Watsco (WSO) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Registrant Name	WATSCO, INC.
Entity Central Index Key	0000105016
Entity File Number	1-5581
Entity Incorporation, State or Country Code	FL
Document Quarterly Report	true
Document Transition Report	false
Entity Tax Identification Number	59-0778222
Entity Address, Address Line One	2665 South Bayshore Drive
Entity Address, City or Town	Miami
Entity Address, Postal Zip Code	33133
Entity Address, Address Line Two	Suite 901
Entity Address, State or Province	FL
City Area Code	305
Local Phone Number	714-4100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	WSO
Security Exchange Name	NYSE
Title of 12(b) Security	Common stock, $0.50 par value
Entity Common Stock, Shares Outstanding		33,025,976
Common Class B [Member]
Document Information [Line Items]
Trading Symbol	WSOB
Security Exchange Name	NYSE
Title of 12(b) Security	Class B common stock, $0.50 par value
Entity Common Stock, Shares Outstanding		5,746,980

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues	$ 1,782,569	$ 1,536,671	$ 4,768,327	$ 3,900,212
Cost of sales	1,299,905	1,162,908	3,512,901	2,959,635
Gross profit	482,664	373,763	1,255,426	940,577
Selling, general and administrative expenses	281,922	221,037	766,231	618,476
Other income	6,057	4,055	16,267	9,172
Operating income	206,799	156,781	505,462	331,273
Interest expense, net	221	108	757	1,181
Income before income taxes	206,578	156,673	504,705	330,092
Income taxes	41,734	30,467	101,601	63,397
Net income	164,844	126,206	403,104	266,695
Less: net income attributable to non-controlling interest	23,979	19,717	63,045	43,126
Net income attributable to Watsco, Inc.	$ 140,865	$ 106,489	$ 340,059	$ 223,569
Earnings per share for Common and Class B common stock:
Basic	$ 3.64	$ 2.77	$ 8.80	$ 5.83
Diluted	$ 3.62	$ 2.76	$ 8.75	$ 5.82

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net income	$ 164,844	$ 126,206	$ 403,104	$ 266,695
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustment	(8,219)	5,514	(746)	(6,592)
Unrealized (loss) gain on cash flow hedging instruments	0	(416)	70	948
Reclassification of (gain) loss on cash flow hedging instruments into earnings	0	(509)	221	(691)
Other comprehensive (loss) income	(8,219)	4,589	(455)	(6,335)
Comprehensive income	156,625	130,795	402,649	260,360
Less: comprehensive income attributable to non-controlling interest	21,114	21,283	62,821	40,986
Comprehensive income attributable to Watsco, Inc.	$ 135,511	$ 109,512	$ 339,828	$ 219,374

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 137,201	$ 146,067
Accounts receivable, net	771,042	535,288
Inventories, net	1,042,144	781,299
Other current assets	30,474	21,791
Total current assets	1,980,861	1,484,445
Property and equipment, net	105,842	98,225
Operating lease right-of-use assets	262,965	209,169
Goodwill	432,514	412,486
Intangible assets, net	187,662	169,929
Investment in unconsolidated entity	111,776	97,847
Other assets	9,301	12,246
Total assets	3,090,921	2,484,347
Current liabilities:
Current portion of long-term obligations	82,712	71,804
Accounts payable	454,498	251,553
Accrued expenses and other current liabilities	259,483	163,788
Total current liabilities	796,693	487,145
Long-term obligations:
Borrowings under revolving credit agreement	1,724	0
Operating lease liabilities, net of current portion	182,772	139,527
Finance lease liabilities, net of current portion	6,676	4,811
Total long-term obligations	191,172	144,338
Deferred income taxes and other liabilities	81,531	73,103
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value	0	0
Paid-in capital	988,310	950,915
Accumulated other comprehensive loss, net of tax	(35,098)	(34,867)
Retained earnings	756,992	636,373
Treasury stock, at cost	(87,440)	(87,440)
Total Watsco, Inc. shareholders' equity	1,644,581	1,486,678
Non-controlling interest	376,944	293,083
Total shareholders' equity	2,021,525	1,779,761
Total liabilities and shareholders' equity	3,090,921	2,484,347
Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,913	18,851
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,904	$ 2,846

