Watsco (WSO) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	1-May-15
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	WSO
Entity Registrant Name	WATSCO INC
Entity Central Index Key	105016
Current Fiscal Year End Date	-19
Entity Filer Category	Large Accelerated Filer
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,214,199
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,987,332

Condensed_Consolidated_Unaudit

Condensed Consolidated Unaudited Statements of Income (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues	$808,972	$762,568
Cost of sales	604,747	574,499
Gross profit	204,225	188,069
Selling, general and administrative expenses	157,217	152,516
Operating income	47,008	35,553
Interest expense, net	1,377	1,009
Income before income taxes	45,631	34,544
Income taxes	14,331	10,141
Net income	31,300	24,403
Less: net income attributable to noncontrolling interest	8,252	7,650
Net income attributable to Watsco, Inc.	$23,048	$16,753
Earnings per share for Common and Class B common stock:
Basic	$0.65	$0.48
Diluted	$0.65	$0.48

Condensed_Consolidated_Unaudit1

Condensed Consolidated Unaudited Statements of Comprehensive Income (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net income	$31,300	$24,403
Other comprehensive loss, net of tax
Foreign currency translation adjustment	-19,875	-9,214
Unrealized gain on cash flow hedging instruments arising during the period	1,626
Reclassification of gain on cash flow hedging instruments into earnings	-137
Unrealized gain on available-for-sale securities arising during the period	7	1
Other comprehensive loss	-18,379	-9,213
Comprehensive income	12,921	15,190
Less: comprehensive income attributable to noncontrolling interest	816	3,810
Comprehensive income attributable to Watsco, Inc.	$12,105	$11,380

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$16,251	$24,447
Accounts receivable, net	436,456	434,234
Inventories	800,856	677,990
Other current assets	19,773	20,664
Total current assets	1,273,336	1,157,335
Property and equipment, net	53,115	53,480
Goodwill	382,534	387,311
Intangible assets, net	174,379	186,476
Other assets	6,141	6,465
Total assets	1,889,505	1,791,067
Current liabilities:
Current portion of other long-term obligations	172	169
Accounts payable	238,329	173,360
Accrued expenses and other current liabilities	117,640	113,493
Total current liabilities	356,141	287,022
Long-term obligations:
Borrowings under revolving credit agreement	340,653	303,199
Other long-term obligations, net of current portion	642	686
Total long-term obligations	341,295	303,885
Deferred income taxes and other liabilities	67,662	68,121
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,268	18,222
Preferred stock, $0.50 par value	0	0
Paid-in capital	588,092	580,564
Accumulated other comprehensive loss, net of tax	-34,690	-23,747
Retained earnings	419,403	420,879
Treasury stock, at cost	-114,425	-114,425
Total Watsco, Inc. shareholders' equity	879,166	883,960
Noncontrolling interest	245,241	248,079
Total shareholders' equity	1,124,407	1,132,039
Total liabilities and shareholders' equity	1,889,505	1,791,067
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$2,518	$2,467

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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 $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$31,300	$24,403
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,621	4,434
Share-based compensation	2,831	2,488
Non-cash contribution to 401(k) plan	1,963	1,759
Provision for doubtful accounts	1,288	927
Excess tax benefits from share-based compensation	-358	-131
Other, net	758	961
Changes in operating assets and liabilities:
Accounts receivable	-6,884	1,992
Inventories	-126,900	-126,316
Accounts payable and other liabilities	72,050	112,346
Other, net	2,548	2,038
Net cash (used in) provided by operating activities	-16,783	24,901
Cash flows from investing activities:
Capital expenditures	-3,114	-1,736
Proceeds from sale of property and equipment	71	70
Net cash used in investing activities	-3,043	-1,666
Cash flows from financing activities:
Net proceeds (repayments) under revolving credit agreement	38,497	-2,553
Net proceeds from issuances of common stock	1,381	873
Excess tax benefits from share-based compensation	358	131
Net repayments of other long-term obligations	-41	-26
Distributions to noncontrolling interest	-3,654	-7,614
Dividends on Common and Class B common stock	-24,524	-13,923
Net cash provided by (used in) financing activities	12,017	-23,112
Effect of foreign exchange rate changes on cash and cash equivalents	-387	-144
Net decrease in cash and cash equivalents	-8,196	-21
Cash and cash equivalents at beginning of period	24,447	19,478
Cash and cash equivalents at end of period	$16,251	$19,457

