Watsco (WSO) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	WSO
Entity Registrant Name	WATSCO INC
Entity Central Index Key	105,016
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,353,739
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,117,336

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues	$ 1,214,435	$ 1,223,439	$ 2,065,859	$ 2,032,411
Cost of sales	922,574	928,194	1,561,551	1,532,941
Gross profit	291,861	295,245	504,308	499,470
Selling, general and administrative expenses	174,271	170,386	336,050	327,603
Operating income	117,590	124,859	168,258	171,867
Interest expense, net	1,054	1,630	2,040	3,007
Income before income taxes	116,536	123,229	166,218	168,860
Income taxes	35,112	38,988	50,620	53,319
Net income	81,424	84,241	115,598	115,541
Less: net income attributable to non-controlling interest	16,803	18,818	25,440	27,070
Net income attributable to Watsco, Inc.	$ 64,621	$ 65,423	$ 90,158	$ 88,471
Earnings per share for Common and Class B common stock:
Basic	$ 1.82	$ 1.86	$ 2.55	$ 2.52
Diluted	$ 1.82	$ 1.85	$ 2.54	$ 2.51

Condensed Consolidated Unaudit3

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income	$ 81,424	$ 84,241	$ 115,598	$ 115,541
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	1,193	2,972	14,886	(16,903)
Unrealized (loss) gain on cash flow hedging instruments	(1,082)	(241)	(1,875)	1,385
Reclassification of loss (gain) on cash flow hedging instruments into earnings	1,176	(997)	398	(1,134)
Unrealized (loss) gain on available-for-sale securities	(18)	14	(9)	21
Other comprehensive income (loss)	1,269	1,748	13,400	(16,631)
Comprehensive income	82,693	85,989	128,998	98,910
Less: comprehensive income attributable to non-controlling interest	17,300	19,516	30,640	20,332
Comprehensive income attributable to Watsco, Inc.	$ 65,393	$ 66,473	$ 98,358	$ 78,578

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 30,544	$ 35,229
Accounts receivable, net	606,510	451,079
Inventories	749,333	673,967
Other current assets	20,438	20,990
Total current assets	1,406,825	1,181,265
Property and equipment, net	60,311	62,715
Goodwill	381,496	378,310
Intangible assets, net	165,537	160,481
Other assets	5,422	5,671
Total assets	2,019,591	1,788,442
Current liabilities:
Current portion of other long-term obligations	195	184
Short-term borrowings	793
Accounts payable	273,315	145,162
Accrued expenses and other current liabilities	132,246	124,955
Total current liabilities	406,549	270,301
Long-term obligations:
Borrowings under revolving credit agreement	267,348	245,300
Other long-term obligations, net of current portion	443	514
Total long-term obligations	267,791	245,814
Deferred income taxes and other liabilities	72,011	68,606
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,328	18,308
Preferred stock, $0.50 par value	0	0
Paid-in capital	610,255	602,522
Accumulated other comprehensive loss, net of tax	(38,704)	(46,904)
Retained earnings	525,270	495,276
Treasury stock, at cost	(114,425)	(114,425)
Total Watsco, Inc. shareholders' equity	1,003,303	957,310
Non-controlling interest	269,937	246,411
Total shareholders' equity	1,273,240	1,203,721
Total liabilities and shareholders' equity	2,019,591	1,788,442
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,579	$ 2,533

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common stock, par value	$ 0.50	$ 0.50
Preferred stock, par value	0.50	0.50
Class B Common Stock
Common stock, par value	$ 0.50	$ 0.50

