AAON AAON Inc

---

---

---

---

---

Basis of Presentation

AAON, Inc. is a Nevada corporation which was incorporated on August 18, 1987. Our operating subsidiaries include AAON, Inc. ("AAON Oklahoma"), an Oklahoma corporation, AAON Coil Products, Inc. ("AAON Coil Products"), a Texas corporation, and BasX, Inc. ("BASX"), an Oregon corporation (collectively, the “Company”). The accompanying unaudited consolidated financial statements of AAON, Inc. and our operating subsidiaries, all of which are wholly-owned, have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”).

Our financial statements consolidate all of our affiliated entities in which we have a controlling financial interest. Because we hold certain rights that give us the power to direct the activities of two variable interest entities ("VIEs") (Note 16) that most significantly impact the VIEs economic performance, combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in those VIEs.

These financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2022 is derived from audited consolidated financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The financial statements reflect all adjustments (all of which are of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for a full year. Certain disclosures have been condensed in or omitted from these consolidated financial statements. The accompanying unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany balances and transactions have been eliminated in consolidation.

 

We are engaged in the engineering, manufacturing, marketing, and sale of premium air conditioning and heating equipment consisting of standard, semi-custom, and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.

Use of Estimates

 

The preparation of 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, inventory valuation, inventory reserves, warranty accrual, medical insurance accrual, income taxes, useful lives of property, plant, and equipment, estimated future use of leased property, share-based compensation, business combinations, revenue percentage of completion and estimated costs to complete. Actual results could differ materially from those estimates.

Inflation and Labor Market

In 2022 and continuing into 2023, we have witnessed increases in our raw material and component prices. Due to our favorable liquidity position, we continue to make strategic purchases of materials when we see opportunities. We continue to manage the increase in the cost of raw materials through price increases for our products. We have also experienced supply chain challenges related to specific manufacturing parts, which we have managed through our strong vendor relationships as well as expanding our list of vendors.

---

Additionally, we continue to experience challenges in a tight labor market, especially the hiring of both skilled and unskilled production labor. We have implemented the following wage increases to remain competitive and to attract and retain employees:

•In March 2022, we awarded annual merit raises for an overall 3.0% increase to wages.

•In October 2022, we implemented a cost of living increase of 3.5% in place for all employees

below the Senior Leadership Team ("SLT") level.

•In March 2023, we awarded annual merit raises for an overall 3.9% increase to wages.

We will continue to implement human resource initiatives to retain and attract labor to further increase production capacity. Beginning in 2023, initiatives included changing our employee paid time off policy, historically awarded in arrears at the beginning of each quarter, to accrue ratably over each pay period. Additionally, we enhanced our benefits for short-term disability, life insurance, paid parental leave, and paid military leave.

Despite efforts to mitigate the impact of inflation, supply chain issues and the tight labor market, future disruptions, while temporary, could negatively impact our consolidated financial position, results of operations and cash flows.

Change in Estimate

During the first quarter of 2022, a review of the Company’s useful lives for certain sheet metal manufacturing equipment at our Longview, Texas location resulted in a change in estimate that increased the useful lives from between ten and twelve years to fifteen years. This determination was based on recent and estimated future production levels as well as management’s knowledge of the equipment and historical and future use of the equipment. The change in estimate was made prospectively and resulted in a decrease to depreciation expense within cost of sales on our consolidated statements of income of $1.8 million during the six months ended June 30, 2022.

WH Series and WV Series Water Source Heat Pump Units

As part of the normal course of business, management continually monitors the profitability of the Company's various product series offerings. During the third quarter of 2022, management made the decision to no longer produce our small packaged geothermal/water-source heat pump units consisting of the WH Series horizontal configuration and WV Series vertical configuration, from one-half to 12 1/2 tons ("WH/WV"). These WH/WV units were produced solely out of the AAON Oklahoma facility. Production of the remaining WH/WV backlog was completed during the second quarter 2023.

Accounting Policies

 

A comprehensive discussion of our critical accounting policies and management estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022.

Fair Value Measurements

The carrying amounts of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of the items. The carrying amount of the Company’s revolving line of credit, and other payables, approximate their fair values either due to their short term nature, the variable rates associated with the debt or based on current rates offered to the Company for debt with similar characteristics.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels:

•Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

•Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means.

---

•Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets, contingent consideration, and goodwill acquired in a business combination.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability.