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
BASIS OF PRESENTATION	1	BASIS OF PRESENTATION
	Basis of Consolidation
	Watsco, Inc. and its subsidiaries (collectively, “Watsco,” or “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 in North America. The accompanying March 31, 2015 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 2014 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 ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. 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, primarily during the 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
	Revenue Recognition
	In May 2014, the Financial Accounting Standards Board (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, with no early adoption permitted. In April 2015, the FASB proposed a one-year delay in the effective date of this standard along with the option to adopt the standard as of the original effective date. We are currently evaluating the impact on our condensed consolidated unaudited financial statements.
	Debt Issuance Costs
	In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This guidance is to be applied retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated unaudited financial statements.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2015
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:
	Quarters Ended March 31,		2015		2014
	Basic Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders		$	23,048	$	16,753
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock			1,868		1,242
	Earnings allocated to Watsco, Inc. shareholders		$	21,180	$	15,511
	Weighted-average common shares outstanding – Basic			32,377,159		32,249,988
	Basic earnings per share for Common and Class B common stock		$	0.65	$	0.48
	Allocation of earnings for Basic:
	Common stock		$	19,409	$	14,211
	Class B common stock			1,771		1,300
			$	21,180	$	15,511
	Diluted Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders		$	23,048	$	16,753
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock			1,868		1,242
	Earnings allocated to Watsco, Inc. shareholders		$	21,180	$	15,511
	Weighted-average common shares outstanding – Basic			32,377,159		32,249,988
	Effect of dilutive stock options			53,918		55,457
	Weighted-average common shares outstanding – Diluted			32,431,077		32,305,445
	Diluted earnings per share for Common and Class B common stock		$	0.65	$	0.48
	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, 2015 and 2014, our outstanding Class B common stock was convertible into 2,707,625 and 2,702,815 shares of our Common stock, respectively.
	Diluted earnings per share excluded 13,767 and 500 shares for the quarters ended March 31, 2015 and 2014, respectively, related to stock options with an exercise price per share greater than the average market value of our common stock, resulting in an anti-dilutive effect on diluted earnings per share.

OTHER_COMPREHENSIVE_LOSS

OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 31, 2015
OTHER COMPREHENSIVE LOSS	3	OTHER COMPREHENSIVE LOSS
	Other comprehensive 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 gains on cash flow hedging instruments and available-for-sale securities. The tax effects allocated to each component of other comprehensive loss were as follows:
	Quarters Ended March 31,		2015			2014
	Foreign currency translation adjustment		$	(19,875	)	$	(9,214	)
	Unrealized gain on cash flow hedging instruments			2,227			—
	Income tax expense			(601	)		—
	Unrealized gain on cash flow hedging instruments, net of tax			1,626			—
	Reclassification of gain on cash flow hedging instruments into earnings			(188	)		—
	Income tax expense			51			—
	Reclassification of gain on cash flow hedging instruments into earnings, net of tax			(137	)		—
	Unrealized gain on available-for-sale securities			11			2
	Income tax expense			(4	)		(1	)
	Unrealized gain on available-for-sale securities, net of tax			7			1
	Other comprehensive loss		$	(18,379	)	$	(9,213	)
	The changes in each component of accumulated other comprehensive loss, net of tax, are as follows:
	Quarters Ended March 31,		2015			2014
	Foreign currency translation adjustment:
	Beginning balance		$	(23,623	)	$	(11,181	)
	Current period other comprehensive loss			(11,843	)		(5,374	)
	Ending balance			(35,466	)		(16,555	)
	Cash flow hedging instruments:
	Beginning balance			168			—
	Current period other comprehensive income			975			—
	Less reclassification adjustment			(82	)		—
	Ending balance			1,061			—
	Available-for-sale securities:
	Beginning balance			(292	)		(293	)
	Current period other comprehensive income			7			1
	Ending balance			(285	)		(292	)
	Accumulated other comprehensive loss, net of tax		$	(34,690	)	$	(16,847	)

