Watsco Inc 10-K for FY2021

About this 10-K

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Watsco Inc (WSO)

10-K 2022-02-25 For: 2021-12-31

Added on April 09, 2026

Watsco Inc filed this 10-K on February 25, 2022, covering the fiscal year ended December 31, 2021 (FY2021).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Fiscal year ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $6.28B; up 24.2% from $5.05B a year earlier
Net income: $418.95M; up 55.4% from net income of $269.58M a year earlier
Diluted EPS: $10.78; up 53.8% from $7.01 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		18

Item 4.	Mine Safety Disclosures		18

PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		18

Item 6.	[Reserved]		20

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		20

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		20

Item 8.	Financial Statements and Supplementary Data		20

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		20

Item 9A.	Controls and Procedures		20

Item 9B.	Other Information		21

Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		21

PART III

PART IV

Item 15.	Exhibits, Financial Statement Schedules		21

Item 16.	Form 10-K Summary		24

SIGNATURES			25


The markets we serve are as follows:	% of Revenues for the Year Ended December 31, 2021			Number of Locations as of December 31, 2021
United States		90	%		611
Canada		6	%		36
Latin America and the Caribbean		4	%		24

Total		100	%		671


Florida			103
Texas			88
North Carolina			48
California			37
Louisiana			35
Georgia			33
South Carolina			31
Virginia			26
Tennessee			24
Pennsylvania			21
Illinois			17
New York			16
New Jersey			15
Alabama			10
Massachusetts			10
Arizona			9
Mississippi			9
Missouri			9
Connecticut			8
Kansas			7
Maryland			7
Indiana			5
Oklahoma			5
Utah			5
Arkansas			4
Minnesota			3
West Virginia			3
Colorado			2
Iowa			2
Kentucky			2
Maine			2
Nebraska			2
Nevada			2
South Dakota			2
Wisconsin			2
Delaware			1
Michigan			1
New Hampshire			1
New Mexico			1
North Dakota			1
Rhode Island			1
Vermont			1

United States			611
Canada			36
Mexico			12
Puerto Rico			12

Total			671


	12/31/16		12/31/17		12/31/18		12/31/19		12/31/20		12/31/21
Watsco, Inc.		100.00		118.36		99.99		134.94		176.11		250.19
Watsco, Inc. Class B		100.00		117.11		96.73		135.33		180.41		244.52
Russell 2000 Index		100.00		114.65		102.02		128.06		153.62		176.39
S&P MidCap 400 Index		100.00		116.24		103.36		130.44		148.26		184.96
S&P 500 Index		100.00		121.83		116.49		153.17		181.35		233.41


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. *#

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(a)		Sales Agreement dated August 6, 2021, by and between Watsco, Inc. and Robert W. Baird & Co. Incorporated (filed as Exhibit 1.1 to the Current Report on Form 8-K on August 6, 2021 and incorporated herein by reference).

10.5(b)		Amended and Restated Sales Agreement dated February 25, 2022, by and between Watsco, Inc., Robert W. Baird & Co. Incorporated, and Goldman Sachs & Co. LLC. #

13		2021 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 2021 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. +

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104		The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL.


	WATSCO, INC.

February 25, 2022	By:	/s/ Albert H. Nahmad
		Albert H. Nahmad, Chief Executive Officer

February 25, 2022	By:	/s/ Ana M. Menendez
		Ana M. Menendez, Chief Financial Officer


SIGNATURE	TITLE	DATE

/ S / A LBERT H. N AHMAD Albert H. Nahmad	Chairman of the Board and Chief Executive Officer (principal executive officer)	February 25, 2022

/ S / A NA M. M ENENDEZ Ana M. Menendez	Chief Financial Officer (principal accounting officer and principal financial officer)	February 25, 2022

/ S / C ESAR L. A LVAREZ Cesar L. Alvarez	Director	February 25, 2022

/ S / J. M ICHAEL C USTER J. Michael Custer	Director	February 25, 2022

/ S / D ENISE D ICKINS Denise Dickins	Director	February 25, 2022

/ S / B RIAN E. K EELEY Brian E. Keeley	Director	February 25, 2022

/ S / J OHN A. M ACDONALD John A. Macdonald	Director	February 25, 2022

/ S / B OB L. M OSS Bob L. Moss	Director	February 25, 2022

/ S / A ARON J. N AHMAD Aaron J. Nahmad	Director and President	February 25, 2022

/ S / S TEVEN R UBIN Steven Rubin	Director	February 25, 2022


WATSCO, INC.