Definite-Lived Intangible Assets

Our definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations. We amortize our definite-lived intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. 

Amortization is computed using the straight-line method over the following estimated useful lives:

Intellectual property			30 years
Customer relationships			14 years

Goodwill and Indefinite-Lived Intangible Assets

Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill and indefinite-lived intangible assets are not amortized, but instead are evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant.

The changes in the carrying amount of goodwill were as follows:

			Six Months Ended June 30,
			2023						2022
			(in thousands)
Balance, beginning of period			$	81,892					$	85,727
Additions due to acquisitions			—						—
Decreases due to business combination revisions1			—						(3,835)
Balance, end of period			$	81,892					$	81,892
1 Revisions related to the December 2021 acquisition of BASX.

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed or included within the Company's Annual Report on Form 10-K for the year ended December 31, 2022, were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto.

---

 

The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations.

			Three Months Ended June 30, 2023
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	196,065					$	—					$	—					$	196,065
Condensing units			61						11,329						—						11,390
Air handlers			—						12,610						2,600						15,210
Outdoor mechanical rooms			—						61						—						61
Cleanroom systems			—						—						17,086						17,086
Data center cooling solutions			—						1,794						15,877						17,671
Water-source heat pumps			398						3,086						—						3,484
Part sales			15,963						—						243						16,206
Other1			5,727						1,201						(144)						6,784
			$	218,214					$	30,081					$	35,662					$	283,957
			Three Months Ended June 30, 2022
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	138,616					$	—					$	—					$	138,616
Condensing units			—						11,949						—						11,949
Air handlers			—						11,540						2,945						14,485
Outdoor mechanical rooms			—						260						—						260
Cleanroom systems			—						—						8,246						8,246
Data center cooling solutions			—						—						12,837						12,837
Water-source heat pumps			1,876						1,798						—						3,674
Part sales			13,857						—						331						14,188
Other1			3,132						1,207						220						4,559
			$	157,481					$	26,754					$	24,579					$	208,814
1 Other sales include freight, extended warranties and miscellaneous revenue.

---

			Six Months Ended June 30, 2023
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	376,091					$	—					$	—					$	376,091
Condensing units			61						26,607						—						26,668
Air handlers			—						24,831						5,638						30,469
Outdoor mechanical rooms			208						212						—						420
Cleanroom systems			—						—						29,708						29,708
Data center cooling solutions			—						3,240						30,353						33,593
Water-source heat pumps			3,128						6,166						—						9,294
Part sales			29,867						1						491						30,359
Other1			10,861						2,436						11						13,308
			$	420,216					$	63,493					$	66,201					$	549,910
			Six Months Ended June 30, 2022
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	260,322					$	—					$	—					$	260,322
Condensing units			242						20,925						—						21,167
Air handlers			—						20,978						4,284						25,262
Outdoor mechanical rooms			554						370						—						924
Cleanroom systems			—						—						16,285						16,285
Data center cooling solutions			—						—						23,705						23,705
Water-source heat pumps			4,862						4,151						—						9,013
Part sales			24,073						—						331						24,404
Other1			7,295						2,265						943						10,503
			$	297,348					$	48,689					$	45,548					$	391,585
1 Other sales include freight, extended warranties and miscellaneous revenue.

Due to the highly customized nature of many of the Company’s products and each product not having an alternative use to the Company without significant costs to the Company, the Company recognizes revenue over time as progress is made toward satisfying the performance obligations of each contract. The Company has formal cancellation policies and generally does not accept returns on these units. As a result, many of the Company’s products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit.

Contract costs include direct materials, direct labor, installation, freight and delivery, commissions and royalties. Other costs not related to contract performance, such as indirect labor and materials, small tools and supplies, operating expenses, field rework and back charges are charged to expense as incurred. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income, and are estimated and recognized by the Company throughout the life of the contract. The aggregate of costs incurred and income recognized on uncompleted contracts in excess of billings is shown as a contract asset within our consolidated balance sheets, and the aggregate of billings on uncompleted contracts in excess of related costs incurred and income recognized is shown as a contract liability within our consolidated balance sheets.

For all other products that are part sales or standardized units, the Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. As the primary performance obligation in such a contract is

---

delivery of the requested manufactured equipment, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders.

Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates.

Historically, sales of our products were moderately seasonal with the peak period being May-October of each year due to timing of construction projects being directly related to warmer weather. However, in recent years, given the increases in demand of our product and increases in our backlog, sales have become more constant throughout the year.

