Watsco (WSO) 10-K24 Feb 232022 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2022	Feb. 21, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
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 Tax Identification Number	59-0778222
Entity Address, City or Town	Miami
Entity Address, Postal Zip Code	33133
Entity Address, Address Line One	2665 South Bayshore Drive
Entity Address, Address Line Two	Suite 901
Entity Address, State or Province	FL
City Area Code	305
Local Phone Number	714-4100
Entity 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			$ 8,072
ICFR Auditor Attestation Flag	false
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	Miami, FL
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	WSO
Security Exchange Name	NYSE
Title of 12(b) Security	Common stock, $0.50 par value
Entity Common Stock, Shares Outstanding		33,288,922
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		5,539,079

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues	$ 7,274,344	$ 6,280,192	$ 5,054,928
Cost of sales	5,244,055	4,612,647	3,832,107
Gross profit	2,030,289	1,667,545	1,222,821
Selling, general and administrative expenses	1,221,382	1,058,316	833,051
Other income	22,671	19,299	11,264
Operating income	831,578	628,528	401,034
Interest expense, net	2,165	996	1,239
Income before income taxes	829,413	627,532	399,795
Income taxes	125,717	128,797	76,623
Net income	703,696	498,735	323,172
Less: net income attributable to non-controlling interest	102,529	79,790	53,593
Net income attributable to Watsco, Inc.	$ 601,167	$ 418,945	$ 269,579
Earnings per share for Common and Class B common stock:
Basic	$ 15.46	$ 10.83	$ 7.03
Diluted	$ 15.41	$ 10.78	$ 7.01

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net income	$ 703,696	$ 498,735	$ 323,172
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustment	(20,305)	936	6,272
Unrealized gain on cash flow hedging instruments	0	70	880
Reclassification of loss (gain) on cash flow hedging instruments into earnings	0	219	(418)
Other comprehensive (loss) income	(20,305)	1,225	6,734
Comprehensive income	683,391	499,960	329,906
Less: comprehensive income attributable to non-controlling interest	95,758	80,324	56,144
Comprehensive income attributable to Watsco, Inc.	$ 587,633	$ 419,636	$ 273,762

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 147,505	$ 118,268
Accounts receivable, net	747,110	698,456
Inventories, net	1,370,173	1,115,469
Other current assets	33,951	29,207
Total current assets	2,298,739	1,961,400
Property and equipment, net	125,424	111,019
Operating lease right-of-use assets	317,314	268,528
Goodwill	430,711	434,019
Intangible assets, net	175,191	186,896
Investment in unconsolidated entity	132,802	114,808
Other assets	8,033	9,191
Total assets	3,488,214	3,085,861
Current liabilities:
Current portion of long-term obligations	90,597	84,501
Borrowings under revolving credit agreement (Note 8)	56,400	0
Accounts payable	456,128	364,185
Accrued expenses and other current liabilities	303,397	278,036
Total current liabilities	906,522	726,722
Long-term obligations:
Borrowings under revolving credit agreement (Note 8)	0	89,000
Operating lease liabilities, net of current portion	232,144	187,024
Finance lease liabilities, net of current portion	11,388	9,189
Total long-term obligations	243,532	285,213
Deferred income taxes and other liabilities	89,882	76,511
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	973,060	1,003,932
Accumulated other comprehensive loss, net of tax	(47,710)	(34,176)
Retained earnings	1,029,516	760,796
Treasury stock, at cost, 4,823,988 shares of Common stock and 48,263 shares of Class B common stock at both December 31, 2022 and 2021, respectively	(87,440)	(87,440)
Total Watsco, Inc. shareholders' equity	1,889,237	1,664,948
Non-controlling interest	359,041	332,467
Total shareholders' equity	2,248,278	1,997,415
Total liabilities and shareholders' equity	3,488,214	3,085,861
Common Stock
Watsco, Inc. shareholders' equity:
Common stock	19,054	18,941
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock	$ 2,757	$ 2,895

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
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
Common stock, par value	$ 0.5	$ 0.5
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares outstanding	38,108,752	37,881,247
Treasury stock, shares	4,823,988	4,823,988
Class B Common Stock
Common stock, par value	$ 0.5	$ 0.5
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares outstanding	5,513,386	5,790,636
Treasury stock, shares	48,263	48,263

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	TEC Distribution LLC [Member]	N&S Supply of Fishkill, Inc. [Member]	Makdad Industrial Supply Co Inc [Member]	Acme Refrigeration of Baton Rouge LLC [Member]	Common Stock Makdad Industrial Supply Co Inc [Member]	Common Stock Acme Refrigeration of Baton Rouge LLC [Member]	Common Stock, Class B Common Stock and Preferred Stock	Common Stock, Class B Common Stock and Preferred Stock Makdad Industrial Supply Co Inc [Member]	Common Stock, Class B Common Stock and Preferred Stock Acme Refrigeration of Baton Rouge LLC [Member]	Paid-In Capital	Paid-In Capital N&S Supply of Fishkill, Inc. [Member]	Paid-In Capital Makdad Industrial Supply Co Inc [Member]	Paid-In Capital Acme Refrigeration of Baton Rouge LLC [Member]	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest	Non-controlling Interest TEC Distribution LLC [Member]
Beginning balance at Dec. 31, 2019	$ 1,714,767							$ 21,533			$ 907,877				$ (39,050)	$ 632,507	$ (87,440)	$ 279,340
Beginning balance (in shares) at Dec. 31, 2019								38,194,056
Net income	323,172															269,579		53,593
Other comprehensive gain (loss)	6,734														4,183			2,551
Issuances of restricted shares of common stock								$ 92			(92)
Issuances of restricted shares of common stock (in shares)								184,265
Forfeitures of restricted shares of common stock								$ (2)			2
Forfeitures of restricted shares of common stock (in shares)								(3,589)
Common stock contribution to 401(k) plan	4,543							$ 13			4,530
Common stock contribution to 401(k) plan (in shares)								25,216
Stock issuances from exercise of stock options and employee stock purchase plan	21,600							$ 72			21,528
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)								144,894
Retirement of common stock	(4,642)							$ (11)			(4,631)
Retirement of common stock (in shares)								(23,148)
Share-based compensation	21,862										21,862
Distributions to non-controlling interest	(42,401)																	(42,401)
Cash dividends declared and paid on Common and Class B common stock	(265,713)															(265,713)
Adjustment to fair value of Common stock issued for N&S Supply of Fishkill, Inc.			$ (161)									$ (161)
Ending balance at Dec. 31, 2020	1,779,761							$ 21,697			950,915				(34,867)	636,373	(87,440)	293,083
Ending balance (in shares) at Dec. 31, 2020								38,521,694
Net income	498,735															418,945		79,790
Other comprehensive gain (loss)	1,225														691			534
Issuances of 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
Distributions to non-controlling interest	(61,980)																	(61,980)
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
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
Distributions to non-controlling interest	(69,184)																	(69,184)
Cash dividends declared and paid on Common and Class B common stock	(332,447)															(332,447)
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

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash dividends declared and paid, common stock	$ 8.55	$ 7.625	$ 6.925

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 703,696	$ 498,735	$ 323,172
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	31,683	28,127	25,908
Share-based compensation	28,821	25,365	22,129
Deferred income tax provision	13,466	5,939	40
Provision for doubtful accounts	8,539	6,888	2,688
Non-cash contribution to 401(k) plan	6,746	5,154	4,543
(Gain) loss on sale of property and equipment	(1,624)	350	17
Other income from investment in unconsolidated entity	(22,671)	(19,299)	(11,264)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(60,154)	(130,414)	(3,559)
Inventories, net	(259,860)	(243,660)	139,929
Accounts payable and other liabilities	121,993	182,819	33,936
Other, net	1,329	(10,438)	(3,160)
Net cash provided by operating activities	571,964	349,566	534,379
Cash flows from investing activities:
Capital expenditures	(35,652)	(25,464)	(16,436)
Business acquisitions, net of cash acquired	(47)	(129,462)	0
Proceeds from sale of equity securities	0	5,993	0
Other investment	0	(1,000)	0
Proceeds from sale of property and equipment	1,863	1,356	94
Net cash used in investing activities	(33,836)	(148,577)	(16,342)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(332,447)	(294,522)	(265,713)
Repurchases of common stock to satisfy employee withholding tax obligations	(87,107)	(1,092)	(2,299)
Distributions to non-controlling interest	(69,184)	(61,980)	(42,401)
Net (repayments) proceeds under revolving credit agreement	(32,600)	89,000	(155,700)
Net repayments of finance lease liabilities	(3,042)	(2,040)	(1,441)
Payment of fees related to revolving credit agreement	0	(22)	(196)
Net proceeds from issuances of common stock	20,422	21,014	19,257
Net cash used in financing activities	(503,958)	(228,602)	(448,493)
Effect of foreign exchange rate changes on cash and cash equivalents	(4,933)	(186)	2,069
Net increase (decrease) in cash and cash equivalents	29,237	(27,799)	71,613
Cash and cash equivalents at beginning of year	118,268	146,067	74,454
Cash and cash equivalents at end of year	147,505	118,268	146,067
TEC Distribution LLC [Member]
Cash flows from financing activities:
Proceeds from non-controlling interest for investments	$ 0	$ 21,040	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us,” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. At December 31, 2022, we operated from 673 locations in 42 U.S. states, Canada, Mexico, and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest and Carrier has a 20% non-controlling Impact of the COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19 Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income. Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in investment in unconsolidated entity in our consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, net realizable value adjustments to inventories, income taxes, reserves related to loss contingencies and the valuation of goodwill, indefinite-lived intangible assets, and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. 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 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, 2022 and 2021 of $21,023 and $16,707, 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, 2022, 2021, and 2020, were 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, 2022, 2021 and 2020, were 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. expenses. Cash Flow Hedge. Fair Value Hedge. See Note 1 6 Loss Contingencies Accruals are recorded for various contingencies including self-insurance, legal proceedings, environmental matters, and other claims that arise in the normal course of business. The estimation process contains uncertainty because accruals are based on judgment, the probability of losses and, where applicable, the consideration of opinions of external legal counsel and actuarially determined estimates. Additionally, we record receivables from third party insurers when recovery has been determined to be probable .

