Watsco Inc 10-K for FY2022

Watsco Inc 10-K for FY2022

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Watsco Inc (WSO)

10-K 2023-02-24 For: 2022-12-31

Added on April 09, 2026

Watsco Inc filed this 10-K on February 24, 2023, covering the fiscal year ended December 31, 2022 (FY2022).

Fiscal year ended December 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $7.27B; up 15.8% from $6.28B a year earlier
Net income: $601.17M; up 43.5% from net income of $418.95M a year earlier
Diluted EPS: $15.41; up 42.9% from $10.78 a year earlier

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FLORIDA		59-0778222
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.50 par value	WSO	New York Stock Exchange
Class B common stock, $0.50 par value	WSOB	New York Stock Exchange


		Page
PART I

Item 1.	Business		3

Item 1A.	Risk Factors		13

Item 1B.	Unresolved Staff Comments		18

Item 2.	Properties		18

Item 3.	Legal Proceedings		19

Item 4.	Mine Safety Disclosures		19

PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		19

Item 6.	[Reserved]		21

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		21

Item 8.	Financial Statements and Supplementary Data		21

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		21

Item 9A.	Controls and Procedures		21

Item 9B.	Other Information		22

Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		22

PART III

PART IV

Item 15.	Exhibits, Financial Statement Schedules		23

Item 16.	Form 10-K Summary		25

SIGNATURES			27


The markets we serve are as follows:	% of Revenues for the Year Ended December 31, 2022			Number of Locations as of December 31, 2022
United States		91	%		612
Canada		5	%		36
Latin America and the Caribbean		4	%		25

Total		100	%		673

Large accelerated filer

Accelerated filer

Non-accelerated
filer

Smaller reporting company

Emerging growth company


Florida			104
Texas			87
North Carolina			49
California			37
Georgia			34
Louisiana			34
South Carolina			33
Virginia			26
Tennessee			24
Pennsylvania			20
Illinois			17
New Jersey			16
New York			16
Alabama			10
Arizona			9
Massachusetts			9
Mississippi			9
Missouri			9
Connecticut			7
Kansas			7
Maryland			7
Indiana			5
Oklahoma			5
Utah			5
Arkansas			4
Minnesota			3
West Virginia			3
Iowa			2
Kentucky			2
Maine			2
Nebraska			2
Nevada			2
New Hampshire			2
South Dakota			2
Wisconsin			2
Colorado			1
Delaware			1
Michigan			1
New Mexico			1
North Dakota			1
Rhode Island			1
Vermont			1

United States			612
Canada			36
Mexico			12
Puerto Rico			13

Total			673


	12/31/17		12/31/18		12/31/19		12/31/20		12/31/21		12/31/22
Watsco, Inc.		100.00		84.48		114.00		148.79		211.38		173.93
Watsco, Inc. Class B		100.00		82.60		115.56		154.05		208.80		177.20
Russell 2000 Index		100.00		88.99		111.70		134.00		153.85		122.41
S&P MidCap 400 Index		100.00		88.92		112.21		127.54		159.12		138.34
S&P 500 Index		100.00		95.62		125.72		148.85		191.58		156.89
S&P 400 Industrials		100.00		85.11		113.67		132.41		170.07		150.52


Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ⁽¹⁾		Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs ⁽¹⁾
October 1, 2022 to October 31, 2022(1)		311,408	$	271.73		—	$	—
November 1, 2022 to November 30, 2022		—		—		—		—
December 1, 2022 to December 31, 2022		—		—		—		—

Total		311,408	$	271.73		—	$	—


(a)(1)		Financial Statements. Our consolidated financial statements are incorporated by reference from our 2022 Annual Report.

(2)		Financial Statement Schedules. The schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto.

(3)		Exhibits. The following exhibits are submitted with this Annual Report on Form 10-K or, where indicated, incorporated by reference to other filings.


3.1		Composite Articles of Incorporation of Watsco, Inc. (filed as Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and incorporated herein by reference).

3.2		Watsco, Inc. Second Amended and Restated Bylaws effective August 1, 2016 (filed as Exhibit 3.1 to the Current Report on Form 8-K on August 5, 2016 and incorporated herein by reference).