Product Warranties

A provision is made for the estimated cost of maintaining product warranties to customers at the time the product is sold based upon historical claims experience by product line. The Company records a liability and an expense for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the liability and expense in the current year.

The Company also sells extended warranties on parts for various lengths of time ranging from six months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period.

Representatives and Third Party Products

We are responsible for billings and collections resulting from all sales transactions, including those initiated by our independent manufacturer representatives (“Representatives”). Representatives are national companies that are in the business of providing HVAC units and other related products and services to customers. The end user customer orders a bundled group of products and services from the Representative and expects the Representative to fulfill the order. These additional products and services may include controls purchased from another manufacturer to operate the unit, start-up services, and curbs for supporting the unit (“Third Party Products”). All are associated with the purchase of a HVAC unit but may be provided by the Representative or another third party. Only after the specifications are agreed to by the Representative and the customer, and the decision is made to use an AAON HVAC unit, will we receive notice of the order. We establish the amount we must receive for our HVAC unit (“minimum sales price”), but do not control the total order price that is negotiated by the Representative with the end user customer. The Representatives submit the total order price to us for invoicing and collection. The total order price includes our minimum sales price and an additional amount which may include both the Representatives’ fee and amounts due for additional products and services required by the customer. The Company is considered the principal for the equipment we design and manufacture and records that revenue. The Company has no control over the Third Party Products to the end customer and the Company is under no obligation related to the Third Party Products. Amounts related to Third Party Products are not recognized as revenue but are recorded as a liability and are included in accrued liabilities on the consolidated balance sheets.

The Representatives’ fee and Third Party Products amounts (“Due to Representatives”) are paid only after all amounts associated with the order are collected from the customer. The amount of payments to our Representatives were $13.0 million and $11.4 million for the three months ended June 30, 2023 and 2022, respectively, and $26.3 million and $17.9 million for the six months ended June 30, 2023 and 2022, respectively.

---

The Company has various lease arrangements for certain manufacturing and warehousing facilities, equipment rental, as well as administrative facilities. Currently, all leases are classified as operating leases.

The following table presents the balances by lease type:

						Balance Sheet Classification						June 30, 2023						December 31, 2022
Operating Leases
Right of use assets						Right of use assets						$	7,378					$	7,123
Lease liability, short-term						Accrued liabilities						$	1,607					$	1,254
Lease liability, long-term						Other long-term liabilities						$	5,962					$	5,993

Since 2018, the Company has leased the manufacturing, engineering and office space used by our operations in Parkville, Missouri, which is classified as an operating lease. In October 2022, the Parkville, Missouri lease was amended to expand our manufacturing and office space from 51,000 square feet to 86,000 square feet. The amended lease provides for approximately 31,000 square feet of additional manufacturing and engineering space and approximately 4,000 square feet of additional office space. The amended lease extends the lease term through December 31, 2032.

In November 2022, the Company entered into a lease agreement for land and facilities in Tulsa, Oklahoma which provides an additional 198,000 square feet to support our operations. The lease term will expire October 31, 2025.

On July 28, 2023, the Company entered into a lease agreement with a start date of September 1, 2023, for land and approximately 72,000 square feet of facilities in Redmond, Oregon to support our manufacturing operations. The lease term is approximately five years with additional renewal options. This lease will be classified as an operating lease starting in third quarter of 2023.

Accounts receivable and the related allowance for credit losses are as follows:

 

			June 30, 2023						December 31, 2022
			(in thousands)
Accounts receivable			$	154,417					$	127,635
Less:  Allowance for credit losses			(306)						(477)
Total, net			$	154,111					$	127,158

 

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Allowance for credit losses:			(in thousands)
Balance, beginning of period			$	421					$	837					$	477					$	549
(Recoveries of) provisions for expected credit			(115)						(107)						(171)						181
losses, net of adjustments
Accounts receivable written off, net of recoveries			—						(167)						—						(167)
Balance, end of period			$	306					$	563					$	306					$	563

---

Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) method. We establish an allowance for excess and obsolete inventories based on product line changes, the feasibility of substituting parts and the need for supply and replacement parts.

