Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WSO | |
Entity Registrant Name | WATSCO INC | |
Entity Central Index Key | 105,016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,118,302 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,309,088 |
Condensed Consolidated Unaudite
Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | $ 1,296,007 | $ 1,229,591 | $ 3,555,327 | $ 3,377,610 |
Cost of sales | 976,998 | 933,696 | 2,684,719 | 2,552,881 |
Gross profit | 319,009 | 295,895 | 870,608 | 824,729 |
Selling, general and administrative expenses | 200,408 | 183,728 | 565,519 | 534,515 |
Other income | 3,696 | 2,294 | 8,491 | 2,294 |
Operating income | 122,297 | 114,461 | 313,580 | 292,508 |
Interest expense, net | 1,047 | 2,117 | 2,375 | 5,019 |
Income before income taxes | 121,250 | 112,344 | 311,205 | 287,489 |
Income taxes | 24,364 | 32,325 | 63,678 | 82,855 |
Net income | 96,886 | 80,019 | 247,527 | 204,634 |
Less: net income attributable to non-controlling interest | 17,723 | 14,990 | 44,188 | 39,668 |
Net income attributable to Watsco, Inc. | $ 79,163 | $ 65,029 | $ 203,339 | $ 164,966 |
Earnings per share for Common and Class B common stock: | ||||
Basic | $ 2.12 | $ 1.82 | $ 5.44 | $ 4.62 |
Diluted | $ 2.11 | $ 1.82 | $ 5.43 | $ 4.62 |
Condensed Consolidated Unaudi_2
Condensed Consolidated Unaudited Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 96,886 | $ 80,019 | $ 247,527 | $ 204,634 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | 4,269 | 9,385 | (7,422) | 17,310 |
Unrealized gain (loss) on cash flow hedging instruments | 231 | (934) | 762 | (1,021) |
Reclassification of (gain) loss on cash flow hedging instruments into earnings | (915) | 64 | (57) | (797) |
Unrealized gain on equity securities | 13 | 16 | ||
Other comprehensive income (loss) | 3,585 | 8,528 | (6,717) | 15,508 |
Comprehensive income | 100,471 | 88,547 | 240,810 | 220,142 |
Less: comprehensive income attributable to non-controlling interest | 19,006 | 18,201 | 41,708 | 45,518 |
Comprehensive income attributable to Watsco, Inc. | $ 81,465 | $ 70,346 | $ 199,102 | $ 174,624 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 67,612 | $ 80,496 |
Accounts receivable, net | 602,753 | 478,133 |
Inventories | 810,869 | 761,314 |
Other current assets | 20,611 | 17,454 |
Total current assets | 1,501,845 | 1,337,397 |
Property and equipment, net | 91,275 | 91,198 |
Goodwill | 397,451 | 382,729 |
Intangible assets, net | 153,446 | 161,065 |
Other assets | 86,731 | 74,488 |
Total assets | 2,230,748 | 2,046,877 |
Current liabilities: | ||
Current portion of other long-term obligations | 178 | 244 |
Borrowings under revolving credit agreement | 116,400 | |
Accounts payable | 234,482 | 230,476 |
Accrued expenses and other current liabilities | 157,761 | 185,757 |
Total current liabilities | 508,821 | 416,477 |
Long-term obligations: | ||
Borrowings under revolving credit agreement | 21,800 | |
Other long-term obligations, net of current portion | 169 | 285 |
Total long-term obligations | 169 | 22,085 |
Deferred income taxes and other liabilities | 61,208 | 57,338 |
Commitments and contingencies | ||
Watsco, Inc. shareholders' equity: | ||
Preferred stock, $0.50 par value | ||
Paid-in capital | 829,050 | 804,008 |
Accumulated other comprehensive loss, net of tax | (38,157) | (34,221) |
Retained earnings | 642,643 | 594,556 |
Treasury stock, at cost | (87,440) | (87,440) |
Total Watsco, Inc. shareholders' equity | 1,367,244 | 1,297,953 |
Non-controlling interest | 293,306 | 253,024 |
Total shareholders' equity | 1,660,550 | 1,550,977 |
Total liabilities and shareholders' equity | 2,230,748 | 2,046,877 |
Common Stock | ||
Watsco, Inc. shareholders' equity: | ||
Common stock, $0.50 par value | 18,464 | 18,412 |
Class B Common Stock | ||
Watsco, Inc. shareholders' equity: | ||
Common stock, $0.50 par value | $ 2,684 | $ 2,638 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value | $ 0.50 | $ 0.50 |
Common Stock | ||
Common stock, par value | 0.50 | 0.50 |
Class B Common Stock | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Condensed Consolidated Unaudi_3
Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 247,527 | $ 204,634 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,500 | 16,509 |
Share-based compensation | 11,769 | 9,599 |
Deferred income tax provision | 3,925 | 4,101 |
Non-cash contribution to 401(k) plan | 2,945 | 2,428 |
Other income from investment in unconsolidated entity | (8,491) | (2,294) |
Other, net | 927 | 103 |
Changes in operating assets and liabilities, net of effects of acquisition: | ||
Accounts receivable | (126,181) | (89,394) |
Inventories | (50,566) | (97,685) |
Accounts payable and other liabilities | (23,286) | 141,885 |
Other, net | (5,004) | (507) |
Net cash provided by operating activities | 70,065 | 189,379 |
Cash flows from investing activities: | ||
Capital expenditures | (12,897) | (13,829) |
Business acquisition, net of cash acquired | (5,828) | |
Investment in unconsolidated entity | (3,760) | (63,600) |
Proceeds from sale of property and equipment | 143 | 139 |
Net cash used in investing activities | (22,342) | (77,290) |
Cash flows from financing activities: | ||
Dividends on Common and Class B common stock | (154,951) | (119,468) |
Repurchases of common stock to satisfy employee withholding tax obligations | (3,782) | (4,674) |
Distributions to non-controlling interest | (2,178) | (6,799) |
Net (repayments) proceeds of other long-term obligations | (182) | 41 |
Purchase of additional ownership from non-controlling interest | (42,688) | |
Net proceeds from the sale of Common stock | 5,391 | |
Proceeds from non-controlling interest for investment in unconsolidated entity | 752 | 12,720 |
Net proceeds from issuances of common stock | 5,979 | 3,115 |
Net proceeds under revolving credit agreement | 94,600 | 49,406 |
Net cash used in financing activities | (59,762) | (102,956) |
Effect of foreign exchange rate changes on cash and cash equivalents | (845) | 1,524 |
Net (decrease) increase in cash and cash equivalents | (12,884) | 10,657 |
Cash and cash equivalents at beginning of period | 80,496 | 56,010 |
Cash and cash equivalents at end of period | 67,612 | $ 66,667 |
Supplemental cash flow information: | ||