4.1		Specimen form of Class B Common Stock Certificate (filed as Exhibit 4.6 to the Registration Statement on Form S-1 (No. 33-56646) and incorporated herein by reference). (P)

4.2		Specimen form of Common Stock Certificate (filed as Exhibit 4.4 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1994 and incorporated herein by reference). (P)

4.3		Description of Capital Stock (filed as Exhibit 4.3 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and incorporated herein by reference).

10.1(a)		Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.20 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 1996 and incorporated herein by reference). *


10.1(b)		First Amendment dated January 1, 2001 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.13 to the Annual Report on Form 10-K for the year ended December 31, 2000 and incorporated herein by reference). *

10.1(c)		Second Amendment dated January 1, 2002 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.15 to the Annual Report on Form 10-K for the year ended December 31, 2001 and incorporated herein by reference). *

10.1(d)		Third Amendment dated January 1, 2003 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.11 to the Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference). *

10.1(e)		Fourth Amendment dated January 1, 2004 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). *

10.1(f)		Fifth Amendment dated January 1, 2005 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 and incorporated herein by reference). *

10.1(g)		Sixth Amendment dated January 1, 2006 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.16 to the Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference). *

10.1(h)		Seventh Amendment dated January 1, 2007 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.18 to the Annual Report on Form 10-K for the year ended December 31, 2006 and incorporated herein by reference). *

10.1(i)		Eighth Amendment dated January 1, 2008 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by reference). *

10.1(j)		Ninth Amendment dated December 10, 2008 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.19 to the Annual Report on Form 10-K for the year ended December 31, 2008 and incorporated herein by reference). *

10.1(k)		Tenth Amendment dated January 1, 2009 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 and incorporated herein by reference). *

10.1(l)		Eleventh Amendment dated January 1, 2010 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference). *

10.1(m)		Twelfth Amendment dated January 1, 2011 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference). *

10.1(n)		Thirteenth Amendment dated January 1, 2012 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 and incorporated herein by reference). *

10.1(o)		Fourteenth Amendment dated January 1, 2013 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and incorporated herein by reference). *

10.1(p)		Fifteenth Amendment dated January 1, 2014 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 and incorporated herein by reference). *

10.1(q)		Sixteenth Amendment dated January 1, 2015 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and incorporated herein by reference). *



10.1(r)		Seventeenth Amendment dated January 1, 2016 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and incorporated herein by reference). *

10.1(s)		Eighteenth Amendment dated January 1, 2017 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and incorporated herein by reference). *

10.1(t)		Nineteenth Amendment dated January 1, 2018 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and incorporated herein by reference). *

10.1(u)		Twentieth Amendment dated January 1, 2019 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and incorporated herein by reference). *

10.1(v)		Twenty-first Amendment dated January 1, 2020 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and incorporated herein by reference). *

10.1(w)		Twenty-second Amendment dated January 1, 2021 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1(w) to the Annual Report on Form 10-K for the year ended December 31, 2020 and incorporated herein by reference).*

10.1(x)		Twenty-third Amendment dated January 1, 2022 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1(x) to the Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference).*

10.2(a)		Watsco, Inc. 2014 Incentive Compensation Plan (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2014 Annual Meeting of Shareholders and incorporated herein by reference). *

10.2(b)		Watsco, Inc. 2021 Incentive Compensation Plan (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2021 Annual Meeting of Shareholders and incorporated herein by reference). *

10.3		Fourth Amended and Restated 1996 Qualified Employee Stock Purchase Plan dated April 18, 2011 (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2011 Annual Meeting of Shareholders and incorporated herein by reference). *

10.4(a)		Credit Agreement dated as of December 5, 2018, by and among Watsco, Inc., Watsco Canada, Inc. and Carrier Enterprise Mexico, S. de R.L. de C.V., as Borrowers, the Other Lenders From Time to Time Party Thereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A. as Syndication Agent and Branch Banking and Trust Company, U.S. Bank National Association and Wells Fargo Bank, National Association as Co-Documentation Agents (filed as Exhibit 10.1 to the Current Report on Form 8-K on December 11, 2018 and incorporated herein by reference).