By:		/s/ Barry S. Logan
		Barry S. Logan, Executive Vice President


	Amount of Restricted Stock Award
Earnings Per Share (EPS)
For each $.01 increase if growth is below 5%	$	43,500

For each $.01 increase if growth is at or above 5%	$	65,000

B. Increase in Common Stock Price
If the closing price of a share of Common Stock on 12/31/22 does not exceed $312.88	$	0

If the closing price of a share of Common Stock on 12/31/22 exceeds $312.88 but does not equal or exceed $375.45, for each $0.01 increase in per share price of a share of Common Stock above $312.88	$	1,200

If the closing price of a share of Common Stock on 12/31/22 equals or exceeds $375.45, for each $0.01 increase in per share price of a share of Common Stock above $312.88	$	1,800


Effective as of January 1, 2022

COMPENSATION COMMITTEE

By:		/s/ Denise Dickins
		Denise Dickins, Chair


ACKNOWLEDGED AND ACCEPTED

By:		/s/ Albert H. Nahmad
		Albert H. Nahmad


CONFIRMED AND ACCEPTED,
as of the date first above written

ROBERT W. BAIRD & CO.
INCORPORATED

By:		/s/ Sandy Walter


Name:		Sandy Walter
Title:		Managing Director

GOLDMAN SACHS & CO. LLC

By:		/s/ Russell Schmidt


Name	Title	Email Address
Albert H. Nahmad	Chairman & CEO	anahmad@watsco.com

With a Copy to:

Name	Title	Email Address
Barry Logan	Executive Vice President	blogan@watsco.com
Ana Menendez	Chief Financial Officer	amenendez@watsco.com
Shannon Savage	Corporate Controller	ssavage@watsco.com


	2021			2020			2019
Revenues		100.0	%		100.0	%		100.0	%
Cost of sales		73.4			75.8			75.7

Gross profit		26.6			24.2			24.3
Selling, general and administrative expenses		16.9			16.5			16.8
Other income		0.3			0.2			0.2

Operating income		10.0			7.9			7.7
Interest expense, net		0.0			0.0			0.1

Income before income taxes		10.0			7.9			7.6
Income taxes		2.1			1.5			1.4

Net income		7.9			6.4			6.2
Less: net income attributable to non-controlling interest		1.3			1.1			1.0

Net income attributable to Watsco, Inc.		6.7	%		5.3	%		5.2	%


	Number of Locations
December 31, 2019		606
Opened		3
Closed		(9	)

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

December 31, 2021		671


	2021			2020			Change
Cash flows provided by operating activities	$	349.6		$	534.4		$	(184.8	)
Cash flows used in investing activities	$	(148.6	)	$	(16.3	)	$	(132.3	)
Cash flows used in financing activities	$	(228.6	)	$	(448.5	)	$	219.9


	Years Ended December 31,
(In thousands, except per share data)	2021		2020		2019
Revenues	$	6,280,192	$	5,054,928	$	4,770,362
Cost of sales		4,612,647		3,832,107		3,613,406

Gross profit		1,667,545		1,222,821		1,156,956
Selling, general and administrative expenses		1,058,316		833,051		800,328
Other income		19,299		11,264		10,256

Operating income		628,528		401,034		366,884
Interest expense, net		996		1,239		4,032

Income before income taxes		627,532		399,795		362,852
Income taxes		128,797		76,623		67,077

Net income		498,735		323,172		295,775
Less: net income attributable to non-controlling interest		79,790		53,593		49,825

Net income attributable to Watsco, Inc.	$	418,945	$	269,579	$	245,950

Earnings per share for Common and Class B common stock:
Basic	$	10.83	$	7.03	$	6.51

Diluted	$	10.78	$	7.01	$	6.50


	Years Ended December 31,
(In thousands)	2021		2020			2019
Net income	$	498,735	$	323,172		$	295,775
Other comprehensive income, net of tax
Foreign currency translation adjustment		936		6,272			12,298
Unrealized gain (loss) on cash flow hedging instruments		70		880			(1,461	)
Reclassification of loss (gain) on cash flow hedging instruments into earnings		219		(418	)		(352	)

Other comprehensive income		1,225		6,734			10,485
Comprehensive income		499,960		329,906			306,260
Less: comprehensive income attributable to non-controlling interest		80,324		56,144			53,392

Comprehensive income attributable to Watsco, Inc.	$	419,636	$	273,762		$	252,868


	December 31,
(In thousands, except share and per share data)	2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	118,268		$	146,067
Accounts receivable, net		698,456			535,288
Inventories, net		1,115,469			781,299
Other current assets		29,207			21,791

Total current assets		1,961,400			1,484,445

Property and equipment, net		111,019			98,225
Operating lease right-of-use assets		268,528			209,169
Goodwill		434,019			412,486
Intangible assets, net		186,896			169,929
Investment in unconsolidated entity		114,808			97,847
Other assets		9,191			12,246

	$	3,085,861		$	2,484,347

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term obligations	$	84,501		$	71,804
Accounts payable		364,185			251,553
Accrued expenses and other current liabilities		278,036			163,788

