Watsco (WSO) 10-K 29 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 23, 2016	Jun. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	WSO
Entity Registrant Name	WATSCO INC
Entity Central Index Key	105,016
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,243,000,000
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,298,038
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,035,653

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Revenues	$ 4,113,239	[1]	$ 3,944,540	[1]	$ 3,743,330
Cost of sales	3,105,882		2,988,138		2,844,077
Gross profit	1,007,357		956,402		899,253
Selling, general and administrative expenses	670,609		650,655		628,044
Operating income	336,748		305,747		271,209
Interest expense, net	5,547		5,206		5,830
Income before income taxes	331,201		300,541		265,379
Income taxes	104,677		91,839		77,660
Net income	226,524		208,702		187,719
Less: net income attributable to non-controlling interest	53,595		57,315		59,996
Net income attributable to Watsco, Inc.	$ 172,929		$ 151,387		$ 127,723
Earnings per share for Common and Class B common stock:
Basic	$ 4.91	[2]	$ 4.33	[2]	$ 3.69
Diluted	$ 4.90	[2]	$ 4.32	[2]	$ 3.68
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. 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 sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.
[2]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 226,524	$ 208,702	$ 187,719
Other comprehensive loss, net of tax
Foreign currency translation adjustment	(39,378)	(21,117)	(16,365)
Unrealized gain on cash flow hedging instruments	2,713	280
Reclassification of gain on cash flow hedging instruments into earnings	(1,993)
Unrealized (loss) gain on available-for-sale securities	(8)	1	24
Other comprehensive loss	(38,666)	(20,836)	(16,341)
Comprehensive income	187,858	187,866	171,378
Less: comprehensive income attributable to non-controlling interest	38,086	48,752	53,027
Comprehensive income attributable to Watsco, Inc.	$ 149,772	$ 139,114	$ 118,351

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 35,229	$ 24,447
Accounts receivable, net	451,079	434,234
Inventories	673,967	677,990
Other current assets	20,990	20,664
Total current assets	1,181,265	1,157,335
Property and equipment, net	62,715	53,480
Goodwill	378,310	387,311
Intangible assets, net	160,481	186,476
Other assets	5,671	6,465
Total assets	1,788,442	1,791,067
Current liabilities:
Current portion of other long-term obligations	184	169
Accounts payable	145,162	173,360
Accrued expenses and other current liabilities	124,955	113,493
Total current liabilities	270,301	287,022
Long-term obligations:
Borrowings under revolving credit agreement	245,300	303,199
Other long-term obligations, net of current portion	514	686
Total long-term obligations	245,814	303,885
Deferred income taxes and other liabilities	$ 68,606	$ 68,121
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued
Paid-in capital	$ 602,522	$ 580,564
Accumulated other comprehensive loss, net of tax	(46,904)	(23,747)
Retained earnings	495,276	420,879
Treasury stock, at cost, 6,322,650 shares of Common stock and 48,263 shares of Class B common stock at both December 31, 2015 and 2014	(114,425)	(114,425)
Total Watsco, Inc. shareholders' equity	957,310	883,960
Non-controlling interest	246,411	248,079
Total shareholders' equity	1,203,721	1,132,039
Total liabilities and shareholders' equity	1,788,442	1,791,067
Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,308	18,222
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,533	$ 2,467

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.50	$ 0.50
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares outstanding	36,616,197	36,444,289
Treasury stock, shares	6,322,650	6,322,650
Class B Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares outstanding	5,066,209	4,933,245
Treasury stock, shares	48,263	48,263

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock, Class B Common Stock and Preferred Stock	Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2012		34,521,310
Beginning balance at Dec. 31, 2012	$ 1,022,040	$ 20,446	$ 592,820	$ (2,102)	$ 251,475	$ (114,425)	$ 273,826
Net income	187,719				127,723		59,996
Other comprehensive loss	(16,341)			(9,372)			(6,969)
Issuances of non-vested restricted shares of common stock (in shares)		124,043
Issuances of non-vested restricted shares of common stock		$ 62	(62)
Forfeitures of non-vested restricted shares of common stock (in shares)		(10,000)
Forfeitures of non-vested restricted shares of common stock		$ (5)	5
Common stock contribution to 401(k) plan	1,689	$ 11	1,678
Common stock contribution to 401(k) plan (in shares)		22,551
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		87,193
Stock issuances from exercise of stock options and employee stock purchase plan	3,384	$ 44	3,340
Retirement of common stock (in shares)		(17,976)
Retirement of common stock	(1,677)	$ (9)	(1,668)
Share-based compensation	8,760		8,760
Excess tax benefit from share-based compensation	1,511		1,511
Cash dividends declared and paid on Common and Class B common stock	(39,836)				(39,836)
Distributions to non-controlling interest	(39,857)						(39,857)
Ending balance (in shares) at Dec. 31, 2013		34,727,121
Ending balance at Dec. 31, 2013	1,127,392	$ 20,549	606,384	(11,474)	339,362	(114,425)	286,996
Net income	208,702				151,387		57,315
Other comprehensive loss	(20,836)			(12,273)			(8,563)
Issuances of non-vested restricted shares of common stock (in shares)		218,725
Issuances of non-vested restricted shares of common stock		$ 109	(109)
Forfeitures of non-vested restricted shares of common stock (in shares)		(5,000)
Forfeitures of non-vested restricted shares of common stock		$ (2)	2
Common stock contribution to 401(k) plan	1,759	$ 9	1,750
Common stock contribution to 401(k) plan (in shares)		18,309
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		73,948
Stock issuances from exercise of stock options and employee stock purchase plan	4,666	$ 37	4,629
Retirement of common stock (in shares)		(26,482)
Retirement of common stock	(2,615)	$ (13)	(2,602)
Share-based compensation	12,006		12,006
Excess tax benefit from share-based compensation	1,828		1,828
Cash dividends declared and paid on Common and Class B common stock	(69,870)				(69,870)
Decrease in non-controlling interest in Carrier Enterprise I	(87,735)		(43,324)				(44,411)
Distributions to non-controlling interest	(43,258)						(43,258)
Ending balance (in shares) at Dec. 31, 2014		35,006,621
Ending balance at Dec. 31, 2014	1,132,039	$ 20,689	580,564	(23,747)	420,879	(114,425)	248,079
Net income	226,524				172,929		53,595
Other comprehensive loss	(38,666)			(23,157)			(15,509)
Issuances of non-vested restricted shares of common stock (in shares)		200,479
Issuances of non-vested restricted shares of common stock		$ 100	(100)
Forfeitures of non-vested restricted shares of common stock (in shares)		(5,000)
Forfeitures of non-vested restricted shares of common stock		$ (2)	2
Common stock contribution to 401(k) plan	1,963	$ 9	1,954
Common stock contribution to 401(k) plan (in shares)		18,343
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		124,262
Stock issuances from exercise of stock options and employee stock purchase plan	8,632	$ 62	8,570
Retirement of common stock (in shares)		(33,212)
Retirement of common stock	(4,140)	$ (17)	(4,123)
Share-based compensation	13,233		13,233
Excess tax benefit from share-based compensation	2,422		2,422
Cash dividends declared and paid on Common and Class B common stock	(98,532)				(98,532)
Distributions to non-controlling interest	(39,754)						(39,754)
Ending balance (in shares) at Dec. 31, 2015		35,311,493
Ending balance at Dec. 31, 2015	$ 1,203,721	$ 20,841	$ 602,522	$ (46,904)	$ 495,276	$ (114,425)	$ 246,411

Consolidated Statements of Sha7

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash dividends declared and paid, common stock	$ 2.80	$ 2	$ 1.15

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 226,524	$ 208,702	$ 187,719
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,117	17,927	17,706
Share-based compensation	12,596	11,473	9,967
Deferred income tax provision	4,687	289	8,589
Provision for doubtful accounts	2,688	2,609	961
Non-cash contribution to 401(k) plan	1,963	1,759	1,689
Gain on sale of property and equipment	(487)	(1,292)	(156)
Excess tax benefits from share-based compensation	(2,422)	(1,828)	(1,511)
Changes in operating assets and liabilities:
Accounts receivable	(26,121)	(41,068)	(25,846)
Inventories	(3,652)	(98,741)	(40,575)
Accounts payable and other liabilities	(13,225)	45,242	(7,256)
Other, net	(285)	(92)	(1,018)
Net cash provided by operating activities	221,383	144,980	150,269
Cash flows from investing activities:
Capital expenditures	(23,698)	(21,512)	(14,580)
Proceeds from sale of property and equipment	760	2,388	323
Net cash used in investing activities	(22,938)	(19,124)	(14,257)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(98,532)	(69,870)	(39,836)
Net (repayments) proceeds under revolving credit agreement	(56,256)	74,729	(83,559)
Distributions to non-controlling interest	(39,754)	(43,258)	(69,494)
Net (repayments) proceeds from other long-term obligations	(157)	235	602
Purchase of additional ownership from non-controlling interest		(87,735)
Payment of fees related to revolving credit agreement		(381)	(458)
Excess tax benefits from share-based compensation	2,422	1,828	1,511
Net proceeds from issuances of common stock	5,957	4,245	2,185
Net cash used in financing activities	(186,320)	(120,207)	(189,049)
Effect of foreign exchange rate changes on cash and cash equivalents	(1,343)	(680)	(1,255)
Net increase (decrease) in cash and cash equivalents	10,782	4,969	(54,292)
Cash and cash equivalents at beginning of year	24,447	19,478	73,770
Cash and cash equivalents at end of year	$ 35,229	$ 24,447	$ 19,478

