Watsco (WSO) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		30,349,695
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,177,490

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 1,241,232	$ 1,177,012	$ 3,307,091	$ 3,209,423
Cost of sales	939,028	891,166	2,500,579	2,424,107
Gross profit	302,204	285,846	806,512	785,316
Selling, general and administrative expenses	182,904	175,166	518,954	502,769
Operating income	119,300	110,680	287,558	282,547
Interest expense, net	996	1,519	3,036	4,526
Income before income taxes	118,304	109,161	284,522	278,021
Income taxes	37,786	34,517	88,406	87,836
Net income	80,518	74,644	196,116	190,185
Less: net income attributable to non-controlling interest	17,419	16,676	42,859	43,746
Net income attributable to Watsco, Inc.	$ 63,099	$ 57,968	$ 153,257	$ 146,439
Earnings per share for Common and Class B common stock:
Basic	$ 1.78	$ 1.64	$ 4.33	$ 4.16
Diluted	$ 1.78	$ 1.64	$ 4.32	$ 4.16

Condensed Consolidated Unaudit3

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 80,518	$ 74,644	$ 196,116	$ 190,185
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustment	(3,453)	(14,682)	11,433	(31,585)
Unrealized gain (loss) on cash flow hedging instruments	391	946	(1,484)	2,331
Reclassification of loss (gain) on cash flow hedging instruments into earnings	94	(260)	492	(1,394)
Unrealized gain (loss) on available-for-sale securities	12	(15)	3	6
Other comprehensive (loss) income	(2,956)	(14,011)	10,444	(30,642)
Comprehensive income	77,562	60,633	206,560	159,543
Less: comprehensive income attributable to non-controlling interest	16,291	11,058	46,931	31,390
Comprehensive income attributable to Watsco, Inc.	$ 61,271	$ 49,575	$ 159,629	$ 128,153

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 35,910	$ 35,229
Accounts receivable, net	548,000	451,079
Inventories	739,718	673,967
Other current assets	25,381	20,990
Total current assets	1,349,009	1,181,265
Property and equipment, net	59,729	62,715
Goodwill	380,786	378,310
Intangible assets, net	162,472	160,481
Other assets	5,601	5,671
Total assets	1,957,597	1,788,442
Current liabilities:
Current portion of other long-term obligations	196	184
Accounts payable	229,743	145,162
Accrued expenses and other current liabilities	128,188	124,955
Total current liabilities	358,127	270,301
Long-term obligations:
Borrowings under revolving credit agreement	219,400	245,300
Other long-term obligations, net of current portion	392	514
Total long-term obligations	219,792	245,814
Deferred income taxes and other liabilities	73,344	68,606
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,340	18,308
Preferred stock, $0.50 par value	0	0
Paid-in capital	614,811	602,522
Accumulated other comprehensive loss, net of tax	(40,532)	(46,904)
Retained earnings	558,235	495,276
Treasury stock, at cost	(114,425)	(114,425)
Total Watsco, Inc. shareholders' equity	1,039,019	957,310
Non-controlling interest	267,315	246,411
Total shareholders' equity	1,306,334	1,203,721
Total liabilities and shareholders' equity	1,957,597	1,788,442
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,590	$ 2,533

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 196,116	$ 190,185
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,078	14,216
Share-based compensation	8,359	8,862
Deferred income tax provision	3,984	5,634
Non-cash contribution to 401(k) plan	2,348	1,963
Provision for doubtful accounts	2,105	1,305
Excess tax benefits from share-based compensation		(1,983)
Gain on sale of property and equipment	(204)	(420)
Changes in operating assets and liabilities:
Accounts receivable	(96,692)	(82,792)
Inventories	(63,480)	(80,165)
Accounts payable and other liabilities	83,549	45,358
Other, net	(4,863)	(2,405)
Net cash provided by operating activities	146,300	99,758
Cash flows from investing activities:
Capital expenditures	(8,989)	(20,593)
Proceeds from sale of property and equipment	675	686
Net cash used in investing activities	(8,314)	(19,907)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(90,298)	(73,840)
Distributions to non-controlling interest	(26,027)	(13,266)
Net (repayments) proceeds under revolving credit agreement	(25,900)	3,327
Net repayments under other long-term obligations	(110)	(112)
Excess tax benefits from share-based compensation		1,983
Proceeds from short-term borrowings		2,353
Net proceeds from issuances of common stock	4,962	4,528
Net cash used in financing activities	(137,373)	(75,027)
Effect of foreign exchange rate changes on cash and cash equivalents	68	(766)
Net increase in cash and cash equivalents	681	4,058
Cash and cash equivalents at beginning of period	35,229	24,447
Cash and cash equivalents at end of period	$ 35,910	$ 28,505

