990,839	1,669,531
Class B Common Stock	'	'
Watsco, Inc. shareholders' equity:	'	'
Common stock, $0.50 par value	$2,462	$2,367

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Common stock, par value	$0.50	$0.50
Preferred stock, par value	$0.50	$0.50
Class B Common Stock	'	'
Common stock, par value	$0.50	$0.50

Condensed_Consolidated_Unaudit2

Condensed Consolidated Unaudited Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net income	$102,788	$93,671
Adjustments to reconcile net income to net cash used in operating activities:	'	'
Depreciation and amortization	8,847	8,720
Share-based compensation	5,179	4,274
Non-cash contribution to 401(k) plan	1,759	1,689
Provision for doubtful accounts	416	186
Excess tax benefits from share-based compensation	-1,443	-116
Other, net	2,394	2,864
Changes in operating assets and liabilities:	'	'
Accounts receivable	-150,758	-150,636
Inventories	-176,584	-148,858
Accounts payable and other liabilities	142,552	110,843
Other, net	-308	456
Net cash used in operating activities	-65,158	-76,907
Cash flows from investing activities:	'	'
Capital expenditures	-5,846	-6,964
Proceeds from sale of property and equipment	276	161
Net cash used in investing activities	-5,570	-6,803
Cash flows from financing activities:	'	'
Net proceeds under revolving credit agreement	118,767	84,254
Net proceeds from issuances of common stock	1,732	676
Excess tax benefits from share-based compensation	1,443	116
Net proceeds from (repayments of) other long-term obligations	318	-2
Payment of fees related to revolving credit agreement	-345	'
Distributions to noncontrolling interest	-25,817	-31,489
Dividends on Common and Class B common stock	-27,909	-17,298
Net cash provided by financing activities	68,189	36,257
Effect of foreign exchange rate changes on cash and cash equivalents	-74	-786
Net decrease in cash and cash equivalents	-2,613	-48,239
Cash and cash equivalents at beginning of period	19,478	73,770
Cash and cash equivalents at end of period	$16,865	$25,531

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
BASIS OF PRESENTATION	'
	1	BASIS OF PRESENTATION
	Basis of Consolidation
	Watsco, Inc. and its subsidiaries (collectively, “Watsco,” which may be referred to as “we”, “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry. The accompanying June 30, 2014 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2013 Annual Report on Form 10-K.
	The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation.
	The results of operations for the quarter and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns during summer and winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is fairly consistent during the year, subject to weather and economic conditions, including their effect on the number of housing completions.
	Use of Estimates
	The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
	New Accounting Standards
	Presentation of Unrecognized Tax Benefits
	In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance that requires the presentation of an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward rather than as a liability when the uncertain tax position would reduce the net operating loss under the tax law of the applicable jurisdiction and the entity intends to use the deferred tax asset for that purpose. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of this guidance did not have an impact on our condensed consolidated unaudited financial statements.
	Revenue Recognition
	In May 2014, the FASB issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. The core principle is that a company will recognize revenue to reflect the transfer of goods or services to customers at an amount that the company expects to be entitled to in exchange for those goods or services. This standard is effective for our interim and annual reporting periods beginning after December 15, 2016 and allows for either full retrospective adoption or modified retrospective adoption. We will adopt this guidance on January 1, 2017, and are currently evaluating the impact on our condensed consolidated unaudited financial statements.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2014
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				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Basic Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	56,101	$	51,318	$	72,854	$	64,703
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		4,286		3,629		5,532		4,566
	Earnings allocated to Watsco, Inc. shareholders	$	51,815	$	47,689	$	67,322	$	60,137
	Weighted-average common shares outstanding - Basic		32,295,912		32,182,576		32,273,077		32,170,222
	Basic earnings per share for Common and Class B common stock	$	1.6	$	1.48	$	2.09	$	1.87
	Allocation of earnings for Basic:
	Common stock	$	47,467	$	43,681	$	61,668	$	55,081
	Class B common stock		4,348		4,008		5,654		5,056
		$	51,815	$	47,689	$	67,322	$	60,137
	Diluted Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	56,101	$	51,318	$	72,854	$	64,703
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		4,281		3,623		5,526		4,560
	Earnings allocated to Watsco, Inc. shareholders	$	51,820	$	47,695	$	67,328	$	60,143
	Weighted-average common shares outstanding - Basic		32,295,912		32,182,576		32,273,077		32,170,222
	Effect of dilutive stock options		57,133		66,279		56,299		61,024
	Weighted-average common shares outstanding - Diluted		32,353,045		32,248,855		32,329,376		32,231,246
	Diluted earnings per share for Common and Class B common stock	$	1.6	$	1.48	$	2.08	$	1.87
	Anti-dilutive stock options not included above		—		—		2,873		—
	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 June 30, 2014 and 2013, our outstanding Class B common stock was convertible into 2,710,315 and 2,704,858 shares of our Common stock, respectively.

