Watsco (WSO) 10-Q 3 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Registrant Name	WATSCO, INC.
Entity Central Index Key	0000105016
Entity File Number	1-5581
Entity Incorporation, State or Country Code	FL
Document Quarterly Report	true
Document Transition Report	false
Entity Tax Identification Number	59-0778222
Entity Address, City or Town	Miami
Entity Address, Postal Zip Code	33133
Entity Address, Address Line One	2665 South Bayshore Drive
Entity Address, Address Line Two	Suite 901
Entity Address, State or Province	FL
City Area Code	305
Local Phone Number	714-4100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	WSO
Security Exchange Name	NYSE
Title of 12(b) Security	Common stock, $0.50 par value
Entity Common Stock, Shares Outstanding		33,263,057
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		5,473,122

Condensed Consolidated Unaudite

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues	$ 2,035,796	$ 1,782,569	$ 5,693,121	$ 4,768,327
Cost of sales	1,484,948	1,299,905	4,096,382	3,512,901
Gross profit	550,848	482,664	1,596,739	1,255,426
Selling, general and administrative expenses	321,522	281,922	919,629	766,231
Other income	6,927	6,057	17,289	16,267
Operating income	236,253	206,799	694,399	505,462
Interest expense, net	483	221	2,151	757
Income before income taxes	235,770	206,578	692,248	504,705
Income taxes	49,600	41,734	145,682	101,601
Net income	186,170	164,844	546,566	403,104
Less: net income attributable to non-controlling interest	28,529	23,979	83,070	63,045
Net income attributable to Watsco, Inc.	$ 157,641	$ 140,865	$ 463,496	$ 340,059
Earnings per share for Common and Class B common stock:
Basic	$ 4.04	$ 3.64	$ 11.9	$ 8.8
Diluted	$ 4.03	$ 3.62	$ 11.86	$ 8.75

Condensed Consolidated Unaudi_2

Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income	$ 186,170	$ 164,844	$ 546,566	$ 403,104
Other comprehensive loss, net of tax
Foreign currency translation adjustment	(19,091)	(8,219)	(24,091)	(746)
Unrealized gain on cash flow hedging instruments	0	0	0	70
Reclassification of loss on cash flow hedging instruments into earnings	0	0	0	221
Other comprehensive loss	(19,091)	(8,219)	(24,091)	(455)
Comprehensive income	167,079	156,625	522,475	402,649
Less: comprehensive income attributable to non-controlling interest	22,040	21,114	74,911	62,821
Comprehensive income attributable to Watsco, Inc.	$ 145,039	$ 135,511	$ 447,564	$ 339,828

Condensed Consolidated Unaudi_3

Condensed Consolidated Unaudited Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 130,228	$ 118,268
Accounts receivable, net	859,581	698,456
Inventories, net	1,385,191	1,115,469
Other current assets	34,876	29,207
Total current assets	2,409,876	1,961,400
Property and equipment, net	121,678	111,019
Operating lease right-of-use assets	312,397	268,528
Goodwill	430,231	434,019
Intangible assets, net	174,978	186,896
Investment in unconsolidated entity	127,420	114,808
Other assets	8,007	9,191
Total assets	3,584,587	3,085,861
Current liabilities:
Current portion of long-term obligations	89,238	84,501
Accounts payable	474,268	364,185
Accrued expenses and other current liabilities	376,016	278,036
Total current liabilities	939,522	726,722
Long-term obligations:
Borrowings under revolving credit agreement	8,800	89,000
Operating lease liabilities, net of current portion	227,564	187,024
Finance lease liabilities, net of current portion	10,764	9,189
Total long-term obligations	247,128	285,213
Deferred income taxes and other liabilities	81,784	76,511
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value	0	0
Paid-in capital	1,047,317	1,003,932
Accumulated other comprehensive loss, net of tax	(50,108)	(34,176)
Retained earnings	977,050	760,796
Treasury stock, at cost	(87,440)	(87,440)
Total Watsco, Inc. shareholders' equity	1,908,775	1,664,948
Non-controlling interest	407,378	332,467
Total shareholders' equity	2,316,153	1,997,415
Total liabilities and shareholders' equity	3,584,587	3,085,861
Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	19,039	18,941
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,917	$ 2,895

Condensed Consolidated Unaudi_4

Condensed Consolidated Unaudited Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value	$ 0.5	$ 0.5
Common Stock
Common stock, par value	0.5	0.5
Class B Common Stock
Common stock, par value	$ 0.5	$ 0.5