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2022
LEASES	2. LEASES The components of operating lease expense were as follows: Years Ended December 31, 2022 2021 2020 Lease cost $ 101,578 $ 90,742 $ 82,543 Short-term lease cost 10,226 9,598 6,317 Variable lease cost 1,840 1,868 942 Sublease income (373 ) (332 ) (228 ) $ 113,271 $ 101,876 $ 89,574 Supplemental balance sheet information related to operating leases were as follows: December 31, 2022 2021 ROU assets $ 317,314 $ 268,528 Current $ 87,120 $ 81,928 Operating lease liabilities 232,144 187,024 Total operatin $ 319,264 $ 268,952 Weighted Average Remaining Lease Term (in years) 4.8 years 4.4 years Weighted Average Discount Rate 3.85 % 3.29 % Supplemental cash flow information related to operating le ases we Years Ended December 31, 2022 2021 2020 Operating cash flows for the measurement of operating lease liabilities $ 100,092 $ 91,063 $ 80,921 Operating lease ROU assets obtained in exchange for operating lease obligations $ 140,704 $ 141,198 $ 59,093 At December 31, 2022, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2023 $ 97,727 2024 76,563 2025 59,363 2026 44,035 2027 25,273 Thereafter 50,491 Total lease payments 353,452 Less imputed interest 34,188 Total lease liability $ 319,264 At December 31, 2022, we had additional operating leases, primarily for real property, that had not yet commenced. Such leases had estimated future minimum rental commitments of approximately $19,200. These operating leases are expected to commence in 2023 with lea 4-8

REVENUES

REVENUES	12 Months Ended
REVENUES	Dec. 31, 2022
REVENUES	3. REVENUES Disaggregation of Revenue s The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Years Ended December 31, 2022 2021 2020 Primary Geographical Regions: United States $ 6,578,897 $ 5,636,929 $ 4,535,262 Canada 389,119 386,780 301,727 Latin America and the Caribbean 306,328 256,483 217,939 $ 7,274,344 $ 6,280,192 $ 5,054,928 Major Product Lines: HVAC equipment 68 % 69 % 69 % Other HVAC products 28 % 28 % 28 % Commercial refrigeration products 4 % 3 % 3 % 100 % 100 % 100 %

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
EARNINGS PER SHARE	Dec. 31, 2022
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, 2022 2021 2020 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 601,167 $ 418,945 $ 269,579 Less: distributed and undistributed earnings allocated to restricted common stock 51,365 37,273 23,140 Earnings allocated to Watsco, Inc. shareholders $ 549,802 $ 381,672 $ 246,439 Weighted-average common shares outstanding - 35,564,203 35,244,230 35,069,516 Basic earnings per share for Common and Class B common stock $ 15.46 $ 10.83 $ 7.03 Allocation of earnings for Basic: Common stock $ 499,792 $ 353,873 $ 228,361 Class B common stock 50,010 27,799 18,078 $ 549,802 $ 381,672 $ 246,439 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 601,167 $ 418,945 $ 269,579 Less: distributed and undistributed earnings allocated to restricted common stock 51,294 37,222 23,140 Earnings allocated to Watsco, Inc. shareholders $ 549,873 $ 381,723 $ 246,439 Weighted-average common shares outstanding - Basic 35,564,203 35,244,230 35,069,516 Effect of dilutive stock options 119,431 179,608 81,055 Weighted-average common shares outstanding - Diluted 35,683,634 35,423,838 35,150,571 Diluted earnings per share for Common and Class B common stock $ 15.41 $ 10.78 $ 7.01 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, 2022, 2021 Diluted earnings per share excluded 190,462, 40,529, and 19,722 shares for the years ended December 31, 2022, 2021, and 2020, 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 (LOSS) INCO

OTHER COMPREHENSIVE (LOSS) INCOME	12 Months Ended
OTHER COMPREHENSIVE (LOSS) INCOME	Dec. 31, 2022
OTHER COMPREHENSIVE (LOSS) INCOME	5. OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income consists of the foreign currency translation adjustment associated with our Canadian operations’ use of (loss) income were as follows: Years Ended December 31, 2022 2021 2020 Foreign currency translation adjustment $ (20,305 ) $ 936 $ 6,272 Unrealized gain on cash flow hedging instruments — 97 1,205 Income tax expense — (27 ) (325 ) Unrealized gain on cash flow hedging instruments, net of tax — 70 880 Reclassification of loss (gain) on cash flow hedging instruments into earnings — 305 (574 ) Income tax (benefit) expense — (86 ) 156 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax — 219 (418 ) Other comprehensive (loss) income $ (20,305 ) $ 1,225 $ 6,734 The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2022 2021 2020 Foreign currency translation adjustment: Beginning balance $ (34,176 ) $ (34,694 ) $ (38,599 ) Current period other comprehensive (loss) (13,534 ) 518 3,905 Ending balance (47,710 ) (34,176 ) (34,694 ) Cash flow hedging instruments: Beginning balance — (173 ) (451 ) Current period other comprehensive income — 43 528 Reclassification adjustment — 130 (250 ) Ending balance — — (173 ) Accumulated other comprehensive loss, net of tax $ (47,710 ) $ (34,176 ) $ (34,867 )

SUPPLIER CONCENTRATION

SUPPLIER CONCENTRATION	12 Months Ended
SUPPLIER CONCENTRATION	Dec. 31, 2022
SUPPLIER CONCENTRATION	6. SUPPLIER CONCENTRATION Purchases from our top ten suppliers comprised 84%, 83%, and 85% of all purchases made in 2022, 2021, and 2020, respectively. Our largest supplier, Carrier and its affiliates, accounted for 60%, 61%, and 63% of all purchases made in 2022, 2021, and 2020, respectively. See Note 1 9 At December 31, 2022, $92,402 was recorded as a reduction of inventories related to pricing claim advances, of which was recorded related to pricing claim advances, of which

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Dec. 31, 2022
PROPERTY AND EQUIPMENT	7. PROPERTY AND EQUIPMENT Property and equipment, net, consists of: December 31, 2022 2021 Land $ 676 $ 676 Buildings and improvements 93,033 85,857 Machinery, vehicles, and equipment 120,811 108,110 Computer hardware and software 83,354 68,762 Furniture and fixtures 24,029 21,404 321,903 284,809 Accumulated depreciation and amortization (196,479 ) (173,790 ) $ 125,424 $ 111,019 Depreciation and amortization expense related to property and equipment included in selling, general and administrative expenses for the years ended December 31, 2022, 2021, and 2020, were $26,974, $22,566, and $19,963, respectively.

