Watsco (WSO) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	WATSCO INC
Entity Central Index Key	0000105016
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	WSO
Entity Emerging Growth Company	false
Entity Small Business	false
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		32,228,694
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,420,019

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues	$ 931,278	$ 926,577
Cost of sales	697,518	695,744
Gross profit	233,760	230,833
Selling, general and administrative expenses	180,072	178,534
Other income	1,444	1,638
Operating income	55,132	53,937
Interest expense, net	776	565
Income before income taxes	54,356	53,372
Income taxes	10,552	10,995
Net income	43,804	42,377
Less: net income attributable to non-controlling interest	8,767	8,158
Net income attributable to Watsco, Inc.	$ 35,037	$ 34,219
Earnings per share for Common and Class B common stock:
Basic	$ 0.88	$ 0.89
Diluted	$ 0.88	$ 0.89

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income	$ 43,804	$ 42,377
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	5,005	(6,645)
Unrealized (loss) gain on cash flow hedging instruments arising during the period	(536)	151
Reclassification of (gain) loss on cash flow hedging instruments into earnings	(274)	753
Other comprehensive income (loss)	4,195	(5,741)
Comprehensive income	47,999	36,636
Less: comprehensive income attributable to non-controlling interest	10,179	6,066
Comprehensive income attributable to Watsco, Inc.	$ 37,820	$ 30,570

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 77,273	$ 82,894
Accounts receivable, net	504,719	501,908
Inventories	893,640	837,129
Other current assets	14,752	19,875
Total current assets	1,490,384	1,441,806
Property and equipment, net	93,176	91,046
Operating lease right-of-use assets	183,326
Goodwill	393,504	391,998
Intangible assets, net	148,797	147,851
Other assets	89,756	88,332
Total assets	2,398,943	2,161,033
Current liabilities:
Current portion of long-term obligations	58,506	246
Short-term borrowings	2,340
Accounts payable	278,634	200,229
Accrued expenses and other current liabilities	130,293	157,091
Total current liabilities	469,773	357,566
Long-term obligations:
Borrowings under revolving credit agreement	137,500	135,200
Operating lease liabilities, net of current portion	124,485
Other long-term obligations, net of current portion	1,749	552
Total long-term obligations	263,734	135,752
Deferred income taxes and other liabilities	66,181	66,002
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value
Paid-in capital	841,575	832,121
Accumulated other comprehensive loss, net of tax	(43,185)	(45,968)
Retained earnings	603,041	627,969
Treasury stock, at cost	(87,440)	(87,440)
Total Watsco, Inc. shareholders' equity	1,335,212	1,347,849
Non-controlling interest	264,043	253,864
Total shareholders' equity	1,599,255	1,601,713
Total liabilities and shareholders' equity	2,398,943	2,161,033
Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,498	18,476
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,723	$ 2,691

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value	$ 0.50	$ 0.50
Common Stock
Common stock, par value	0.50	0.50
Class B Common Stock
Common stock, par value	$ 0.50	$ 0.50