Condensed Consolidated Unaudi_5

Condensed Consolidated Unaudited Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock, Class B Common Stock and Preferred Stock	Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest
Beginning balance at Dec. 31, 2020	$ 1,779,761	$ 21,697	$ 950,915	$ (34,867)	$ 636,373	$ (87,440)	$ 293,083
Beginning balance (in shares) at Dec. 31, 2020		38,521,694
Net income	66,127				55,092		11,035
Other comprehensive income (loss)	3,776			2,474			1,302
Issuances of non-vested restricted shares of common stock		$ 61	(61)
Issuances of non-vested restricted shares of common stock (in shares)		121,934
Forfeitures of non-vested restricted shares of common stock		$ (21)	21
Forfeitures of non-vested restricted shares of common stock (in shares)		(43,000)
Common stock contribution to 401(k) plan	5,154	$ 11	5,143
Common stock contribution to 401(k) plan (in shares)		22,752
Stock issuances from exercise of stock options and employee stock purchase plan	3,874	$ 12	3,862
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		24,735
Share-based compensation	6,656		6,656
Cash dividends declared and paid on Common and Class B common stock	(68,521)				(68,521)
Ending balance at Mar. 31, 2021	1,796,827	$ 21,760	966,536	(32,393)	622,944	(87,440)	305,420
Ending balance (in shares) at Mar. 31, 2021		38,648,115
Beginning balance at Dec. 31, 2020	1,779,761	$ 21,697	950,915	(34,867)	636,373	(87,440)	293,083
Beginning balance (in shares) at Dec. 31, 2020		38,521,694
Net income	403,104
Other comprehensive income (loss)	(455)
Ending balance at Sep. 30, 2021	2,021,525	$ 21,817	988,310	(35,098)	756,992	(87,440)	376,944
Ending balance (in shares) at Sep. 30, 2021		38,761,863
Beginning balance at Mar. 31, 2021	1,796,827	$ 21,760	966,536	(32,393)	622,944	(87,440)	305,420
Beginning balance (in shares) at Mar. 31, 2021		38,648,115
Net income	172,133				144,102		28,031
Other comprehensive income (loss)	3,988			2,649			1,339
Issuances of non-vested restricted shares of common stock		$ 22	(22)
Issuances of non-vested restricted shares of common stock (in shares)		44,881
Forfeitures of non-vested restricted shares of common stock		$ (4)	4
Forfeitures of non-vested restricted shares of common stock (in shares)		(7,589)
Stock issuances from exercise of stock options and employee stock purchase plan	5,676	$ 18	5,658
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		34,311
Retirement of common stock	(863)	$ (1)	(862)
Retirement of common stock (in shares)		(2,965)
Share-based compensation	5,569		5,569
Common stock issued for Acme Refrigeration of Baton Rouge LLC	2,551	$ 4	2,547
Common stock issued for Acme Refrigeration of Baton Rouge LLC (in shares)		8,492
Investment in TEC Distribution LLC	21,040						21,040
Cash dividends declared and paid on Common and Class B common stock	(75,388)				(75,388)
Ending balance at Jun. 30, 2021	1,931,533	$ 21,799	979,430	(29,744)	691,658	(87,440)	355,830
Ending balance (in shares) at Jun. 30, 2021		38,725,245
Net income	164,844				140,865		23,979
Other comprehensive income (loss)	(8,219)			(5,354)			(2,865)
Issuances of non-vested restricted shares of common stock		$ 11	(11)
Issuances of non-vested restricted shares of common stock (in shares)		21,828
Stock issuances from exercise of stock options and employee stock purchase plan	2,487	$ 7	2,480
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		14,413
Retirement of common stock	(894)	$ (2)	(892)
Retirement of common stock (in shares)		(3,250)
Share-based compensation	6,308		6,308
Common stock issued for Acme Refrigeration of Baton Rouge LLC	997	$ 2	995
Common stock issued for Acme Refrigeration of Baton Rouge LLC (in shares)		3,627
Cash dividends declared and paid on Common and Class B common stock	(75,531)				(75,531)
Ending balance at Sep. 30, 2021	2,021,525	$ 21,817	988,310	(35,098)	756,992	(87,440)	376,944
Ending balance (in shares) at Sep. 30, 2021		38,761,863
Beginning balance at Dec. 31, 2021	1,997,415	$ 21,836	1,003,932	(34,176)	760,796	(87,440)	332,467
Beginning balance (in shares) at Dec. 31, 2021		38,799,632
Net income	134,890				113,298		21,592
Other comprehensive income (loss)	4,381			2,935			1,446
Issuances of non-vested restricted shares of common stock		$ 53	(53)
Issuances of non-vested restricted shares of common stock (in shares)		105,882
Common stock contribution to 401(k) plan	6,737	$ 11	6,726
Common stock contribution to 401(k) plan (in shares)		21,532
Stock issuances from exercise of stock options and employee stock purchase plan	4,420	$ 12	4,408
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		24,850
Share-based compensation	8,667		8,667
Cash dividends declared and paid on Common and Class B common stock	(75,795)				(75,795)
Ending balance at Mar. 31, 2022	2,080,715	$ 21,912	1,023,680	(31,241)	798,299	(87,440)	355,505
Ending balance (in shares) at Mar. 31, 2022		38,951,896
Beginning balance at Dec. 31, 2021	1,997,415	$ 21,836	1,003,932	(34,176)	760,796	(87,440)	332,467
Beginning balance (in shares) at Dec. 31, 2021		38,799,632
Net income	546,566
Other comprehensive income (loss)	(24,091)
Ending balance at Sep. 30, 2022	2,316,153	$ 21,956	1,047,317	(50,108)	977,050	(87,440)	407,378
Ending balance (in shares) at Sep. 30, 2022		39,039,334
Beginning balance at Mar. 31, 2022	2,080,715	$ 21,912	1,023,680	(31,241)	798,299	(87,440)	355,505
Beginning balance (in shares) at Mar. 31, 2022		38,951,896
Net income	225,506				192,557		32,949
Other comprehensive income (loss)	(9,381)			(6,265)			(3,116)
Issuances of non-vested restricted shares of common stock		$ 11	(11)
Issuances of non-vested restricted shares of common stock (in shares)		21,177
Forfeitures of non-vested restricted shares of common stock		$ (5)	5
Forfeitures of non-vested restricted shares of common stock (in shares)		(10,000)
Common stock contribution to 401(k) plan	9	$ 0	9
Common stock contribution to 401(k) plan (in shares)		28
Stock issuances from exercise of stock options and employee stock purchase plan	3,807	$ 11	3,796
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		21,939
Retirement of common stock	(2,179)	$ (4)	(2,175)
Retirement of common stock (in shares)		(8,181)
Share-based compensation	6,987		6,987
Cash dividends declared and paid on Common and Class B common stock	(85,689)				(85,689)
Ending balance at Jun. 30, 2022	2,219,775	$ 21,925	1,032,291	(37,506)	905,167	(87,440)	385,338
Ending balance (in shares) at Jun. 30, 2022		38,976,859
Net income	186,170				157,641		28,529
Other comprehensive income (loss)	(19,091)			(12,602)			(6,489)
Issuances of non-vested restricted shares of common stock		$ 7	(7)
Issuances of non-vested restricted shares of common stock (in shares)		13,000
Stock issuances from exercise of stock options and employee stock purchase plan	8,664	$ 25	8,639
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		51,407
Retirement of common stock	(549)	$ (1)	(548)
Retirement of common stock (in shares)		(1,932)
Share-based compensation	6,942		6,942
Cash dividends declared and paid on Common and Class B common stock	(85,758)				(85,758)
Ending balance at Sep. 30, 2022	$ 2,316,153	$ 21,956	$ 1,047,317	$ (50,108)	$ 977,050	$ (87,440)	$ 407,378
Ending balance (in shares) at Sep. 30, 2022		39,039,334

