Watsco (WSO) 10-K 25 Feb 22 2021 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Feb. 22, 2022	Jun. 30, 2021
Document Information [Line Items]
Document Type	10-K
Document Period End Date	Dec. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Registrant Name	WATSCO, INC.
Entity Central Index Key	0000105016
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	1-5581
Entity Incorporation, State or Country Code	FL
Entity Small Business	false
Entity Emerging Growth Company	false
Document Annual Report	true
Document Transition Report	false
Entity Tax Identification Number	59-0778222
Entity Address, Address Line One	2665 South Bayshore Drive
Entity Address, State or Province	FL
Entity Address, Address Line Two	Suite 901
Entity Address, City or Town	Miami
Entity Address, Postal Zip Code	33133
City Area Code	305
Local Phone Number	714-4100
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 9,652
ICFR Auditor Attestation Flag	false
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	Miami, FL
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		33,068,513
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		5,805,732

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 6,280,192	$ 5,054,928	$ 4,770,362
Cost of sales	4,612,647	3,832,107	3,613,406
Gross profit	1,667,545	1,222,821	1,156,956
Selling, general and administrative expenses	1,058,316	833,051	800,328
Other income	19,299	11,264	10,256
Operating income	628,528	401,034	366,884
Interest expense, net	996	1,239	4,032
Income before income taxes	627,532	399,795	362,852
Income taxes	128,797	76,623	67,077
Net income	498,735	323,172	295,775
Less: net income attributable to non-controlling interest	79,790	53,593	49,825
Net income attributable to Watsco, Inc.	$ 418,945	$ 269,579	$ 245,950
Earnings per share for Common and Class B common stock:
Basic	$ 10.83	$ 7.03	$ 6.51
Diluted	$ 10.78	$ 7.01	$ 6.50

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income	$ 498,735	$ 323,172	$ 295,775
Other comprehensive income, net of tax
Foreign currency translation adjustment	936	6,272	12,298
Unrealized gain (loss) on cash flow hedging instruments	70	880	(1,461)
Reclassification of loss (gain) on cash flow hedging instruments into earnings	219	(418)	(352)
Other comprehensive income	1,225	6,734	10,485
Comprehensive income	499,960	329,906	306,260
Less: comprehensive income attributable to non-controlling interest	80,324	56,144	53,392
Comprehensive income attributable to Watsco, Inc.	$ 419,636	$ 273,762	$ 252,868

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 118,268	$ 146,067
Accounts receivable, net	698,456	535,288
Inventories, net	1,115,469	781,299
Other current assets	29,207	21,791
Total current assets	1,961,400	1,484,445
Property and equipment, net	111,019	98,225
Operating lease right-of-use assets	268,528	209,169
Goodwill	434,019	412,486
Intangible assets, net	186,896	169,929
Investment in unconsolidated entity	114,808	97,847
Other assets	9,191	12,246
Total assets	3,085,861	2,484,347
Current liabilities:
Current portion of long-term obligations	84,501	71,804
Accounts payable	364,185	251,553
Accrued expenses and other current liabilities	278,036	163,788
Total current liabilities	726,722	487,145
Long-term obligations:
Borrowings under revolving credit agreement	89,000	0
Operating lease liabilities, net of current portion	187,024	139,527
Finance lease liabilities, net of current portion	9,189	4,811
Total long-term obligations	285,213	144,338
Deferred income taxes and other liabilities	76,511	73,103
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued
Paid-in capital	1,003,932	950,915
Accumulated other comprehensive loss, net of tax	(34,176)	(34,867)
Retained earnings	760,796	636,373
Treasury stock, at cost, 4,823,988 shares of Common stock and 48,263 shares of Class B common stock at both December 31, 2021 and 2020, respectively	(87,440)	(87,440)
Total Watsco, Inc. shareholders' equity	1,664,948	1,486,678
Non-controlling interest	332,467	293,083
Total shareholders' equity	1,997,415	1,779,761
Total liabilities and shareholders' equity	3,085,861	2,484,347
Common Stock
Watsco, Inc. shareholders' equity:
Common Stock	18,941	18,851
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common Stock	$ 2,895	$ 2,846

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Preferred stock, par value	$ 0.50	$ 0.50
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares outstanding	37,881,247	37,702,489
Treasury stock, shares	4,823,988	4,823,988
Class B Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares outstanding	5,790,636	5,691,456
Treasury stock, shares	48,263	48,263

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Peirce-Phelps, Inc.	Dunphey & Associates Supply Co., Inc.	N&S Supply of Fishkill, Inc	Makdad Industrial Supply Co Inc [Member]	Acme Refrigeration of Baton Rouge LLC [Member]	Temperature Equipment Corporation [Member]	Common StockMakdad Industrial Supply Co Inc [Member]	Common StockAcme Refrigeration of Baton Rouge LLC [Member]	Common Stock, Class B Common Stock and Preferred Stock	Common Stock, Class B Common Stock and Preferred StockPeirce-Phelps, Inc.	Common Stock, Class B Common Stock and Preferred StockDunphey & Associates Supply Co., Inc.	Common Stock, Class B Common Stock and Preferred StockN&S Supply of Fishkill, Inc	Common Stock, Class B Common Stock and Preferred StockMakdad Industrial Supply Co Inc [Member]	Common Stock, Class B Common Stock and Preferred StockAcme Refrigeration of Baton Rouge LLC [Member]	Paid-In Capital	Paid-In CapitalPeirce-Phelps, Inc.	Paid-In CapitalDunphey & Associates Supply Co., Inc.	Paid-In CapitalN&S Supply of Fishkill, Inc	Paid-In CapitalMakdad Industrial Supply Co Inc [Member]	Paid-In CapitalAcme Refrigeration of Baton Rouge LLC [Member]	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest	Non-controlling InterestPeirce-Phelps, Inc.	Non-controlling InterestTemperature Equipment Corporation [Member]
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	295,775																						245,950		49,825
Other comprehensive gain (loss)	10,485																					6,918			3,567
Issuances of non-vested restricted shares of common stock										$ 87						(87)
Issuances of non-vested restricted shares of common stock (in shares)										173,940
Forfeitures of non-vested restricted shares of common stock										$ (7)						7
Forfeitures of non-vested restricted shares of common stock (in shares)										(12,837)
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	13,464									$ 53						13,411
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)										105,288
Retirement of common stock	(1,652)									$ (5)						(1,647)
Retirement of common stock (in shares)										(10,623)
Share-based compensation	16,537															16,537
Cash dividends declared and paid on Common and Class B common stock	(241,412)																						(241,412)
Common stock issued		$ 58,344	$ 6,891	$ 4,032							$ 186	$ 25	$ 12				$ 58,158	$ 6,866	$ 4,020
Common stock issued (in shares)											372,543	50,952	22,435
Investment in unconsolidated entity	988																								988
Decrease in non-controlling interest in Carrier Enterprise II	(32,400)															(25,768)									(6,632)
Investments		$ 17,000																								$ 17,000
Distributions to non-controlling interest	(39,272)																								(39,272)
Ending balance at Dec. 31, 2019	1,714,767									$ 21,533						907,877						(39,050)	632,507	(87,440)	279,340
Ending balance (in shares) at Dec. 31, 2019										38,194,056
Net income	323,172																						269,579		53,593
Other comprehensive gain (loss)	6,734																					4,183			2,551
Issuances of non-vested restricted shares of common stock										$ 92						(92)
Issuances of non-vested restricted shares of common stock (in shares)										184,265
Forfeitures of non-vested restricted shares of common stock										$ (2)						2
Forfeitures of non-vested restricted shares of common stock (in shares)										(3,589)
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	21,600									$ 72						21,528
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)										144,894
Retirement of common stock	(4,642)									$ (11)						(4,631)
Retirement of common stock (in shares)										(23,148)
Share-based compensation	21,862															21,862
Cash dividends declared and paid on Common and Class B common stock	(265,713)																						(265,713)
Distributions to non-controlling interest	(42,401)																								(42,401)
Adjustment to fair value of Common stock issued for N&S Supply of Fishkill, Inc.				$ (161)															$ (161)
Ending balance at Dec. 31, 2020	1,779,761									$ 21,697						950,915						(34,867)	636,373	(87,440)	293,083
Ending balance (in shares) at Dec. 31, 2020										38,521,694
Net income	498,735																						418,945		79,790
Other comprehensive gain (loss)	1,225																					691			534
Issuances of non-vested restricted shares of common stock										$ 97						(97)
Issuances of non-vested restricted shares of common stock (in shares)										194,643
Forfeitures of non-vested restricted shares of common stock										$ (28)						28
Forfeitures of non-vested restricted shares of common stock (in shares)										(57,089)
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	22,180									$ 69						22,111
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)										136,641
Retirement of common stock	(2,257)									$ (4)						(2,253)
Retirement of common stock (in shares)										(7,898)
Share-based compensation	24,531															24,531
Cash dividends declared and paid on Common and Class B common stock	(295,044)																						(295,044)
Common stock issued					$ 997	$ 2,551								$ 2	$ 4					$ 995	$ 2,547
Common stock issued (in shares)								3,627	8,492
Investments							$ 21,040																				$ 21,040
Distributions to non-controlling interest	(61,980)																								(61,980)
Ending balance at Dec. 31, 2021	1,997,415									$ 21,836						1,003,932						$ (34,176)	760,796	$ (87,440)	$ 332,467
Ending balance (in shares) at Dec. 31, 2021										38,799,632
Common Stock Released From Escrow Shares										(23,230)
Common Stock Released From Escrow Value	$ 522									$ (12)						$ 12							$ 522

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash dividends declared and paid, common stock	$ 7.625	$ 6.925	$ 6.40

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 498,735	$ 323,172	$ 295,775
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,127	25,908	24,512
Share-based compensation	25,365	22,129	17,032
Non-cash contribution to 401(k) plan	5,154	4,543	4,274
Provision for doubtful accounts	6,888	2,688	3,948
Loss (gain) on sale of property and equipment	350	17	(585)
Deferred income tax provision	5,939	40	1,278
Other income from investment in unconsolidated entity	(19,299)	(11,264)	(10,256)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(130,414)	(3,559)	8,457
Inventories, net	(243,660)	139,929	(15,525)
Accounts payable and other liabilities	182,819	33,936	12,734
Other, net	(10,438)	(3,160)	(5,873)
Net cash provided by operating activities	349,566	534,379	335,771
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(129,462)		(59,672)
Capital expenditures	(25,464)	(16,436)	(17,805)
Other investment	(1,000)
Investment in unconsolidated entity	0		(4,940)
Proceeds from sale of property and equipment	1,356	94	1,380
Proceeds from sale of equity securities	5,993
Net cash used in investing activities	(148,577)	(16,342)	(81,037)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(294,522)	(265,713)	(241,412)
Distributions to non-controlling interest	(61,980)	(42,401)	(39,272)
Net repayments of finance lease liabilities	(2,040)	(1,441)	(1,240)
Repurchases of common stock to satisfy employee withholding tax obligations	(1,092)	(2,299)	(1,528)
Payment of fees related to revolving credit agreement	(22)	(196)
Purchase of additional ownership from non-controlling interest	0		(32,400)
Proceeds from non-controlling interest for investment in unconsolidated entity	0		988
Net proceeds from issuances of common stock	21,014	19,257	13,341
Net proceeds (repayments) under revolving credit agreement	89,000	(155,700)	20,500
Net cash used in financing activities	(228,602)	(448,493)	(264,023)
Effect of foreign exchange rate changes on cash and cash equivalents	(186)	2,069	849
Net (decrease) increase in cash and cash equivalents	(27,799)	71,613	(8,440)
Cash and cash equivalents at beginning of year	146,067	74,454	82,894
Cash and cash equivalents at end of year	118,268	$ 146,067	74,454
Peirce-Phelps, Inc.
Cash flows from financing activities:
Proceeds from non-controlling interest for investments	0		$ 17,000
TEC Distribution LLC [Member]
Cash flows from financing activities:
Proceeds from non-controlling interest for investments	$ 21,040