Condensed Consolidated Unaudit6

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 115,598	$ 115,541
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	10,043	9,409
Share-based compensation	5,474	5,840
Non-cash contribution to 401(k) plan	2,348	1,963
Deferred income tax provision	2,261	3,009
Provision for doubtful accounts	1,329	476
Gain on sale of property and equipment	(356)	(366)
Excess tax benefits from share-based compensation		(1,774)
Changes in operating assets and liabilities:
Accounts receivable	(153,702)	(168,339)
Inventories	(72,370)	(124,477)
Accounts payable and other liabilities	130,840	84,894
Other, net	468	(303)
Net cash provided by (used in) operating activities	41,933	(74,127)
Cash flows from investing activities:
Capital expenditures	(5,618)	(14,633)
Proceeds from sale of property and equipment	624	623
Net cash used in investing activities	(4,994)	(14,010)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(60,164)	(49,165)
Distributions to non-controlling interest	(7,114)	(3,654)
Net repayments of other long-term obligations	(60)	(83)
Excess tax benefits from share-based compensation		1,774
Proceeds from short-term borrowings	793	2,569
Net proceeds from issuances of common stock	2,842	3,235
Net proceeds under revolving credit agreement	22,025	131,146
Net cash (used in) provided by financing activities	(41,678)	85,822
Effect of foreign exchange rate changes on cash and cash equivalents	54	(281)
Net decrease in cash and cash equivalents	(4,685)	(2,596)
Cash and cash equivalents at beginning of period	35,229	24,447
Cash and cash equivalents at end of period	$ 30,544	$ 21,851

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Basis of Consolidation Watsco, Inc. and its subsidiaries (collectively, “Watsco,” or “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying June 30, 2016 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns, primarily during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is fairly consistent during the year, subject to weather and economic conditions, including their effect on the number of housing completions. Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. The core principle is that a company will recognize revenue to reflect the transfer of goods or services to customers at an amount that the company expects to be entitled to in exchange for those goods or services. 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. 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. Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of this guidance on our consolidated financial statements. Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance that will require that 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 effective retrospectively for interim and annual reporting periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on our consolidated financial statements. Share-Based Payments In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires that all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We elected to early adopt the amended guidance during the quarter ended June 30, 2016, which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in 2016. We elected to apply the presentation requirements for cash flows related to excess tax benefits prospectively. The accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes are required to be recorded. We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $2,307 for the quarter and six months ended June 30, 2016 and impacted our previously reported quarterly results for March 31, 2016 as follows: Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in capital $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
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: Quarter Ended Six Months Ended 2016 2015 2016 2015 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 64,621 $ 65,423 $ 90,158 $ 88,471 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,254 5,183 7,304 6,922 Earnings allocated to Watsco, Inc. shareholders $ 59,367 $ 60,240 $ 82,854 $ 81,549 Weighted-average common shares outstanding – Basic 32,574,901 32,427,088 32,543,354 32,402,262 Basic earnings per share for Common and Class B common stock $ 1.82 $ 1.86 $ 2.55 $ 2.52 Allocation of earnings for Basic: Common stock $ 54,411 $ 55,179 $ 75,930 $ 74,692 Class B common stock 4,956 5,061 6,924 6,857 $ 59,367 $ 60,240 $ 82,854 $ 81,549 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 64,621 $ 65,423 $ 90,158 $ 88,471 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,251 5,179 7,302 6,917 Earnings allocated to Watsco, Inc. shareholders $ 59,370 $ 60,244 $ 82,856 $ 81,554 Weighted-average common shares outstanding – Basic 32,574,901 32,427,088 32,543,354 32,402,262 Effect of dilutive stock options 31,435 50,174 32,972 52,036 Weighted-average common shares outstanding – Diluted 32,606,336 32,477,262 32,576,326 32,454,298 Diluted earnings per share for Common and Class B common stock $ 1.82 $ 1.85 $ 2.54 $ 2.51 Anti-dilutive stock options not included above 714 2,363 16,363 54,535 Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At June 30, 2016 and 2015, our outstanding Class B common stock was convertible into 2,719,495 and 2,724,464 shares of our Common stock, respectively.