Condensed Consolidated Unaudi_6

Condensed Consolidated Unaudited Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Cash dividends declared and paid, common stock	$ 2.2	$ 2.2	$ 1.95	$ 1.95	$ 1.95	$ 1.775

Condensed Consolidated Unaudi_7

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 546,566	$ 403,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,440	20,874
Share-based compensation	22,017	18,659
Non-cash contribution to 401(k) plan	6,746	5,154
Deferred income tax Provision	6,311	3,966
Other income from investment in unconsolidated entity	(17,289)	(16,267)
Other, net	5,672	1,969
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(170,746)	(198,011)
Inventories, net	(276,653)	(170,662)
Accounts payable and other liabilities	212,829	263,752
Other, net	(13)	(12,866)
Net cash provided by operating activities	358,880	319,672
Cash flows from investing activities:
Capital expenditures	(26,526)	(16,770)
Business acquisitions, net of cash acquired	(47)	(129,462)
Proceeds from sale of equity securities	0	5,993
Proceeds from sale of property and equipment	167	108
Net cash used in investing activities	(26,406)	(140,131)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(247,242)	(219,440)
Net (repayments) proceeds under revolving credit agreement	(80,200)	1,724
Repurchases of common stock to satisfy employee withholding tax obligations	(2,471)	(894)
Net repayments of finance lease liabilities	(2,206)	(1,482)
Payment of fees related to revolving credit agreement	0	(22)
Proceeds from non-controlling interest for investment in TEC Distribution LLC	0	21,040
Net proceeds from issuances of common stock	16,635	11,173
Net cash used in financing activities	(315,484)	(187,901)
Effect of foreign exchange rate changes on cash and cash equivalents	(5,030)	(506)
Net increase (decrease) in cash and cash equivalents	11,960	(8,866)
Cash and cash equivalents at beginning of period	118,268	146,067
Cash and cash equivalents at end of period	$ 130,228	137,201
Acme Refrigeration of Baton Rouge LLC [Member]
Supplemental cash flow information:
Common stock issued		2,551
Makdad Industrial Supply Co Inc [Member]
Supplemental cash flow information:
Common stock issued		$ 997

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2022
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us,” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2022 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2021 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest, and Carrier has a 20% non-controlling The results of operations for the quarter and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, profitability can be impacted favorably or unfavorably based on weather patterns, particularly during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the first and fourth quarters. Demand related to the new construction sectors throughout most of the markets we serve tends to be fairly evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions. Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in investment in unconsolidated entity in our condensed consolidated unaudited balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our condensed consolidated unaudited statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill. Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, net realizable value adjustments to inventories, income taxes, reserves related to loss contingencies and the valuation of goodwill, indefinite-lived intangible assets and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. Impact of the COVID-19 Since COVID-19 COVID-19