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “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. At December 31, 2015, we operated from 566 locations in 37 U.S. states, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements 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. Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income. Use of Estimates The preparation of consolidated 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 consolidated 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. Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2015 and 2014, the allowance for doubtful accounts totaled $5,305 and $5,461, respectively. Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost or market using a weighted-average cost basis and the first-in, first-out methods. As part of the valuation process, inventories are adjusted to reflect excess, slow-moving and damaged inventories at their estimated net realizable value. Inventory policies are reviewed periodically, reflecting current risks, trends and changes in industry conditions. A reserve for estimated inventory shrinkage is also maintained to consider inventory shortages determined from cycle counts and physical inventories. Vendor Rebates We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2015 and 2014, we had $8,086 and $10,088, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year. Marketable Securities Investments in marketable equity securities are classified as available-for-sale and are included in other assets in our consolidated balance sheets. These equity securities are recorded at fair value using the specific identification method with unrealized holding losses, net of deferred taxes, included in accumulated other comprehensive loss within shareholders’ equity. Dividend and interest income are recognized in the statements of income when earned. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 years. Leasehold improvements are amortized over the shorter of the respective lease terms or estimated useful lives. Furniture and fixtures are depreciated over estimated useful lives ranging from 5-7 years. Estimated useful lives for other depreciable assets range from 3-10 years. Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of impairment loss. Other intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and non-compete agreements. Indefinite lived intangibles not subject to amortization are assessed for impairment at least annually, or more frequently if events or changes in circumstances indicate they may be impaired, by comparing the fair value of the intangible asset to its carrying amount to determine if a write-down to fair value is required. Finite lived intangible assets are amortized using the straight-line method over their respective estimated useful lives. We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests. Long-Lived Assets Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2015, there were no such events or circumstances. Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment and related parts and supplies and is recorded when shipment of products or delivery of services has occurred. Substantially all customer returns relate to products that are returned under warranty obligations underwritten by manufacturers, effectively mitigating our risk of loss for customer returns. Taxes collected from our customers and remitted to governmental authorities are presented in our consolidated statements of income on a net basis. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013, were $21,150, $19,754 and $22,418, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products is included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2015, 2014 and 2013, were $41,345, $43,324 and $39,395, respectively. Share-Based Compensation The fair value of stock option and non-vested restricted stock awards are expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of income. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to paid-in capital in the consolidated balance sheets. Income Taxes We record United States federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated United States federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Earnings per Share We compute earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of our non-vested restricted stock are considered participating securities because these awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share for our Common and Class B common stock is computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of shares of Common and Class B common stock outstanding for the period. In applying the two-class method, undistributed earnings are allocated to Common stock, Class B common stock and participating securities based on the weighted-average shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period. Derivative Instruments and Hedging Activity We have used derivative instruments, including forward contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 13 for additional information pertaining to derivative instruments. 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. In July 2015, the FASB deferred the effective date of this standard by one year. As a result, this standard is effective for our interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We will adopt this guidance on January 1, 2018, and are currently evaluating the impact on our consolidated financial statements. Presentation of 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 consolidated financial statements. Measurement of Inventory In July 2015, the FASB issued guidance that simplifies the measurement of inventory by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies to all inventory that is measured using first-in, first-out or average cost methods. This guidance must be applied prospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance can be applied either prospectively or retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2015
EARNINGS PER SHARE	2. EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Years Ended December 31, 2015 2014 2013 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 172,929 $ 151,387 $ 127,723 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 13,634 11,444 9,064 Earnings allocated to Watsco, Inc. shareholders $ 159,295 $ 139,943 $ 118,659 Weighted-average common shares outstanding - Basic 32,435,961 32,308,073 32,195,598 Basic earnings per share for Common and Class B common stock $ 4.91 $ 4.33 $ 3.69 Allocation of earnings for Basic: Common stock $ 146,037 $ 128,214 $ 108,690 Class B common stock 13,258 11,729 9,969 $ 159,295 $ 139,943 $ 118,659 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 172,929 $ 151,387 $ 127,723 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 13,626 11,435 9,053 Earnings allocated to Watsco, Inc. shareholders $ 159,303 $ 139,952 $ 118,670 Weighted-average common shares outstanding - Basic 32,435,961 32,308,073 32,195,598 Effect of dilutive stock options 44,395 50,781 62,470 Weighted-average common shares outstanding - Diluted 32,480,356 32,358,854 32,258,068 Diluted earnings per share for Common and Class B common stock $ 4.90 $ 4.32 $ 3.68 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 December 31, 2015, 2014 and 2013, our outstanding Class B common stock was convertible into 2,699,710, 2,707,725 and 2,704,832 shares of our Common stock, respectively. Diluted earnings per share excluded 67,014, 9,984 and 1,066 shares for the years ended December 31, 2015, 2014 and 2013, respectively, related to stock options with an exercise price per share greater than the average market value, resulting in an anti-dilutive effect on diluted earnings per share.

OTHER COMPREHENSIVE LOSS

OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 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 its functional currency and changes in the unrealized gains (losses) on cash flow hedging instruments and available-for-sale securities. The tax effects allocated to each component of other comprehensive loss were as follows: Years Ended December 31, 2015 2014 2013 Foreign currency translation adjustment $ (39,378 ) $ (21,117 ) $ (16,365 ) Unrealized gain on cash flow hedging instruments 3,716 384 — Income tax expense (1,003 ) (104 ) — Unrealized gain on cash flow hedging instruments, net of tax 2,713 280 — Reclassification of gain on cash flow hedging instruments into earnings (2,730 ) — — Income tax expense 737 — — Reclassification of gain on cash flow hedging instruments into earnings, net of tax (1,993 ) — — Unrealized (loss) gain on available-for-sale securities (12 ) 1 39 Income tax benefit (expense) 4 — (15 ) Unrealized (loss) gain on available-for-sale securities, net of tax (8 ) 1 24 Other comprehensive loss $ (38,666 ) $ (20,836 ) $ (16,341 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2015 2014 2013 Foreign currency translation adjustment: Beginning balance $ (23,623 ) $ (11,181 ) $ (1,785 ) Current period other comprehensive loss (23,581 ) (12,442 ) (9,396 ) Ending balance (47,204 ) (23,623 ) (11,181 ) Cash flow hedging instruments: Beginning balance 168 — — Current period other comprehensive income 1,628 168 — Less reclassification adjustment (1,196 ) — — Ending balance 600 168 — Available-for-sale securities: Beginning balance (292 ) (293 ) (317 ) Current period other comprehensive (loss) income (8 ) 1 24 Ending balance (300 ) (292 ) (293 ) Accumulated other comprehensive loss, net of tax $ (46,904 ) $ (23,747 ) $ (11,474 )

SUPPLIER CONCENTRATION

SUPPLIER CONCENTRATION	12 Months Ended
	Dec. 31, 2015
SUPPLIER CONCENTRATION	4. SUPPLIER CONCENTRATION Purchases from our top ten suppliers comprised 84%, 82% and 81% of all purchases made in 2015, 2014 and 2013, respectively. Our largest supplier, Carrier and its affiliates, accounted for 62%, 61% and 59% of all purchases made in 2015, 2014 and 2013, respectively. See Note 16. A significant interruption by Carrier, or any of our other key suppliers, in the delivery of products could impair our ability to maintain current inventory levels and could materially impact our consolidated results of operations and consolidated financial position.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Property and equipment, net, consists of: December 31, 2015 2014 Land $ 820 $ 853 Buildings and improvements 69,675 58,915 Machinery, vehicles and equipment 43,150 43,124 Furniture and fixtures 14,311 14,001 Computer hardware and software 38,876 33,314 166,832 150,207 Accumulated depreciation and amortization (104,117 ) (96,727 ) $ 62,715 $ 53,480 Depreciation and amortization expense related to property and equipment included in selling, general and administrative expenses for the years ended December 31, 2015, 2014 and 2013, were $13,802, $12,158 and $11,677, respectively.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
DEBT	6. DEBT We maintain an unsecured, syndicated revolving credit agreement that provides for borrowings of up to $600,000. Borrowings are used to fund seasonal working capital needs and for other general corporate purposes, including acquisitions, dividends (if and as declared by our Board of Directors), capital expenditures, stock repurchases and issuances of letters of credit. The credit agreement matures on July 1, 2019. Included in the credit facility are a $90,000 swingline subfacility, a $50,000 letter of credit subfacility and a $75,000 multicurrency borrowing sublimit. Borrowings under the credit facility bear interest at either LIBOR-based rates plus a spread, which ranges from 87.5 to 250.0 basis-points (LIBOR plus 100.0 basis-points at December 31, 2015), depending on our ratio of total debt to EBITDA, or on rates based on the higher of the Prime rate or the Federal Funds Rate, in each case plus a spread which ranges from 0 to 150.0 basis-points (0 basis-points at December 31, 2015), depending on our ratio of total debt to EBITDA. We pay a variable commitment fee on the unused portion of the commitment under the revolving credit agreement, ranging from 12.5 to 35.0 basis-points (15.0 basis-points at December 31, 2015). At December 31, 2015 and 2014, $245,300 and $303,199, respectively, were outstanding under the revolving credit agreement. 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 December 31, 2015.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES	7. INCOME TAXES The components of income tax expense from our wholly-owned operations and investments and our controlling interest in joint ventures with Carrier are as follows: Years Ended December 31, 2015 2014 2013 U.S. Federal $ 85,585 $ 74,561 $ 62,616 State 9,431 10,325 9,234 Foreign 9,661 6,953 5,810 $ 104,677 $ 91,839 $ 77,660 Current $ 99,990 $ 91,550 $ 69,071 Deferred 4,687 289 8,589 $ 104,677 $ 91,839 $ 77,660 We calculate our income tax expense and our effective tax rate for 100% of income attributable to our wholly-owned operations and for our controlling interest of income attributable to our joint ventures with Carrier, which are primarily taxed as partnerships for income tax purposes. Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit and other 2.3 3.0 3.3 Tax effects on foreign income (0.3 ) (1.0 ) (1.3 ) Effective income tax rate attributable to Watsco, Inc. 37.0 37.0 37.0 Taxes attributable to non-controlling interest (5.4 ) (6.4 ) (7.7 ) Effective income tax rate 31.6 % 30.6 % 29.3 % The following is a summary of the significant components of our current and long-term deferred tax assets and liabilities: December 31, 2015 2014 Current deferred tax assets: Capitalized inventory costs and inventory reserves $ 1,794 $ 3,262 Self-insurance reserves 519 759 Allowance for doubtful accounts 1,053 992 Other current deferred tax assets 1,921 1,588 Total current deferred tax assets (1) 5,287 6,601 Long-term deferred tax assets: Share-based compensation 23,603 20,108 Other long-term deferred tax assets 352 746 Net operating loss carryforwards 207 221 24,162 21,075 Valuation allowance — — Total long-term deferred tax assets (2) 24,162 21,075 Current deferred tax liabilities: Other current deferred tax liabilities (686 ) (536 ) Total current deferred tax liabilities (1) (686 ) (536 ) Long-term deferred tax liabilities: Deductible goodwill (83,868 ) (80,404 ) Depreciation (3,774 ) (2,992 ) Other long-term deferred tax liabilities (1,533 ) (1,320 ) Total long-term deferred tax liabilities (2) (89,175 ) (84,716 ) Net deferred tax liabilities $ (60,412 ) $ (57,576 ) (1) Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets. (2) Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities. Amounts earned by foreign subsidiaries are generally subject to United States income taxation upon repatriation. United States income taxes have not been provided on undistributed earnings of our foreign subsidiaries. The cumulative undistributed earnings related to foreign operations were approximately $113,000 at December 31, 2015. It is not practicable to estimate the amount of tax that might be payable. Our intention is to indefinitely reinvest these earnings outside of the United States or to repatriate the earnings only when it is tax effective to do so. Management has determined that no valuation allowance was necessary at both December 31, 2015 and 2014. At December 31, 2015, there were state and other net operating loss carryforwards of $6,771, which expire in varying amounts from 2016 through 2035. These amounts are available to offset future taxable income. There were no federal net operating loss carryforwards at December 31, 2015. We are subject to United States federal income tax, income tax of multiple state jurisdictions and foreign income tax. We are subject to tax audits in the various jurisdictions until the respective statutes of limitations expire. We are no longer subject to United States federal tax examinations for tax years prior to 2012. For the majority of states, we are no longer subject to tax examinations for tax years prior to 2011. As of December 31, 2015 and 2014, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $3,513 and $3,719, respectively. Of these totals, $2,416 and $2,417, respectively, (net of the federal benefit received from state positions) represent the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. Our continuing practice is to recognize penalties within selling, general and administrative expenses and interest related to income tax matters in income tax expense in the consolidated statements of income. As of December 31, 2015 and 2014, the cumulative amount of estimated accrued interest and penalties resulting from such unrecognized tax benefits was $384 and $729, respectively, and is included in deferred income taxes and other liabilities in the accompanying consolidated balance sheets. The changes in gross unrecognized tax benefits are as follows: Balance at December 31, 2012 $ 2,474 Additions based on tax positions related to the current year 673 Reductions due to lapse of applicable statute of limitations (12 ) Balance at December 31, 2013 3,135 Additions based on tax positions related to the current year 751 Reductions due to lapse of applicable statute of limitations (167 ) Balance at December 31, 2014 3,719 Additions based on tax positions related to the current year 871 Reductions due to lapse of applicable statute of limitations and tax assessments (1,077 ) Balance at December 31, 2015 $ 3,513

