Watsco (WSO) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
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		30,513,744
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,228,395

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 1,229,591	$ 1,241,232	$ 3,377,610	$ 3,307,091
Cost of sales	933,696	939,028	2,552,881	2,500,579
Gross profit	295,895	302,204	824,729	806,512
Selling, general and administrative expenses	183,728	182,904	534,515	518,954
Other income	2,294		2,294
Operating income	114,461	119,300	292,508	287,558
Interest expense, net	2,117	996	5,019	3,036
Income before income taxes	112,344	118,304	287,489	284,522
Income taxes	32,325	37,786	82,855	88,406
Net income	80,019	80,518	204,634	196,116
Less: net income attributable to non-controlling interest	14,990	17,419	39,668	42,859
Net income attributable to Watsco, Inc.	$ 65,029	$ 63,099	$ 164,966	$ 153,257
Earnings per share for Common and Class B common stock:
Basic	$ 1.82	$ 1.78	$ 4.62	$ 4.33
Diluted	$ 1.82	$ 1.78	$ 4.62	$ 4.32

Condensed Consolidated Unaudit3

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 80,019	$ 80,518	$ 204,634	$ 196,116
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	9,385	(3,453)	17,310	11,433
Unrealized (loss) gain on cash flow hedging instruments	(934)	391	(1,021)	(1,484)
Reclassification of loss (gain) on cash flow hedging instruments into earnings	64	94	(797)	492
Unrealized gain on available-for-sale securities	13	12	16	3
Other comprehensive income (loss)	8,528	(2,956)	15,508	10,444
Comprehensive income	88,547	77,562	220,142	206,560
Less: comprehensive income attributable to non-controlling interest	18,201	16,291	45,518	46,931
Comprehensive income attributable to Watsco, Inc.	$ 70,346	$ 61,271	$ 174,624	$ 159,629

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 66,667	$ 56,010
Accounts receivable, net	568,457	475,974
Inventories	786,056	685,011
Other current assets	17,761	23,161
Total current assets	1,438,941	1,240,156
Property and equipment, net	91,483	90,502
Goodwill	382,969	379,737
Intangible assets, net	163,013	158,564
Other assets	71,813	5,690
Total assets	2,148,219	1,874,649
Current liabilities:
Current portion of other long-term obligations	244	200
Accounts payable	296,349	185,482
Accrued expenses and other current liabilities	163,806	129,206
Total current liabilities	460,399	314,888
Long-term obligations:
Borrowings under revolving credit agreement	284,700	235,294
Other long-term obligations, net of current portion	345	348
Total long-term obligations	285,045	235,642
Deferred income taxes and other liabilities	70,740	72,371
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,350	18,341
Preferred stock, $0.50 par value
Paid-in capital	582,789	592,350
Accumulated other comprehensive loss, net of tax	(33,872)	(43,530)
Retained earnings	595,980	550,482
Treasury stock, at cost	(113,795)	(114,425)
Total Watsco, Inc. shareholders' equity	1,052,139	1,005,828
Non-controlling interest	279,896	245,920
Total shareholders' equity	1,332,035	1,251,748
Total liabilities and shareholders' equity	2,148,219	1,874,649
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,687	$ 2,610

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 204,634	$ 196,116
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,509	15,078
Share-based compensation	9,599	8,359
Deferred income tax provision	4,101	3,984
Non-cash contribution to 401(k) plan	2,428	2,348
Other income from investment in unconsolidated entity	(2,294)
Other, net	103	1,901
Changes in operating assets and liabilities:
Accounts receivable	(89,394)	(96,692)
Inventories	(97,685)	(63,480)
Accounts payable and other liabilities	137,211	83,549
Other, net	(507)	(4,863)
Net cash provided by operating activities	184,705	146,300
Cash flows from investing activities:
Investment in unconsolidated entity	(63,600)
Capital expenditures	(13,829)	(8,989)
Proceeds from sale of property and equipment	139	675
Net cash used in investing activities	(77,290)	(8,314)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(119,468)	(90,298)
Purchase of additional ownership from non-controlling interest	(42,688)
Distributions to non-controlling interest	(6,799)	(26,027)
Net proceeds (repayments) of other long-term obligations	41	(110)
Net proceeds from issuances of common stock	3,115	4,962
Net proceeds from the sale of Common stock	5,391
Proceeds from non-controlling interest for investment in unconsolidated entity	12,720
Net proceeds (repayments) under revolving credit agreement	49,406	(25,900)
Net cash used in financing activities	(98,282)	(137,373)
Effect of foreign exchange rate changes on cash and cash equivalents	1,524	68
Net increase in cash and cash equivalents	10,657	681
Cash and cash equivalents at beginning of period	56,010	35,229
Cash and cash equivalents at end of period	$ 66,667	$ 35,910

