Watsco (WSO) 10-K 23 Feb 24 2023 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 20, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
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 File Number	1-5581
Entity Incorporation, State or Country Code	FL
Document Annual Report	true
Document Transition Report	false
Entity Address, City or Town	Miami
Entity Tax Identification Number	59-0778222
Entity Address, Address Line One	2665 South Bayshore Drive
Entity Address, Postal Zip Code	33133
Entity Address, Address Line Two	Suite 901
Entity Address, State or Province	FL
City Area Code	305
Local Phone Number	714-4100
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
Entity Public Float			$ 12,929
ICFR Auditor Attestation Flag	true
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Miami, FL
Document Financial Statement Error Correction [Flag]	false
KPMG LLP [Member]
Document Information [Line Items]
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		33,934,349
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		5,562,249

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues	$ 7,283,767	$ 7,274,344	$ 6,280,192
Cost of sales	5,291,627	5,244,055	4,612,647
Gross profit	1,992,140	2,030,289	1,667,545
Selling, general and administrative expenses	1,223,507	1,221,382	1,058,316
Other income	26,177	22,671	19,299
Operating income	794,810	831,578	628,528
Interest expense, net	4,920	2,165	996
Income before income taxes	789,890	829,413	627,532
Income taxes	155,751	125,717	128,797
Net income	634,139	703,696	498,735
Less: net income attributable to non-controlling interest	97,802	102,529	79,790
Net income attributable to Watsco, Inc.	$ 536,337	$ 601,167	$ 418,945
Earnings per share for Common and Class B common stock:
Basic	$ 13.72	$ 15.46	$ 10.83
Diluted	$ 13.67	$ 15.41	$ 10.78

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net income	$ 634,139	$ 703,696	$ 498,735
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	7,906	(20,305)	936
Unrealized gain on cash flow hedging instruments	0	0	70
Reclassification of loss on cash flow hedging instruments into earnings	0	0	219
Other comprehensive income (loss)	7,906	(20,305)	1,225
Comprehensive income	642,045	683,391	499,960
Less: comprehensive income attributable to non-controlling interest	100,329	95,758	80,324
Comprehensive income attributable to Watsco, Inc.	$ 541,716	$ 587,633	$ 419,636

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 210,112	$ 147,505
Accounts receivable, net	797,832	747,110
Inventories, net	1,347,289	1,370,173
Other current assets	36,698	33,951
Total current assets	2,391,931	2,298,739
Property and equipment, net	136,230	125,424
Operating lease right-of-use assets	368,748	317,314
Goodwill	457,148	430,711
Intangible assets, net	218,146	175,191
Investment in unconsolidated entity	146,238	132,802
Other assets	10,741	8,033
Total assets	3,729,182	3,488,214
Current liabilities:
Current portion of long-term obligations	100,265	90,597
Borrowings under revolving credit agreement (Note 8)	0	56,400
Accounts payable	369,396	456,128
Accrued expenses and other current liabilities	242,351	303,397
Total current liabilities	712,012	906,522
Long-term obligations:
Borrowings under revolving credit agreement (Note 8)	15,400	0
Operating lease liabilities, net of current portion	276,913	232,144
Finance lease liabilities, net of current portion	12,214	11,388
Total long-term obligations	304,527	243,532
Deferred income taxes and other liabilities	96,453	89,882
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued	0	0
Paid-in capital	1,153,459	973,060
Accumulated other comprehensive loss, net of tax	(42,331)	(47,710)
Retained earnings	1,183,207	1,029,516
Treasury stock, at cost, 4,778,988 and 4,823,988 shares of Common stock and 48,263 and 48,263 shares of Class B common stock at December 31, 2023 and 2022, respectively	(86,630)	(87,440)
Total Watsco, Inc. shareholders' equity	2,229,839	1,889,237
Non-controlling interest	386,351	359,041
Total shareholders' equity	2,616,190	2,248,278
Total liabilities and shareholders' equity	3,729,182	3,488,214
Common Stock [Member]
Watsco, Inc. shareholders' equity:
Common stock	19,353	19,054
Class B Common Stock [Member]
Watsco, Inc. shareholders' equity:
Common stock	$ 2,781	$ 2,757

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Preferred stock, par value	$ 0.5	$ 0.5
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common Stock [Member]
Common stock, par value	$ 0.5	$ 0.5
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares outstanding	38,705,586	38,108,752
Treasury stock, shares	4,778,988	4,823,988
Class B Common Stock [Member]
Common stock, par value	$ 0.5	$ 0.5
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares outstanding	5,562,945	5,513,386
Treasury stock, shares	48,263	48,263

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	TEC Distribution LLC [Member]	Gateway Supply Company, Inc. [Member]	Makdad Industrial Supply Co Inc [Member]	Acme Refrigeration of Baton Rouge LLC [Member]	Common Stock, Class B Common Stock and Preferred Stock [Member]	Common Stock, Class B Common Stock and Preferred Stock [Member] Gateway Supply Company, Inc. [Member]	Common Stock, Class B Common Stock and Preferred Stock [Member] Makdad Industrial Supply Co Inc [Member]	Common Stock, Class B Common Stock and Preferred Stock [Member] Acme Refrigeration of Baton Rouge LLC [Member]	Paid-In Capital [Member]	Paid-In Capital [Member] Gateway Supply Company, Inc. [Member]	Paid-In Capital [Member] Makdad Industrial Supply Co Inc [Member]	Paid-In Capital [Member] Acme Refrigeration of Baton Rouge LLC [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Non-controlling Interest [Member]	Non-controlling Interest [Member] TEC Distribution LLC [Member]
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	498,735														418,945		79,790
Other comprehensive gain (loss)	1,225													691			534
Issuances of restricted shares of common stock						$ 97				(97)
Issuances of restricted shares of common stock (in shares)						194,643
Forfeitures of restricted shares of common stock						$ (28)				28
Forfeitures of 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)
Common stock issued				$ 997	$ 2,551			$ 2	$ 4			$ 995	$ 2,547
Common stock issued (in shares)								3,627	8,492
Share-based compensation	24,531									24,531
Investment in TEC Distribution LLC		$ 21,040																$ 21,040
Cash dividends declared and paid on Common and Class B common stock	(295,044)														(295,044)
Common Stock Released From Escrow Shares						(23,230)
Common Stock Released From Escrow Value	522					$ (12)				12					522
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
Net income	703,696														601,167		102,529
Other comprehensive gain (loss)	(20,305)													(13,534)			(6,771)
Issuances of restricted shares of common stock						$ 72				(72)
Issuances of restricted shares of common stock (in shares)						143,059
Forfeitures of restricted shares of common stock						$ (7)				7
Forfeitures of restricted shares of common stock (in shares)						(13,000)
Common stock contribution to 401(k) plan	6,746					$ 11				6,735
Common stock contribution to 401(k) plan (in shares)						21,560
Stock issuances from exercise of stock options and employee stock purchase plan	20,802					$ 60				20,742
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)						120,696
Retirement of common stock	(87,488)					$ (161)				(87,327)
Retirement of common stock (in shares)						(322,060)
Share-based compensation	29,043									29,043
Cash dividends declared and paid on Common and Class B common stock	(332,447)														(332,447)
Distributions to non-controlling interest	(69,184)																(69,184)
Ending balance at Dec. 31, 2022	2,248,278					$ 21,811				973,060				(47,710)	1,029,516	(87,440)	359,041
Ending balance (in shares) at Dec. 31, 2022						38,749,887
Net income	634,139														536,337		97,802
Other comprehensive gain (loss)	7,906													5,379			2,527
Issuances of restricted shares of common stock						$ 90				(90)
Issuances of restricted shares of common stock (in shares)						180,617
Forfeitures of restricted shares of common stock						$ (7)				7
Forfeitures of restricted shares of common stock (in shares)						(13,796)
Common stock contribution to 401(k) plan	8,862					$ 18				8,844
Common stock contribution to 401(k) plan (in shares)						35,533
Stock issuances from exercise of stock options and employee stock purchase plan	34,003					$ 94				33,909
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)						188,464
Issuance of Class B common stock	200					$ 0				200
Issuance of Class B common stock (in shares)						632
Retirement of common stock	(7,704)					$ (12)				(7,692)
Retirement of common stock (in shares)						(25,272)
Net proceeds from the sale of Common stock	14,804									13,994						810
Net proceeds from the sale of Common stock (in shares)						45,000
Common stock issued			$ 101,645				$ 140				$ 101,505
Common stock issued (in shares)							280,215
Share-based compensation	29,722									29,722
Cash dividends declared and paid on Common and Class B common stock	(382,646)														(382,646)
Investment in unconsolidated entity	570																570
Distributions to non-controlling interest	(73,589)																(73,589)
Ending balance at Dec. 31, 2023	$ 2,616,190					$ 22,134				$ 1,153,459				$ (42,331)	$ 1,183,207	$ (86,630)	$ 386,351
Ending balance (in shares) at Dec. 31, 2023						39,441,280

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash dividends declared and paid, common stock	$ 9.8	$ 8.55	$ 7.625

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 634,139	$ 703,696	$ 498,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,090	31,683	28,127
Share-based compensation	30,000	28,821	25,365
Deferred income tax (benefit) provision	(7,179)	13,466	5,939
Provision for doubtful accounts	7,158	8,539	6,888
Non-cash contribution to 401(k) plan	8,862	6,746	5,154
(Gain) loss on sale of property and equipment	(143)	(1,624)	350
Other income from investment in unconsolidated entity	(26,177)	(22,671)	(19,299)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(36,035)	(60,154)	(130,414)
Inventories, net	64,620	(259,860)	(243,660)
Accounts payable and other liabilities	(162,042)	121,993	182,819
Other, net	13,661	1,329	(10,438)
Net cash provided by operating activities	561,954	571,964	349,566
Cash flows from investing activities:
Capital expenditures	(35,478)	(35,652)	(25,464)
Business acquisitions, net of cash acquired	(3,822)	(47)	(129,462)
Investment in unconsolidated entity	(2,849)	0	0
Other investment	(500)	0	(1,000)
Proceeds from sale of equity securities	0	0	5,993
Proceeds from sale of property and equipment	1,306	1,863	1,356
Net cash used in investing activities	(41,343)	(33,836)	(148,577)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(382,646)	(332,447)	(294,522)
Distributions to non-controlling interest	(73,589)	(69,184)	(61,980)
Net (repayments) proceeds under prior revolving credit agreement	(56,400)	(32,600)	89,000
Net repayments of finance lease liabilities	(4,045)	(3,042)	(2,040)
Repurchases of common stock to satisfy employee withholding tax obligations	(2,828)	(87,107)	(1,092)
Payment of fees related to revolving credit agreement	(844)	0	(22)
Proceeds from non-controlling interest for investment in unconsolidated entity	570	0	0
Net proceeds from the sale of Common stock	15,179	0	0
Net proceeds under current revolving credit agreement	15,400	0	0
Net proceeds from issuances of Common stock under employee related plans	29,127	20,422	21,014
Net cash used in financing activities	(460,076)	(503,958)	(228,602)
Effect of foreign exchange rate changes on cash and cash equivalents	2,072	(4,933)	(186)
Net increase (decrease) in cash and cash equivalents	62,607	29,237	(27,799)
Cash and cash equivalents at beginning of year	147,505	118,268	146,067
Cash and cash equivalents at end of year	210,112	147,505	118,268
TEC Distribution LLC [Member]
Cash flows from financing activities:
Proceeds from non-controlling interest for investment in TEC Distribution LLC	$ 0	$ 0	$ 21,040