OTHER_COMPREHENSIVE_INCOME_LOS

OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2014
OTHER COMPREHENSIVE INCOME (LOSS)	'
	3	OTHER COMPREHENSIVE INCOME (LOSS)
	Other comprehensive income (loss) consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as their functional currency and changes in the unrealized loss on available-for-sale securities. The tax effects allocated to each component of other comprehensive income (loss) were as follows:
		Quarter Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Foreign currency translation adjustment	$	8,562		$	(8,377	)	$	(652	)	$	(13,440	)
	Unrealized loss on available-for-sale securities	$	(14	)	$	(17	)	$	(12	)	$	(3	)
	Income tax benefit		(5	)		(6	)		(4	)		—
	Unrealized loss on available-for-sale securities, net of tax	$	(9	)	$	(11	)	$	(8	)	$	(3	)
	Other comprehensive income (loss)	$	8,553		$	(8,388	)	$	(660	)	$	(13,443	)
	The changes in accumulated other comprehensive loss, net of tax, are as follows:
	Six Months Ended June 30,	2014			2013
	Foreign currency translation adjustment:
	Beginning balance	$	(11,181	)	$	(1,785	)
	Current period other comprehensive loss		(345	)		(7,676	)
	Ending balance	$	(11,526	)	$	(9,461	)
	Available-for-sale securities:
	Beginning balance	$	(293	)	$	(317	)
	Current period other comprehensive loss		(8	)		(3	)
	Ending balance	$	(301	)	$	(320	)
	Accumulated other comprehensive loss, net of tax	$	(11,827	)	$	(9,781	)