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
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	ACME Refrigeration LLC [Member]	TEC Distribution LLC [Member]	Makdad Industrial Supply Co., Inc.[Member]	Common Stock, Class B Common Stock and Preferred Stock	Common Stock, Class B Common Stock and Preferred StockACME Refrigeration LLC [Member]	Common Stock, Class B Common Stock and Preferred StockMakdad Industrial Supply Co., Inc.[Member]	Paid-In Capital	Paid-In CapitalACME Refrigeration LLC [Member]	Paid-In CapitalMakdad Industrial Supply Co., Inc.[Member]	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest	Non-controlling InterestTEC Distribution LLC [Member]
Beginning balance at Dec. 31, 2019	$ 1,714,767				$ 21,533			$ 907,877			$ (39,050)	$ 632,507	$ (87,440)	$ 279,340
Beginning balance (in shares) at Dec. 31, 2019					38,194,056
Net income	36,247											30,502		5,745
Other comprehensive (loss) income	(19,280)										(12,739)			(6,541)
Issuances of non-vested restricted shares of common stock					$ 57			(57)
Issuances of non-vested restricted shares of common stock (in shares)					113,765
Common stock contribution to 401(k) plan	4,543				$ 13			4,530
Common stock contribution to 401(k) plan (in shares)					25,216
Stock issuances from exercise of stock options and employee stock purchase plan	2,541				$ 9			2,532
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					18,674
Retirement of common stock	(791)				$ (2)			(789)
Retirement of common stock (in shares)					(4,828)
Share-based compensation	6,097							6,097
Cash dividends declared and paid on Common and Class B common stock	(61,238)											(61,238)
Ending balance at Mar. 31, 2020	1,682,886				$ 21,610			920,190			(51,789)	601,771	(87,440)	278,544
Ending balance (in shares) at Mar. 31, 2020					38,346,883
Beginning balance at Dec. 31, 2019	1,714,767				$ 21,533			907,877			(39,050)	632,507	(87,440)	279,340
Beginning balance (in shares) at Dec. 31, 2019					38,194,056
Net income	266,695
Other comprehensive (loss) income	(6,335)
Ending balance at Sep. 30, 2020	1,809,938				$ 21,660			940,015			(43,245)	658,622	(87,440)	320,326
Ending balance (in shares) at Sep. 30, 2020					38,448,020
Beginning balance at Mar. 31, 2020	1,682,886				$ 21,610			920,190			(51,789)	601,771	(87,440)	278,544
Beginning balance (in shares) at Mar. 31, 2020					38,346,883
Net income	104,242											86,578		17,664
Other comprehensive (loss) income	8,356										5,521			2,835
Issuances of non-vested restricted shares of common stock					$ 8			(8)
Issuances of non-vested restricted shares of common stock (in shares)					15,500
Stock issuances from exercise of stock options and employee stock purchase plan	4,545				$ 16			4,529
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					32,073
Retirement of common stock	(1,096)				$ (4)			(1,092)
Retirement of common stock (in shares)					(6,377)
Share-based compensation	5,226							5,226
Cash dividends declared and paid on Common and Class B common stock	(68,077)											(68,077)
Ending balance at Jun. 30, 2020	1,736,082				$ 21,630			928,845			(46,268)	620,272	(87,440)	299,043
Ending balance (in shares) at Jun. 30, 2020					38,388,079
Net income	126,206											106,489		19,717
Other comprehensive (loss) income	4,589										3,023			1,566
Issuances of non-vested restricted shares of common stock					$ 10			(10)
Issuances of non-vested restricted shares of common stock (in shares)					20,000
Forfeitures of non-vested restricted shares of common stock					$ (2)			2
Forfeitures of non-vested restricted shares of common stock (in shares)					(3,589)
Stock issuances from exercise of stock options and employee stock purchase plan	8,466				$ 28			8,438
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					55,473
Retirement of common stock	(2,755)				$ (6)			(2,749)
Retirement of common stock (in shares)					(11,943)
Share-based compensation	5,489							5,489
Cash dividends declared and paid on Common and Class B common stock	(68,139)											(68,139)
Ending balance at Sep. 30, 2020	1,809,938				$ 21,660			940,015			(43,245)	658,622	(87,440)	320,326
Ending balance (in shares) at Sep. 30, 2020					38,448,020
Beginning balance at Dec. 31, 2020	1,779,761				$ 21,697			950,915			(34,867)	636,373	(87,440)	293,083
Beginning balance (in shares) at Dec. 31, 2020					38,521,694
Net income	66,127											55,092		11,035
Other comprehensive (loss) income	3,776										2,474			1,302
Issuances of non-vested restricted shares of common stock					$ 61			(61)
Issuances of non-vested restricted shares of common stock (in shares)					121,934
Forfeitures of non-vested restricted shares of common stock					$ (21)			21
Forfeitures of non-vested restricted shares of common stock (in shares)					(43,000)
Common stock contribution to 401(k) plan	5,154				$ 11			5,143
Common stock contribution to 401(k) plan (in shares)					22,752
Stock issuances from exercise of stock options and employee stock purchase plan	3,874				$ 12			3,862
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					24,735
Share-based compensation	6,656							6,656
Cash dividends declared and paid on Common and Class B common stock	(68,521)											(68,521)
Ending balance at Mar. 31, 2021	1,796,827				$ 21,760			966,536			(32,393)	622,944	(87,440)	305,420
Ending balance (in shares) at Mar. 31, 2021					38,648,115
Beginning balance at Dec. 31, 2020	1,779,761				$ 21,697			950,915			(34,867)	636,373	(87,440)	293,083
Beginning balance (in shares) at Dec. 31, 2020					38,521,694
Net income	403,104
Other comprehensive (loss) income	(455)
Ending balance at Sep. 30, 2021	2,021,525				$ 21,817			988,310			(35,098)	756,992	(87,440)	376,944
Ending balance (in shares) at Sep. 30, 2021					38,761,863
Beginning balance at Mar. 31, 2021	1,796,827				$ 21,760			966,536			(32,393)	622,944	(87,440)	305,420
Beginning balance (in shares) at Mar. 31, 2021					38,648,115
Net income	172,133											144,102		28,031
Other comprehensive (loss) income	3,988										2,649			1,339
Issuances of non-vested restricted shares of common stock					$ 22			(22)
Issuances of non-vested restricted shares of common stock (in shares)					44,881
Forfeitures of non-vested restricted shares of common stock					$ (4)			4
Forfeitures of non-vested restricted shares of common stock (in shares)					(7,589)
Stock issuances from exercise of stock options and employee stock purchase plan	5,676				$ 18			5,658
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					34,311
Retirement of common stock	(863)				$ (1)			(862)
Retirement of common stock (in shares)					(2,965)
Investment in TEC Distribution LLC			$ 21,040												$ 21,040
Share-based compensation	5,569							5,569
Cash dividends declared and paid on Common and Class B common stock	(75,388)											(75,388)
Common stock issued		$ 2,551				$ 4			$ 2,547
Common stock issued (in shares)						8,492
Ending balance at Jun. 30, 2021	1,931,533				$ 21,799			979,430			(29,744)	691,658	(87,440)	355,830
Ending balance (in shares) at Jun. 30, 2021					38,725,245
Net income	164,844											140,865		23,979
Other comprehensive (loss) income	(8,219)										(5,354)			(2,865)
Issuances of non-vested restricted shares of common stock					$ 11			(11)
Issuances of non-vested restricted shares of common stock (in shares)					21,828
Stock issuances from exercise of stock options and employee stock purchase plan	2,487				$ 7			2,480
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)					14,413
Retirement of common stock	(894)				$ (2)			(892)
Retirement of common stock (in shares)					(3,250)
Share-based compensation	6,308							6,308
Cash dividends declared and paid on Common and Class B common stock	(75,531)											(75,531)
Common stock issued				$ 997			$ 2			$ 995
Common stock issued (in shares)							3,627
Ending balance at Sep. 30, 2021	$ 2,021,525				$ 21,817			$ 988,310			$ (35,098)	$ 756,992	$ (87,440)	$ 376,944
Ending balance (in shares) at Sep. 30, 2021					38,761,863