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 536,337	$ 601,167	$ 418,945

Insider Trading Arrangements

Insider Trading Arrangements	12 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” the “Company,” “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, 2023, we operated from 690 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, in which we have a controlling interest, the accounts of Carrier InterAmerica Corporation, in which we have an 80% controlling interest, and Carrier has a 20% non-controlling 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 the 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, 2023 and 2022, the allowance for doubtful accounts totaled $21,528 and $18,345, 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 defined 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 rebates 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, 2023 and 2022, we had $18,688 and $22,961, respectively, of rebates recorded as a reduction of inventories. Substantially all vendor rebate receivables are collected within three months 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 inventories 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, 2023 and 2022, we had $22,628 and $19,158, respectively, of cash discounts recorded as a reduction of inventories. 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 material 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 of a business 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, 2024, 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 impairment tests annually and have determined there was 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 it to the asset’s carrying value. For the year ended December 31, 2023, 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. The performance obligation under such contracts is satisfied 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 periods presented. 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, 2023 and 2022 of $21,392 and $21,023, 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 terms of the programs 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, 2023, 2022, and 2021, were $28,236, $25,884, and $21,552, 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 for the years ended December 31, 2023, 2022 and 2021, were $82,600, $86,620, and $70,453, respectively. Share-Based Compensation The fair value of stock option and restricted stock awards are expensed net of estimated forfeitures on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of income. Tax benefits resulting from tax deductions in excess of share-based compensation expense are recognized in our provision for income taxes in our consolidated statements of income. 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 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 this threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Earnings per Share We compute earnings per share using the two-class two-class 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 16 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. Recently Issued Accounting Standards Not Yet Adopted Segment Reporting In September 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances segment reporting primarily by expanding the disclosures about significant segment expenses. Under the new standard, an entity will be required to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), how the CODM assesses segment performance and decides how to allocate resources, the title and position of the CODM, among others. This guidance is effective prospectively and is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Income Taxes In December 2023, the FASB issued guidance that enhances annual income tax disclosures primarily by disaggregating the existing disclosures related to the effective tax rate reconciliation and income taxes paid. Under the new standard, an entity will be required to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. An entity will also be required to disclose the amount of income taxes paid disaggregated by federal, state and foreign, and by individual jurisdictions equal or greater than five percent of total income taxes paid. This guidance is effective prospectively and is effective for annual periods beginning after December 15, 2024. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2023
LEASES	2. LEASES The components of operating lease expense were as follows: Years Ended December 31, 2023 2022 2021 Lease cost $ 112,195 $ 101,578 $ 90,742 Short-term lease cost 10,102 10,226 9,598 Variable lease cost 1,773 1,840 1,868 Sublease income (436 ) (373 ) (332 ) $ 123,634 $ 113,271 $ 101,876 Supplemental balance sheet information related to operating leases were as follows: December 31, 2023 2022 ROU assets $ 368,748 $ 317,314 Current portion $ 95,587 $ 87,120 Operating lease liabilities 276,913 232,144 Total operating $ 372,500 $ 319,264 Weighted Average Remaining Lease Term (in years) 4.8 years 4.8 years Weighted Average Discount Rate 4.91 % 3.85 % Supplemental cash flow information related to operating leases were as follows: Years Ended December 31, 2023 2022 2021 Operating cash flows for the measurement of operating lease liabilities $ 110,614 $ 100,092 $ 91,063 Operating lease ROU assets obtained in exchange for operating lease obligations $ 148,196 $ 140,704 $ 141,198 At December 31, 2023, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2024 $ 111,590 2025 95,946 2026 77,896 2027 51,703 2028 32,610 Thereafter 50,528 Total lease payments 420,273 Less imputed interest 47,773 Total lease liability $ 372,500 At December 31, 2023, we had additional operating leases that had not yet commenced. Such leases had estimated future minimum rental commitments of approximately $24,000. These operating leases are expected to commence in 2024 with lease terms of more than 1 year to 10 years. These undiscounted amounts are not included in the table above.

REVENUES

REVENUES	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Primary Geographical Regions: United States $ 6,540,646 $ 6,578,897 $ 5,636,929 Canada 374,659 389,119 386,780 Latin America and the Caribbean 368,462 306,328 256,483 $ 7,283,767 $ 7,274,344 $ 6,280,192 Years Ended December 31, 2023 2022 2021 Major Product Lines: HVAC equipment 69 % 68 % 69 % Other HVAC products 27 % 28 % 28 % Commercial refrigeration products 4 % 4 % 3 % 100 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 536,337 $ 601,167 $ 418,945 Less: distributed and undistributed earnings allocated to restricted common stock 36,966 51,365 37,273 Earnings allocated to Watsco, Inc. shareholders $ 499,371 $ 549,802 $ 381,672 Weighted-average common shares outstanding—Basic 36,406,148 35,564,203 35,244,230 Basic earnings per share for Common and Class B common stock $ 13.72 $ 15.46 $ 10.83 Allocation of earnings for Basic: Common stock $ 455,186 $ 499,792 $ 353,873 Class B common stock 44,185 50,010 27,799 $ 499,371 $ 549,802 $ 381,672 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 536,337 $ 601,167 $ 418,945 Less: distributed and undistributed earnings allocated to restricted common stock 36,932 51,294 37,222 Earnings allocated to Watsco, Inc. shareholders $ 499,405 $ 549,873 $ 381,723 Weighted-average common shares outstanding—Basic 36,406,148 35,564,203 35,244,230 Effect of dilutive stock options 125,535 119,431 179,608 Weighted-average common shares outstanding—Diluted 36,531,683 35,683,634 35,423,838 Diluted earnings per share for Common and Class B common stock $ 13.67 $ 15.41 $ 10.78 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, 2023, 2022, and 2021, our outstanding Class B common stock was convertible into 3,221,259, 3,234,939, and 2,566,990 shares of our Common stock, respectively. Diluted earnings per share excluded 18,489, 190,462, and 40,529 shares for the years ended December 31, 2023, 2022, and 2021, 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 (LOS

OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2023
OTHER COMPREHENSIVE INCOME (LOSS)	5. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as their functional currency and changes in the unrealized gains on cash flow hedging instruments. The tax effects allocated to each component of other comprehensive income (loss) were as follows: Years Ended December 31, 2023 2022 2021 Foreign currency translation adjustment $ 7,906 $ (20,305 ) $ 936 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 —  —  (86 ) Reclassification of loss on cash flow hedging instruments into earnings, net of tax —  —  219 Other comprehensive income (loss) $ 7,906 $ (20,305 ) $ 1,225 The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2023 2022 2021 Foreign currency translation adjustment: Beginning balance $ (47,710 ) $ (34,176 ) $ (34,694 ) Current period other comprehensive income (loss) 5,379 (13,534 ) 518 Ending balance (42,331 ) (47,710 ) (34,176 ) Cash flow hedging instruments: Beginning balance —  —  (173 ) Current period other comprehensive income —  —  43 Reclassification adjustment —  —  130 Ending balance —  —  —  Accumulated other comprehensive loss, net of tax $ (42,331 ) $ (47,710 ) $ (34,176 )

SUPPLIER CONCENTRATION

SUPPLIER CONCENTRATION	12 Months Ended
	Dec. 31, 2023
SUPPLIER CONCENTRATION	6. SUPPLIER CONCENTRATION Purchases from our top ten suppliers comprised 86%, 84%, and 83% of all purchases made in 2023, 2022, and 2021, respectively. Our largest supplier, Carrier and its affiliates, accounted for 65%, 60%, and 61% of all purchases made in 2023, 2022, and 2021, respectively. See Note 19. 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 adversely impact our consolidated results of operations and consolidated financial position. At December 31, 2023, $85,913 was recorded as a reduction of inventories related to pricing claim advances, of which $63,546 was provided by Carrier and its affiliates. At December 31, 2022, $92,402 was recorded as a reduction of inventories related to pricing claim advances, of which $69,814 was provided by Carrier and its affiliates.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2023
PROPERTY AND EQUIPMENT	7. PROPERTY AND EQUIPMENT Property and equipment, net, consists of: December 31, 2023 2022 Land $ 676 $ 676 Buildings and improvements 100,086 93,033 Machinery, vehicles, and equipment 130,958 120,811 Computer hardware and software 101,311 83,354 Furniture and fixtures 24,545 24,029 357,576 321,903 Accumulated depreciation and amortization (221,346 ) (196,479 ) $ 136,230 $ 125,424 Depreciation and amortization expense related to property and equipment included in selling, general and administrative expenses for the years