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2017 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 2016 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, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. 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. Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other assets in our consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income. Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2017 presentation. These reclassifications had no effect on net income or earnings per share as previously reported. 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. This standard may be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption, which requires additional footnote disclosures. This standard is effective for our interim and annual reporting periods beginning on January 1, 2018. Based on our initial assessment, we expect similar performance obligations to result under this guidance as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. We continue to evaluate the impact the standard has on our determination of whether we act as principal or agent in certain vendor arrangements, representing less than 3% of our consolidated revenues, as well as analyze certain customer incentives. While we have not yet completed our evaluation process, at this time we have not identified any material impacts to our consolidated net income, balance sheet or cash flows. 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 Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance may be applied either prospectively or retrospectively and became effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 using the prospective approach did not 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. This guidance will be applied using a modified retrospective approach and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We will adopt this guidance on January 1, 2019. While we are still evaluating the impact of adopting this guidance on our consolidated financial statements, including the option to elect certain practical expedients, we expect that, upon adoption, the right-of-use Intangibles—Goodwill and Other In January 2017, the FASB issued guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this updated standard, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity also should consider income tax effects from any tax-deductible Stock Compensation In May 2017, the FASB issued guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued guidance to simplify the accounting for hedging derivatives. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated financial statements.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 65,029 $ 63,099 $ 164,966 $ 153,257 Less: distributed and undistributed earnings allocated to non-vested 5,470 5,081 13,844 12,388 Earnings allocated to Watsco, Inc. shareholders $ 59,559 $ 58,018 $ 151,122 $ 140,869 Weighted-average common shares outstanding - Basic 32,712,151 32,613,995 32,679,334 32,567,073 Basic earnings per share for Common and Class B common stock $ 1.82 $ 1.78 $ 4.62 $ 4.33 Allocation of earnings for Basic: Common stock $ 54,627 $ 53,186 $ 138,594 $ 129,120 Class B common stock 4,932 4,832 12,528 11,749 $ 59,559 $ 58,018 $ 151,122 $ 140,869 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 65,029 $ 63,099 $ 164,966 $ 153,257 Less: distributed and undistributed earnings allocated to non-vested 5,468 5,078 13,840 12,383 Earnings allocated to Watsco, Inc. shareholders $ 59,561 $ 58,021 $ 151,126 $ 140,874 Weighted-average common shares outstanding - Basic 32,712,151 32,613,995 32,679,334 32,567,073 Effect of dilutive stock options 34,215 36,158 32,516 34,042 Weighted-average common shares outstanding - Diluted 32,746,366 32,650,153 32,711,850 32,601,115 Diluted earnings per share for Common and Class B common stock $ 1.82 $ 1.78 $ 4.62 $ 4.32 Anti-dilutive stock options not included above 12,571 3,565 33,156 18,876 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, 2017 and 2016, our outstanding Class B common stock was convertible into 2,709,194 and 2,716,320 shares of our Common stock, respectively.