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2015
DERIVATIVES	4	DERIVATIVES
	We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have had on certain monetary liabilities that are denominated in nonfunctional currencies.
	Cash Flow Hedging Instruments
	We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings in the period when the hedged transaction occurs. The maximum length of time over which we hedge our exposure to the variability in future cash flows for forecasted transactions is 12 months and, accordingly, at March 31, 2015, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at March 31, 2015 was $35,200, and such contracts have varying terms expiring through August 2015. We did not have any foreign currency forward contracts designated as cash flow hedges and/or did not qualify for hedge accounting at March 31, 2014.
	The impact from foreign exchange derivative instruments designated in cash flow hedging relationships were as follows:
	Quarters Ended March 31,		2015		2014
	Gain recorded in accumulated other comprehensive loss		$	2,227		—
	Gain reclassified from accumulated other comprehensive loss into earnings		$	188		—
	At March 31, 2015, we expected an estimated $2,423 pre-tax gain to be reclassified into earnings to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months.
	Derivatives Not Designated as Hedging Instruments
	We also enter into foreign currency forward contracts that are not designated as hedges and/or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at March 31, 2015 was $14,400, and such contracts have varying terms expiring through October 2015.
	We recognized a gain of $1,383 and $76 in our condensed consolidated unaudited statements of income from foreign currency forward contracts not designated as hedging instruments for the quarters ended March 31, 2015 and 2014, respectively.
	The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets in our condensed consolidated unaudited balance sheets. See Note 5.
			Asset Derivatives
			March 31, 2015		December 31, 2014
	Derivatives designated as hedging instruments		$	1,575	$	384
	Derivatives not designated as hedging instruments			602		260
	Total derivative instruments		$	2,177	$	644

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2015
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 March 31, 2015 Using
			Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities		Other assets	$	277	$	277		—		—
	Derivative financial instruments		Other current assets	$	2,177		—	$	2,177		—
						Fair Value Measurements
						at December 31, 2014 Using
			Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities		Other assets	$	266	$	266		—		—
	Derivative financial instruments		Other current assets	$	644		—	$	644		—
	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. See Note 4. Fair value is based on observable market inputs, such as forward rates in active markets; therefore, we classify these derivatives within Level 2 of the valuation hierarchy.
	There were no transfers in or out of Level 1 and Level 2 during the quarter ended March 31, 2015.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
SHAREHOLDERS' EQUITY	6	SHAREHOLDERS’ EQUITY
	Common Stock Dividends
	We paid cash dividends of $0.70 and $0.40 per share of Common stock and Class B common stock during the quarters ended March 31, 2015 and 2014, respectively.
	Non-Vested (Restricted) Stock
	During the quarters ended March 31, 2015 and 2014, we granted 152,979 and 183,025 shares of non-vested (restricted) stock, respectively.
	Exercise of Stock Options
	During the quarters ended March 31, 2015 and 2014, 25,200 and 12,250 stock options, respectively, were exercised for Common and Class B common stock. Cash received from Common stock issued as a result of stock options exercised during the quarters ended March 31, 2015 and 2014, was $1,103 and $683, respectively. During the quarter ended March 31, 2015, 4,627 shares of Class B common stock with an aggregate fair market value of $549 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery.
	Employee Stock Purchase Plan
	During the quarters ended March 31, 2015 and 2014, 2,669 and 2,062 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $278 and $190, respectively.
	401(k) Plan
	During the quarters ended March 31, 2015 and 2014, we issued 18,343 and 18,309 shares of Common stock, respectively, to our profit sharing retirement plan, representing the Common stock discretionary matching contribution of $1,963 and $1,759, respectively.
	Noncontrolling Interest
	Of our three joint ventures with Carrier, we have an 80% controlling interest in one and a 60% controlling interest in the other two, while Carrier has either a 20% 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, 2014		$	248,079
	Net income attributable to noncontrolling interest			8,252
	Distributions to noncontrolling interest			(3,654	)
	Foreign currency translation adjustment			(8,032	)
	Gain recorded in accumulated other comprehensive loss			651
	Gain reclassified from accumulated other comprehensive loss into earnings			(55	)
	Noncontrolling interest at March 31, 2015		$	245,241