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, Consolidation and Presentation 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. At December 31, 2021, we operated from 671 locations in 42 U.S. states, Canada, Mexico, and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated 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 Impact of COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income. 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 consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income. 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 consolidated 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 consolidated 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. Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information, including potential impacts of business and economic conditions. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2021 and 2020, the allowance for doubtful accounts totaled $11,315 and $7,087, respectively. Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost using the first-in, first-out Vendor Rebates and Purchase Discounts We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2021 and 2020, we had $22,692 and $13,434, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year. Vendor rebates that are earned based on products sold are credited directly to cost of sales in our consolidated statements of income. We also have vendors that offer a cash discount when we pay their invoice within a specified period of time. We account for such cash discounts as a reduction of inventory until we sell the product at which time such cash discounts are reflected as a reduction of cost of sales in our consolidated statements of income. At December 31, 2021 and 2020, we had $17,893 and $12,029, respectively, of cash discounts recorded as a reduction of inventory. Equity Securities Investments in equity securities are recorded at fair value using the specific identification method and are included in other assets in our consolidated balance sheets. Changes in the fair value of equity securities and dividend income are recognized in our consolidated statements of income. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 3-10 3-10 5-7 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 Finance lease ROU assets 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 the applicable commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the 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 1-10 non-lease Practical Expedients We elected the practical expedients related to short-term leases and separating lease components from non-lease Goodwill and Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, an impairment charge would be recognized. On January 1, 2022, we performed our annual evaluation of goodwill impairment and determined that the estimated fair value of our reporting unit exceeded its carrying value. Intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and patented and unpatented technology. Indefinite lived intangibles not subject to amortization are assessed for impairment at least annually, or more frequently if events or changes in circumstances indicate they may be impaired, by comparing the fair value of the intangible asset to its carrying amount to determine if a write-down to fair value is required. Finite lived intangible assets are amortized using the straight-line method over their respective estimated useful lives. We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests. Long-Lived Assets Long-lived assets, other than goodwill and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2021, there were no such events or circumstances. Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment, and related parts and supplies. We generate our revenue primarily from the sale of finished products to customers; therefore, the significant majority of our contracts are short-term in nature and have only a single performance obligation to deliver products; therefore, we satisfy our performance obligation under such contracts when we transfer control of the product to the customer. Some contracts contain a combination of product sales and services, the latter of which is distinct and accounted for as a separate performance obligation. We satisfy our performance obligations for services when we render the services within the agreed-upon service period. Total service revenue is not material and accounted for less than 1% of our consolidated revenues for all three years ended December 31, 2021, 2020 and 2019. Revenue is recognized when control transfers to our customers when products are picked up or via shipment of products or delivery of services. We measure revenue as the amount of consideration we expect to be entitled to receive in exchange for those goods or services, net of any variable considerations (e.g., rights to return product, sales incentives, others) and any taxes collected from customers and subsequently remitted to governmental authorities. Revenue for shipping and handling charges is recognized when products are delivered to the customer. Product Returns We estimate product returns based on historical experience and record them on a gross basis on our balance sheets. Substantially all customer returns relate to products that are returned under manufacturers’ warranty obligations. Accrued sales returns at December 31, 2021 and 2020 of $16,707 and $12,739, respectively, were included in accrued expenses and other current liabilities in our consolidated balance sheets. Sales Incentives We estimate sales incentives expected to be paid over the term of the program based on the most likely amounts. Sales incentives are accounted for as a reduction in the transaction price and are generally paid on an annual basis. Practical Expedients We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2021, 2020, and 2019, were $21,552, $12,588, and $16,587, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products are included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2021, 2020, and 2019, were $70,453, $55,019, and $54,783, respectively. Share-Based Compensation The fair value of stock option and non-vested Income Taxes We record U.S. federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated U.S. federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” Earnings per Share We compute earnings per share using the two-class two-class non-vested non-forfeitable two-class two-class Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period. Derivative Instruments and Hedging Activity We have used derivative instruments, including forward and option contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 17 for additional information pertaining to derivative instruments. Loss Contingencies Accruals are recorded for various contingencies including self-insurance, legal proceedings, environmental matters, and other claims that arise in the normal course of business. The estimation process contains uncertainty because accruals are based on judgment, the probability of losses and, where applicable, the consideration of opinions of external legal counsel and actuarially determined estimates. Additionally, we record receivables from third party insurers when recovery has been determined to be probable.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2021
LEASES	2. LEASES The components of operating lease expense were as follows: Years Ended December 31, 2021 2020 2019 Lease cost $ 90,742 $ 82,543 $ 74,755 Short-term lease cost 9,598 6,317 9,427 Variable lease cost 1,868 942 707 Sublease income (332 ) (228 ) (226 ) $ 101,876 $ 89,574 $ 84,663 Supplemental balance sheet information related to operating leases were as follows: December 31, 2021 2020 ROU assets $ 268,528 $ 209,169 Current portion of operating lease liabilities $ 81,928 $ 70,232 Operating lease liabilities 187,024 139,527 Total operating lease liabilities $ 268,952 $ 209,759 Weighted Average Remaining Lease Term (in years) 4.4 years 3.5 years Weighted Average Discount Rate 3.29 % 4.00 % Supplemental cash flow information related to operating leases were as follows: Years Ended December 31, 2021 2020 2019 Operating cash flows for the measurement of operating lease liabilities $ 91,063 $ 80,921 $ 75,357 Operating lease ROU assets obtained in exchange for operating lease obligations $ 141,198 $ 59,093 $ 290,422 At December 31, 2021, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2022 $ 89,322 2023 71,985 2024 49,245 2025 31,995 2026 19,662 Thereafter 26,837 Total lease payments 289,046 Less imputed interest 20,094 Total lease liability $ 268,952 At December 31, 2021, we had additional operating leases, primarily for real property, that had not yet commenced. Such leases had estimated future minimum rental commitments of approximately $39,700. These operating leases are expected to commence in 2022 with lease terms of 5-11

REVENUES

REVENUES	12 Months Ended
	Dec. 31, 2021
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: Years Ended December 31, 2021 2020 2019 Primary Geographical Regions: United States $ 5,636,929 $ 4,535,262 $ 4,184,206 Canada 386,780 301,727 294,040 Latin America and the Caribbean 256,483 217,939 292,116 $ 6,280,192 $ 5,054,928 $ 4,770,362 Major Product Lines: HVAC equipment 69 % 69 % 68 % Other HVAC products 28 % 28 % 28 % Commercial refrigeration products 3 % 3 % 4 % 100 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2021
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: Years Ended December 31, 2021 2020 2019 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 418,945 $ 269,579 $ 245,950 Less: distributed and undistributed earnings allocated to non-vested 37,273 23,140 20,412 Earnings allocated to Watsco, Inc. shareholders $ 381,672 $ 246,439 $ 225,538 Weighted-average common shares outstanding—Basic 35,244,230 35,069,516 34,644,700 Basic earnings per share for Common and Class B common stock $ 10.83 $ 7.03 $ 6.51 Allocation of earnings for Basic: Common stock $ 353,873 $ 228,361 $ 208,779 Class B common stock 27,799 18,078 16,759 $ 381,672 $ 246,439 $ 225,538 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 418,945 $ 269,579 $ 245,950 Less: distributed and undistributed earnings allocated to non-vested 37,222 23,140 20,411 Earnings allocated to Watsco, Inc. shareholders $ 381,723 $ 246,439 $ 225,539 Weighted-average common shares outstanding—Basic 35,244,230 35,069,516 34,644,700 Effect of dilutive stock options 179,608 81,055 30,941 Weighted-average common shares outstanding—Diluted 35,423,838 35,150,571 34,675,641 Diluted earnings per share for Common and Class B common stock $ 10.78 $ 7.01 $ 6.50 Diluted earnings per share for our Common stock assumes the conversion of all 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 December 31, 2021, 2020, and 2019, our outstanding Class B common stock was convertible into 2,566,990, 2,572,536, and 2,574,336 shares of our Common stock, respectively. Diluted earnings per share excluded 40,529, 19,722, and 205,380 shares for the years ended December 31, 2021, 2020, and 2019, respectively, related to stock options with an exercise price per share greater than the average market value, resulting in an anti-dilutive effect on diluted earnings per share.

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2021
OTHER COMPREHENSIVE INCOME	5. OTHER COMPREHENSIVE INCOME Other comprehensive 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 gains (losses) on cash flow hedging instruments. The tax effects allocated to each component of other comprehensive income were as follows: Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment $ 936 $ 6,272 $ 12,298 Unrealized gain (loss) on cash flow hedging instruments 97 1,205 (2,001 ) Income tax (expense) benefit (27 ) (325 ) 540 Unrealized gain (loss) on cash flow hedging instruments, net of tax 70 880 (1,461 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings 305 (574 ) (482 ) Income tax (benefit) expense (86 ) 156 130 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 219 (418 ) (352 ) Other comprehensive income $ 1,225 $ 6,734 $ 10,485 The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment: Beginning balance $ (34,694 ) $ (38,599 ) $ (46,604 ) Current period other comprehensive income 518 3,905 8,005 Ending balanc e (34,176 ) (34,694 ) (38,599 ) Cash flow hedging instruments: Beginning balance (173 ) (451 ) 636 Current period other comprehensive income (loss) 43 528 (876 ) Reclassification adjustment 130 (250 ) (211 ) Ending balance — (173 ) (451 ) Accumulated other comprehensive loss, net of tax $ (34,176 ) $ (34,867 ) $ (39,050 )