Condensed Consolidated Unaudi_3

Condensed Consolidated Unaudited Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock, Class B Common Stock and Preferred Stock	Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest
Beginning balance at Dec. 31, 2017	$ 1,550,977	$ 21,050	$ 804,008	$ (34,221)	$ 594,556	$ (87,440)	$ 253,024
Beginning balance (in shares) at Dec. 31, 2017		37,228,715
Cumulative-effect adjustment at Dec. 31, 2017				301	(301)
Net income	42,377				34,219		8,158
Other comprehensive income (loss)	(5,741)			(3,649)			(2,092)
Issuances of non-vested restricted shares of common stock (in shares)		91,609
Issuances of non-vested restricted shares of common stock		$ 46	(46)
Forfeitures of non-vested restricted shares of common stock (in shares)		(3,000)
Forfeitures of non-vested restricted shares of common stock		$ (2)	2
Common stock contribution to 401(k) plan	2,945	$ 9	2,936
Common stock contribution to 401(k) plan (in shares)		17,318
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		37,130
Stock issuances from exercise of stock options and employee stock purchase plan	4,341	$ 19	4,322
Retirement of common stock (in shares)		(5,041)
Retirement of common stock	(914)	$ (3)	(911)
Share-based compensation	4,400		4,400
Cash dividends declared and paid on Common and Class B common stock	(46,581)				(46,581)
Distributions to non-controlling interest	(2,178)						(2,178)
Ending balance at Mar. 31, 2018	1,549,626	$ 21,119	814,711	(37,569)	581,893	(87,440)	256,912
Ending balance (in shares) at Mar. 31, 2018		37,366,731
Beginning balance at Dec. 31, 2018	1,601,713	$ 21,167	832,121	(45,968)	627,969	(87,440)	253,864
Beginning balance (in shares) at Dec. 31, 2018		37,461,643
Net income	43,804				35,037		8,767
Other comprehensive income (loss)	4,195			2,783			1,412
Issuances of non-vested restricted shares of common stock (in shares)		77,049
Issuances of non-vested restricted shares of common stock		$ 39	(39)
Forfeitures of non-vested restricted shares of common stock (in shares)		(5,000)
Forfeitures of non-vested restricted shares of common stock		$ (3)	3
Common stock contribution to 401(k) plan	4,274	$ 15	4,259
Common stock contribution to 401(k) plan (in shares)		30,715
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		8,925
Stock issuances from exercise of stock options and employee stock purchase plan	1,125	$ 4	1,121
Retirement of common stock (in shares)		(2,985)
Retirement of common stock	(428)	$ (1)	(427)
Share-based compensation	4,537		4,537
Cash dividends declared and paid on Common and Class B common stock	(59,965)				(59,965)
Ending balance at Mar. 31, 2019	$ 1,599,255	$ 21,221	$ 841,575	$ (43,185)	$ 603,041	$ (87,440)	$ 264,043
Ending balance (in shares) at Mar. 31, 2019		37,570,347

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash dividends declared and paid, common stock	$ 1.60	$ 1.25

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 43,804	$ 42,377
Adjustments to reconcile net income to net cash provided by (used in) by operating activities:
Depreciation and amortization	5,768	5,538
Non-cash contribution to 401(k) plan	4,274	2,945
Share-based compensation	3,849	3,590
Provision for doubtful accounts	1,406	898
Other income from investment in unconsolidated entity	(1,444)	(1,638)
Other, net	(221)	431
Changes in operating assets and liabilities:
Accounts receivable	(2,329)	(10,059)
Inventories	(55,560)	(49,937)
Accounts payable and other liabilities	55,350	(36,649)
Other, net	(1,961)	890
Net cash provided by (used in) operating activities	52,936	(41,614)
Cash flows from investing activities:
Capital expenditures	(4,132)	(3,494)
Proceeds from sale of property and equipment	29	62
Net cash used in investing activities	(4,103)	(3,432)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(59,965)	(46,581)
Repurchases of common stock to satisfy employee withholding tax obligations	(428)
Net repayments of long-term obligations	(230)	(60)
Distributions to non-controlling interest		(2,178)
Net proceeds from issuances of common stock	1,127	2,958
Net proceeds under revolving credit agreement	2,300	69,200
Proceeds from short-term borrowings	2,340
Net cash (used in) provided by financing activities	(54,856)	23,339
Effect of foreign exchange rate changes on cash and cash equivalents	402	(716)
Net decrease in cash and cash equivalents	(5,621)	(22,423)
Cash and cash equivalents at beginning of period	82,894	80,496
Cash and cash equivalents at end of period	$ 77,273	$ 58,073