DERIVATIVE_FINANCIAL_INSTRUMEN

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2014
DERIVATIVE FINANCIAL INSTRUMENTS	'
	4	DERIVATIVE FINANCIAL INSTRUMENTS
	We routinely use certain derivative instruments to hedge foreign currency exposure. Although these derivatives were not designated as hedges and/or did not qualify for hedge accounting, they were effective economic hedges for the periods presented. The changes in fair values of economic hedges are recognized in earnings. During 2014 and 2013, we entered into foreign currency forward contracts to offset the earnings impact that foreign currency exchange rate fluctuations would otherwise have had on certain monetary liabilities denominated in nonfunctional currencies. The changes in fair values of foreign currency forward contracts were (losses) gains of $(1,631) and $1,507 for the quarters ended June 30, 2014 and 2013, respectively. The changes in fair values of foreign currency forward contracts were (losses) gains of $(1,555) and $1,528 for the six months ended June 30, 2014 and 2013, respectively. These amounts are included in selling, general and administrative expenses in our condensed consolidated unaudited statements of income. The total notional value of our foreign currency exchange contracts as of June 30, 2014 was $59,500, and such contracts have varying terms expiring through October 2014. See Note 5.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS	'
	5	FAIR VALUE MEASUREMENTS
	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis:
					Fair Value Measurements
					at June 30, 2014 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	253	$	253		—		—
	Liabilities:
	Derivative financial instruments	Accrued expenses and other current liabilities	$	1,437		—	$	1,437		—
					Fair Value Measurements
					at December 31, 2013 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	265	$	265		—		—
	Derivative financial instruments	Other current assets	$	118		—	$	118		—
	The following is a description of the valuation techniques used for these assets and liabilities, as well as the level of input used to measure fair value:
	Available-for-sale securities – the investments are exchange-traded equity securities. Fair values for these investments are based on closing stock prices from active markets and are therefore classified within Level 1 of the fair value hierarchy.
	Derivative financial instruments – the derivatives are foreign currency forward contracts. Fair value is based on observable market inputs, such as forward rates in active markets; therefore, we classify the derivatives within Level 2 of the valuation hierarchy.
	There were no transfers in or out of Level 1 and Level 2 during the six months ended June 30, 2014.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2014
DEBT	'
	6	DEBT
	On June 25, 2014, we entered into an amendment to our unsecured, syndicated revolving credit agreement, which increased the borrowing capacity from $500,000 to $600,000, extended the maturity date from July 1, 2018 to July 1, 2019, increased the swingline subfacility from $65,000 to $90,000 and modified certain definitions. At June 30, 2014 and December 31, 2013, $348,787 and $230,044 was outstanding under the revolving credit agreement, respectively. The revolving credit agreement contains customary affirmative and negative covenants, including financial covenants with respect to consolidated leverage and interest coverage ratios, and other customary restrictions. We believe we were in compliance with all covenants at June 30, 2014.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2014
SHAREHOLDERS' EQUITY	'
	7	SHAREHOLDERS’ EQUITY
	Common Stock Dividends
	We paid cash dividends of $0.40, $0.25, $0.80 and $0.50 per share of Common stock and Class B common stock during the quarters and six months ended June 30, 2014 and 2013, respectively.
	Non-Vested (Restricted) Stock
	During the quarter ended June 30, 2014, we granted 20,000 shares of non-vested (restricted) stock. We did not grant any shares of non-vested (restricted) stock during the quarter ended June 30, 2013. During the six months ended June 30, 2014 and 2013, we granted 203,025 and 87,543 shares of non-vested (restricted) stock, respectively.
	During the quarter and six months ended June 30, 2014, 21,028 shares of Common stock with an aggregate fair market value of $2,125 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested (restricted) stock. These shares were retired upon delivery.
	Exercise of Stock Options
	During the quarters ended June 30, 2014 and 2013, 11,250 and 2,500 stock options, respectively, were exercised for common stock. During the six months ended June 30, 2014 and 2013, 23,500 and 9,500 stock options, respectively, were exercised for common stock. Cash received from common stock issued as a result of stock options exercised during the quarters and six months ended June 30, 2014 and 2013, was $646, $39, $1,329 and $377, respectively.
	Employee Stock Purchase Plan
	During the quarters ended June 30, 2014 and 2013, 2,181 and 1,744, shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $213 and $140, respectively. During the six months ended June 30, 2014 and 2013, 4,243 and 3,926 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $403 and $299, respectively.
	401(k) Plan
	During the six months ended June 30, 2014 and 2013, we issued 18,309 and 22,551 shares of Common stock, respectively, to our profit sharing retirement plan, representing the Common stock discretionary matching contribution of $1,759 and $1,689, respectively.
	Noncontrolling Interest
	Of our three joint ventures with Carrier, we have a 70% controlling interest in one and a 60% controlling interest in the other two, while Carrier has either a 30% or 40% noncontrolling interest in such joint ventures, as applicable. The following table reconciles shareholders’ equity attributable to Carrier’s noncontrolling interest:
	Noncontrolling interest at December 31, 2013	$	286,996
	Net income attributable to noncontrolling interest		29,934
	Distributions to noncontrolling interest		(25,817	)
	Foreign currency translation adjustment		(307	)
	Noncontrolling interest at June 30, 2014	$	290,806

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES	'
	8	COMMITMENTS AND CONTINGENCIES
	Litigation, Claims and Assessments
	We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations.
	Self-Insurance
	Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $5,247 and $5,582 at June 30, 2014 and December 31, 2013, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
RELATED PARTY TRANSACTIONS	'
	9	RELATED PARTY TRANSACTIONS
	Purchases from Carrier and its affiliates comprised 59% and 57% of all inventory purchases for the quarters ended June 30, 2014 and 2013, respectively. Purchases from Carrier and its affiliates comprised 60% and 56% of all inventory purchases for the six months ended June 30, 2014 and 2013, respectively. At June 30, 2014 and December 31, 2013, approximately $108,000 and $53,000, respectively, was payable to Carrier and its affiliates, net of receivables. Our joint ventures with Carrier also sell HVAC products to Carrier and its affiliates. Revenues in our condensed consolidated unaudited statements of income for the quarters and six months ended June 30, 2014 and 2013 included $11,128, $8,693, $17,663 and $13,988, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted at arm’s-length in the ordinary course of business.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2014
SUBSEQUENT EVENT	'
	10	SUBSEQUENT EVENT
	On July 1, 2014, we exercised our second option to acquire an additional 10% ownership interest in Carrier Enterprise I, following which we have an 80% controlling interest in Carrier Enterprise I. We paid the estimated purchase price of $90,458 for the exercise of the option in cash, and such amount is subject to adjustment during the 60 days immediately following the date of exercise. Neither we nor Carrier has any remaining options to purchase additional ownership interests in Carrier Enterprise I, or any of our other joint ventures with Carrier.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2014
Basis of Consolidation	'
	Basis of Consolidation
	Watsco, Inc. and its subsidiaries (collectively, “Watsco,” which may be referred to as “we”, “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry. The accompanying June 30, 2014 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2013 Annual Report on Form 10-K.
	The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation.
	The results of operations for the quarter and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns during summer and winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is fairly consistent during the year, subject to weather and economic conditions, including their effect on the number of housing completions.
Use of Estimates	'
	Use of Estimates
	The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
New Accounting Standards	'
	New Accounting Standards
	Presentation of Unrecognized Tax Benefits
	In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance that requires the presentation of an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward rather than as a liability when the uncertain tax position would reduce the net operating loss under the tax law of the applicable jurisdiction and the entity intends to use the deferred tax asset for that purpose. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2013. The adoption of this guidance did not have an impact on our condensed consolidated unaudited financial statements.
	Revenue Recognition
	In May 2014, the FASB issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. The core principle is that a company will recognize revenue to reflect the transfer of goods or services to customers at an amount that the company expects to be entitled to in exchange for those goods or services. This standard is effective for our interim and annual reporting periods beginning after December 15, 2016 and allows for either full retrospective adoption or modified retrospective adoption. We will adopt this guidance on January 1, 2017, and are currently evaluating the impact on our condensed consolidated unaudited financial statements.