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Basis of Consolidation Watsco, Inc. (collectively with its consolidated 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. The accompanying September 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 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 nine months ended September 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 $591 and $2,898 for the quarter and nine months ended September 30, 2016, respectively, 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	9 Months Ended
	Sep. 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 Nine Months Ended 2016 2015 2016 2015 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 63,099 $ 57,968 $ 153,257 $ 146,439 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,081 4,595 12,388 11,513 Earnings allocated to Watsco, Inc. shareholders $ 58,018 $ 53,373 $ 140,869 $ 134,926 Weighted-average common shares outstanding - Basic 32,613,995 32,458,906 32,567,073 32,421,350 Basic earnings per share for Common and Class B common stock $ 1.78 $ 1.64 $ 4.33 $ 4.16 Allocation of earnings for Basic: Common stock $ 53,186 $ 48,893 $ 129,120 $ 123,588 Class B common stock 4,832 4,480 11,749 11,338 $ 58,018 $ 53,373 $ 140,869 $ 134,926 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 63,099 $ 57,968 $ 153,257 $ 146,439 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,078 4,592 12,383 11,505 Earnings allocated to Watsco, Inc. shareholders $ 58,021 $ 53,376 $ 140,874 $ 134,934 Weighted-average common shares outstanding - Basic 32,613,995 32,458,906 32,567,073 32,421,350 Effect of dilutive stock options 36,158 39,951 34,042 47,963 Weighted-average common shares outstanding - Diluted 32,650,153 32,498,857 32,601,115 32,469,313 Diluted earnings per share for Common and Class B common stock $ 1.78 $ 1.64 $ 4.32 $ 4.16 Anti-dilutive stock options not included above 3,565 16,332 18,876 58,169 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 September 30, 2016 and 2015, our outstanding Class B common stock was convertible into 2,716,320 and 2,724,464 shares of our Common stock, respectively.

OTHER COMPREHENSIVE (LOSS) INCO

OTHER COMPREHENSIVE (LOSS) INCOME	9 Months Ended
	Sep. 30, 2016
OTHER COMPREHENSIVE (LOSS) INCOME	3. OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income 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 (loss) income were as follows: Quarter Ended Nine Months Ended 2016 2015 2016 2015 Foreign currency translation adjustment $ (3,453 ) $ (14,682 ) $ 11,433 $ (31,585 ) Unrealized gain (loss) on cash flow hedging instruments 536 1,294 (2,033 ) 3,192 Income tax (expense) benefit (145 ) (348 ) 549 (861 ) Unrealized gain (loss) on cash flow hedging instruments, net of tax 391 946 (1,484 ) 2,331 Reclassification of loss (gain) on cash flow hedging instruments into earnings 129 (356 ) 674 (1,910 ) Income tax (benefit) expense (35 ) 96 (182 ) 516 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 94 (260 ) 492 (1,394 ) Unrealized gain (loss) on available-for-sale securities 19 (25 ) 4 9 Income tax (expense) benefit (7 ) 10 (1 ) (3 ) Unrealized gain (loss) on available-for-sale securities, net of tax 12 (15 ) 3 6 Other comprehensive (loss) income $ (2,956 ) $ (14,011 ) $ 10,444 $ (30,642 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2016 2015 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) Current period other comprehensive income (loss) 6,964 (18,853 ) Ending balance $ (40,240 ) $ (42,476 ) Cash flow hedging instruments: Beginning balance $ 600 $ 168 Current period other comprehensive (loss) income (890 ) 1,398 Less reclassification adjustment 295 (837 ) Ending balance $ 5 $ 729 Available-for-sale securities: Beginning balance $ (300 ) $ (292 ) Current period other comprehensive income 3 6 Ending balance $ (297 ) $ (286 ) Accumulated other comprehensive loss, net of tax $ (40,532 ) $ (42,033 )