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 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 2018 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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 evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions. 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 loss contingencies and the valuation of goodwill, indefinite lived intangible assets and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“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. In July 2018, the FASB issued updated guidance that provides an additional transition method of adoption that allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this standard and its related amendments (collectively, the “New Lease Standard”) on January 1, 2019, did not result in the recognition of a cumulative adjustment to opening retained earnings under the additional transition method, nor did it have a significant impact on our consolidated statements of income or cash flows. See Note 2. Recently Issued Accounting Standards Not Yet Adopted 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 goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if any. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
LEASES	2. LEASES Adoption of New Lease Standard We adopted the New Lease Standard on January 1, 2019 using the additional transition method described in Note 1 to these condensed consolidated unaudited financial statements. The New Lease Standard had a material impact on our consolidated balance sheet due to the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases, while accounting for finance leases remained substantially unchanged. Results for reporting periods beginning on and after January 1, 2019 are presented under the New Lease Standard, while prior period results have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Practical Expedients We elected the package of practical expedients not to reassess 1) whether existing contracts contain embedded leases, 2) lease classification for existing leases and 3) whether initial direct costs for existing leases would qualify for capitalization under the New Lease Standard. We also elected the practical expedients related to short-term leases and separating lease components from non-lease components for all underlying asset classes. Operating and Finance Leases We have operating leases for real property, vehicles and equipment and finance leases primarily for vehicles. Operating leases are included in operating lease right-of-use assets, current portion of long-term obligations, and operating lease liabilities in our consolidated balance sheet. Finance leases are not considered significant to our consolidated balance shee , of $ are included in property and equipment, net in our consolidated balance sheet. Finance lease liabilities at March , of $ are included in current portion of long-term obligations and other long-term obligations, net of current portion in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement dates of the respective leases in determining the present value of the applicable lease payments. Operating lease ROU assets also include any lease pre-payments made and exclude lease incentives. Certain of our leases include variable payments, which are excluded from lease ROU assets and lease liabilities, and are expensed as incurred. Our leases have remaining lease terms of - years, The components of operating lease expense were as follows: Quarter ended March 31, 2019 Lease cost $ 17,776 Short-term lease cost 2,173 Variable lease cost 843 Sublease income (49 ) Total operating lease cost $ 20,743 Supplemental balance sheet information related to operating leases were as follows: March 31, 2019 ROU assets $ 183,326 Current portion of long-term obligations $ 57,373 Operating lease liabilities 124,485 Total operating lease liabilities $ 181,858 Weighted Average Remaining Lease Term (in years) 3.7 years Weighted Average Discount Rate 4.56 % Supplemental cash flow information related to operating leases were as follows: Quarter Ended March 31, 2019 Operating cash flows for the measurement of operating lease liabilities $ 17,393 Operating lease right-of-use assets obtained in exchange for operating lease obligations $ 198,976 At March 31 , 2019 , maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2019, excluding the quarter ended March 31, 2019 $ 49,782 2020 54,414 2021 41,900 2022 28,251 2023 15,745 Thereafter 8,503 Total lease payments 198,595 Less imputed interest 16,737 Total lease liability $ 181,858 At March 31, 2019, we had additional operating leases, primarily for real property, that had not yet commenced. Such leases had estimated future minimum rental commitments of approximately $14,000. These operating leases are expected to commence in 2019 with lease terms of 5-11 years. These undiscounted amounts are not included in the table above. Prior to the adoption of the New Lease Standard, rental commitments on an undiscounted basis were approximately $219,300 at December 31, 2018 under non-cancelable operating leases and were payable as follows: $70,400 in 2019, $55,100 in 2020, $41,300 in 2021, $28,500 in 2022, $15,700 in 2023 and $8,300 thereafter.

REVENUES

REVENUES	3 Months Ended
	Mar. 31, 2019
REVENUES	3. REVENUES Disaggregation of Revenues The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarters Ended March 31, 2019 2018 Primary Geographical Regions: United States $ 806,511 $ 809,502 Canada 59,256 52,360 Latin America and the Caribbean 65,511 64,715 $ 931,278 $ 926,577 Major Product Lines: HVAC equipment 67 % 66 % Other HVAC products 29 % 29 % Commercial refrigeration products 4 % 5 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE	4. EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Quarters Ended March 31, 2019 2018 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 35,037 $ 34,219 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 4,924 3,775 Earnings allocated to Watsco, Inc. shareholders $ 30,113 $ 30,444 Weighted-average common shares outstanding – Basic 34,388,117 34,254,331 Basic earnings per share for Common and Class B common stock $ 0.88 $ 0.89 Allocation of earnings for Basic: Common stock $ 27,856 $ 28,134 Class B common stock 2,257 2,310 $ 30,113 $ 30,444 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 35,037 $ 34,219 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 4,924 3,775 Earnings allocated to Watsco, Inc. shareholders $ 30,113 $ 30,444 Weighted-average common shares outstanding – Basic 34,388,117 34,254,331 Effect of dilutive stock options 14,485 65,779 Weighted-average common shares outstanding – Diluted 34,402,602 34,320,110 Diluted earnings per share for Common and Class B common stock $ 0.88 $ 0.89 Anti-dilutive stock options not included above 322,584 9,228 Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At March 31, 2019 and 2018, our outstanding Class B common stock was convertible into 2,820,291 and 2,599,496 shares of our Common stock, respectively.