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2017
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 Quarter Ended Nine Months Ended 2017 2016 2017 2016 Foreign currency translation adjustment $ 9,385 $ (3,453 ) $ 17,310 $ 11,433 Unrealized (loss) gain on cash flow hedging instruments (1,280 ) 536 (1,399 ) (2,033 ) Income tax benefit (expense) 346 (145 ) 378 549 Unrealized (loss) gain on cash flow hedging instruments, net of tax (934 ) 391 (1,021 ) (1,484 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings 88 129 (1,092 ) 674 Income tax (benefit) expense (24 ) (35 ) 295 (182 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 64 94 (797 ) 492 Unrealized gain on available-for-sale 20 19 25 4 Income tax expense (7 ) (7 ) (9 ) (1 ) Unrealized gain on available-for-sale 13 12 16 3 Other comprehensive income (loss) $ 8,528 $ (2,956 ) $ 15,508 $ 10,444 The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2017 2016 Foreign currency translation adjustment: Beginning balance $ (43,459 ) $ (47,204 ) Current period other comprehensive income 10,733 6,964 Ending balance (32,726 ) (40,240 ) Cash flow hedging instruments: Beginning balance 215 600 Current period other comprehensive loss (613 ) (890 ) Less reclassification adjustment (478 ) 295 Ending balance (876 ) 5 Available-for-sale Beginning balance (286 ) (300 ) Current period other comprehensive income 16 3 Ending balance (270 ) (297 ) Accumulated other comprehensive loss, net of tax $ (33,872 ) $ (40,532 )

DEBT

DEBT	9 Months Ended
	Sep. 30, 2017
DEBT	4. DEBT We maintain an unsecured, syndicated revolving credit agreement that provides for borrowings of up to $600,000. Borrowings are used to fund seasonal working capital needs and for other general corporate purposes, including acquisitions, dividends (if and as declared by our Board of Directors), capital expenditures, stock repurchases and issuances of letters of credit. The credit agreement matures on July 1, 2019. Included in the credit facility are a $90,000 swingline subfacility, a letter of credit subfacility and a $75,000 multicurrency borrowing sublimit. On January 24, 2017, we entered into an amendment to this credit agreement, which reduced the letter of credit subfacility from $50,000 to $10,000 and modified certain definitions. At September 30, 2017 and December 31, 2016, $284,700 and $235,294, 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 September 30, 2017.

PURCHASE OF ADDITIONAL OWNERSHI

PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE	9 Months Ended
	Sep. 30, 2017
PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE	5. PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE In 2011, we formed a joint venture with Carrier Corporation (“Carrier”), Carrier Enterprise Northeast LLC, which we refer to as Carrier Enterprise II. Carrier Enterprise II had sales of approximately $500,000 in 2016 from 41 locations in the northeastern United States and 12 locations in Mexico. We initially owned a 60% controlling interest in Carrier Enterprise II. On November 29, 2016, we purchased an additional 10% ownership interest for cash consideration of $42,909, and, on February 13, 2017, we purchased an additional 10% ownership interest for cash consideration of $42,688, which together increased our controlling interest in Carrier Enterprise II to 80%.

INVESTMENT IN UNCONSOLIDATED EN

INVESTMENT IN UNCONSOLIDATED ENTITY	9 Months Ended
	Sep. 30, 2017
INVESTMENT IN UNCONSOLIDATED ENTITY	6. INVESTMENT IN UNCONSOLIDATED ENTITY On June 21, 2017, our first joint venture with Carrier, Carrier Enterprise, LLC, which we refer to as Carrier Enterprise I, acquired an approximately 35% ownership interest in Russell Sigler, Inc. (“RSI”), an HVAC distributor with annual sales of approximately $650,000 operating from 30 locations in the Western U.S. We have an 80% controlling interest in Carrier Enterprise I, and Carrier has a 20% non-controlling

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2017
DERIVATIVES	7. DERIVATIVES We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at September 30, 2017, 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, 2017 was $29,200, and such contracts have varying terms expiring through June 2018. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Nine Months Ended 2017 2016 2017 2016 (Loss) gain recorded in accumulated other comprehensive loss $ (1,280 ) $ 536 $ (1,399 ) $ (2,033 ) Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 88 $ 129 $ (1,092 ) $ 674 At September 30, 2017, we expected an estimated $2,001 pre-tax Derivatives Not Designated as Hedging Instruments We have also entered into foreign currency forward contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at September 30, 2017 was $7,900, and such contracts have varying terms expiring through November 2017. We recognized a (loss) gain of $(502) and $75 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended September 30, 2017 and 2016, respectively. We recognized losses of $912 and $389 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, 2017 and 2016, 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 8. Asset Derivatives Liability Derivatives September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments $ 84 $ 227 $ 1,346 $ 35 Derivatives not designated as hedging instruments 114 14 32 4 Total derivative instruments $ 198 $ 241 $ 1,378 $ 39