DEBT

DEBT	12 Months Ended
DEBT	Dec. 31, 2022
DEBT	8. DEBT We maintain an unsecured, $560,000 syndicated multicurrency revolving credit agreement, which we use to fund seasonal working capital needs and for other general corporate purposes, including acquisitions, dividends (if and as declared by our Board of Directors), capital expenditures, stock repurchases, and issuances of letters of credit. The credit facility has a seasonal component from October 1 to March 31, during which the borrowing capacity may be reduced to The revolving credit agreement matures on December 5, 2023, and accordingly, borrowings outstanding under the revolving credit agreement are classified as current liabilities in our consolidated balance sheet at December 31, 2022. We believe that we will refinance the revolving credit agreement at or prior to its maturity on similar terms and subject to similar conditions. Borrowings under the credit facility bear interest at either LIBOR-based rates plus a spread, which ranges from 87.5 to 150.0 basis-points (LIBOR plus 87.5 basis-points at December 31, 2022), depending on our ratio of total debt to EBITDA, or on rates based on the highest of the Federal Funds Effective Rate plus 0.5%, the Prime Rate or the Eurocurrency Rate plus 1.0%, in each case plus a spread which ranges from 0 to 50.0 basis-points (0 basis-points at December 31, 2022), depending on our ratio of total debt to EBITDA. We pay a variable commitment fee on the unused portion of the commitment under the revolving credit agreement, ranging from 7.5 to 20.0 basis-points (7.5 basis-points at December 31, 2022). During 2021, we paid fees of $22 in connection with the increase in the aggregate borrowing capacity of our revolving credit agreement, which are being amortized ratably through the maturity of the facility in December 2023. At December 31, 2022 and December 31, 2021, $56,400 and $89,000, respectively, were outstanding under the revolving credit agreement. The revolving credit agreement contains customary affirmative and negative covenants, including financial covenants with respect to consolidated leverage and interest coverage ratios, and other customary restrictions. We believe we were in compliance with all covenants at December 31, 2022.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2022
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, 2022 2021 2020 Current: U.S. Federal $ 71,475 $ 91,162 $ 58,895 State 27,202 20,703 12,909 Foreign 13,574 10,993 4,779 112,251 122,858 76,583 Deferred: U.S. Federal 10,766 6,434 218 State 3,695 1,374 21 Foreign (995 ) (1,869 ) (199 ) 5,939 40 Income tax expense $ 125,717 $ 128,797 $ 76,623 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 th e Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 4.6 3.5 3.3 Excess tax benefits from share-based compensation (8.6 ) (1.7 ) (2.1 ) Tax effects on foreign income 0.3 0.4 0.3 FDII (0.1 ) (0.1 ) — Change in valuation allowance 0.4 0.8 — Tax credits and other (0.4 ) (0.5 ) (0.5 ) Effective income tax rate attributable to Watsco, Inc. 17.2 23.4 22.0 Taxes attributable to non-controlling (2.0 ) (2.9 ) (2.8 ) Effective income tax rate 15.2 % 20.5 % 19.2 % The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2022 2021 Deferred tax assets: Share-based compensation $ 27,037 $ 30,854 Capitalized inventory costs and adjustments 4,366 3,449 Allowance for doubtful accounts 3,326 1,328 Self-insurance reserves 1,975 1,027 Other 8,711 6,081 Net operating loss carryforwards 3,899 3,959 49,314 46,698 Valuation allowance (8,171 ) (5,107 ) Total deferred tax assets 41,143 41,591 Deferred tax liabilities: Deductible goodwil l (88,316 ) (82,704 ) Depreciation (23,806 ) (18,744 ) Unremitted earnings of domestic affiliate s (6,618 ) (5,175 ) Other (3,761 (3,619 ) Total deferred tax liabilities (122,501 ) (110,242 ) Net deferred tax liabilities (1) $ (81,358 ) $ (68,651 ) (1) Net deferred tax liabilities have been included in the consolidated balance sheets in deferred income taxes and Provisions of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) such as the one-time repatriation transition tax and the global intangible low-taxed income (“GILTI”) non-US 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. Based on our current analysis of the provisions, this legislation will 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 $ and $ at December 31, 2022 and 2021, 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, 2022, there were state net operating loss carryforwards of $165,951, some of which expire in 2026 , with the majority having an indefinite carryforward period. At December 31, 2022, there were foreign net operating loss carryforwards of $14,916, which expire in varying amounts from 2036 through 2042. These amounts are available to offset future taxable income. There were no federal net operating loss carryforwards at December 31, 2022. 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 currently under examination by the Internal Revenue Service for the 2019 tax year. We are no longer subject to U.S. federal tax examinations for tax years prior to 2019. For the majority of states and foreign jurisdictions, we are no longer subject to tax examinations for tax years prior to 2018. In addition, we are no longer subject to U.S. Virgin Islands federal tax examinations for tax years prior to 2015. At December 31, 2022 and 2021, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $7,752 and $6,727, respectively. Of these totals, $6,457 and $5,636, 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 The changes in gross unrecognized tax benefits were as follows: Balance at December 31, 2019 $ 5,367 Additions based on tax positions related to the current year 1,911 Reductions due to lapse of applicable statute of limitations (773 ) Balance at December 31, 2020 6,505 Additions based on tax positions related to the current year 1,143 Reductions due to lapse of applicable statute of limitations (921 ) Balance at December 31, 2021 6,727 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

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
SHARE-BASED COMPENSATION AND BENEFIT PLANS	Dec. 31, 2022
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 stock options, incentive stock options, performance awards, dividend equivalents, and stock appreciation rights at no less than of the market price on the date the award is granted. To date, awards under the 2021 Plan consist of non-qualified stock options and restricted stock. 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 two Awards of restricted stock, which are granted at no cost to the employee, vest upon attainment of a specified age, generally toward the end of an employee’s career at age The 2014 Plan expired in 2021; therefore, no additional options may be granted. There were 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, 2022: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2021 602,488 $ 205.30 Granted 104,500 274.38 Exercised (113,230 ) 166.08 Forfeited (24,467 ) 242.32 Expired (9,666 ) 176.80 Options outstanding at December 31, 2022 559,625 $ 225.01 2.74 $ 20,555 Options exercisable at December 31, 2022 130,213 $ 174.30 1.50 $ 9,930 The following is a summary of restricted stock activity as of and for the year ended December 31, 2022: Shares Weighted- Restricted stock outstanding at December 31, 2021 3,459,661 $ 83.94 Granted 143,059 290.55 Vested (1,000,459 ) 37.66 Forfeited (13,000 ) 207.83 Restricted stock outstanding at December 31, 2022 2,589,261 $ 112.53 The weighted-average grant date fair value of restricted stock granted during 2022, 2021, and 2020 was $290.55, $254.73, and $193.89, respectively. The fair value of restricted stock that vested during 2022, 2021, and 2020 was $271,781, $3,646, and $7,354, respectively. Duri ng 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. During 2020, 11,693 shares of Common and Class B common stock with an aggregate fair market value of $2,299 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. These shares were retired upon delivery. Vesting of Restricted Stock Held by our CEO 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, 2022 2021 2020 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 3.04 % 0.79 % 0.26 % Expected volatility 23.10 % 21.85 % 20.89 % Expected dividend yield 2.84 % 2.97 % 3.69 % Grant date fair value $ 46.60 $ 34.79 $ 20.76 Exercise of Stock Options The total intrinsic value of stock options exercised during 2022, 2021, and 2020 was $13,046, $16,903, and $8,753, respectively. Cash received from the exercise of stock options during 2022, 2021, and 2020 was $18,425, $19,338, and $17,608, respectively. The tax benefit from stock option exercises during 2022, 2021, and 2020 was $2,658, $3,595, and $1,586, respectively. During 2022, 2021, and 2020, 1,592 shares of Common stock with an aggregate fair market value of $438, 4,040 shares of Common stock with an aggregate fair market value of $1,179 and 11,455 shares of Common stock with an aggregate fair market value of $2,343, respectively, were withheld as payment in lieu of cash for stock option exercises 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, 2022 2021 2020 Stock options $ 3,856 $ 2,908 $ 2,447 Restricted stock 24,965 22,457 19,682 Share-based compensation expense $ 28,821 $ 25,365 $ 22,129 At December 31, 2022, there was $8,390 of unrecognized pre-tax At December 31, 2022, there was $193,089 of unrecognized pre-tax 5-13 On February 7, 2023, our President received a short-term incentive of $200,000 payable in 632 shares of Class B common stock in connection with his 2022 performance-based incentive 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 2022, 2021, and 2020, employees purchased 4,101, 3,501, and 5,121 shares of Common stock at an average price of $262.57, $239.11, and $171.89 per share, respectively. Cash dividends received by the ESPP were reinvested in Common stock and resulted in the issuance of 3,365, 2,962, and 3,964 additional shares during 2022, 2021, and 2020, respectively. We received net proceeds of $1,997, $1,676, and $1,649, respectively, during 2022, 2021, and 2020, for shares of our Common stock purchased under the ESPP. At December 31, 2022, 443,479 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, 2022, 2021, and 2020, we issued 21,560, 22,752, and 25,216 shares of Common stock, respectively, to the plan, representing the Common stock discretionary matching contribution of $6,746, $5,154 ,

INVESTMENT IN UNCONSOLIDATED EN

INVESTMENT IN UNCONSOLIDATED ENTITY	12 Months Ended
INVESTMENT IN UNCONSOLIDATED ENTITY	Dec. 31, 2022
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 38.1% ownership interest in Russell Sigler, Inc. (“RSI”), an HVAC distributor operating from 35 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. Carrier Enterprise I is a party to a shareholders’ agreement (the “Shareholders’ Agreement”) with RSI and its shareholders, consisting of five family siblings, their children, and affiliates related to them. Pursuant to the Shareholders’ Agreement, RSI’s shareholders have the right to sell, and Carrier Enterprise I has the obligation to purchase, their respective shares of RSI for a purchase price determined based on the higher of book value or a multiple of EBIT, the latter of which Carrier Enterprise I used to calculate the price for its 38.1% investment held in RSI. RSI’s shareholders may transfer their respective shares of RSI common stock only to members of the Sigler family or to Carrier Enterprise I, and, at any time from and after the date on which Carrier Enterprise I owns 85% or more of RSI’s outstanding common stock, it has the right, but not the obligation, to purchase from RSI’s shareholders the remaining outstanding shares of RSI common stock. Additionally, Carrier Enterprise I has the right to appoint two of RSI’s six board members. Given Carrier Enterprise I’s 38.1% equity interest in RSI and its right to appoint two out of RSI’s six board members, this investment in RSI is accounted for under the equity method.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
ACQUISITIONS	Dec. 31, 2022
ACQUISITIONS	1 2 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, an HVAC distributor operating from 32 locations in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri , non-controlling The purchase price resulted in the recognition of $38,624 in goodwill and intangibles. The fair value of the identified intangible assets was $19,900 and consisted of $15,700 in trade names and distribution rights, and $4,200 in customer relationships to be amortized over an 18-year The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of our 80% controlling interest in TEC based on their respective fair values as of April 9, 2021: Accounts receivable $ 33,315 Inventories 71,325 Other current assets 962 Property and equipment 2,590 Operating lease ROU assets 53,829 Goodwill 18,724 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (20,509 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697 The results of operations of these acquisitions have been included in the consolidated financial statements from their respective dates of acquisition. The pro forma effect of these acquisitions was not deemed significant to the consolidated financial statements.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Dec. 31, 2022
GOODWILL AND INTANGIBLE ASSETS	1 3 The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2020 $ 412,486 Acquired goodwill 21,291 Foreign currency translation adjustment 242 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 Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2022 2021 Indefinite lived intangible assets—Trade names, trademarks, and distribution rights $ 154,086 $ 158,389 Finite lived intangible assets: Customer relationships 7-18 years 83,943 86,526 Patented and unpatented technology 7 years 1,611 1,721 Trade name 10 years 1,150 1,150 Accumulated amortization (65,599 ) (60,890 ) Finite lived intangible assets, net 21,105 28,507 $ 175,191 $ 186,896 Amortization expense related to finite lived intangible assets included in selling, general and administrative expenses for the years ended December 31, 2022, 2021, and 2020, were $4,709, $5,561, and $5,945, respectively. Based on the finite lived intangible assets recorded at December 31, 2022, annual amortization for the next five years is expected to approximate the following: 2023 $ 3,200 2024 $ 3,000 2025 $ 3,000 2026 $ 2,800 2027 $ 1,500