OTHER COMPREHENSIVE INCOME (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2019
OTHER COMPREHENSIVE INCOME (LOSS)	5. 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 their functional currency and changes in the unrealized (losses) gains on cash flow hedging instruments. The tax effects allocated to each component of other comprehensive income (loss) were as follows: Quarters Ended March 31, 2019 2018 Foreign currency translation adjustment $ 5,005 $ (6,645 ) Unrealized (loss) gain on cash flow hedging instruments (735 ) 207 Income tax benefit (expense) 199 (56 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (536 ) 151 Reclassification of (gain) loss on cash flow hedging instruments into earnings (375 ) 1,031 Income tax expense (benefit) 101 (278 ) Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax (274 ) 753 Other comprehensive income (loss) $ 4,195 $ (5,741 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Quarters Ended March 31, 2019 2018 Foreign currency translation adjustment: Beginning balance $ (46,604 ) $ (33,499 ) Current period other comprehensive income (loss) 3,269 (4,191 ) Ending balance (43,335 ) (37,690 ) Cash flow hedging instruments: Beginning balance 636 (421 ) Current period other comprehensive (loss) gain (322 ) 91 Reclassification adjustment (164 ) 451 Ending balance 150 121 Available-for-sale securities: Beginning balance — (301 ) Cumulative-effect adjustment to retained earnings — 301 Current period other comprehensive income — — Ending balance — — Accumulated other comprehensive loss, net of tax $ (43,185 ) $ (37,569 )

DEBT

DEBT	3 Months Ended
	Mar. 31, 2019
DEBT	6. DEBT We maintain an unsecured, $500,000 syndicated multicurrency revolving credit agreement, which we use 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 facility has a seasonal component from October 1 to March 31, during which the borrowing capacity may be reduced to $400,000 at our discretion (which would effectively reduce fees payable in respect of the unused portion of the commitment). Included in the credit facility are a $100,000 swingline subfacility, a $10,000 letter of credit subfacility, a $75,000 alternative currency borrowing sublimit and an $8,000 Mexican borrowing sublimit. The credit agreement matures on December 5, 2023. At March 31, 2019 and December 31, 2018, $137,500 and $135,200, 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 March 31, 2019. At March 31, 2019, $2,340 of short-term borrowings were outstanding under a credit line established by our Mexican subsidiary. This line of credit has a one-year term, maturing on June 12, 2019, is non-committed and provides for borrowings of up to approximately $3,900 (MXN 75,000

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2019
DERIVATIVES	7. DERIVATIVES We enter into foreign currency forward and option 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 March 31, 2019, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at March 31, 2019 was $44,100, and such contracts have varying terms expiring through December 2019. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarters Ended March 31, 2019 2018 (Loss) gain recorded in accumulated other comprehensive loss $ (735 ) $ 207 (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ (375 ) $ 1,031 At March 31, 2019, we expected an estimated $340 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 and option 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 March 31, 2019 was $9,060, We recognized losses of $113 and $371 from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended March 31, 2019 and 2018, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments $ 371 $ 1,262 $ 104 $ 3 Derivatives not designated as hedging instruments 46 58 4 11 Total derivative instruments $ 417 $ 1,320 $ 108 $ 14