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2017
FAIR VALUE MEASUREMENTS	8. 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 Other assets $ 306 $ 306 $ — $ — Derivative financial instruments Other current assets $ 198 $ — $ 198 $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 1,378 $ — $ 1,378 $ — Fair Value Measurements Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 281 $ 281 $ — $ — Derivative financial instruments Other current assets $ 241 $ — $ 241 $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 39 $ — $ 39 $ — 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 Derivative financial instruments There were no transfers in or out of Level 1 and Level 2 during the nine months ended September 30, 2017.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
SHAREHOLDERS' EQUITY	9. SHAREHOLDERS’ EQUITY At-the-Market On August 23, 2017, we entered into a sales agreement with Robert W. Baird & Co. Inc. (the “Agent”), which we refer to as the Sales Agreement, pursuant to which we may issue and sell shares of our Common stock, from time to time, having a maximum aggregate offering price of up to $250,000 through the Agent. Sales, if any, may be made in one or more negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933. The offering of shares in accordance with the Sales Agreement has been registered pursuant to our automatically effective shelf registration statement on Form S-3 No. 333-207831). We intend to use the net proceeds, if any, from the sale of shares pursuant to the Sales Agreement for general corporate purposes, which may include, without limitation, the acquisition of complementary businesses, the repayment of outstanding indebtedness, capital expenditures and working capital. The Sales Agreement contains customary representations, warranties and covenants. We believe we were in compliance with all covenants at September 30, 2017. During the quarter and nine months ended September 30, 2017, we sold 35,000 shares of Common stock under the Sales Agreement for net proceeds of $5,391, after $49 of compensation paid to the Agent. Direct costs of $285 incurred in connection with the offering were charged against the proceeds from the sale of Common stock and were accounted for as a reduction of paid-in Common Stock Dividends We paid cash dividends of $1.25, $0.85, $3.35 and $2.55 per share of Common stock and Class B common stock during the quarters and nine months ended September 30, 2017 and 2016, respectively. Non-Vested During the quarters ended September 30, 2017 and 2016, we granted 9,000 and 23,803 shares of non-vested non-vested During the quarter ended September 30, 2017, 12,354 shares of Common stock with an aggregate fair market value of $1,893 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested non-vested non-vested non-vested Exercise of Stock Options During the quarters ended September 30, 2017 and 2016, 9,084 and 23,584 stock options, respectively, were exercised for Common stock. During the nine months ended September 30, 2017 and 2016, 25,084 and 58,084 stock options, respectively, were exercised for Common stock. Cash received from common stock issued as a result of stock options exercised during the quarters and nine months ended September 30, 2017 and 2016, was $801, $1,834, $2,111 and $4,092, respectively. During the quarter and nine months ended September 30, 2017, 350 shares of Common stock with an aggregate fair market value of $53 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. 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. These shares were retired upon delivery. Employee Stock Purchase Plan During the quarters ended September 30, 2017 and 2016, 2,718 and 2,084 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $402 and $286, respectively. During the nine months ended September 30, 2017 and 2016, 6,977 and 6,915 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $1,004 and $870, respectively. 401(k) Plan During the nine months ended September 30, 2017 and 2016, we issued 16,389 and 20,045 shares of Common stock, respectively, to our profit sharing retirement plan, representing the Common stock discretionary matching contribution of $2,428 and $2,348, respectively. Non-controlling Of our three joint ventures with Carrier, we have a 60% controlling interest in one and an 80% controlling interest in each of the other two, while Carrier has either a 40% or 20% non-controlling non-controlling Non-controlling $ 245,920 Net income attributable to non-controlling 39,668 Contribution for unconsolidated entity 12,720 Foreign currency translation adjustment 6,577 Decrease in non-controlling (17,463 ) Distributions to non-controlling (6,799 ) Loss recorded in accumulated other comprehensive loss (408 ) Gain reclassified from accumulated other comprehensive loss into earnings (319 ) Non-controlling $ 279,896