DEBT

DEBT	12 Months Ended
	Dec. 31, 2023
DEBT	8. DEBT On March 16, 2023, we entered into an unsecured, five-year $600,000 syndicated multicurrency revolving credit agreement, which replaced in its entirety our prior five-year $560,000 unsecured revolving credit agreement that was nearing maturity. Proceeds from the new facility were used to repay the $235,500 outstanding under the prior facility. Additional borrowings under the new facility m revolving Borrowings under the revolving credit facility bear interest at either Term Secured Overnight Financing Rate (“SOFR”) or Daily Simple SOFR-based rates plus 0.10%, plus a spread which ranges from 100.0 to 137.5 basis-points (Term SOFR and Daily Simple SOFR plus 100.0 basis-points at December 31, 2023), depending on our ratio of total debt to EBITDA, or on rates based on the highest of the Federal Funds Effective Rate plus 0.50%, the Prime Rate or Term SOFR plus 1.0%, in each case plus a spread which ranges from 0 to 50.0 basis-points (0 basis-points at December 31, 2023), 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 12.5 to 27.5 basis-points (12.5 basis-points at December 31, 2023). We paid fees of $844 in connection with entering into the revolving credit agreement, which are being amortized ratably through the maturity of the facility in March 2028. At December 31, 2023, $15,400 was outstanding under the revolving credit agreement. The revolving credit agreement contains customary affirmative and negative covenants, including financial covenants with respect to consolidated leverage and interest coverage ratios, and other customary restrictions. We believe we were in compliance with all covenants at December 31, 2023.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Current: U.S. Federal $ 119,133 $ 71,475 $ 91,162 State 29,749 27,202 20,703 Foreign 14,048 13,574 10,993 162,930 112,251 122,858 Deferred: U.S. Federal (5,581 ) 10,766 6,434 State (1,301 ) 3,695 1,374 Foreign (297 ) (995 ) (1,869 ) (7,179 ) 13,466 5,939 Income tax expense $ 155,751 $ 125,717 $ 128,797 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, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 3.5 4.6 3.5 Excess tax benefits from share-based compensation (1.8 ) (8.6 ) (1.7 ) Tax effects on foreign income 0.2 0.3 0.4 FDII (0.1 ) (0.1 ) (0.1 ) Change in valuation allowance 0.3 0.4 0.8 Tax credits and other (0.8 ) (0.4 ) (0.5 ) Effective income tax rate attributable to Watsco, Inc. 22.3 17.2 23.4 Taxes attributable to non-controlling (2.6 ) (2.0 ) (2.9 ) Effective income tax rate 19.7 % 15.2 % 20.5 % The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2023 2022 Deferred tax assets: Share-based compensation $ 30,847 $ 27,037 Capitalized inventory costs and adjustments 5,387 4,366 Allowance for doubtful accounts 4,096 3,326 Self-insurance reserves 1,701 1,975 Capitalized research and development costs 6,712 —  Other 7,678 8,711 Net operating loss carryforwards 4,584 3,899 61,005 49,314 Valuation allowance (10,468 ) (8,171 ) Total deferred tax assets 50,537 41,143 Deferred tax liabilities: Deductible goodwill (104,026 ) (88,316 ) Depreciation (24,973 ) (23,806 ) Unremitted earnings of domestic affiliates (5,008 ) (6,618 ) Other (4,390 ) (3,761 ) Total deferred tax liabilities (138,397 ) (122,501 ) Net deferred tax liabilities (1) $ (87,860 ) $ (81,358 ) (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”) , one-time low-taxed non- U.S. 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. On August 16, 2022, the Inflation Reduction Act (the “IRA”) was enacted, which introduces a new 15% corporate minimum tax based on adjusted financial statement income and a 1% excise tax on stock repurchases, effective January 1, 2023, and provisions intended to mitigate climate change, including tax credit incentives for investments that reduce greenhouse gas emissions. This legislation did not have a material impact on our consolidated financial statements. 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 $10,468 and $8,171 at December 31, 2023 and 2022, 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 IRC Section 162(m). At December 31, 2023, there were state net operating loss carryforwards of $29,881, some of which expire in 2026, with the majority having an indefinite carryforward period. At December 31, 2023, there were foreign net operating loss carryforwards of $17,723, which expire in varying amounts from 2035 through 2043. These amounts are available to offset future taxable income. There were no federal net operating loss carryforwards at December 31, 2023. We are subject to U.S. 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 U.S. federal tax examinations for tax years prior to 2020. For the majority of states and foreign jurisdictions, we are no longer subject to tax examinations for tax years prior to 2019. In addition, we are no longer subject to U.S. Virgin Islands federal tax examinations for tax years prior to 2015. At December 31, 2023 and 2022, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $7,874 and $7,752, respectively. Of these totals, $6,559 and $6,457, 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 policy 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, 2023 and 2022, the cumulative amount of estimated accrued interest and penalties resulting from such unrecognized tax benefits was $1,471 and $1,343, 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, 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 Additions based on tax positions related to the current year 1,867 Reductions due to lapse of applicable statute of limitations (842 ) Balance at December 31, 2022 7,752 Additions based on tax positions related to the current year 1,215 Reductions due to lapse of applicable statute of limitations (1,093 ) Balance at December 31, 2023 $ 7,874

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
	Dec. 31, 2023
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 restricted stock, non-qualified non-qualified 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) 7,327 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, plus (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 178,439 shares of Common and Class B common stock, net of cancellations, had been awarded under the 2021 Plan as of December 31, 2023. As of December 31, 2023, 2,328,888 shares of common stock were reserved for future grants under the 2021 Plan. Options under the 2021 Plan vest over two Our second plan, the , , but outstanding awards remain outstanding in accordance with their respective terms 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, 2023: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2022 559,625 $ 225.01 Granted 54,471 344.05 Exercised (181,289 ) 174.92 Forfeited (21,942 ) 263.84 Expired —  —  Options outstanding at December 31, 2023 410,865 $ 260.82 2.57 $ 68,882 Options exercisable at December 31, 2023 86,340 $ 202.25 1.54 $ 19,532 The following is a summary of restricted stock activity as of and for the year ended December 31, 2023: Shares Weighted- Restricted stock outstanding at December 31, 2022 2,589,261 $ 112.53 Granted 180,617 302.71 Vested (19,401 ) 107.81 Forfeited (13,796 ) 243.17 Restricted stock outstanding at December 31, 2023 2,736,681 $ 124.56 The weighted-average grant date fair value of restricted stock granted during 2023, 2022, and 2021 was $302.71, $290.55, and $254.73, respectively. The fair value of restricted stock that vested during 2023, 2022, and 2021 was $5,745, $271,781, and $3,646, respectively. During 2023, 7,585 shares of Common and Class B common stock with an aggregate fair market value of $2,215 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 2022, 320,468 shares of Class B common stock, which include the 311,408 surrendered shares referenced below, with an aggregate fair market value of $87,049 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. 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. These shares were retired upon delivery. 2022 On October 15, 2022, 975,622 shares of Class B restricted stock previously granted to our CEO during the period from 1997 to 2011 under various performance-based incentive plans vested. The vested shares had a value of $265,106 based on the closing price of our Class B common stock as of that date, which is deductible in our 2022 income tax return. The vesting of shares provided a cash benefit of approximately $67,000 in 2022 and reduced our provision for income taxes in 2022 by approximately $49,000. This vested value constitutes 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 to us of $19,700 and by the surrendering of 311,408 shares of Class B common stock. Accordingly, 664,214 shares of Class B common stock were retained by the CEO, and we retired the surrendered shares. 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, 2023 2022 2021 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 4.11 % 3.04 % 0.79 % Expected volatility 25.38 % 23.10 % 21.85 % Expected dividend yield 3.15 % 2.84 % 2.97 % Grant date fair value $ 67.32 $ 46.60 $ 34.79 Exercise of Stock Options The total intrinsic value of stock options exercised during 2023, 2022, and 2021 was $30,515, $13,046, and $16,903, respectively. Cash received from the exercise of stock options during 2023, 2022, and 2021 was $26,835, $18,425, and $19,338, respectively. The tax benefit from stock option exercises during 2023, 2022, and 2021 was $6,617, $2,658, and $3,595, respectively. During 2023, 2022, and 2021, 17,687 shares of Common stock with an aggregate fair market value of $5,489, 1,592 shares of Common stock with an aggregate fair market value of $438 and 4,040 shares of Common stock with an aggregate fair market value of $1,179, 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, 2023 2022 2021 Stock options $ 3,603 $ 3,856 $ 2,908 Restricted stock 26,397 24,965 22,457 Share-based compensation expense $ 30,000 $ 28,821 $ 25,365 At December 31, 2023, there was $7,650 of unrecognized pre-tax At December 31, 2023, there was $219,771 of unrecognized pre-tax compensation expense would be immediately recognized as a charge to earnings with a corresponding tax benefit. At December , , we were obligated to issue shares of restricted stock to our CEO that vest in years, shares of restricted stock to our President that vest in years, and an estimated shares of restricted stock to various key leaders that vest in 5-12 years in connection with ’s performance-based incentive compensation program. 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 2023, 2022, and 2021, employees purchased 4,096, 4,101, and 3,501 shares of Common stock at an average price of $306.80, $262.57, and $239.11 per share, respectively. Cash dividends received by the ESPP were reinvested in Common stock and resulted in the issuance of 3,079, 3,365, and 2,962 additional shares during 2023, 2022, and 2021, respectively. We received net proceeds of $2,292, $1,997, and $1,676, respectively, during 2023, 2022, and 2021, for shares of our Common stock purchased under the ESPP. At December 31, 2023, 436,304 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 contribution has historically been made with the issuance of Common stock to the plan on behalf of our employees. For the years ended December 31, 2023, 2022, and 2021, we issued 35,533, 21,560, and 22,752 shares of Common stock, respectively, to the plan, representing the Common stock discretionary matching contribution of $8,862, $6,746, and $5,154, respectively.

INVESTMENT IN UNCONSOLIDATED EN

INVESTMENT IN UNCONSOLIDATED ENTITY	12 Months Ended
	Dec. 31, 2023
INVESTMENT IN UNCONSOLIDATED ENTITY	11. INVESTMENT IN UNCONSOLIDATED ENTITY Our first joint venture with Carrier, Carrier Enterprise, LLC, which we refer to as Carrier Enterprise I, has a 38.4% ownership interest in Russell Sigler, Inc. (“RSI”), an HVAC distributor operating from 34 locations in the Western U.S. Our proportionate share of the net income of RSI is included in other income in our consolidated statements of income. Effective December 18, 2023, Carrier Enterprise I acquired an additional 0.3% ownership interest in RSI for cash consideration of $2,849, of which we contributed $2,279 and Carrier contributed $570. This acquisition increased Carrier Enterprise I’s ownership interest in RSI from 38.1% to 38.4%. Carrier Enterprise I is a party to a shareholders’ agreement (the “Shareholders’ Agreement”) with RSI and its shareholders, consisting of five Sigler second generation family siblings and their affiliates, who collectively own 55.4% of RSI (the “RSI Majority Holders”) and certain next-generation Sigler family members and an employee, who collectively own 6.2% of RSI (the “RSI Minority Holders” and, together with the RSI Majority Holders, the “RSI Shareholders”). Pursuant to the Shareholders’ Agreement, the RSI 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 the higher of book value or a multiple of EBIT, the latter of which Carrier Enterprise I used to calculate the price for its 38.4% investment held in RSI. The RSI 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 the RSI 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 38.4% equity interest in RSI and its right to appoint two out of RSI’s six board members, this investment in RSI is accounted for method. On July 28, 2023, Watsco, Carrier Enterprise I, and the RSI Majority Holders entered into an agreement that (1) provides Carrier Enterprise I the discretion, but not the obligation, to fund up to 80% of any purchase from the RSI Majority Holders of their RSI common stock, as required under the Shareholders’ Agreement, using Watsco Common stock (the “Offered Shares”), (2) provides that any Offered Shares actually issued would be valued based on the average volume-weighted average price of Watsco’s Common stock for the ten trading days immediately preceding the payment date for the applicable RSI shares, and (3) limits the amount of RSI shares that may be collectively sold by the RSI Majority Holders to Carrier Enterprise I under the Shareholders’ Agreement to $125,000 during any rolling 12-month