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Cash dividends declared and paid, common stock	$ 1.95	$ 1.95	$ 1.775	$ 1.775	$ 1.775	$ 1.60

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 403,104	$ 266,695
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,874	19,350
Share-based compensation	18,659	15,802
Non-cash contribution to 401(k) plan	5,154	4,543
Deferred income tax Provision	3,966	3,177
Other income from investment in unconsolidated entity	(16,267)	(9,172)
Other, net	1,969	1,776
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(198,011)	(113,017)
Inventories, net	(170,662)	34,448
Accounts payable and other liabilities	263,752	158,094
Other, net	(12,866)	(8,918)
Net cash provided by operating activities	319,672	372,778
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(129,462)	0
Capital expenditures	(16,770)	(11,608)
Proceeds from sale of property and equipment	108	61
Proceeds from sale of equity securities	5,993	0
Net cash used in investing activities	(140,131)	(11,547)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(219,440)	(197,454)
Net repayments of finance lease liabilities	(1,482)	(1,003)
Repurchases of common stock to satisfy employee withholding tax obligations	(894)	(2,299)
Payment of fees related to revolving credit agreement	(22)	(189)
Net proceeds (repayments) under revolving credit agreement	1,724	(155,032)
Net proceeds from issuances of common stock	11,173	13,207
Proceeds from non-controlling interest for investment in TEC Distribution LLC	21,040
Net cash used in financing activities	(187,901)	(342,770)
Effect of foreign exchange rate changes on cash and cash equivalents	(506)	(315)
Net (decrease) increase in cash and cash equivalents	(8,866)	18,146
Cash and cash equivalents at beginning of period	146,067	74,454
Cash and cash equivalents at end of period	137,201	$ 92,600
ACME Refrigeration LLC [Member]
Supplemental cash flow information:
Common stock issued	2,551
Makdad Industrial Supply Co Inc [Member]
Supplemental cash flow information:
Common stock issued	$ 997