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
SHARE-BASED COMPENSATION AND BENEFIT PLANS	8. SHARE-BASED COMPENSATION AND BENEFIT PLANS Share-Based Compensation Plans We have two share-based compensation plans for employees. The 2014 Incentive Compensation Plan (the “2014 Plan”) provides for the award of a broad variety of share-based compensation alternatives such as non-vested restricted stock, non-qualified stock options, incentive stock options, performance awards, dividend equivalents, deferred stock and stock appreciation rights at no less than 100% of the market price on the date the award is granted. To date, awards under the 2014 Plan consist of non-qualified stock options and non-vested restricted stock. Under the 2014 Plan, the number of shares of Common and Class B common stock available for issuance is (i) 2,000,000, plus (ii) 45,421 shares of Common stock or Class B common stock that remained available for grant in connection with awards under the Watsco, Inc. Amended and Restated 2001 Incentive Compensation Plan (the “2001 Plan”) on the date on which our shareholders approved the 2014 Plan plus (iii) shares underlying currently outstanding awards issued under the 2001 Plan, which shares become reissuable under the 2014 Plan to the extent that such underlying shares are not issued due to their forfeiture, expiration, termination or otherwise. A total of 212,450 shares of Common stock, net of cancellations, and 150,979 shares of Class B common stock, had been awarded under the 2014 Plan as of December 31, 2015. As of December 31, 2015, 1,681,992 shares of common stock were reserved for future grants under the 2014 Plan. Options under the 2014 Plan vest over two to four years of service and have contractual terms of five years. Awards of non-vested restricted stock, which are granted at no cost to the employee, vest upon attainment of a certain age, generally toward the end of an employee’s career. Vesting may be accelerated in certain circumstances prior to the original vesting date. The 2001 Plan expired during 2014; therefore, no additional options may be granted. There were 97,500 options to exercise common stock outstanding under the 2001 Plan at December 31, 2015. Options under the 2001 Plan vest over two to four years of service and have contractual terms of five years. The following is a summary of stock option activity under the 2014 Plan and the 2001 Plan as of and for the year ended December 31, 2015: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2014 241,450 $ 73.62 Granted 153,250 123.59 Exercised (114,616 ) 65.65 Forfeited (22,750 ) 118.50 Options outstanding at December 31, 2015 257,334 $ 102.96 3.36 $ 4,494 Options exercisable at December 31, 2015 33,834 $ 73.89 1.53 $ 1,491 The following is a summary of non-vested restricted stock activity as of and for the year ended December 31, 2015: Shares Weighted- Average Grant Date Fair Value Non-vested restricted stock outstanding at December 31, 2014 2,643,717 $ 45.21 Granted 200,479 114.55 Vested (20,000 ) 49.36 Forfeited (5,000 ) 110.36 Non-vested restricted stock outstanding at December 31, 2015 2,819,196 $ 49.99 The weighted-average grant date fair value of non-vested restricted stock granted during 2015, 2014 and 2013 was $114.55, $96.84 and $80.21, respectively. The fair value of non-vested restricted stock that vested during 2015 and 2014 was $2,468 and $5,789, respectively. The tax benefits realized from non-vested restricted stock that vested during 2015 and 2014 totaled $911 and $2,142, respectively. No non-vested restricted stock vested during 2013. During 2015, 7,206 shares of Common stock with an aggregate fair market value of $889 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 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 restricted stock. These shares were retired upon delivery. Share-Based Compensation Fair Value Assumptions The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing valuation model based on the weighted-average assumptions noted in the table below. The fair value of each stock option award, which is subject to graded vesting, is expensed, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the stock option. We use historical data to estimate stock option forfeitures. The expected term of stock option awards granted represents the period of time that stock option awards granted are expected to be outstanding and was calculated using the simplified method for plain vanilla options, which we believe provides a reasonable estimate of expected life based on our historical data. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon United States Treasury bond on the date the stock option award is granted with a maturity equal to the expected term of the stock option award. Expected volatility is based on historical volatility of our stock. The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2015 2014 2013 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 1.25 % 1.35 % 0.82 % Expected volatility 20.96 % 22.07 % 24.56 % Expected dividend yield 2.29 % 1.69 % 2.20 % Grant date fair value $ 17.17 $ 15.75 $ 13.33 Exercise of Stock Options The total intrinsic value of stock options exercised during 2015, 2014 and 2013 was $7,525, $3,746 and $2,753, respectively. Cash received from the exercise of stock options during 2015, 2014 and 2013 was $4,850, $3,324 and $1,554, respectively. During 2015, 2014 and 2013, 26,006 shares of Class B common stock with an aggregate fair market value of $3,251, 5,454 shares of Common stock with an aggregate fair market value of $490 and 4,749 shares of Common stock with an aggregate fair market value of $450, respectively, were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. During 2013, 13,227 shares of common stock with an aggregate fair market value of $1,227 were delivered as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. In connection with stock option exercises, the tax benefits realized from share-based compensation plans totaled $2,469, $936 and $1,557, for the years ended December 31, 2015, 2014 and 2013, respectively. Share-Based Compensation Expense The following table provides information on share-based compensation expense: Years Ended December 31, 2015 2014 2013 Stock options $ 952 $ 801 $ 884 Non-vested restricted stock 11,644 10,672 9,083 Share-based compensation expense $ 12,596 $ 11,473 $ 9,967 At December 31, 2015, there was $1,816 of unrecognized pre-tax compensation expense related to stock options granted under the 2014 Plan and 2001 Plan, which is expected to be recognized over a weighted-average period of approximately 1.8 years. The total fair value of stock options that vested during 2015, 2014 and 2013 was $856, $1,145 and $822, respectively. At December 31, 2015, there was $83,762 of unrecognized pre-tax compensation expense related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of approximately 11.3 years, of which, approximately $56,000 is related to awards granted to our Chief Executive Officer (“CEO”), which vest in approximately 11 years upon his attainment of age 86. In the event that vesting is accelerated for any circumstance, as defined in the related agreements, the remaining unrecognized share-based compensation expense would be immediately recognized as a charge to earnings with a corresponding tax benefit. At December 31, 2015, we were obligated to issue 58,893 shares of non-vested restricted stock in connection with our CEO’s 2015 performance based incentive compensation. Employee Stock Purchase Plan The Watsco, Inc. Fourth Amended and Restated 1996 Qualified Employee Stock Purchase Plan (the “ESPP”) provides for up to 1,500,000 shares of Common stock to be available for purchase by our full-time employees with at least 90 days of service. The plan allows participating employees to purchase shares of Common stock with a discount of 5% of the fair market value at specified times. During 2015, 2014 and 2013, employees purchased 6,463, 6,995 and 5,844 shares of Common stock at an average price of $112.53, $90.89 and $79.46 per share, respectively. Cash dividends received by the ESPP were reinvested in Common stock and resulted in the issuance of 3,183, 2,953 and 1,899 additional shares during 2015, 2014 and 2013, respectively. We received net proceeds of $1,107, $921 and $631, respectively, during 2015, 2014 and 2013, for shares of our Common stock issued under the ESPP. At December 31, 2015, 505,558 shares remained available for purchase under the ESPP. 401(k) Plan We have a profit sharing retirement plan for our employees that is qualified under Section 401(k) of the Internal Revenue Code. Annual matching contributions are made based on a percentage of eligible employee compensation deferrals. The contribution has historically been made with the issuance of Common stock to the plan on behalf of our employees. For the years ended December 31, 2015, 2014 and 2013, we issued 18,343, 18,309 and 22,551 shares of Common stock, respectively, to the plan, representing the Common stock discretionary matching contribution of $1,963, $1,759 and $1,689, respectively.