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES	7	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 $4,857 and $4,630 at March 31, 2015 and December 31, 2014, 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	3 Months Ended
	Mar. 31, 2015
RELATED PARTY TRANSACTIONS	8	RELATED PARTY TRANSACTIONS
	Purchases from Carrier and its affiliates comprised 58% and 61% of all inventory purchases made during the quarters ended March 31, 2015 and 2014, respectively. At March 31, 2015 and December 31, 2014, approximately $85,000 and $61,000, 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 ended March 31, 2015 and 2014 included $7,739 and $6,535, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted at arm’s-length in the ordinary course of business.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2015
Basis of Consolidation	Basis of Consolidation
	Watsco, Inc. and its subsidiaries (collectively, “Watsco,” or “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 in North America. The accompanying March 31, 2015 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 2014 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 ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. 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, primarily during the 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
	Revenue Recognition
	In May 2014, the Financial Accounting Standards Board (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, with no early adoption permitted. In April 2015, the FASB proposed a one-year delay in the effective date of this standard along with the option to adopt the standard as of the original effective date. We are currently evaluating the impact on our condensed consolidated unaudited financial statements.
	Debt Issuance Costs
	In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This guidance is to be applied retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated unaudited financial statements.
Self-Insurance	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 $4,857 and $4,630 at March 31, 2015 and December 31, 2014, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2015
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:
	Quarters Ended March 31,	2015		2014
	Basic Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	23,048	$	16,753
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		1,868		1,242
	Earnings allocated to Watsco, Inc. shareholders	$	21,180	$	15,511
	Weighted-average common shares outstanding – Basic		32,377,159		32,249,988
	Basic earnings per share for Common and Class B common stock	$	0.65	$	0.48
	Allocation of earnings for Basic:
	Common stock	$	19,409	$	14,211
	Class B common stock		1,771		1,300
		$	21,180	$	15,511
	Diluted Earnings per Share:
	Net income attributable to Watsco, Inc. shareholders	$	23,048	$	16,753
	Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock		1,868		1,242
	Earnings allocated to Watsco, Inc. shareholders	$	21,180	$	15,511
	Weighted-average common shares outstanding – Basic		32,377,159		32,249,988
	Effect of dilutive stock options		53,918		55,457
	Weighted-average common shares outstanding – Diluted		32,431,077		32,305,445
	Diluted earnings per share for Common and Class B common stock	$	0.65	$	0.48

OTHER_COMPREHENSIVE_LOSS_Table

OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 31, 2015
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss	The tax effects allocated to each component of other comprehensive loss were as follows:
	Quarters Ended March 31,	2015			2014
	Foreign currency translation adjustment	$	(19,875	)	$	(9,214	)
	Unrealized gain on cash flow hedging instruments		2,227			—
	Income tax expense		(601	)		—
	Unrealized gain on cash flow hedging instruments, net of tax		1,626			—
	Reclassification of gain on cash flow hedging instruments into earnings		(188	)		—
	Income tax expense		51			—
	Reclassification of gain on cash flow hedging instruments into earnings, net of tax		(137	)		—
	Unrealized gain on available-for-sale securities		11			2
	Income tax expense		(4	)		(1	)
	Unrealized gain on available-for-sale securities, net of tax		7			1
	Other comprehensive loss	$	(18,379	)	$	(9,213	)
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, are as follows:
	Quarters Ended March 31,	2015			2014
	Foreign currency translation adjustment:
	Beginning balance	$	(23,623	)	$	(11,181	)
	Current period other comprehensive loss		(11,843	)		(5,374	)
	Ending balance		(35,466	)		(16,555	)
	Cash flow hedging instruments:
	Beginning balance		168			—
	Current period other comprehensive income		975			—
	Less reclassification adjustment		(82	)		—
	Ending balance		1,061			—
	Available-for-sale securities:
	Beginning balance		(292	)		(293	)
	Current period other comprehensive income		7			1
	Ending balance		(285	)		(292	)
	Accumulated other comprehensive loss, net of tax	$	(34,690	)	$	(16,847	)