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2021
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, 2021 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 2020 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest and Carrier has a 20% non-controlling The results of operations for the quarter and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, profitability can be impacted favorably or unfavorably based on weather patterns, particularly 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 first and fourth quarters. Demand related to the new construction sectors throughout most of the markets we serve tends to be fairly evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions. 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 investment in unconsolidated entity in our condensed consolidated unaudited 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 condensed consolidated unaudited statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill. 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, net realizable value adjustments to inventories, 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. Impact of COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2021
REVENUES	2. REVENUES Disaggregation of Revenues The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2021 2020 2021 2020 Primary Geographical Regions: United States $ 1,615,319 $ 1,391,340 $ 4,291,838 $ 3,517,533 Canada 102,491 91,429 290,863 218,687 Latin America and the Caribbean 64,759 53,902 185,626 163,992 $ 1,782,569 $ 1,536,671 $ 4,768,327 $ 3,900,212 Major Product Lines: HVAC equipment 69 % 70 % 69 % 70 % Other HVAC products 27 % 27 % 27 % 27 % Commercial refrigeration products 4 % 3 % 4 % 3 % 100 % 100 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2021
EARNINGS PER SHARE	3. 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 2021 2020 2021 2020 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 140,865 $ 106,489 $ 340,059 $ 223,569 Less: distributed and undistributed earnings allocated to non-vested 12,590 9,146 30,182 19,178 Earnings allocated to Watsco, Inc. shareholders $ 128,275 $ 97,343 $ 309,877 $ 204,391 Weighted-average common shares outstanding - 35,260,126 35,099,871 35,222,865 35,046,156 Basic earnings per share for Common and Class B common stock $ 3.64 $ 2.77 $ 8.80 $ 5.83 Allocation of earnings for Basic: Common stock $ 118,905 $ 90,197 $ 287,217 $ 189,364 Class B common stock 9,370 7,146 22,660 15,027 $ 128,275 $ 97,343 $ 309,877 $ 204,391 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 140,865 $ 106,489 $ 340,059 $ 223,569 Less: distributed and undistributed earnings allocated to non-vested 12,563 9,135 30,132 19,175 Earnings allocated to Watsco, Inc. shareholders $ 128,302 $ 97,354 $ 309,927 $ 204,394 Weighted-average common shares outstanding - 35,260,126 35,099,871 35,222,865 35,046,156 Effect of dilutive stock options 181,852 137,151 177,389 62,887 Weighted-average common shares outstanding - 35,441,978 35,237,022 35,400,254 35,109,043 Diluted earnings per share for Common and Class B common stock $ 3.62 $ 2.76 $ 8.75 $ 5.82 Anti-dilutive stock options not included above 63,959 3,750 27,513 27,755 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, 2021 and 2020, our outstanding Class B common stock was convertible into 2,575,698 and 2,576,570 shares of our Common stock, respectively.

OTHER COMPREHENSIVE (LOSS) INCO

OTHER COMPREHENSIVE (LOSS) INCOME	9 Months Ended
	Sep. 30, 2021
OTHER COMPREHENSIVE (LOSS) INCOME	4. OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as 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 (loss) income were as follows: Quarter Ended Nine Months Ended 2021 2020 2021 2020 Foreign currency translation adjustment $ (8,219 ) $ 5,514 $ (746 ) $ (6,592 ) Unrealized (loss) gain on cash flow hedging instruments — (570 ) 97 1,297 Income tax benefit (expense) — 154 (27 ) (349 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax — (416 ) 70 948 Reclassification of (gain) loss on cash flow hedging instruments into earnings — (697 ) 305 (946 ) Income tax expense (benefit) — 188 (84 ) 255 Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax — (509 ) 221 (691 ) Other comprehensive (loss) income $ (8,219 ) $ 4,589 $ (455 ) $ (6,335 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2021 2020 Foreign currency translation adjustment: Beginning balance $ (34,694 ) $ (38,599 ) Current period other comprehensive loss (406 ) (4,349 ) Ending balance (35,100 ) (42,948 ) Cash flow hedging instruments: Beginning balance (173 ) (451 ) Current period other comprehensive income 43 568 Reclassification adjustment 132 (414 ) Ending balance 2 (297 ) Accumulated other comprehensive loss, net of tax $ (35,098 ) $ (43,245 )

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2021
ACQUISITIONS	5. ACQUISITIONS Makdad Industrial Supply Co., Inc. On August 20, 2021, one of our wholly owned subsidiaries acquired Makdad Industrial Supply Co., Inc., a distributor of air conditioning and heating products operating from six locations in Pennsylvania. Consideration for the purchase price consisted of $3,117 in cash and the issuance of 3,627 shares of Common stock having a fair value of $997, net of cash acquired of $204. The purchase price resulted in the recognition of $981 in goodwill. The tax basis of such goodwill is deductible for income tax purposes over 15 years. Acme Refrigeration of Baton Rouge LLC On May 7, 2021, we acquired certain assets and assumed certain liabilities of Acme Refrigeration of Baton Rouge LLC, a distributor of air conditioning, heating, and refrigeration products, operating from 18 locations in Louisiana and Mississippi, for $22,855 less certain average revolving indebtedness. Consideration for the net purchase price consisted of $18,051 in cash, 8,492 shares of Common stock having a fair value of $2,551, and $3,141 for repayment of indebtedness, net of cash acquired of $1,340. The purchase price resulted in the recognition of $3,710 in goodwill and intangibles. The fair value of the identified intangible assets was $2,124 and consisted of $1,508 in trade names and distribution rights, and $616 in customer relationships to be amortized over an 18-year Temperature Equipment Corporation On April 9, 2021, we acquired certain assets and assumed certain liabilities comprising the HVAC distribution business of Temperature Equipment Corporation, an HVAC distributor operating from 32 locations in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri and Wisconsin. We formed a new, stand-alone joint venture with Carrier, TEC Distribution LLC (“TEC”), that operates this business. We have an 80% controlling interest in TEC, and Carrier has a 20% non-controlling interest. Consideration for the purchase was paid in cash, consisting of $105,200 paid to Temperature Equipment Corporation (Carrier contributed $21,040 and we contributed $84,160) and $1,497 for repayment of indebtedness . The preliminary purchase price resulted in the recognition of $37,352 in goodwill and intangibles. The fair value of the identified intangible assets was $19,900 and consisted of $15,700 in trade names and distribution rights, and $4,200 in customer relationships to be amortized over an 18 -year period. The tax basis of such goodwill is deductible for income tax purposes over 15 years. The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of our 80% controlling interest in TEC based on their respective preliminary fair values as of April 9, 2021: Accounts receivable $ 33,315 Inventories 71,325 Other current assets 962 Property and equipment 2,590 Operating lease right-of-use assets 53,829 Goodwill 17,452 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (19,237 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697 The results of operations of these acquisitions have been included in the consolidated financial statements from their respective dates of acquisition. The pro forma effect of these acquisitions were not deemed significant to the consolidated financial statements.