SUPPLIER CONCENTRATION

SUPPLIER CONCENTRATION	12 Months Ended
	Dec. 31, 2021
SUPPLIER CONCENTRATION	6. SUPPLIER CONCENTRATION Purchases from our top ten suppliers comprised 83%, 85%, and 83% of all purchases made in 2021, 2020, and 2019, respectively. Our largest supplier, Carrier and its affiliates, accounted for 61%, 63%, and 62% of all purchases made in 2021, 2020, and 2019, respectively. See Note 20. A significant interruption by Carrier, or any of our other key suppliers, in the delivery of products could impair our ability to maintain current inventory levels and could materially impact our consolidated results of operations and consolidated financial position. At December 31, 2021, $78,454 was recorded as a reduction of inventory related to pricing claim advances, of which $59,644 was provided by Carrier and its affiliates. At December 31, 2020, $68,182 was recorded as a reduction of inventory related to pricing claim advances, of which $54,593 was provided by Carrier and its affiliates.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2021
PROPERTY AND EQUIPMENT	7. PROPERTY AND EQUIPMENT Property and equipment, net, consists of: December 31, 2021 2020 Land $ 676 $ 741 Buildings and improvement s 85,857 80,877 Machinery, vehicles, and equipment 108,110 92,577 Computer hardware and software 68,762 62,776 Furniture and fixtures 21,404 19,077 284,809 256,048 Accumulated depreciation and amortization (173,790 ) (157,823 ) $ 111,019 $ 98,225 Depreciation and amortization expense related to property and equipment included in selling, general and administrative expenses for the years ended December 31, 2021, 2020, and 2019, were $22,566, $19,963, and $18,808, respectively.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2021
DEBT	8. DEBT We maintain an unsecured, $560,000 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 $460,000 at our discretion (which effectively reduces fees payable in respect of the unused portion of the commitment), and we effected this reduction in 2021. 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. Borrowings under the credit facility bear interest at either LIBOR-based rates plus a spread, which ranges from 87.5 to 150.0 basis-points (LIBOR plus 87.5 basis-points at December 31, 2021), depending on our ratio of total debt to EBITDA, or on rates based on the highest of the Federal Funds Effective Rate plus 0.5%, the Prime Rate or the Eurocurrency Rate plus 1.0%, in each case plus a spread which ranges from 0 to 50.0 basis-points (0 basis-points at December 31, 2021), depending on our ratio of total debt to EBITDA. We pay a variable commitment fee on the unused portion of the commitment under the revolving credit agreement, ranging from 7.5 to 20.0 basis-points (7.5 basis-points at December 31, 2021). During 2021 and 2020, we paid fees of $22 and $196, respectively, in connection with the increase in the aggregate borrowing capacity of our revolving credit agreement, which are being amortized ratably through the maturity of the facility in December 2023. At December 31, 2021 $89,000 was outstanding under the revolving credit agreement. At December 31, 2020 there was no outstanding balance 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 December 31, 2021.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2021
INCOME TAXES	9. INCOME TAXES The components of income tax expense from our wholly owned operations and investments and our controlling interest in CIAC and joint ventures with Carrier are as follows: Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ 91,162 $ 58,895 $ 48,359 State 20,703 12,909 9,362 Foreign 10,993 4,779 8,078 122,858 76,583 65,799 Deferred: U.S. Federal 6,434 218 2,603 State 1,374 21 446 Foreign (1,869 ) (199 ) (1,771 ) 5,939 40 1,278 Income tax expense $ 128,797 $ 76,623 $ 67,077 We calculate our income tax expense and our effective tax rate for 100% of income attributable to our wholly owned operations and for our controlling interest of income attributable to CIAC and our joint ventures with Carrier, which are primarily taxed as partnerships for income tax purposes. Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 3.5 3.3 2.8 Excess tax benefits from share-based compensation (1.7 ) (2.1 ) (1.8 ) Tax effects on foreign income 0.4 0.3 0.5 GILTI — — (0.1 ) FDII (0.1 ) — — Change in valuation allowance 0.8 — — Tax credits and other (0.5 ) (0.5 ) (1.2 ) Effective income tax rate attributable to Watsco, Inc. 23.4 22.0 21.2 Taxes attributable to non-controlling (2.9 ) (2.8 ) (2.7 ) Effective income tax rate 20.5 % 19.2 % 18.5 % The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2021 2020 Deferred tax assets: Share-based compensation $ 30,854 $ 27,223 Capitalized inventory costs and inventory adj u 3,449 3,189 Allowance for doubtful accounts 1,328 949 Self-insurance reserves 1,027 518 Other 6,081 5,090 Net operating loss carryforwards 3,959 2,930 46,698 39,899 Valuation allowanc e (5,107 ) (668 ) Total deferred tax assets 41,591 39,231 Deferred tax liabilities: Deductible goodwill (82,704 ) (78,288 ) Depreciation (18,744 ) (16,441 ) Other (8,794 ) (7,050 ) Total deferred tax liabilities (110,242 ) (101,779 ) Net deferred tax liabilities (1) $ (68,651 ) $ (62,548 ) (1) Net deferred tax liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities. Provisions of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) such as the one-time low-taxed non-US was On March 11, 2021, the America Rescue Plan Act of 2021 (the “ARPA”) was enacted. The ARPA expanded IRC Section 162(m) to include five additional most highly compensated individuals. The expansion of Section 162(m) coverage is effective for tax years beginning after December 31, 2026. Unlike the employees subject to Section 162(m) by virtue of being the Chief Executive Officer (“CEO”), Chief Financial Officer, or three most highly compensated named executive officers, an employee who is identified as one of the “additional” five employees is not considered to be a covered employee indefinitely. The five additional employees will be subject to the annual $1,000 cap on compensation, and will be determined annually. Valuation allowances are provided to reduce the related deferred income tax assets to an amount which will, more likely than not, be realized. The valuation allowance was $5,107 and $668 at December 31, 2021 and 2020, respectively. The increase was primarily attributable to the impact on U.S deferred tax assets from share-based compensation deduction limitations related to the expansion of 162(m). At December 31, 2021, there were state net operating loss carryforwards of $15,595, which expire in varying amounts from 2026 through 2041. At December 31, 2021, there were foreign net operating loss carryforwards of $14,977, which expire in varying amounts from 2036 through 2041. These amounts are available to offset future taxable income. There were no federal net operating loss carryforwards at December 31, 2021. We are subject to United States federal income tax, income tax of multiple state jurisdictions and foreign income tax. We are subject to tax audits in the various jurisdictions until the respective statutes of limitations expire. We are no longer subject to United States federal tax examinations for tax years prior to 2018. For the majority of states and foreign jurisdictions, we are no longer subject to tax examinations for tax years prior to 2017. At December 31, 2021 and 2020, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $6,727 and $6,505, respectively. Of these totals, $5,636 and $5,461, respectively, (net of the federal benefit received from state positions) represent the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. Our continuing practice is to recognize penalties within selling, general and administrative expenses and interest related to income tax matters in income tax expense in the consolidated statements of income. At December 31, 2021 and 2020, the cumulative amount of estimated accrued interest and penalties resulting from such unrecognized tax benefits was $1,211 and $982, respectively, and is included in deferred income taxes and other current liabilities in the accompanying consolidated balance sheets. The changes in gross unrecognized tax benefits were as follows: Balance at December 31, 2018 $ 4,902 Additions based on tax positions related to the current year 1,027 Reductions due to lapse of applicable statute of limitations (562 ) Balance at December 31, 2019 5,367 Additions based on tax positions related to the current year 1,911 Reductions due to lapse of applicable statute of limitations (773 ) Balance at December 31, 2020 6,505 Additions based on tax positions related to the current year 1,143 Reductions due to lapse of applicable statute of limitations (921 ) Balance at December 31, 2021 $ 6,727

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
	Dec. 31, 2021
SHARE-BASED COMPENSATION AND BENEFIT PLANS	10. SHARE-BASED COMPENSATION AND BENEFIT PLANS Share-Based Compensation Plans We have two share-based compensation plans for employees. The 2021 Incentive Compensation Plan (the “2021 Plan”) provides for the award of a broad variety of share-based compensation alternatives such as non-vested non-qualified non-qualified non-vested Under the 2021 Plan, the number of shares of Common and Class B common stock available for issuance is (i) 2,500,000, plus (ii) any shares of Common stock or Class B common stock that remained available for grant in connection with awards under the Watsco, Inc. 2014 Incentive Compensation Plan (the “2014 Plan”) on the date on which our shareholders approved the 2021 Plan (iii) shares underlying currently outstanding awards issued under the 2014 Plan, which shares become reissuable under the 2021 Plan to the extent that such underlying shares are not issued due to their forfeiture, expiration, termination or otherwise. A total of 125,995 shares of Common and Class B common stock, net of cancellations, had been awarded under the 2021 Plan as of December 31, 2021. As of December 31, 2021, 2,381,332 shares of common stock were reserved for future grants under the 2021 Plan. Options under the 2021 Plan vest over two non-vested The 2014 Plan expired during 2021; therefore, no additional options may be granted. There were 498,138 options to exercise common stock outstanding under the 2014 Plan at December 31, 2021. Options under the 2014 Plan vest over two The following is a summary of stock option activity under the 2021 Plan and the 2014 Plan as of and for the year ended December 31, 2021: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2020 585,116 $ 174.83 Granted 163,550 276.41 Exercised (130,178 ) 157.50 Forfeited (15,500 ) 208.77 Expired (500 ) 146.09 Options outstanding at December 31, 2021 602,488 $ 205.30 3.11 $ 64,816 Options exercisable at December 31, 2021 105,665 $ 168.77 1.95 $ 15,227 The following is a summary of non-vested Shares Weighted- Non-vested 3,335,107 $ 75.00 Granted 194,643 254.73 Vested (13,000 ) 138.97 Forfeited (57,089 ) 131.31 Non-vested 3,459,661 $ 83.94 The weighted-average grant date fair value of non-vested non-vested During 2021, 3,858 shares of Class B common stock with an aggregate fair market value of $1,078 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 2020, 11,693 shares of Common and Class B common stock with an aggregate fair market value of $2,299 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 2019, 9,824 shares of Common and Class B common stock with an aggregate fair market value of $1,518 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. Share-Based Compensation Fair Value Assumptions The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing valuation model based on the weighted-average assumptions noted in the table below. The fair value of each stock option award, which is subject to graded vesting, is expensed, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the stock option. We use historical data to estimate stock option forfeitures. The expected term of stock option awards granted represents the period of time that stock option awards granted are expected to be outstanding and was calculated using the simplified method for plain vanilla options, which we believe provides a reasonable estimate of expected life based on our historical data. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2021 2020 2019 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 0.79 % 0.26 % 1.64 % Expected volatility 21.85 % 20.89 % 18.01 % Expected dividend yield 2.97 % 3.69 % 3.99 % Grant date fair value $ 34.79 $ 20.76 $ 14.81 Exercise of Stock Options The total intrinsic value of stock options exercised during 2021, 2020, and 2019 was $16,903, $8,753, and $4,153, respectively. Cash received from the exercise of stock options during 2021, 2020, and 2019 was $19,338, $17,608, and $11,703, respectively. The tax benefit from stock option exercises during 2021, 2020, and 2019 was $3,595, $1,586, and $626, respectively. During 2021, 2020, and 2019, 4,040 shares of Common stock with an aggregate fair market value of $1,179, 11,455 shares of Common stock with an aggregate fair market value of $2,343 and 799 shares of Common stock with an aggregate fair market value of $134, respectively, were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. Share-Based Compensation Expense The following table provides information on share-based compensation expense: Years Ended December 31, 2021 2020 2019 Stock options $ 2,908 $ 2,447 $ 2,440 Non-vested 22,457 19,682 14,592 Share-based compensation expense $ 25,365 $ 22,129 $ 17,032 At December 31, 2021, there was $5,770 of unrecognized pre-tax At December 31, 2021, there was $180,661 of unrecognized pre-tax non-vested non-vested non-vested non-vested 5- 14 Employee Stock Purchase Plan The Watsco, Inc. Fourth Amended and Restated 1996 Qualified Employee Stock Purchase Plan (the “ESPP”) provides for up to 1,500,000 shares of Common stock to be available for purchase by our full-time employees with at least 90 days of service. The ESPP allows participating employees to purchase shares of Common stock at a 5% discount to the fair market value at specified times. During 2021, 2020, and 2019, employees purchased 3,501, 5,121, and 5,676 shares of Common stock at an average price of $239.11, $171.89, and $145.09 per share, respectively. Cash dividends received by the ESPP were reinvested in Common stock and resulted in the issuance of 2,962, 3,964, and 5,087 additional shares during 2021, 2020, and 2019, respectively. We received net proceeds of $1,676, $1,649, and $1,638, respectively, during 2021, 2020, and 2019, for shares of our Common stock purchased under the ESPP. At December 31, 2021, 450,945 shares remained available for purchase under the ESPP. 401(k) Plan We have a profit sharing retirement plan for our employees that is qualified under Section 401(k) of the Internal Revenue Code. Annual matching contributions are made based on a percentage of eligible employee compensation deferrals. The

PURCHASE OF REMAINING OWNERSHIP

PURCHASE OF REMAINING OWNERSHIP INTEREST IN JOINT VENTURE	12 Months Ended
	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
PURCHASE OF REMAINING OWNERSHIP INTEREST IN JOINT VENTURE	11. PURCHASE OF REMAINING OWNERSHIP INTEREST IN JOINT VENTURE Effective May 31, 2019, we purchased an additional 20% ownership interest in Homans Associates II LLC (“Homans”) from our second joint venture with Carrier, Carrier Enterprise Northeast, LLC, which we refer to as Carrier Enterprise II, for cash consideration of $32,400, which increased our ownership in Homans to 100%. Homans previously operated as a division of Carrier Enterprise II and subsequent to the purchase operates as a wholly owned subsidiary of the Company with 25 locations in the Northeastern U.S.