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2023
ACQUISITIONS	12. ACQUISITIONS Gateway Supply Company, Inc. On September 1, 2023, we acquired substantially all the assets and assumed certain of the liabilities of Gateway Supply Company, Inc. (“GWS”), a plumbing and HVAC distributor with annual sales of approximately $180,000, operating from 15 locations in South Carolina and one location in Charlotte, North Carolina. We formed a new, wholly owned subsidiary, Gateway Supply LLC, that operates this business. Consideration for the net purchase price consisted of $4,000 in cash, net of cash acquired of $3,102, and 280,215 shares of Common stock having a fair value of $101,645, net of a discount for lack of marketability. Of the 280,215 shares of Common stock issued, 21,228 shares are subject to a contractual restriction that generally prohibits the sale or other transfer of such shares by GWS and its permitted transferees for a period of one year following the closing date with respect to half of such shares, and two years following the closing date with respect to the other half of such shares. The preliminary purchase price resulted in the recognition of $69,098 in goodwill and intangibles. The fair value of the identified intangible assets was $44,000 and consisted of $18,600 in trade names and distribution rights, and $25,400 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 GWS based on their respective fair values as of September 1, 2023: Accounts receivable $ 21,159 Inventories 37,098 Other current assets 319 Property and equipment 3,213 Operating lease ROU assets 15,737 Goodwill 25,098 Intangibles 44,000 Other assets 86 Current portion of long-term liabilities (3,633 ) Accounts payable (8,306 ) Accrued expenses and other current liabilities (4,934 ) Operating lease liabilities, net of current portion (12,434 ) Finance lease liabilities, net of current portion (1,431 ) Other liabilities (13,429 ) Total $ 102,543 Capitol District Supply Co., Inc. On March 3, 2023, one of our wholly owned subsidiaries acquired Capitol District Supply Co., Inc., a distributor of plumbing and air conditioning and heating products with annual sales of approximately $13,000, operating from three locations in New York. Consideration for the purchase consisted of $1,217 in cash, net of cash acquired of $144, and $1,851 for repayment of indebtedness. The purchase price resulted in the recognition of $1,055 in goodwill and intangibles. The fair value of the identified intangible assets was $606 and consisted of $430 in trade names and distribution rights, and $176 in customer relationships to be amortized over an 18-year 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 consisted of $3,164 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 $1,041 in goodwill and intangibles. The fair value of the identified intangible assets was $596 and consisted of $423 in trade names and distribution rights, and $173 in customer relationships to be amortized over an 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 (“ACME”), 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, one of Carrier’s independent distributors with 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 owns and operates this business. We have an % controlling interest in TEC, and Carrier has a % non-controlling interest. Consideration for the purchase was paid in cash, consisting of $ paid to Temperature Equipment Corporation (Carrier contributed $ and we contributed $ and $ for repayment of indebtedness. 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 Current portion of long-term liabilities (5,855 ) Accounts payable (25,393 ) Accrued expenses and other current liabilities (14,654 ) 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.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2023
GOODWILL AND INTANGIBLE ASSETS	13. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2021 $ 434,019 Acquired goodwill 60 Allocation to intangible assets related to 2021 acquisition (596 ) Foreign currency translation adjustment (2,772 ) Balance at December 31, 2022 430,711 Acquired goodwill 25,547 Foreign currency translation adjustment 890 Balance at December 31, 2023 $ 457,148 Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2023 2022 Indefinite lived intangible assets - Trade $ 174,779 $ 154,086 Finite lived intangible assets: Customer relationships 7-18 years 110,489 83,943 Patented and unpatented technology 7 years 1,650 1,611 Trade name 10 years 1,150 1,150 Accumulated amortization (69,922 ) (65,599 ) Finite lived intangible assets, net 43,367 21,105 $ 218,146 $ 175,191 Amortization expense related to finite lived intangible assets included in selling, general and administrative expenses for the years ended December 31, 2023, 2022, and 2021, were $4,323, $4,709, and $5,561, respectively. Based on the finite lived intangible assets recorded at December 31, 2023, annual amortization for the next five years is expected to approximate the following: 2024 $ 4,600 2025 $ 4,500 2026 $ 4,300 2027 $ 2,900 2028 $ 2,200

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2023
SHAREHOLDERS' EQUITY	14. 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, 2023 or 2022. At-the-Market We are party to a sales agreement with Robert W. Baird & Co. Inc., which enables the Company to issue and sell shares of Common stock in one or more negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), for a maximum aggregate offering amount of up to $ (the “ATM Program”). The offer and sale of our Common stock pursuant to the ATM Program has been registered under the Securities Act pursuant to our automatically effective shelf registration statement on Form S-3 (File No. 333-260758). During 2023, we issued and sold 45,000 shares of Common stock under the ATM Program for net proceeds of $15,179. Direct costs of $375 incurred in connection with the offering were charged against the proceeds from the sale of Common stock and reflected as a reduction of paid-in 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 2023, 2022 or 2021. 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, 2023, there were 1,129,087 shares remaining authorized for repurchase under the program. The IRA includes, among other provisions, a 1% excise tax on corporate stock repurchases in tax years effective January 1, 2023. In consideration of any further stock repurchases under our repurchase program, we intend to evaluate the impact of the IRA’s 1% excise tax. 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. On November 12, 2021, 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, 2023
FINANCIAL INSTRUMENTS	15. 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, 2023 and 2022, 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 both December 31, 2023 and 2022, we were contingently liable under a standby letter of credit for $150, which was required by a lease for real property. Additionally, at December 31, 2023 and 2022, we were contingently liable under various performance bonds aggregating approximately $13,600 and $13,700, respectively, which are used as collateral to cover any contingencies related to our nonperformance under agreements with certain customers. We do not expect that any material losses or obligations will result from the issuance of the standby letter of credit or performance bonds because we expect to meet our obligations under our lease for real property and to certain customers in the ordinary course of business. 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, 2023
DERIVATIVES	16. 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. Derivatives Not Designated as Hedging Instruments We have 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 We recognized losses of $2,791, $917, and $237 from foreign currency forward and option contracts not designated as hedging instruments in our consolidated statements of income for 2023, 2022, and 2021, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2023
FAIR VALUE MEASUREMENTS	17. 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: Derivative financial instruments Other current assets $ 5 —  $ 5 —  Equity securities Other assets $ 1,044 $ 1,044 —  —  Private equities Other assets $ 1,500 —  —  $ 1,500 Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 678 $ 678 —  —  Private equities Other assets $ 1,000 —  —  $ 1,000 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: Derivative financial instruments Equity securities hierarchy. Private equities

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES	18. 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 several 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 $9,747 and $12,256 at December 31, 2023 and 2022, 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, 2023, 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, 2023, the maximum exposure to loss related to our involvement with this entity is limited to approximately $6,900 and we have a cash deposit of approximately $3,600 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, 2023, there were no other entities that met the definition of a VIE. Purchase Obligations At December 31, 2023, we were obligated under various non-cancelable

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2023
RELATED PARTY TRANSACTIONS	19. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 65%, 60%, and 61%, of all inventory purchases made during 2023, 2022, and 2021, respectively. At December 31, 2023 and 2022, approximately $100,000 and $88,000, respectively, was payable to Carrier and its affiliates, net of receivables. We also sell HVAC products to Carrier and its affiliates. Revenues in our consolidated statements of income for 2023, 2022, and 2021 included approximately $110,000, $97,000, and $108,000, 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 2023, 2022, and 2021, fees for services performed were $192, $186, and $225, respectively, and $3 and $1 was payable at December 31, 2023 and 2022, respectively.

INFORMATION ABOUT GEOGRAPHIC AR

INFORMATION ABOUT GEOGRAPHIC AREAS	12 Months Ended
	Dec. 31, 2023
INFORMATION ABOUT GEOGRAPHIC AREAS	20. 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, 2023 2022 2021 Revenues: United States $ 6,540,646 $ 6,578,897 $ 5,636,929 Canada 374,659 389,119 386,780 Latin America and the Caribbean 368,462 306,328 256,483 Total revenues $ 7,283,767 $ 7,274,344 $ 6,280,192 December 31, 2023 2022 Long-Lived Assets: United States $ 1,150,736 $ 1,009,188 Canada 167,314 164,284 Latin America and the Caribbean 19,201 16,003 Total long-lived assets $ 1,337,251 $ 1,189,475 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, 2023
SUPPLEMENTAL CASH FLOW INFORMATION	21. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Years Ended December 31, 2023 2022 2021 Interest paid $ 10,115 $ 3,505 $ 913 Income taxes net of refunds $ 188,443 $ 105,736 $ 124,984 Common stock issued for MIS —  —  $ 997 Common stock issued for ACME —  —  $ 2,551 Common stock issued for GWS $ 101,645 —  —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2023
SUBSEQUENT EVENTS	22. SUBSEQUENT EVENTS On January 25, 2024, our Board of Directors approved an increase to the annual cash dividend per share of Common and Class B common stock to $10.80 per share from $9.80 per share, effective with the dividend that will be paid in April 2024. On February 1, 2024, one of our wholly owned subsidiaries acquired Commercial Specialists, Inc., a distributor of HVAC products with annual sales of approximately $13,000, operating from two locations in Cincinnati, Ohio . Consideration for the purchase consisted of $ in cash, shares of Common stock having a fair value of $ , and $ for repayment of indebtedness, net of cash acquired of $ .

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation	Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” the “Company,” “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, 2023, we operated from 690 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, in which we have a controlling interest, the accounts of Carrier InterAmerica Corporation, in which we have an 80% controlling interest, and Carrier has a 20% non-controlling
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 the 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, 2023 and 2022, the allowance for doubtful accounts totaled $21,528 and $18,345, 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 defined 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 rebates 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, 2023 and 2022, we had $18,688 and $22,961, respectively, of rebates recorded as a reduction of inventories. Substantially all vendor rebate receivables are collected within three months 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 inventories 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, 2023 and 2022, we had $22,628 and $19,158, respectively, of cash discounts recorded as a reduction of inventories.
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 material 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 of a business 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, 2024, 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 impairment tests annually and have determined there was 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 it to the asset’s carrying value. For the year ended December 31, 2023, 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. The performance obligation under such contracts is satisfied 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 periods presented. 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, 2023 and 2022 of $21,392 and $21,023, 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 terms of the programs 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, 2023, 2022, and 2021, were $28,236, $25,884, and $21,552, 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 for the years ended December 31, 2023, 2022 and 2021, were $82,600, $86,620, and $70,453, respectively.
Share-Based Compensation	Share-Based Compensation The fair value of stock option and restricted stock awards are expensed net of estimated forfeitures on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of income. Tax benefits resulting from tax deductions in excess of share-based compensation expense are recognized in our provision for income taxes in our consolidated statements of income.
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 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 this threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.
Earnings per Share	Earnings per Share We compute earnings per share using the two-class two-class 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 16 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.
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted Segment Reporting In September 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances segment reporting primarily by expanding the disclosures about significant segment expenses. Under the new standard, an entity will be required to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), how the CODM assesses segment performance and decides how to allocate resources, the title and position of the CODM, among others. This guidance is effective prospectively and is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. Income Taxes In December 2023, the FASB issued guidance that enhances annual income tax disclosures primarily by disaggregating the existing disclosures related to the effective tax rate reconciliation and income taxes paid. Under the new standard, an entity will be required to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. An entity will also be required to disclose the amount of income taxes paid disaggregated by federal, state and foreign, and by individual jurisdictions equal or greater than five percent of total income taxes paid. This guidance is effective prospectively and is effective for annual periods beginning after December 15, 2024. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2023
Components Of Lease Expense	The components of operating lease expense were as follows: Years Ended December 31, 2023 2022 2021 Lease cost $ 112,195 $ 101,578 $ 90,742 Short-term lease cost 10,102 10,226 9,598 Variable lease cost 1,773 1,840 1,868 Sublease income (436 ) (373 ) (332 ) $ 123,634 $ 113,271 $ 101,876
Summary Of Balance Sheet Information Related To Leases	Supplemental balance sheet information related to operating leases were as follows: December 31, 2023 2022 ROU assets $ 368,748 $ 317,314 Current portion $ 95,587 $ 87,120 Operating lease liabilities 276,913 232,144 Total operating $ 372,500 $ 319,264 Weighted Average Remaining Lease Term (in years) 4.8 years 4.8 years Weighted Average Discount Rate 4.91 % 3.85 %
Summary Of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to operating leases were as follows: Years Ended December 31, 2023 2022 2021 Operating cash flows for the measurement of operating lease liabilities $ 110,614 $ 100,092 $ 91,063 Operating lease ROU assets obtained in exchange for operating lease obligations $ 148,196 $ 140,704 $ 141,198
Maturities Of Operating Lease Liabilities	At December 31, 2023, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2024 $ 111,590 2025 95,946 2026 77,896 2027 51,703 2028 32,610 Thereafter 50,528 Total lease payments 420,273 Less imputed interest 47,773 Total lease liability $ 372,500