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2019
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 at March 31, 2019 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 417 $ — $ 417 $ — Equity securities Other assets $ 281 $ 281 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 108 $ — $ 108 $ — Fair Value Measurements at December 31, 2018 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 1,320 $ — $ 1,320 $ — Equity securities Other assets $ 279 $ 279 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 14 $ — $ 14 $ — 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: Equity securities – these investments are exchange-traded equity securities. Fair values for these investments are based on closing stock prices from active markets and are therefore classified within Level 1 of the fair value hierarchy. Derivative financial instruments – these derivatives are foreign currency forward and option contracts. See Note 7. Fair value is based on observable market inputs, such as forward rates in active markets; therefore, we classify these derivatives within Level 2 of the valuation hierarchy. There were no transfers in or out of Level 1 and Level 2 during the quarter ended March 31, 2019.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2019
SHAREHOLDERS' EQUITY	9. SHAREHOLDERS’ EQUITY Common Stock Dividends We paid cash dividends of $1.60 and $1.25 per share of Common stock and Class B common stock during the quarters ended March 31, 2019 and 2018, respectively. Non-Vested Restricted Stock During the quarter ended March 31, 2019, 2,985 shares of Common and Class B common stock with an aggregate fair market value of $428 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 Cash received from Common stock issued as a result of stock options exercised during the quarters ended March 31, 2019 and 2018 was $717 and $2,612, respectively. During the quarter ended March 31, 2018, 5,041 shares of Common stock with an aggregate fair market value of $914 were withheld as payment in lieu of cash for stock option exercises. These shares were retired upon delivery. Employee Stock Purchase Plan During the quarters ended March 31, 2019 and 2018, we received net proceeds of $410 and $346, respectively, for shares of Common stock issued under our employee stock purchase plan.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,586 and $2,311 at March 31, 2019 and December 31, 2018, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
RELATED PARTY TRANSACTIONS	11. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 61% and 62% $101,000 and $71,000, respectively, was payable to Carrier and its affiliates, net of receivables. Our joint ventures with Carrier also sell HVAC products to Carrier and its affiliates. Revenues in our condensed consolidated unaudited statements of income for the quarters ended March 31, 2019 and 2018 included approximately $21,000 and $16,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length basis in the ordinary course of business. 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 quarters ended March 31, 2019 and 2018, we paid this firm $0 and $4, respectively, for services performed, and no amount was payable at both March 31, 2019 and December 31, 2018. A member of our Board of Directors is the Chairman and Chief Executive Officer of Moss & Associates LLC, which served as general contractor for the remodeling of our Miami headquarters that was completed in 2018. We paid Moss & Associates LLC $53 for construction services performed during the quarter ended March 31, 2018.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
SUBSEQUENT EVENTS	12. SUBSEQUENT EVENTS On April 2, 2019, one of our wholly owned subsidiaries acquired certain assets and assumed certain liabilities of Dunphey & Associates Supply Co., Inc., a distributor of air conditioning and heating products operating from seven locations in New Jersey, New York and Connecticut. The purchase price was composed of cash consideration of $16,781 and the issuance of 50,952 shares of Common stock having a fair value of $7,450. Effective April 22, 2019, our first joint venture with Carrier, Carrier Enterprise I acquired an additional 1.8% $4,940, of which we contributed $3,952 and Carrier contributed $988. This acquisition increased Carrier Enterprise I’s ownership interest in RSI to 38.1%.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 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 2018 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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 evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions.
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 loss contingencies and the valuation of goodwill, indefinite lived intangible assets and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted	Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“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. In July 2018, the FASB issued updated guidance that provides an additional transition method of adoption that allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of this standard and its related amendments (collectively, the “New Lease Standard”) on January 1, 2019, did not result in the recognition of a cumulative adjustment to opening retained earnings under the additional transition method, nor did it have a significant impact on our consolidated statements of income or cash flows. See Note 2. Recently Issued Accounting Standards Not Yet Adopted 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 goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if any. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Components Of Lease Expense	The components of operating lease expense were as follows: Quarter ended March 31, 2019 Lease cost $ 17,776 Short-term lease cost 2,173 Variable lease cost 843 Sublease income (49 ) Total operating lease cost $ 20,743
Summary Of Balance Sheet Information Related To Leases	Supplemental balance sheet information related to operating leases were as follows: March 31, 2019 ROU assets $ 183,326 Current portion of long-term obligations $ 57,373 Operating lease liabilities 124,485 Total operating lease liabilities $ 181,858 Weighted Average Remaining Lease Term (in years) 3.7 years Weighted Average Discount Rate 4.56 %
Summary Of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to operating leases were as follows: Quarter Ended March 31, 2019 Operating cash flows for the measurement of operating lease liabilities $ 17,393 Operating lease right-of-use assets obtained in exchange for operating lease obligations $ 198,976
Maturities Of Operating Lease Liabilities	At March 31 , 2019 , maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2019, excluding the quarter ended March 31, 2019 $ 49,782 2020 54,414 2021 41,900 2022 28,251 2023 15,745 Thereafter 8,503 Total lease payments 198,595 Less imputed interest 16,737 Total lease liability $ 181,858