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments In December 2015, a purported Watsco shareholder, Nelson Gaskins (the “Plaintiff”), filed a derivative lawsuit in the U.S. District Court for the Southern District of Florida (the “Court”) against Watsco’s Board of Directors. The Company was a nominal defendant. The lawsuit alleged breach of fiduciary duties regarding CEO incentive compensation and sought to recover alleged excessive incentive compensation and unspecified damages. The Court dismissed this action, and the Plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Eleventh Circuit (the “Appellate Court”). In May 2017, the Appellate Court dismissed the Plaintiff’s appeal and the action with prejudice. Neither the Plaintiff nor the Plaintiff’s lawyers received any payment from, or on behalf of, Watsco or its Directors in connection with this lawsuit and the related appeal. We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,757 and $2,951 at September 30, 2017 and December 31, 2016, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
RELATED PARTY TRANSACTIONS	11. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 62% of all inventory purchases made during both the quarters ended September 30, 2017 and 2016. Purchases from Carrier and its affiliates comprised 62% of all inventory purchases made during both the nine months ended September 30, 2017 and 2016. At September 30, 2017 and December 31, 2016, approximately $134,000 and $63,000, 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, 2017 and 2016 included approximately $19,000, $17,000, $51,000 and $46,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length A member of our Board of Directors is the Chairman and Chief Executive Officer of Moss & Associates LLC, which serves as general contractor for the remodeling of our Miami headquarters. We paid Moss & Associates LLC $58 and $702 for construction services performed during the quarter and nine months ended September 30, 2017, respectively, and $180 was payable at September 30, 2017. A member of our Board of Directors is the Senior Chairman of Greenberg Traurig, P.A., which serves as our principal outside counsel and receives customary fees for legal services. During the quarter and nine months ended September 30, 2017, we paid this firm $71 and $291, respectively, for services performed and $67 was payable at September 30, 2017.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2017
Basis of Consolidation	Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2017 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 2016 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, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. 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.
Equity Method Investments	Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other assets in our consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income.
Reclassifications	Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2017 presentation. These reclassifications had no effect on net income or earnings per share as previously reported.
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. This standard may be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption, which requires additional footnote disclosures. This standard is effective for our interim and annual reporting periods beginning on January 1, 2018. Based on our initial assessment, we expect similar performance obligations to result under this guidance as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. We continue to evaluate the impact the standard has on our determination of whether we act as principal or agent in certain vendor arrangements, representing less than 3% of our consolidated revenues, as well as analyze certain customer incentives. While we have not yet completed our evaluation process, at this time we have not identified any material impacts to our consolidated net income, balance sheet or cash flows. 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 Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance may be applied either prospectively or retrospectively and became effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of this guidance on January 1, 2017 using the prospective approach did not 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. This guidance will be applied using a modified retrospective approach and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We will adopt this guidance on January 1, 2019. While we are still evaluating the impact of adopting this guidance on our consolidated financial statements, including the option to elect certain practical expedients, we expect that, upon adoption, the right-of-use Intangibles—Goodwill and Other In January 2017, the FASB issued guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this updated standard, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity also should consider income tax effects from any tax-deductible Stock Compensation In May 2017, the FASB issued guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued guidance to simplify the accounting for hedging derivatives. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated financial statements.
Self-Insurance	Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,757 and $2,951 at September 30, 2017 and December 31, 2016, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 65,029 $ 63,099 $ 164,966 $ 153,257 Less: distributed and undistributed earnings allocated to non-vested 5,470 5,081 13,844 12,388 Earnings allocated to Watsco, Inc. shareholders $ 59,559 $ 58,018 $ 151,122 $ 140,869 Weighted-average common shares outstanding - Basic 32,712,151 32,613,995 32,679,334 32,567,073 Basic earnings per share for Common and Class B common stock $ 1.82 $ 1.78 $ 4.62 $ 4.33 Allocation of earnings for Basic: Common stock $ 54,627 $ 53,186 $ 138,594 $ 129,120 Class B common stock 4,932 4,832 12,528 11,749 $ 59,559 $ 58,018 $ 151,122 $ 140,869 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 65,029 $ 63,099 $ 164,966 $ 153,257 Less: distributed and undistributed earnings allocated to non-vested 5,468 5,078 13,840 12,383 Earnings allocated to Watsco, Inc. shareholders $ 59,561 $ 58,021 $ 151,126 $ 140,874 Weighted-average common shares outstanding - Basic 32,712,151 32,613,995 32,679,334 32,567,073 Effect of dilutive stock options 34,215 36,158 32,516 34,042 Weighted-average common shares outstanding - Diluted 32,746,366 32,650,153 32,711,850 32,601,115 Diluted earnings per share for Common and Class B common stock $ 1.82 $ 1.78 $ 4.62 $ 4.32 Anti-dilutive stock options not included above 12,571 3,565 33,156 18,876