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2014
Schedule of Basic and Diluted Earnings Per Common 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				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
	Basic Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	56,101	$	51,318	$	72,854	$	64,703
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		4,286		3,629		5,532		4,566
	Earnings allocated to Watsco, Inc. shareholders	$	51,815	$	47,689	$	67,322	$	60,137
	Weighted-average common shares outstanding - Basic		32,295,912		32,182,576		32,273,077		32,170,222
	Basic earnings per share for Common and Class B common stock	$	1.6	$	1.48	$	2.09	$	1.87
	Allocation of earnings for Basic:
	Common stock	$	47,467	$	43,681	$	61,668	$	55,081
	Class B common stock		4,348		4,008		5,654		5,056
		$	51,815	$	47,689	$	67,322	$	60,137
	Diluted Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	56,101	$	51,318	$	72,854	$	64,703
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		4,281		3,623		5,526		4,560
	Earnings allocated to Watsco, Inc. shareholders	$	51,820	$	47,695	$	67,328	$	60,143
	Weighted-average common shares outstanding - Basic		32,295,912		32,182,576		32,273,077		32,170,222
	Effect of dilutive stock options		57,133		66,279		56,299		61,024
	Weighted-average common shares outstanding - Diluted		32,353,045		32,248,855		32,329,376		32,231,246
	Diluted earnings per share for Common and Class B common stock	$	1.6	$	1.48	$	2.08	$	1.87
	Anti-dilutive stock options not included above		—		—		2,873		—

OTHER_COMPREHENSIVE_INCOME_LOS1

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2014
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)	'
	The tax effects allocated to each component of other comprehensive income (loss) were as follows:
		Quarter Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Foreign currency translation adjustment	$	8,562		$	(8,377	)	$	(652	)	$	(13,440	)
	Unrealized loss on available-for-sale securities	$	(14	)	$	(17	)	$	(12	)	$	(3	)
	Income tax benefit		(5	)		(6	)		(4	)		—
	Unrealized loss on available-for-sale securities, net of tax	$	(9	)	$	(11	)	$	(8	)	$	(3	)
	Other comprehensive income (loss)	$	8,553		$	(8,388	)	$	(660	)	$	(13,443	)
Schedule of Accumulated Other Comprehensive Loss	'
	The changes in accumulated other comprehensive loss, net of tax, are as follows:
	Six Months Ended June 30,	2014			2013
	Foreign currency translation adjustment:
	Beginning balance	$	(11,181	)	$	(1,785	)
	Current period other comprehensive loss		(345	)		(7,676	)
	Ending balance	$	(11,526	)	$	(9,461	)
	Available-for-sale securities:
	Beginning balance	$	(293	)	$	(317	)
	Current period other comprehensive loss		(8	)		(3	)
	Ending balance	$	(301	)	$	(320	)
	Accumulated other comprehensive loss, net of tax	$	(11,827	)	$	(9,781	)

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
Assets and Liabilities Measured at Fair Value on Recurring Basis	'
	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis:
					Fair Value Measurements
					at June 30, 2014 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	253	$	253		—		—
	Liabilities:
	Derivative financial instruments	Accrued expenses and other current liabilities	$	1,437		—	$	1,437		—
					Fair Value Measurements
					at December 31, 2013 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	265	$	265		—		—
	Derivative financial instruments	Other current assets	$	118		—	$	118		—