REVENUES (Tables)

REVENUES (Tables)	12 Months Ended
	Dec. 31, 2023
Summary of Disaggregated Revenue	The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Years Ended December 31, 2023 2022 2021 Primary Geographical Regions: United States $ 6,540,646 $ 6,578,897 $ 5,636,929 Canada 374,659 389,119 386,780 Latin America and the Caribbean 368,462 306,328 256,483 $ 7,283,767 $ 7,274,344 $ 6,280,192 Years Ended December 31, 2023 2022 2021 Major Product Lines: HVAC equipment 69 % 68 % 69 % Other HVAC products 27 % 28 % 28 % Commercial refrigeration products 4 % 4 % 3 % 100 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 536,337 $ 601,167 $ 418,945 Less: distributed and undistributed earnings allocated to restricted common stock 36,966 51,365 37,273 Earnings allocated to Watsco, Inc. shareholders $ 499,371 $ 549,802 $ 381,672 Weighted-average common shares outstanding—Basic 36,406,148 35,564,203 35,244,230 Basic earnings per share for Common and Class B common stock $ 13.72 $ 15.46 $ 10.83 Allocation of earnings for Basic: Common stock $ 455,186 $ 499,792 $ 353,873 Class B common stock 44,185 50,010 27,799 $ 499,371 $ 549,802 $ 381,672 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 536,337 $ 601,167 $ 418,945 Less: distributed and undistributed earnings allocated to restricted common stock 36,932 51,294 37,222 Earnings allocated to Watsco, Inc. shareholders $ 499,405 $ 549,873 $ 381,723 Weighted-average common shares outstanding—Basic 36,406,148 35,564,203 35,244,230 Effect of dilutive stock options 125,535 119,431 179,608 Weighted-average common shares outstanding—Diluted 36,531,683 35,683,634 35,423,838 Diluted earnings per share for Common and Class B common stock $ 13.67 $ 15.41 $ 10.78

OTHER COMPREHENSIVE INCOME (L_2

OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2023
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss	The tax effects allocated to each component of other comprehensive income (loss) were as follows: Years Ended December 31, 2023 2022 2021 Foreign currency translation adjustment $ 7,906 $ (20,305 ) $ 936 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 —  —  (86 ) Reclassification of loss on cash flow hedging instruments into earnings, net of tax —  —  219 Other comprehensive income (loss) $ 7,906 $ (20,305 ) $ 1,225
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, 2023 2022 2021 Foreign currency translation adjustment: Beginning balance $ (47,710 ) $ (34,176 ) $ (34,694 ) Current period other comprehensive income (loss) 5,379 (13,534 ) 518 Ending balance (42,331 ) (47,710 ) (34,176 ) Cash flow hedging instruments: Beginning balance —  —  (173 ) Current period other comprehensive income —  —  43 Reclassification adjustment —  —  130 Ending balance —  —  —  Accumulated other comprehensive loss, net of tax $ (42,331 ) $ (47,710 ) $ (34,176 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2023
Property and Equipment, Net	Property and equipment, net, consists of: December 31, 2023 2022 Land $ 676 $ 676 Buildings and improvements 100,086 93,033 Machinery, vehicles, and equipment 130,958 120,811 Computer hardware and software 101,311 83,354 Furniture and fixtures 24,545 24,029 357,576 321,903 Accumulated depreciation and amortization (221,346 ) (196,479 ) $ 136,230 $ 125,424

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Current: U.S. Federal $ 119,133 $ 71,475 $ 91,162 State 29,749 27,202 20,703 Foreign 14,048 13,574 10,993 162,930 112,251 122,858 Deferred: U.S. Federal (5,581 ) 10,766 6,434 State (1,301 ) 3,695 1,374 Foreign (297 ) (995 ) (1,869 ) (7,179 ) 13,466 5,939 Income tax expense $ 155,751 $ 125,717 $ 128,797
Reconciliation of Effective Income Tax Rate	Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 3.5 4.6 3.5 Excess tax benefits from share-based compensation (1.8 ) (8.6 ) (1.7 ) Tax effects on foreign income 0.2 0.3 0.4 FDII (0.1 ) (0.1 ) (0.1 ) Change in valuation allowance 0.3 0.4 0.8 Tax credits and other (0.8 ) (0.4 ) (0.5 ) Effective income tax rate attributable to Watsco, Inc. 22.3 17.2 23.4 Taxes attributable to non-controlling (2.6 ) (2.0 ) (2.9 ) Effective income tax rate 19.7 % 15.2 % 20.5 %
Significant Components of Net Deferred Tax Liabilities	The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2023 2022 Deferred tax assets: Share-based compensation $ 30,847 $ 27,037 Capitalized inventory costs and adjustments 5,387 4,366 Allowance for doubtful accounts 4,096 3,326 Self-insurance reserves 1,701 1,975 Capitalized research and development costs 6,712 —  Other 7,678 8,711 Net operating loss carryforwards 4,584 3,899 61,005 49,314 Valuation allowance (10,468 ) (8,171 ) Total deferred tax assets 50,537 41,143 Deferred tax liabilities: Deductible goodwill (104,026 ) (88,316 ) Depreciation (24,973 ) (23,806 ) Unremitted earnings of domestic affiliates (5,008 ) (6,618 ) Other (4,390 ) (3,761 ) Total deferred tax liabilities (138,397 ) (122,501 ) Net deferred tax liabilities (1) $ (87,860 ) $ (81,358 ) (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, 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 Additions based on tax positions related to the current year 1,867 Reductions due to lapse of applicable statute of limitations (842 ) Balance at December 31, 2022 7,752 Additions based on tax positions related to the current year 1,215 Reductions due to lapse of applicable statute of limitations (1,093 ) Balance at December 31, 2023 $ 7,874

SHARE-BASED COMPENSATION AND _2

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2023
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, 2023: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2022 559,625 $ 225.01 Granted 54,471 344.05 Exercised (181,289 ) 174.92 Forfeited (21,942 ) 263.84 Expired —  —  Options outstanding at December 31, 2023 410,865 $ 260.82 2.57 $ 68,882 Options exercisable at December 31, 2023 86,340 $ 202.25 1.54 $ 19,532
Summary of Restricted Stock Activity	The following is a summary of restricted stock activity as of and for the year ended December 31, 2023: Shares Weighted- Restricted stock outstanding at December 31, 2022 2,589,261 $ 112.53 Granted 180,617 302.71 Vested (19,401 ) 107.81 Forfeited (13,796 ) 243.17 Restricted stock outstanding at December 31, 2023 2,736,681 $ 124.56
Valuation Assumptions Used for Stock Option Awards	The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2023 2022 2021 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 4.11 % 3.04 % 0.79 % Expected volatility 25.38 % 23.10 % 21.85 % Expected dividend yield 3.15 % 2.84 % 2.97 % Grant date fair value $ 67.32 $ 46.60 $ 34.79
Share-Based Compensation Expense	The following table provides information on share-based compensation expense: Years Ended December 31, 2023 2022 2021 Stock options $ 3,603 $ 3,856 $ 2,908 Restricted stock 26,397 24,965 22,457 Share-based compensation expense $ 30,000 $ 28,821 $ 25,365

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2023
TEC Distribution LLC [Member]
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 Current portion of long-term liabilities (5,855 ) Accounts payable (25,393 ) Accrued expenses and other current liabilities (14,654 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697
Gateway Supply Company, Inc. [Member]
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 GWS based on their respective fair values as of September 1, 2023: Accounts receivable $ 21,159 Inventories 37,098 Other current assets 319 Property and equipment 3,213 Operating lease ROU assets 15,737 Goodwill 25,098 Intangibles 44,000 Other assets 86 Current portion of long-term liabilities (3,633 ) Accounts payable (8,306 ) Accrued expenses and other current liabilities (4,934 ) Operating lease liabilities, net of current portion (12,434 ) Finance lease liabilities, net of current portion (1,431 ) Other liabilities (13,429 ) Total $ 102,543

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2021 $ 434,019 Acquired goodwill 60 Allocation to intangible assets related to 2021 acquisition (596 ) Foreign currency translation adjustment (2,772 ) Balance at December 31, 2022 430,711 Acquired goodwill 25,547 Foreign currency translation adjustment 890 Balance at December 31, 2023 $ 457,148
Indefinite and Finite Lived Intangible Assets	Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2023 2022 Indefinite lived intangible assets - Trade $ 174,779 $ 154,086 Finite lived intangible assets: Customer relationships 7-18 years 110,489 83,943 Patented and unpatented technology 7 years 1,650 1,611 Trade name 10 years 1,150 1,150 Accumulated amortization (69,922 ) (65,599 ) Finite lived intangible assets, net 43,367 21,105 $ 218,146 $ 175,191
Amortization Expense Related to Finite Lived Intangible Assets	Based on the finite lived intangible assets recorded at December 31, 2023, annual amortization for the next five years is expected to approximate the following: 2024 $ 4,600 2025 $ 4,500 2026 $ 4,300 2027 $ 2,900 2028 $ 2,200

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2023
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: Derivative financial instruments Other current assets $ 5 —  $ 5 —  Equity securities Other assets $ 1,044 $ 1,044 —  —  Private equities Other assets $ 1,500 —  —  $ 1,500 Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 678 $ 678 —  —  Private equities Other assets $ 1,000 —  —  $ 1,000

INFORMATION ABOUT GEOGRAPHIC _2

INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	12 Months Ended
	Dec. 31, 2023
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, 2023 2022 2021 Revenues: United States $ 6,540,646 $ 6,578,897 $ 5,636,929 Canada 374,659 389,119 386,780 Latin America and the Caribbean 368,462 306,328 256,483 Total revenues $ 7,283,767 $ 7,274,344 $ 6,280,192 December 31, 2023 2022 Long-Lived Assets: United States $ 1,150,736 $ 1,009,188 Canada 167,314 164,284 Latin America and the Caribbean 19,201 16,003 Total long-lived assets $ 1,337,251 $ 1,189,475