OTHER COMPREHENSIVE INCOME (L20

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended 2017 2016 2017 2016 Foreign currency translation adjustment $ 9,385 $ (3,453 ) $ 17,310 $ 11,433 Unrealized (loss) gain on cash flow hedging instruments (1,280 ) 536 (1,399 ) (2,033 ) Income tax benefit (expense) 346 (145 ) 378 549 Unrealized (loss) gain on cash flow hedging instruments, net of tax (934 ) 391 (1,021 ) (1,484 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings 88 129 (1,092 ) 674 Income tax (benefit) expense (24 ) (35 ) 295 (182 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 64 94 (797 ) 492 Unrealized gain on available-for-sale 20 19 25 4 Income tax expense (7 ) (7 ) (9 ) (1 ) Unrealized gain on available-for-sale 13 12 16 3 Other comprehensive income (loss) $ 8,528 $ (2,956 ) $ 15,508 $ 10,444
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, 2017 2016 Foreign currency translation adjustment: Beginning balance $ (43,459 ) $ (47,204 ) Current period other comprehensive income 10,733 6,964 Ending balance (32,726 ) (40,240 ) Cash flow hedging instruments: Beginning balance 215 600 Current period other comprehensive loss (613 ) (890 ) Less reclassification adjustment (478 ) 295 Ending balance (876 ) 5 Available-for-sale Beginning balance (286 ) (300 ) Current period other comprehensive income 16 3 Ending balance (270 ) (297 ) Accumulated other comprehensive loss, net of tax $ (33,872 ) $ (40,532 )

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended 2017 2016 2017 2016 (Loss) gain recorded in accumulated other comprehensive loss $ (1,280 ) $ 536 $ (1,399 ) $ (2,033 ) Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 88 $ 129 $ (1,092 ) $ 674
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 8. Asset Derivatives Liability Derivatives September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments $ 84 $ 227 $ 1,346 $ 35 Derivatives not designated as hedging instruments 114 14 32 4 Total derivative instruments $ 198 $ 241 $ 1,378 $ 39

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
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 Other assets $ 306 $ 306 $ — $ — Derivative financial instruments Other current assets $ 198 $ — $ 198 $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 1,378 $ — $ 1,378 $ — Fair Value Measurements Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 281 $ 281 $ — $ — Derivative financial instruments Other current assets $ 241 $ — $ 241 $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 39 $ — $ 39 $ —

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of Rollforward of Non-controlling Interest Balance	The following table reconciles shareholders’ equity attributable to Carrier’s non-controlling Non-controlling $ 245,920 Net income attributable to non-controlling 39,668 Contribution for unconsolidated entity 12,720 Foreign currency translation adjustment 6,577 Decrease in non-controlling (17,463 ) Distributions to non-controlling (6,799 ) Loss recorded in accumulated other comprehensive loss (408 ) Gain reclassified from accumulated other comprehensive loss into earnings (319 ) Non-controlling $ 279,896

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017Entity
Significant Accounting Policies [Line Items]
Number of joint ventures	3
Certain Vendor Initial Assessment | Maximum
Significant Accounting Policies [Line Items]
Concentration risk percentage	3.00%

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 65,029	$ 63,099	$ 164,966	$ 153,257
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,470	5,081	13,844	12,388
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 59,559	$ 58,018	$ 151,122	$ 140,869
Weighted-average common shares outstanding - Basic	32,712,151	32,613,995	32,679,334	32,567,073
Basic earnings per share for Common and Class B common stock	$ 1.82	$ 1.78	$ 4.62	$ 4.33
Net income attributable to Watsco, Inc. shareholders	$ 65,029	$ 63,099	$ 164,966	$ 153,257
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	5,468	5,078	13,840	12,383
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 59,561	$ 58,021	$ 151,126	$ 140,874
Weighted-average common shares outstanding - Basic	32,712,151	32,613,995	32,679,334	32,567,073
Effect of dilutive stock options	34,215	36,158	32,516	34,042
Weighted-average common shares outstanding - Diluted	32,746,366	32,650,153	32,711,850	32,601,115
Diluted earnings per share for Common and Class B common stock	$ 1.82	$ 1.78	$ 4.62	$ 4.32
Anti-dilutive stock options not included above	12,571	3,565	33,156	18,876
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 54,627	$ 53,186	$ 138,594	$ 129,120
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 4,932	$ 4,832	$ 12,528	$ 11,749