Total current liabilities		726,722			487,145

Long-term obligations:
Borrowings under revolving credit agreement		89,000			—
Operating lease liabilities, net of current portion		187,024			139,527
Finance lease liabilities, net of current portion		9,189			4,811

Total long-term obligations		285,213			144,338

Deferred income taxes and other liabilities		76,511			73,103

Commitments and contingencies
Watsco, Inc. shareholders’ equity:
Common stock, $0.50 par value, 60,000,000 shares authorized; 37,881,247 and 37,702,489 shares outstanding at December 31, 2021 and 2020, respectively		18,941			18,851
Class B common stock, $0.50 par value, 10,000,000 shares authorized; 5,790,636 and 5,691,456 shares outstanding at December 31, 2021 and 2020, respectively		2,895			2,846
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued		—			—
Paid-in capital		1,003,932			950,915
Accumulated other comprehensive loss, net of tax		(34,176	)		(34,867	)
Retained earnings		760,796			636,373
Treasury stock, at cost, 4,823,988 shares of Common stock and 48,263 shares of Class B common stock at both December 31, 2021 and 2020, respectively		(87,440	)		(87,440	)

Total Watsco, Inc. shareholders’ equity		1,664,948			1,486,678
Non-controlling interest		332,467			293,083

Total shareholders’ equity		1,997,415			1,779,761

	$	3,085,861		$	2,484,347


(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, 2018		37,461,643		$	21,167		$	832,121		$	(45,968	)	$	627,969		$	(87,440	)	$	253,864		$	1,601,713
Net incom e														245,950						49,825			295,775
Other comprehensive gain											6,918									3,567			10,485
Issuances of non-vested restricted shares of common stock		173,940			87			(87	)														—
Forfeitures of non-vested restricted shares of common stock		(12,837	)		(7	)		7															—
Common stock contribution to 401(k) plan		30,715			15			4,259															4,274
Stock issuances from exercise of stock options and employee stock purchase plan		105,288			53			13,411															13,464
Retirement of common stock		(10,623	)		(5	)		(1,647	)														(1,652	)
Share-based compensation								16,537															16,537
Cash dividends declared and paid on Common and Class B common stock, $6.40 per share														(241,412	)								(241,412	)
Common stock issued for Dunphey & Associates Supply Co., Inc.		50,952			25			6,866															6,891
Investment in unconsolidated entity																				988			988
Decrease in non-controlling interest in Carrier Enterprise II								(25,768	)											(6,632	)		(32,400	)
Common stock issued for Peirce-Phelps, Inc.		372,543			186			58,158															58,344
Investment in Peirce-Phelps, Inc.																				17,000			17,000
Common stock issued for N&S Supply of Fishkill, Inc.		22,435			12			4,020															4,032
Distributions to non-controlling interest																				(39,272	)		(39,272	)

Balance at December 31, 2019		38,194,056			21,533			907,877			(39,050	)		632,507			(87,440	)		279,340			1,714,767


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.


2022	$	89,322
2023		71,985
2024		49,245
2025		31,995
2026		19,662
Thereafter		26,837

Total lease payments		289,046
Less imputed interest		20,094

Total lease liability	$	268,952


Balance at December 31, 2018	$	4,902
Additions based on tax positions related to the current year		1,027
Reductions due to lapse of applicable statute of limitations		(562	)

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


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding at December 31, 2020		585,116		$	174.83
Granted		163,550			276.41
Exercised		(130,178	)		157.50
Forfeited		(15,500	)		208.77
Expired		(500	)		146.09

Options outstanding at December 31, 2021		602,488		$	205.30		3.11	$	64,816

Options exercisable at December 31, 2021		105,665		$	168.77		1.95	$	15,227


	Shares			Weighted- Average Grant Date Fair Value
Non-vested restricted stock outstanding at December 31, 2020		3,335,107		$	75.00
Granted		194,643			254.73
Vested		(13,000	)		138.97
Forfeited		(57,089	)		131.31

Non-vested restricted stock outstanding at December 31, 2021		3,459,661		$	83.94


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


Cash and cash equivalents	$	4,299
Accounts receivable		30,719
Inventories		45,491
Other current assets		135
Property and equipment		2,544
Operating lease ROU assets		19,072
Goodwill		9,884
Intangibles		19,000
Other assets		299
Accounts payable		(11,079	)
Accrued expenses and other current liabilities		(13,038	)
Operating lease liabilities, net of current portion		(14,100	)

Total	$	93,226


Balance at December 31, 2019	$	411,217
Acquired goodwill		410
Foreign currency translation adjustment		859

Balance at December 31, 2020		412,486
Acquired goodwill		21,291
Foreign currency translation adjustment		242

Balance at December 31, 2021	$	434,019