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2022
REVENUES	2. REVENUES Disaggregation of Revenues The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Primary Geographical Regions: United States $ 1,851,071 $ 1,615,319 $ 5,156,846 $ 4,291,838 Canada 100,567 102,491 303,149 290,863 Latin America and the Caribbean 84,158 64,759 233,126 185,626 $ 2,035,796 $ 1,782,569 $ 5,693,121 $ 4,768,327 Major Product Lines: HVAC equipment 69 % 69 % 69 % 69 % Other HVAC products 27 % 27 % 27 % 27 % Commercial refrigeration products 4 % 4 % 4 % 4 % 100 % 100 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2022
EARNINGS PER SHARE	3. EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 157,641 $ 140,865 $ 463,496 $ 340,059 Less: distributed and undistributed earnings allocated to non-vested 14,387 12,590 42,293 30,182 Earnings allocated to Watsco, Inc. shareholders $ 143,254 $ 128,275 $ 421,203 $ 309,877 Weighted-average common shares outstanding - Basic 35,450,277 35,260,126 35,401,179 35,222,865 Basic earnings per share for Common and Class B common stock $ 4.04 $ 3.64 $ 11.90 $ 8.80 Allocation of earnings for Basic: Common stock $ 132,846 $ 118,905 $ 390,557 $ 287,217 Class B common stock 10,408 9,370 30,646 22,660 $ 143,254 $ 128,275 $ 421,203 $ 309,877 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 157,641 $ 140,865 $ 463,496 $ 340,059 Less: distributed and undistributed earnings allocated to non-vested 14,368 12,563 42,228 30,132 Earnings allocated to Watsco, Inc. shareholders $ 143,273 $ 128,302 $ 421,268 $ 309,927 Weighted-average common shares outstanding - Basic 35,450,277 35,260,126 35,401,179 35,222,865 Effect of dilutive stock options 112,008 181,852 128,309 177,389 Weighted-average common shares outstanding - Diluted 35,562,285 35,441,978 35,529,488 35,400,254 Diluted earnings per share for Common and Class B common stock $ 4.03 $ 3.62 $ 11.86 $ 8.75 Anti-dilutive stock options not included above 208,610 63,959 181,115 27,513 Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At September 30, 2022 and 2021, our outstanding Class B common stock was convertible into 2,575,725 and 2,575,698 shares of our Common stock, respectively.

OTHER COMPREHENSIVE LOSS

OTHER COMPREHENSIVE LOSS	9 Months Ended
	Sep. 30, 2022
OTHER COMPREHENSIVE LOSS	4. OTHER COMPREHENSIVE LOSS Other comprehensive loss consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as their functional currency and changes in the unrealized gains on cash flow hedging instruments. The tax effects allocated to each component of other comprehensive loss were as follows: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency translation adjustment $ (19,091 ) $ (8,219 ) $ (24,091 ) $ (746 ) Unrealized gain on cash flow hedging instruments — — — 97 Income tax expense — — — (27 ) Unrealized gain on cash flow hedging instruments, net of tax — — — 70 Reclassification of loss on cash flow hedging instruments into earnings — — — 305 Income tax benefit — — — (84 ) Reclassification of loss on cash flow hedging instruments into earnings, net of — — — 221 Other comprehensive loss $ (19,091 ) $ (8,219 ) $ (24,091 ) $ (455 ) The changes in each component of accumulated other comprehensive loss, net of tax, were a s follows: Nine Months Ended September 30, 2022 2021 Foreign currency translation adjustment: Beginning balance $ (34,176 ) $ (34,694 ) Current period other comprehensive loss (15,932 ) (406 ) Ending balance (50,108 ) (35,100 ) Cash flow hedging instruments: Beginning balance — (173 ) Current period other comprehensive income — 43 Reclassification adjustment — 132 Ending balance — 2 Accumulated other comprehensive loss, net of tax $ (50,108 ) $ (35,098 )

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2022
ACQUISITIONS	5. ACQUISITIONS Makdad Industrial Supply Co., Inc. On August 20, 2021, one of our wholly owned subsidiaries acquired Makdad Industrial Supply Co., Inc., a distributor of air conditioning and heating products operating from six 18-year Acme Refrigeration of Baton Rouge LLC On May 7, 2021, we acquired certain assets and assumed certain liabilities of Acme Refrigeration of Baton Rouge LLC, a distributor of air conditioning, heating, and refrigeration products, operating from 18 locations in Louisiana and Mississippi, for $22,855 less certain average revolving indebtedness. We formed a new, wholly owned subsidiary, Acme Refrigeration LLC, which operates this business. Consideration for the purchase consisted of $18,051 in cash, 8,492 shares of Common stock having a fair value of $2,551, and $3,141 for repayment of indebtedness, net of cash acquired of $1,340. The purchase price resulted in the recognition of $3,710 in goodwill and intangibles. The fair value of the identified intangible assets was $2,124 and consisted of $1,508 in trade names and distribution rights, and $616 in customer relationships to be amortized over an 18-year Temperature Equipment Corporation On April 9, 2021, we acquired certain assets and assumed certain liabilities comprising the HVAC distribution business of Temperature Equipment Corporation, an HVAC distributor operating from 32 locations in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri and Wisconsin. We formed a new, stand-alone joint venture with Carrier, TEC Distribution LLC (“TEC”), that operates this business. We have an 80% controlling interest in TEC, and Carrier has a 20% non-controlling 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 The results of operations of these acquisitions have been included in the consolidated financial statements from their respective dates of acquisition. The pro forma effect of these acquisitions was not deemed significant to the consolidated financial statements.