10.4(b)		Revolving Credit Increase and Joinder Agreement, dated as of April 10, 2020, by and among Watsco, Inc., Watsco Canada, Inc. and Carrier Enterprise Mexico, S. de R.L. de C.V., as Borrowers, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Regions Bank, and PNC Bank N.A. as a joining Lender (filed as Exhibit 10.1 to the Current Report on Form 8-K on April 16, 2020 and incorporated herein by reference).

10.5		Amended and Restated Sales Agreement dated February 25, 2022, by and between Watsco, Inc., Robert W. Baird & Co. Incorporated, and Goldman Sachs & Co. LLC (filed as Exhibit 10.5(b) to the Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference).*


13		2022 Annual Report to Shareholders (with the exception of the information incorporated by reference into Items 7, 8 and 9 of this Form 10-K, the 2022 Annual Report to Shareholders is provided solely for the information of the SEC and is not deemed “filed” as part of this Form 10-K). #

21.1		Subsidiaries of the Registrant. #

23.1		Consent of Independent Registered Public Accounting Firm – KPMG LLP. #

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

31.2		Certification of Executive Vice President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

31.3		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

32.1		Certification of Chief Executive Officer, Executive Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. +

101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. #

101.SCH		Inline XBRL Taxonomy Extension Schema Document. #

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document. #

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101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document. #

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document. #

104		The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, formatted in Inline XBRL.


	WATSCO, INC.

February 24, 2023	By:	/s/ Albert H. Nahmad
		Albert H. Nahmad, Chief Executive Officer

February 24, 2023	By:	/s/ Ana M. Menendez
		Ana M. Menendez, Chief Financial Officer


SIGNATURE	TITLE	DATE

/s/ ALBERT H. NAHMAD Albert H. Nahmad	Chairman of the Board and Chief Executive Officer (principal executive officer)	February 24, 2023

/s/ ANA M. MENENDEZ Ana M. Menendez	Chief Financial Officer (principal accounting officer and principal financial officer)	February 24, 2023

/s/ CESAR L. ALVAREZ Cesar L. Alvarez	Director	February 24, 2023

/s/ J. MICHAEL CUSTER J. Michael Custer	Director	February 24, 2023

/s/ DENISE DICKINS Denise Dickins	Director	February 24, 2023

/s/ JOHN A. MACDONALD John A. Macdonald	Director	February 24, 2023

/s/ BOB L. MOSS Bob L. Moss	Director	February 24, 2023

/s/ AARON J. NAHMAD Aaron J. Nahmad	Director and President	February 24, 2023

/s/ STEVEN RUBIN Steven Rubin	Director	February 24, 2023

/s/ VALERIE SCHIMEL Valerie Schimel	Director	February 24, 2023


	2022			2021			2020
Revenues		100.0	%		100.0	%		100.0	%
Cost of sales		72.1			73.4			75.8

Gross profit		27.9			26.6			24.2
Selling, general and administrative expenses		16.8			16.9			16.5
Other income		0.3			0.3			0.2

Operating income		11.4			10.0			7.9
Interest expense, net		0.0			0.0			0.0

Income before income taxes		11.4			10.0			7.9
Income taxes		1.7			2.1			1.5

Net income		9.7			7.9			6.4
Less: net income attributable to non-controlling interest		1.4			1.3			1.1

Net income attributable to Watsco, Inc.		8.3	%		6.7	%		5.3	%


	Number of Locations
December 31, 2020		600
Opened		24
Acquired		56
Closed		(9	)

December 31, 2021		671
Opened		11
Closed		(9	)

December 31, 2022		673


	Year Ended December 31,
(in millions)	2022		2021		Change
Revenues	$	7,274.3	$	6,280.2	$	994.1	16	%


	% of Sales						% Change
	2022			2021			2022			2021
HVAC equipment		68	%		69	%		14	%		23	%
Other HVAC products		28	%		28	%		16	%		22	%
Commercial refrigeration products		4	%		3	%		24	%		29	%