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2023
Supplemental Cash Flow Information	Supplemental cash flow information was as follows: Years Ended December 31, 2023 2022 2021 Interest paid $ 10,115 $ 3,505 $ 913 Income taxes net of refunds $ 188,443 $ 105,736 $ 124,984 Common stock issued for MIS —  —  $ 997 Common stock issued for ACME —  —  $ 2,551 Common stock issued for GWS $ 101,645 —  —

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) Store State Entity	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	4
Allowance for doubtful accounts	$ 21,528	$ 18,345
Capitalized vendor rebates	18,688	22,961
Goodwill and intangible assets impairment	0	0	$ 0
Accrued sales returns	21,392	21,023
Selling, general and administrative expense	1,223,507	1,221,382	1,058,316
Cash discounts recorded as a reduction of inventories	22,628	19,158
Finance lease ROU assets	16,328	14,480
Finance lease liabilities	$ 16,892	$ 14,865
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Operating Lease, Right-of-Use Asset	Operating Lease, Right-of-Use Asset
Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Selling, general and administrative expense	$ 82,600	$ 86,620	70,453
Advertising Expense [Member]
Significant Accounting Policies [Line Items]
Selling, general and administrative expense	$ 28,236	$ 25,884	$ 21,552
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] | Sales Revenue, Net [Member] | Product Concentration Risk [Member]
Significant Accounting Policies [Line Items]
Percentage of Service Revenue	1%	1%	1%
Buildings and Improvements [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Buildings and Improvements [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	40 years
Machinery and Equipment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Machinery and Equipment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Computer Hardware And Software [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Computer Hardware And Software [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Furniture and Fixtures [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	7 years
Watsco, Inc. [Member]
Significant Accounting Policies [Line Items]
Number of locations from which entity operates | Store	690
Number of states in which entity operates | State	42

Leases - Components of Operatin

Leases - Components of Operating Lease Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease cost	$ 112,195	$ 101,578	$ 90,742
Short-term lease cost	10,102	10,226	9,598
Variable lease cost	1,773	1,840	1,868
Sublease income	(436)	(373)	(332)
Total operating lease cost	$ 123,634	$ 113,271	$ 101,876

Leases - Summary Of Balance She

Leases - Summary Of Balance Sheet Information Related To Operating Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Leases
ROU assets	$ 368,748	$ 317,314
Current portion of operating lease liabilities	$ 95,587	$ 87,120
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Long-term Debt and Capital Lease Obligations, Current	Long-term Debt and Capital Lease Obligations, Current
Operating lease liabilities	$ 276,913	$ 232,144
Total operating lease liabilities	$ 372,500	$ 319,264
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities, Current	Liabilities, Current
Weighted Average Remaining Lease Term (in years)
Operating leases	4 years 9 months 18 days	4 years 9 months 18 days
Weighted Average Discount Rate
Operating leases	4.91%	3.85%

Leases - Summary Of Supplementa

Leases - Summary Of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for the measurement of operating lease liabilities	$ 110,614	$ 100,092	$ 91,063
Operating lease ROU assets obtained in exchange for operating lease obligations	$ 148,196	$ 140,704	$ 141,198

Leases - Maturities Of Operatin

Leases - Maturities Of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Maturities of Operating Lease Liabilities
Total lease liability	$ 372,500	$ 319,264
Operating Lease Liabilities [Member]
Maturities of Operating Lease Liabilities
2024	111,590
2025	95,946
2026	77,896
2027	51,703
2028	32,610
Thereafter	50,528
Total lease payments	420,273
Less imputed interest	47,773
Total lease liability	$ 372,500

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating leases not yet commenced	$ 24,000
Maximum [Member]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract		10 years
Minimum [Member]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	1 year

Revenues - Summary of Disaggreg

Revenues - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100%	100%	100%
Revenues	$ 7,283,767	$ 7,274,344	$ 6,280,192
United States [Member]
Disaggregation of Revenue [Line Items]
Revenues	6,540,646	6,578,897	5,636,929
Canada [Member]
Disaggregation of Revenue [Line Items]
Revenues	374,659	389,119	386,780
Latin America and the Caribbean [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 368,462	$ 306,328	$ 256,483
HVAC Equipment [Member]
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	69%	68%	69%
Other HVAC Products [Member]
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	27%	28%	28%
Commercial Refrigeration Products [Member]
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	4%	4%	3%

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 536,337	$ 601,167	$ 418,945
Basic earnings per share for Common and Class B common stock	$ 13.72	$ 15.46	$ 10.83
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 536,337	$ 601,167	$ 418,945
Diluted earnings per share for Common and Class B common stock	$ 13.67	$ 15.41	$ 10.78
Class B Common Stock [Member]
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 44,185	$ 50,010	$ 27,799
Common Stock [Member]
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	455,186	499,792	353,873
Common Stock [Member] | Class B Common Stock [Member]
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	536,337	601,167	418,945
Less: distributed and undistributed earnings allocated to restricted common stock	36,966	51,365	37,273
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 499,371	$ 549,802	$ 381,672
Weighted-average common shares outstanding—Basic	36,406,148	35,564,203	35,244,230
Basic earnings per share for Common and Class B common stock	$ 13.72	$ 15.46	$ 10.83
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 536,337	$ 601,167	$ 418,945
Less: distributed and undistributed earnings allocated to restricted common stock	36,932	51,294	37,222
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 499,405	$ 549,873	$ 381,723
Weighted-average common shares outstanding—Basic	36,406,148	35,564,203	35,244,230
Effect of dilutive stock options	125,535	119,431	179,608
Weighted-average common shares outstanding—Diluted	36,531,683	35,683,634	35,423,838
Diluted earnings per share for Common and Class B common stock	$ 13.67	$ 15.41	$ 10.78

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	3,221,259	3,234,939	2,566,990
Anti-dilutive stock options excluded from earnings per share	18,489	190,462	40,529

Other Comprehensive Income (L_3

Other Comprehensive Income (Loss) - Schedule of Tax Effects Allocated to Each Component of Other Comprehensive income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 7,906	$ (20,305)	$ 936
Unrealized gain on cash flow hedging instruments	0	0	97
Income tax expense	0	0	(27)
Unrealized gain on cash flow hedging instruments, net of tax	0	0	70
Reclassification of loss on cash flow hedging instruments into earnings	0	0	305
Income tax benefit	0	0	(86)
Reclassification of loss on cash flow hedging instruments into earnings, net of tax	0	0	219
Other comprehensive income (loss)	$ 7,906	$ (20,305)	$ 1,225

Other Comprehensive Income (L_4

Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (47,710)	$ (34,176)
Ending balance	(42,331)	(47,710)	$ (34,176)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(47,710)	(34,176)	(34,694)
Current period other comprehensive income (loss)	5,379	(13,534)	518
Ending balance	(42,331)	(47,710)	(34,176)
Cash Flow Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	0	0	(173)
Current period other comprehensive income (loss)	0	0	43
Reclassification adjustment	0	0	130
Ending balance	$ 0	$ 0	$ 0

Supplier Concentration - Additi

Supplier Concentration - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Concentration Risk [Line Items]
Reduction in inventories related to pricing claim advances	$ 85,913	$ 92,402
Carrier and Its Affiliates [Member]
Concentration Risk [Line Items]
Reduction in inventories related to pricing claim advances	$ 63,546	$ 69,814
Carrier and Its Affiliates [Member] | Supplier Concentration Risk [Member] | Cost of Goods, Total [Member]
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	65%	60%	61%
Top Ten Suppliers [Member] | Supplier Concentration Risk [Member] | Cost of Goods, Total [Member]
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	86%	84%	83%

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 357,576	$ 321,903
Accumulated depreciation and amortization	(221,346)	(196,479)
Property and equipment, net	136,230	125,424
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	676	676
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	100,086	93,033
Machinery, Vehicles and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	130,958	120,811
Computer Hardware and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	101,311	83,354
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,545	$ 24,029

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 30,767	$ 26,974	$ 22,566

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended
	Mar. 16, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Payment of fees related to revolving credit agreement		$ 844	$ 0	$ 22
Borrowings under revolving credit agreement		$ 15,400	$ 0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit agreement, maturity date		Mar. 16, 2028
Payment of fees related to revolving credit agreement		$ 844
Borrowings under revolving credit agreement		$ 15,400
Maximum capacity under revolving credit agreement	$ 600,000
Seasonal discretionary maximum borrowing capacity under revolving credit agreement	500,000
Line of credit facility term		5 years
Revolving Credit Facility [Member] | Swingline Subfacility [Member]
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	125,000
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	10,000
Revolving Credit Facility [Member] | Alternative Currency Sublimit [Member]
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	75,000
Revolving Credit Facility [Member] | Mexican Borrowing Sublimit [Member]
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	10,000
Revolving Credit Facility [Member] | Prior Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement	560,000
Repayment under prior revolving credit agreement	$ 235,500
Revolving Credit Facility [Member] | Unused Commitment Fee [Member]
Debt Instrument [Line Items]
Unused commitment fee percentage		0.00125
Revolving Credit Facility [Member] | Maximum [Member] | Unused Commitment Fee [Member]
Debt Instrument [Line Items]
Unused commitment fee percentage		0.00275
Revolving Credit Facility [Member] | Minimum [Member] | Unused Commitment Fee [Member]
Debt Instrument [Line Items]
Unused commitment fee percentage		0.00125
Prime Rate or Term SOFR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread		0
Prime Rate or Term SOFR [Member] | Revolving Credit Facility [Member] | Additional Variable Interest Rate Spread One [Member]
Debt Instrument [Line Items]
Basis spread		1%
Prime Rate or Term SOFR [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread		0.0050
Prime Rate or Term SOFR [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread		0
Federal Funds Effective Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread		0
Federal Funds Effective Rate [Member] | Revolving Credit Facility [Member] | Additional Variable Interest Rate Spread One [Member]
Debt Instrument [Line Items]
Basis spread		0.50%
Federal Funds Effective Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread		0.0050
Federal Funds Effective Rate [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread		0
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread		0.0100
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member] | Additional Variable Interest Rate Spread One [Member]
Debt Instrument [Line Items]
Basis spread		0.10%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread		0.01375
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread		0.0100
Daily Simple SOFR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread		0.0100
Daily Simple SOFR [Member] | Revolving Credit Facility [Member] | Additional Variable Interest Rate Spread One [Member]
Debt Instrument [Line Items]
Basis spread		0.10%
Daily Simple SOFR [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread		0.01375
Daily Simple SOFR [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread		0.0100