REVENUES (Tables)

REVENUES (Tables)	3 Months Ended
	Mar. 31, 2019
Summary of Disaggregated Revenue	The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarters Ended March 31, 2019 2018 Primary Geographical Regions: United States $ 806,511 $ 809,502 Canada 59,256 52,360 Latin America and the Caribbean 65,511 64,715 $ 931,278 $ 926,577 Major Product Lines: HVAC equipment 67 % 66 % Other HVAC products 29 % 29 % Commercial refrigeration products 4 % 5 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
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: Quarters Ended March 31, 2019 2018 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 35,037 $ 34,219 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 4,924 3,775 Earnings allocated to Watsco, Inc. shareholders $ 30,113 $ 30,444 Weighted-average common shares outstanding – Basic 34,388,117 34,254,331 Basic earnings per share for Common and Class B common stock $ 0.88 $ 0.89 Allocation of earnings for Basic: Common stock $ 27,856 $ 28,134 Class B common stock 2,257 2,310 $ 30,113 $ 30,444 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 35,037 $ 34,219 Less: distributed and undistributed earnings allocated to non-vested restricted common stock 4,924 3,775 Earnings allocated to Watsco, Inc. shareholders $ 30,113 $ 30,444 Weighted-average common shares outstanding – Basic 34,388,117 34,254,331 Effect of dilutive stock options 14,485 65,779 Weighted-average common shares outstanding – Diluted 34,402,602 34,320,110 Diluted earnings per share for Common and Class B common stock $ 0.88 $ 0.89 Anti-dilutive stock options not included above 322,584 9,228

OTHER COMPREHENSIVE INCOME (L_2

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2019
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: Quarters Ended March 31, 2019 2018 Foreign currency translation adjustment $ 5,005 $ (6,645 ) Unrealized (loss) gain on cash flow hedging instruments (735 ) 207 Income tax benefit (expense) 199 (56 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (536 ) 151 Reclassification of (gain) loss on cash flow hedging instruments into earnings (375 ) 1,031 Income tax expense (benefit) 101 (278 ) Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax (274 ) 753 Other comprehensive income (loss) $ 4,195 $ (5,741 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Quarters Ended March 31, 2019 2018 Foreign currency translation adjustment: Beginning balance $ (46,604 ) $ (33,499 ) Current period other comprehensive income (loss) 3,269 (4,191 ) Ending balance (43,335 ) (37,690 ) Cash flow hedging instruments: Beginning balance 636 (421 ) Current period other comprehensive (loss) gain (322 ) 91 Reclassification adjustment (164 ) 451 Ending balance 150 121 Available-for-sale securities: Beginning balance — (301 ) Cumulative-effect adjustment to retained earnings — 301 Current period other comprehensive income — — Ending balance — — Accumulated other comprehensive loss, net of tax $ (43,185 ) $ (37,569 )

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2019
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: Quarters Ended March 31, 2019 2018 (Loss) gain recorded in accumulated other comprehensive loss $ (735 ) $ 207 (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ (375 ) $ 1,031
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 exchange 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments $ 371 $ 1,262 $ 104 $ 3 Derivatives not designated as hedging instruments 46 58 4 11 Total derivative instruments $ 417 $ 1,320 $ 108 $ 14