SHAREHOLDERS_EQUITY_Tables

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2014
Schedule of Rollforward of Noncontrolling Interest Balance	'
	The following table reconciles shareholders’ equity attributable to Carrier’s noncontrolling interest:
	Noncontrolling interest at December 31, 2013	$	286,996
	Net income attributable to noncontrolling interest		29,934
	Distributions to noncontrolling interest		(25,817	)
	Foreign currency translation adjustment		(307	)
	Noncontrolling interest at June 30, 2014	$	290,806

Basis_of_Presentation_Addition

Basis of Presentation - Additional Information (Detail)	Jun. 30, 2014
	Entity
Significant Accounting Policies [Line Items]	'
Number of joint ventures	3

Schedule_of_Basic_and_Diluted_

Schedule of Basic and Diluted Earnings per Common Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]	'	'	'	'
Net income attributable to Watsco, Inc. shareholders	$56,101	$51,318	$72,854	$64,703
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock	4,286	3,629	5,532	4,566
Earnings allocated to Watsco, Inc. shareholders - basic	51,815	47,689	67,322	60,137
Weighted-average common shares outstanding - Basic	32,295,912	32,182,576	32,273,077	32,170,222
Basic earnings per share for Common and Class B common stock	$1.60	$1.48	$2.09	$1.87
Net income attributable to Watsco, Inc. shareholders	56,101	51,318	72,854	64,703
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock	4,281	3,623	5,526	4,560
Earnings allocated to Watsco, Inc. shareholders - diluted	51,820	47,695	67,328	60,143
Weighted-average common shares outstanding - Basic	32,295,912	32,182,576	32,273,077	32,170,222
Effect of dilutive stock options	57,133	66,279	56,299	61,024
Weighted-average common shares outstanding - Diluted	32,353,045	32,248,855	32,329,376	32,231,246
Diluted earnings per share for Common and Class B common stock	$1.60	$1.48	$2.08	$1.87
Anti-dilutive stock options not included above	'	'	2,873	'
Common Stock	'	'	'	'
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]	'	'	'	'
Earnings allocated to Watsco, Inc. shareholders - basic	47,467	43,681	61,668	55,081
Class B Common Stock	'	'	'	'
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]	'	'	'	'
Earnings allocated to Watsco, Inc. shareholders - basic	$4,348	$4,008	$5,654	$5,056

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Line Items]	'	'
Convertible Class B common stock outstanding	2,710,315	2,704,858

Schedule_of_Tax_Effects_Alloca

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Components Of Other Comprehensive Income Loss [Line Items]	'	'	'	'
Foreign currency translation adjustment	$8,562	($8,377)	($652)	($13,440)
Unrealized loss on available-for-sale securities	-14	-17	-12	-3
Income tax benefit	-5	-6	-4	'
Unrealized loss on available-for-sale securities, net of tax	-9	-11	-8	-3
Other comprehensive income (loss)	$8,553	($8,388)	($660)	($13,443)

Schedule_of_Accumulated_Other_

Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]	'	'	'	'	'
Beginning balance, Foreign currency translation adjustment	'	'	($11,181)	($1,785)	'
Current period other comprehensive loss	'	'	-345	-7,676	'
Ending balance, Foreign currency translation adjustment	-11,526	-9,461	-11,526	-9,461	'
Beginning balance, Available-for-sale securities	'	'	-293	-317	'
Current period other comprehensive loss	-9	-11	-8	-3	'
Ending balance, Available-for-sale securities	-301	-320	-301	-320	'
Accumulated other comprehensive loss, net of tax	($11,827)	($9,781)	($11,827)	($9,781)	($11,474)

Recovered_Sheet1

Derivative Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument, USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Foreign Exchange Forward | Not Designated as Hedging Instrument	'	'	'	'
Derivative Instruments and Hedging Activities Disclosures [Line Items]	'	'	'	'
Changes in fair values of foreign currency forward contracts	($1,631)	$1,507	($1,555)	$1,528
Notional value of derivatives	$59,500	'	$59,500	'
Contract expiring terms	'	'	'2014-10	'