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Thousands			12 Months Ended
	Aug. 16, 2022	Mar. 11, 2021 USD ($) Employee	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
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%	100%	100%
Valuation allowance			$ 10,468	$ 8,171
Gross unrecognized tax benefits			7,874	7,752	$ 6,727	$ 6,505
Unrecognized tax benefits that, if recognized, would affect the effective tax rate			6,559	6,457
Estimated accrued interest and penalties resulting from unrecognized tax benefits			1,471	$ 1,343
Foreign subsidiaries earnings			$ 190,000
Effective income tax rate reconciliation, Percent			19.70%	15.20%	20.50%
America Rescue Plan Act of 2021 [Member]
Income Taxes [Line Items]
Number Of Additional Most Highly Compensated Individuals | Employee		5
Annual Cap On Compensation		$ 1,000
Inflation Reduction Act [Member]
Income Taxes [Line Items]
Percentage of excise tax on stock repurchases	1%		1%
Effective income tax rate reconciliation, Percent	15%
State and other [Member]
Income Taxes [Line Items]
Net operating loss carry forwards			$ 29,881
State and other [Member] | Minimum [Member]
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2026
Foreign [Member]
Income Taxes [Line Items]
Net operating loss carry forwards			$ 17,723
Foreign [Member] | Maximum [Member]
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2043
Foreign [Member] | Minimum [Member]
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2035
Federal [Member]
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, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
U.S. Federal	$ 119,133	$ 71,475	$ 91,162
State	29,749	27,202	20,703
Foreign	14,048	13,574	10,993
Current	162,930	112,251	122,858
Deferred:
U.S. Federal	(5,581)	10,766	6,434
State	(1,301)	3,695	1,374
Foreign	(297)	(995)	(1,869)
Deferred	(7,179)	13,466	5,939
Income tax expense	$ 155,751	$ 125,717	$ 128,797

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Effective Income Tax Rate [Line Items]
U.S. federal statutory rate	21%	21%	21%
State income taxes, net of federal benefit and other	3.50%	4.60%	3.50%
Excess tax benefits from share-based compensation	(1.80%)	(8.60%)	(1.70%)
Tax effects on foreign income	0.20%	0.30%	0.40%
FDII	(0.10%)	(0.10%)	(0.10%)
Change in valuation allowance	0.30%	0.40%	0.80%
Tax credits and other	(0.80%)	(0.40%)	(0.50%)
Effective income tax rate attributable to Watsco, Inc.	22.30%	17.20%	23.40%
Taxes attributable to non-controlling interest	(2.60%)	(2.00%)	(2.90%)
Effective income tax rate	19.70%	15.20%	20.50%

Significant Components of Net D

Significant Components of Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2023	Dec. 31, 2022
Components of Net Deferred Tax Liabilities [Line Items]
Share-based compensation		$ 30,847	$ 27,037
Capitalized inventory costs and adjustments		5,387	4,366
Allowance for doubtful accounts		4,096	3,326
Self-insurance reserves		1,701	1,975
Capitalized research and development costs		6,712	0
Other		7,678	8,711
Net operating loss carryforwards		4,584	3,899
Total deferred tax assets, gross		61,005	49,314
Valuation allowance		(10,468)	(8,171)
Total deferred tax assets		50,537	41,143
Deductible goodwill		(104,026)	(88,316)
Depreciation		(24,973)	(23,806)
Unremitted earnings of domestic affiliates		(5,008)	(6,618)
Other		(4,390)	(3,761)
Total deferred tax liabilities		(138,397)	(122,501)
Net deferred tax liabilities	[1]	$ (87,860)	$ (81,358)
[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, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Contingency [Line Items]
Beginning balance	$ 7,752	$ 6,727	$ 6,505
Additions based on tax positions related to the current year	1,215	1,867	1,143
Reductions due to lapse of applicable statute of limitations	(1,093)	(842)	(921)
Ending balance	$ 7,874	$ 7,752	$ 6,727

Share-Based Compensation and _3

Share-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 15, 2022 USD ($) shares	Dec. 31, 2023 USD ($) Age $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding | shares		410,865	559,625
Income tax benefit		$ 155,751	$ 125,717	$ 128,797
Payment, tax withholding, share-based payment arrangement		2,828	87,107	1,092
Common stock contribution to 401(k) plan		8,862	6,746	5,154
Current federal tax expense (benefit)		$ 119,133	$ 71,475	$ 91,162
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that remained available for purchase | shares		1,500,000
Shares reserved for future grant | shares		436,304
Number of days of service required for an employee to purchase shares		90 days
Discount to employees to purchase shares		5%
Shares purchased under ESPP | shares		4,096	4,101	3,501
Average price of the shares purchased by employees | $ / shares		$ 306.8	$ 262.57	$ 239.11
Additional shares issued resulting from cash dividends reinvested in common stock | shares		3,079	3,365	2,962
Net proceeds from shares purchased under ESPP		$ 2,292	$ 1,997	$ 1,676
2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding | shares		173,120
2014 Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest		2 years
2014 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest		4 years
401(k) Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock contribution to 401(k) Plan, shares | shares		35,533	21,560	22,752
Common stock contribution to 401(k) plan		$ 8,862	$ 6,746	$ 5,154
2021 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price that share-based compensation awards are granted at		100%
Aggregate shares of common stock that remained available for purchase | shares		2,500,000
Shares reserved for future grant | shares		2,328,888
2021 Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest		2 years
2021 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest		4 years
2021 Plan [Member] | Common and Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that remained available for purchase | shares		7,327
Shares awarded under the plan, net of cancellations | shares		178,439
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of restricted stock | $ / shares		$ 302.71	$ 290.55	$ 254.73
Market value of vested shares		$ 5,745	$ 271,781	$ 3,646
Unrecognized share-based compensation expense		$ 219,771
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		11 years 10 months 24 days
Number of shares vested | shares		19,401
Restricted Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 52,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation agreement		6 years
Restricted stock obligated to issue in connection with incentive compensation agreement | shares		23,685
Restricted Stock [Member] | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 15,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		3 years
Age of Chief Executive Officer when restricted stock vests | Age		86
Restricted Stock [Member] | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 21,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		5 years
Age of Chief Executive Officer when restricted stock vests | Age		88
Restricted Stock [Member] | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 16,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		6 years
Age of Chief Executive Officer when restricted stock vests | Age		89
Restricted Stock [Member] | President [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 50,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation agreement		20 years
Restricted stock obligated to issue in connection with incentive compensation agreement | shares		29,882
Restricted Stock [Member] | President [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 49,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		20 years
Age of president when restricted shares vests | Age		62
Restricted Stock [Member] | President [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 1,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		22 years
Age of president when restricted shares vests | Age		64
Restricted Stock [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of employee when restricted stock vests | Age		62
Restricted Stock [Member] | Various Key Leaders [Member]
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		7,000
Restricted Stock [Member] | Various Key Leaders [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		5 years
Restricted Stock [Member] | Various Key Leaders [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		12 years
Restricted Stock [Member] | Common and Class B Common Stock [Member]
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		7,585
Payment, tax withholding, share-based payment arrangement		$ 2,215
Restricted Stock [Member] | Class B Common Stock [Member]
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			320,468	3,858
Payment, tax withholding, share-based payment arrangement			$ 87,049	$ 1,078
Restricted Stock [Member] | Class B Common Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market value of vested shares	$ 265,106
Shares withheld as payment for tax withholdings related to share based compensation, shares | shares	311,408
Payment, tax withholding, share-based payment arrangement	$ 104,319
Cash benefit related to vesting of restricted stock previously granted to our CEO		67,000
Current federal tax expense (benefit)		49,000
Number of shares vested | shares	975,622
Shares retained net of tax withholdings | shares	664,214
Cash payment related to tax withholding for share based compensation	$ 19,700
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit		6,617	2,658	3,595
Total intrinsic value of stock options exercised		30,515	13,046	16,903
Cash received from the exercise of stock options		26,835	18,425	19,338
Unrecognized share-based compensation expense		$ 7,650
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement		1 year 10 months 24 days
Fair value of stock options vested		$ 2,751	$ 2,721	$ 2,621
Employee Stock Option | Common Stock [Member]
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		17,687	1,592	4,040
Payment, tax withholding, share-based payment arrangement		$ 5,489	$ 438	$ 1,179

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding beginning balance | shares	559,625
Options, Granted | shares	54,471
Options, Exercised | shares	(181,289)
Options, Forfeited | shares	(21,942)
Options, Expired | shares	0
Options, Outstanding ending balance | shares	410,865
Options, Exercisable | shares	86,340
Weighted-Average Exercise Price, Outstanding beginning balance | $ / shares	$ 225.01
Weighted-Average Exercise Price, Granted | $ / shares	344.05
Weighted-Average Exercise Price, Exercised | $ / shares	174.92
Weighted-Average Exercise Price, Forfeited | $ / shares	263.84
Weighted-Average Exercise Price, Expired | $ / shares	0
Weighted-Average Exercise Price, Outstanding ending balance | $ / shares	260.82
Weighted-Average Exercise Price, Exercisable | $ / shares	$ 202.25
Weighted-Average Remaining Contractual Term (in years), Outstanding	2 years 6 months 25 days
Weighted-Average Remaining Contractual Term (in years), Exercisable	1 year 6 months 14 days
Aggregate Intrinsic Value, Outstanding | $	$ 68,882
Aggregate Intrinsic Value, Exercisable | $	$ 19,532

Summary of Restricted Stock Act

Summary of Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Restricted beginning balance	2,589,261
Shares, Granted	180,617
Shares, Vested	(19,401)
Shares, Forfeited	(13,796)
Shares, Restricted ending balance	2,736,681	2,589,261
Weighted-Average Grant Date Fair Value, Restricted beginning balance	$ 112.53
Weighted-Average Grant Date Fair Value, Granted	302.71	$ 290.55	$ 254.73
Weighted-Average Grant Date Fair Value, Vested	107.81
Weighted-Average Grant Date Fair Value, Forfeited	243.17
Weighted-Average Grant Date Fair Value, Restricted ending balance	$ 124.56	$ 112.53

Weighted-Average Assumptions Us

Weighted-Average Assumptions Used for Stock Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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	4.11%	3.04%	0.79%
Expected volatility	25.38%	23.10%	21.85%
Expected dividend yield	3.15%	2.84%	2.97%
Grant date fair value	$ 67.32	$ 46.6	$ 34.79

Share-Based Compensation Expens

Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 30,000	$ 28,821	$ 25,365
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	3,603	3,856	2,908
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 26,397	$ 24,965	$ 22,457