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Dec. 31, 2022
SHAREHOLDERS' EQUITY	1 4 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 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 basis at the option of the shareholder. 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. W e had preferred stock outstanding at December 31, 2022 or 2021. At-the-Market On February 25, 2022, we entered into an amended and restated sales agreement with Robert W. Baird & Co. Inc. and Goldman Sachs & Co. LLC, 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). As of December 31, 2022, no shares of Common stock had been sold under the ATM Program. Stock Repurchase Plan In September 1999, our Board of Directors authorized the repurchase, at management’s discretion, of up to 7,500,000 shares of common stock in the open market or via private transactions. Shares repurchased under the program are accounted for using the cost method and result in a reduction of shareholders’ equity. No s hares 008. 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, 2022, 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 beginning after December 31, 2022. In consideration of any further stock repurchases under our repurchase program, we intend to evaluate the impact of the IRA’s 1% excise tax on stock repurchases in tax years beginning after December 31, 2022. 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
FINANCIAL INSTRUMENTS	Dec. 31, 2022
FINANCIAL INSTRUMENTS	1 5 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, 2022 and 2021, 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, 2022 and 2021, 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, 2022 and 2021, we were contingently liable under various performance bonds aggregating approximately $13,700 and $7,900, 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
DERIVATIVES	Dec. 31, 2022
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. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is months. At December 31, 2022, no foreign currency forward contracts were designated as cash flow hedges. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Years Ended December 31, 2022 2021 Gain recorded in accumulated other comprehensive loss $ — $ 97 Loss reclassified from accumulated other comprehensive loss into earnings $ — $ 305 Derivatives Not Designated as Hedging Instruments We have also entered into foreign currency forward and option contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. We had only one foreign currency exchange contract not designated as a hedging instrument at December 31, 2022, the total notional value of which was $3,300 . Such contract expired in We recognized losses of $917, $237, and $490 from foreign currency forward and option contracts not designated as hedging instruments in our consolidated statements of income for 2022, 2021, and 2020, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our consolidated balance sheets. See Note 1 7 Asset Derivatives Liability Derivatives December 31, 2022 2021 2022 2021 Derivatives designated as hedging instruments $ — $ — $ — $ — Derivatives not designated as hedging instruments — — — 5 Total derivative instruments $ — $ — $ — $ 5

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 2022
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: Balance Sheet Location Total Fair Value Measurements at December 31, 2022 Using Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 678 $ 678 — — Private equities Other assets $ 1,000 — — $ 1,000 Balance Sheet Location Total Fair Value Measurements at December 31, 2021 Using Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,790 $ 1,790 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 — $ 5 — The following is a description of the valuation techniques used for these assets and liabilities, as well as the level of input used to measure fair value: Equity securities Private equities Derivative financial instruments

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
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 $12,256 and $7,253 at December 31, 2022 and 2021, 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, 2022, 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, 2022, the maximum exposure to loss related to our involvement with this entity is limited to approximately $6,700 and we have a cash deposit of approximately $3,000 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, 2022, there were no other entities that met the definition of a VIE. Purchase Obligations At December 31, 2022, we were obligated under various non-cancelable

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2022
RELATED PARTY TRANSACTIONS	1 9 Purchases from Carrier and its affiliates comprised 60%, 61%, and 63% of all inventory purchases made during 2022, 2021 , , 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 2022, 2021 ,

INFORMATION ABOUT GEOGRAPHIC AR

INFORMATION ABOUT GEOGRAPHIC AREAS	12 Months Ended
INFORMATION ABOUT GEOGRAPHIC AREAS	Dec. 31, 2022
INFORMATION ABOUT GEOGRAPHIC AREAS	20 Our operations are primarily within the United States, including Puerto Rico, Canada , Years Ended December 31, 2022 2021 2020 Revenues: United States $ 6,578,897 $ 5,636,929 $ 4,535,262 Canada 389,119 386,780 301,727 Latin America and the Caribbean 306,328 256,483 217,939 Total revenues $ 7,274,344 $ 6,280,192 $ 5,054,928 December 31, 2022 2021 Long-Lived Assets: United States $ 1,009,188 $ 931,170 Canada 164,284 175,864 Latin America and the Caribbean 16,003 17,427 Total long-lived assets $ 1,189,475 $ 1,124,461 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
SUPPLEMENTAL CASH FLOW INFORMATION	Dec. 31, 2022
SUPPLEMENTAL CASH FLOW INFORMATION	2 1 Supplemental cash flow information was as follows: Years Ended December 31, 2022 2021 2020 Interest paid $ 3,505 $ 913 $ 1,844 Income taxes net of refunds $ 105,736 $ 124,984 $ 70,889 Common stock issued for MIS — $ 997 — Common stock issued for ACME — $ 2,551 — Common stock issued for N&S — — $ (161 )

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2022
Organization, Consolidation and Presentation	Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us,” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. At December 31, 2022, we operated from 673 locations in 42 U.S. states, Canada, Mexico, and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements include the accounts of Watsco, all of its wholly owned subsidiaries, the accounts of four joint ventures with Carrier Global Corporation, which we refer to as Carrier, the accounts of Carrier InterAmerica Corporation, of which we have an 80% controlling interest and Carrier has a 20% non-controlling
Impact of the COVID-19 Pandemic and Economic and Marketplace Dynamics	Impact of the COVID-19 Since COVID-19 COVID-19 COVID-19 COVID-19
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income.
Equity Method Investments	Equity Method Investments Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in investment in unconsolidated entity in our consolidated balance sheets. Under this method of accounting, our proportionate share of the net income or loss of the investee is included in other income in our consolidated statements of income. The excess, if any, of the carrying amount of our investment over our ownership percentage in the underlying net assets of the investee is attributed to certain fair value adjustments with the remaining portion recognized as goodwill.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, net realizable value adjustments to inventories, income taxes, reserves related to loss contingencies and the valuation of goodwill, indefinite-lived intangible assets, and long-lived assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
Cash Equivalents	Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends, and other information, including potential impacts of business and economic conditions. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2022 and 2021, the allowance for doubtful accounts totaled
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 and weighted-average cost basis methods, or net realizable value. As part of the valuation process, inventories are adjusted to reflect excess, slow-moving, and damaged inventories at their estimated net realizable value. Inventory policies are reviewed periodically, reflecting current risks, trends, and changes in industry conditions. A reserve for estimated inventory shrinkage is maintained to consider inventory shortages determined from cycle counts and physical inventories.
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, 2022 and 2021, we had 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. 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 Finance lease ROU assets ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the applicable commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement dates of the respective leases in determining the present value of the applicable lease payments. Operating lease ROU assets also include any lease pre-payments 1-10 non-lease Practical Expedients We elected the practical expedients related to short-term leases and separating lease components from non-lease
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition 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, 2023, 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 impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests.
Long-Lived Assets	Long-Lived Assets Long-lived assets, other than goodwill and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2022, 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 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, 2022 and 2021 of $21,023 and $16,707, 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, 2022, 2021, and 2020, were
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, 2022, 2021 and 2020, were 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. expenses. Cash Flow Hedge. Fair Value Hedge. See Note 1 6
Loss Contingencies	Loss Contingencies Accruals are recorded for various contingencies including self-insurance, legal proceedings, environmental matters, and other claims that arise in the normal course of business. The estimation process contains uncertainty because accruals are based on judgment, the probability of losses and, where applicable, the consideration of opinions of external legal counsel and actuarially determined estimates. Additionally, we record receivables from third party insurers when recovery has been determined to be probable .
Self-Insurance	Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers 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 $12,256 and $7,253 at December 31, 2022 and 2021, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets.

