Document and Entity Information
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6 Months Ended | ||
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Jun. 30, 2013
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Jul. 29, 2013
Common Stock
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Jul. 29, 2013
Class B Common Stock
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Document Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2013 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q2 | ||
Trading Symbol | WSO | ||
Entity Registrant Name | WATSCO INC | ||
Entity Central Index Key | 0000105016 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,984,593 | 4,675,949 |
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Condensed Consolidated Unaudited Statements Of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Revenues | $ 1,120,452 | $ 1,011,801 | $ 1,834,085 | $ 1,645,313 |
Cost of sales | 853,772 | 773,326 | 1,391,959 | 1,256,216 |
Gross profit | 266,680 | 238,475 | 442,126 | 389,097 |
Selling, general and administrative expenses | 161,595 | 152,604 | 306,487 | 283,317 |
Operating income | 105,085 | 85,871 | 135,639 | 105,780 |
Interest expense, net | 1,688 | 1,350 | 2,870 | 2,238 |
Income before income taxes | 103,397 | 84,521 | 132,769 | 103,542 |
Income taxes | 30,815 | 23,620 | 39,098 | 29,148 |
Net income | 72,582 | 60,901 | 93,671 | 74,394 |
Less: net income attributable to noncontrolling interest | 21,264 | 21,798 | 28,968 | 26,824 |
Net income attributable to Watsco, Inc. | $ 51,318 | $ 39,103 | $ 64,703 | $ 47,570 |
Earnings per share for Common and Class B common stock: | ||||
Basic | $ 1.48 | $ 1.15 | $ 1.87 | $ 1.42 |
Diluted | $ 1.48 | $ 1.15 | $ 1.87 | $ 1.41 |
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Condensed Consolidated Unaudited Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Net income | $ 72,582 | $ 60,901 | $ 93,671 | $ 74,394 |
Other comprehensive loss, net of tax | ||||
Foreign currency translation adjustment | (8,377) | (8,666) | (13,440) | (8,666) |
Unrealized (loss) gain on available-for-sale securities arising during the period | (11) | (4) | (3) | 12 |
Other comprehensive loss | (8,388) | (8,670) | (13,443) | (8,654) |
Comprehensive income | 64,194 | 52,231 | 80,228 | 65,740 |
Less: comprehensive income attributable to noncontrolling interest | 17,678 | 17,972 | 23,204 | 22,998 |
Comprehensive income attributable to Watsco, Inc. | $ 46,516 | $ 34,259 | $ 57,024 | $ 42,742 |
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
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Jun. 30, 2013
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Dec. 31, 2012
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Preferred stock, par value | $ 0.50 | $ 0.50 |
Common Stock
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Common stock, par value | $ 0.50 | $ 0.50 |
Class B Common Stock
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Common stock, par value | $ 0.50 | $ 0.50 |
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Basis of Presentation
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6 Months Ended | ||
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Jun. 30, 2013
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Basis of Presentation |
Basis of Consolidation Watsco, Inc. and its subsidiaries (collectively, “Watsco,” which may be referred to as we, us or our) was incorporated in 1956 in Florida 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. The accompanying Watsco June 30, 2013 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, although 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 herein. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2012 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco and all of its wholly owned subsidiaries and include 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. The results of operations for the quarter and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013. 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 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 sectors throughout most of the markets is fairly consistent during the year, except for dependence on housing completions and related weather and economic conditions. Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2013 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. New Accounting Standards Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the Financial Accounting Standards Board amended guidance that requires disclosure for amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. The amendments require the presentation of amounts reclassified out of AOCI by the respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety in the reporting period. For amounts that are not required to be reclassified in their entirety to net income, a cross-reference to other disclosures that provide additional detail about those amounts is required. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have an impact on our condensed consolidated unaudited financial statements. |
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Earnings Per Share
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Jun. 30, 2013
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Earnings Per Share |
The following table presents the calculation of basic and diluted earnings per common share for our Common and Class B common stock:
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 and adjusts for the dilutive effects of outstanding stock options using the treasury stock method; therefore, no allocation of earnings to Class B common stock is required. As of June 30, 2013 and 2012, our outstanding Class B common stock was convertible into 2,704,858 and 2,842,055 shares of our Common stock, respectively. |