INVESTMENT IN UNCONSOLIDATED EN

INVESTMENT IN UNCONSOLIDATED ENTITY	12 Months Ended
	Dec. 31, 2021
INVESTMENT IN UNCONSOLIDATED ENTITY	12. INVESTMENT IN UNCONSOLIDATED ENTITY On June 21, 2017, our first joint venture with Carrier, Carrier Enterprise, LLC, which we refer to as Carrier Enterprise I, acquired a 34.9% ownership interest in RSI, an HVAC distributor operating from 34 locations in the Western U.S. We have an 80% controlling interest in Carrier Enterprise I, and Carrier has a 20% non-controlling Carrier Enterprise I is a party to a shareholders’ agreement (the “Shareholders’ Agreement”) with RSI and its shareholders. Pursuant to the Shareholders’ Agreement, RSI’s shareholders have the right to sell, and Carrier Enterprise I has the obligation to purchase, their respective shares of RSI for a purchase price determined based on either book value or a multiple of EBIT, the latter of which Carrier Enterprise I used to calculate the price paid for its investment in RSI. RSI’s shareholders may transfer their respective shares of RSI common stock only to members of the Sigler family or to Carrier Enterprise I, and, at any time from and after the date on which Carrier Enterprise I owns 85% or more of RSI’s outstanding common stock, it has the right, but not the obligation, to purchase from RSI’s shareholders the remaining outstanding shares of RSI common stock. Additionally, Carrier Enterprise I has the right to appoint two of RSI’s six board members. Given Carrier Enterprise I’s 38.1% equity interest in RSI and its right to appoint two out of RSI’s six board members, this investment in RSI is accounted for under the equity method.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2021
ACQUISITIONS	13. ACQUISITIONS Makdad Industrial Supply Co., Inc. On August 20, 2021, one of our wholly owned subsidiaries acquired Makdad Industrial Supply Co., Inc. (“MIS”), 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 (“ACME”), a distributor of air conditioning, heating, and refrigeration products, operating less certain average revolving indebtedness. We formed a new, wholly owned subsidiary, Acme Refrigeration LLC, that operates this business. Consideration for the net purchase price consisted of 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 The purchase price resulted in the recognition of $38,624 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 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 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 ROU assets 53,829 Goodwill 18,724 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (20,509 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697 N&S Supply of Fishkill, Inc. On November 26, 2019, one of our wholly owned subsidiaries acquired certain assets and assumed certain liabilities of N&S Supply of Fishkill, Inc. (“N&S”), a distributor of air conditioning, heating and plumbing products operating from seven locations in New York and Connecticut. The purchase price was composed of cash consideration of $12,000, the issuance of 22,435 shares of Common stock having a fair value of $3,871, net of a discount for lack of marketability, and the repayment of certain indebtedness. The purchase price resulted in the recognition of $4,672 in goodwill and intangibles. The fair value of the identified intangible assets was $1,540 and consisted of $770 trade names and distribution rights, and $770 in customer relationships to be amortized over an 18-year Peirce-Phelps, Inc. On August 1, 2019, Carrier Enterprise I acquired substantially all the HVAC assets and assumed certain of the liabilities of Peirce-Phelps, Inc. (“PPI”), an HVAC distributor operating from 19 locations in Pennsylvania, New Jersey, and Delaware, for $85,000 less certain average revolving indebtedness. Consideration for the net purchase price consisted of $10,000 in cash, 372,543 shares of Common stock having a fair value of $58,344, net of a discount for lack of marketability, and the repayment of certain average revolving indebtedness. Carrier contributed cash of $17,000 to Carrier Enterprise I in connection with the acquisition of PPI. The purchase price resulted in the recognition of $28,884 in goodwill and intangibles. The fair value of the identified intangible assets was $19,000 and consisted of $13,500 in trade names and distribution rights, and $5,500 in customer relationships to be amortized over an 18-year The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of PPI based on the respective fair values as of August 1, 2019: Cash and cash equivalents $ 4,299 Accounts receivable 30,719 Inventories 45,491 Other current assets 135 Property and equipment 2,544 Operating lease ROU assets 19,072 Goodwill 9,884 Intangibles 19,000 Other assets 299 Accounts payable (11,079 ) Accrued expenses and other current liabilities (13,038 ) Operating lease liabilities, net of current portion (14,100 ) Total $ 93,226 Dunphey & Associates Supply Co., Inc. On April 2, 2019, one of our wholly owned subsidiaries acquired certain assets and assumed certain liabilities of Dunphey & Associates Supply Co., Inc. (“DASCO”), a distributor of air conditioning and heating products operating from seven locations in New Jersey, New York and Connecticut, for cash consideration of $16,758 and the issuance of 50,952 shares of Common stock having a fair value of $6,891, net of a discount for lack of marketability. The purchase price resulted in the recognition of $8,974 in goodwill and intangibles. The fair value of the identified intangible assets was $5,300 and consisted of $2,500 trade names and trademarks, and $2,800 in customer relationships to be amortized over a 15-year 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 the acquisitions was not deemed significant to the consolidated financial statements.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2021
GOODWILL AND INTANGIBLE ASSETS	14. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2019 $ 411,217 Acquired goodwill 410 Foreign currency translation adjustment 859 Balance at December 31, 2020 412,486 Acquired goodwill 21,291 Foreign currency translation adjustment 242 Balance at December 31, 2021 $ 434,019 Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2021 2020 Indefinite lived intangible assets—Trade names, trademarks, and distribution rights $ 158,389 $ 140,867 Finite lived intangible assets: Customer relationships 7- 18 86,526 81,527 Patented and unpatented technology 7 years 1,721 1,714 Trade name 10 years 1,150 1,150 Accumulated amortization (60,890 ) (55,329 ) Finite lived intangible assets, net 28,507 29,062 $ 186,896 $ 169,929 Amortization expense related to finite lived intangible assets included in selling, general and administrative expenses for the years ended December 31, 2021, 2020, and 2019, were $5,561, $5,945, and $5,704, respectively. Annual amortization of finite lived intangible assets for the next five years is expected to approximate the following: 2022 $ 4,500 2023 $ 3,900 2024 $ 3,700 2025 $ 3,700 2026 $ 3,500

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2021
SHAREHOLDERS' EQUITY	15. SHAREHOLDERS’ EQUITY Common Stock Common stock and Class B common stock share equally in earnings and are identical in most other respects except (i) Common stock is entitled to one vote on most matters and each share of Class B common stock is entitled to ten votes; (ii) shareholders of Common stock are entitled to elect 25% of the Board of Directors (rounded up to the nearest whole number) and Class B shareholders are entitled to elect the balance of the Board of Directors; (iii) cash dividends may be paid on Common stock without paying a cash dividend on Class B common stock and no cash dividend may be paid on Class B common stock unless at least an equal cash dividend is paid on Common stock and (iv) Class B common stock is convertible at any time into Common stock on a one-for-one Preferred Stock We are authorized to issue preferred stock with such designation, rights and preferences as may be determined from time to time by our Board of Directors. Accordingly, the Board of Directors is empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights which could adversely affect the voting power or other rights of the holders of our Common stock and Class B common stock and, in certain instances, could adversely affect the market price of this stock. We had no preferred stock outstanding at December 31, 2021 or 2020. At-the-Market On August 6, 2021, we entered into a sales agreement with Robert W. Baird & Co. Inc. (“Baird”), 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 $300,000 (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 No. 333-260758). As of December 31, 2021, no shares of Common stock had been sold under the ATM Program. Stock Repurchase Plan In September 1999, our Board of Directors authorized the repurchase, at management’s discretion, of up to 7,500,000 shares of common stock in the open market or via private transactions. Shares repurchased under the program are accounted for using the cost method and result in a reduction of shareholders’ equity. No shares were repurchased during 2021, 2020 or 2019. We last repurchased shares under this plan during 2008. In aggregate, 6,322,650 shares of Common stock and 48,263 shares of Class B common stock have been repurchased at a cost of $114,425 since the inception of the program. At December 31, 2021, there were 1,129,087 shares remaining authorized for repurchase under the program. Common Stock Released from Escrow On August 23, 2018 we issued 23,230 shares of Common stock into escrow as contingent consideration in connection with the acquisition of Alert Labs, Inc. The shares were subject to certain performance metrics within a three-year measurement period. The shares, and related cash dividends paid during the three-year period, were released to us from escrow as the performance metrics were not met. These shares were retired upon delivery.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2021
FINANCIAL INSTRUMENTS	16. FINANCIAL INSTRUMENTS Recorded Financial Instruments Recorded financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, the current portion of long-term obligations and borrowings under our revolving credit agreement. At December 31, 2021 and 2020, the fair values of cash and cash equivalents, accounts receivable, accounts payable and the current portion of long-term obligations approximated their carrying values due to the short-term nature of these instruments. The fair values of variable rate borrowings under our revolving credit agreement also approximate their carrying value based upon interest rates available for similar instruments with consistent terms and remaining maturities. Off-Balance At December 31, 2021 and 2020, we were contingently liable under standby letters of credit for $150 and respectively, which were required by leases for real property. Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of accounts receivable. Concentrations of credit risk are limited due to the large number of customers comprising the customer base and their dispersion across many different geographical regions. We also have access to credit insurance programs which are used as an additional means to mitigate credit risk.

DERIVATIVES

DERIVATIVES	12 Months Ended
	Dec. 31, 2021
DERIVATIVES	17. 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. At December 31, 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: Years Ended December 31, 2021 2020 Gain recorded in accumulated other comprehensive loss $ 97 $ 1,205 Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 305 $ (574) At December 31, 2021, no pre-tax 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. We had only one foreign currency exchange contract not We recognized losses of $237, $490, and $540 from foreign currency forward and option contracts not designated as hedging instruments in our consolidated statements of income for 2021, 2020, and 2019, 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 consolidated balance sheets. See Note 18. Asset Derivatives Liability Derivatives December 31, 2021 2020 2021 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	12 Months Ended
	Dec. 31, 2021
FAIR VALUE MEASUREMENTS	18. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,790 $ 1,790 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 — $ 5 — Total Fair Value Measurements Balance Sheet Location 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 Private equities Derivative financial instruments During 2021, we recognized a realized gain of $3,815 recorded in our consolidated statement of income attributable to the sale of certain equity securities. There were no transfers in or out of Level 1 and Level 2 during 2020 or 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES	19. 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 $7,253 and $5,404 at December 31, 2021 and 2020, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets. Variable Interest Entity As of December 31, 2021, in conjunction with our casualty insurance programs, limited equity interests are held in a captive insurance entity. The programs permit us to self-insure a portion of losses, to gain access to a wide array of safety-related services, to pool insurance risks and resources in order to obtain more competitive pricing for administration and reinsurance and to limit risk of loss in any particular year. The entity meets the definition of Variable Interest Entity (“VIE”); however, we do not meet the requirements to include this entity in the consolidated financial statements. At December 31, 2021, the maximum exposure to loss related to our involvement with this entity is limited to approximately $6,200 and we have a cash deposit of approximately $2,600 with them as collateral to cover any contingency related to additional risk assessments pertaining to our self-insurance programs. See “Self-Insurance” above for further information on commitments associated with the insurance programs. At December 31, 2021, there were no other entities that met the definition of a VIE. Purchase Obligations At December 31, 2021, we were obligated under various non-cancelable

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2021
RELATED PARTY TRANSACTIONS	20. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 61%, 63%, and 62% of all inventory purchases made during 2021, 2020 and 2019, respectively. At December 31, 2021 and 2020, approximately $90,000 and $81,000, 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 consolidated statements of income for 2021, 2020, and 2019 included approximately $108,000, $103,000, and $91,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length A member

INFORMATION ABOUT GEOGRAPHIC AR

INFORMATION ABOUT GEOGRAPHIC AREAS	12 Months Ended
	Dec. 31, 2021
INFORMATION ABOUT GEOGRAPHIC AREAS	21. INFORMATION ABOUT GEOGRAPHIC AREAS Our operations are primarily within the United States, including Puerto Rico, Canada and Mexico. Products are also sold from the United States on an export-only basis to portions of Latin America and the Caribbean Basin. The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2021 2020 2019 Revenues: United States $ 5,636,929 $ 4,535,262 $ 4,184,206 Canada 386,780 301,727 294,040 Latin America and the Caribbean 256,483 217,939 292,116 Total revenues $ 6,280,192 $ 5,054,928 $ 4,770,362 December 31, 2021 2020 Long-Lived Assets: United States $ 931,170 $ 799,665 Canada 175,864 180,518 Latin America and the Caribbean 17,427 19,719 Total long-lived assets $ 1,124,461 $ 999,902 Revenues are attributed to countries based on the location of the store from which the sale occurred. Long-lived assets consist primarily of goodwill and intangible assets, operating lease ROU assets, property and equipment, and our investment in an unconsolidated entity.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2021
SUPPLEMENTAL CASH FLOW INFORMATION	22. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Years Ended December 31, 2021 2020 2019 Interest paid $ 913 $ 1,844 $ 4,341 Income taxes net of refunds $ 124,984 $ 70,889 $ 70,095 Common stock issued for MIS $ 997 — — Common stock issued for ACME $ 2,551 — — Common stock issued for N&S — $ (161 ) $ 4,032 Common stock issued for PPI — — $ 58,344 Common stock issued for DASCO — — $ 6,891