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2022
Components Of Lease Expense	The components of operating lease expense were as follows: Years Ended December 31, 2022 2021 2020 Lease cost $ 101,578 $ 90,742 $ 82,543 Short-term lease cost 10,226 9,598 6,317 Variable lease cost 1,840 1,868 942 Sublease income (373 ) (332 ) (228 ) $ 113,271 $ 101,876 $ 89,574
Summary Of Balance Sheet Information Related To Leases	Supplemental balance sheet information related to operating leases were as follows: December 31, 2022 2021 ROU assets $ 317,314 $ 268,528 Current $ 87,120 $ 81,928 Operating lease liabilities 232,144 187,024 Total operatin $ 319,264 $ 268,952 Weighted Average Remaining Lease Term (in years) 4.8 years 4.4 years Weighted Average Discount Rate 3.85 % 3.29 %
Summary Of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to operating le ases we Years Ended December 31, 2022 2021 2020 Operating cash flows for the measurement of operating lease liabilities $ 100,092 $ 91,063 $ 80,921 Operating lease ROU assets obtained in exchange for operating lease obligations $ 140,704 $ 141,198 $ 59,093
Maturities Of Operating Lease Liabilities	At December 31, 2022, maturities of operating lease liabilities over each of the next five years and thereafter were as follows: 2023 $ 97,727 2024 76,563 2025 59,363 2026 44,035 2027 25,273 Thereafter 50,491 Total lease payments 353,452 Less imputed interest 34,188 Total lease liability $ 319,264

REVENUES (Tables)

REVENUES (Tables)	12 Months Ended
REVENUES (Tables)	Dec. 31, 2022
Summary of Disaggregated Revenue	Years Ended December 31, 2022 2021 2020 Primary Geographical Regions: United States $ 6,578,897 $ 5,636,929 $ 4,535,262 Canada 389,119 386,780 301,727 Latin America and the Caribbean 306,328 256,483 217,939 $ 7,274,344 $ 6,280,192 $ 5,054,928 Major Product Lines: HVAC equipment 68 % 69 % 69 % Other HVAC products 28 % 28 % 28 % Commercial refrigeration products 4 % 3 % 3 % 100 % 100 % 100 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2022
Schedule of Basic and Diluted Earnings Per Common Share	The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Years Ended December 31, 2022 2021 2020 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 601,167 $ 418,945 $ 269,579 Less: distributed and undistributed earnings allocated to restricted common stock 51,365 37,273 23,140 Earnings allocated to Watsco, Inc. shareholders $ 549,802 $ 381,672 $ 246,439 Weighted-average common shares outstanding - 35,564,203 35,244,230 35,069,516 Basic earnings per share for Common and Class B common stock $ 15.46 $ 10.83 $ 7.03 Allocation of earnings for Basic: Common stock $ 499,792 $ 353,873 $ 228,361 Class B common stock 50,010 27,799 18,078 $ 549,802 $ 381,672 $ 246,439 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 601,167 $ 418,945 $ 269,579 Less: distributed and undistributed earnings allocated to restricted common stock 51,294 37,222 23,140 Earnings allocated to Watsco, Inc. shareholders $ 549,873 $ 381,723 $ 246,439 Weighted-average common shares outstanding - Basic 35,564,203 35,244,230 35,069,516 Effect of dilutive stock options 119,431 179,608 81,055 Weighted-average common shares outstanding - Diluted 35,683,634 35,423,838 35,150,571 Diluted earnings per share for Common and Class B common stock $ 15.41 $ 10.78 $ 7.01

OTHER COMPREHENSIVE (LOSS) IN_2

OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	12 Months Ended
OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	Dec. 31, 2022
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss	The tax effects allocated to each component of other comprehensive (loss) income were as follows: Years Ended December 31, 2022 2021 2020 Foreign currency translation adjustment $ (20,305 ) $ 936 $ 6,272 Unrealized gain on cash flow hedging instruments — 97 1,205 Income tax expense — (27 ) (325 ) Unrealized gain on cash flow hedging instruments, net of tax — 70 880 Reclassification of loss (gain) on cash flow hedging instruments into earnings — 305 (574 ) Income tax (benefit) expense — (86 ) 156 Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax — 219 (418 ) Other comprehensive (loss) income $ (20,305 ) $ 1,225 $ 6,734
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, 2022 2021 2020 Foreign currency translation adjustment: Beginning balance $ (34,176 ) $ (34,694 ) $ (38,599 ) Current period other comprehensive (loss) (13,534 ) 518 3,905 Ending balance (47,710 ) (34,176 ) (34,694 ) Cash flow hedging instruments: Beginning balance — (173 ) (451 ) Current period other comprehensive income — 43 528 Reclassification adjustment — 130 (250 ) Ending balance — — (173 ) Accumulated other comprehensive loss, net of tax $ (47,710 ) $ (34,176 ) $ (34,867 )

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
ACQUISITIONS (Tables)	Dec. 31, 2022
Business Combinations [Abstract]
Summary of tangible and intangible assets acquired and liabilities assumed	The table below presents the allocation of the total consideration to tangible and intangible assets acquired and liabilities assumed from the acquisition of our 80% controlling interest in TEC based on their respective fair values as of April 9, 2021: Accounts receivable $ 33,315 Inventories 71,325 Other current assets 962 Property and equipment 2,590 Operating lease ROU assets 53,829 Goodwill 18,724 Intangibles 19,900 Accounts payable (25,393 ) Accrued expenses and other current liabilities (20,509 ) Operating lease liabilities, net of current portion (48,046 ) Total $ 106,697

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Dec. 31, 2022
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2020 $ 412,486 Acquired goodwill 21,291 Foreign currency translation adjustment 242 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
Indefinite and Finite Lived Intangible Assets	Intangible assets are comprised of the following: December 31, Estimated Useful Lives 2022 2021 Indefinite lived intangible assets—Trade names, trademarks, and distribution rights $ 154,086 $ 158,389 Finite lived intangible assets: Customer relationships 7-18 years 83,943 86,526 Patented and unpatented technology 7 years 1,611 1,721 Trade name 10 years 1,150 1,150 Accumulated amortization (65,599 ) (60,890 ) Finite lived intangible assets, net 21,105 28,507 $ 175,191 $ 186,896
Amortization Expense Related to Finite Lived Intangible Assets	Based on the finite lived intangible assets recorded at December 31, 2022, annual amortization for the next five years is expected to approximate the following: 2023 $ 3,200 2024 $ 3,000 2025 $ 3,000 2026 $ 2,800 2027 $ 1,500

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2022
Property and Equipment, Net	Property and equipment, net, consists of: December 31, 2022 2021 Land $ 676 $ 676 Buildings and improvements 93,033 85,857 Machinery, vehicles, and equipment 120,811 108,110 Computer hardware and software 83,354 68,762 Furniture and fixtures 24,029 21,404 321,903 284,809 Accumulated depreciation and amortization (196,479 ) (173,790 ) $ 125,424 $ 111,019

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2022
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, 2022 2021 2020 Current: U.S. Federal $ 71,475 $ 91,162 $ 58,895 State 27,202 20,703 12,909 Foreign 13,574 10,993 4,779 112,251 122,858 76,583 Deferred: U.S. Federal 10,766 6,434 218 State 3,695 1,374 21 Foreign (995 ) (1,869 ) (199 ) 5,939 40 Income tax expense $ 125,717 $ 128,797 $ 76,623
Reconciliation of Effective Income Tax Rate	Following is a reconciliation of th e Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit and other 4.6 3.5 3.3 Excess tax benefits from share-based compensation (8.6 ) (1.7 ) (2.1 ) Tax effects on foreign income 0.3 0.4 0.3 FDII (0.1 ) (0.1 ) — Change in valuation allowance 0.4 0.8 — Tax credits and other (0.4 ) (0.5 ) (0.5 ) Effective income tax rate attributable to Watsco, Inc. 17.2 23.4 22.0 Taxes attributable to non-controlling (2.0 ) (2.9 ) (2.8 ) Effective income tax rate 15.2 % 20.5 % 19.2 %
Significant Components of Net Deferred Tax Liabilities	The following is a summary of the significant components of our net deferred tax liabilities: December 31, 2022 2021 Deferred tax assets: Share-based compensation $ 27,037 $ 30,854 Capitalized inventory costs and adjustments 4,366 3,449 Allowance for doubtful accounts 3,326 1,328 Self-insurance reserves 1,975 1,027 Other 8,711 6,081 Net operating loss carryforwards 3,899 3,959 49,314 46,698 Valuation allowance (8,171 ) (5,107 ) Total deferred tax assets 41,143 41,591 Deferred tax liabilities: Deductible goodwil l (88,316 ) (82,704 ) Depreciation (23,806 ) (18,744 ) Unremitted earnings of domestic affiliate s (6,618 ) (5,175 ) Other (3,761 (3,619 ) Total deferred tax liabilities (122,501 ) (110,242 ) Net deferred tax liabilities (1) $ (81,358 ) $ (68,651 ) (1) Net deferred tax liabilities have been included in the consolidated balance sheets in deferred income taxes and
Changes in Gross Unrecognized Tax Benefits	The changes in gross unrecognized tax benefits were as follows: Balance at December 31, 2019 $ 5,367 Additions based on tax positions related to the current year 1,911 Reductions due to lapse of applicable statute of limitations (773 ) Balance at December 31, 2020 6,505 Additions based on tax positions related to the current year 1,143 Reductions due to lapse of applicable statute of limitations (921 ) Balance at December 31, 2021 6,727 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