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Jun. 30, 2013
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Other Comprehensive Loss |
Other comprehensive loss consists of the currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as their functional currency and changes in the unrealized (loss) gain on available-for-sale securities. The tax effects allocated to each component of other comprehensive loss are as follows:
The changes in accumulated other comprehensive loss, net of tax, are as follows:
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Derivative Financial Instruments
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Jun. 30, 2013
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Derivative Financial Instruments |
We routinely use certain derivative instruments to hedge foreign currency exposure. Although these derivatives were not designated as hedges and/or did not qualify for hedge accounting, they were effective economic hedges. The changes in fair value of economic hedges are recognized in earnings. During 2012, we entered into foreign currency forward contracts to offset the earnings impact that foreign currency exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. The changes in fair value of these foreign currency forward contracts were a gain (loss) of $1,507, $(247), $1,528 and $(247) for the quarters and six months ended June 30, 2013 and 2012, respectively, and are included in selling, general and administrative expenses in our condensed consolidated unaudited statements of income. The total notional value of our foreign currency exchange contracts as of June 30, 2013 was $38,750, and such contracts have varying terms expiring through September 2013. See Note 5. |
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Fair Value Measurements
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Fair Value Measurements |
The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis:
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: Available-for-sale securities – the investments are exchange-traded equity securities. Fair values for these investments are based on closing stock prices from active markets and are therefore classified within Level 1 of the fair value hierarchy. The fair value of available-for-sale securities is included in other assets in our condensed consolidated balance sheets. Derivative financial instruments – the derivatives are foreign currency forward contracts. Fair value is based on observable market inputs, such as forward rates, in active markets and therefore the derivatives are classified within Level 2 of the valuation hierarchy. The fair value of the derivative financial instruments is included in our condensed consolidated balance sheets in other current assets and accrued expenses and other current liabilities at June 30, 2013 and December 31, 2012, respectively. There were no transfers in or out of Level 1 and Level 2 during the six months ended June 30, 2013. |
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Acquisitions
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Acquisitions |
Carrier Enterprise I Carrier Enterprise, LLC (“Carrier Enterprise I”) is a joint venture formed on July 1, 2009 with Carrier that operates a network of locations primarily throughout the U.S. Sun Belt. From its inception until July 2, 2012, we owned 60% of the joint venture and Carrier owned 40%. We had an option to purchase an additional 10% ownership interest in Carrier Enterprise I, which became exercisable on July 1, 2012. On July 2, 2012, we exercised this option and acquired an additional 10% ownership interest in Carrier Enterprise I for cash consideration of $51,881. We have a second option to purchase an additional 10% interest in Carrier Enterprise I, which becomes exercisable beginning on July 1, 2014. Carrier Enterprise II In 2011, we formed a second joint venture with Carrier and completed two additional transactions. In April 2011, Carrier contributed 28 of its company-owned locations in eight Northeast U.S. states, and we contributed 14 locations in the Northeast U.S. In July 2011, we purchased Carrier’s distribution operations in Mexico, which included seven locations. Collectively, the Northeast locations and the Mexico operations are referred to as Carrier Enterprise II. We have a 60% controlling interest in Carrier Enterprise II, and Carrier has a 40% noncontrolling interest. Neither we nor Carrier has any options to purchase additional ownership interests in Carrier Enterprise II. Carrier Enterprise III On April 27, 2012, we completed the formation of a joint venture with UTC Canada Corporation (“UTC Canada”), an affiliate of Carrier, to distribute Carrier-manufactured HVAC products in Canada. The newly formed joint venture, Carrier Enterprise Canada, L.P. (“Carrier Enterprise III”), operates 35 locations throughout Canada. We have a 60% controlling interest in Carrier Enterprise III and Carrier has a 40% noncontrolling interest. Total consideration paid by us for our 60% controlling interest in Carrier Enterprise III included cash consideration of $80,489 and the issuance to UTC Canada of 1,250,000 shares of Common stock having a fair value of $93,250. Neither we nor UTC Canada has any options to purchase additional ownership interests in Carrier Enterprise III. The purchase price resulted in the recognition of $216,463 in goodwill and intangibles. The fair value of the identified intangible assets was $151,172 and consisted of $95,515 in trade names and distribution rights and $55,657 in customer relationships to be amortized over a 15 year period. For Canadian income tax purposes, seventy-five percent of the tax basis of the acquired goodwill is amortized at a rate of 7% annually on a declining balance basis.