Common stock issued for Alert Labs Inc. | $ 8,180 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2018 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns, primarily during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is generally evenly distributed throughout the year, subject to weather and economic conditions, including their effect on the number of housing completions. 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 other assets 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. Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2018 presentation. These reclassifications had no effect on net income or earnings per share as previously reported. Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. Recently Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. In 2015 and 2016, the FASB issued several updates to this standard. The adoption of this standard and its related amendments (collectively, the “New Revenue Standard”) on January 1, 2018 did not result in the recognition of a cumulative adjustment to opening retained earnings under the modified retrospective approach, nor did it have a significant impact on our consolidated net income, balance sheet or cash flow. See Note 2. Financial Instruments In January 2016, the FASB issued guidance related to certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Most prominent among the changes to the standard is the requirement that changes in the fair value of equity investments, with certain exceptions, be recognized through net income rather than other comprehensive income. This guidance must be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings and became effective for interim and annual periods beginning after December 15, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements. A cumulative-effect adjustment captured the previously held unrealized losses of $301 related to our equity securities carried at fair value. See Note 4. Stock Compensation In May 2017, the FASB issued guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance must be applied prospectively and became effective for interim and annual periods beginning after December 15, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued guidance to simplify the accounting for hedging derivatives. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We elected to adopt this guidance during the quarter ended June 30, 2018, which did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires the use of a modified retrospective approach to apply the standard at the beginning of the earliest period presented in the financial statements. In July 2018, updated guidance was issued which provides an additional transition method of adoption that allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. We will adopt the guidance on January 1, 2019 using this additional transition method and recognize a cumulative-effect adjustment to the opening balance of retained earnings. Based on our preliminary assessment of our lease portfolio, we expect the adoption of this guidance to have a material impact on our consolidated balance sheets due to the recognition of right-of-use 10-K Intangibles—Goodwill and Other In January 2017, the FASB issued guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this updated standard, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity also should consider income tax effects from any tax-deductible |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2018 | |
REVENUES | 2. REVENUES Adoption of New Revenue Standard We adopted the New Revenue Standard on January 1, 2018 using the modified retrospective approach. The New Revenue Standard did not have an impact on the amount or timing of our revenue recognition; however, certain payments to customers were reclassified from expenses to a reduction from revenues, resulting in an immaterial impact to the individual financial statement line items of our condensed consolidated unaudited statements of income. Results for reporting periods beginning on and after January 1, 2018 are presented under the New Revenue Standard, while prior period results have not been adjusted and continue to be reported under the accounting standards in effect for those periods. Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment and related parts and supplies. We generate our revenue primarily from the sale of finished products to customers; therefore, the significant majority of our contracts are short-term in nature and have only a single performance obligation to deliver products; therefore, we satisfy our performance obligation under such contracts when we transfer control of the product to the customer. Some contracts contain a combination of product sales and services, the latter of which is distinct and accounted for as a separate performance obligation. We satisfy our performance obligations for services when we render the services within the agreed-upon service period. Total service revenue is not material and accounted for less than 1% of our consolidated revenues for both the quarter and nine months ended September 30, 2018. Revenue is recognized when control transfers to our customers when 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. Substantially all customer returns relate to products that are returned under manufacturers’ warranty obligations. Accrued sales returns of $14,702 at September 30, 2018 were included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheet. Sales Incentives We estimate sales incentives expected to be paid over the term of the program based on the most likely amounts. Sales incentives are accounted for as a reduction in the transaction price and are generally paid on an annual basis. Disaggregation of Revenues The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2018 2017(1) 2018 2017(1) Primary Geographical Regions: United States $ 1,176,087 $ 1,114,162 $ 3,233,731 $ 3,064,181 Canada 87,251 76,408 218,730 199,788 Mexico 32,669 39,021 102,866 113,641 $ 1,296,007 $ 1,229,591 $ 3,555,327 $ 3,377,610 Major Product Lines: HVAC equipment 68 % 68 % 68 % 67 % Other HVAC products 28 % 27 % 28 % 28 % Commercial refrigeration products 4 % 5 % 4 % 5 % 100 % 100 % 100 % 100 % (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method and remain as originally reported for such periods. 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