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2021
DERIVATIVES	6. DERIVATIVES We enter into foreign currency forward and option contracts intended 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. At September 30, 2021, no foreign currency forward contracts were designated as cash flow hedges. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Loss) gain recorded in accumulated other comprehensive loss $ — $ (570 ) $ 97 $ 1,297 (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ — $ (697 ) $ 305 $ (946 ) At September 30, 2021, no pre-tax gain (loss) is expected to be reclassified into earnings related to 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 September 30, 2021 was $4,200, and such contracts subsequently expired during October 2021. We recognized gains (losses) of $83 and $(454) from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended September 30, 2021 and 2020, respectively. We recognized (losses) gains of $(101) and $57 from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the nine months ended September 30, 2021 and 2020, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 7. Asset Derivatives Liability Derivatives September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments $ — $ — $ — $ 91 Derivatives not designated as hedging instruments — — 5 10 Total derivative instruments $ — $ — $ 5 $ 101

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2021
FAIR VALUE MEASUREMENTS	7. 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 September 30, 2021 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,750 $ 1,750 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 $ — $ 5 $ — Fair Value Measurements at December 31, 2020 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 6,065 $ 6,065 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 101 $ — $ 101 $ — 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 eq u ity 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 6. 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. During the nine months ended September 30, 2021, we recognized a realized gain of $3,815 recorded in our condensed consolidated unaudited statement of income attributable to the sale of certain equity securities.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2021
SHAREHOLDERS' EQUITY	8. SHAREHOLDERS’ EQUITY At-the-Market On August 6, 2021, we entered into a sales agreement with Robert W. Baird & Co. Inc., which enables the Company to issue and sell shares of Common stock 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, as amended (the “Securities Act”), for a maximum aggregate offering amount of up to (the “ATM Program”). The offer and sale of our Common stock pursuant to the ATM Program has been registered under the Securities Act pursuant to our automatically effective shelf registration statement on Form S-3 (File No. 333-228269). As of September 30, 2021, no shares of Common stock ha d Common Stock Dividends We paid cash dividends of $1.95, $1.775, $5.675, and $5.15 per share of both Common stock and Class B common stock during the quarters and nine months ended September 30, 2021 and 2020, respectively. Non-Vested During both the quarter and nine months ended September 30, 2021, 3,250 shares of Class B common stock with an aggregate fair market value of $894 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested non-vested Exercise of Stock Options Cash received from Common stock issued as a result of stock options exercised during the quarters and nine months ended September 30, 2021 and 2020, was $2,094, $6,573, $9,940, and $11,978, respectively. During the nine months ended September 30, 2021, 2,965 shares of Common stock with an aggregate fair market value of $863 were withheld as payment in lieu of cash for stock option exercises. These shares were retired upon delivery. During the quarter and nine months ended September 30, 2020, 6,582 shares of Common stock with an aggregate fair market value of $1,490, and 11,455 shares of Common stock with an aggregate fair market value of $2,343, respectively, 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 September 30, 2021 and 2020, we received net proceeds of $392 and $401, respectively, for shares of our Common stock purchased under our employee stock purchase plan. During the nine months ended September 30, 2021 and 2020, we received net proceeds of $1,233 and $1,229, respectively, for shares of our Common stock purchased under our employee stock purchase plan.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES	9. 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 $8,039 and $5,404 at September 30, 2021 and December 31, 2020, 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, 2021
RELATED PARTY TRANSACTIONS	10. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 59% and 65% of all inventory purchases made during the quarters ended September 30, 2021 and 2020, respectively. Purchases from Carrier and its affiliates comprised 64% and 62% of all inventory purchases made during the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020, approximately $142,000 and $81,000, respectively, was payable to Carrier and its affiliates, net of receivables. We 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, 2021 and 2020 included approximately $30,000, $27,000, $86,000, and $82,000, 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 Senior Chairman of Greenberg Traurig, P.A., which serves as our principal outside counsel for compliance and acquisition-related legal services. During the quarters and nine months ended September 30, 2021 and 2020, fees to this firm for services performed were $83, $28, $181, and $28, respectively. At September 30, 2021 and December 31, 2020, $56 and $8, respectively, was payable to this firm.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2021
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, 2021 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 2020 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest and Carrier has a 20% non-controlling The results of operations for the quarter and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, profitability can be impacted favorably or unfavorably based on weather patterns, particularly 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 first and fourth quarters. Demand related to the new construction sectors throughout most of the markets we serve tends to be fairly evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions.
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 investment in unconsolidated entity in our condensed consolidated unaudited 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 condensed consolidated unaudited statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill.
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, net realizable value adjustments to inventories, 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.
Impact of COVID-19 Pandemic	Impact of COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 30, 2021
Summary of Disaggregated Revenue	The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2021 2020 2021 2020 Primary Geographical Regions: United States $ 1,615,319 $ 1,391,340 $ 4,291,838 $ 3,517,533 Canada 102,491 91,429 290,863 218,687 Latin America and the Caribbean 64,759 53,902 185,626 163,992 $ 1,782,569 $ 1,536,671 $ 4,768,327 $ 3,900,212 Major Product Lines: HVAC equipment 69 % 70 % 69 % 70 % Other HVAC products 27 % 27 % 27 % 27 % Commercial refrigeration products 4 % 3 % 4 % 3 % 100 % 100 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2021
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 2021 2020 2021 2020 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 140,865 $ 106,489 $ 340,059 $ 223,569 Less: distributed and undistributed earnings allocated to non-vested 12,590 9,146 30,182 19,178 Earnings allocated to Watsco, Inc. shareholders $ 128,275 $ 97,343 $ 309,877 $ 204,391 Weighted-average common shares outstanding - 35,260,126 35,099,871 35,222,865 35,046,156 Basic earnings per share for Common and Class B common stock $ 3.64 $ 2.77 $ 8.80 $ 5.83 Allocation of earnings for Basic: Common stock $ 118,905 $ 90,197 $ 287,217 $ 189,364 Class B common stock 9,370 7,146 22,660 15,027 $ 128,275 $ 97,343 $ 309,877 $ 204,391 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 140,865 $ 106,489 $ 340,059 $ 223,569 Less: distributed and undistributed earnings allocated to non-vested 12,563 9,135 30,132 19,175 Earnings allocated to Watsco, Inc. shareholders $ 128,302 $ 97,354 $ 309,927 $ 204,394 Weighted-average common shares outstanding - 35,260,126 35,099,871 35,222,865 35,046,156 Effect of dilutive stock options 181,852 137,151 177,389 62,887 Weighted-average common shares outstanding - 35,441,978 35,237,022 35,400,254 35,109,043 Diluted earnings per share for Common and Class B common stock $ 3.62 $ 2.76 $ 8.75 $ 5.82 Anti-dilutive stock options not included above 63,959 3,750 27,513 27,755