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Dec. 31, 2021
SUBSEQUENT EVENT	23. SUBSEQUENT EVENTS On February 8, 2022, our Board of Directors approved an increase to the quarterly cash dividend per share of

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Organization, Consolidation and Presentation	Organization, Consolidation and Presentation 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. At December 31, 2021, we operated from 671 locations in 42 U.S. states, Canada, Mexico, and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated 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
Impact of COVID-19 Pandemic	Impact of COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19 COVID-19
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income.
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 consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income. 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 consolidated 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 consolidated 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.
Cash Equivalents	Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information, including potential impacts of business and economic conditions. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2021 and 2020, the allowance for doubtful accounts totaled $11,315 and $7,087, respectively.
Inventories	Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost using the first-in, first-out
Vendor Rebates and Purchase Discounts	Vendor Rebates and Purchase Discounts We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2021 and 2020, we had $22,692 and $13,434, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year. Vendor rebates that are earned based on products sold are credited directly to cost of sales in our consolidated statements of income. We also have vendors that offer a cash discount when we pay their invoice within a specified period of time. We account for such cash discounts as a reduction of inventory until we sell the product at which time such cash discounts are reflected as a reduction of cost of sales in our consolidated statements of income. At December 31, 2021 and 2020, we had $17,893 and $12,029, respectively, of cash discounts recorded as a reduction of inventory.
Equity Securities	Equity Securities Investments in equity securities are recorded at fair value using the specific identification method and are included in other assets in our consolidated balance sheets. Changes in the fair value of equity securities and dividend income are recognized in our consolidated statements of income.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 3-10 3-10 5-7
Operating and Finance Leases	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 Finance lease ROU assets 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 the applicable commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the 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 1-10 non-lease Practical Expedients We elected the practical expedients related to short-term leases and separating lease components from non-lease
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, an impairment charge would be recognized. On January 1, 2022, we performed our annual evaluation of goodwill impairment and determined that the estimated fair value of our reporting unit exceeded its carrying value. Intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and patented and unpatented technology. Indefinite lived intangibles not subject to amortization are assessed for impairment at least annually, or more frequently if events or changes in circumstances indicate they may be impaired, by comparing the fair value of the intangible asset to its carrying amount to determine if a write-down to fair value is required. Finite lived intangible assets are amortized using the straight-line method over their respective estimated useful lives. We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests.
Long-Lived Assets	Long-Lived Assets Long-lived assets, other than goodwill and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2021, there were no such events or circumstances.
Fair Value Measurements	Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Revenue Recognition	Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment, and related parts and supplies. We generate our revenue primarily from the sale of finished products to customers; therefore, the significant majority of our contracts are short-term in nature and have only a single performance obligation to deliver products; therefore, we satisfy our performance obligation under such contracts when we transfer control of the product to the customer. Some contracts contain a combination of product sales and services, the latter of which is distinct and accounted for as a separate performance obligation. We satisfy our performance obligations for services when we render the services within the agreed-upon service period. Total service revenue is not material and accounted for less than 1% of our consolidated revenues for all three years ended December 31, 2021, 2020 and 2019. Revenue is recognized when control transfers to our customers when products are picked up or via shipment of products or delivery of services. We measure revenue as the amount of consideration we expect to be entitled to receive in exchange for those goods or services, net of any variable considerations (e.g., rights to return product, sales incentives, others) and any taxes collected from customers and subsequently remitted to governmental authorities. Revenue for shipping and handling charges is recognized when products are delivered to the customer. Product Returns We estimate product returns based on historical experience and record them on a gross basis on our balance sheets. Substantially all customer returns relate to products that are returned under manufacturers’ warranty obligations. Accrued sales returns at December 31, 2021 and 2020 of $16,707 and $12,739, respectively, were included in accrued expenses and other current liabilities in our consolidated balance sheets. Sales Incentives We estimate sales incentives expected to be paid over the term of the program based on the most likely amounts. Sales incentives are accounted for as a reduction in the transaction price and are generally paid on an annual basis. Practical Expedients We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within selling, general and administrative expenses. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2021, 2020, and 2019, were $21,552, $12,588, and $16,587, respectively.
Shipping and Handling	Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products are included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2021, 2020, and 2019, were $70,453, $55,019, and $54,783, respectively.
Share-Based Compensation	Share-Based Compensation The fair value of stock option and non-vested
Income Taxes	Income Taxes We record U.S. federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated U.S. federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not”
Earnings per Share	Earnings per Share We compute earnings per share using the two-class two-class non-vested non-forfeitable two-class two-class Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity We have used derivative instruments, including forward and option contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 17 for additional information pertaining to derivative instruments.
Loss Contingencies	Loss Contingencies Accruals are recorded for various contingencies including self-insurance, legal proceedings, environmental matters, and other claims that arise in the normal course of business. The estimation process contains uncertainty because accruals are based on judgment, the probability of losses and, where applicable, the consideration of opinions of external legal counsel and actuarially determined estimates. Additionally, we record receivables from third party insurers when recovery has been determined to be probable.
Self-Insurance	Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors, and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $7,253 and $5,404 at December 31, 2021 and 2020, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets.

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2021
Components Of Lease Expense	The components of operating lease expense were as follows: Years Ended December 31, 2021 2020 2019 Lease cost $ 90,742 $ 82,543 $ 74,755 Short-term lease cost 9,598 6,317 9,427 Variable lease cost 1,868 942 707 Sublease income (332 ) (228 ) (226 ) $ 101,876 $ 89,574 $ 84,663
Summary Of Balance Sheet Information Related To Leases	Supplemental balance sheet information related to operating leases were as follows: December 31, 2021 2020 ROU assets $ 268,528 $ 209,169 Current portion of operating lease liabilities $ 81,928 $ 70,232 Operating lease liabilities 187,024 139,527 Total operating lease liabilities $ 268,952 $ 209,759 Weighted Average Remaining Lease Term (in years) 4.4 years 3.5 years Weighted Average Discount Rate 3.29 % 4.00 %
Summary Of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to operating leases were as follows: Years Ended December 31, 2021 2020 2019 Operating cash flows for the measurement of operating lease liabilities $ 91,063 $ 80,921 $ 75,357 Operating lease ROU assets obtained in exchange for operating lease obligations $ 141,198 $ 59,093 $ 290,422
Maturities Of Operating Lease Liabilities	At December 31, 2021, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2022 $ 89,322 2023 71,985 2024 49,245 2025 31,995 2026 19,662 Thereafter 26,837 Total lease payments 289,046 Less imputed interest 20,094 Total lease liability $ 268,952

REVENUES (Tables)

REVENUES (Tables)	12 Months Ended
	Dec. 31, 2021
Summary of Disaggregated Revenue	Years Ended December 31, 2021 2020 2019 Primary Geographical Regions: United States $ 5,636,929 $ 4,535,262 $ 4,184,206 Canada 386,780 301,727 294,040 Latin America and the Caribbean 256,483 217,939 292,116 $ 6,280,192 $ 5,054,928 $ 4,770,362 Major Product Lines: HVAC equipment 69 % 69 % 68 % Other HVAC products 28 % 28 % 28 % Commercial refrigeration products 3 % 3 % 4 % 100 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 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: Years Ended December 31, 2021 2020 2019 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 418,945 $ 269,579 $ 245,950 Less: distributed and undistributed earnings allocated to non-vested 37,273 23,140 20,412 Earnings allocated to Watsco, Inc. shareholders $ 381,672 $ 246,439 $ 225,538 Weighted-average common shares outstanding—Basic 35,244,230 35,069,516 34,644,700 Basic earnings per share for Common and Class B common stock $ 10.83 $ 7.03 $ 6.51 Allocation of earnings for Basic: Common stock $ 353,873 $ 228,361 $ 208,779 Class B common stock 27,799 18,078 16,759 $ 381,672 $ 246,439 $ 225,538 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 418,945 $ 269,579 $ 245,950 Less: distributed and undistributed earnings allocated to non-vested 37,222 23,140 20,411 Earnings allocated to Watsco, Inc. shareholders $ 381,723 $ 246,439 $ 225,539 Weighted-average common shares outstanding—Basic 35,244,230 35,069,516 34,644,700 Effect of dilutive stock options 179,608 81,055 30,941 Weighted-average common shares outstanding—Diluted 35,423,838 35,150,571 34,675,641 Diluted earnings per share for Common and Class B common stock $ 10.78 $ 7.01 $ 6.50

OTHER COMPREHENSIVE INCOME (Tab

OTHER COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2021
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)	The tax effects allocated to each component of other comprehensive income were as follows: Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment $ 936 $ 6,272 $ 12,298 Unrealized gain (loss) on cash flow hedging instruments 97 1,205 (2,001 ) Income tax (expense) benefit (27 ) (325 ) 540 Unrealized gain (loss) on cash flow hedging instruments, net of tax 70 880 (1,461 ) Reclassification of loss (gain) on cash flow hedging instruments into earnings 305 (574 ) (482 ) Income tax (benefit) expense (86 ) 156 130 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 219 (418 ) (352 ) Other comprehensive income $ 1,225 $ 6,734 $ 10,485
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment: Beginning balance $ (34,694 ) $ (38,599 ) $ (46,604 ) Current period other comprehensive income 518 3,905 8,005 Ending balanc e (34,176 ) (34,694 ) (38,599 ) Cash flow hedging instruments: Beginning balance (173 ) (451 ) 636 Current period other comprehensive income (loss) 43 528 (876 ) Reclassification adjustment 130 (250 ) (211 ) Ending balance — (173 ) (451 ) Accumulated other comprehensive loss, net of tax $ (34,176 ) $ (34,867 ) $ (39,050 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2021
Property and Equipment, Net	Property and equipment, net, consists of: December 31, 2021 2020 Land $ 676 $ 741 Buildings and improvement s 85,857 80,877 Machinery, vehicles, and equipment 108,110 92,577 Computer hardware and software 68,762 62,776 Furniture and fixtures 21,404 19,077 284,809 256,048 Accumulated depreciation and amortization (173,790 ) (157,823 ) $ 111,019 $ 98,225

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2021
Components of Income Tax Expense	The components of income tax expense from our wholly owned operations and investments and our controlling interest in CIAC and joint ventures with Carrier are as follows: Years Ended December 31, 2021 2020 2019 Current: U.S. Federal $ 91,162 $ 58,895 $ 48,359 State 20,703 12,909 9,362 Foreign 10,993 4,779 8,078 122,858 76,583 65,799 Deferred: U.S. Federal 6,434 218 2,603 State 1,374 21 446 Foreign (1,869 ) (199 ) (1,771 ) 5,939 40 1,278 Income tax expense $ 128,797 $ 76,623 $ 67,077
Reconciliation of Effective Income Tax Rate	Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 3.5 3.3 2.8 Excess tax benefits from share-based compensation (1.7 ) (2.1 ) (1.8 ) Tax effects on foreign income 0.4 0.3 0.5 GILTI — — (0.1 ) FDII (0.1 ) — — Change in valuation allowance 0.8 — — Tax credits and other (0.5 ) (0.5 ) (1.2 ) Effective income tax rate attributable to Watsco, Inc. 23.4 22.0 21.2 Taxes attributable to non-controlling (2.9 ) (2.8 ) (2.7 ) Effective income tax rate 20.5 % 19.2 % 18.5 %
Significant Components of Net Deferred Tax Liabilities	The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2021 2020 Deferred tax assets: Share-based compensation $ 30,854 $ 27,223 Capitalized inventory costs and inventory adj u 3,449 3,189 Allowance for doubtful accounts 1,328 949 Self-insurance reserves 1,027 518 Other 6,081 5,090 Net operating loss carryforwards 3,959 2,930 46,698 39,899 Valuation allowanc e (5,107 ) (668 ) Total deferred tax assets 41,591 39,231 Deferred tax liabilities: Deductible goodwill (82,704 ) (78,288 ) Depreciation (18,744 ) (16,441 ) Other (8,794 ) (7,050 ) Total deferred tax liabilities (110,242 ) (101,779 ) Net deferred tax liabilities (1) $ (68,651 ) $ (62,548 ) (1) Net deferred tax liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.
Changes in Gross Unrecognized Tax Benefits	The changes in gross unrecognized tax benefits were as follows: Balance at December 31, 2018 $ 4,902 Additions based on tax positions related to the current year 1,027 Reductions due to lapse of applicable statute of limitations (562 ) Balance at December 31, 2019 5,367 Additions based on tax positions related to the current year 1,911 Reductions due to lapse of applicable statute of limitations (773 ) Balance at December 31, 2020 6,505 Additions based on tax positions related to the current year 1,143 Reductions due to lapse of applicable statute of limitations (921 ) Balance at December 31, 2021 $ 6,727