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2016
DERIVATIVE FINANCIAL INSTRUMENTS	4. DERIVATIVE FINANCIAL INSTRUMENTS We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have had on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at September 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 September 30, 2016 was $22,600, and such contracts have varying terms expiring through March 2017. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows for the periods indicated: Quarter Ended Nine Months Ended 2016 2015 2016 2015 Gain (loss) recorded in accumulated other comprehensive loss $ 536 $ 1,294 $ (2,033 ) $ 3,192 (Loss) gain reclassified from accumulated other comprehensive loss into earnings $ 129 $ (356 ) $ 674 $ (1,910 ) At September 30, 2016, we expected an estimated $11 of 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 do 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 notional value of our foreign currency exchange contract not designated as a hedging instrument at September 30, 2016 was $2,900, and such contract expired in October 2016. We recognized gains of $75 and $955 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended September 30, 2016 and 2015, respectively. We recognized a (loss) gain of $(389) and $2,249 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the nine months ended September 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 in our condensed consolidated unaudited balance sheets. See Note 5. Asset Derivatives September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments $ 269 $ 923 Derivatives not designated as hedging instruments — 326 Total asset derivative instruments $ 269 $ 1,249 Liability Derivatives September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments $ 91 $ 3 Derivatives not designated as hedging instruments 27 4 Total liability derivative instruments $ 118 $ 7

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 258 $ 258 — — Derivative financial instruments Other current assets $ 269 — $ 269 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 118 — $ 118 — 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 — 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 nine months ended September 30, 2016.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2016
SHAREHOLDERS' EQUITY	6. SHAREHOLDERS’ EQUITY Common Stock Dividends We paid cash dividends of $0.85, $0.70, $2.55 and $2.10 per share of Common stock and Class B common stock during the quarters and nine months ended September 30, 2016 and 2015, respectively. Non-Vested Restricted Stock During the quarters ended September 30, 2016 and 2015, we granted 23,803 and 17,500 shares of non-vested restricted stock, respectively. During the nine months ended September 30, 2016 and 2015, we granted 135,981 and 189,479 shares of non-vested restricted stock, respectively. During the quarter ended September 30, 2016, 2,936 shares of Common stock with an aggregate fair market value of $419 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 nine months ended September 30, 2016, an aggregate of 30,413 shares of Common and Class B common stock with an aggregate fair market value of $3,967 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During the nine months ended September 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 restricted stock. These shares were retired upon delivery. Exercise of Stock Options During the quarters ended September 30, 2016 and 2015, 23,584 and 14,250 stock options, respectively, were exercised for a combination of Common stock and Class B common stock. During the nine months ended September 30, 2016 and 2015, 58,084 and 80,450 stock options, respectively, were exercised for a combination of Common stock and Class B common stock. Cash received from the exercise of stock options during the quarters and nine months ended September 30, 2016 and 2015 was $1,834, $999, $4,092 and $3,681, respectively. During the quarter and nine months ended September 30, 2016, 348 shares of Common stock with an aggregate fair market value of $51 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. During the nine months ended September 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 September 30, 2016 and 2015, 2,084 and 2,433 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $286 and $294, respectively. During the nine months ended September 30, 2016 and 2015, 6,915 and 7,402 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $870 and $847, respectively. 401(k) Plan During the nine months ended September 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 42,859 Distributions to non-controlling interest (26,027 ) Foreign currency translation adjustment 4,469 Loss recorded in accumulated other comprehensive loss (594 ) Gain reclassified from accumulated other comprehensive loss into earnings 197 Non-controlling interest at September 30, 2016 $ 267,315