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2022
DERIVATIVES	6. DERIVATIVES We enter into foreign currency forward and option contracts intended to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. At September 30, 2022, no foreign currency forward contracts were designated as cash flow hedges. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Nine Months Ended 2022 2021 2022 2021 G $ — $ — $ — $ 97 L $ — $ — $ — $ 305 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 designated as a hedging instrument We recognized (losses) gains The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. Se e Note Asset Derivatives Liability Derivatives September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Derivatives designated as $ — $ — $ — $ — Derivatives not designated as hedging instruments — — 13 5 Total derivative instruments $ — $ — $ 13 $ 5

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2022
FAIR VALUE MEASUREMENTS	7. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 596 $ 596 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 13 — $ 13 — 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 — 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 the nine months ended September 30, 2021, we recognized a realized gain of $3,815 recorded in our condensed consolidated unaudited statement of income attributable to the sale of certain equity securities.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2022
SHAREHOLDERS' EQUITY	8. SHAREHOLDERS’ EQUITY 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 September 30, 2022, no shares of Common stock had been sold under the ATM Program. Common Stock Dividends We paid cash dividends of $2.20, $1.95, $6.35, and $5.675 per share of both Common stock and Class B common stock during the quarters and nine months ended September 30, 2022 and 2021, respectively. Non-Vested During the quarter and nine months ended September 30, 2022, 879 shares of Class B common stock with an aggregate fair market value of $252, and 9,060 shares of Class B common stock with an aggregate fair market value of $2,431, respectively, were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested non-vested Exercise of Stock Options Cash received from Common stock issued as a result of stock options exercised during the quarters and nine months ended September 30, 2022 and 2021, was $7,929, $2,094, $15,151, and $9,940, respectively. During both the quarter and nine months ended Employee Stock Purchase Plan During the quarters ended September 30, 2022 and 2021, we received net proceeds of $478 and $392, respectively, for shares of our Common stock purchased under our employee stock purchase plan. During the nine months ended September 30, 2022 and 2021, we received net proceeds of $1,484 and $1,233, respectively, for shares of our Common stock purchased under our employee stock purchase plan.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors, and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $10,715 and $7,253 at September 30, 2022 and December 31, 2021, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
RELATED PARTY TRANSACTIONS	10. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 63% and 59% of all inventory purchases made during the quarters ended September 30, 2022 and 2021, respectively. Purchases from Carrier and its affiliates comprised 60% and 64% of all inventory purchases made during the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021, approximately $167,000 and $90,000, respectively, was payable to Carrier and its affiliates, net of receivables. We also sell HVAC products to Carrier and its affiliates. Revenues in our condensed consolidated unaudited statements of income for the quarters and nine months ended September 30, 2022 and 2021 included approximately $26,000, $30,000, $76,000, and $86,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length A member of our Board of Directors is the Senior Chairman of Greenberg Traurig, P.A., which serves as our principal outside counsel for compliance and acquisition-related legal services. During the quarters and nine months ended September 30, 2022 and 2021, fees to this firm for services performed were $40, $83, $169, and $181, respectively. At September 30, 2022 and December 31, 2021, $37 and $34, respectively, was payable to this firm.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2022
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS On October 15, 2022, 975,622 shares of Class B restricted stock held by an affiliate of our Chief Executive Officer (“CEO”) vested. The vested shares had a value of $265,106 based on the closing price of Watsco’s Class B common stock as of that date. This vested value was treated as taxable compensation to our CEO for income tax purposes and was subject to statutory withholding. Upon vesting, we funded $104,319 in statutory withholding, which, in turn, was satisfied by the CEO through a cash payment of $19,700 and by surrendering of 311,408 shares of Watsco Class B common stock. Accordingly, 664,214 shares of Watsco Class B common stock were retained by the affiliate of our CEO, and we retired the surrendered shares. The value of the vested shares will be deducted on our 2022 income tax return and our provision for income taxes will reflect an income tax benefit and related reduction in our effective tax rate. On October 18, 2022, our Board of Directors approved an increase to the quarterly cash dividend per share of Common and Class B common stock to $2.45 per share from $2.20 per share, beginning with the dividend that will be paid in January 2023.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2022
Basis of Consolidation	Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us,” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2022 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2021 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest, and Carrier has a 20% non-controlling The results of operations for the quarter and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, profitability can be impacted favorably or unfavorably based on weather patterns, particularly during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the first and fourth quarters. Demand related to the new construction sectors throughout most of the markets we serve tends to be fairly evenly distributed throughout the year and depends largely on housing completions and related weather and economic conditions.
Equity Method Investments	Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in investment in unconsolidated entity in our condensed consolidated unaudited balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our condensed consolidated unaudited statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill.
Use of Estimates	Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, net realizable value adjustments to inventories, income taxes, reserves related to loss contingencies and the valuation of goodwill, indefinite-lived intangible assets and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
Impact of Pandemic, Economic and Marketplace Dynamics	Impact of the COVID-19 Since COVID-19 COVID-19