OTHER COMPREHENSIVE (LOSS) IN_2

OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	9 Months Ended
	Sep. 30, 2021
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)	The tax effects allocated to each component of other comprehensive (loss) income were as follows: Quarter Ended Nine Months Ended 2021 2020 2021 2020 Foreign currency translation adjustment $ (8,219 ) $ 5,514 $ (746 ) $ (6,592 ) Unrealized (loss) gain on cash flow hedging instruments — (570 ) 97 1,297 Income tax benefit (expense) — 154 (27 ) (349 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax — (416 ) 70 948 Reclassification of (gain) loss on cash flow hedging instruments into earnings — (697 ) 305 (946 ) Income tax expense (benefit) — 188 (84 ) 255 Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax — (509 ) 221 (691 ) Other comprehensive (loss) income $ (8,219 ) $ 4,589 $ (455 ) $ (6,335 )
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, 2021 2020 Foreign currency translation adjustment: Beginning balance $ (34,694 ) $ (38,599 ) Current period other comprehensive loss (406 ) (4,349 ) Ending balance (35,100 ) (42,948 ) Cash flow hedging instruments: Beginning balance (173 ) (451 ) Current period other comprehensive income 43 568 Reclassification adjustment 132 (414 ) Ending balance 2 (297 ) Accumulated other comprehensive loss, net of tax $ (35,098 ) $ (43,245 )

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Summary of tangible and intangible assets acquired and liabilities assumed	The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of our 80% controlling interest in TEC based on their respective preliminary fair values as of April 9, 2021: Accounts receivable $ 33,315 Inventories 71,325 Other current assets 962 Property and equipment 2,590 Operating lease right-of-use assets 53,829 Goodwill 17,452 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (19,237 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Loss) gain recorded in accumulated other comprehensive loss $ — $ (570 ) $ 97 $ 1,297 (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ — $ (697 ) $ 305 $ (946 )
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 accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 7. Asset Derivatives Liability Derivatives September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Derivatives designated as hedging instruments $ — $ — $ — $ 91 Derivatives not designated as hedging instruments — — 5 10 Total derivative instruments $ — $ — $ 5 $ 101

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,750 $ 1,750 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 $ — $ 5 $ — Fair Value Measurements at December 31, 2020 Using Balance Sheet Location Total Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 6,065 $ 6,065 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 101 $ — $ 101 $ —