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
COMMITMENTS AND CONTINGENCIES	7. 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 $4,156 and $3,214 at September 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 September 30, 2016, we were obligated under a non-cancelable purchase order with one of our key suppliers for goods aggregating approximately $44,000.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2016
RELATED PARTY TRANSACTIONS	8. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 62% of all inventory purchases made during both the quarters ended September 30, 2016 and 2015. Purchases from Carrier and its affiliates comprised 62% of all inventory purchases made during both the nine months ended September 30, 2016 and 2015. At September 30, 2016 and December 31, 2015, approximately $100,000 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 nine months ended September 30, 2016 and 2015 included approximately $17,000, $18,000, $46,000 and $47,000, 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	9 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENT	9. SUBSEQUENT EVENT On October 20, 2016, in connection with the upcoming end of the lease term for our corporate aircraft, we purchased an aircraft for $30,700.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2016
Basis of Consolidation	Basis of Consolidation Watsco, Inc. (collectively with its consolidated 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. The accompanying September 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 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 nine months ended September 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 $591 and $2,898 for the quarter and nine months ended September 30, 2016, respectively, 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 $4,156 and $3,214 at September 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)	9 Months Ended
	Sep. 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 $591 and $2,898 for the quarter and nine months ended September 30, 2016, respectively, 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)	9 Months Ended
	Sep. 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 Nine Months Ended 2016 2015 2016 2015 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 63,099 $ 57,968 $ 153,257 $ 146,439 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,081 4,595 12,388 11,513 Earnings allocated to Watsco, Inc. shareholders $ 58,018 $ 53,373 $ 140,869 $ 134,926 Weighted-average common shares outstanding - Basic 32,613,995 32,458,906 32,567,073 32,421,350 Basic earnings per share for Common and Class B common stock $ 1.78 $ 1.64 $ 4.33 $ 4.16 Allocation of earnings for Basic: Common stock $ 53,186 $ 48,893 $ 129,120 $ 123,588 Class B common stock 4,832 4,480 11,749 11,338 $ 58,018 $ 53,373 $ 140,869 $ 134,926 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 63,099 $ 57,968 $ 153,257 $ 146,439 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 5,078 4,592 12,383 11,505 Earnings allocated to Watsco, Inc. shareholders $ 58,021 $ 53,376 $ 140,874 $ 134,934 Weighted-average common shares outstanding - Basic 32,613,995 32,458,906 32,567,073 32,421,350 Effect of dilutive stock options 36,158 39,951 34,042 47,963 Weighted-average common shares outstanding - Diluted 32,650,153 32,498,857 32,601,115 32,469,313 Diluted earnings per share for Common and Class B common stock $ 1.78 $ 1.64 $ 4.32 $ 4.16 Anti-dilutive stock options not included above 3,565 16,332 18,876 58,169

OTHER COMPREHENSIVE (LOSS) IN19

OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income	The tax effects allocated to each component of other comprehensive (loss) income were as follows: Quarter Ended Nine Months Ended 2016 2015 2016 2015 Foreign currency translation adjustment $ (3,453 ) $ (14,682 ) $ 11,433 $ (31,585 ) Unrealized gain (loss) on cash flow hedging instruments 536 1,294 (2,033 ) 3,192 Income tax (expense) benefit (145 ) (348 ) 549 (861 ) Unrealized gain (loss) on cash flow hedging instruments, net of tax 391 946 (1,484 ) 2,331 Reclassification of loss (gain) on cash flow hedging instruments into earnings 129 (356 ) 674 (1,910 ) Income tax (benefit) expense (35 ) 96 (182 ) 516 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 94 (260 ) 492 (1,394 ) Unrealized gain (loss) on available-for-sale securities 19 (25 ) 4 9 Income tax (expense) benefit (7 ) 10 (1 ) (3 ) Unrealized gain (loss) on available-for-sale securities, net of tax 12 (15 ) 3 6 Other comprehensive (loss) income $ (2,956 ) $ (14,011 ) $ 10,444 $ (30,642 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2016 2015 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) Current period other comprehensive income (loss) 6,964 (18,853 ) Ending balance $ (40,240 ) $ (42,476 ) Cash flow hedging instruments: Beginning balance $ 600 $ 168 Current period other comprehensive (loss) income (890 ) 1,398 Less reclassification adjustment 295 (837 ) Ending balance $ 5 $ 729 Available-for-sale securities: Beginning balance $ (300 ) $ (292 ) Current period other comprehensive income 3 6 Ending balance $ (297 ) $ (286 ) Accumulated other comprehensive loss, net of tax $ (40,532 ) $ (42,033 )