EARNINGS PER SHARE | 3. EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 79,163 $ 65,029 $ 203,339 $ 164,966 Less: distributed and undistributed earnings allocated to non-vested 6,451 5,470 16,600 13,844 Earnings allocated to Watsco, Inc. shareholders $ 72,712 $ 59,559 $ 186,739 $ 151,122 Weighted-average common shares outstanding - Basic 34,339,859 32,712,151 34,301,672 32,679,334 Basic earnings per share for Common and Class B common stock $ 2.12 $ 1.82 $ 5.44 $ 4.62 Allocation of earnings for Basic: Common stock $ 67,201 $ 54,627 $ 172,571 $ 138,594 Class B common stock 5,511 4,932 14,168 12,528 $ 72,712 $ 59,559 $ 186,739 $ 151,122 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 79,163 $ 65,029 $ 203,339 $ 164,966 Less: distributed and undistributed earnings allocated to non-vested 6,448 5,468 16,593 13,840 Earnings allocated to Watsco, Inc. shareholders $ 72,715 $ 59,561 $ 186,746 $ 151,126 Weighted-average common shares outstanding - Basic 34,339,859 32,712,151 34,301,672 32,679,334 Effect of dilutive stock options 59,530 34,215 64,850 32,516 Weighted-average common shares outstanding - Diluted 34,399,389 32,746,366 34,366,522 32,711,850 Diluted earnings per share for Common and Class B common stock $ 2.11 $ 1.82 $ 5.43 $ 4.62 Anti-dilutive stock options not included above 79,316 12,571 39,751 33,156 Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At September 30, 2018 and 2017, our outstanding Class B common stock was convertible into 2,602,528 and 2,709,194 shares of our Common stock, respectively. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2018 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 4. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as its functional currency and changes in the unrealized gains (losses) on cash flow hedging instruments and equity securities. The tax effects allocated to each component of other comprehensive income (loss) were as follows: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Foreign currency translation adjustment $ 4,269 $ 9,385 $ (7,422 ) $ 17,310 Unrealized gain (loss) on cash flow hedging instruments 316 (1,280 ) 1,043 (1,399 ) Income tax (expense) benefit (85 ) 346 (281 ) 378 Unrealized gain (loss) on cash flow hedging instruments, net of tax 231 (934 ) 762 (1,021 ) Reclassification of (gain) loss on cash flow hedging instruments into earnings (1,253 ) 88 (78 ) (1,092 ) Income tax expense (benefit) 338 (24 ) 21 295 Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax (915 ) 64 (57 ) (797 ) Unrealized gain on equity securities — 20 — 25 Income tax expense — (7 ) — (9 ) Unrealized gain on equity securities, net of tax — 13 — 16 Other comprehensive income (loss) $ 3,585 $ 8,528 $ (6,717 ) $ 15,508 The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2018 2017 Foreign currency translation adjustment: Beginning balance $ (33,499 ) $ (43,459 ) Current period other comprehensive (loss) income (4,660 ) 10,733 Ending balance (38,159 ) (32,726 ) Cash flow hedging instruments: Beginning balance (421 ) 215 Current period other comprehensive income (loss) 457 (613 ) Less reclassification adjustment (34 ) (478 ) Ending balance 2 (876 ) Equity securities: Beginning balance (301 ) (286 ) Cumulative-effect adjustment to retained earnings 301 — Current period other comprehensive income — 16 Ending balance — (270 ) Accumulated other comprehensive loss, net of tax $ (38,157 ) $ (33,872 ) |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2018 | |
DEBT | 5. DEBT We maintain an unsecured, syndicated 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. Effective February 5, 2018, we decreased the borrowing capacity under this revolving credit agreement from $600,000 to $300,000. At September 30, 2018 and December 31, 2017, $116,400 and $21,800, respectively, were outstanding under the revolving credit agreement. The credit agreement matures on July 1, 2019 and, accordingly, borrowings outstanding under the credit agreement are classified as current liabilities in our condensed consolidated unaudited balance sheet at September 30, 2018. We believe that we will refinance the credit agreement at or prior to its maturity on similar terms and subject to similar conditions. 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 September 30, 2018. |
PURCHASE OF ADDITIONAL OWNERSHI
PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE | 9 Months Ended |
Sep. 30, 2018 | |
PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE | 6. PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURE On February 13, 2017, we purchased an additional 10% ownership interest in Carrier Enterprise Northeast LLC, which we refer to as Carrier Enterprise II, for cash consideration of $42,688, which increased our controlling interest from 70% to 80%. Carrier Enterprise II was formed in 2011 as a joint venture with Carrier. Carrier Enterprise II had sales of approximately $545,000 for the year ended December 31, 2017 from 40 locations in the northeastern United States and 14 locations in Mexico. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITY | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENT IN UNCONSOLIDATED ENTITY | 7. INVESTMENT IN UNCONSOLIDATED ENTITY On June 21, 2017, our first joint venture with Carrier, Carrier Enterprise, LLC, which we refer to as Carrier Enterprise I, acquired an approximately 35% ownership interest in Russell Sigler, Inc. (“RSI”), an HVAC distributor with 2017 sales of approximately $680,000, operating from 30 locations in the Western U.S. We have an 80% controlling interest in Carrier Enterprise I, and Carrier has a 20% non-controlling |
ACQUISITION
ACQUISITION | 9 Months Ended |
Sep. 30, 2018 | |
ACQUISITION | 8. ACQUISITION On August 23, 2018, one of our wholly owned subsidiaries acquired Alert Labs Inc., a technology company based in Ontario, Canada for cash consideration of $5,889 and the issuance of 47,103 shares of Common stock, having a fair value of $8,180. The results of operations of the acquisition have been included in the consolidated financial statements from the date of acquisition. The pro forma effect of the acquisition was not deemed significant to the consolidated financial statements. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2018 | |