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	Sep. 30, 2021Entity
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Joint Ventures	4

Revenues - Summary of Disaggreg

Revenues - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100.00%	100.00%	100.00%	100.00%
Revenues	$ 1,782,569	$ 1,536,671	$ 4,768,327	$ 3,900,212
United States
Disaggregation of Revenue [Line Items]
Revenues	1,615,319	1,391,340	4,291,838	3,517,533
Canada
Disaggregation of Revenue [Line Items]
Revenues	102,491	91,429	290,863	218,687
Latin America and the Caribbean
Disaggregation of Revenue [Line Items]
Revenues	$ 64,759	$ 53,902	$ 185,626	$ 163,992
HVAC Equipment
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	69.00%	70.00%	69.00%	70.00%
Other HVAC Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	27.00%	27.00%	27.00%	27.00%
Commercial Refrigeration Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	4.00%	3.00%	4.00%	3.00%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 140,865	$ 106,489	$ 340,059	$ 223,569
Basic earnings per share for Common and Class B common stock	$ 3.64	$ 2.77	$ 8.80	$ 5.83
Net income attributable to Watsco, Inc. shareholders	$ 140,865	$ 106,489	$ 340,059	$ 223,569
Diluted earnings per share for Common and Class B common stock	$ 3.62	$ 2.76	$ 8.75	$ 5.82
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders – Basic	$ 9,370	$ 7,146	$ 22,660	$ 15,027
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders – Basic	118,905	90,197	287,217	189,364
Common Stock | Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	140,865	106,489	340,059	223,569
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	12,590	9,146	30,182	19,178
Earnings allocated to Watsco, Inc. shareholders – Basic	$ 128,275	$ 97,343	$ 309,877	$ 204,391
Weighted-average common shares outstanding - Basic	35,260,126	35,099,871	35,222,865	35,046,156
Basic earnings per share for Common and Class B common stock	$ 3.64	$ 2.77	$ 8.80	$ 5.83
Net income attributable to Watsco, Inc. shareholders	$ 140,865	$ 106,489	$ 340,059	$ 223,569
Less: distributed and undistributed earnings allocated to non-vested restricted common stock – Diluted	12,563	9,135	30,132	19,175
Earnings allocated to Watsco, Inc. shareholders – Diluted	$ 128,302	$ 97,354	$ 309,927	$ 204,394
Weighted-average common shares outstanding - Basic	35,260,126	35,099,871	35,222,865	35,046,156
Effect of dilutive stock options	181,852	137,151	177,389	62,887
Weighted-average common shares outstanding - Diluted	35,441,978	35,237,022	35,400,254	35,109,043
Diluted earnings per share for Common and Class B common stock	$ 3.62	$ 2.76	$ 8.75	$ 5.82
Anti-dilutive stock options not included above	63,959	3,750	27,513	27,755

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	2,575,698	2,576,570

Other Comprehensive (Loss) In_3

Other Comprehensive (Loss) Income - 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, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ (8,219)			$ 5,514			$ (746)	$ (6,592)
Unrealized (loss) gain on cash flow hedging instruments	0			(570)			97	1,297
Income tax benefit (expense)	0			154			(27)	(349)
Unrealized (loss) gain on cash flow hedging instruments, net of tax	0			(416)			70	948
Reclassification of (gain) loss on cash flow hedging instruments into earnings	0			(697)			305	(946)
Income tax expense (benefit)	0			188			(84)	255
Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax	0			(509)			221	(691)
Other comprehensive (loss) income	$ (8,219)	$ 3,988	$ 3,776	$ 4,589	$ 8,356	$ (19,280)	$ (455)	$ (6,335)

Other Comprehensive (Loss) In_4

Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (34,867)
Ending balance	(35,098)	$ (43,245)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34,694)	(38,599)
Current period other comprehensive income (loss)	(406)	(4,349)
Ending balance	(35,100)	(42,948)
Cash Flow Hedging Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(173)	(451)
Current period other comprehensive income (loss)	43	568
Reclassification adjustment	132	(414)
Ending balance	$ 2	$ (297)