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Fair Value Measurements at March 31, 2019 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 417 $ — $ 417 $ — Equity securities Other assets $ 281 $ 281 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 108 $ — $ 108 $ — Fair Value Measurements at December 31, 2018 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 1,320 $ — $ 1,320 $ — Equity securities Other assets $ 279 $ 279 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 14 $ — $ 14 $ —

Components of Operating Lease E

Components of Operating Lease Expense (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Operating Lease Cost	$ 17,776
Short-term lease cost	2,173
Variable lease cost	843
Sublease income	(49)
Total lease cost	$ 20,743

Summary Of Balance Sheet Inform

Summary Of Balance Sheet Information Related To Operating Leases (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Operating Leases
ROU assets	$ 183,326
Current portion of long-term obligations	57,373
Operating lease liabilities	124,485
Total operating lease liabilities	$ 181,858
Weighted Average Remaining Lease Term
Operating leases	3 years 8 months 12 days
Weighted Average Discount Rate
Operating leases	4.56%

Summary Of Supplemental Cash Fl

Summary Of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 17,393
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 198,976

Maturities Of Operating Lease L

Maturities Of Operating Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Maturities of Operating Lease Liabilities
2019, excluding the quarter ended March 31, 2019	$ 49,782
2020	54,414
2021	41,900
2022	28,251
2023	15,745
Thereafter	8,503
Total lease payments	198,595
Less imputed interest	16,737
Total lease liability	$ 181,858

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Operating leases not yet commenced	$ 14,000
Lessee, Operating Lease, Renewal Term	5 years
Finance lease right of use assets	$ 2,783
Finance lease liabilities	2,882
Total rental commitments	198,595
2019	49,782
2020	54,414
2021	41,900
2022	28,251
2023	15,745
Thereafter	$ 8,503
Non Cancelable Leases [Member]
Total rental commitments		$ 219,300
2019		70,400
2020		55,100
2021		41,300
2022		28,500
2023		15,700
Thereafter		$ 8,300
Maximum [Member]
Operating leases not yet commenced term	11 years
Operating Lease Remaining Lease Term	9 years
Minimum [Member]
Operating leases not yet commenced term	5 years
Operating Lease Remaining Lease Term	1 year

Summary of Disaggregated Revenu

Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100.00%	100.00%
Revenues	$ 931,278	$ 926,577
United States
Disaggregation of Revenue [Line Items]
Revenues	806,511	809,502
Canada
Disaggregation of Revenue [Line Items]
Revenues	59,256	52,360
Latin America and Caribbean
Disaggregation of Revenue [Line Items]
Revenues	$ 65,511	$ 64,715
HVAC Equipment
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	67.00%	66.00%
Other HVAC Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	29.00%	29.00%
Commercial Refrigeration Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	4.00%	5.00%

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
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 35,037	$ 34,219
Less: distributed and undistributed earnings allocated to non-vested restricted common stock - Basic	4,924	3,775
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 30,113	$ 30,444
Weighted-average common shares outstanding - Basic	34,388,117	34,254,331
Basic earnings per share for Common and Class B common stock	$ 0.88	$ 0.89
Net income attributable to Watsco, Inc. shareholders	$ 35,037	$ 34,219
Less: distributed and undistributed earnings allocated to non-vested restricted common stock - Diluted	4,924	3,775
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 30,113	$ 30,444
Weighted-average common shares outstanding - Basic	34,388,117	34,254,331
Effect of dilutive stock options	14,485	65,779
Weighted-average common shares outstanding - Diluted	34,402,602	34,320,110
Diluted earnings per share for Common and Class B common stock	$ 0.88	$ 0.89
Anti-dilutive stock options not included above	322,584	9,228
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 27,856	$ 28,134
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 2,257	$ 2,310

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	2,820,291	2,599,496

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
	Mar. 31, 2019	Mar. 31, 2018
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 5,005	$ (6,645)
Unrealized (loss) gain on cash flow hedging instruments	(735)	207
Income tax benefit (expense)	199	(56)
Unrealized (loss) gain on cash flow hedging instruments, net of tax	(536)	151
Reclassification of (gain) loss on cash flow hedging instruments into earnings	(375)	1,031
Income tax expense (benefit)	101	(278)
Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax	(274)	753
Other comprehensive income (loss)	$ 4,195	$ (5,741)