DERIVATIVES | 9. DERIVATIVES We enter into foreign currency forward and option contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at September 30, 2018, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at September 30, 2018 was $36,800, and such contracts have varying terms expiring through June 2019. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Gain (loss) recorded in accumulated other comprehensive loss $ 316 $ (1,280 ) $ 1,043 $ (1,399 ) (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ (1,253 ) $ 88 $ (78 ) $ (1,092 ) At September 30, 2018, we expected an estimated $3 pre-tax Derivatives Not Designated as Hedging Instruments We have also entered into foreign currency forward and option contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at September 30, 2018 was $12,000, and such contracts have varying terms expiring through November 2018. We recognized losses of $(108), $(502), $(299) and $(912) from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters and nine months ended September 30, 2018 and 2017, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in other current assets and accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 10. Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Derivatives designated as hedging instruments $ 123 $ 70 $ 334 $ 773 Derivatives not designated as hedging instruments — 180 74 184 Total derivative instruments $ 123 $ 250 $ 408 $ 957 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 123 $ — $ 123 $ — Equity securities Other assets $ 372 $ 372 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 408 $ — $ 408 $ — Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 250 $ — $ 250 $ — Equity securities Other assets $ 332 $ 332 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 957 $ — $ 957 $ — 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 Derivative financial instruments There were no transfers in or out of Level 1 and Level 2 during the nine months ended September 30, 2018. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2018 | |
SHAREHOLDERS' EQUITY | 11. SHAREHOLDERS’ EQUITY At-the-Market On August 23, 2017, we entered into a sales agreement with Robert W. Baird & Co. Inc., which enabled the Company to issue and sell shares of Common stock in one or more negotiated 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 $250,000 (the “ATM Program”). The offer and sale of our Common stock pursuant to the ATM Program was registered under the Securities Act pursuant to our automatically effective shelf registration statement on Form S-3 No. 333-207831). During the quarter and nine months ended September 30, 2017, we sold 35,000 shares of Common stock under the ATM Program for net proceeds of $5,391. Direct costs of $285 incurred in connection with the offering were charged against the proceeds from the sale of Common stock and reflected as a reduction of paid-in Common Stock Dividends We paid cash dividends of $1.45, $1.25, $4.15 and $3.35 per share of both Common stock and Class B common stock during the quarters and nine months ended September 30, 2018 and 2017, respectively. Non-Vested During the quarters and nine months ended September 30, 2018 and 2017, we granted 10,000, 9,000, 110,109 and 164,899 shares of non-vested During the quarters and nine months ended September 30, 2018 and 2017, 8,830, 12,354, 21,754 and 32,454 shares of Common stock, respectively, with aggregate fair market values of $1,562, $1,893, $3,775 and $4,664, respectively, were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of non-vested Exercise of Stock Options During the quarters and nine months ended September 30, 2018 and 2017, 8,600, 9,084, 53,184 and 25,084 stock options, respectively, were exercised for Common stock. Cash received from common stock issued as a result of stock options exercised during the quarters and nine months ended September 30, 2018 and 2017, was $856, $801, $4,837 and $2,111, respectively. During the quarter and nine months ended September 30, 2018, 376 shares of Common stock with an aggregate fair market value of $69 and 7,027 shares of Common stock with an aggregate fair market value of $1,269, respectively, were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. During the quarter and nine months ended September 30, 2017, 350 shares of Common stock with an aggregate fair market value of $53 were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. Employee Stock Purchase Plan During the quarters and nine months ended September 30, 2018 and 2017, 2,235, 2,718, 6,716 and 6,977 shares of Common stock, respectively, were issued under our employee stock purchase plan for which we received net proceeds of $382, $402, $1,142 and $1,004, respectively. 401(k) Plan During the nine months ended September 30, 2018 and 2017, we issued 17,318 and 16,389 shares of Common stock, respectively, to our profit sharing retirement plan, representing the Common stock discretionary matching contributions of $2,945 and $2,428, respectively. Non-controlling As described under the heading “Joint Ventures with Carrier Corporation” in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operation” contained in this Quarterly Report on Form 10-Q, non-controlling non-controlling Non-controlling $ 253,024 Net income attributable to non-controlling 44,188 Foreign currency translation adjustment (2,762 ) Distributions to non-controlling (2,178 ) Investment in unconsolidated entity 752 Gain recorded in accumulated other comprehensive loss 305 Gain reclassified from accumulated other comprehensive loss into earnings (23 ) Non-controlling $ 293,306 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,562 and $2,344 at September 30, 2018 and December 31, 2017, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 64%, 62%, 63% and 62% of all inventory purchases made during the quarters and nine months ended September 30, 2018 and 2017, respectively. At September 30, 2018 and December 31, 2017, approximately $93,000 and $75,000, respectively, was payable to Carrier and its affiliates, net of receivables. Our joint ventures with Carrier also sell HVAC products to Carrier and its affiliates. Revenues in our condensed consolidated unaudited statements of income for the quarters and nine months ended September 30, 2018 and 2017 included approximately $28,000, $19,000, $65,000 and $51,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length A member of our Board of Directors is the Chairman and Chief Executive Officer of Moss & Associates LLC, who served as general contractor for the remodeling of our Miami headquarters, which was completed in 2018. We paid Moss & Associates LLC $0, $58, $124 and $702 for construction services performed during the quarters and nine months ended September 30, 2018 and 2017, respectively, and no amount was payable at September 30, 2018. A member of our Board of Directors is the Senior Chairman of Greenberg Traurig, P.A., which serves as our principal outside counsel for compliance and acquisition-related legal services. During the quarters and nine months ended September 30, 2018 and 2017, we paid this firm $0, $71, $18 and $291 for services performed, respectively, and $113 was payable at September 30, 2018. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2018 | |
SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT On October 23, 2018, our Board of Directors approved an increase to the quarterly cash dividend per share of Common and Class B common stock to $1.60 per share from $1.45 per share, beginning with the dividend that will be paid in January 2019. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Basis of Consolidation | Basis of Consolidation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. The accompanying September 30, 2018 interim condensed consolidated unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, but we believe the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation have been included in the condensed consolidated unaudited financial statements included herein. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the quarter and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Sales of residential central air conditioners, heating equipment, and parts and supplies are seasonal. Furthermore, results of operations can be impacted favorably or unfavorably based on weather patterns, primarily during the Summer and Winter selling seasons. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction market is generally evenly distributed throughout the year, subject to weather and economic conditions, including their effect on the number of housing completions. |
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 other assets 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. |
Reclassifications | Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2018 presentation. These reclassifications had no effect on net income or earnings per share as previously reported. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated unaudited financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. In 2015 and 2016, the FASB issued several updates to this standard. The adoption of this standard and its related amendments (collectively, the “New Revenue Standard”) on January 1, 2018 did not result in the recognition of a cumulative adjustment to opening retained earnings under the modified retrospective approach, nor did it have a significant impact on our consolidated net income, balance sheet or cash flow. See Note 2. Financial Instruments In January 2016, the FASB issued guidance related to certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Most prominent among the changes to the standard is the requirement that changes in the fair value of equity investments, with certain exceptions, be recognized through net income rather than other comprehensive income. This guidance must be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings and became effective for interim and annual periods beginning after December 15, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements. A cumulative-effect adjustment captured the previously held unrealized losses of $301 related to our equity securities carried at fair value. See Note 4. Stock Compensation In May 2017, the FASB issued guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance must be applied prospectively and became effective for interim and annual periods beginning after December 15, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued guidance to simplify the accounting for hedging derivatives. This guidance is effective prospectively and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We elected to adopt this guidance during the quarter ended June 30, 2018, which did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires the use of a modified retrospective approach to apply the standard at the beginning of the earliest period presented in the financial statements. In July 2018, updated guidance was issued which provides an additional transition method of adoption that allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. We will adopt the guidance on January 1, 2019 using this additional transition method and recognize a cumulative-effect adjustment to the opening balance of retained earnings. Based on our preliminary assessment of our lease portfolio, we expect the adoption of this guidance to have a material impact on our consolidated balance sheets due to the recognition of right-of-use 10-K Intangibles—Goodwill and Other In January 2017, the FASB issued guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under this updated standard, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity also should consider income tax effects from any tax-deductible |
Self-Insurance | Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,562 and $2,344 at September 30, 2018 and December 31, 2017, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Disaggregated Revenue | The following table presents our revenues disaggregated by primary geographical regions and major product lines within our single reporting segment: Quarter Ended Nine Months Ended 2018 2017(1) 2018 2017(1) Primary Geographical Regions: United States $ 1,176,087 $ 1,114,162 $ 3,233,731 $ 3,064,181 Canada 87,251 76,408 218,730 199,788 Mexico 32,669 39,021 102,866 113,641 $ 1,296,007 $ 1,229,591 $ 3,555,327 $ 3,377,610 Major Product Lines: HVAC equipment 68 % 68 % 68 % 67 % Other HVAC products 28 % 27 % 28 % 28 % Commercial refrigeration products 4 % 5 % 4 % 5 % 100 % 100 % 100 % 100 % (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method and remain as originally reported for such periods. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Basic and Diluted Earnings Per Common Share | The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 79,163 $ 65,029 $ 203,339 $ 164,966 Less: distributed and undistributed earnings allocated to non-vested 6,451 5,470 16,600 13,844 Earnings allocated to Watsco, Inc. shareholders $ 72,712 $ 59,559 $ 186,739 $ 151,122 Weighted-average common shares outstanding - Basic 34,339,859 32,712,151 34,301,672 32,679,334 Basic earnings per share for Common and Class B common stock $ 2.12 $ 1.82 $ 5.44 $ 4.62 Allocation of earnings for Basic: Common stock $ 67,201 $ 54,627 $ 172,571 $ 138,594 Class B common stock 5,511 4,932 14,168 12,528 $ 72,712 $ 59,559 $ 186,739 $ 151,122 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 79,163 $ 65,029 $ 203,339 $ 164,966 Less: distributed and undistributed earnings allocated to non-vested 6,448 5,468 16,593 13,840 Earnings allocated to Watsco, Inc. shareholders $ 72,715 $ 59,561 $ 186,746 $ 151,126 Weighted-average common shares outstanding - Basic 34,339,859 32,712,151 34,301,672 32,679,334 Effect of dilutive stock options 59,530 34,215 64,850 32,516 Weighted-average common shares outstanding - Diluted 34,399,389 32,746,366 34,366,522 32,711,850 Diluted earnings per share for Common and Class B common stock $ 2.11 $ 1.82 $ 5.43 $ 4.62 Anti-dilutive stock options not included above 79,316 12,571 39,751 33,156 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | The tax effects allocated to each component of other comprehensive income (loss) were as follows: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Foreign currency translation adjustment $ 4,269 $ 9,385 $ (7,422 ) $ 17,310 Unrealized gain (loss) on cash flow hedging instruments 316 (1,280 ) 1,043 (1,399 ) Income tax (expense) benefit (85 ) 346 (281 ) 378 Unrealized gain (loss) on cash flow hedging instruments, net of tax 231 (934 ) 762 (1,021 ) Reclassification of (gain) loss on cash flow hedging instruments into earnings (1,253 ) 88 (78 ) (1,092 ) Income tax expense (benefit) 338 (24 ) 21 295 Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax (915 ) 64 (57 ) (797 ) Unrealized gain on equity securities — 20 — 25 Income tax expense — (7 ) — (9 ) Unrealized gain on equity securities, net of tax — 13 — 16 Other comprehensive income (loss) $ 3,585 $ 8,528 $ (6,717 ) $ 15,508 |