The purchase price allocation is based upon a purchase price of $173,739, which represents the fair value of our 60% controlling interest in Carrier Enterprise III. The table below presents the allocation of the total consideration to tangible and intangible assets acquired, liabilities assumed and the noncontrolling interest from the acquisition of our 60% controlling interest in Carrier Enterprise III based on the respective fair values as of April 27, 2012:
The fair value of the noncontrolling interest was determined by applying a pro-rata value of the total invested capital adjusted for a discount for lack of control that market participants would consider when estimating the fair value of the noncontrolling interest. The unaudited pro forma financial information, combining our results of operations with the operations of Carrier Enterprise III as if the joint venture had been formed on January 1, 2012, is as follows:
The foregoing unaudited pro forma financial information is presented for informational purposes only. The unaudited pro forma financial information for the periods presented includes adjustments to record income taxes related to our portion of Carrier Enterprise III’s income, amortization related to identified intangible assets with finite lives and interest expense on borrowings incurred to acquire our 60% controlling interest. This unaudited pro forma financial information does not include adjustments to add or remove certain corporate expenses of Carrier Enterprise III, which may or may not be incurred in future periods, or adjustments for depreciation or synergies that may be realized subsequent to the acquisition date. This unaudited pro forma financial information does not necessarily reflect our future results of operations or what the results of operations would have been had we acquired our 60% controlling interest in and operated Carrier Enterprise III as of the beginning of the periods presented. |
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Shareholders' Equity
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Shareholders' Equity |
Common Stock Dividends We paid cash dividends of $0.25, $0.62, $0.50 and $1.24 per share of Common stock and Class B common stock during the quarters and six months ended June 30, 2013 and 2012, respectively. Non-Vested (Restricted) Stock We did not grant any shares of non-vested (restricted) stock during the quarters ended June 30, 2013 and 2012. During the six months ended June 30, 2013 and 2012, we granted 85,543 and 58,301 shares of non-vested (restricted) stock, respectively. Stock Options During the quarters ended June 30, 2013 and 2012, 2,500 and 69,334 stock options, respectively, were exercised for Common stock. During the six months ended June 30, 2013 and 2012, 9,500 and 90,834 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 six months ended June 30, 2013 and 2012, was $39, $1,822, $377 and $2,809, respectively. During the quarter and six months ended June 30, 2012, 19,567 shares of Common stock with an aggregate fair market value of $1,449 were delivered as payment in lieu of cash for stock option exercises and related tax withholdings. We retired these shares upon delivery.