DERIVATIVE FINANCIAL INSTRUME20

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 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 for the periods indicated: Quarter Ended Nine Months Ended 2016 2015 2016 2015 Gain (loss) recorded in accumulated other comprehensive loss $ 536 $ 1,294 $ (2,033 ) $ 3,192 (Loss) gain reclassified from accumulated other comprehensive loss into earnings $ 129 $ (356 ) $ 674 $ (1,910 )
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 in our condensed consolidated unaudited balance sheets. See Note 5. Asset Derivatives September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments $ 269 $ 923 Derivatives not designated as hedging instruments — 326 Total asset derivative instruments $ 269 $ 1,249 Liability Derivatives September 30, 2016 December 31, 2015 Derivatives designated as hedging instruments $ 91 $ 3 Derivatives not designated as hedging instruments 27 4 Total liability derivative instruments $ 118 $ 7

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale securities Other assets $ 258 $ 258 — — Derivative financial instruments Other current assets $ 269 — $ 269 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 118 — $ 118 — 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 —

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 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 42,859 Distributions to non-controlling interest (26,027 ) Foreign currency translation adjustment 4,469 Loss recorded in accumulated other comprehensive loss (594 ) Gain reclassified from accumulated other comprehensive loss into earnings 197 Non-controlling interest at September 30, 2016 $ 267,315

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)Entity	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Entity	Sep. 30, 2015USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	3		3
Provision (benefit) for income taxes	$ 37,786	$ 34,517	$ 88,406	$ 87,836
Adjustments for New Accounting Pronouncement
Significant Accounting Policies [Line Items]
Provision (benefit) for income taxes	$ (591)		$ (2,898)

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			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement:
Income taxes	$ 37,786		$ 34,517	$ 88,406	$ 87,836
Net income	$ 63,099		$ 57,968	$ 153,257	$ 146,439
Diluted earnings per share	$ 1.78		$ 1.64	$ 4.32	$ 4.16
Diluted weighted-average common shares outstanding	32,650,153		32,498,857	32,601,115	32,469,313
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 63,099	$ 57,968	$ 153,257	$ 146,439
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,081	4,595	12,388	11,513
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 58,018	$ 53,373	$ 140,869	$ 134,926
Weighted-average common shares outstanding - Basic	32,613,995	32,458,906	32,567,073	32,421,350
Basic earnings per share for Common and Class B common stock	$ 1.78	$ 1.64	$ 4.33	$ 4.16
Net income attributable to Watsco, Inc. shareholders	$ 63,099	$ 57,968	$ 153,257	$ 146,439
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,078	4,592	12,383	11,505
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 58,021	$ 53,376	$ 140,874	$ 134,934
Weighted-average common shares outstanding - Basic	32,613,995	32,458,906	32,567,073	32,421,350
Effect of dilutive stock options	36,158	39,951	34,042	47,963
Weighted-average common shares outstanding - Diluted	32,650,153	32,498,857	32,601,115	32,469,313
Diluted earnings per share for Common and Class B common stock	$ 1.78	$ 1.64	$ 4.32	$ 4.16
Anti-dilutive stock options not included above	3,565	16,332	18,876	58,169
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 53,186	$ 48,893	$ 129,120	$ 123,588
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 4,832	$ 4,480	$ 11,749	$ 11,338

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,716,320	2,724,464

Schedule of Tax Effects Allocat

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ (3,453)	$ (14,682)	$ 11,433	$ (31,585)
Unrealized gain (loss) on cash flow hedging instruments	536	1,294	(2,033)	3,192
Income tax (expense) benefit	(145)	(348)	549	(861)
Unrealized gain (loss) on cash flow hedging instruments, net of tax	391	946	(1,484)	2,331
Reclassification of loss (gain) on cash flow hedging instruments into earnings	129	(356)	674	(1,910)
Income tax (benefit) expense	(35)	96	(182)	516
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	94	(260)	492	(1,394)
Unrealized gain (loss) on available-for-sale securities	19	(25)	4	9
Income tax (expense) benefit	(7)	10	(1)	(3)
Unrealized gain (loss) on available-for-sale securities, net of tax	12	(15)	3	6
Other comprehensive (loss) income	$ (2,956)	$ (14,011)	$ 10,444	$ (30,642)