SHARE-BASED COMPENSATION AND _2

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	Dec. 31, 2022
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, 2022: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2021 602,488 $ 205.30 Granted 104,500 274.38 Exercised (113,230 ) 166.08 Forfeited (24,467 ) 242.32 Expired (9,666 ) 176.80 Options outstanding at December 31, 2022 559,625 $ 225.01 2.74 $ 20,555 Options exercisable at December 31, 2022 130,213 $ 174.30 1.50 $ 9,930
Summary of Restricted Stock Activity	The following is a summary of restricted stock activity as of and for the year ended December 31, 2022: Shares Weighted- Restricted stock outstanding at December 31, 2021 3,459,661 $ 83.94 Granted 143,059 290.55 Vested (1,000,459 ) 37.66 Forfeited (13,000 ) 207.83 Restricted stock outstanding at December 31, 2022 2,589,261 $ 112.53
Valuation Assumptions Used for Stock Option Awards	The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2022 2021 2020 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 3.04 % 0.79 % 0.26 % Expected volatility 23.10 % 21.85 % 20.89 % Expected dividend yield 2.84 % 2.97 % 3.69 % Grant date fair value $ 46.60 $ 34.79 $ 20.76
Share-Based Compensation Expense	The following table provides information on share-based compensation expense: Years Ended December 31, 2022 2021 2020 Stock options $ 3,856 $ 2,908 $ 2,447 Restricted stock 24,965 22,457 19,682 Share-based compensation expense $ 28,821 $ 25,365 $ 22,129

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
DERIVATIVES (Tables)	Dec. 31, 2022
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges	The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Years Ended December 31, 2022 2021 Gain recorded in accumulated other comprehensive loss $ — $ 97 Loss reclassified from accumulated other comprehensive loss into earnings $ — $ 305
Fair Value of Derivative Instruments and Location in the Balance Sheets	The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our consolidated balance sheets. See Note 1 7 Asset Derivatives Liability Derivatives December 31, 2022 2021 2022 2021 Derivatives designated as hedging instruments $ — $ — $ — $ — Derivatives not designated as hedging instruments — — — 5 Total derivative instruments $ — $ — $ — $ 5

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Dec. 31, 2022
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Balance Sheet Location Total Fair Value Measurements at December 31, 2022 Using Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 678 $ 678 — — Private equities Other assets $ 1,000 — — $ 1,000 Balance Sheet Location Total Fair Value Measurements at December 31, 2021 Using Level 1 Level 2 Level 3 Assets: Equity securities Other assets $ 1,790 $ 1,790 — — Private equities Other assets $ 1,000 — — $ 1,000 Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 5 — $ 5 —

INFORMATION ABOUT GEOGRAPHIC _2

INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	12 Months Ended
INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	Dec. 31, 2022
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, 2022 2021 2020 Revenues: United States $ 6,578,897 $ 5,636,929 $ 4,535,262 Canada 389,119 386,780 301,727 Latin America and the Caribbean 306,328 256,483 217,939 Total revenues $ 7,274,344 $ 6,280,192 $ 5,054,928 December 31, 2022 2021 Long-Lived Assets: United States $ 1,009,188 $ 931,170 Canada 164,284 175,864 Latin America and the Caribbean 16,003 17,427 Total long-lived assets $ 1,189,475 $ 1,124,461

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	Dec. 31, 2022
Supplemental Cash Flow Information	Years Ended December 31, 2022 2021 2020 Interest paid $ 3,505 $ 913 $ 1,844 Income taxes net of refunds $ 105,736 $ 124,984 $ 70,889 Common stock issued for MIS — $ 997 — Common stock issued for ACME — $ 2,551 — Common stock issued for N&S — — $ (161 )

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Store State Entity	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures \| Entity	4
Allowance for doubtful accounts	$ 18,345	$ 11,315
Capitalized vendor rebates	22,961	22,692
Goodwill and intangible assets impairment	0	0	$ 0
Accrued sales returns	21,023	16,707
Selling, general and administrative expense	1,221,382	1,058,316	833,051
Cash discounts recorded as a reduction of inventories	19,158	17,893
Finance lease ROU assets	14,480	11,489
Finance lease liabilities	$ 14,865	$ 11,762
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	$ 86,620	$ 70,453	55,019
Advertising Expense [Member]
Significant Accounting Policies [Line Items]
Selling, general and administrative expense	$ 25,884	$ 21,552	$ 12,588
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
Significant Accounting Policies [Line Items]
Percentage of Service Revenue	1%	1%	1%
Buildings and Improvements \| Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Buildings and Improvements \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	40 years
Machinery 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 \| Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	5 years
Furniture and Fixtures \| Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives in years	7 years
Watsco, Inc.
Significant Accounting Policies [Line Items]
Number of locations from which entity operates \| Store	673
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, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease cost	$ 101,578	$ 90,742	$ 82,543
Short-term lease cost	10,226	9,598	6,317
Variable lease cost	1,840	1,868	942
Sublease income	(373)	(332)	(228)
Total operating lease cost	$ 113,271	$ 101,876	$ 89,574

Leases - Summary Of Balance She

Leases - Summary Of Balance Sheet Information Related To Operating Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
ROU assets	$ 317,314	$ 268,528
Current portion of operating lease liabilities	$ 87,120	$ 81,928
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	$ 232,144	$ 187,024
Total operating lease liabilities	$ 319,264	$ 268,952
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 4 months 24 days
Weighted Average Discount Rate
Operating leases	3.85%	3.29%

Leases - Summary Of Supplementa

Leases - Summary Of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for the measurement of operating lease liabilities	$ 100,092	$ 91,063	$ 80,921
Operating lease ROU assets obtained in exchange for operating lease obligations	$ 140,704	$ 141,198	$ 59,093

Leases - Maturities Of Operatin

Leases - Maturities Of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Maturities of Operating Lease Liabilities
Total lease liability	$ 319,264	$ 268,952
Operating Lease Liabilities [Member]
Maturities of Operating Lease Liabilities
2023	97,727
2024	76,563
2025	59,363
2026	44,035
2027	25,273
Thereafter	50,491
Total lease payments	353,452
Less imputed interest	34,188
Total lease liability	$ 319,264

Leases - Additional Information

Leases - Additional Information (Detail) $ in Thousands	Dec. 31, 2022 USD ($)
Operating leases not yet commenced	$ 19,200
Maximum [Member]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	8 years
Minimum [Member]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	4 years

Revenues - Summary of Disaggreg

Revenues - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	100%	100%	100%
Revenues	$ 7,274,344	$ 6,280,192	$ 5,054,928
United States
Disaggregation of Revenue [Line Items]
Revenues	6,578,897	5,636,929	4,535,262
Canada
Disaggregation of Revenue [Line Items]
Revenues	389,119	386,780	301,727
Latin America and the Caribbean
Disaggregation of Revenue [Line Items]
Revenues	$ 306,328	$ 256,483	$ 217,939
HVAC Equipment
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	68%	69%	69%
Other HVAC Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	28%	28%	28%
Commercial Refrigeration Products
Disaggregation of Revenue [Line Items]
Revenues from product lines, percentage	4%	3%	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, 2022	Dec. 31, 2021	Dec. 31, 2020
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 601,167	$ 418,945	$ 269,579
Basic earnings per share for Common and Class B common stock	$ 15.46	$ 10.83	$ 7.03
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 601,167	$ 418,945	$ 269,579
Diluted earnings per share for Common and Class B common stock	$ 15.41	$ 10.78	$ 7.01
Class B Common Stock
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 50,010	$ 27,799	$ 18,078
Common Stock
Basic Earnings per Share:
Earnings allocated to Watsco, Inc. shareholders - Basic	499,792	353,873	228,361
Common Stock \| Class B Common Stock
Basic Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	601,167	418,945	269,579
Less: distributed and undistributed earnings allocated to restricted common stock	51,365	37,273	23,140
Earnings allocated to Watsco, Inc. shareholders - Basic	$ 549,802	$ 381,672	$ 246,439
Weighted-average common shares outstanding - Basic	35,564,203	35,244,230	35,069,516
Basic earnings per share for Common and Class B common stock	$ 15.46	$ 10.83	$ 7.03
Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$ 601,167	$ 418,945	$ 269,579
Less: distributed and undistributed earnings allocated to restricted common stock – Diluted	51,294	37,222	23,140
Earnings allocated to Watsco, Inc. shareholders - Diluted	$ 549,873	$ 381,723	$ 246,439
Weighted-average common shares outstanding - Basic	35,564,203	35,244,230	35,069,516
Effect of dilutive stock options	119,431	179,608	81,055
Weighted-average common shares outstanding - Diluted	35,683,634	35,423,838	35,150,571
Diluted earnings per share for Common and Class B common stock	$ 15.41	$ 10.78	$ 7.01

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Line Items]
Class B common stock conversion, number of shares	3,234,939	2,566,990	2,572,536
Anti-dilutive stock options excluded from earnings per share	190,462	40,529	19,722

Other Comprehensive (Loss) In_3

Other Comprehensive (Loss) Income - Schedule of Tax Effects Allocated to Each Component of Other Comprehensive income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ (20,305)	$ 936	$ 6,272
Unrealized gain on cash flow hedging instruments	0	97	1,205
Income tax expense	0	(27)	(325)
Unrealized gain on cash flow hedging instruments, net of tax	0	70	880
Reclassification of loss (gain) on cash flow hedging instruments into earnings	0	305	(574)
Income tax (benefit) expense	0	(86)	156
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	0	219	(418)
Other comprehensive (loss) income	$ (20,305)	$ 1,225	$ 6,734