Employee Stock Purchase Plan During the quarters ended June 30, 2013 and 2012, 1,744 and 2,632, shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $140 and $186, respectively. During the six months ended June 30, 2013 and 2012, 3,926 and 5,594 shares of Common stock were issued under our employee stock purchase plan for which we received net proceeds of $299 and $380, respectively. 401(k) Plan During the six months ended June 30, 2013 and 2012, we issued 22,551 and 26,991 shares of Common stock to our profit sharing retirement plan representing the Common stock discretionary matching contribution of $1,689 and $1,772, respectively. Noncontrolling Interest We have a 60% controlling interest in both Carrier Enterprise II and Carrier Enterprise III, and Carrier has a 40% noncontrolling interest in each. Effective July 2, 2012, our controlling interest in Carrier Enterprise I increased to 70% from 60%, following our exercise of the option described in Note 6. The following table reconciles shareholders’ equity attributable to Carrier’s noncontrolling interest:
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Commitments and Contingencies
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Jun. 30, 2013
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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. The estimation process contains uncertainty since management must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. Reserves in the amounts of $5,846 and $4,844 at June 30, 2013 and December 31, 2012, respectively, were established related to such insurance programs and are included in accrued expenses and other current liabilities in our condensed consolidated balance sheets. |
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Related Party Transactions
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Jun. 30, 2013
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Related Party Transactions |
Purchases from Carrier and its affiliates comprised 57%, 60%, 56% and 57% of all purchases made during the quarters and six months ended June 30, 2013 and 2012, respectively. At June 30, 2013 and December 31, 2012, approximately $169,000 and $62,000, 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 six months ended June 30, 2013 and 2012 include $8,693, $10,064, $13,988 and $16,848, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted at arm’s-length in the ordinary course of business.
Carrier Enterprise II entered into Transactional Services Agreements (“TSAs”) with Carrier, pursuant to which Carrier performed certain business processes on its behalf, including processes involving the use of certain information technologies. The services provided by Carrier pursuant to the TSAs terminated on April 30, 2012. The fees related to these TSAs were $223 and $807 for the quarter and six months ended June 30, 2012 and are included in selling, general and administrative expenses in our condensed consolidated unaudited statements of income. At December 31, 2012, $25 related to these TSAs was payable to Carrier and was included in accrued expenses and other current liabilities in our condensed consolidated balance sheet. Amounts outstanding were repaid in 2013 and no further services are required under the TSAs for Carrier Enterprise II. Carrier Enterprise III entered into TSAs with UTC Canada, pursuant to which UTC Canada performs certain business processes on behalf of Carrier Enterprise III, including processes involving the use of certain information technologies, and UTC Canada entered into TSAs with Carrier Enterprise III, pursuant to which Carrier Enterprise III performs certain business processes on behalf of UTC Canada. The services provided pursuant to the TSAs terminate on various dates but may be extended as agreed upon by the parties. The fees payable by Carrier Enterprise III to UTC Canada under one TSA were substantially offset by the fees payable to Carrier Enterprise III by UTC Canada under the other TSA. At December 31, 2012, $29,637 was payable to Carrier and UTC Canada for unpaid distributions declared to the noncontrolling interest. This amount was paid to Carrier and UTC Canada in February 2013. |
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Subsequent Event
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Jun. 30, 2013
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Subsequent Event |
On July 1, 2013, we entered into Amendment No. 2 to our unsecured $500,000 syndicated revolving credit agreement, which extended the maturity date from April 27, 2017 to July 1, 2018, reduced pricing, improved covenant flexibility during seasonal periods of the year and modified certain definitions. Borrowings under the amended credit facility bear interest at either LIBOR-based rates plus a spread, which ranges from 87.5 to 250 basis-points, depending upon our ratio of total debt to EBITDA, or on rates based on the higher of the Prime rate or the Federal Funds Rate, in each case plus a spread which ranges from 0 to 150 basis-points, depending upon our ratio of total debt to EBITDA. We pay a variable commitment fee on the unused portion of the commitment under the amended credit facility, ranging from 12.5 to 35 basis-points. |
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Basis of Presentation (Policies)
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Jun. 30, 2013
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Basis of Consolidation | Basis of Consolidation Watsco, Inc. and its subsidiaries (collectively, “Watsco,” which may be referred to as we, us or our) was incorporated in 1956 in Florida 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. The accompanying Watsco June 30, 2013 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, although 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 herein. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2012 Annual Report on Form 10-K. The condensed consolidated unaudited financial statements contained in this report include the accounts of Watsco and all of its wholly owned subsidiaries and include 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. The results of operations for the quarter and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013. 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 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 sectors throughout most of the markets is fairly consistent during the year, except for dependence on housing completions and related weather and economic conditions. |