Schedule of Accumulated Other Comprehensive Loss | The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Nine Months Ended September 30, 2018 2017 Foreign currency translation adjustment: Beginning balance $ (33,499 ) $ (43,459 ) Current period other comprehensive (loss) income (4,660 ) 10,733 Ending balance (38,159 ) (32,726 ) Cash flow hedging instruments: Beginning balance (421 ) 215 Current period other comprehensive income (loss) 457 (613 ) Less reclassification adjustment (34 ) (478 ) Ending balance 2 (876 ) Equity securities: Beginning balance (301 ) (286 ) Cumulative-effect adjustment to retained earnings 301 — Current period other comprehensive income — 16 Ending balance — (270 ) Accumulated other comprehensive loss, net of tax $ (38,157 ) $ (33,872 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges | The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows: Quarter Ended Nine Months Ended 2018 2017 2018 2017 Gain (loss) recorded in accumulated other comprehensive loss $ 316 $ (1,280) $ 1,043 $ (1,399 ) (Gain) loss reclassified from accumulated other comprehensive loss into earnings $ (1,253) $ 88 $ (78 ) $ (1,092 ) |
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 other current assets and accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 10. Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Derivatives designated as hedging instruments $ 123 $ 70 $ 334 $ 773 Derivatives not designated as hedging instruments — 180 74 184 Total derivative instruments $ 123 $ 250 $ 408 $ 957 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 123 $ — $ 123 $ — Equity securities Other assets $ 372 $ 372 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 408 $ — $ 408 $ — Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivative financial instruments Other current assets $ 250 $ — $ 250 $ — Equity securities Other assets $ 332 $ 332 $ — $ — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 957 $ — $ 957 $ — |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Rollforward of Non-controlling Interest Balance | The following table reconciles shareholders’ equity attributable to Carrier’s non-controlling Non-controlling $ 253,024 Net income attributable to non-controlling 44,188 Foreign currency translation adjustment (2,762 ) Distributions to non-controlling (2,178 ) Investment in unconsolidated entity 752 Gain recorded in accumulated other comprehensive loss 305 Gain reclassified from accumulated other comprehensive loss into earnings (23 ) Non-controlling $ 293,306 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)Entity | |
Significant Accounting Policies [Line Items] | |
Number of joint ventures | Entity | 3 |
Cumulative-effect adjustment to retained earnings | $ | $ 301 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Accrued sales returns included in accrued expenses and other current liabilities | $ 14,702 | $ 14,702 |
Product Concentration Risk | Total Service Revenue | Maximum | ||
Total service revenue as percentage of consolidated revenues | 1.00% | 1.00% |
Summary of Disaggregated Revenu
Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,296,007 | $ 1,229,591 | $ 3,555,327 | $ 3,377,610 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,176,087 | 1,114,162 | 3,233,731 | 3,064,181 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87,251 | 76,408 | 218,730 | 199,788 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 32,669 | $ 39,021 | $ 102,866 | $ 113,641 |
Sales Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from product lines, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Sales Revenue | HVAC Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from product lines, percentage | 68.00% | 68.00% | 68.00% | 67.00% |
Sales Revenue | Other HVAC Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from product lines, percentage | 28.00% | 27.00% | 28.00% | 28.00% |
Sales Revenue | Commercial Refrigeration Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from product lines, percentage | 4.00% | 5.00% | 4.00% | 5.00% |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Watsco, Inc. shareholders | $ 79,163 | $ 65,029 | $ 203,339 | $ 164,966 |
Less: distributed and undistributed earnings allocated to non-vested restricted common stock - Basic | 6,451 | 5,470 | 16,600 | 13,844 |
Earnings allocated to Watsco, Inc. shareholders - Basic | $ 72,712 | $ 59,559 | $ 186,739 | $ 151,122 |
Weighted-average common shares outstanding - Basic | 34,339,859 | 32,712,151 | 34,301,672 | 32,679,334 |
Basic earnings per share for Common and Class B common stock | $ 2.12 | $ 1.82 | $ 5.44 | $ 4.62 |
Net income attributable to Watsco, Inc. shareholders | $ 79,163 | $ 65,029 | $ 203,339 | $ 164,966 |
Less: distributed and undistributed earnings allocated to non-vested restricted common stock - Diluted | 6,448 | 5,468 | 16,593 | 13,840 |
Earnings allocated to Watsco, Inc. shareholders - Diluted | $ 72,715 | $ 59,561 | $ 186,746 | $ 151,126 |
Weighted-average common shares outstanding - Basic | 34,339,859 | 32,712,151 | 34,301,672 | 32,679,334 |
Effect of dilutive stock options | 59,530 | 34,215 | 64,850 | 32,516 |
Weighted-average common shares outstanding - Diluted | 34,399,389 | 32,746,366 | 34,366,522 | 32,711,850 |
Diluted earnings per share for Common and Class B common stock | $ 2.11 | $ 1.82 | $ 5.43 | $ 4.62 |
Anti-dilutive stock options not included above | 79,316 | 12,571 | 39,751 | 33,156 |
Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Earnings allocated to Watsco, Inc. shareholders - Basic | $ 67,201 | $ 54,627 | $ 172,571 | $ 138,594 |
Class B Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Earnings allocated to Watsco, Inc. shareholders - Basic | $ 5,511 | $ 4,932 | $ 14,168 | $ 12,528 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | Sep. 30, 2018 | Sep. 30, 2017 |