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 30, 2022
Summary of Disaggregated Revenue	The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Primary Geographical Regions: United States $ 1,851,071 $ 1,615,319 $ 5,156,846 $ 4,291,838 Canada 100,567 102,491 303,149 290,863 Latin America and the Caribbean 84,158 64,759 233,126 185,626 $ 2,035,796 $ 1,782,569 $ 5,693,121 $ 4,768,327 Major Product Lines: HVAC equipment 69 % 69 % 69 % 69 % Other HVAC products 27 % 27 % 27 % 27 % Commercial refrigeration products 4 % 4 % 4 % 4 % 100 % 100 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2022
Schedule of Basic and Diluted Earnings Per Common Share	The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 157,641 $ 140,865 $ 463,496 $ 340,059 Less: distributed and undistributed earnings allocated to non-vested 14,387 12,590 42,293 30,182 Earnings allocated to Watsco, Inc. shareholders $ 143,254 $ 128,275 $ 421,203 $ 309,877 Weighted-average common shares outstanding - Basic 35,450,277 35,260,126 35,401,179 35,222,865 Basic earnings per share for Common and Class B common stock $ 4.04 $ 3.64 $ 11.90 $ 8.80 Allocation of earnings for Basic: Common stock $ 132,846 $ 118,905 $ 390,557 $ 287,217 Class B common stock 10,408 9,370 30,646 22,660 $ 143,254 $ 128,275 $ 421,203 $ 309,877 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 157,641 $ 140,865 $ 463,496 $ 340,059 Less: distributed and undistributed earnings allocated to non-vested 14,368 12,563 42,228 30,132 Earnings allocated to Watsco, Inc. shareholders $ 143,273 $ 128,302 $ 421,268 $ 309,927 Weighted-average common shares outstanding - Basic 35,450,277 35,260,126 35,401,179 35,222,865 Effect of dilutive stock options 112,008 181,852 128,309 177,389 Weighted-average common shares outstanding - Diluted 35,562,285 35,441,978 35,529,488 35,400,254 Diluted earnings per share for Common and Class B common stock $ 4.03 $ 3.62 $ 11.86 $ 8.75 Anti-dilutive stock options not included above 208,610 63,959 181,115 27,513

OTHER COMPREHENSIVE LOSS (Table

OTHER COMPREHENSIVE LOSS (Tables)	9 Months Ended
	Sep. 30, 2022
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss	The tax effects allocated to each component of other comprehensive loss were as follows: Quarter Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency translation adjustment $ (19,091 ) $ (8,219 ) $ (24,091 ) $ (746 ) Unrealized gain on cash flow hedging instruments — — — 97 Income tax expense — — — (27 ) Unrealized gain on cash flow hedging instruments, net of tax — — — 70 Reclassification of loss on cash flow hedging instruments into earnings — — — 305 Income tax benefit — — — (84 ) Reclassification of loss on cash flow hedging instruments into earnings, net of — — — 221 Other comprehensive loss $ (19,091 ) $ (8,219 ) $ (24,091 ) $ (455 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were a s follows: Nine Months Ended September 30, 2022 2021 Foreign currency translation adjustment: Beginning balance $ (34,176 ) $ (34,694 ) Current period other comprehensive loss (15,932 ) (406 ) Ending balance (50,108 ) (35,100 ) Cash flow hedging instruments: Beginning balance — (173 ) Current period other comprehensive income — 43 Reclassification adjustment — 132 Ending balance — 2 Accumulated other comprehensive loss, net of tax $ (50,108 ) $ (35,098 )

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Business Combinations [Abstract]
Summary of tangible and intangible assets acquired and liabilities assumed	The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of our 80% controlling interest in TEC based on their respective 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

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2022
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges	The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Nine Months Ended 2022 2021 2022 2021 G $ — $ — $ — $ 97 L $ — $ — $ — $ 305
Fair Value of Derivative Instruments and Location in the Balance Sheets	The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. Se e Note Asset Derivatives Liability Derivatives September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Derivatives designated as $ — $ — $ — $ — Derivatives not designated as hedging instruments — — 13 5 Total derivative instruments $ — $ — $ 13 $ 5

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
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 $ 596 $ 596 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 13 — $ 13 — 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 —

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	Sep. 30, 2022 Entity
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Joint Ventures	4