Reclassifications | Reclassifications Certain reclassifications of prior year amounts have been made to conform to the 2013 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. |
New Accounting Standards | New Accounting Standards Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the Financial Accounting Standards Board amended guidance that requires disclosure for amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. The amendments require the presentation of amounts reclassified out of AOCI by the respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety in the reporting period. For amounts that are not required to be reclassified in their entirety to net income, a cross-reference to other disclosures that provide additional detail about those amounts is required. This guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have an impact on our condensed consolidated unaudited financial statements. |
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Earnings Per Share (Tables)
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Jun. 30, 2013
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Schedule of Basic and Diluted Earnings Per Common Share | The following table presents the calculation of basic and diluted earnings per common share for our Common and Class B common stock:
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Other Comprehensive Loss (Tables)
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Jun. 30, 2013
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Schedule of Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income | The tax effects allocated to each component of other comprehensive loss are as follows:
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Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, are as follows:
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Fair Value Measurements (Tables)
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Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis | The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis:
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Acquisitions (Tables)
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Schedule of Unaudited Pro Forma Financial Information from Joint Venture | The unaudited pro forma financial information, combining our results of operations with the operations of Carrier Enterprise III as if the joint venture had been formed on January 1, 2012, is as follows:
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Carrier Enterprise III
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Purchase Price Allocation for Joint Venture | The table below presents the allocation of the total consideration to tangible and intangible assets acquired, liabilities assumed and the noncontrolling interest from the acquisition of our 60% controlling interest in Carrier Enterprise III based on the respective fair values as of April 27, 2012:
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Shareholders' Equity (Tables)
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Schedule of Rollforward of Noncontrolling Interest Balance | The following table reconciles shareholders’ equity attributable to Carrier’s noncontrolling interest:
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Basis of Presentation - Additional Information (Detail)
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Jun. 30, 2013
Entity
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Basis of Presentation [Line Items] | |
Number of joint ventures | 3 |
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Participating Securities, Distributed and Undistributed Earnings, After Dilution No definition available.
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Earnings Per Share - Additional Information (Detail) (Class B Common Stock)
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Jun. 30, 2013
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Jun. 30, 2012
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Class B Common Stock
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Earnings Per Share, Convertible Stock Outstanding, Including Two Class Method [Line Items] | ||
Convertible Class B common stock outstanding | 2,704,858 | 2,842,055 |
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Convertible class B common stock outstanding No definition available.
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Schedule of Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustment | $ (8,377) | $ (8,666) | $ (13,440) | $ (8,666) |
Unrealized (loss) gain on available-for-sale securities | (17) | (6) | (3) | 23 |
Income tax (benefit) expense | (6) | (2) | 11 | |
Unrealized (loss) gain on available-for-sale securities, net of tax | (11) | (4) | (3) | 12 |
Other comprehensive loss | $ (8,388) | $ (8,670) | $ (13,443) | $ (8,654) |
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Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2013
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Jun. 30, 2013
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Dec. 31, 2012
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Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance, Foreign currency translation adjustment | $ (1,785) | ||||
Current period other comprehensive loss | (7,676) | (4,840) | |||
Ending balance, Foreign currency translation adjustment | (9,461) | (4,840) | (9,461) | (4,840) | |
Beginning balance, Available-for-sale securities | (317) | (352) | |||
Current period other comprehensive income | (11) | (4) | (3) | 12 | |
Ending balance, Available-for-sale securities | (320) | (340) | (320) | (340) | |
Accumulated other comprehensive loss, net of tax | $ (9,781) | $ (5,180) | $ (9,781) | $ (5,180) | $ (2,102) |
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- Definition
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- Definition
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Derivative Financial Instruments - Additional Information (Detail) (Foreign Exchange Forward, Not Designated as Hedging Instrument, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Foreign Exchange Forward | Not Designated as Hedging Instrument
|
||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Changes in fair value foreign currency forward contracts | $ 1,507 | $ 1,528 | $ (247) | $ (247) |
Notional value of derivative | $ 38,750 | $ 38,750 | ||
Contract expiring month | 2013-09 |
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- Definition
Contracts Expiration Month and Year No definition available.