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2016
OTHER COMPREHENSIVE INCOME (LOSS)	3. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as its functional currency and changes in the unrealized (losses) gains on cash flow hedging instruments and available-for-sale securities. The tax effects allocated to each component of other comprehensive income (loss) were as follows: Quarter Ended Six Months Ended 2016 2015 2016 2015 Foreign currency translation adjustment $ 1,193 $ 2,972 $ 14,886 $ (16,903 ) Unrealized (loss) gain on cash flow hedging instruments (1,483 ) (329 ) (2,569 ) 1,898 Income tax benefit (expense) 401 88 694 (513 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (1,082 ) (241 ) (1,875 ) 1,385 Reclassification of loss (gain) on cash flow hedging instruments into earnings 1,611 (1,366 ) 545 (1,554 ) Income tax (benefit) expense (435 ) 369 (147 ) 420 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 1,176 (997 ) 398 (1,134 ) Unrealized (loss) gain on available-for-sale securities (28 ) 23 (15 ) 34 Income tax benefit (expense) 10 (9 ) 6 (13 ) Unrealized (loss) gain on available-for-sale securities, net of tax (18 ) 14 (9 ) 21 Other comprehensive income (loss) $ 1,269 $ 1,748 $ 13,400 $ (16,631 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: S ix Months Ended June 30, 2016 2015 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) Current period other comprehensive income (loss) 9,095 (10,065 ) Ending balance $ (38,109 ) $ (33,688 ) Cash flow hedging instruments: Beginning balance $ 600 $ 168 Current period other comprehensive (loss) income (1,125 ) 831 Less reclassification adjustment 239 (680 ) Ending balance $ (286 ) $ 319 Available-for-sale securities: Beginning balance $ (300 ) $ (292 ) Current period other comprehensive (loss) income (9 ) 21 Ending balance $ (309 ) $ (271 ) Accumulated other comprehensive loss, net of tax $ (38,704 ) $ (33,640 )

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2016
DERIVATIVES	4. DERIVATIVES We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have had on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive income (loss) to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at June 30, 2016, 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 June 30, 2016 was $29,100, and such contracts have varying terms expiring through December 2016. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Six Months Ended 2016 2015 2016 2015 (Loss) gain recorded in accumulated other comprehensive loss $ (1,483 ) $ (329 ) $ (2,569 ) $ 1,898 (Loss) gain reclassified from accumulated other comprehensive loss into earnings $ (1,611 ) $ 1,366 $ (545 ) $ 1,554 At June 30, 2016, we expected an estimated $654 pre-tax loss 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 contract not designated as a hedging instrument at June 30, 2016 was approximately $5,000, and such contract expired in July 2016. We recognized losses of $(33) and $(89) from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended June 30, 2016 and 2015, respectively. We recognized a (loss) gain of $(464) and $1,294 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the six months ended June 30, 2016 and 2015, 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 condensed consolidated unaudited balance sheets. See Note 5. Asset Derivatives June 30, December 31, Derivatives designated as hedging instruments $ 200 $ 923 Derivatives not designated as hedging instruments 74 326 Total asset derivative instruments $ 274 $ 1,249 Liability Derivatives June 30, December 31, Derivatives designated as hedging instruments $ 649 $ 3 Derivatives not designated as hedging instruments — 4 Total liability derivative instruments $ 649 $ 7