PURCHASE OF OWNERSHIP INTEREST

PURCHASE OF OWNERSHIP INTEREST IN JOINT VENTURE	12 Months Ended
	Dec. 31, 2015
PURCHASE OF OWNERSHIP INTEREST IN JOINT VENTURE	9. PURCHASE OF OWNERSHIP INTEREST IN JOINT VENTURE On July 1, 2014, we exercised our second option to acquire an additional 10% ownership interest in Carrier Enterprise, LLC (“Carrier Enterprise I”) for cash consideration of $87,735, following which we have an 80% controlling interest in Carrier Enterprise I. 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.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS	10. GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2013 $ 392,610 Foreign currency translation adjustment (5,299 ) Balance at December 31, 2014 387,311 Foreign currency translation adjustment (9,001 ) Balance at December 31, 2015 $ 378,310 Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2015 2014 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 118,205 $ 131,271 Finite lived intangible assets: Customer relationships 10-15 years 68,981 76,595 Trade name 10 years 1,150 1,150 Non-compete agreements 7 years 369 369 Accumulated amortization (28,224 ) (22,909 ) Finite lived intangible assets, net 42,276 55,205 $ 160,481 $ 186,476 Amortization expense related to finite lived intangible assets included in selling, general and administrative expenses for the years ended December 31, 2015, 2014 and 2013, were $5,315, $5,769 and $6,029, respectively. Amortization of finite lived intangible assets for 2016 through 2020 is expected to be approximately $5,100 per year.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
SHAREHOLDERS' EQUITY	11. SHAREHOLDERS’ EQUITY Common Stock Common stock and Class B common stock share equally in earnings and are identical in most other respects except (i) Common stock is entitled to one vote on most matters and each share of Class B common stock is entitled to ten votes; (ii) shareholders of Common stock are entitled to elect 25% of the Board of Directors (rounded up to the nearest whole number) and Class B shareholders are entitled to elect the balance of the Board of Directors; (iii) cash dividends may be paid on Common stock without paying a cash dividend on Class B common stock and no cash dividend may be paid on Class B common stock unless at least an equal cash dividend is paid on Common stock and (iv) Class B common stock is convertible at any time into Common stock on a one-for-one basis at the option of the shareholder. Preferred Stock We are authorized to issue preferred stock with such designation, rights and preferences as may be determined from time to time by our Board of Directors. Accordingly, the Board of Directors is empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights which could adversely affect the voting power or other rights of the holders of our Common stock and Class B common stock and, in certain instances, could adversely affect the market price of this stock. We had no preferred stock outstanding at December 31, 2015 or 2014. Stock Repurchase Plan In September 1999, our Board of Directors authorized the repurchase, at management’s discretion, of up to 7,500,000 shares of common stock in the open market or via private transactions. Shares repurchased under the program are accounted for using the cost method and result in a reduction of shareholders’ equity. No shares were repurchased during 2015, 2014 or 2013. In aggregate, 6,322,650 shares of Common stock and 48,263 shares of Class B common stock have been repurchased at a cost of $114,425 since the inception of the program. At December 31, 2015, there were 1,129,087 shares remaining authorized for repurchase under the program.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2015
FINANCIAL INSTRUMENTS	12. FINANCIAL INSTRUMENTS Recorded Financial Instruments Recorded financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, the current portion of long-term obligations, borrowings under our revolving credit agreement and debt instruments included in other long-term obligations. At December 31, 2015 and 2014, the fair values of cash and cash equivalents, accounts receivable, accounts payable and the current portion of long-term obligations approximated their carrying values due to the short-term nature of these instruments. The fair values of variable rate borrowings under our revolving credit agreement and debt instruments included in long-term obligations also approximate their carrying value based upon interest rates available for similar instruments with consistent terms and remaining maturities. Off-Balance Sheet Financial Instruments At December 31, 2015 and 2014, we were contingently liable under standby letters of credit aggregating $2,690 and $2,662, respectively, which are primarily used as collateral to cover any contingency related to additional risk assessments pertaining to our self-insurance programs. Additionally, at December 31, 2015 and 2014, we were contingently liable under various performance bonds aggregating approximately $4,000 and $2,300, respectively, which are used as collateral to cover any contingencies related to our nonperformance under agreements with certain customers. We do not expect that any material losses or obligation will result from the issuance of the standby letters of credit or performance bonds because we expect to meet our obligations under our self-insurance programs and to certain customers in the ordinary course of business. Accordingly, the estimated fair value of these instruments is zero. Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of accounts receivable. Concentrations of credit risk are limited due to the large number of customers comprising the customer base and their dispersion across many different geographical regions. We also have access to credit insurance programs which are used as an additional means to mitigate credit risk.

DERIVATIVES

DERIVATIVES	12 Months Ended
	Dec. 31, 2015
DERIVATIVES	13. DERIVATIVES We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have 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 for the period in which the settlement of these instruments occur. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at December 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 December 31, 2015 was $23,500, and such contracts have varying terms expiring through June 2016. The impact from foreign exchange derivative instruments designated as cash flow hedges were as follows: Years Ended December 31, 2015 2014 Gain recorded in accumulated other comprehensive loss $ 3,716 $ 384 Gain reclassified from accumulated other comprehensive loss into earnings $ (2,730 ) — At December 31, 2015, we expected an estimated $1,370 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 have also entered into foreign currency forward contracts that are either not designated as hedges 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 December 31, 2015 was $15,000, and such contracts have varying terms expiring through March 2016. We recognized gains of $2,552, $142 and $315 from foreign currency forward contracts not designated as hedging instruments in our consolidated statements of income for 2015, 2014 and 2013, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets and accrued expenses and other current liabilities in our consolidated balance sheets. See Note 14. Asset Derivatives Liability Derivatives December 31, 2015 2014 2015 2014 Derivatives designated as hedging instruments $ 923 $ 384 $ 3 — Derivatives not designated as hedging instruments 326 260 4 — Total derivative instruments $ 1,249 $ 644 $ 7 —

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS	14. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 254 $ 254 — — Derivative financial instruments Other current assets $ 1,249 — $ 1,249 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 7 — $ 7 — 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 Derivative financial instruments There were no transfers in or out of Level 1 and Level 2 during 2015 or 2014.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments In December 2015, a purported Watsco shareholder, Nelson Gaskins, filed a derivative lawsuit in the U.S. District Court for the Southern District of Florida against Watsco’s Board of Directors. The Company is a nominal defendant. The lawsuit alleges breach of fiduciary duties regarding CEO incentive compensation and seeks to recover alleged excessive incentive compensation and unspecified damages. The defendants believe the claims are entirely without merit and intend to vigorously defend against them. We believe the ultimate outcome of this matter will not have a material adverse effect on our consolidated results of operations and consolidated financial position. 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 $3,214 and $4,630 at December 31, 2015 and 2014, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets. Variable Interest Entity As of December 31, 2015, in conjunction with our casualty insurance programs, limited equity interests are held in a captive insurance entity. The programs permit us to self-insure a portion of losses, to gain access to a wide array of safety-related services, to pool insurance risks and resources in order to obtain more competitive pricing for administration and reinsurance and to limit risk of loss in any particular year. The entity meets the definition of Variable Interest Entity (“VIE”); however, we do not meet the requirements to include this entity in the consolidated financial statements. The maximum exposure to loss related to our involvement with this entity is limited to approximately $4,500. See “Self-Insurance” above for further information on commitments associated with the insurance programs and Note 12, under the caption “Off-Balance Sheet Financial Instruments,” for further information on standby letters of credit. At December 31, 2015, there were no other entities that met the definition of a VIE. Operating Leases We are obligated under various non-cancelable operating lease agreements for real property, equipment, vehicles and a corporate aircraft used in our operations with varying terms through 2025. We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Some of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis over the lease term. At December 31, 2015, future minimum payments under non-cancelable operating leases over each of the next five years and thereafter were as follows: 2016 $ 67,959 2017 52,405 2018 35,991 2019 22,112 2020 12,639 Thereafter 10,398 Total minimum payments $ 201,504 Rental expense for the years ended December 31, 2015, 2014 and 2013, was $82,581, $81,155 and $79,585, respectively. Purchase Obligations At December 31, 2015, we were obligated under various non-cancelable purchase orders with Carrier and its affiliates for goods aggregating approximately $19,000.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS	16. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 62%, 61% and 59% of all inventory purchases made during 2015, 2014 and 2013, respectively. At December 31, 2015 and 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 consolidated statements of income for 2015, 2014 and 2013 included $61,656, $38,195 and $30,819, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted at arm’s-length in the ordinary course of business.