Investment in Unconsolidated _2

Investment in Unconsolidated Entity - Additional Information (Detail) $ in Thousands		12 Months Ended
	Dec. 18, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jul. 28, 2023 USD ($)
Schedule of Equity Method Investments [Line Items]
Ownership percentage needed for right to purchase up to 100%		85%
Total number of board members		6
Number of board members that can be appointed based on ownership		2
Additional equity interest in the investee acquired	0.30%
Proceeds from non-controlling interest for investment in unconsolidated entity		$ 570	$ 0	$ 0
Investment in unconsolidated entity		$ 2,849	$ 0	$ 0
Carrier Enterprise LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest		38.40%
Carrier Enterprise LLC [Member] | Shareholders Agreement [Member]
Schedule of Equity Method Investments [Line Items]
Maximum amount eligible to be invested as per agreement					$ 125,000
Percentage of maximum shares eligible to fund purchase as per agreement					80%
Carrier Enterprise LLC [Member] | RSI Minority Holders [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest		6.20%
Carrier Enterprise LLC [Member] | RSI Majority Holders [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest		55.40%
Russell Sigler Inc [Member] | Carrier Enterprise I [Member] | Ownership Interest Before Additional Ownership Interest Acquired [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	38.10%
Russell Sigler Inc [Member] | Carrier Enterprise I [Member] | Ownership Interest After Additional Ownership Interest Acquired [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	38.40%
Russell Sigler Inc [Member] | Carrier Enterprise I [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from non-controlling interest for investment in unconsolidated entity	$ 570
Contribution to investment in unconsolidated entity by controlling interest	2,279
Investment in unconsolidated entity	$ 2,849

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands	Sep. 01, 2023 USD ($) Location shares	Mar. 03, 2023 USD ($)	Aug. 20, 2021 USD ($) Location shares	May 07, 2021 USD ($) Location shares	Apr. 09, 2021 USD ($) Location
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
Repayment of indebtedness					$ 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]
Intangible assets acquired					$ 15,700
TEC Distribution LLC [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets 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
Stock issued for acquisition | shares			3,627
Fair value of equity shares issued or issuable			$ 997
Goodwill and intangibles acquired			1,041
Cash acquired			204
Intangible assets acquired			$ 596
Number of years goodwill is deductible for tax purposes			15 years
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]
Intangible assets acquired			$ 173
Amortization period			18 years
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
Stock issued for acquisition | shares				8,492
Fair value of equity shares issued or issuable				$ 2,551
Goodwill and intangibles acquired				$ 3,710
Businesss acquistion goodwill expected period of tax deduction				15 years
Cash acquired				$ 1,340
Intangible assets acquired				2,124
Purchase price less certain average revolving indebtedness				22,855
Repayment of indebtedness				3,141
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
Gateway Supply Company, Inc. [Member]
Business Acquisition [Line Items]
Cash consideration for business acquisition	$ 4,000
Stock issued for acquisition | shares	280,215
Fair value of equity shares issued or issuable	$ 101,645
Goodwill and intangibles acquired	69,098
Cash acquired	3,102
Intangible assets acquired	44,000
Annual sales	$ 180,000
Stock issued for acquisition / shares subject to a contractual restriction | shares	21,228
Gateway Supply Company, Inc. [Member] | NORTH CAROLINA [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location	1
Gateway Supply Company, Inc. [Member] | SOUTH CAROLINA [Member]
Business Acquisition [Line Items]
Number of locations in which the company operates | Location	15
Gateway Supply Company, Inc. [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 25,400
Finite-Lived Intangible Assets, Remaining Amortization Period	18 years
Gateway Supply Company, Inc. [Member] | Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 18,600
Capitol District Supply Co Inc [Member]
Business Acquisition [Line Items]
Cash consideration for business acquisition		$ 1,217
Goodwill and intangibles acquired		$ 1,055
Businesss acquistion goodwill expected period of tax deduction		15 years
Cash acquired		$ 144
Intangible assets acquired		606
Repayment of indebtedness		1,851
Annual sales		13,000
Capitol District Supply Co Inc [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 176
Finite-Lived Intangible Assets, Remaining Amortization Period		18 years
Capitol District Supply Co Inc [Member] | Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 430

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 01, 2023	Dec. 31, 2022	Apr. 09, 2021
Business Acquisition [Line Items]
Operating lease ROU assets	$ 368,748		$ 317,314
Operating lease liabilities, net of current portion	$ (276,913)		$ (232,144)
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
Current portion of long-term liabilities				(5,855)
Accounts payable				(25,393)
Accrued expenses and other current liabilities				(14,654)
Operating lease liabilities, net of current portion				(48,046)
Total				$ 106,697
Gateway Supply Company, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable		$ 21,159
Inventories		37,098
Other current assets		319
Property and equipment		3,213
Operating lease ROU assets		15,737
Goodwill		25,098
Intangibles		44,000
Other assets		86
Current portion of long-term liabilities		(3,633)
Accounts payable		(8,306)
Accrued expenses and other current liabilities		(4,934)
Operating lease liabilities, net of current portion		(12,434)
Finance lease liabilities, net of current portion		(1,431)
Other liabilities		(13,429)
Total		$ 102,543

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 430,711	$ 434,019
Acquired goodwill	25,547	60
Foreign currency translation adjustment	890	(2,772)
Allocation to intangible assets related to acquisition		(596)
Goodwill, Ending Balance	$ 457,148	$ 430,711

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill And Intangible Assets [Line Items]
Amortization expense related to finite lived intangible assets	$ 4,323	$ 4,709	$ 5,561

Intangible Assets (Detail)

Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible Assets [Line Items]
Indefinite lived intangible assets - Trade names, trademarks, and distribution rights	$ 174,779	$ 154,086
Finite lived intangible assets:
Accumulated amortization	(69,922)	(65,599)
Finite lived intangible assets, net	43,367	21,105
Intangible assets, net	218,146	175,191
Customer Relationships [Member]
Finite lived intangible assets:
Finite lived intangible assets	$ 110,489	83,943
Customer Relationships [Member] | Maximum [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	18 years
Customer Relationships [Member] | Minimum [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Trade Name [Member]
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	$ 1,650	$ 1,611

Amortization Expense Related to

Amortization Expense Related to Finite Lived Intangible Assets (Detail) $ in Thousands	Dec. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 4,600
2025	4,500
2026	4,300
2027	2,900
2028	$ 2,200

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands			12 Months Ended
	Aug. 06, 2021	Aug. 23, 2018	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Aug. 16, 2022	Sep. 30, 1999
Stockholders Equity Note [Line Items]
Preferred stock outstanding			0	0	0
Net proceeds from the sale of Common stock			$ 15,179	$ 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
Inflation Reduction Act [Member]
Stockholders Equity Note [Line Items]
Percentage of excise tax on stock repurchases			1%			1%
ATM Program [Member]
Stockholders Equity Note [Line Items]
Net proceeds from the sale of Common stock			$ 15,179
Maximum aggregate offering amount of stock	$ 300,000
Direct costs			375
Available for sale under ATM Program			$ 284,745
Number of shares sold and issued under ATM			45,000
Class B Common Stock [Member]
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			ten
Treasury stock, shares			48,263	48,263	48,263
Common Stock [Member]
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			one
Percentage of Board entitled to elect			25%
Aggregate shares repurchased under stock repurchase plan			6,322,650	6,322,650	6,322,650

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Standby Letters of Credit [Member]
Financial Instrument [Line Items]
Fair value of contingent liability	$ 150	$ 150
Performance Bonds [Member]
Financial Instrument [Line Items]
Fair value of contingent liability	$ 13,600	$ 13,700

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - Foreign Exchange Forward And Option Contracts and Not Designated As Hedging Instrument Economic Hedge [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 2,800
Contract expiring terms	2024-01
Loss from foreign currency forward and option contracts not designated as hedging instruments	$ (2,791)	$ (917)	$ (237)

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Current Assets [Member]
Assets:
Derivative financial instruments	$ 5
Other assets [Member]
Assets:
Equity securities	1,044	$ 678
Private equities	1,500	1,000
Fair Value Measurements, Level 1 [Member] | Other assets [Member]
Assets:
Equity securities	1,044	678
Fair Value Measurements, Level 2 [Member] | Other Current Assets [Member]
Assets:
Derivative financial instruments	5
Fair Value Measurements, Level 3 [Member] | Other assets [Member]
Assets:
Private equities	$ 1,500	$ 1,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 9,747	$ 12,256
Maximum exposure to loss related to involvement with variable interest entity	6,900
Non-cancelable purchase obligations for goods	50,000
Variable interest entity cash deposit to cover contingency	3,600
Carrier and Its Affiliates [Member]
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 48,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	$ 369,396	$ 456,128
Revenues from sales to Carrier and its affiliates	7,283,767	7,274,344	$ 6,280,192
Greenberg Traurig, P.A. [Member] | Customary Fees for Legal Services [Member]
Related Party Transaction [Line Items]
Fees for related party transaction	192	186	225
Greenberg Traurig, P.A. [Member] | Customary Fees for Legal Services [Member] | Related Party [Member] | Accounts Payable [Member]
Related Party Transaction [Line Items]
Amount payable to related party	3	1
Carrier and Its Affiliates [Member] | Supplier Concentration Risk [Member] | Related Party [Member]
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	100,000	88,000
Revenues from sales to Carrier and its affiliates	$ 110,000	$ 97,000	$ 108,000
Carrier and Its Affiliates [Member] | Supplier Concentration Risk [Member] | Cost of Goods, Total [Member]
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	65%	60%	61%

Revenues and Long-Lived Assets

Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Geographic Area Information [Line Items]
Revenues	$ 7,283,767	$ 7,274,344	$ 6,280,192
Long-Lived Assets	1,337,251	1,189,475
United States [Member]
Geographic Area Information [Line Items]
Revenues	6,540,646	6,578,897	5,636,929
Long-Lived Assets	1,150,736	1,009,188
Canada [Member]
Geographic Area Information [Line Items]
Revenues	374,659	389,119	386,780
Long-Lived Assets	167,314	164,284
Latin America and Caribbean [Member]
Geographic Area Information [Line Items]
Revenues	368,462	306,328	$ 256,483
Long-Lived Assets	$ 19,201	$ 16,003

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flow Supplemental Disclosures [Line Items]
Interest paid	$ 10,115	$ 3,505	$ 913
Income taxes net of refunds	188,443	105,736	124,984
Makdad Industrial Supply Co., Inc [Member]
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0	0	997
Acme Refrigeration of Baton Rouge LLC [Member]
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0	0	2,551
Gateway Supply Company, Inc. [Member]
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	$ 101,645	$ 0	$ 0

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ / shares in Units, $ in Thousands	Feb. 01, 2024 USD ($) Location shares	Jan. 25, 2024 $ / shares
Commercial Specialists, Inc., [Member]
Subsequent Event [Line Items]
Number of locations in which the company operates | Location	2
Stock issued for acquisition | shares	1,904
Fair value of equity shares issued or issuable	$ 750
Cash consideration for business acquisition	6,042
Cash acquired	1,292
Annual sales	13,000
Repayments of debt	$ 562
Common Stock [Member]
Subsequent Event [Line Items]
Date of Board Approval for Increase in Annual Cash Dividend Rate		Jan. 25, 2024
Effective date of increase in cash dividend rate		2024-04
Common Stock [Member] | Previous Rate [Member]
Subsequent Event [Line Items]
Cash dividend, common stock and Class B common stock current rate | $ / shares		$ 9.8
Common Stock [Member] | Current Rate [Member]
Subsequent Event [Line Items]
Cash dividend, common stock and Class B common stock current rate | $ / shares		$ 10.8