Assets_and_Liabilities_Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Other assets	'	'
Assets:	'	'
Available-for-sale securities	$253	$265
Accrued expenses and other current liabilities	'	'
Liabilities:	'	'
Derivative financial instruments	1,437	'
Other Current Assets	'	'
Assets:	'	'
Derivative financial instruments	'	118
Fair Value Measurements, Level 1 | Other assets	'	'
Assets:	'	'
Available-for-sale securities	253	265
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities	'	'
Liabilities:	'	'
Derivative financial instruments	1,437	'
Fair Value Measurements, Level 2 | Other Current Assets	'	'
Assets:	'	'
Derivative financial instruments	'	$118

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 25, 2014	Jun. 25, 2014	Jun. 25, 2014	Jun. 25, 2014	Jun. 25, 2014	Jun. 25, 2014
In Thousands, unless otherwise specified			Before Extension	Before Extension	Before Extension	After Extension	After Extension	After Extension
					Swingline Subfacility			Swingline Subfacility
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'
Revolving credit agreement maximum borrowing capacity	'	'	'	$500,000	$65,000	'	$600,000	$90,000
Revolving credit agreement maturity date	'	'	1-Jul-18	'	'	1-Jul-19	'	'
Outstanding amount under revolving credit agreement	$348,787	$230,044	'	'	'	'	'	'

Shareholders_Equity_Additional

Shareholders Equity - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stockholders Equity Note [Line Items]	'	'	'	'
Cash dividends paid per share of Common and Class B common stock	$0.40	$0.25	$0.80	$0.50
Shares of non-vested restricted stock granted	20,000	0	203,025	87,543
Common stock issued under employee stock purchase plan, shares	2,181	1,744	4,243	3,926
Common stock issued under employee stock purchase plan, net proceeds	$213	$140	$403	$299
Non-cash contribution to 401(k) plan	'	'	1,759	1,689
401(k) Plan	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Non-cash contribution to 401(k) plan, shares	'	'	18,309	22,551
Non-cash contribution to 401(k) plan	'	'	1,759	1,689
Carrier Enterprise I	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Controlling interest, ownership percentage	70.00%	'	70.00%	'
Noncontrolling interest, ownership percentage	30.00%	'	30.00%	'
Carrier Enterprise II	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Controlling interest, ownership percentage	60.00%	'	60.00%	'
Noncontrolling interest, ownership percentage	40.00%	'	40.00%	'
Carrier Enterprise III	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Controlling interest, ownership percentage	60.00%	'	60.00%	'
Noncontrolling interest, ownership percentage	40.00%	'	40.00%	'
Common Stock	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Stock options exercised, shares	11,250	2,500	23,500	9,500
Stock options exercised, value	646	39	1,329	377
Common Stock | Non-Vested (Restricted) Stock	'	'	'	'
Stockholders Equity Note [Line Items]	'	'	'	'
Shares withheld as payment for tax withholding related to share based compensation, shares	21,028	'	21,028	'
Shares withheld as payment for tax withholding related to share based compensation, market value	$2,125	'	$2,125	'

Schedule_of_Rollforward_of_Non

Schedule of Rollforward of Noncontrolling Interest Balance (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Noncontrolling Interest [Line Items]	'	'	'	'
Noncontrolling interest beginning balance	'	'	$286,996	'
Net income attributable to noncontrolling interest	22,284	21,264	29,934	28,968
Distributions to noncontrolling interest	'	'	-25,817	'
Foreign currency translation adjustment	'	'	-307	'
Noncontrolling interest ending balance	$290,806	'	$290,806	'

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Line Items]	'	'
Self-insurance reserves	$5,247	$5,582

Related_Party_Transactions_Add

Related Party Transactions - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
					Carrier and Its Affiliates	Carrier and Its Affiliates
Related Party Transaction [Line Items]	'	'	'	'	'	'
Percentage of inventory purchases from Carrier and its affiliates	59.00%	57.00%	60.00%	56.00%	'	'
Amount payable to Carrier and its affiliates, net of receivables	'	'	'	'	$108,000	$53,000
Revenues from sales to Carrier and its affiliates	$11,128	$8,693	$17,663	$13,988	'	'

Subsequent_Event_Additional_In

Subsequent Event - Additional Information (Detail) (Carrier Enterprise I, USD $)	Jun. 30, 2014	Jul. 01, 2014	Jul. 01, 2014
In Thousands, unless otherwise specified		Subsequent Event	Subsequent Event
Subsequent Event [Line Items]	'	'	'
Option to purchase additional interest, percentage	'	'	10.00%
Option to purchase additional interest, date	'	'2014-07-01	'
Controlling interest, ownership percentage	70.00%	'	80.00%
Cash consideration	'	$90,458	'
Purchase price adjustment period	'	'60 days	'