Revenues - Summary of Disaggreg

Revenues - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100%	100%	100%	100%
Revenues	$ 2,035,796	$ 1,782,569	$ 5,693,121	$ 4,768,327
United States
Disaggregation of Revenue [Line Items]
Revenues	1,851,071	1,615,319	5,156,846	4,291,838
Canada
Disaggregation of Revenue [Line Items]
Revenues	100,567	102,491	303,149	290,863
Latin America and the Caribbean
Disaggregation of Revenue [Line Items]
Revenues	$ 84,158	$ 64,759	$ 233,126	$ 185,626
HVAC Equipment
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	69%	69%	69%	69%
Other HVAC Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	27%	27%	27%	27%
Commercial Refrigeration Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	4%	4%	4%	4%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 157,641	$ 140,865	$ 463,496	$ 340,059
Basic earnings per share for Common and Class B common stock	$ 4.04	$ 3.64	$ 11.9	$ 8.8
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 157,641	$ 140,865	$ 463,496	$ 340,059
Diluted earnings per share for Common and Class B common stock	$ 4.03	$ 3.62	$ 11.86	$ 8.75
Class B Common Stock
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 10,408	$ 9,370	$ 30,646	$ 22,660
Common Stock
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	132,846	118,905	390,557	287,217
Common Stock | Class B Common Stock
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	157,641	140,865	463,496	340,059
Less: distributed and undistributed earnings allocated to non-vested restricted common stock	14,387	12,590	42,293	30,182
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 143,254	$ 128,275	$ 421,203	$ 309,877
Weighted-average common shares outstanding - Basic	35,450,277	35,260,126	35,401,179	35,222,865
Basic earnings per share for Common and Class B common stock	$ 4.04	$ 3.64	$ 11.9	$ 8.8
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 157,641	$ 140,865	$ 463,496	$ 340,059
Less: distributed and undistributed earnings allocated to non-vested restricted common stock – Diluted	14,368	12,563	42,228	30,132
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 143,273	$ 128,302	$ 421,268	$ 309,927
Weighted-average common shares outstanding - Basic	35,450,277	35,260,126	35,401,179	35,222,865
Effect of dilutive stock options	112,008	181,852	128,309	177,389
Weighted-average common shares outstanding - Diluted	35,562,285	35,441,978	35,529,488	35,400,254
Diluted earnings per share for Common and Class B common stock	$ 4.03	$ 3.62	$ 11.86	$ 8.75
Anti-dilutive stock options not included above	208,610	63,959	181,115	27,513

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	2,575,725	2,575,698

Other comprehensive loss - Sche

Other comprehensive loss - Schedule of Tax Effects Allocated to Each Component of Other Comprehensive loss (Detail) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ (19,091)			$ (8,219)			$ (24,091)	$ (746)
Unrealized gain on cash flow hedging instruments	0			0			0	97
Income tax expense	0			0			0	(27)
Unrealized gain on cash flow hedging instruments, net of tax	0			0			0	70
Reclassification of loss on cash flow hedging instruments into earnings	0			0			0	305
Income tax benefit	0			0			0	(84)
Reclassification of loss on cash flow hedging instruments into earnings, net of tax	0			0			0	221
Other comprehensive loss	$ (19,091)	$ (9,381)	$ 4,381	$ (8,219)	$ 3,988	$ 3,776	$ (24,091)	$ (455)

Other comprehensive loss - Sch

Other comprehensive loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (34,176)
Ending balance	(50,108)	$ (35,098)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34,176)	(34,694)
Current period other comprehensive (loss) income	(15,932)	(406)
Ending balance	(50,108)	(35,100)
Cash Flow Hedging Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	0	(173)
Current period other comprehensive (loss) income	0	43
Reclassification adjustment	0	132
Ending balance	$ 0	$ 2

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands				9 Months Ended
	Aug. 20, 2021 USD ($) Location shares	May 07, 2021 USD ($) Location shares	Apr. 09, 2021 USD ($) Location	Sep. 30, 2021 USD ($)
TEC Distribution LLC [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location			32
Goodwill and intangibles acquired			$ 38,624
Business Combination, Consideration Transferred			105,200
Intangible assets acquired			$ 19,900
Number of years goodwill is deductible for tax purposes			15 years
Repayments of Debt			$ 1,497
TEC Distribution LLC [Member] | Carrier [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 21,040
Percentage of Voting Interests Acquired			20%
TEC Distribution LLC [Member] | Controlling Interest [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred			$ 84,160
Percentage of Voting Interests Acquired			80%
TEC Distribution LLC [Member] | Trade Names and Distribution Rights [Member]
Business Acquisition [Line Items]
Goodwill and intangibles acquired			$ 15,700
TEC Distribution LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Goodwill and intangibles acquired			$ 4,200
Amortization period			18 years
Makdad Industrial Supply Co Inc [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location	6
Cash consideration for Business Acquisition	$ 3,164
Number of shares issuable | shares	3,627
Fair value of equity shares issued or issuable	$ 997			$ 997
Goodwill and intangibles acquired	$ 1,041
Businesss acquistion goodwill expected period of tax deduction	15 years
Cash acquired	$ 204
Intangible assets acquired	596
Makdad Industrial Supply Co Inc [Member] | Trade Names and Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 423
Makdad Industrial Supply Co Inc [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Amortization period	18 years
Intangible assets acquired	$ 173
Acme Refrigeration of Baton Rouge LLC [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location		18
Cash consideration for Business Acquisition		$ 18,051
Fair value of equity shares issued or issuable		$ 2,551		$ 2,551
Stock issued for acquisition | shares		8,492
Goodwill and intangibles acquired		$ 3,710
Repayment of indebtedness		3,141
Cash acquired		1,340
Intangible assets acquired		2,124
Purchase price less certain average revolving indebtedness		$ 22,855
Number of years goodwill is deductible for tax purposes		15 years
Acme Refrigeration of Baton Rouge LLC [Member] | Trade Names and Distribution Rights [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 1,508
Acme Refrigeration of Baton Rouge LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 616
Amortization period		18 years