	% of Same-Store Sales						% Change
	2022			2021			2022			2021
HVAC equipment		68	%		69	%		13	%		18	%
Other HVAC products		28	%		27	%		15	%		17	%
Commercial refrigeration products		4	%		4	%		24	%		29	%


	Years Ended December 31,
(In thousands, except per share data)	2022		2021		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


	Years Ended December 31,
(In thousands)	2022			2021		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		—			70		880
Reclassification of loss (gain) on cash flow hedging instruments into earnings		—			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


	December 31,
(In thousands, except share and per share data)	2022			2021

ASSETS
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

	$	3,488,214		$	3,085,861

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations	$	90,597		$	84,501
Borrowings under revolving credit agreement (Note 8)		56,400			—
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)		—			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:
Common stock, $0.50 par value, 60,000,000 shares authorized; 38,108,752 and 37,881,247 shares outstanding at December 31, 2022 and 2021, respectively		19,054			18,941
Class B common stock, $0.50 par value, 10,000,000 shares authorized; 5,513,386 and 5,790,636 shares outstanding at December 31, 2022 and 2021, respectively		2,757			2,895
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued		—			—
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

	$	3,488,214		$	3,085,861


(In thousands, except share and per share data)	Common Stock, Class B Common Stock and Preferred Stock Shares			Common Stock, Class B Common Stock and Preferred Stock Amount			Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Non- controlling Interest			Total

Balance at December 31, 2019		38,194,056		$	21,533		$	907,877		$	(39,050	)	$	632,507		$	(87,440	)	$	279,340		$	1,714,767
Net income														269,579						53,593			323,172
Other comprehensive gain											4,183									2,551			6,734
Issuances of restricted shares of common stock		184,265			92			(92	)														—
Forfeitures of restricted shares of common stock		(3,589	)		(2	)		2															—
Common stock contribution to 401(k) plan		25,216			13			4,530															4,543
Stock issuances from exercise of stock options and employee stock purchase plan		144,894			72			21,528															21,600
Retirement of common stock		(23,148	)		(11	)		(4,631	)														(4,642	)
Share-based compensation								21,862															21,862
Cash dividends declared and paid on Common and Class B common stock, $6.925 per share														(265,713	)								(265,713	)
Adjustment to fair value of Common stock issued for N&S Supply of Fishkill, Inc.								(161	)														(161	)
Distributions to non-controlling interest																				(42,401	)		(42,401	)

Balance at December 31, 2020		38,521,694			21,697			950,915			(34,867	)		636,373			(87,440	)		293,083			1,779,761


(In thousands, except share and per share data)	Common Stock, Class B Common Stock and Preferred Stock Shares			Common Stock, Class B Common Stock and Preferred Stock Amount			Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Non- controlling Interest			Total

Balance at December 31, 2021		38,799,632			21,836			1,003,932			(34,176	)		760,796			(87,440	)		332,467			1,997,415
Net income														601,167						102,529			703,696
Other comprehensive loss											(13,534	)								(6,771	)		(20,305	)
Issuances of restricted shares of common stock		143,059			72			(72	)														—
Forfeitures of restricted shares of common stock		(13,000	)		(7	)		7															—
Common stock contribution to 401(k) plan		21,560			11			6,735															6,746
Stock issuances from exercise of stock options and employee stock purchase plan		120,696			60			20,742															20,802
Retirement of common stock		(322,060	)		(161	)		(87,327	)														(87,488	)
Share-based compensation								29,043															29,043
Cash dividends declared and paid on Common and Class B common stock, $8.55 per share														(332,447	)								(332,447	)
Distributions to non-controlling interest																				(69,184	)		(69,184	)

Balance at December 31, 2022		38,749,887		$	21,811		$	973,060		$	(47,710	)	$	1,029,516		$	(87,440	)	$	359,041		$	2,248,278


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.



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


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


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
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


	Shares			Weighted- Average Grant Date Fair Value
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


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



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


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


	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


	Balance Sheet Location	Total		Fair Value Measurements at December 31, 2022 Using
	Balance Sheet Location	Total		Level 1		Level 2		Level 3
Assets:
Equity securities	Other assets	$	678	$	678		—		—
Private equities	Other assets	$	1,000		—		—	$	1,000