Earnings Per Share [Line Items] | ||
Class B common stock conversion, number of shares | 2,602,528 | 2,709,194 |
Schedule of Tax Effects Allocat
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components Of Other Comprehensive Income Loss [Line Items] | ||||
Foreign currency translation adjustment | $ 4,269 | $ 9,385 | $ (7,422) | $ 17,310 |
Unrealized gain (loss) on cash flow hedging instruments | 316 | (1,280) | 1,043 | (1,399) |
Income tax (expense) benefit | (85) | 346 | (281) | 378 |
Unrealized gain (loss) on cash flow hedging instruments, net of tax | 231 | (934) | 762 | (1,021) |
Reclassification of (gain) loss on cash flow hedging instruments into earnings | (1,253) | 88 | (78) | (1,092) |
Income tax expense (benefit) | 338 | (24) | 21 | 295 |
Reclassification of (gain) loss on cash flow hedging instruments into earnings, net of tax | (915) | 64 | (57) | (797) |
Unrealized gain on equity securities | 20 | 25 | ||
Income tax expense | (7) | (9) | ||
Unrealized gain on equity securities, net of tax | 13 | 16 | ||
Other comprehensive income (loss) | $ 3,585 | $ 8,528 | $ (6,717) | $ 15,508 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (34,221) | |
Cumulative-effect adjustment to retained earnings | 301 | |
Ending balance | (38,157) | $ (33,872) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (33,499) | (43,459) |
Current period other comprehensive (loss) income | (4,660) | 10,733 |
Ending balance | (38,159) | (32,726) |
Cash Flow Hedging Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (421) | 215 |
Current period other comprehensive (loss) income | 457 | (613) |
Less reclassification adjustment | (34) | (478) |
Ending balance | 2 | (876) |
Equity Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (301) | (286) |
Cumulative-effect adjustment to retained earnings | $ 301 | |
Current period other comprehensive (loss) income | 16 | |
Ending balance | $ (270) |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Feb. 05, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Borrowings under revolving credit agreement | $ 116,400,000 | ||
Borrowings under revolving credit agreement | $ 21,800,000 | ||
Current Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit agreement, maturity date | Jul. 1, 2019 | ||
Credit agreement, maximum borrowing capacity | $ 300,000,000 | 600,000,000 | |
Borrowings under revolving credit agreement | $ 116,400,000 | ||
Borrowings under revolving credit agreement | $ 21,800,000 |
Purchase of Additional Owners_2
Purchase of Additional Ownership Interest in Joint Ventures - Additional Information (Detail) $ in Thousands | Feb. 13, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Location | Feb. 12, 2017 |
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 42,688 | ||||||
Revenues | $ 1,296,007 | $ 1,229,591 | $ 3,555,327 | 3,377,610 | |||
Mexico | |||||||
Business Acquisition [Line Items] | |||||||
Revenues | $ 32,669 | $ 39,021 | $ 102,866 | $ 113,641 | |||
Carrier Enterprise II | |||||||
Business Acquisition [Line Items] | |||||||
Additional ownership interest acquired | 10.00% | ||||||
Cash consideration | $ 42,688 | ||||||
Controlling interest, ownership percentage | 80.00% | 80.00% | 80.00% | 70.00% | |||
Carrier Enterprise II | |||||||
Business Acquisition [Line Items] | |||||||
Revenues | $ 545,000 | ||||||
Carrier Enterprise II | Northeast U.S. | |||||||
Business Acquisition [Line Items] | |||||||
Number of locations | Location | 40 | ||||||
Carrier Enterprise II | Mexico | |||||||
Business Acquisition [Line Items] | |||||||
Number of locations | Location | 14 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entity - Additional Information (Detail) $ in Thousands | Jul. 05, 2018USD ($) | Jun. 21, 2017USD ($)board_memberLocation | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 29, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated entity | $ 3,760 | $ 63,600 | ||||
Proceeds from non-controlling interest for investment in unconsolidated entity | $ 752 | $ 12,720 | ||||
Carrier Enterprise I | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage by parent | 80.00% | |||||
Ownership percentage, by non-controlling owners | 20.00% | |||||
Russell Sigler Inc | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest acquired | 35.00% | 36.30% | ||||
Investment in unconsolidated entity | $ 3,760 | $ 63,600 | ||||
Contribution to investment in unconsolidated entity by controlling interest | 3,008 | 50,880 | ||||
Proceeds from non-controlling interest for investment in unconsolidated entity | $ 752 | $ 12,720 | ||||
Ownership percentage needed for right to purchase up to 100% | 85.00% | |||||
Total number of board members | board_member | 6 | |||||
Number of board members that can be appointed based on ownership | board_member | 2 | |||||
Equity method investment, additional ownership interest acquired | 1.40% | |||||
Russell Sigler Inc | Western United States | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of locations | Location | 30 | |||||
Russell Sigler sales | $ 680,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Aug. 23, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||
Business acquisition, fair value of common stock | $ 8,180,000 | |
Alert Labs Inc | ||
Business Acquisition [Line Items] | ||
Business acquisition, cash consideration | $ 5,889,000 | |
Business acquisition, issuance of shares of common stock | 47,103 | |
Business acquisition, fair value of common stock | $ 8,180,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign Currency Forward Contracts | Cash Flow Hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional value of derivatives | $ 36,800,000 | $ 36,800,000 | ||
Contract maturity period | One year or less | |||
Contract expiring terms | 2019-06 | |||
Maximum length of time hedged in cash flow hedge | 12 months | |||
Pre-tax gain to be reclassified into earnings within the next 12 months | 3,000 | $ 3,000 | ||
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 | 12,000,000 | $ 12,000,000 | ||
Contract expiring terms | 2018-11 | |||
Losses from foreign currency forward and option contracts not designated as hedging instruments | $ (108,000) | $ (502,000) | $ (299,000) | $ (912,000) |
Impact from Foreign Exchange De
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recorded in accumulated other comprehensive loss | $ 316 | $ (1,280) | $ 1,043 | $ (1,399) |
(Gain) loss reclassified from accumulated other comprehensive loss into earnings | (1,253) | 88 | (78) | (1,092) |