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,709,194	2,716,320

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 9,385	$ (3,453)	$ 17,310	$ 11,433
Unrealized (loss) gain on cash flow hedging instruments	(1,280)	536	(1,399)	(2,033)
Income tax benefit (expense)	346	(145)	378	549
Unrealized (loss) gain on cash flow hedging instruments, net of tax	(934)	391	(1,021)	(1,484)
Reclassification of loss (gain) on cash flow hedging instruments into earnings	88	129	(1,092)	674
Income tax (benefit) expense	(24)	(35)	295	(182)
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	64	94	(797)	492
Unrealized gain on available-for-sale securities	20	19	25	4
Income tax expense	(7)	(7)	(9)	(1)
Unrealized gain on available-for-sale securities, net of tax	13	12	16	3
Other comprehensive income (loss)	$ 8,528	$ (2,956)	$ 15,508	$ 10,444

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (43,530)
Ending balance	(33,872)	$ (40,532)
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(43,459)	(47,204)
Current period other comprehensive income (loss)	10,733	6,964
Ending balance	(32,726)	(40,240)
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	215	600
Current period other comprehensive income (loss)	(613)	(890)
Less reclassification adjustment	(478)	295
Ending balance	(876)	5
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(286)	(300)
Current period other comprehensive income (loss)	16	3
Ending balance	$ (270)	$ (297)

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 600,000,000
Revolving credit agreement maturity date	Jul. 1, 2019
Borrowings under revolving credit agreement	$ 284,700,000	$ 235,294,000
Swingline Subfacility
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	90,000,000
Multicurrency borrowing sublimit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	75,000,000
Letter of Credit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 10,000,000	$ 50,000,000

Purchase of Additional Owners30

Purchase of Additional Ownership Interest in Joint Ventures - Additional Information (Detail) $ in Thousands	Feb. 13, 2017USD ($)	Nov. 29, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)Location	Jul. 31, 2011
Business Acquisition [Line Items]
Revenues			$ 1,229,591	$ 1,241,232	$ 3,377,610	$ 3,307,091
Carrier Enterprise II
Business Acquisition [Line Items]
Additional ownership interest acquired	10.00%	10.00%
Revenues							$ 500,000
Cash consideration	$ 42,688	$ 42,909
Controlling interest, ownership percentage	80.00%							60.00%
Carrier Enterprise II | Northeast U.S.
Business Acquisition [Line Items]
Number of locations | Location							41
Carrier Enterprise II | MEXICO
Business Acquisition [Line Items]
Number of locations | Location							12

Investment in Unconsolidated Af

Investment in Unconsolidated Affiliate - Additional Information (Detail) $ in Thousands	Jun. 21, 2017USD ($)board_memberLocation	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entity		$ 63,600
Proceeds from non-controlling interest for investment in unconsolidated entity		$ 12,720
Carrier Enterprise I
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired	35.00%
Ownership percentage by parent	80.00%	80.00%
Ownership percentage, by non-controlling owners	20.00%	20.00%
Investment in unconsolidated entity	$ 63,600
Contribution to investment in unconsolidated entity by controlling interest	50,880
Proceeds from non-controlling interest for investment in unconsolidated entity	$ 12,720
Russell Sigler Inc | Western United States [Member]
Schedule of Equity Method Investments [Line Items]
Number of locations | Location	30
Russell Sigler sales			$ 650,000
Russell Sigler Inc | Carrier Enterprise I
Schedule of Equity Method Investments [Line Items]
Ownership percentage needed for right to purchase up to 100%	85.00%
Total number of board members | board_member	6
Number of board members that can be appointed based on ownership | board_member	2