Other Comprehensive (Loss) In_4

Other Comprehensive (Loss) Income - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (34,176)	$ (34,867)
Ending balance	(47,710)	(34,176)	$ (34,867)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34,176)	(34,694)	(38,599)
Current period other comprehensive (loss) income	(13,534)	518	3,905
Ending balance	(47,710)	(34,176)	(34,694)
Cash Flow Hedging Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	0	(173)	(451)
Current period other comprehensive (loss) income	0	43	528
Reclassification adjustment	0	130	(250)
Ending balance	$ 0	$ 0	$ (173)

Supplier Concentration - Additi

Supplier Concentration - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Reduction in inventories related to pricing claim advances	$ 92,402	$ 78,454
Carrier and Its Affiliates
Concentration Risk [Line Items]
Reduction in inventories related to pricing claim advances	$ 69,814	$ 59,644
Carrier and Its Affiliates \| Supplier Concentration Risk \| Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	60%	61%	63%
Top Ten Suppliers [Member] \| Supplier Concentration Risk \| Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	84%	83%	85%

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 321,903	$ 284,809
Accumulated depreciation and amortization	(196,479)	(173,790)
Property and equipment, net	125,424	111,019
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	676	676
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	93,033	85,857
Machinery, Vehicles and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	120,811	108,110
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	83,354	68,762
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,029	$ 21,404

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 26,974	$ 22,566	$ 19,963

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Dec. 05, 2018	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Revolving credit agreement, maturity date	Dec. 05, 2023
Payment of fees related to revolving credit agreement			$ 0	$ 22	$ 196
Borrowings under revolving credit agreement, Current			56,400	0
Borrowings under revolving credit agreement			0	89,000
Maximum capacity under revolving credit agreement			$ 560,000
London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			87.50%
Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			0.50%
Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			1%
Commitment Fee
Debt Instrument [Line Items]
Basis spread			7.50%
Federal Funds and Eurocurrency Rate [Member]
Debt Instrument [Line Items]
Basis spread			0%
Maximum \| London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			150%
Maximum \| Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			50%
Maximum \| Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			50%
Maximum \| Commitment Fee
Debt Instrument [Line Items]
Basis spread			20%
Minimum \| London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread			87.50%
Minimum \| Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Basis spread			0%
Minimum \| Eurocurrency Rate
Debt Instrument [Line Items]
Basis spread			0%
Minimum \| Commitment Fee
Debt Instrument [Line Items]
Basis spread			7.50%
Swingline Subfacility
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement			$ 100,000
Letter of Credit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement			10,000
Revolving Credit Facility
Debt Instrument [Line Items]
Payment of fees related to revolving credit agreement				$ 22
Seasonal discretionary maximum borrowing capacity under revolving credit agreement		$ 460,000
Alternative Currency Sublimit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement			75,000
Mexican Borrowing Sublimit
Debt Instrument [Line Items]
Maximum capacity under revolving credit agreement			$ 8,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Thousands			12 Months Ended
	Aug. 16, 2022	Mar. 11, 2021 USD ($) Employee	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 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			$ 8,171	$ 5,107
Gross unrecognized tax benefits			7,752	6,727	$ 6,505	$ 5,367
Unrecognized tax benefits that, if recognized, would affect the effective tax rate			6,457	5,636
Estimated accrued interest and penalties resulting from unrecognized tax benefits			1,343	$ 1,211
Foreign subsidiaries earnings			$ 148,000
Effective income tax rate reconciliation, Percent			15.20%	20.50%	19.20%
America Rescue Plan Act of 2021
Income Taxes [Line Items]
Number Of Additional Most Highly Compensated Individuals \| Employee		5
Annual Cap On Compensation		$ 1,000
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
Income Taxes [Line Items]
Net operating loss carry forwards			$ 165,951
State and other \| Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2026
Foreign
Income Taxes [Line Items]
Net operating loss carry forwards			$ 14,916
Foreign \| Maximum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2042
Foreign \| Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date			2036
Federal
Income Taxes [Line Items]
Net operating loss carry forwards			$ 0

Components of Income Tax Expens

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
U.S. Federal	$ 71,475	$ 91,162	$ 58,895
State	27,202	20,703	12,909
Foreign	13,574	10,993	4,779
Current	112,251	122,858	76,583
Deferred:
U.S. Federal	10,766	6,434	218
State	3,695	1,374	21
Foreign	(995)	(1,869)	(199)
Deferred	13,466	5,939	40
Income tax expense	$ 125,717	$ 128,797	$ 76,623

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate (Detail)	12 Months Ended
Reconciliation of Effective Income Tax Rate (Detail)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
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	4.60%	3.50%	3.30%
Excess tax benefits from share-based compensation	(8.60%)	(1.70%)	(2.10%)
Tax effects on foreign income	0.30%	0.40%	0.30%
FDII	(0.10%)	(0.10%)	0%
Change in valuation allowance	0.40%	0.80%	0%
Tax credits and other	(0.40%)	(0.50%)	(0.50%)
Effective income tax rate attributable to Watsco, Inc.	17.20%	23.40%	22%
Taxes attributable to non-controlling interest	(2.00%)	(2.90%)	(2.80%)
Effective income tax rate	15.20%	20.50%	19.20%

Significant Components of Net D

Significant Components of Net Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Components of Net Deferred Tax Liabilities [Line Items]
Share-based compensation		$ 27,037	$ 30,854
Capitalized inventory costs and adjustments		4,366	3,449
Allowance for doubtful accounts		3,326	1,328
Self-insurance reserves		1,975	1,027
Other		8,711	6,081
Net operating loss carryforwards		3,899	3,959
Total deferred tax assets, gross		49,314	46,698
Valuation allowance		(8,171)	(5,107)
Total deferred tax assets		41,143	41,591
Deductible goodwill		(88,316)	(82,704)
Depreciation		(23,806)	(18,744)
Unremitted earnings of domestic affiliates		(6,618)	(5,175)
Other		(3,761)	(3,619)
Total deferred tax liabilities		(122,501)	(110,242)
Net deferred tax liabilities	[1]	$ (81,358)	$ (68,651)

[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, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Beginning balance	$ 6,727	$ 6,505	$ 5,367
Additions based on tax positions related to the current year	1,867	1,143	1,911
Reductions due to lapse of applicable statute of limitations	(842)	(921)	(773)
Ending balance	$ 7,752	$ 6,727	$ 6,505

Share-Based Compensation and _3

Share-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands			12 Months Ended
	Feb. 07, 2023 USD ($) shares	Oct. 15, 2022 USD ($) shares	Dec. 31, 2022 USD ($) Age $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding \| shares			559,625	602,488
Income tax benefit			$ 125,717	$ 128,797	$ 76,623
Payment, tax withholding, share-based payment arrangement			87,107	1,092	2,299
Common stock contribution to 401(k) plan			6,746	5,154	4,543
Current federal tax expense (benefit)			$ 71,475	$ 91,162	$ 58,895
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that remained available for grant in connection with the 2014 Plan \| shares			1,500,000
Shares reserved for future grant \| shares			443,479
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			4,101	3,501	5,121
Average price of the shares purchased by employees \| $ / shares			$ 262.57	$ 239.11	$ 171.89
Additional shares issued resulting from cash dividends reinvested in common stock \| shares			3,365	2,962	3,964
Net proceeds from shares purchased under ESPP			$ 1,997	$ 1,676	$ 1,649
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued, value, share-Based payment arrangement	$ 200,000
Shares Issued, shares, share-Based payment arrangement \| shares	632
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding \| shares			361,075
2014 Plan \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest			2 years
2014 Plan \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest			4 years
401(k) Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock contribution to 401(k) Plan, shares \| shares			21,560	22,752	25,216
Common stock contribution to 401(k) plan			$ 6,746	$ 5,154	$ 4,543
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price that share-based compensation awards are granted at			100%
Aggregate shares of common stock that remained available for grant in connection with the 2014 Plan \| shares			2,500,000
Shares reserved for future grant \| shares			2,502,966
Contractual term of stock option awards			5 years
2021 Plan \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest			2 years
2021 Plan \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest			4 years
2021 Plan \| Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that remained available for grant in connection with the 2014 Plan \| shares			7,327
Shares awarded under the plan, net of cancellations \| shares			4,361
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of restricted stock \| $ / shares			$ 290.55	$ 254.73	$ 193.89
Market value of vested shares			$ 271,781	$ 3,646	$ 7,354
Unrecognized share-based compensation expense			$ 193,089
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement			11 years 8 months 12 days
Number of shares vested \| shares			1,000,459
Restricted Stock \| Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 54,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation agreement			7 years
Restricted stock obligated to issue in connection with incentive compensation agreement \| shares			39,602
Restricted Stock \| Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche One
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			4 years
Age of Chief Executive Officer when restricted stock vests \| Age			86
Restricted Stock \| Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 24,000
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			88
Restricted Stock \| Chief Executive Officer [Member] \| Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 9,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement			7 years
Age of Chief Executive Officer when restricted stock vests \| Age			89
Restricted Stock \| President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 40,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation agreement			21 years
Restricted stock obligated to issue in connection with incentive compensation agreement \| shares			38,930
Restricted Stock \| President \| Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 39,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement			21 years
Age of president when restricted shares vests \| Age			62
Restricted Stock \| President \| Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense			$ 1,000
Vesting period related to restricted stock obligated to issue in connection with incentive compensation arrangement			23 years
Age of president when restricted shares vests \| Age			64
Restricted Stock \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of employee when restricted stock vests \| Age			62
Restricted Stock \| Various Key Leaders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period related to shares obligated to issue in connection with incentive compensation agreement \| shares			15,000
Restricted Stock \| Various Key Leaders \| 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 \| Various Key Leaders \| 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			13 years
Restricted Stock \| Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares \| shares					11,693
Payment, tax withholding, share-based payment arrangement					$ 2,299
Restricted Stock \| Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares \| shares			320,468	3,858
Payment, tax withholding, share-based payment arrangement			$ 87,049	$ 1,078
Restricted Stock \| Class B Common Stock \| 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
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit			2,658	3,595	1,586
Total intrinsic value of stock options exercised			13,046	16,903	8,753
Cash received from Common stock issued			18,425	19,338	17,608
Unrecognized share-based compensation expense			$ 8,390
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			$ 2,721	$ 2,621	$ 2,177
Stock Options \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares \| shares			1,592	4,040	11,455
Payment, tax withholding, share-based payment arrangement			$ 438	$ 1,179	$ 2,343