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Apr. 09, 2021
Business Acquisition [Line Items]
Operating lease ROU assets	$ 312,397	$ 268,528
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

Derivatives - Impact from Forei

Derivatives - Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	$ 0	$ 0	$ 0	$ 97
Loss reclassified from accumulated other comprehensive loss into earnings	0	0	0	305
Foreign Currency Forward Contracts | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	0	0	0	97
Loss reclassified from accumulated other comprehensive loss into earnings	$ 0	$ 0	$ 0	$ 305

Derivatives - Fair Value of Der

Derivatives - Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Exchange Forward And Option Contracts [Member] - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 0	$ 0
Derivative instruments, liabilities derivatives	13	5
Derivatives Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	0	0
Derivative instruments, liabilities derivatives	0	0
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	0	0
Derivative instruments, liabilities derivatives	$ 13	$ 5

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
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
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	$ 7,500		$ 7,500
Contract expiring terms			2022-10
Gain (loss) from foreign currency forward and option contracts not designated as hedging instruments	$ (149)	$ 83	$ (524)	$ (101)

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other assets
Assets:
Equity securities	$ 596	$ 1,790
Private equities	1,000	1,000
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	13	5
Fair Value Measurements, Level 1 | Other assets
Assets:
Equity securities	596	1,790
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	13	5
Fair Value Measurements, Level 3 | Other assets
Assets:
Private equities	$ 1,000	$ 1,000

Fair Value Measurements - Addit

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

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 06, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, market value				$ 2,471	$ 894
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 | Non-Vested Restricted Stock
Stockholders Equity Note [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares		879	3,250	9,060	3,250
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 252	$ 894	$ 2,431	$ 894
Common and Class B Common Stock
Stockholders Equity Note [Line Items]
Cash dividends paid per share of Common and Class B common stock		$ 2.2	$ 1.95	$ 6.35	$ 5.675
Common Stock | Stock Option
Stockholders Equity Note [Line Items]
Net proceeds from the sale of Common stock		$ 7,929	$ 2,094	$ 15,151	$ 9,940
Shares withheld as payment for tax withholdings related to share based compensation, shares		1,053		1,053	2,965
Shares withheld as payment for tax withholdings related to share based compensation, market value		$ 298		$ 298	$ 863
Common Stock | Employee Stock Purchase Plan [Member]
Stockholders Equity Note [Line Items]
Net proceeds from shares purchased under ESPP		$ 478	$ 392	$ 1,484	$ 1,233

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 10,715	$ 7,253

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Greenberg Traurig, P.A.
Related Party Transaction [Line Items]
Amount payable to related party	$ 37		$ 37		$ 34
Greenberg Traurig, P.A. | Customary Fees for Legal Services
Related Party Transaction [Line Items]
Fees for related party transaction	40	$ 83	169	$ 181
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	167,000		167,000		$ 90,000
Revenues from sales to Carrier and its affiliates	$ 26,000	$ 30,000	$ 76,000	$ 86,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	63%	59%	60%	64%

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Oct. 18, 2022	Oct. 15, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Subsequent Event [Line Items]
Payment, tax withholding, share-based payment arrangement					$ 2,471	$ 894
Subsequent Event
Subsequent Event [Line Items]
Cash dividend, common stock and Class B common stock current rate	2.45
Cash dividend, common stock and Class B common stock previous rate	2.2
Effective date of increase in quarterly cash dividend rate	2023-01
Class B Common Stock | Restricted Stock [Member]
Subsequent Event [Line Items]
Payment, tax withholding, share-based payment arrangement			$ 252	$ 894	$ 2,431	$ 894
Share based payment arrangement, shares withheld for tax withholding obligation			879	3,250	9,060	3,250
Class B Common Stock | Subsequent Event | Restricted Stock [Member] | Affiliate of Chief Executive Officer [Member]
Subsequent Event [Line Items]
Number of shares vested		975,622
Payment, tax withholding, share-based payment arrangement		$ 104,319
Share based payment arrangement, shares withheld for tax withholding obligation		311,408
Market value of vested shares		$ 265,106
Cash payment related to tax withholding for share based compensation		$ 19,700
Shares retained net of tax withholdings		664,214