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Fair Value Measurements Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 239 $ 239 — — Derivative financial instruments Other current assets $ 274 — $ 274 — Liabilities: Derivative financial instruments Accrued expenses and other $ 649 — $ 649 — Fair Value Measurements Balance Sheet Location Total 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 $ 7 — $ 7 — 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 the six months ended June 30, 2016.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2016
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 revolving credit agreement matures on July 1, 2019. At June 30, 2016 and December 31, 2015, $267,348 and $245,300, 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 June 30, 2016. At June 30, 2016, $793 of short-term borrowings were outstanding under a credit line established by our Mexican subsidiary. This line of credit has a one-year term, maturing on June 14, 2017, is non-committed and provides for borrowings of up to approximately $4,000 (MXN $75,000) for general corporate purposes. No short-term borrowings were outstanding under this credit line at December 31, 2015.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
SHAREHOLDERS' EQUITY	7. SHAREHOLDERS’ EQUITY Common Stock Dividends We paid cash dividends of $0.85, $0.70, $1.70 and $1.40 per share of Common stock and Class B common stock during the quarters and six months ended June 30, 2016 and 2015, respectively. Non-Vested Restricted Stock During the quarters ended June 30, 2016 and 2015, we granted 24,500 and 19,000 shares of non-vested restricted stock, respectively. During the six months ended June 30, 2016 and 2015, we granted 112,178 and 171,979 shares of non-vested restricted stock, respectively. During the quarter ended June 30, 2016, an aggregate of 20,195 shares of Common and Class B common stock with an aggregate fair market value of $2,603 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested restricted stock. During the six months ended June 30, 2016, an aggregate of 27,477 shares of Common and Class B common stock with an aggregate fair market value of $3,548 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested restricted stock. During the quarter and six months ended June 30, 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 non-vested restricted stock. These shares were retired upon delivery. Exercise of Stock Options During the quarters ended June 30, 2016 and 2015, 7,500 and 41,000 stock options, respectively, were exercised for a combination of Common and Class B common stock. During the six months ended June 30, 2016 and 2015, 34,500 and 66,200 stock options, respectively, were exercised for a combination of Common and Class B common stock. Cash received from common stock issued as a result of stock options exercised during the quarters and six months ended June 30, 2016 and 2015, was $454, $1,579, $2,258 and $2,682, respectively. During the quarter ended June 30, 2015, 10,133 shares of Class B common stock with an aggregate fair market value of $1,288 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. During the six months ended June 30, 2015, 14,760 shares of Class B common stock with an aggregate fair market value of $1,837 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. Employee Stock Purchase Plan During the quarters ended June 30, 2016 and 2015, 2,203 and 2,300 shares of Common stock were issued under our employee stock purchase plan, for which we received net proceeds of $287 and $275, respectively. During the six months ended June 30, 2016 and 2015, 4,831 and 4,969 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $584 and $553, respectively. 401(k) Plan During the six months ended June 30, 2016 and 2015, we issued 20,045 and 18,343 shares of Common stock, respectively, to our profit sharing retirement plan, representing the Common stock discretionary matching contributions of $2,348 and $1,963, respectively. Non-controlling Interest Of our three joint ventures with Carrier, we have an 80% controlling interest in one and a 60% controlling interest in each of the other two, while Carrier has either a 20% or 40% non-controlling interest in such joint ventures, as applicable. The following table reconciles shareholders’ equity attributable to Carrier’s non-controlling interest: Non-controlling interest at December 31, 2015 $ 246,411 Net income attributable to non-controlling interest 25,440 Distributions to non-controlling interest (7,114 ) Foreign currency translation adjustment 5,791 Loss recorded in accumulated other comprehensive loss (750 ) Loss reclassified from accumulated other comprehensive loss into earnings 159 Non-controlling interest at June 30, 2016 $ 269,937