Foreign Currency Forward Contracts | Cash Flow Hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recorded in accumulated other comprehensive loss | 316 | (1,280) | 1,043 | (1,399) |
(Gain) loss reclassified from accumulated other comprehensive loss into earnings | $ (1,253) | $ 88 | $ (78) | $ (1,092) |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Exchange Forward And Option Contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative instruments, liabilities derivatives | $ 408 | $ 957 |
Derivative instruments, assets derivatives | 123 | 250 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments, liabilities derivatives | 334 | 773 |
Derivative instruments, assets derivatives | 123 | 70 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments, liabilities derivatives | $ 74 | 184 |
Derivative instruments, assets derivatives | $ 180 |
Assets and Liabilities Carried
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other current assets | ||
Assets: | ||
Derivative financial instruments | $ 123 | $ 250 |
Other assets | ||
Assets: | ||
Equity securities | 372 | 332 |
Accrued expenses and other current liabilities | ||
Liabilities: | ||
Derivative financial instruments | 408 | 957 |
Fair Value Measurements, Level 1 | Other assets | ||
Assets: | ||
Equity securities | 372 | 332 |
Fair Value Measurements, Level 2 | Other current assets | ||
Assets: | ||
Derivative financial instruments | 123 | 250 |
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities | ||
Liabilities: | ||
Derivative financial instruments | $ 408 | $ 957 |
Shareholders' Equity - At-the-M
Shareholders' Equity - At-the-Market Offering Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Aug. 23, 2017 | |
Stockholders Equity [Line Items] | |||
Maximum aggregate offering price under sales agreement | $ 250,000,000 | ||
Direct stock issuance costs | $ 285,000 | $ 285,000 | |
Net proceeds from the sale of Common stock | 5,391,000 | 5,391,000 | |
Available amount in sales agreement | $ 244,560,000 | $ 244,560,000 | |
Common Stock | |||
Stockholders Equity [Line Items] | |||
Sale of common stock, shares | 35,000 | 35,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Feb. 13, 2017 | Feb. 12, 2017 | |
Stockholders Equity [Line Items] | ||||||
Cash dividends paid per share of Common and Class B common stock | $ 1.45 | $ 1.25 | $ 4.15 | $ 3.35 | ||
Shares of non-vested restricted stock granted | 10,000 | 9,000 | 110,109 | 164,899 | ||
Shares withheld as payment for tax withholdings related to share based compensation, market value | $ 3,782 | $ 4,674 | ||||
Stock options exercised, shares | 8,600 | 9,084 | 53,184 | 25,084 | ||
Stock options exercised, proceeds | $ 856 | $ 801 | $ 4,837 | $ 2,111 | ||
Common stock issued under employee stock purchase plan, shares | 2,235 | 2,718 | 6,716 | 6,977 | ||
Common stock issued under employee stock purchase plan, net proceeds | $ 382 | $ 402 | $ 1,142 | $ 1,004 | ||
Stock Options | Common Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Shares withheld to cover cost for stock option exercises related to share based compensation, shares | 376 | 350 | 7,027 | 350 | ||
Shares withheld to cover cost for stock option exercises related to share based compensation, market value | $ 69 | $ 53 | $ 1,269 | $ 53 | ||
Non-Vested Restricted Stock | Common Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Shares withheld as payment for tax withholdings related to share based compensation, shares | 8,830 | 12,354 | 21,754 | 32,454 | ||
Shares withheld as payment for tax withholdings related to share based compensation, market value | $ 1,562 | $ 1,893 | $ 3,775 | $ 4,664 | ||
Carrier Enterprise I | ||||||
Stockholders Equity [Line Items] | ||||||
Controlling interest, ownership percentage | 80.00% | 80.00% | ||||
Carrier Enterprise II | ||||||
Stockholders Equity [Line Items] | ||||||
Controlling interest, ownership percentage | 80.00% | 80.00% | 80.00% | 70.00% | ||
Carrier Enterprise III | ||||||
Stockholders Equity [Line Items] | ||||||
Controlling interest, ownership percentage | 60.00% | 60.00% | ||||
401(k) Plan | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock contribution to 401(k) Plan, shares | 17,318 | 16,389 | ||||
Common stock contribution to 401(k) Plan | $ 2,945 | $ 2,428 |
Schedule of Rollforward of Non-
Schedule of Rollforward of Non-controlling Interest Balance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Non-controlling interest beginning balance | $ 253,024 | |||
Net income attributable to non-controlling interest | $ 17,723 | $ 14,990 | 44,188 | $ 39,668 |
Foreign currency translation adjustment | (2,762) | |||
Distributions to non-controlling interest | (2,178) | |||
Investment in unconsolidated entity | 752 | $ 12,720 | ||
Non-controlling interest ending balance | $ 293,306 | 293,306 | ||
Non-controlling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Gain recorded in accumulated other comprehensive loss | 305 | |||
Gain reclassified from accumulated other comprehensive loss into earnings | $ (23) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Line Items] | ||
Self-insurance reserves | $ 2,562 | $ 2,344 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Carrier and Its Affiliates | Cost of Goods, Total | Supplier Concentration Risk | |||||
Related Party Transaction [Line Items] | |||||
Percentage of purchases from key suppliers | 64.00% | 62.00% | 63.00% | 62.00% | |
Amount payable to Carrier and its affiliates, net of receivables | $ 93,000 | $ 93,000 | $ 75,000 | ||
Carrier and Its Affiliates | Sales Revenue, Product Line [Member] | Customer Concentration Risk [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenues from sales to Carrier and its affiliates | 28,000 | $ 19,000 | 65,000 | $ 51,000 | |
Moss & Associates LLC | Customary Payments for Remodeling of Corporate Headquarters | |||||
Related Party Transaction [Line Items] | |||||
Payment for related party transaction | 0 | 58 | 124 | 702 | |
Amount payable to related party | 0 | 0 | |||
Greenberg Traurig, P.A. | Customary Fees for Legal Services | |||||
Related Party Transaction [Line Items] | |||||
Payment for related party transaction | 0 | $ 71 | 18 | $ 291 | |
Amount payable to related party | $ 113 | $ 113 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event | Oct. 23, 2018$ / shares |
Common Stock | |
Subsequent Event [Line Items] | |
Cash dividend, previous amount | $ 1.45 |
Cash dividend | $ 1.60 |
Date new dividend rate will be effective | 2019-01 |
Class B Common Stock | |
Subsequent Event [Line Items] | |
Cash dividend, previous amount | $ 1.45 |
Cash dividend | $ 1.60 |
Date new dividend rate will be effective | 2019-01 |