INFORMATION ABOUT GEOGRAPHIC AR

INFORMATION ABOUT GEOGRAPHIC AREAS	12 Months Ended
	Dec. 31, 2015
INFORMATION ABOUT GEOGRAPHIC AREAS	17. INFORMATION ABOUT GEOGRAPHIC AREAS Our operations are primarily within the United States, including Puerto Rico, Canada and Mexico. Products are also sold from the United States on an export-only basis to portions of Latin America and the Caribbean Basin. The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2015 2014 2013 Revenues: United States $ 3,710,977 $ 3,525,176 $ 3,325,114 Canada 263,908 300,289 318,165 Mexico 138,354 119,075 100,051 Total revenues $ 4,113,239 $ 3,944,540 $ 3,743,330 December 31, 2015 2014 Long-Lived Assets: United States $ 441,656 $ 434,910 Canada 154,437 187,064 Mexico 5,413 5,293 Total long-lived assets $ 601,506 $ 627,267 Revenues are attributed to countries based on the location of the store from which the sale occurred. Long-lived assets consist of property and equipment, goodwill and intangible assets.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2015
SUPPLEMENTAL CASH FLOW INFORMATION	18. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Years Ended December 31, 2015 2014 2013 Interest paid $ 4,993 $ 4,393 $ 5,334 Income taxes net of refunds $ 103,261 $ 82,850 $ 73,168

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA	12 Months Ended
	Dec. 31, 2015
SELECTED QUARTERLY FINANCIAL DATA	WATSCO, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) 1st 2nd 3rd 4th Total Year Ended December 31, 2015 Revenues (1) $ 808,972 $ 1,223,439 $ 1,177,012 $ 903,816 $ 4,113,239 Gross profit 204,225 295,245 285,846 222,041 1,007,357 Net income attributable to Watsco, Inc. $ 23,048 $ 65,423 $ 57,968 $ 26,490 $ 172,929 Earnings per share for Common and Class B common stock (2): Basic $ 0.65 $ 1.86 $ 1.64 $ 0.75 $ 4.91 Diluted $ 0.65 $ 1.85 $ 1.64 $ 0.75 $ 4.90 Year Ended December 31, 2014 Revenues (1) $ 762,568 $ 1,170,186 $ 1,134,999 $ 876,787 $ 3,944,540 Gross profit 188,069 279,273 274,765 214,295 956,402 Net income attributable to Watsco, Inc. $ 16,753 $ 56,101 $ 54,461 $ 24,072 $ 151,387 Earnings per share for Common and Class B common stock (2): Basic $ 0.48 $ 1.60 $ 1.56 $ 0.69 $ 4.33 Diluted $ 0.48 $ 1.60 $ 1.56 $ 0.69 $ 4.32 (1) Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. 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 sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions. (2) Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation	Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “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. At December 31, 2015, we operated from 566 locations in 37 U.S. states, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements 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.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income.
Use of Estimates	Use of Estimates The preparation of consolidated 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 consolidated 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.
Cash Equivalents	Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2015 and 2014, the allowance for doubtful accounts totaled $5,305 and $5,461, respectively.
Inventories	Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost or market using a weighted-average cost basis and the first-in, first-out methods. As part of the valuation process, inventories are adjusted to reflect excess, slow-moving and damaged inventories at their estimated net realizable value. Inventory policies are reviewed periodically, reflecting current risks, trends and changes in industry conditions. A reserve for estimated inventory shrinkage is also maintained to consider inventory shortages determined from cycle counts and physical inventories.
Vendor Rebates	Vendor Rebates We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2015 and 2014, we had $8,086 and $10,088, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year.
Marketable Securities	Marketable Securities Investments in marketable equity securities are classified as available-for-sale and are included in other assets in our consolidated balance sheets. These equity securities are recorded at fair value using the specific identification method with unrealized holding losses, net of deferred taxes, included in accumulated other comprehensive loss within shareholders’ equity. Dividend and interest income are recognized in the statements of income when earned.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 years. Leasehold improvements are amortized over the shorter of the respective lease terms or estimated useful lives. Furniture and fixtures are depreciated over estimated useful lives ranging from 5-7 years. Estimated useful lives for other depreciable assets range from 3-10 years.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of impairment loss. Other intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and non-compete agreements. Indefinite lived intangibles not subject to amortization are assessed for impairment at least annually, or more frequently if events or changes in circumstances indicate they may be impaired, by comparing the fair value of the intangible asset to its carrying amount to determine if a write-down to fair value is required. Finite lived intangible assets are amortized using the straight-line method over their respective estimated useful lives. We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests.
Long-Lived Assets	Long-Lived Assets Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2015, there were no such events or circumstances.
Fair Value Measurements	Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Revenue Recognition	Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment and related parts and supplies and is recorded when shipment of products or delivery of services has occurred. Substantially all customer returns relate to products that are returned under warranty obligations underwritten by manufacturers, effectively mitigating our risk of loss for customer returns. Taxes collected from our customers and remitted to governmental authorities are presented in our consolidated statements of income on a net basis.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013, were $21,150, $19,754 and $22,418, respectively.
Shipping and Handling	Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products is included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2015, 2014 and 2013, were $41,345, $43,324 and $39,395, respectively.
Share-Based Compensation	Share-Based Compensation The fair value of stock option and non-vested restricted stock awards are expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of income. Cash flows from the tax benefits resulting from tax deductions in excess of the compensation expense recognized for those options (windfall tax benefits) are classified as financing cash flows. Tax benefits resulting from tax deductions in excess of share-based compensation expense recognized are credited to paid-in capital in the consolidated balance sheets.
Income Taxes	Income Taxes We record United States federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated United States federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.
Earnings per Share	Earnings per Share We compute earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of our non-vested restricted stock are considered participating securities because these awards contain a non-forfeitable right to dividends irrespective of whether the awards ultimately vest. Under the two-class method, earnings per common share for our Common and Class B common stock is computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of shares of Common and Class B common stock outstanding for the period. In applying the two-class method, undistributed earnings are allocated to Common stock, Class B common stock and participating securities based on the weighted-average shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity We have used derivative instruments, including forward contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 13 for additional information pertaining to derivative instruments.
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. In July 2015, the FASB deferred the effective date of this standard by one year. As a result, this standard is effective for our interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We will adopt this guidance on January 1, 2018, and are currently evaluating the impact on our consolidated financial statements. Presentation of 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 consolidated financial statements. Measurement of Inventory In July 2015, the FASB issued guidance that simplifies the measurement of inventory by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies to all inventory that is measured using first-in, first-out or average cost methods. This guidance must be applied prospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance can be applied either prospectively or retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated 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 $3,214 and $4,630 at December 31, 2015 and 2014, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Schedule of Basic and Diluted Earnings Per Common Share	The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Years Ended December 31, 2015 2014 2013 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 172,929 $ 151,387 $ 127,723 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 13,634 11,444 9,064 Earnings allocated to Watsco, Inc. shareholders $ 159,295 $ 139,943 $ 118,659 Weighted-average common shares outstanding - Basic 32,435,961 32,308,073 32,195,598 Basic earnings per share for Common and Class B common stock $ 4.91 $ 4.33 $ 3.69 Allocation of earnings for Basic: Common stock $ 146,037 $ 128,214 $ 108,690 Class B common stock 13,258 11,729 9,969 $ 159,295 $ 139,943 $ 118,659 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 172,929 $ 151,387 $ 127,723 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 13,626 11,435 9,053 Earnings allocated to Watsco, Inc. shareholders $ 159,303 $ 139,952 $ 118,670 Weighted-average common shares outstanding - Basic 32,435,961 32,308,073 32,195,598 Effect of dilutive stock options 44,395 50,781 62,470 Weighted-average common shares outstanding - Diluted 32,480,356 32,358,854 32,258,068 Diluted earnings per share for Common and Class B common stock $ 4.90 $ 4.32 $ 3.68

OTHER COMPREHENSIVE LOSS (Table

OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 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: Years Ended December 31, 2015 2014 2013 Foreign currency translation adjustment $ (39,378 ) $ (21,117 ) $ (16,365 ) Unrealized gain on cash flow hedging instruments 3,716 384 — Income tax expense (1,003 ) (104 ) — Unrealized gain on cash flow hedging instruments, net of tax 2,713 280 — Reclassification of gain on cash flow hedging instruments into earnings (2,730 ) — — Income tax expense 737 — — Reclassification of gain on cash flow hedging instruments into earnings, net of tax (1,993 ) — — Unrealized (loss) gain on available-for-sale securities (12 ) 1 39 Income tax benefit (expense) 4 — (15 ) Unrealized (loss) gain on available-for-sale securities, net of tax (8 ) 1 24 Other comprehensive loss $ (38,666 ) $ (20,836 ) $ (16,341 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2015 2014 2013 Foreign currency translation adjustment: Beginning balance $ (23,623 ) $ (11,181 ) $ (1,785 ) Current period other comprehensive loss (23,581 ) (12,442 ) (9,396 ) Ending balance (47,204 ) (23,623 ) (11,181 ) Cash flow hedging instruments: Beginning balance 168 — — Current period other comprehensive income 1,628 168 — Less reclassification adjustment (1,196 ) — — Ending balance 600 168 — Available-for-sale securities: Beginning balance (292 ) (293 ) (317 ) Current period other comprehensive (loss) income (8 ) 1 24 Ending balance (300 ) (292 ) (293 ) Accumulated other comprehensive loss, net of tax $ (46,904 ) $ (23,747 ) $ (11,474 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment, Net	Property and equipment, net, consists of: December 31, 2015 2014 Land $ 820 $ 853 Buildings and improvements 69,675 58,915 Machinery, vehicles and equipment 43,150 43,124 Furniture and fixtures 14,311 14,001 Computer hardware and software 38,876 33,314 166,832 150,207 Accumulated depreciation and amortization (104,117 ) (96,727 ) $ 62,715 $ 53,480