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 7,900		$ 7,900
Contract expiring terms			2017-11
(Loss) gain from foreign currency forward contracts not designated as hedging instruments	(502)	$ 75	$ (912)	$ (389)
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	29,200		$ 29,200
Contract maturity period			One year or less
Contract expiring terms			2018-06
Pre-tax loss to be reclassified into earnings within the next 12 months	$ 2,001		$ 2,001

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	$ (1,280)	$ 536	$ (1,399)	$ (2,033)
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	$ 88	$ 129	$ (1,092)	$ 674

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, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 198	$ 241
Derivative instruments, liabilities derivatives	1,378	39
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	84	227
Derivative instruments, liabilities derivatives	1,346	35
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	114	14
Derivative instruments, liabilities derivatives	$ 32	$ 4

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other assets
Assets:
Available-for-sale securities	$ 306	$ 281
Other Current Assets
Assets:
Derivative financial instruments	198	241
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	1,378	39
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	306	281
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	198	241
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 1,378	$ 39

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 23, 2017	Jun. 21, 2017
Stockholders Equity Note [Line Items]
Maximum aggregate offering price under sales agreement					$ 250,000,000
Sale of common stock, shares			35,000
Net proceeds from the sale of Common stock			$ 5,391,000
Direct stock issuance costs			285,000
Amount available for sale under sales agreement	$ 244,560,000		244,560,000
Compensation paid to the Agent			$ 49,000
Cash dividends paid per share of Common and Class B common stock	$ 1.25	$ 0.85	$ 3.35	$ 2.55
Shares of non-vested restricted stock granted	9,000	23,803	164,899	135,981
Common stock issued under employee stock purchase plan, shares	2,718	2,084	6,977	6,915
Common stock issued under employee stock purchase plan, net proceeds	$ 402,000	$ 286,000	$ 1,004,000	$ 870,000
Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	350	348	350	348
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 53,000	$ 51,000	$ 53,000	$ 51,000
Stock options exercised, shares	9,084	23,584	25,084	58,084
Stock options exercised, proceeds	$ 801,000	$ 1,834,000	$ 2,111,000	$ 4,092,000
Carrier Enterprise I
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	80.00%		80.00%			80.00%
Non-controlling interest, ownership percentage	20.00%		20.00%			20.00%
Carrier Enterprise II
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	80.00%		80.00%
Non-controlling interest, ownership percentage	20.00%		20.00%
Carrier Enterprise III
Stockholders Equity Note [Line Items]
Controlling interest, ownership percentage	60.00%		60.00%
Non-controlling interest, ownership percentage	40.00%		40.00%
Non-Vested Restricted Stock | Common Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	12,354	2,936	32,454
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 1,893,000	$ 419,000	$ 4,664,000
Non-Vested Restricted Stock | Common Stock 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				$ 3,967,000
401(k) Plan
Stockholders Equity Note [Line Items]
Common stock contribution to 401(k) Plan, shares			16,389	20,045
Common stock contribution to 401(k) plan			$ 2,428,000	$ 2,348,000

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Noncontrolling Interest [Line Items]
Noncontrolling interest beginning balance			$ 245,920
Net income attributable to non-controlling interest	$ 14,990	$ 17,419	39,668	$ 42,859
Contribution for unconsolidated entity			12,720
Foreign currency translation adjustment			6,577
Decrease in non-controlling interest in Carrier Enterprise II			(17,463)
Distributions to non-controlling interest			(6,799)
Noncontrolling interest ending balance	$ 279,896		279,896
Non-controlling Interest
Noncontrolling Interest [Line Items]
Loss recorded in accumulated other comprehensive loss			(408)
Gain reclassified from accumulated other comprehensive loss into earnings			$ (319)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 2,757	$ 2,951

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	$ 134,000		$ 134,000		$ 63,000
Revenues from sales to Carrier and its affiliates	$ 19,000	$ 17,000	$ 51,000	$ 46,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	62.00%	62.00%	62.00%	62.00%
Moss & Associates LLC | Customary Payments for Remodeling of Corporate Headquarters
Related Party Transaction [Line Items]
Payment for related party transaction	$ 58		$ 702
Amount payable to related party	180		180
Greenberg Traurig, P.A. | Customary Fees for Legal Services
Related Party Transaction [Line Items]
Payment for related party transaction	71		291
Amount payable to related party	$ 67		$ 67