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (45,968)
Ending balance	(43,185)	$ (37,569)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(46,604)	(33,499)
Current period other comprehensive gain (loss)	3,269	(4,191)
Ending balance	(43,335)	(37,690)
Cash Flow Hedging Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	636	(421)
Current period other comprehensive gain (loss)	(322)	91
Reclassification adjustment	(164)	451
Ending balance	$ 150	$ 121

Debt - Additional Information (

Debt - Additional Information (Detail) $ in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2019MXN ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit agreement	$ 137,500		$ 135,200
Short-term Debt	2,340
MEXICO
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	3,900	$ 75,000
Short-term Debt	2,340
Swingline Subfacility
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	100,000
Letter of Credit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	10,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	500,000
Seasonal discretionary maximum borrowing capacity under revolving credit agreement	400,000
Alternative Currency Sublimit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	75,000
Mexican Borrowing Sublimit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	$ 8,000

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 44,100,000
Contract maturity period	one year or less
Contract expiring terms	2019-12
Maximum length of time hedged in cash flow hedge	12 months
Pre-tax gain to be reclassified into earnings within the next 12 months	$ 340,000
Foreign Exchange Forward And Option Contracts [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 9,060,000
Contract expiring terms	2019-07
(Loss) gain from foreign currency forward and option contracts not designated as hedging instruments	$ 113,000	$ 371,000

Impact from Foreign Exchange De

Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	$ (735)	$ 207
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	(735)	207
(Gain) loss reclassified from accumulated other comprehensive loss into earnings	$ (375)	$ 1,031

Fair Value of Derivative Instru

Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Exchange Forward And Option Contracts [Member] - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 417	$ 1,320
Derivative instruments, liabilities derivatives	108	14
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	371	1,262
Derivative instruments, liabilities derivatives	104	3
Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	46	58
Derivative instruments, liabilities derivatives	$ 4	$ 11

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Current Assets
Assets:
Derivative financial instruments	$ 417	$ 1,320
Other assets
Assets:
Equity securities	281	279
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	108	14
Fair Value Measurements, Level 1 | Other assets
Assets:
Equity securities	281	279
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	417	1,320
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 108	$ 14

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 428
Common and Class B Common Stock | Non-Vested Restricted Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 428
Shares withheld as payment for tax withholdings related to share based compensation, shares	2,985
Common Stock | Stock Option
Stockholders Equity Note [Line Items]
Net proceeds from the sale of Common stock	$ 717	$ 2,612
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 914
Shares withheld as payment for tax withholdings related to share based compensation, shares		5,041
Common Stock | Employee Stock Purchase Plan [Member]
Stockholders Equity Note [Line Items]
Net proceeds from the sale of Common stock	$ 410	$ 346
Common Stock | Class B Common Stock
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock	$ 1.60	$ 1.25

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 2,586	$ 2,311

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Moss & Associates LLC | Customary Payments for Remodeling of Corporate Headquarters
Related Party Transaction [Line Items]
Payment for related party transaction		$ 53
Greenberg Traurig, P.A. | Customary Fees for Legal Services
Related Party Transaction [Line Items]
Payment for related party transaction	$ 0	4
Amount payable to related party	0		$ 0
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	101,000		$ 71,000
Revenues from sales to Carrier and its affiliates	$ 21,000	$ 16,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	61.00%	62.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) $ in Thousands	Apr. 02, 2019	Apr. 22, 2019
Subsequent Event [Line Items]
Equity Method Investment Additional Ownership Percentage		1.80%
Payments to Acquire Equity Method Investments		$ 4,940
Payments to Acquire Interest in Subsidiaries and Affiliates		3,952
Proceeds from Noncontrolling Interests		$ 988
Dunphey & Associates Supply Co [Member]
Subsequent Event [Line Items]
Payments to Acquire Businesses, Gross	$ 16,781
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	50,952
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned	$ 7,450
Russell Sigler Inc [Member]
Subsequent Event [Line Items]
Equity Method Investment, Ownership Percentage		38.10%