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Components of Income Tax Expense	The components of income tax expense from our wholly-owned operations and investments and our controlling interest in joint ventures with Carrier are as follows: Years Ended December 31, 2015 2014 2013 U.S. Federal $ 85,585 $ 74,561 $ 62,616 State 9,431 10,325 9,234 Foreign 9,661 6,953 5,810 $ 104,677 $ 91,839 $ 77,660 Current $ 99,990 $ 91,550 $ 69,071 Deferred 4,687 289 8,589 $ 104,677 $ 91,839 $ 77,660
Reconciliation of Effective Income Tax Rate	Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2015 2014 2013 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit and other 2.3 3.0 3.3 Tax effects on foreign income (0.3 ) (1.0 ) (1.3 ) Effective income tax rate attributable to Watsco, Inc. 37.0 37.0 37.0 Taxes attributable to non-controlling interest (5.4 ) (6.4 ) (7.7 ) Effective income tax rate 31.6 % 30.6 % 29.3 %
Significant Components of Current and Long-Term Deferred Tax Assets and Liabilities	The following is a summary of the significant components of our current and long-term deferred tax assets and liabilities: December 31, 2015 2014 Current deferred tax assets: Capitalized inventory costs and inventory reserves $ 1,794 $ 3,262 Self-insurance reserves 519 759 Allowance for doubtful accounts 1,053 992 Other current deferred tax assets 1,921 1,588 Total current deferred tax assets (1) 5,287 6,601 Long-term deferred tax assets: Share-based compensation 23,603 20,108 Other long-term deferred tax assets 352 746 Net operating loss carryforwards 207 221 24,162 21,075 Valuation allowance — — Total long-term deferred tax assets (2) 24,162 21,075 Current deferred tax liabilities: Other current deferred tax liabilities (686 ) (536 ) Total current deferred tax liabilities (1) (686 ) (536 ) Long-term deferred tax liabilities: Deductible goodwill (83,868 ) (80,404 ) Depreciation (3,774 ) (2,992 ) Other long-term deferred tax liabilities (1,533 ) (1,320 ) Total long-term deferred tax liabilities (2) (89,175 ) (84,716 ) Net deferred tax liabilities $ (60,412 ) $ (57,576 ) (1) Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets. (2) Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.
Changes in Gross Unrecognized Tax Benefits	The changes in gross unrecognized tax benefits are as follows: Balance at December 31, 2012 $ 2,474 Additions based on tax positions related to the current year 673 Reductions due to lapse of applicable statute of limitations (12 ) Balance at December 31, 2013 3,135 Additions based on tax positions related to the current year 751 Reductions due to lapse of applicable statute of limitations (167 ) Balance at December 31, 2014 3,719 Additions based on tax positions related to the current year 871 Reductions due to lapse of applicable statute of limitations and tax assessments (1,077 ) Balance at December 31, 2015 $ 3,513

SHARE-BASED COMPENSATION AND 33

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Stock Option Activity	The following is a summary of stock option activity under the 2014 Plan and the 2001 Plan as of and for the year ended December 31, 2015: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at December 31, 2014 241,450 $ 73.62 Granted 153,250 123.59 Exercised (114,616 ) 65.65 Forfeited (22,750 ) 118.50 Options outstanding at December 31, 2015 257,334 $ 102.96 3.36 $ 4,494 Options exercisable at December 31, 2015 33,834 $ 73.89 1.53 $ 1,491
Summary of Non-Vested Restricted Stock Activity	The following is a summary of non-vested restricted stock activity as of and for the year ended December 31, 2015: Shares Weighted- Average Grant Date Fair Value Non-vested restricted stock outstanding at December 31, 2014 2,643,717 $ 45.21 Granted 200,479 114.55 Vested (20,000 ) 49.36 Forfeited (5,000 ) 110.36 Non-vested restricted stock outstanding at December 31, 2015 2,819,196 $ 49.99
Valuation Assumptions Used for Stock Option Awards	The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2015 2014 2013 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 1.25 % 1.35 % 0.82 % Expected volatility 20.96 % 22.07 % 24.56 % Expected dividend yield 2.29 % 1.69 % 2.20 % Grant date fair value $ 17.17 $ 15.75 $ 13.33
Share-Based Compensation Expense	The following table provides information on share-based compensation expense: Years Ended December 31, 2015 2014 2013 Stock options $ 952 $ 801 $ 884 Non-vested restricted stock 11,644 10,672 9,083 Share-based compensation expense $ 12,596 $ 11,473 $ 9,967

GOODWILL AND OTHER INTANGIBLE34

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2013 $ 392,610 Foreign currency translation adjustment (5,299 ) Balance at December 31, 2014 387,311 Foreign currency translation adjustment (9,001 ) Balance at December 31, 2015 $ 378,310
Indefinite Lived Intangible Assets	Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2015 2014 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 118,205 $ 131,271 Finite lived intangible assets: Customer relationships 10-15 years 68,981 76,595 Trade name 10 years 1,150 1,150 Non-compete agreements 7 years 369 369 Accumulated amortization (28,224 ) (22,909 ) Finite lived intangible assets, net 42,276 55,205 $ 160,481 $ 186,476
Finite lived intangible assets	Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2015 2014 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 118,205 $ 131,271 Finite lived intangible assets: Customer relationships 10-15 years 68,981 76,595 Trade name 10 years 1,150 1,150 Non-compete agreements 7 years 369 369 Accumulated amortization (28,224 ) (22,909 ) Finite lived intangible assets, net 42,276 55,205 $ 160,481 $ 186,476

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2015
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges	The impact from foreign exchange derivative instruments designated as cash flow hedges were as follows: Years Ended December 31, 2015 2014 Gain recorded in accumulated other comprehensive loss $ 3,716 $ 384 Gain reclassified from accumulated other comprehensive loss into earnings $ (2,730 ) —
Fair Value of Derivative Instruments and Location in the 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 and accrued expenses and other current liabilities in our consolidated balance sheets. See Note 14. Asset Derivatives Liability Derivatives December 31, 2015 2014 2015 2014 Derivatives designated as hedging instruments $ 923 $ 384 $ 3 — Derivatives not designated as hedging instruments 326 260 4 — Total derivative instruments $ 1,249 $ 644 $ 7 —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 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: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 254 $ 254 — — Derivative financial instruments Other current assets $ 1,249 — $ 1,249 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 7 — $ 7 — 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 —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Future Minimum Lease Payments under Non-Cancelable Operating Leases	At December 31, 2015, future minimum payments under non-cancelable operating leases over each of the next five years and thereafter were as follows: 2016 $ 67,959 2017 52,405 2018 35,991 2019 22,112 2020 12,639 Thereafter 10,398 Total minimum payments $ 201,504

INFORMATION ABOUT GEOGRAPHIC 38

INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	12 Months Ended
	Dec. 31, 2015
Revenues and Long-Lived Assets by Geographical Area	Our operations are primarily within the United States, including Puerto Rico, Canada and Mexico. Products are also sold from the United States on an export-only basis to portions of Latin America and the Caribbean Basin. The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2015 2014 2013 Revenues: United States $ 3,710,977 $ 3,525,176 $ 3,325,114 Canada 263,908 300,289 318,165 Mexico 138,354 119,075 100,051 Total revenues $ 4,113,239 $ 3,944,540 $ 3,743,330 December 31, 2015 2014 Long-Lived Assets: United States $ 441,656 $ 434,910 Canada 154,437 187,064 Mexico 5,413 5,293 Total long-lived assets $ 601,506 $ 627,267

SUPPLEMENTAL CASH FLOW INFORM39

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information	Supplemental cash flow information was as follows: Years Ended December 31, 2015 2014 2013 Interest paid $ 4,993 $ 4,393 $ 5,334 Income taxes net of refunds $ 103,261 $ 82,850 $ 73,168

SELECTED QUARTERLY FINANCIAL 40

SELECTED QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2015
Selected Quarterly Financial Data	WATSCO, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) 1st 2nd 3rd 4th Total Year Ended December 31, 2015 Revenues (1) $ 808,972 $ 1,223,439 $ 1,177,012 $ 903,816 $ 4,113,239 Gross profit 204,225 295,245 285,846 222,041 1,007,357 Net income attributable to Watsco, Inc. $ 23,048 $ 65,423 $ 57,968 $ 26,490 $ 172,929 Earnings per share for Common and Class B common stock (2): Basic $ 0.65 $ 1.86 $ 1.64 $ 0.75 $ 4.91 Diluted $ 0.65 $ 1.85 $ 1.64 $ 0.75 $ 4.90 Year Ended December 31, 2014 Revenues (1) $ 762,568 $ 1,170,186 $ 1,134,999 $ 876,787 $ 3,944,540 Gross profit 188,069 279,273 274,765 214,295 956,402 Net income attributable to Watsco, Inc. $ 16,753 $ 56,101 $ 54,461 $ 24,072 $ 151,387 Earnings per share for Common and Class B common stock (2): Basic $ 0.48 $ 1.60 $ 1.56 $ 0.69 $ 4.33 Diluted $ 0.48 $ 1.60 $ 1.56 $ 0.69 $ 4.32 (1) Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. 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 sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions. (2) Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)EntityStateStore	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	3
Allowance for doubtful accounts	$ 5,305,000	$ 5,461,000
Capitalized vendor rebates	8,086,000	10,088,000
Goodwill and other intangible assets impairment	0	0	$ 0
Advertising expense	21,150,000	19,754,000	22,418,000
Shipping and handling costs	$ 41,345,000	$ 43,324,000	$ 39,395,000
Minimum | Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Minimum | Other Depreciable Assets
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Minimum | Furniture and fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives in years	5 years
Maximum | Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives in years	40 years
Maximum | Other Depreciable Assets
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Maximum | Furniture and fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives in years	7 years
Watsco, Inc.
Significant Accounting Policies [Line Items]
Number of locations from which entity operates | Store	566
Number of states in which entity operates | State	37