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES	8. 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. While we cannot predict the outcome of this litigation, we believe the ultimate outcome of this matter will not have a material effect on our financial condition or results of operations. We are also involved in other litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $4,060 and $3,214 at June 30, 2016 and December 31, 2015, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. Purchase Obligations At June 30, 2016, we were obligated under a non-cancelable purchase order with one of our key suppliers for goods aggregating approximately $129,000.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
RELATED PARTY TRANSACTIONS	9. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 62% and 64% of all inventory purchases made during the quarters ended June 30, 2016 and 2015, respectively. Purchases from Carrier and its affiliates comprised 62% of all inventory purchases made during both the six months ended June 30, 2016 and 2015. At June 30, 2016 and December 31, 2015, approximately $101,000 and $85,000, respectively, was payable to Carrier and its affiliates, net of receivables. Our joint ventures with Carrier also sell HVAC products to Carrier and its affiliates. Revenues in our condensed consolidated unaudited statements of income for the quarters and six months ended June 30, 2016 and 2015 included approximately $17,000, $21,000, $29,000 and $29,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted at arm’s-length in the ordinary course of business.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2016
SUBSEQUENT EVENT	10. SUBSEQUENT EVENT On July 18, 2016, our Board of Directors approved an increase to the quarterly cash dividend per share of Common and Class B common stock to $1.05 per share from $0.85 per share, beginning with the dividend that will be paid in October 2016.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
Basis of Consolidation	Basis of Consolidation Watsco, Inc. and its subsidiaries (collectively, “Watsco,” or “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying June 30, 2016 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns, primarily during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is fairly consistent during the year, subject to weather and economic conditions, including their effect on the number of housing completions.
Use of Estimates	Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
New Accounting Standards	New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. The core principle is that a company will recognize revenue to reflect the transfer of goods or services to customers at an amount that the company expects to be entitled to in exchange for those goods or services. 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. 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. Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. We are evaluating the impact of this guidance on our consolidated financial statements. Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance that will require that 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 effective retrospectively for interim and annual reporting periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on our consolidated financial statements. Share-Based Payments In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires that all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We elected to early adopt the amended guidance during the quarter ended June 30, 2016, which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in 2016. We elected to apply the presentation requirements for cash flows related to excess tax benefits prospectively. The accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes are required to be recorded. We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $2,307 for the quarter and six months ended June 30, 2016 and impacted our previously reported quarterly results for March 31, 2016 as follows: Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in capital $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )
Self-Insurance	Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $4,060 and $3,214 at June 30, 2016 and December 31, 2015, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2016
Adoption of Amended Guidance Impact on Previously Reported Quarterly Results	Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $2,307 for the quarter and six months ended June 30, 2016 and impacted our previously reported quarterly results for March 31, 2016 as follows: Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in capital $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
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: Quarter Ended Six Months Ended 2016 2015 2016 2015 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 64,621 $ 65,423 $ 90,158 $ 88,471 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,254 5,183 7,304 6,922 Earnings allocated to Watsco, Inc. shareholders $ 59,367 $ 60,240 $ 82,854 $ 81,549 Weighted-average common shares outstanding – Basic 32,574,901 32,427,088 32,543,354 32,402,262 Basic earnings per share for Common and Class B common stock $ 1.82 $ 1.86 $ 2.55 $ 2.52 Allocation of earnings for Basic: Common stock $ 54,411 $ 55,179 $ 75,930 $ 74,692 Class B common stock 4,956 5,061 6,924 6,857 $ 59,367 $ 60,240 $ 82,854 $ 81,549 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 64,621 $ 65,423 $ 90,158 $ 88,471 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,251 5,179 7,302 6,917 Earnings allocated to Watsco, Inc. shareholders $ 59,370 $ 60,244 $ 82,856 $ 81,554 Weighted-average common shares outstanding – Basic 32,574,901 32,427,088 32,543,354 32,402,262 Effect of dilutive stock options 31,435 50,174 32,972 52,036 Weighted-average common shares outstanding – Diluted 32,606,336 32,477,262 32,576,326 32,454,298 Diluted earnings per share for Common and Class B common stock $ 1.82 $ 1.85 $ 2.54 $ 2.51 Anti-dilutive stock options not included above 714 2,363 16,363 54,535