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding beginning balance \| shares	602,488
Options, Granted \| shares	104,500
Options, Exercised \| shares	(113,230)
Options, Forfeited \| shares	(24,467)
Options, Expired \| shares	(9,666)
Options, Outstanding ending balance \| shares	559,625
Options, Exercisable \| shares	130,213
Weighted-Average Exercise Price, Outstanding beginning balance \| $ / shares	$ 205.3
Weighted-Average Exercise Price, Granted \| $ / shares	274.38
Weighted-Average Exercise Price, Exercised \| $ / shares	166.08
Weighted-Average Exercise Price, Forfeited \| $ / shares	242.32
Weighted-Average Exercise Price, Expired \| $ / shares	176.8
Weighted-Average Exercise Price, Outstanding ending balance \| $ / shares	225.01
Weighted-Average Exercise Price, Exercisable \| $ / shares	$ 174.3
Weighted-Average Remaining Contractual Term (in years), Outstanding	2 years 8 months 26 days
Weighted-Average Remaining Contractual Term (in years), Exercisable	1 year 6 months
Aggregate Intrinsic Value, Outstanding \| $	$ 20,555
Aggregate Intrinsic Value, Exercisable \| $	$ 9,930

Summary of Restricted Stock Act

Summary of Restricted Stock Activity (Detail) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Restricted beginning balance	3,459,661
Shares, Granted	143,059
Shares, Vested	(1,000,459)
Shares, Forfeited	(13,000)
Shares, Restricted ending balance	2,589,261	3,459,661
Weighted-Average Grant Date Fair Value, Restricted beginning balance	$ 83.94
Weighted-Average Grant Date Fair Value, Granted	290.55	$ 254.73	$ 193.89
Weighted-Average Grant Date Fair Value, Vested	37.66
Weighted-Average Grant Date Fair Value, Forfeited	207.83
Weighted-Average Grant Date Fair Value, Restricted ending balance	$ 112.53	$ 83.94

Weighted-Average Assumptions Us

Weighted-Average Assumptions Used for Stock Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
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	3.04%	0.79%	0.26%
Expected volatility	23.10%	21.85%	20.89%
Expected dividend yield	2.84%	2.97%	3.69%
Grant date fair value	$ 46.6	$ 34.79	$ 20.76

Share-Based Compensation Expens

Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 28,821	$ 25,365	$ 22,129
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	3,856	2,908	2,447
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 24,965	$ 22,457	$ 19,682

Investment in Unconsolidated _2

Investment in Unconsolidated Entity - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2022
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
Carrier Enterprise LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired	38.10%

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) $ in Thousands	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

Acquisitions - Schedule of Reco

Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Apr. 09, 2021
Business Acquisition [Line Items]
Operating lease ROU assets	$ 317,314	$ 268,528
Operating lease liabilities, net of current portion	$ (232,144)	$ (187,024)
Temperature Equipment Corporation [Member]
Business Acquisition [Line Items]
Accounts receivable			$ 33,315
Inventories			71,325
Other current assets			962
Property and equipment			2,590
Operating lease ROU assets			53,829
Goodwill			18,724
Intangibles			19,900
Accounts payable			(25,393)
Accrued expenses and other current liabilities			(20,509)
Operating lease liabilities, net of current portion			(48,046)
Total			$ 106,697

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 434,019	$ 412,486
Acquired goodwill	60	21,291
Foreign currency translation adjustment	(2,772)	242
Allocation to intangible assets related to 2021 acquisition	(596)
Goodwill, Ending Balance	$ 430,711	$ 434,019

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill And Intangible Assets [Line Items]
Amortization expense related to finite lived intangible assets	$ 4,709	$ 5,561	$ 5,945

Intangible Assets (Detail)

Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Intangible Assets [Line Items]
Indefinite lived intangible assets—Trade names, trademarks and distribution rights	$ 154,086	$ 158,389
Finite lived intangible assets:
Accumulated amortization	(65,599)	(60,890)
Finite lived intangible assets, net	21,105	28,507
Intangible assets, net	175,191	186,896
Customer Relationships
Finite lived intangible assets:
Finite lived intangible assets	$ 83,943	86,526
Customer Relationships \| Maximum [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	18 years
Customer Relationships \| Minimum [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Trade Name
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	10 years
Finite lived intangible assets:
Finite lived intangible assets	$ 1,150	1,150
Patented And Unpatented Technology [Member]
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Finite lived intangible assets:
Finite lived intangible assets	$ 1,611	$ 1,721

Amortization Expense Related to

Amortization Expense Related to Finite Lived Intangible Assets (Detail) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 3,200
2024	3,000
2025	3,000
2026	2,800
2027	$ 1,500

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands			12 Months Ended
	Aug. 06, 2021	Aug. 23, 2018	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Aug. 16, 2022	Sep. 30, 1999
Stockholders Equity Note [Line Items]
Preferred stock outstanding			0	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]
Maximum aggregate offering amount of stock	$ 300,000
Number of shares sold under ATM			0
Class B Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			ten
Treasury stock, shares			48,263	48,263	48,263
Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled			one
Percentage of Board entitled to elect			25%
Treasury stock, shares			6,322,650	6,322,650	6,322,650

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Standby Letters of Credit
Financial Instrument [Line Items]
Fair value of contingent liability	$ 150	$ 150
Performance Bonds
Financial Instrument [Line Items]
Fair value of contingent liability	$ 13,700	$ 7,900

Derivatives - Impact from Forei

Derivatives - Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	$ 0	$ 97	$ 1,205
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	0	305	$ (574)
Foreign Currency Forward Contracts \| Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Gain recorded in accumulated other comprehensive loss	0	97
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	$ 0	$ 305

Derivatives - Fair Value of Der

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

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Foreign Currency Forward Contracts \| Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum length of time hedged in cash flow hedge	12 months
Foreign Exchange Forward And Option Contracts [Member] \| Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 3,300
Contract expiring terms	2023-01
Loss from foreign currency forward and option contracts not designated as hedging instruments	$ 917	$ 237	$ 490

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other assets
Assets:
Equity securities	$ 678	$ 1,790
Private equities	1,000	1,000
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments		5
Fair Value Measurements, Level 1 \| Other assets
Assets:
Equity securities	678	1,790
Fair Value Measurements, Level 2 \| Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments		5
Fair Value Measurements, Level 3 \| Other assets
Assets:
Private equities	$ 1,000	$ 1,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 12,256	$ 7,253
Maximum exposure to loss related to involvement with variable interest entity	6,700
Non-cancelable purchase obligations for goods	69,000
Variable interest entity cash deposit to cover contingency	3,000
Carrier and Its Affiliates [Member]
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 56,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Greenberg Traurig, P.A. \| Customary Fees for Legal Services
Related Party Transaction [Line Items]
Fees for related party transaction	$ 186	$ 225	$ 156
Amount payable to related party	1	34
Carrier and Its Affiliates \| Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	88,000	90,000
Revenues from sales to Carrier and its affiliates	$ 97,000	$ 108,000	$ 103,000
Carrier and Its Affiliates \| Supplier Concentration Risk \| Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	60%	61%	63%

Revenues and Long-Lived Assets

Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Geographic Area Information [Line Items]
Revenues	$ 7,274,344	$ 6,280,192	$ 5,054,928
Long-Lived Assets	1,189,475	1,124,461
United States
Geographic Area Information [Line Items]
Revenues	6,578,897	5,636,929	4,535,262
Long-Lived Assets	1,009,188	931,170
Canada
Geographic Area Information [Line Items]
Revenues	389,119	386,780	301,727
Long-Lived Assets	164,284	175,864
Latin America and Caribbean
Geographic Area Information [Line Items]
Revenues	306,328	256,483	$ 217,939
Long-Lived Assets	$ 16,003	$ 17,427

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flow Supplemental Disclosures [Line Items]
Interest paid	$ 3,505	$ 913	$ 1,844
Income taxes net of refunds	105,736	124,984	70,889
Makdad Industrial Supply Co., Inc
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0	997	0
Acme Refrigeration of Baton Rouge LLC
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	0	2,551	0
N&S Supply of Fishkill, Inc
Cash Flow Supplemental Disclosures [Line Items]
Business combination shares issued	$ 0	$ 0	$ (161)