SHARE-BASED COMPENSATION AND _2

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2021
Summary of Stock Option Activity	The following is a summary of stock option activity under the 2021 Plan and the 2014 Plan as of and for the year ended December 31, 2021: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2020 585,116 $ 174.83 Granted 163,550 276.41 Exercised (130,178 ) 157.50 Forfeited (15,500 ) 208.77 Expired (500 ) 146.09 Options outstanding at December 31, 2021 602,488 $ 205.30 3.11 $ 64,816 Options exercisable at December 31, 2021 105,665 $ 168.77 1.95 $ 15,227
Summary of Non-Vested Restricted Stock Activity	The following is a summary of non-vested Shares Weighted- Non-vested 3,335,107 $ 75.00 Granted 194,643 254.73 Vested (13,000 ) 138.97 Forfeited (57,089 ) 131.31 Non-vested 3,459,661 $ 83.94
Valuation Assumptions Used for Stock Option Awards	The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2021 2020 2019 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 0.79 % 0.26 % 1.64 % Expected volatility 21.85 % 20.89 % 18.01 % Expected dividend yield 2.97 % 3.69 % 3.99 % Grant date fair value $ 34.79 $ 20.76 $ 14.81
Share-Based Compensation Expense	The following table provides information on share-based compensation expense: Years Ended December 31, 2021 2020 2019 Stock options $ 2,908 $ 2,447 $ 2,440 Non-vested 22,457 19,682 14,592 Share-based compensation expense $ 25,365 $ 22,129 $ 17,032

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2021
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	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 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 ROU assets 53,829 Goodwill 18,724 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (20,509 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697 The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of PPI based on the respective fair values as of August 1, 2019: Cash and cash equivalents $ 4,299 Accounts receivable 30,719 Inventories 45,491 Other current assets 135 Property and equipment 2,544 Operating lease ROU assets 19,072 Goodwill 9,884 Intangibles 19,000 Other assets 299 Accounts payable (11,079 ) Accrued expenses and other current liabilities (13,038 ) Operating lease liabilities, net of current portion (14,100 ) Total $ 93,226

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2019 $ 411,217 Acquired goodwill 410 Foreign currency translation adjustment 859 Balance at December 31, 2020 412,486 Acquired goodwill 21,291 Foreign currency translation adjustment 242 Balance at December 31, 2021 $ 434,019
Indefinite and Finite Lived Intangible Assets	Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2021 2020 Indefinite lived intangible assets—Trade names, trademarks, and distribution rights $ 158,389 $ 140,867 Finite lived intangible assets: Customer relationships 7- 18 86,526 81,527 Patented and unpatented technology 7 years 1,721 1,714 Trade name 10 years 1,150 1,150 Accumulated amortization (60,890 ) (55,329 ) Finite lived intangible assets, net 28,507 29,062 $ 186,896 $ 169,929
Amortization Expense Related to Finite Lived Intangible Assets	Annual amortization of finite lived intangible assets for the next five years is expected to approximate the following: 2022 $ 4,500 2023 $ 3,900 2024 $ 3,700 2025 $ 3,700 2026 $ 3,500

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 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: Years Ended December 31, 2021 2020 Gain recorded in accumulated other comprehensive loss $ 97 $ 1,205 Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 305 $ (574)
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 consolidated balance sheets. See Note 18. Asset Derivatives Liability Derivatives December 31, 2021 2020 2021 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)	12 Months Ended
	Dec. 31, 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: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,790 $ 1,790 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 — $ 5 — Total Fair Value Measurements Balance Sheet Location 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 —

INFORMATION ABOUT GEOGRAPHIC _2

INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	12 Months Ended
	Dec. 31, 2021
Revenues and Long-Lived Assets by Geographical Area	The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2021 2020 2019 Revenues: United States $ 5,636,929 $ 4,535,262 $ 4,184,206 Canada 386,780 301,727 294,040 Latin America and the Caribbean 256,483 217,939 292,116 Total revenues $ 6,280,192 $ 5,054,928 $ 4,770,362 December 31, 2021 2020 Long-Lived Assets: United States $ 931,170 $ 799,665 Canada 175,864 180,518 Latin America and the Caribbean 17,427 19,719 Total long-lived assets $ 1,124,461 $ 999,902

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2021
Supplemental Cash Flow Information	Years Ended December 31, 2021 2020 2019 Interest paid $ 913 $ 1,844 $ 4,341 Income taxes net of refunds $ 124,984 $ 70,889 $ 70,095 Common stock issued for MIS $ 997 — — Common stock issued for ACME $ 2,551 — — Common stock issued for N&S — $ (161 ) $ 4,032 Common stock issued for PPI — — $ 58,344 Common stock issued for DASCO — — $ 6,891

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)EntityStoreState	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	4
Allowance for doubtful accounts	$ 11,315	$ 7,087
Capitalized vendor rebates	22,692	13,434
Goodwill and intangible assets impairment	0	0	$ 0
Accrued sales returns	16,707	12,739
Selling, general and administrative expense	1,058,316	833,051	800,328
Finance lease ROU assets	11,489	6,232
Finance lease liabilities	11,762	6,383
Reduction of inventory due to cash discount recorded	$ 17,893	$ 12,029
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Finance lease ROU assets	Finance lease ROU assets
Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Selling, general and administrative expense	$ 70,453	$ 55,019	54,783
Advertising Expense [Member]
Significant Accounting Policies [Line Items]
Selling, general and administrative expense	$ 21,552	$ 12,588	$ 16,587
Minimum [Member]
Significant Accounting Policies [Line Items]
Operating Lease Remaining Lease Term	1 year
Maximum [Member]
Significant Accounting Policies [Line Items]
Operating Lease Remaining Lease Term	10 years
Maximum [Member] | Service Revenue Net [Member] | Product Concentration Risk
Significant Accounting Policies [Line Items]
Percentage of revenue	1.00%	1.00%	1.00%
Buildings and Improvements | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Buildings and Improvements | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	40 years
Machinery, Vehicles and Equipment | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Machinery, Vehicles and Equipment | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Computer Hardware and Software | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Computer Hardware and Software | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Furniture and Fixtures | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	5 years
Furniture and Fixtures | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	7 years
Watsco, Inc.
Significant Accounting Policies [Line Items]
Number of locations from which entity operates | Store	671
Number of states in which entity operates | State	42

Components of Operating Lease E

Components of Operating Lease Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lease cost	$ 90,742	$ 82,543	$ 74,755
Short-term lease cost	9,598	6,317	9,427
Variable lease cost	1,868	942	707
Sublease income	(332)	(228)	(226)
Total operating lease cost	$ 101,876	$ 89,574	$ 84,663

Summary Of Balance Sheet Inform

Summary Of Balance Sheet Information Related To Operating Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
ROU assets	$ 268,528	$ 209,169
Current portion of operating lease liabilities	81,928	70,232
Operating lease liabilities	187,024	139,527
Total operating lease liabilities	$ 268,952	$ 209,759
Weighted Average Remaining Lease Term (in years)
Operating leases	4 years 4 months 24 days	3 years 6 months
Weighted Average Discount Rate
Operating leases	3.29%	4.00%

Summary Of Supplemental Cash Fl

Summary Of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for the measurement of operating lease liabilities	$ 91,063	$ 80,921	$ 75,357
Operating lease ROU assets obtained in exchange for operating lease obligations	$ 141,198	$ 59,093	$ 290,422

Maturities Of Operating Lease L

Maturities Of Operating Lease Liabilities (Detail) - Operating Lease Liabilities [Member] $ in Thousands	Dec. 31, 2021USD ($)
Maturities of Operating Lease Liabilities
2022	$ 89,322
2023	71,985
2024	49,245
2025	31,995
2026	19,662
Thereafter	26,837
Total lease payments	289,046
Less imputed interest	20,094
Total lease liability	$ 268,952

Leases - Additional Information

Leases - Additional Information (Detail) $ in Thousands	Dec. 31, 2021USD ($)
Operating leases not yet commenced	$ 39,700
Maximum
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	11 years
Minimum
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	5 years

Summary of Disaggregated Revenu

Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100.00%	100.00%	100.00%
Revenues	$ 6,280,192	$ 5,054,928	$ 4,770,362
United States
Disaggregation of Revenue [Line Items]
Revenues	5,636,929	4,535,262	4,184,206
Canada
Disaggregation of Revenue [Line Items]
Revenues	386,780	301,727	294,040
Latin America and the Caribbean
Disaggregation of Revenue [Line Items]
Revenues	$ 256,483	$ 217,939	$ 292,116
HVAC Equipment
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	69.00%	69.00%	68.00%
Other HVAC Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	28.00%	28.00%	28.00%
Commercial Refrigeration Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	3.00%	3.00%	4.00%

Schedule of Basic and Diluted E

Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 418,945	$ 269,579	$ 245,950
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	37,273	23,140	20,412
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 381,672	$ 246,439	$ 225,538
Weighted-average common shares outstanding—Basic	35,244,230	35,069,516	34,644,700
Basic earnings per share for Common and Class B common stock	$ 10.83	$ 7.03	$ 6.51
Net income attributable to Watsco, Inc. shareholders	$ 418,945	$ 269,579	$ 245,950
Less: distributed and undistributed earnings allocated to non-vested restricted common stock - Diluted	37,222	23,140	20,411
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 381,723	$ 246,439	$ 225,539
Weighted-average common shares outstanding—Basic	35,244,230	35,069,516	34,644,700
Effect of dilutive stock options	179,608	81,055	30,941
Weighted-average common shares outstanding—Diluted	35,423,838	35,150,571	34,675,641
Diluted earnings per share for Common and Class B common stock	$ 10.78	$ 7.01	$ 6.50
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 353,873	$ 228,361	$ 208,779
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 27,799	$ 18,078	$ 16,759

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	2,566,990	2,572,536	2,574,336
Anti-dilutive stock options excluded from earnings per share	40,529	19,722	205,380

Schedule of Tax Effects Allocat

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 936	$ 6,272	$ 12,298
Unrealized gain (loss) on cash flow hedging instruments	97	1,205	(2,001)
Income tax (expense) benefit	(27)	(325)	540
Unrealized gain (loss) on cash flow hedging instruments, net of tax	70	880	(1,461)
Reclassification of loss (gain) on cash flow hedging instruments into earnings	305	(574)	(482)
Income tax (benefit) expense	(86)	156	130
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	219	(418)	(352)
Other comprehensive income (loss)	$ 1,225	$ 6,734	$ 10,485

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (34,867)	$ (39,050)
Ending balance	(34,176)	(34,867)	$ (39,050)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34,694)	(38,599)	(46,604)
Current period other comprehensive income (loss)	518	3,905	8,005
Ending balance	(34,176)	(34,694)	(38,599)
Cash Flow Hedging Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(173)	(451)	636
Current period other comprehensive income (loss)	43	528	(876)
Reclassification adjustment	130	(250)	(211)
Ending balance	$ 0	$ (173)	$ (451)

Supplier Concentration - Additi

Supplier Concentration - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)Vendor	Dec. 31, 2020USD ($)	Dec. 31, 2019
Concentration Risk [Line Items]
Reduction in inventory related to pricing claim advances	$ 78,454	$ 68,182
Supplier Concentration Risk
Concentration Risk [Line Items]
Number of key suppliers | Vendor	10
Carrier and Its Affiliates
Concentration Risk [Line Items]
Reduction in inventory related to pricing claim advances	$ 59,644	$ 54,593
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	61.00%	63.00%	62.00%
Top Ten Suppliers | Supplier Concentration Risk | Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	83.00%	85.00%	83.00%