OTHER COMPREHENSIVE INCOME (L20

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)	The tax effects allocated to each component of other comprehensive income (loss) were as follows: Quarter Ended Six Months Ended 2016 2015 2016 2015 Foreign currency translation adjustment $ 1,193 $ 2,972 $ 14,886 $ (16,903 ) Unrealized (loss) gain on cash flow hedging instruments (1,483 ) (329 ) (2,569 ) 1,898 Income tax benefit (expense) 401 88 694 (513 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (1,082 ) (241 ) (1,875 ) 1,385 Reclassification of loss (gain) on cash flow hedging instruments into earnings 1,611 (1,366 ) 545 (1,554 ) Income tax (benefit) expense (435 ) 369 (147 ) 420 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 1,176 (997 ) 398 (1,134 ) Unrealized (loss) gain on available-for-sale securities (28 ) 23 (15 ) 34 Income tax benefit (expense) 10 (9 ) 6 (13 ) Unrealized (loss) gain on available-for-sale securities, net of tax (18 ) 14 (9 ) 21 Other comprehensive income (loss) $ 1,269 $ 1,748 $ 13,400 $ (16,631 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: S ix Months Ended June 30, 2016 2015 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) Current period other comprehensive income (loss) 9,095 (10,065 ) Ending balance $ (38,109 ) $ (33,688 ) Cash flow hedging instruments: Beginning balance $ 600 $ 168 Current period other comprehensive (loss) income (1,125 ) 831 Less reclassification adjustment 239 (680 ) Ending balance $ (286 ) $ 319 Available-for-sale securities: Beginning balance $ (300 ) $ (292 ) Current period other comprehensive (loss) income (9 ) 21 Ending balance $ (309 ) $ (271 ) Accumulated other comprehensive loss, net of tax $ (38,704 ) $ (33,640 )

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2016
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges	The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Six Months Ended 2016 2015 2016 2015 (Loss) gain recorded in accumulated other comprehensive loss $ (1,483 ) $ (329 ) $ (2,569 ) $ 1,898 (Loss) gain reclassified from accumulated other comprehensive loss into earnings $ (1,611 ) $ 1,366 $ (545 ) $ 1,554
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 condensed consolidated unaudited balance sheets. See Note 5. Asset Derivatives June 30, December 31, Derivatives designated as hedging instruments $ 200 $ 923 Derivatives not designated as hedging instruments 74 326 Total asset derivative instruments $ 274 $ 1,249 Liability Derivatives June 30, December 31, Derivatives designated as hedging instruments $ 649 $ 3 Derivatives not designated as hedging instruments — 4 Total liability derivative instruments $ 649 $ 7

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Fair Value Measurements Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 239 $ 239 — — Derivative financial instruments Other current assets $ 274 — $ 274 — Liabilities: Derivative financial instruments Accrued expenses and other $ 649 — $ 649 — Fair Value Measurements Balance Sheet Location Total 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 $ 7 — $ 7 —

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Rollforward of Non-controlling Interest Balance	The following table reconciles shareholders’ equity attributable to Carrier’s non-controlling interest: Non-controlling interest at December 31, 2015 $ 246,411 Net income attributable to non-controlling interest 25,440 Distributions to non-controlling interest (7,114 ) Foreign currency translation adjustment 5,791 Loss recorded in accumulated other comprehensive loss (750 ) Loss reclassified from accumulated other comprehensive loss into earnings 159 Non-controlling interest at June 30, 2016 $ 269,937

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Entity	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Entity	Jun. 30, 2015USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	3		3
Provision (benefit) for income taxes	$ 35,112	$ 38,988	$ 50,620	$ 53,319
Adjustments for New Accounting Pronouncement
Significant Accounting Policies [Line Items]
Provision (benefit) for income taxes	$ (2,307)		$ (2,307)

Adoption of Amended Guidance Im

Adoption of Amended Guidance Impact on Previously Reported Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement:
Income taxes	$ 35,112		$ 38,988	$ 50,620	$ 53,319
Net income	$ 64,621		$ 65,423	$ 90,158	$ 88,471
Diluted earnings per share	$ 1.82		$ 1.85	$ 2.54	$ 2.51
Diluted weighted-average common shares outstanding	32,606,336		32,477,262	32,576,326	32,454,298
As Reported
Income Statement:
Income taxes		$ 15,508
Net income		$ 34,174
Diluted earnings per share		$ 0.71
Diluted weighted-average common shares outstanding		32,537,225
Balance Sheet:
Paid-in capital		$ 610,285
Cash Flow Statement:
Net cash provided by operating activities		41,852
Net cash used in financing activities		(41,638)
As Adjusted
Income Statement:
Income taxes		14,654
Net income		$ 35,028
Diluted earnings per share		$ 0.74
Diluted weighted-average common shares outstanding		32,546,314
Balance Sheet:
Paid-in capital		$ 609,431
Cash Flow Statement:
Net cash provided by operating activities		42,706
Net cash used in financing activities		$ (42,492)