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Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Assets: | ||
Available-for-sale securities | $ 223 | $ 226 |
Derivative financial instruments | 1,331 | |
Liabilities: | ||
Derivative financial instruments | 197 | |
Fair Value Measurements, Level 1
|
||
Assets: | ||
Available-for-sale securities | 223 | 226 |
Fair Value Measurements, Level 2
|
||
Assets: | ||
Derivative financial instruments | 1,331 | |
Liabilities: | ||
Derivative financial instruments | $ 197 |
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Acquired Finite and Indefinite Lived Intangible Assets No definition available.
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- Definition
Annual Amortization Rate For Acquired Goodwill No definition available.
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- Definition
Business Acquisition, Purchase Price Allocation, Goodwill and Intangible Assets No definition available.
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- Definition
Equity Method Investment Acquisition Date No definition available.
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- Definition
Fair value of shares issued to party of joint venture No definition available.
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Number of Locations No definition available.
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- Definition
Number Of Locations Contributed To Joint Venture By Controlling Interest No definition available.
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- Definition
Number of Locations Contributed To Joint Venture by Noncontrolling Interest No definition available.
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- Definition
Option to Acquire Interests, Percentage No definition available.
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- Definition
Percentage Of Ownership Interests Acquired No definition available.
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- Definition
Percentage Of Tax Basis Of Acquired Goodwill Amortized No definition available.
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- Definition
Shares Issued To Affiliate Of Party In Joint Venture No definition available.
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Purchase Price Allocation (Detail) (Carrier Enterprise III, USD $)
In Thousands, unless otherwise specified |
Apr. 27, 2012
|
---|---|
Carrier Enterprise III
|
|
Business Acquisition [Line Items] | |
Cash | $ 10 |
Accounts receivable | 46,718 |
Inventories | 55,024 |
Other current assets | 481 |
Property and equipment | 2,517 |
Goodwill | 65,291 |
Intangible assets | 151,172 |
Other assets | 978 |
Accounts payable and accrued expenses | (44,208) |
Noncontrolling interest | (104,244) |
Total purchase price | $ 173,739 |
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- Definition
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- Definition
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill No definition available.
|
Unaudited Pro Forma Financial Information from Joint Venture (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2012
|
|
Business Acquisition, Pro Forma Information [Line Items] | ||
Revenues | $ 1,036,245 | $ 1,740,222 |
Net income | 60,428 | 73,601 |
Less: net income attributable to noncontrolling interest | 21,629 | 26,710 |
Net income attributable to Watsco, Inc. | $ 38,799 | $ 46,891 |
Diluted earnings per share for Common and Class B common stock | $ 1.13 | $ 1.36 |
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Business Acquisitions Pro Forma Profit Loss No definition available.
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- Definition
Pro Forma Net Income Loss Attributable To Noncontrolling Interest No definition available.
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Shareholders Equity - Additional Information (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Carrier Enterprise I
|
Jul. 02, 2012
Carrier Enterprise I
|
Jul. 01, 2009
Carrier Enterprise I
|
Jun. 30, 2013
401(K) Plan
|
Jun. 30, 2012
401(K) Plan
|
Jun. 30, 2013
Employee Stock Purchase Plan
|
Jun. 30, 2012
Employee Stock Purchase Plan
|
Jun. 30, 2013
Employee Stock Purchase Plan
|
Jun. 30, 2012
Employee Stock Purchase Plan
|
Jun. 30, 2013
Common Stock
|
Jun. 30, 2012
Common Stock
|
Jun. 30, 2013
Common Stock
|
Jun. 30, 2012
Common Stock
|
|