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 284,809	$ 256,048
Accumulated depreciation and amortization	(173,790)	(157,823)
Property and equipment, net	111,019	98,225
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	676	741
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	85,857	80,877
Machinery, Vehicles and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	108,110	92,577
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	68,762	62,776
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,404	$ 19,077

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 22,566	$ 19,963	$ 18,808

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 05, 2018	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Revolving credit agreement, maturity date	Dec. 5, 2023
Payment of fees related to revolving credit agreement			$ 22	$ 196
Borrowings under revolving credit agreement			89,000	0
Line of Credit Facility, Maximum Borrowing Capacity			$ 560,000
London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			87.50%
Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			0.50%
Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			1.00%
Commitment Fee
Debt Instrument [Line Items]
Basis spread			7.50%
Federal Funds and Eurocurrency Rate [Member]
Debt Instrument [Line Items]
Basis spread			0.00%
Maximum | London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			150.00%
Maximum | Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			50.00%
Maximum | Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			50.00%
Maximum | Commitment Fee
Debt Instrument [Line Items]
Basis spread			20.00%
Minimum | London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			87.50%
Minimum | Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			0.00%
Minimum | Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			0.00%
Minimum | Commitment Fee
Debt Instrument [Line Items]
Basis spread			7.50%
Letter of Credit
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 10,000
Swingline Subfacility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			100,000
Revolving Credit Facility
Debt Instrument [Line Items]
Payment of fees related to revolving credit agreement			22	$ 196
Seasonal discretionary maximum borrowing capacity under revolving credit agreement		$ 460,000
Alternative Currency Sublimit
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			75,000
Mexican Borrowing Sublimit
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 8,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Thousands	Mar. 11, 2021USD ($)Employee	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Income Taxes [Line Items]
Percentage of income attributable to wholly-owned operations and investments for which income tax expense and effective tax rate calculated		100.00%	100.00%	100.00%
Valuation allowance		$ 5,107	$ 668
Gross unrecognized tax benefits		6,727	6,505	$ 5,367	$ 4,902
Unrecognized tax benefits that, if recognized, would affect the effective tax rate		5,636	5,461
Estimated accrued interest and penalties resulting from unrecognized tax benefits		1,211	$ 982
Foreign subsidiaries earnings		114,000
America Rescue Plan Act of 2021
Income Taxes [Line Items]
Number Of Additional Most Highly Compensated Individuals | Employee	5
Annual Cap On Compensation	$ 1,000
State and other
Income Taxes [Line Items]
Net operating loss carry forwards		$ 15,595
State and other | Maximum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date		2041
State and other | Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date		2026
Foreign
Income Taxes [Line Items]
Net operating loss carry forwards		$ 14,977
Foreign | Maximum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date		2041
Foreign | Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date		2036
Federal
Income Taxes [Line Items]
Net operating loss carry forwards		$ 0

Components of Income Tax Expens

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
U.S. Federal	$ 91,162	$ 58,895	$ 48,359
State	20,703	12,909	9,362
Foreign	10,993	4,779	8,078
Current	122,858	76,583	65,799
Deferred:
U.S. Federal	6,434	218	2,603
State	1,374	21	446
Foreign	(1,869)	(199)	(1,771)
Deferred	5,939	40	1,278
Income tax expense	$ 128,797	$ 76,623	$ 67,077

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Effective Income Tax Rate [Line Items]
U.S. federal statutory rate	21.00%	21.00%	21.00%
State income taxes, net of federal benefit and other	3.50%	3.30%	2.80%
Excess tax benefits from share-based compensation	(1.70%)	(2.10%)	(1.80%)
Tax effects on foreign income	0.40%	0.30%	0.50%
GILTI	0.00%	0.00%	(0.10%)
FDII	(0.10%)	0.00%	0.00%
Change in valuation allowance	0.80%	0.00%	0.00%
Tax credits and other	(0.50%)	(0.50%)	(1.20%)
Effective income tax rate attributable to Watsco, Inc.	23.40%	22.00%	21.20%
Taxes attributable to non-controlling interest	(2.90%)	(2.80%)	(2.70%)
Effective income tax rate	20.50%	19.20%	18.50%

Significant Components of Net D

Significant Components of Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2021	Dec. 31, 2020
Components of Net Deferred Tax Liabilities [Line Items]
Share-based compensation		$ 30,854	$ 27,223
Capitalized inventory costs and inventory adjustments		3,449	3,189
Allowance for doubtful accounts		1,328	949
Self-insurance reserves		1,027	518
Other		6,081	5,090
Net operating loss carryforwards		3,959	2,930
Total deferred tax assets, gross		46,698	39,899
Valuation allowance		(5,107)	(668)
Total deferred tax assets		41,591	39,231
Deductible goodwill		(82,704)	(78,288)
Depreciation		(18,744)	(16,441)
Other		(8,794)	(7,050)
Total deferred tax liabilities		(110,242)	(101,779)
Net deferred tax liabilities	[1]	$ (68,651)	$ (62,548)
[1]	Net deferred tax liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.

Changes in Gross Unrecognized T

Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Beginning balance	$ 6,505	$ 5,367	$ 4,902
Additions based on tax positions related to the current year	1,143	1,911	1,027
Reductions due to lapse of applicable statute of limitations	(921)	(773)	(562)
Ending balance	$ 6,727	$ 6,505	$ 5,367

Share-Based Compensation and _3

Share-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)Age$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding | shares	602,488	585,116
Income tax expense	$ 128,797	$ 76,623	$ 67,077
Shares withheld as payment for tax withholdings related to share based compensation, market value	1,092	2,299	1,528
Common stock contribution to 401(k) plan	$ 5,154	$ 4,543	$ 4,274
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that may be granted | shares	1,500,000
Shares reserved for future grant | shares	450,945
Number of days of service required for an employee to purchase shares	90 days
Discount to employees to purchase shares	5.00%
Shares purchased under ESPP | shares	3,501	5,121	5,676
Average price of the shares purchased by employees | $ / shares	$ 239.11	$ 171.89	$ 145.09
Additional shares issued resulting from cash dividends reinvested in common stock | shares	2,962	3,964	5,087
Net proceeds from shares purchased under ESPP	$ 1,676	$ 1,649	$ 1,638
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding | shares	498,138
2014 Plan | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2014 Plan | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
401(k) Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock contribution to 401(k) Plan, shares | shares	22,752	25,216	30,715
Common stock contribution to 401(k) plan	$ 5,154	$ 4,543	$ 4,274
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price that share-based compensation awards are granted at	100.00%
Aggregate shares of common stock that may be granted | shares	2,500,000
Shares reserved for future grant | shares	2,381,332
Contractual term of stock option awards	5 years
2021 Plan | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2021 Plan | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
2021 Plan | Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded under plan | shares	125,995
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of non-vested (restricted) stock | $ / shares	$ 254.73	$ 193.89	$ 151.58
Fair value of non-vested stock that vested	$ 3,646	$ 7,354	$ 4,931
Unrecognized share-based compensation expense	$ 180,661
Vesting period related to unrecognized share-based compensation expense	11 years 9 months 18 days
Non-Vested Restricted Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 55,000
Vesting period related to unrecognized share-based compensation expense	7 years
Vesting period related to shares obligated to issue in connection with incentive compensation agreement | shares	32,592
Non-Vested Restricted Stock | Chief Executive Officer | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 1,000
Vesting period related to unrecognized share-based compensation expense	1 year
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	82
Non-Vested Restricted Stock | Chief Executive Officer | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 26,000
Vesting period related to unrecognized share-based compensation expense	5 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	86
Non-Vested Restricted Stock | Chief Executive Officer | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 27,000
Vesting period related to unrecognized share-based compensation expense	7 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	88
Non-Vested Restricted Stock | Chief Executive Officer | Share Based Compensation Award Tranche Four Member [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 1,000
Vesting period related to unrecognized share-based compensation expense	8 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	89
Non-Vested Restricted Stock | President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 31,000
Vesting period related to unrecognized share-based compensation expense	22 years
Vesting period related to shares obligated to issue in connection with incentive compensation agreement | shares	31,668
Non-Vested Restricted Stock | President | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 30,000
Vesting period related to unrecognized share-based compensation expense	22 years
Age of president when non vested restricted shares vests | Age	62
Non-Vested Restricted Stock | President | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 1,000
Vesting period related to unrecognized share-based compensation expense	24 years
Age of president when non vested restricted shares vests | Age	64
Non-Vested Restricted Stock | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of employee when non-vested (restricted) stock vests | Age	62
Non-Vested Restricted Stock | Various Key Leaders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to shares obligated to issue in connection with incentive compensation agreement | shares	18,540
Non-Vested Restricted Stock | Various Key Leaders | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to unrecognized share-based compensation expense	5 years
Non-Vested Restricted Stock | Various Key Leaders | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to unrecognized share-based compensation expense	14 years
Non-Vested Restricted Stock | Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares | shares		11,693	9,824
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 2,299	$ 1,518
Non-Vested Restricted Stock | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares | shares	3,858
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 1,078
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax expense	3,595	1,586	626
Total intrinsic value of stock options exercised	16,903	8,753	4,153
Cash received from Common stock issued	19,338	17,608	11,703
Unrecognized share-based compensation expense	$ 5,770
Vesting period related to unrecognized share-based compensation expense	1 year 10 months 24 days
Fair value of stock options vested	$ 2,621	$ 2,177	$ 2,055
Stock Options | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares | shares	4,040	11,455	799
Shares withheld as payment for tax withholdings related to share based compensation, market value	$ 1,179	$ 2,343	$ 134

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding beginning balance | shares	585,116
Options, Granted | shares	163,550
Options, Exercised | shares	(130,178)
Options, Forfeited | shares	(15,500)
Options, Expired | shares	(500)
Options, Outstanding ending balance | shares	602,488
Options, Exercisable | shares	105,665
Weighted-Average Exercise Price, Outstanding beginning balance | $ / shares	$ 174.83
Weighted-Average Exercise Price, Granted | $ / shares	276.41
Weighted-Average Exercise Price, Exercised | $ / shares	157.50
Weighted-Average Exercise Price, Forfeited | $ / shares	208.77
Weighted-Average Exercise Price, Expired | $ / shares	146.09
Weighted-Average Exercise Price, Outstanding ending balance | $ / shares	205.30
Weighted-Average Exercise Price, Exercisable | $ / shares	$ 168.77
Weighted-Average Remaining Contractual Term (in years), Outstanding	3 years 1 month 9 days
Weighted-Average Remaining Contractual Term (in years), Exercisable	1 year 11 months 12 days
Aggregate Intrinsic Value, Outstanding | $	$ 64,816
Aggregate Intrinsic Value, Exercisable | $	$ 15,227

Summary of Non-Vested Restricte

Summary of Non-Vested Restricted Stock Activity (Detail) - Non-Vested Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested beginning balance	3,335,107
Shares, Granted	194,643
Shares, Vested	(13,000)
Shares, Forfeited	(57,089)
Shares, Non-vested ending balance	3,459,661	3,335,107
Weighted-Average Grant Date Fair Value, Non-vested beginning balance	$ 75
Weighted-Average Grant Date Fair Value, Granted	254.73	$ 193.89	$ 151.58
Weighted-Average Grant Date Fair Value, Vested	138.97
Weighted-Average Grant Date Fair Value, Forfeited	131.31
Weighted-Average Grant Date Fair Value, Non-vested ending balance	$ 83.94	$ 75

Weighted-Average Assumptions Us

Weighted-Average Assumptions Used for Stock Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	4 years 3 months	4 years 3 months	4 years 3 months
Risk-free interest rate	0.79%	0.26%	1.64%
Expected volatility	21.85%	20.89%	18.01%
Expected dividend yield	2.97%	3.69%	3.99%
Grant date fair value	$ 34.79	$ 20.76	$ 14.81

Share-Based Compensation Expens

Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 25,365	$ 22,129	$ 17,032
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	2,908	2,447	2,440
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 22,457	$ 19,682	$ 14,592