Schedule of Basic and Diluted E

Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sep. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 24,072		$ 54,461		$ 56,101		$ 16,753		$ 172,929		$ 151,387		$ 127,723
Less: distributed and undistributed earnings allocated to non-vested restricted common stock																	13,634		11,444		9,064
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 159,295		$ 139,943		$ 118,659
Weighted-average common shares outstanding - Basic																	32,435,961		32,308,073		32,195,598
Basic earnings per share for Common and Class B common stock	$ 0.75	[1]	$ 1.64	[1]	$ 1.86	[1]	$ 0.65	[1]	$ 0.69	[1]	$ 1.56	[1]	$ 1.60	[1]	$ 0.48	[1]	$ 4.91	[1]	$ 4.33	[1]	$ 3.69
Net income attributable to Watsco, Inc. shareholders	$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 24,072		$ 54,461		$ 56,101		$ 16,753		$ 172,929		$ 151,387		$ 127,723
Less: distributed and undistributed earnings allocated to non-vested restricted common stock																	13,626		11,435		9,053
Earnings allocated to Watsco, Inc. shareholders - Diluted																	$ 159,303		$ 139,952		$ 118,670
Weighted-average common shares outstanding - Basic																	32,435,961		32,308,073		32,195,598
Effect of dilutive stock options																	44,395		50,781		62,470
Weighted-average common shares outstanding - Diluted																	32,480,356		32,358,854		32,258,068
Diluted earnings per share for Common and Class B common stock	$ 0.75	[1]	$ 1.64	[1]	$ 1.85	[1]	$ 0.65	[1]	$ 0.69	[1]	$ 1.56	[1]	$ 1.60	[1]	$ 0.48	[1]	$ 4.90	[1]	$ 4.32	[1]	$ 3.68
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 146,037		$ 128,214		$ 108,690
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 13,258		$ 11,729		$ 9,969
[1]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,699,710	2,707,725	2,704,832
Anti-dilutive stock options excluded from earnings per share	67,014	9,984	1,066

Schedule of Tax Effects Allocat

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ (39,378)	$ (21,117)	$ (16,365)
Unrealized gain on cash flow hedging instruments	3,716	384
Income tax expense	(1,003)	(104)
Unrealized gain on cash flow hedging instruments, net of tax	2,713	280
Reclassification of gain on cash flow hedging instruments into earnings	(2,730)
Income tax expense	737
Reclassification of gain on cash flow hedging instruments into earnings, net of tax	(1,993)
Unrealized (loss) gain on available-for-sale securities	(12)	1	39
Income tax benefit (expense)	4		(15)
Unrealized (loss) gain on available-for-sale securities, net of tax	(8)	1	24
Other comprehensive loss	$ (38,666)	$ (20,836)	$ (16,341)

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (23,747)	$ (11,474)
Ending balance	(46,904)	(23,747)	$ (11,474)
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(23,623)	(11,181)	(1,785)
Current period other comprehensive (loss) income	(23,581)	(12,442)	(9,396)
Ending balance	(47,204)	(23,623)	(11,181)
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	168
Current period other comprehensive (loss) income	1,628	168
Less reclassification adjustment	(1,196)
Ending balance	600	168
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(292)	(293)	(317)
Current period other comprehensive (loss) income	(8)	1	24
Ending balance	$ (300)	$ (292)	$ (293)

Supplier Concentration - Additi

Supplier Concentration - Additional Information (Detail) - Supplier Concentration Risk - Vendor	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Concentration Risk [Line Items]
Number of key suppliers	10
Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	84.00%	82.00%	81.00%
Carrier and Its Affiliates | Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	62.00%	61.00%	59.00%

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 166,832	$ 150,207
Accumulated depreciation and amortization	(104,117)	(96,727)
Property and equipment, net	62,715	53,480
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	820	853
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	69,675	58,915
Machinery, vehicles and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	43,150	43,124
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,311	14,001
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 38,876	$ 33,314

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 13,802	$ 12,158	$ 11,677

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 600,000
Revolving credit agreement maturity date	Jul. 1, 2019
Commitment fee percentage on unused portion of the commitment	0.15%
Borrowings under revolving credit agreement	$ 245,300	$ 303,199
Swingline Subfacility
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	90,000
Letter of Credit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	50,000
Multicurrency borrowing sublimit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 75,000
Minimum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion of the commitment	0.125%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion of the commitment	0.35%
London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread	1.00%
London Interbank Offer Rate | Minimum
Debt Instrument [Line Items]
Basis spread	0.875%
London Interbank Offer Rate | Maximum
Debt Instrument [Line Items]
Basis spread	2.50%
Prime Rate
Debt Instrument [Line Items]
Basis spread	0.00%
Prime Rate | Minimum
Debt Instrument [Line Items]
Basis spread	0.00%
Prime Rate | Maximum
Debt Instrument [Line Items]
Basis spread	1.50%

Components of Income Tax Expens

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components Of Income Tax Expense Benefit [Line Items]
U.S. Federal	$ 85,585	$ 74,561	$ 62,616
State	9,431	10,325	9,234
Foreign	9,661	6,953	5,810
Income tax expense	104,677	91,839	77,660
Current	99,990	91,550	69,071
Deferred	4,687	289	8,589
Income tax expense	$ 104,677	$ 91,839	$ 77,660

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Line Items]
Percentage of income attributable to wholly-owned operations and investments for which income tax expense and effective tax rate calculated	100.00%
Undistributed earnings of foreign subsidiaries	$ 113,000
Valuation allowance	0	$ 0
State and other net operating loss carry forwards	6,771
Gross unrecognized tax benefits	3,513	3,719	$ 3,135	$ 2,474
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	2,416	2,417
Estimated accrued interest and penalties resulting from unrecognized tax benefits	$ 384	$ 729
Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date	2,016
Maximum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date	2,035

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Effective Income Tax Rate [Line Items]
U.S. federal statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit and other	2.30%	3.00%	3.30%
Tax effects on foreign income	(0.30%)	(1.00%)	(1.30%)
Effective income tax rate attributable to Watsco, Inc.	37.00%	37.00%	37.00%
Taxes attributable to noncontrolling interest	(5.40%)	(6.40%)	(7.70%)
Effective income tax rate	31.60%	30.60%	29.30%

Significant Components of Curre

Significant Components of Current and Long-Term Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
Capitalized inventory costs and inventory reserves		$ 1,794	$ 3,262
Self-insurance reserves		519	759
Allowance for doubtful accounts		1,053	992
Other current deferred tax assets		1,921	1,588
Total current deferred tax assets	[1]	5,287	6,601
Share-based compensation		23,603	20,108
Other long-term deferred tax assets		352	746
Net operating loss carryforwards		207	221
Total long-term deferred tax assets		24,162	21,075
Valuation allowance		0	0
Total long-term deferred tax assets	[2]	24,162	21,075
Other current deferred tax liabilities		(686)	(536)
Total current deferred tax liabilities	[1]	(686)	(536)
Deductible goodwill		(83,868)	(80,404)
Depreciation		(3,774)	(2,992)
Other long-term deferred tax liabilities		(1,533)	(1,320)
Total long-term deferred tax liabilities	[2]	(89,175)	(84,716)
Net deferred tax liabilities		$ (60,412)	$ (57,576)
[1]	Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets.
[2]	Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.

Changes in Gross Unrecognized T

Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Contingency [Line Items]
Beginning balance	$ 3,719	$ 3,135	$ 2,474
Additions based on tax positions related to the current year	871	751	673
Reductions due to lapse of applicable statute of limitations and tax assessments	(1,077)	(167)	(12)
Ending balance	$ 3,513	$ 3,719	$ 3,135

Share-Based Compensation and 55

Share-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)planAge$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans for employees | plan	2
Options of common stock outstanding	257,334	241,450
Total intrinsic value of stock options exercised | $	$ 7,525	$ 3,746	$ 2,753
Cash received from Common stock issued | $	4,850	3,324	1,554
Common stock contribution to 401(k) plan | $	$ 1,963	$ 1,759	$ 1,689
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that may be granted	1,500,000
Shares reserved for future grant	505,558
Number of days under which shares to be purchased by employee on such available	90 days
Discount allowed to employees to purchase share	5.00%
Shares purchased under ESPP	6,463	6,995	5,844
Average price of the shares purchased by employees | $ / shares	$ 112.53	$ 90.89	$ 79.46
Additional shares issued resulting from cash dividends reinvested in common stock	3,183	2,953	1,899
Net proceeds from shares issued under ESPP | $	$ 1,107	$ 921	$ 631
Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares delivered as payment for tax withholdings related to stock option exercises, shares			13,227
Shares delivered as payment for tax withholdings related to stock option exercises, market value | $			$ 1,227
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price that share-based compensation awards are granted at	100.00%
Aggregate shares of common stock that may be granted	2,000,000
Shares reserved for future grant	1,681,992
Contractual term of stock option awards	5 years
2014 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2014 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
2014 Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded under plan	212,450
2014 Plan | Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future grant	45,421
2014 Plan | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded under plan	150,979
401(k) Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock contribution to 401(k) Plan, shares	18,343	18,309	22,551
Common stock contribution to 401(k) plan | $	$ 1,963	$ 1,759	$ 1,689
2001 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that may be granted	0
Contractual term of stock option awards	5 years
Options of common stock outstanding	97,500
2001 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2001 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of non-vested (restricted) stock | $ / shares	$ 114.55	$ 96.84	$ 80.21
Fair value of non-vested stock that vested | $	$ 2,468	$ 5,789
Tax benefits realized from share-based compensation | $	$ 911	$ 2,142
Shares, Vested	20,000		0
Shares withheld as payment for tax withholdings related to share based compensation, shares	7,206	21,028
Shares withheld as payment for tax withholdings related to share based compensation, market value | $	$ 889	$ 2,125
Unrecognized share-based compensation expense | $	$ 83,762
Weighted-average period for recognition of share-based compensation expense, in years	11 years 3 months 18 days
Non-Vested Restricted Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 56,000
Weighted-average period for recognition of share-based compensation expense, in years	11 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	86
Shares of non-vested (restricted) stock obligated to issue in connection with incentive compensation agreements	58,893
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefits realized from share-based compensation | $	$ 2,469	936	$ 1,557
Unrecognized share-based compensation expense | $	$ 1,816
Weighted-average period for recognition of share-based compensation expense, in years	1 year 9 months 18 days
Fair value of stock options vested | $	$ 856	$ 1,145	$ 822
Stock Options | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	26,006	5,454	4,749
Shares withheld as payment for tax withholdings related to share based compensation, market value | $	$ 3,251	$ 490	$ 450