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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 64,621	$ 65,423	$ 90,158	$ 88,471
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,254	5,183	7,304	6,922
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 59,367	$ 60,240	$ 82,854	$ 81,549
Weighted-average common shares outstanding - Basic	32,574,901	32,427,088	32,543,354	32,402,262
Basic earnings per share for Common and Class B common stock	$ 1.82	$ 1.86	$ 2.55	$ 2.52
Net income attributable to Watsco, Inc. shareholders	$ 64,621	$ 65,423	$ 90,158	$ 88,471
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,251	5,179	7,302	6,917
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 59,370	$ 60,244	$ 82,856	$ 81,554
Weighted-average common shares outstanding - Basic	32,574,901	32,427,088	32,543,354	32,402,262
Effect of dilutive stock options	31,435	50,174	32,972	52,036
Weighted-average common shares outstanding - Diluted	32,606,336	32,477,262	32,576,326	32,454,298
Diluted earnings per share for Common and Class B common stock	$ 1.82	$ 1.85	$ 2.54	$ 2.51
Anti-dilutive stock options not included above	714	2,363	16,363	54,535
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 54,411	$ 55,179	$ 75,930	$ 74,692
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 4,956	$ 5,061	$ 6,924	$ 6,857

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,719,495	2,724,464

Schedule of Tax Effects Allocat

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 1,193	$ 2,972	$ 14,886	$ (16,903)
Unrealized (loss) gain on cash flow hedging instruments	(1,483)	(329)	(2,569)	1,898
Income tax benefit (expense)	401	88	694	(513)
Unrealized (loss) gain on cash flow hedging instruments, net of tax	(1,082)	(241)	(1,875)	1,385
Reclassification of loss (gain) on cash flow hedging instruments into earnings	1,611	(1,366)	545	(1,554)
Income tax (benefit) expense	(435)	369	(147)	420
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	1,176	(997)	398	(1,134)
Unrealized (loss) gain on available-for-sale securities	(28)	23	(15)	34
Income tax benefit (expense)	10	(9)	6	(13)
Unrealized (loss) gain on available-for-sale securities, net of tax	(18)	14	(9)	21
Other comprehensive income (loss)	$ 1,269	$ 1,748	$ 13,400	$ (16,631)

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 957,310
Ending balance	1,003,303
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(47,204)	$ (23,623)
Current period other comprehensive (loss) income	9,095	(10,065)
Ending balance	(38,109)	(33,688)
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	600	168
Current period other comprehensive (loss) income	(1,125)	831
Less reclassification adjustment	239	(680)
Ending balance	(286)	319
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(300)	(292)
Current period other comprehensive (loss) income	(9)	21
Ending balance	(309)	(271)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ending balance	$ (38,704)	$ (33,640)

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 5,000		$ 5,000
Contract expiring terms			2016-07
(Losses) gains from foreign currency forward contracts not designated as hedging instruments	(33)	$ (89)	$ (464)	$ 1,294
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	29,100		$ 29,100
Contract maturity period			One year or less
Contract expiring terms			2016-12
Pre-tax gain (loss) to be reclassified into earnings within the next 12 months	$ (654)		$ (654)

Impact from Foreign Exchange De

Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedge - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	$ (1,483)	$ (329)	$ (2,569)	$ 1,898
(Loss) gain reclassified from accumulated other comprehensive loss into earnings	$ (1,611)	$ 1,366	$ (545)	$ 1,554