Purchase of Remaining Ownersh_2

Purchase of Remaining Ownership Interest in Joint Venture - Additional Information (Detail) - Homans Associates II LLC [Member] $ in Thousands	May 31, 2019USD ($)Location
Business Acquisition [Line Items]
Additional ownership interest acquired in subsidiary	20.00%
Percentage of ownership interest	100.00%
Cash consideration paid to obtain additional ownership | $	$ 32,400
Number of locations in which the company operates | Location	25

Investment in Unconsolidated _2

Investment in Unconsolidated Entity - Additional Information (Detail) $ in Thousands	Apr. 22, 2019USD ($)	Jun. 29, 2018USD ($)	Jun. 21, 2017USD ($)Locationboard-member	Dec. 31, 2021USD ($)	Dec. 31, 2019USD ($)
Schedule of Equity Method Investments [Line Items]
Investment in unconsolidated entity				$ 0	$ 4,940
Proceeds from non-controlling interest for investment in unconsolidated entity				$ 0	$ 988
Carrier Enterprise I
Schedule of Equity Method Investments [Line Items]
Ownership percentage by parent			80.00%
Ownership percentage, by non-controlling owners			20.00%
Russell Sigler Inc
Schedule of Equity Method Investments [Line Items]
Total ownership interest	38.10%	36.30%	34.90%
Investment in unconsolidated entity	$ 4,940	$ 3,760	$ 63,600
Contribution to investment in unconsolidated entity by controlling interest	3,952	3,008	50,880
Proceeds from non-controlling interest for investment in unconsolidated entity	$ 988	$ 752	$ 12,720
Ownership percentage needed for right to purchase up to 100%			85.00%
Total number of board members | board-member			6
Number of board members that can be appointed based on ownership | board-member			2
Equity method investment, additional ownership interest acquired	1.80%	1.40%
Russell Sigler Inc | Western United States
Schedule of Equity Method Investments [Line Items]
Number of locations | Location			34

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Apr. 09, 2021	Dec. 31, 2020	Aug. 01, 2019
Business Acquisition [Line Items]
Operating lease ROU assets	$ 268,528		$ 209,169
Peirce Phelps PPI [Member]
Business Acquisition [Line Items]
Cash and cash equivalents				$ 4,299
Accounts receivable				30,719
Inventories				45,491
Other current assets				135
Property and equipment				2,544
Operating lease ROU assets				19,072
Goodwill				9,884
Intangibles				19,000
Other assets				299
Accounts payable				(11,079)
Accrued expenses and other current liabilities				(13,038)
Operating lease liabilities, net of current portion				(14,100)
Total				$ 93,226
Temperature Equipment Corporation [Member]
Business Acquisition [Line Items]
Accounts receivable		$ 33,315
Inventories		71,325
Other current assets		962
Property and equipment		2,590
Operating lease ROU assets		53,829
Goodwill		18,724
Intangibles		19,900
Accounts payable		(25,393)
Accrued expenses and other current liabilities		(20,509)
Operating lease liabilities, net of current portion		(48,046)
Total		$ 106,697

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands	Aug. 20, 2021USD ($)Ageshares	May 07, 2021USD ($)Locationshares	Apr. 09, 2021USD ($)Location	Nov. 26, 2019USD ($)shares	Aug. 01, 2019USD ($)Locationshares	Apr. 02, 2019USD ($)shares	Dec. 31, 2021USD ($)	Dec. 31, 2019USD ($)
TEC Distribution LLC [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 84,160
Carrier [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 21,040
N&S Supply of Fishkill, Inc
Business Acquisition [Line Items]
Cash consideration				$ 12,000
Stock issued for acquisition | shares				22,435
Fair value of equity shares issued				$ 3,871
Goodwill and intangibles acquired				4,672
Intangible assets acquired				$ 1,540
Number of years goodwill is deductible for tax purposes				15 years
N&S Supply of Fishkill, Inc | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired				$ 770
Amortization period				18 years
N&S Supply of Fishkill, Inc | Trade Names And Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired				$ 770
Peirce Phelps PPI [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location					19
Purchase price less certain average revolving indebtedness					$ 85,000
Cash consideration					$ 10,000
Stock issued for acquisition | shares					372,543
Fair value of equity shares issued					$ 58,344
Proceeds from non-controlling interest for Business Acquisition					17,000		$ 0	$ 17,000
Goodwill and intangibles acquired					28,884
Intangible assets acquired					$ 19,000
Number of years goodwill is deductible for tax purposes					15 years
Peirce Phelps PPI [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired					$ 5,500
Amortization period					18 years
Peirce Phelps PPI [Member] | Trade Names And Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired					$ 13,500
Dunphey Associates Supply Co [Member]
Business Acquisition [Line Items]
Cash consideration						$ 16,758
Stock issued for acquisition | shares						50,952
Fair value of equity shares issued						$ 6,891
Goodwill and intangibles acquired						8,974
Intangible assets acquired						$ 5,300
Number of years goodwill is deductible for tax purposes						15 years
Dunphey Associates Supply Co [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired						$ 2,800
Amortization period						15 years
Dunphey Associates Supply Co [Member] | Trade Names And Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired						$ 2,500
Makdad Industrial Supply Co [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Age	6
Cash consideration	$ 3,117
Stock issued for acquisition | shares	3,627
Fair value of equity shares issued	$ 997
Goodwill and intangibles acquired	$ 981
Number of years goodwill is deductible for tax purposes	15 years
Cash acquired	$ 204
Acme Refrigeration LLC [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location		18
Purchase price less certain average revolving indebtedness		$ 22,855
Cash consideration		$ 18,051
Stock issued for acquisition | shares		8,492
Fair value of equity shares issued		$ 2,551
Goodwill and intangibles acquired		3,710
Intangible assets acquired		$ 2,124
Number of years goodwill is deductible for tax purposes		15 years
Cash acquired		$ 1,340
Repayment of indebtedness		3,141
Acme Refrigeration LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 616
Amortization period		18 years
Acme Refrigeration LLC [Member] | Trade Names And Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 1,508
Temperature Equipment Corporation [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location			32
Goodwill and intangibles acquired			$ 38,624
Intangible assets acquired			$ 19,900
Number of years goodwill is deductible for tax purposes			15 years
Business Combination, Consideration Transferred			$ 105,200
Repayments of Debt			$ 1,497
Temperature Equipment Corporation [Member] | TEC Distribution LLC [Member]
Business Acquisition [Line Items]
Percentage of Voting Interests Acquired			80.00%
Temperature Equipment Corporation [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired			$ 4,200
Amortization period			18 years
Temperature Equipment Corporation [Member] | Trade Names And Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired			$ 15,700
Temperature Equipment Corporation [Member] | Carrier Enterprise I | TEC Distribution LLC [Member]
Business Acquisition [Line Items]
Percentage of Voting Interests Acquired			20.00%

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2019
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 412,486	$ 411,217
Acquired goodwill	21,291	410
Foreign currency translation adjustment	242	859
Goodwill, Ending Balance	$ 434,019	$ 412,486

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill And Intangible Assets [Line Items]
Amortization expense related to finite lived intangible assets	$ 5,561	$ 5,945	$ 5,704

Intangible Assets (Detail)

Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Intangible Assets [Line Items]
Indefinite lived intangible assets—Trade names, trademarks and distribution rights	$ 158,389	$ 140,867
Finite lived intangible assets:
Accumulated amortization	(60,890)	(55,329)
Finite lived intangible assets, net	28,507	29,062
Intangible assets, net	186,896	169,929
Customer Relationships
Finite lived intangible assets:
Finite lived intangible assets	$ 86,526	81,527
Customer Relationships | Maximum
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	18 years
Customer Relationships | Minimum
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Trade Name
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	10 years
Finite lived intangible assets:
Finite lived intangible assets	$ 1,150	1,150
Patented And Unpatented Technology [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Finite lived intangible assets:
Finite lived intangible assets	$ 1,721	$ 1,714

Amortization Expense Related to

Amortization Expense Related to Finite Lived Intangible Assets (Detail) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 4,500
2023	3,900
2024	3,700
2025	3,700
2026	$ 3,500

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	Aug. 06, 2021	Aug. 23, 2018	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 1999
Stockholders Equity Note [Line Items]
Preferred stock outstanding			0	0
Number of shares authorized to be repurchased						7,500,000
Treasury stock, shares repurchased			0	0	0
Cost of repurchased shares			$ 114,425	$ 114,425	$ 114,425
Remaining number of shares authorized to be repurchased			1,129,087
Common stock issued into escrow		23,230
Robert W. Baird & Co. Inc [Member] | ATM Program [Member]
Stockholders Equity Note [Line Items]
Maximum aggregate offering amount of stock	$ 300,000
Number of shares sold under ATM			0
Class B Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			ten
Treasury stock, shares repurchased			48,263	48,263	48,263
Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			one
Percentage of Board entitled to elect			25.00%
Treasury stock, shares repurchased			6,322,650	6,322,650	6,322,650

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Standby Letters of Credit
Financial Instrument [Line Items]
Fair value of contingent liability	$ 150	$ 1,075
Performance Bonds
Financial Instrument [Line Items]
Fair value of contingent liability	$ 7,900	$ 11,400

Impact from Foreign Exchange De

Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	$ 97	$ 1,205	$ (2,001)
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	219	(418)	$ (352)
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	97	1,205
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	$ 305	$ (574)

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	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives
Derivative instruments, liabilities derivatives	5	$ 101
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives
Derivative instruments, liabilities derivatives	0	91
Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives
Derivative instruments, liabilities derivatives	$ 5	$ 10

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
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 (loss) to be reclassified into earnings within the next 12 months	$ 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	$ 5,700,000
Contract expiring terms	2022-01
Loss from foreign currency forward and option contracts not designated as hedging instruments	$ 237,000	$ 490,000	$ 540,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Fair Value Disclosures [Abstract]
Realized gain on sale of equity securities	$ 3,815

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Other assets
Assets:
Equity securities	$ 1,790	$ 6,065
Private equities	1,000
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	5	101
Fair Value Measurements, Level 1 | Other assets
Assets:
Equity securities	1,790	6,065
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	5	$ 101
Fair Value Measurements, Level 3 | Other assets
Assets:
Private equities	$ 1,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 7,253	$ 5,404
Maximum exposure to loss related to involvement with variable interest entity	6,200
Non-cancelable purchase obligations for goods	45,000
Variable interest entity cash deposit to cover contingency	2,600
Carrier and Its Affiliates [Member]
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 31,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Greenberg Traurig, P.A. | Customary Fees for Legal Services
Related Party Transaction [Line Items]
Payment for related party transaction	$ 225	$ 156	$ 187
Amount payable to related party	34	8
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	90,000	81,000
Revenues from sales to Carrier and its affiliates	$ 108,000	$ 103,000	$ 91,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	61.00%	63.00%	62.00%

Revenues and Long-Lived Assets

Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Geographic Area Information [Line Items]
Revenues	$ 6,280,192	$ 5,054,928	$ 4,770,362
Long-Lived Assets	1,124,461	999,902
United States
Geographic Area Information [Line Items]
Revenues	5,636,929	4,535,262	4,184,206
Long-Lived Assets	931,170	799,665
Canada
Geographic Area Information [Line Items]
Revenues	386,780	301,727	294,040
Long-Lived Assets	175,864	180,518
Latin America and Caribbean
Geographic Area Information [Line Items]
Revenues	256,483	217,939	$ 292,116
Long-Lived Assets	$ 17,427	$ 19,719

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flow Supplemental Disclosures [Line Items]
Interest paid	$ 913	$ 1,844	$ 4,341
Income taxes net of refunds	124,984	70,889	70,095
N&S Supply of Fishkill, Inc
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0	$ (161)	4,032
Peirce-Phelps, Inc.
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0		58,344
Dunphey & Associates Supply Co., Inc.
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0		6,891
Acme Refrigeration of Baton Rouge LLC
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	2,551		0
Makdad Industrial Supply Co., Inc
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	$ 997		$ 0

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - $ / shares	Apr. 01, 2022	Feb. 08, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Cash dividend, common stock and Class B common stock previous rate			$ 1.95
Subsequent Event
Subsequent Event [Line Items]
Cash dividend, common stock and Class B common stock current rate rate		$ 2.20
Effective date of increase in quarterly cash dividend rate	2022-04