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding beginning balance | shares	241,450
Options, Granted | shares	153,250
Options, Exercised | shares	(114,616)
Options, Forfeited | shares	(22,750)
Options, Outstanding ending balance | shares	257,334
Options, Exercisable | shares	33,834
Weighted-Average Exercise Price, Outstanding beginning balance | $ / shares	$ 73.62
Weighted-Average Exercise Price, Granted | $ / shares	123.59
Weighted-Average Exercise Price, Exercised | $ / shares	65.65
Weighted-Average Exercise Price, Forfeited | $ / shares	118.50
Weighted-Average Exercise Price, Outstanding ending balance | $ / shares	102.96
Weighted-Average Exercise Price, Exercisable | $ / shares	$ 73.89
Weighted-Average Remaining Contractual Term (in years), Outstanding	3 years 4 months 10 days
Weighted-Average Remaining Contractual Term (in years), Exercisable	1 year 6 months 11 days
Aggregate Intrinsic Value, Outstanding | $	$ 4,494
Aggregate Intrinsic Value, Exercisable | $	$ 1,491

Summary of Non-Vested Restricte

Summary of Non-Vested Restricted Stock Activity (Detail) - Non-Vested Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested beginning balance	2,643,717
Shares, Granted	200,479
Shares, Vested	(20,000)		0
Shares, Forfeited	(5,000)
Shares, Non-vested ending balance	2,819,196	2,643,717
Weighted-Average Grant Date Fair Value, Non-vested beginning balance	$ 45.21
Weighted-Average Grant Date Fair Value, Granted	114.55	$ 96.84	$ 80.21
Weighted-Average Grant Date Fair Value, Vested	49.36
Weighted-Average Grant Date Fair Value, Forfeited	110.36
Weighted-Average Grant Date Fair Value, Non-vested ending balance	$ 49.99	$ 45.21

Weighted-Average Assumptions Us

Weighted-Average Assumptions Used for Stock Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	4 years 3 months	4 years 3 months	4 years 3 months
Risk-free interest rate	1.25%	1.35%	0.82%
Expected volatility	20.96%	22.07%	24.56%
Expected dividend yield	2.29%	1.69%	2.20%
Grant date fair value	$ 17.17	$ 15.75	$ 13.33

Share-Based Compensation Expens

Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 12,596	$ 11,473	$ 9,967
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	952	801	884
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 11,644	$ 10,672	$ 9,083

Purchase of Ownership Interes60

Purchase of Ownership Interest in Joint Venture - Additional Information (Detail) - Carrier Enterprise I $ in Thousands	Jul. 01, 2014USD ($)
Business Acquisition [Line Items]
Additional ownership interest acquired	10.00%
Cash consideration	$ 87,735
Controlling interest, ownership percentage	80.00%

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 387,311	$ 392,610
Foreign currency translation adjustment	(9,001)	(5,299)
Goodwill, Ending Balance	$ 378,310	$ 387,311

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets [Line Items]
Indefinite lived intangible assets - Trade names, trademarks and distribution rights	$ 118,205	$ 131,271
Finite lived intangible assets:
Accumulated amortization	(28,224)	(22,909)
Finite lived intangible assets, net	42,276	55,205
Intangible assets, net	160,481	186,476
Customer Relationships
Finite lived intangible assets:
Finite lived intangible assets	68,981	76,595
Trade Name
Finite lived intangible assets:
Finite lived intangible assets	1,150	1,150
Noncompete Agreements
Finite lived intangible assets:
Finite lived intangible assets	$ 369	$ 369

Goodwill and Other Intangible63

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill And Intangible Assets [Line Items]
Amortization expense related to finite lived intangible assets	$ 5,315	$ 5,769	$ 6,029
Amortization of finite lived intangible assets for 2016	5,100
Amortization of finite lived intangible assets for 2017	5,100
Amortization of finite lived intangible assets for 2018	5,100
Amortization of finite lived intangible assets for 2019	5,100
Amortization of finite lived intangible assets for 2020	$ 5,100

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 1999
Stockholders Equity Note [Line Items]
Preferred stock outstanding	0	0
Number of shares authorized to be repurchased			7,500,000
Cost of repurchased shares	$ 114,425	$ 114,425
Remaining number of shares authorized to be repurchased	1,129,087
Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled	One
Percentage of Board entitled to elect	25.00%
Treasury stock, shares	6,322,650	6,322,650
Class B Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled	Ten
Treasury stock, shares	48,263	48,263

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Financial Instrument [Line Items]
Estimated fair value of contingent liability	$ 0
Standby Letters of Credit
Financial Instrument [Line Items]
Fair value of contingent liability	2,690,000	$ 2,662,000
Performance Bonds
Financial Instrument [Line Items]
Fair value of contingent liability	$ 4,000,000	$ 2,300,000

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 15,000
Contract expiring terms	2016-03
Gain from foreign currency forward contracts not designated as hedging instruments	$ 2,552	$ 142	$ 315
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 23,500
Contract maturity period	One year or less
Contract expiring terms	2016-06
Pre-tax gain to be reclassified into earnings within the next 12 months	$ 1,370

Impact from Foreign Exchange De

Impact from Foreign Exchange Derivative Instruments Designated in Cash Flow Hedges (Detail) - Cash Flow Hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	$ 3,716	$ 384
Gain reclassified from accumulated other comprehensive loss into earnings	$ (2,730)

Fair Value of Derivative Instru

Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 1,249	$ 644
Derivative instruments, liabilities derivatives	7
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	923	384
Derivative instruments, liabilities derivatives	3
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	326	$ 260
Derivative instruments, liabilities derivatives	$ 4

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other assets
Assets:
Available-for-sale securities	$ 254	$ 266
Other Current Assets
Assets:
Derivative financial instruments	1,249	644
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	7
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	254	266
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	1,249	$ 644
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 7

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 3,214	$ 4,630
Maximum exposure to loss related to involvement with variable interest entity	$ 4,500
Operating leases maximum maturity date	2,025
Rental expense	$ 82,581	$ 81,155	$ 79,585
Carrier and Its Affiliates
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 19,000

Future Minimum Leases Payments

Future Minimum Leases Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2015USD ($)
Operating Leases Future Minimum Payments Due [Line Items]
2,016	$ 67,959
2,017	52,405
2,018	35,991
2,019	22,112
2,020	12,639
Thereafter	10,398
Total minimum payments	$ 201,504

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Supplier Concentration Risk - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	84.00%	82.00%	81.00%
Carrier and Its Affiliates
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	$ 61,656	$ 38,195	$ 30,819
Carrier and Its Affiliates | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	62.00%	61.00%	59.00%

Revenues and Long-Lived Assets

Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2015		Sep. 30, 2015	[1]	Jun. 30, 2015	[1]	Mar. 31, 2015	[1]	Dec. 31, 2014		Sep. 30, 2014	[1]	Jun. 30, 2014	[1]	Mar. 31, 2014	[1]	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Geographic Area Information [Line Items]
Revenues	$ 903,816	[1]	$ 1,177,012		$ 1,223,439		$ 808,972		$ 876,787	[1]	$ 1,134,999		$ 1,170,186		$ 762,568		$ 4,113,239	[1]	$ 3,944,540	[1]	$ 3,743,330
Long-Lived Assets	601,506								627,267								601,506		627,267
UNITED STATES
Geographic Area Information [Line Items]
Revenues																	3,710,977		3,525,176		3,325,114
Long-Lived Assets	441,656								434,910								441,656		434,910
CANADA
Geographic Area Information [Line Items]
Revenues																	263,908		300,289		318,165
Long-Lived Assets	154,437								187,064								154,437		187,064
MEXICO
Geographic Area Information [Line Items]
Revenues																	138,354		119,075		$ 100,051
Long-Lived Assets	$ 5,413								$ 5,293								$ 5,413		$ 5,293
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. 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 sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.

Supplemental Cash Flow Inform74

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flow Supplemental Disclosures [Line Items]
Interest paid	$ 4,993	$ 4,393	$ 5,334
Income taxes net of refunds	$ 103,261	$ 82,850	$ 73,168

Selected Quarterly Financial 75

Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014		Sep. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Quarterly Financial Data [Line Items]
Revenues	$ 903,816	[1]	$ 1,177,012	[1]	$ 1,223,439	[1]	$ 808,972	[1]	$ 876,787	[1]	$ 1,134,999	[1]	$ 1,170,186	[1]	$ 762,568	[1]	$ 4,113,239	[1]	$ 3,944,540	[1]	$ 3,743,330
Gross profit	222,041		285,846		295,245		204,225		214,295		274,765		279,273		188,069		1,007,357		956,402		899,253
Net income attributable to Watsco, Inc.	$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 24,072		$ 54,461		$ 56,101		$ 16,753		$ 172,929		$ 151,387		$ 127,723
Earnings per share for Common and Class B common stock:
Basic	$ 0.75	[2]	$ 1.64	[2]	$ 1.86	[2]	$ 0.65	[2]	$ 0.69	[2]	$ 1.56	[2]	$ 1.60	[2]	$ 0.48	[2]	$ 4.91	[2]	$ 4.33	[2]	$ 3.69
Diluted	$ 0.75	[2]	$ 1.64	[2]	$ 1.85	[2]	$ 0.65	[2]	$ 0.69	[2]	$ 1.56	[2]	$ 1.60	[2]	$ 0.48	[2]	$ 4.90	[2]	$ 4.32	[2]	$ 3.68
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. 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 sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.
[2]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.