Fair Value of Derivative Instru

Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 274	$ 1,249
Derivative instruments, liabilities derivatives	649	7
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	200	923
Derivative instruments, liabilities derivatives	649	3
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 74	326
Derivative instruments, liabilities derivatives		$ 4

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Other assets
Assets:
Available-for-sale securities	$ 239	$ 254
Other Current Assets
Assets:
Derivative financial instruments	274	1,249
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	649	7
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	239	254
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	274	1,249
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 649	$ 7

Debt - Additional Information (

Debt - Additional Information (Detail)	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2016MXN	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit agreement	$ 267,348,000	$ 267,348,000		$ 245,300,000
Revolving credit agreement maximum borrowing capacity	600,000,000	$ 600,000,000
Revolving credit agreement maturity date		Jul. 1, 2019
Short-term debt	793,000	$ 793,000
MEXICO
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 4,000,000	4,000,000	MXN 75,000,000
Revolving credit agreement maturity date	Jun. 14, 2017
Short-term debt	$ 793,000	$ 793,000		$ 0
Short-term borrowings maturity period	1 year

Shareholders Equity - Additiona

Shareholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock	$ 0.85	$ 0.70	$ 1.70	$ 1.40
Shares of non-vested restricted stock granted	24,500	19,000	112,178	171,979
Common stock issued under employee stock purchase plan, shares	2,203	2,300	4,831	4,969
Common stock issued under employee stock purchase plan, net proceeds	$ 287	$ 275	$ 584	$ 553
Carrier Enterprise I
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage			80.00%
Non-controlling interest, ownership percentage	20.00%		20.00%
Carrier Enterprise II
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage			60.00%
Non-controlling interest, ownership percentage	40.00%		40.00%
Carrier Enterprise III
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage			60.00%
Non-controlling interest, ownership percentage	40.00%		40.00%
Common Stock
Stockholders Equity Note [Line Items]
Stock options exercised, proceeds	$ 454	$ 1,579	$ 2,258	$ 2,682
Common Stock | Class B Common Stock
Stockholders Equity Note [Line Items]
Stock options exercised, shares	7,500	41,000	34,500	66,200
Non-Vested Restricted Stock | Common and Class B Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	20,195		27,477	7,206
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 2,603		$ 3,548	$ 889
Stock Options | Class B Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares		10,133		14,760
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 1,288		$ 1,837
401(k) Plan
Stockholders Equity Note [Line Items]
Common stock contribution to 401(k) Plan, shares			20,045	18,343
Common stock contribution to 401(k) plan			$ 2,348	$ 1,963

Schedule of Rollforward of Non-

Schedule of Rollforward of Non-controlling Interest Balance (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Noncontrolling Interest [Line Items]
Noncontrolling interest beginning balance			$ 246,411
Net income attributable to non-controlling interest	$ 16,803	$ 18,818	25,440	$ 27,070
Distributions to non-controlling interest			(7,114)
Foreign currency translation adjustment			5,791
Noncontrolling interest ending balance	$ 269,937		269,937
Non-controlling Interest
Noncontrolling Interest [Line Items]
Loss recorded in accumulated other comprehensive loss			(750)
Loss reclassified from accumulated other comprehensive loss into earnings			$ 159

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 4,060	$ 3,214
Key Suppliers
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 129,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Carrier and Its Affiliates - Supplier Concentration Risk - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	$ 101,000		$ 101,000		$ 85,000
Revenues from sales to Carrier and its affiliates	$ 17,000	$ 21,000	$ 29,000	$ 29,000
Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	62.00%	64.00%	62.00%	62.00%

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Common and Class B Common Stock - $ / shares	Jul. 18, 2016	Jun. 30, 2016
Subsequent Event [Line Items]
Cash dividend		$ 0.85
Subsequent Event
Subsequent Event [Line Items]
Cash dividend approved	$ 1.05