DERIVATIVES_Tables

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2015
Impact from Foreign Exchange Derivative Instruments Designated in Cash Flow Hedging Relationships	The impact from foreign exchange derivative instruments designated in cash flow hedging relationships were as follows:
	Quarters Ended March 31,	2015		2014
	Gain recorded in accumulated other comprehensive loss	$	2,227		—
	Gain reclassified from accumulated other comprehensive loss into earnings	$	188		—
Fair Value of Derivative Instruments Included in Other Current Assets in Condensed Consolidated Unaudited Balance Sheets	The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets in our condensed consolidated unaudited balance sheets. See Note 5.
		Asset Derivatives
		March 31, 2015		December 31, 2014
	Derivatives designated as hedging instruments	$	1,575	$	384
	Derivatives not designated as hedging instruments		602		260
	Total derivative instruments	$	2,177	$	644

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
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 March 31, 2015 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	277	$	277		—		—
	Derivative financial instruments	Other current assets	$	2,177		—	$	2,177		—
					Fair Value Measurements
					at December 31, 2014 Using
		Balance Sheet Location	Total		Level 1		Level 2		Level 3
	Assets:
	Available-for-sale securities	Other assets	$	266	$	266		—		—
	Derivative financial instruments	Other current assets	$	644		—	$	644		—

SHAREHOLDERS_EQUITY_Tables

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
Schedule of Rollforward of Noncontrolling Interest Balance	The following table reconciles shareholders’ equity attributable to Carrier’s noncontrolling interest:
	Noncontrolling interest at December 31, 2014	$	248,079
	Net income attributable to noncontrolling interest		8,252
	Distributions to noncontrolling interest		(3,654	)
	Foreign currency translation adjustment		(8,032	)
	Gain recorded in accumulated other comprehensive loss		651
	Gain reclassified from accumulated other comprehensive loss into earnings		(55	)
	Noncontrolling interest at March 31, 2015	$	245,241

Basis_of_Presentation_Addition

Basis of Presentation - Additional Information (Detail)	Mar. 31, 2015
	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
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$23,048	$16,753
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock	1,868	1,242
Earnings allocated to Watsco, Inc. shareholders - basic	21,180	15,511
Weighted-average common shares outstanding - Basic	32,377,159	32,249,988
Basic earnings per share for Common and Class B common stock	$0.65	$0.48
Net income attributable to Watsco, Inc. shareholders	23,048	16,753
Less: distributed and undistributed earnings allocated to non-vested (restricted) common stock	1,868	1,242
Earnings allocated to Watsco, Inc. shareholders - diluted	21,180	15,511
Weighted-average common shares outstanding - Basic	32,377,159	32,249,988
Effect of dilutive stock options	53,918	55,457
Weighted-average common shares outstanding - Diluted	32,431,077	32,305,445
Diluted earnings per share for Common and Class B common stock	$0.65	$0.48
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - basic	19,409	14,211
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - basic	$1,771	$1,300

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,707,625	2,702,815
Anti-dilutive stock options excluded from earnings per share	13,767	500

Schedule_of_Tax_Effects_Alloca

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	($19,875)	($9,214)
Unrealized gain on cash flow hedging instruments	2,227
Income tax expense	-601
Unrealized gain on cash flow hedging instruments, net of tax	1,626
Reclassification of gain on cash flow hedging instruments into earnings	-188
Income tax expense	51
Reclassification of gain on cash flow hedging instruments into earnings, net of tax	-137
Unrealized gain on available-for-sale securities	11	2
Income tax expense	-4	-1
Unrealized gain on available-for-sale securities, net of tax	7	1
Other comprehensive loss	($18,379)	($9,213)