Stockholders Equity Note [Line Items] | |||||||||||||||||
Cash dividends paid per share of Common and Class B common stock | $ 0.25 | $ 0.62 | $ 0.50 | $ 1.24 | |||||||||||||
Shares of non-vested restricted stock granted | 85,543 | 58,301 | |||||||||||||||
Stock options exercised, shares | 2,500 | 69,334 | 9,500 | 90,834 | |||||||||||||
Stock options exercised, value | $ 39 | $ 1,822 | $ 377 | $ 2,809 | |||||||||||||
Stock delivered as payment to satisfy tax withholdings, shares | 19,567 | 19,567 | |||||||||||||||
Stock delivered as payment to satisfy tax withholdings, market value | 1,449 | 1,449 | |||||||||||||||
Common stock issued under employee stock purchase plan, shares | 1,744 | 2,632 | 3,926 | 5,594 | |||||||||||||
Common stock issued under employee stock purchase plan, net proceeds | 140 | 186 | 299 | 380 | |||||||||||||
Common stock issued to profit sharing retirement plan, shares | 22,551 | 26,991 | |||||||||||||||
Non-cash contribution for 401(k) plan | $ 1,689 | $ 1,772 | |||||||||||||||
Controlling interest, ownership percentage | 60.00% | 60.00% | 60.00% | 70.00% | 60.00% | ||||||||||||
Noncontrolling interest, ownership percentage | 40.00% | 40.00% | 40.00% |
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- Details
|
Schedule of Rollforward of Noncontrolling Interest Balance (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Noncontrolling Interest [Line Items] | ||||
Net income attributable to noncontrolling interest | $ (21,264) | $ (21,798) | $ (28,968) | $ (26,824) |
Noncontrolling Interest
|
||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest beginning balance | 273,826 | |||
Net income attributable to noncontrolling interest | 28,968 | |||
Foreign currency translation adjustment | (5,764) | |||
Distributions to noncontrolling interest | (1,852) | |||
Noncontrolling interest ending balance | $ 295,178 | $ 295,178 |
X | ||||||||||
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Commitments and Contingencies - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Commitments and Contingencies Disclosure [Line Items] | ||
Self-insurance reserves | $ 5,846 | $ 4,844 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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- Details
|
Related Party Transactions - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Carrier and Its Affiliates
|
Dec. 31, 2012
Carrier and Its Affiliates
|
Dec. 31, 2012
Carrier
|
Dec. 31, 2012
Carrier and UTC Canada
|
|
Related Party Transaction [Line Items] | ||||||||
Percentage of total purchases from Carrier and its affiliates | 57.00% | 60.00% | 56.00% | 57.00% | ||||
Amount payable to related parties, net of receivables | $ (169,000) | $ (62,000) | $ (25) | $ (29,637) | ||||
Revenues from sales to Carrier Corporation and its affiliates | 8,693 | 10,064 | 13,988 | 16,848 | ||||
Fees related to Transactional Services Agreements with Carrier Corporation | $ 223 | $ 807 |
X | ||||||||||
- Definition
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- Definition
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- Definition
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- Definition
Percentage of Total Purchases From Related Party No definition available.
|
Subsequent Event - Additional Information (Detail) (Subsequent Event, USD $)
In Thousands, unless otherwise specified |
1 Months Ended |
---|---|
Jul. 01, 2013
|
|
Subsequent Event [Line Items] | |
Revolving credit agreement maximum borrowing capacity | $ 500,000 |
Minimum
|
|
Subsequent Event [Line Items] | |
Commitment fee percentage on unused portion of the commitment | 12.50% |
Maximum
|
|
Subsequent Event [Line Items] | |
Commitment fee percentage on unused portion of the commitment | 35.00% |
Before Extension
|
|
Subsequent Event [Line Items] | |
Revolving credit agreement maturity date | Apr. 27, 2017 |
After Extension
|
|
Subsequent Event [Line Items] | |
Revolving credit agreement maturity date | Jul. 01, 2018 |
Scenario 1 | Minimum
|
|
Subsequent Event [Line Items] | |
Basis spread | 87.50% |
Scenario 1 | Maximum
|
|
Subsequent Event [Line Items] | |
Basis spread | 250.00% |
Scenario 2 | Minimum
|
|
Subsequent Event [Line Items] | |
Basis spread | 0.00% |
Scenario 2 | Maximum
|
|
Subsequent Event [Line Items] | |
Basis spread | 150.00% |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Details
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