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 957,310
Ending balance	1,039,019
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(47,204)	$ (23,623)
Current period other comprehensive income (loss)	6,964	(18,853)
Ending balance	(40,240)	(42,476)
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	600	168
Current period other comprehensive income (loss)	(890)	1,398
Less reclassification adjustment	295	(837)
Ending balance	5	729
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(300)	(292)
Current period other comprehensive income (loss)	3	6
Ending balance	(297)	(286)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Ending balance	$ (40,532)	$ (42,033)

Derivatives Financial Instrumen

Derivatives Financial Instruments - Additional Information (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 2,900		$ 2,900
Contract expiring terms			2016-10
Gain (loss) from foreign currency forward contracts not designated as hedging instruments	75	$ 955	$ (389)	$ 2,249
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	22,600		$ 22,600
Contract maturity period			One year or less
Contract expiring terms			2017-03
Pre-tax gain (loss) to be reclassified into earnings within the next 12 months	$ 11		$ 11

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recorded in accumulated other comprehensive loss	$ 536	$ 1,294	$ (2,033)	$ 3,192
(Loss) gain reclassified from accumulated other comprehensive loss into earnings	$ 129	$ (356)	$ 674	$ (1,910)

Fair Value of Derivative Instru

Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 269	$ 1,249
Derivative instruments, liabilities derivatives	118	7
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	269	923
Derivative instruments, liabilities derivatives	91	3
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives		326
Derivative instruments, liabilities derivatives	$ 27	$ 4

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other assets
Assets:
Available-for-sale securities	$ 258	$ 254
Other Current Assets
Assets:
Derivative financial instruments	269	1,249
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	118	7
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	258	254
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	269	1,249
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 118	$ 7

Shareholders Equity - Additiona

Shareholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock	$ 0.85	$ 0.70	$ 2.55	$ 2.10
Shares of non-vested restricted stock granted	23,803	17,500	135,981	189,479
Common stock issued under employee stock purchase plan, shares	2,084	2,433	6,915	7,402
Common stock issued under employee stock purchase plan, net proceeds	$ 286	$ 294	$ 870	$ 847
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	$ 1,834	$ 999	$ 4,092	$ 3,681
Common Stock | Class B Common Stock
Stockholders Equity Note [Line Items]
Stock options exercised, shares	23,584	14,250	58,084	80,450
Non-Vested Restricted Stock | Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	2,936			7,206
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 419			$ 889
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			30,413
Shares withheld as payment for tax withholdings related to share based compensation, market value			$ 3,967
Stock Options | Class B Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares				14,760
Shares withheld as payment for tax withholdings related to share based compensation, market value				$ 1,837
Stock Options | Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	348		348
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 51		$ 51
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Noncontrolling Interest [Line Items]
Noncontrolling interest beginning balance			$ 246,411
Net income attributable to non-controlling interest	$ 17,419	$ 16,676	42,859	$ 43,746
Distributions to non-controlling interest			(26,027)
Foreign currency translation adjustment			4,469
Noncontrolling interest ending balance	$ 267,315		267,315
Non-controlling Interest
Noncontrolling Interest [Line Items]
Loss recorded in accumulated other comprehensive loss			(594)
Gain reclassified from accumulated other comprehensive loss into earnings			$ 197

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 4,156	$ 3,214
Key Suppliers
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 44,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Carrier and Its Affiliates - Supplier Concentration Risk - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	$ 100,000		$ 100,000		$ 85,000
Revenues from sales to Carrier and its affiliates	$ 17,000	$ 18,000	$ 46,000	$ 47,000
Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	62.00%	62.00%	62.00%	62.00%

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) $ in Thousands	Oct. 20, 2016USD ($)
Subsequent Event
Subsequent Event [Line Items]
Payment for aircraft	$ 30,700