Schedule_of_Accumulated_Other_

Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			($23,747)
Ending balance	-34,690	-16,847	-23,747
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	-23,623	-11,181
Current period other comprehensive (loss) income	-11,843	-5,374
Ending balance	-35,466	-16,555
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	168
Current period other comprehensive (loss) income	975
Less reclassification adjustment	-82
Ending balance	1,061
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	-292	-293
Current period other comprehensive (loss) income	7	1
Ending balance	($285)	($292)

Derivatives_Additional_Informa

Derivatives - Additional Information (Detail) (Foreign Currency Forward Contracts, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$35,200
Contract maturity period	One year or less
Contract expiring terms	2015-08
Foreign currency forward contracts designated as cash flow hedges		0
Pre-tax gain to be reclassified into earnings within the next 12 months	2,423
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	14,400
Contract expiring terms	2015-10
Gain (loss) from foreign currency forward contracts not designated as hedging instruments	$1,383	$76

Impact_from_Foreign_Exchange_D

Impact from Foreign Exchange Derivative Instruments Designated in Cash Flow Hedging Relationships (Detail) (Cash Flow Hedge, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	$2,227
Gain reclassified from accumulated other comprehensive loss into earnings	$188

Fair_Value_of_Derivative_Instr

Fair Value of Derivative Instruments Included in Other Current Assets in Consolidated Balance Sheets (Detail) (Foreign Currency Forward Contracts, USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$2,177	$644
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	1,575	384
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$602	$260

Assets_and_Liabilities_Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Other assets
Assets:
Available-for-sale securities	$277	$266
Other Current Assets
Assets:
Derivative financial instruments	2,177	644
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	277	266
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	$2,177	$644

Shareholders_Equity_Additional

Shareholders Equity - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock	$0.70	$0.40
Shares of non-vested restricted stock granted	152,979	183,025
Common stock issued under employee stock purchase plan, shares	2,669	2,062
Common stock issued under employee stock purchase plan, net proceeds	$278	$190
Class B Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	4,627
Shares withheld as payment for tax withholdings related to share based compensation, market value	549
Carrier Enterprise I
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	80.00%
Noncontrolling interest, ownership percentage	20.00%
Carrier Enterprise II
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	60.00%
Noncontrolling interest, ownership percentage	40.00%
Carrier Enterprise III
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	60.00%
Noncontrolling interest, ownership percentage	40.00%
Common Stock
Stockholders Equity Note [Line Items]
Stock options exercised, proceeds	1,103	683
Common Stock | Class B Common Stock
Stockholders Equity Note [Line Items]
Stock options exercised, shares	25,200	12,250
401(k) Plan
Stockholders Equity Note [Line Items]
Common stock contribution to 401(k) Plan, shares	18,343	18,309
Common stock contribution to 401(k) plan	$1,963	$1,759

Schedule_of_Rollforward_of_Non

Schedule of Rollforward of Noncontrolling Interest Balance (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Noncontrolling Interest [Line Items]
Noncontrolling interest beginning balance	$248,079
Net income attributable to noncontrolling interest	8,252	7,650
Distributions to noncontrolling interest	-3,654
Foreign currency translation adjustment	-8,032
Noncontrolling interest ending balance	245,241
Noncontrolling Interest
Noncontrolling Interest [Line Items]
Gain recorded in accumulated other comprehensive loss	651
Gain reclassified from accumulated other comprehensive loss into earnings	($55)

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$4,857	$4,630

Related_Party_Transactions_Add

Related Party Transactions - Additional Information (Detail) (Carrier and Its Affiliates, Supplier Concentration Risk, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	($85,000)		($61,000)
Revenues from sales to Carrier and its affiliates	$7,739	$6,535
Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	58.00%	61.00%