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands	Aug. 20, 2021USD ($)shares	May 07, 2021USD ($)Locationshares	Apr. 09, 2021USD ($)Location	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Business Acquisition [Line Items]
Goodwill				$ 432,514	$ 412,486
ACME Refrigeration LLC [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location		18
Cash consideration for Business Acquisition		$ 18,051
Fair value of equity shares issued or issuable		$ 2,551		2,551
Stock issued for acquisition | shares		8,492
Businees acquisition total identifiable goodwill and intangibles		$ 3,710
Businesss acquistion goodwill expected period of tax deduction		15 years
Business combination consideration transferred liabilities incurred		$ 3,141
Business acquistion total consideration		22,855
Cash acquired from acquisition		1,340
Intangible assets acquired		2,124
ACME Refrigeration LLC [Member] | Trade Names and Distribution Rights [Member]
Business Acquisition [Line Items]
Indefinite-lived intangible assets acquired		$ 1,508
ACME Refrigeration LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Amortization period		18 years
Finite lived intangible assets acquired		$ 616
TEC Distribution LLC [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location			32
Cash consideration for Business Acquisition			$ 105,200
Businees acquisition total identifiable goodwill and intangibles			$ 37,352
Businesss acquistion goodwill expected period of tax deduction			15 years
Intangible assets acquired			$ 19,900
TEC Distribution LLC [Member] | Trade Names and Distribution Rights [Member]
Business Acquisition [Line Items]
Indefinite-lived intangible assets acquired			$ 15,700
TEC Distribution LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Amortization period			18 years
Finite lived intangible assets acquired			$ 4,200
TEC Distribution LLC [Member] | Carrier Global Corporation [Member]
Business Acquisition [Line Items]
Cash consideration for Business Acquisition			$ 21,040
Ownership percentage, by non-controlling owners			20.00%
TEC Distribution LLC [Member] | Watsco, Inc. [member]
Business Acquisition [Line Items]
Cash consideration for Business Acquisition			$ 84,160
Ownership percentage by parent			80.00%
Repayment of indebtedness for Business Acquisition			$ 1,497
Makdad Industrial Supply Co Inc [Member]
Business Acquisition [Line Items]
Cash consideration for Business Acquisition	$ 3,117
Fair value of equity shares issued or issuable	$ 997			$ 997
Stock issued for acquisition | shares	3,627
Businesss acquistion goodwill expected period of tax deduction	15 years
Cash acquired from acquisition	$ 204
Goodwill	$ 981

Acquisitions - Summary of Tangi

Acquisitions - Summary of Tangible and Intangible Assets Acquired and Liabilities Assumed (Detail) - TEC Distribution LLC [Member] $ in Thousands	Apr. 09, 2021USD ($)
Business Acquisition [Line Items]
Accounts receivable	$ 33,315
Inventories	71,325
Other current assets	962
Property and equipment	2,590
Operating lease right-of-use assets	53,829
Goodwill	17,452
Intangibles	19,900
Accounts payable	(25,393)
Accrued expenses and other current liabilities	(19,237)
Operating lease liabilities, net of current portion	(48,046)
Total	$ 106,697

Derivatives - Impact from Forei

Derivatives - Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	$ 0	$ (570)	$ 97	$ 1,297
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	0	(570)	97	1,297
(Gain) loss reclassified from accumulated other comprehensive loss into earnings	$ 0	$ (697)	$ 305	$ (946)

Derivatives - Fair Value of Der

Derivatives - Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Exchange Forward And Option Contracts [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 0	$ 0
Derivative instruments, liabilities derivatives	5	101
Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	0	0
Derivative instruments, liabilities derivatives	0	91
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	0	0
Derivative instruments, liabilities derivatives	$ 5	$ 10

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum length of time hedged in cash flow hedge			12 months
Pre-tax gain to be reclassified into earnings within the next 12 months	$ 0		$ 0
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	4,200		$ 4,200
Contract expiring terms			2021-10
Gain (loss) from foreign currency forward and option contracts not designated as hedging instruments	$ 83	$ (454)	$ (101)	$ 57

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets:
Equity securities	$ 1,750	$ 6,065
Liabilities:
Derivative financial instruments	5	101
Fair Value Measurements, Level 1 | Other assets
Assets:
Equity securities	1,750	6,065
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 5	$ 101

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Fair Value Disclosures [Abstract]
Equity Securities, FV-NI, Realized Gain	$ 3,815

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Aug. 06, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, market value				$ 894	$ 2,299
Robert W. Baird Co. Inc [Member] | Sales Agreement [Member] | ATM Program [Member] | Maximum [Member]
Stockholders Equity Note [Line Items]
Maximum aggregate offering amount of stock	$ 300,000
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, shares		3,250	5,361	3,250	11,693
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 894	$ 1,265	$ 894	$ 2,299
Common and Class B Common Stock | Non-Vested Restricted Stock | Robert W. Baird Co. Inc [Member]
Stockholders Equity Note [Line Items]
Sale of stock number of shares issued in transaction				0
Common Stock | Stock Option
Stockholders Equity Note [Line Items]
Net proceeds from the sale of Common stock		$ 2,094	$ 6,573	$ 9,940	$ 11,978
Shares withheld as payment for tax withholdings related to share based compensation, shares		2,965	6,582	2,965	11,455
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 863	$ 1,490	$ 863	$ 2,343
Common Stock | Employee Stock Purchase Plan [Member]
Stockholders Equity Note [Line Items]
Net proceeds from shares purchased under ESPP		$ 392	$ 401	$ 1,233	$ 1,229
Common Stock | Class B Common Stock
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock		$ 1.95	$ 1.775	$ 5.675	$ 5.15

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 8,039	$ 5,404

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Greenberg Traurig, P.A.
Related Party Transaction [Line Items]
Amount payable to related party	$ 56		$ 56		$ 8
Related Party Transaction	83	$ 28	181	$ 28
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	142,000		142,000		$ 81,000
Revenues from sales to Carrier and its affiliates	$ 30,000	$ 27,000	$ 86,000	$ 82,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	59.00%	65.00%	64.00%	62.00%