The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows:

			June 30, 2023						December 31, 2022
			(in thousands)
Raw materials			$	210,937					$	194,159
Work in process			4,087						3,501
Finished goods			5,665						5,806
Total, gross			220,689						203,466
Less:  Allowance for excess and obsolete inventories			(5,281)						(4,527)
Total, net			$	215,408					$	198,939

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Allowance for excess and obsolete inventories:			(in thousands)
Balance, beginning of period			$	4,748					$	2,007					$	4,527					$	1,787
Provision for (recoveries of) excess and			794						(72)						1,458						148
obsolete inventories
Inventories written off			(261)						(64)						(704)						(64)
Balance, end of period			$	5,281					$	1,871					$	5,281					$	1,871

---

Our intangible assets consist of the following:

			June 30, 2023						December 31, 2022
Definite-lived intangible assets			(in thousands)
Intellectual property			$	6,295					$	6,295
Customer relationships			47,547						47,547
Less:  Accumulated amortization			(5,610)						(3,807)
Total, net			48,232						50,035
Indefinite-lived intangible assets
Trademarks			14,571						14,571
Total intangible assets, net			$	62,803					$	64,606

Amortization expense recorded in cost of sales is as follows:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Amortization expense			$	901					$	901					$	1,803					$	1,796

Excluding the impact of any future acquisitions, the Company anticipates amortization expense to be $3.6 million for each of the years ending 2023 through 2027.

---

The Company has product warranties with various terms from one year from the date of first use or 18 months for parts, data center cooling solutions, and cleanroom systems to 25 years for certain heat exchangers. The Company has an obligation to replace parts if conditions under the warranty are met. A provision is made for estimated warranty costs at the time the related products are sold based upon the warranty period, historical trends, new products, and any known identifiable warranty issues.  

Changes in the warranty accrual are as follows:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Warranty accrual:			(in thousands)
Balance, beginning of period			$	16,209					$	13,707					$	15,682					$	13,769
Payments made			(2,435)						(1,679)						(4,316)						(2,898)
Warranty expense			3,126						2,353						5,534						3,510
Balance, end of period			$	16,900					$	14,381					$	16,900					$	14,381

Accrued liabilities were comprised of the following:

			June 30, 2023						December 31, 2022
			(in thousands)
Warranty			$	16,900					$	15,682
Due to representatives			17,282						15,545
Payroll			15,190						11,901
Profit sharing			6,087						5,451
Workers' compensation			399						367
Medical self-insurance			1,536						1,178
Customer prepayments			24,510						3,750
Donations, short-term			390						637
Accrued income taxes			—						12,472
Employee vacation time			9,726						6,329
Lease liability, short-term			1,607						1,254
Property taxes			1,722						—
Extended warranties, short-term			2,589						1,330
Other			3,263						2,734
Total			$	101,201					$	78,630

Other long-term liabilities were comprised of the following:

 

			June 30, 2023						December 31, 2022
			(in thousands)
Lease liability			$	5,962					$	5,993
Extended warranties			4,806						4,539
Donations and other			596						976
Total			$	11,364					$	11,508

---

On May 27, 2022, we amended our $100.0 million Amended and Restated Loan Agreement dated November 24, 2021 (as amended, “Revolver”), to provide for maximum borrowings of $200.0 million. As of June 30, 2023 and December 31, 2022, we had $78.5 million and $71.0 million outstanding under the Revolver, respectively. We have one standby letter of credit totaling $0.3 million as of June 30, 2023. Borrowings available under the Revolver at June 30, 2023 were $121.2 million. The Revolver expires on May 27, 2027. On April 20, 2023, we amended the Revolver to allow for the occurrence of transactions associated with the New Markets Tax Credit executed on April 25, 2023 (Note 16).

Any outstanding loans under the Revolver bear interest at the daily compounded secured overnight financing rate ("SOFR") plus the applicable margin. Applicable margin, ranging from 1.25% - 1.75%, is determined quarterly based on the Company's leverage ratio. The Company is also subject to letter of credit fees, ranging from 1.25% - 1.75%, and a commitment fee, ranging from 0.10% - 0.20%. The applicable fee percentage is determined quarterly based on the Company's leverage ratio. The weighted average interest rate on borrowings outstanding on the Revolver was 6.3% and 6.2% for the three and six months ended June 30, 2023, respectively, as compared to 1.9% and 1.7% for the three and six months ended June 30, 2022, respectively. Fees associated with the unused portion of the committed amount are included in interest expense on our consolidated statements of income for the three and six months ended June 30, 2023 and 2022.

If SOFR cannot be determined pursuant to the definition, as defined by the Revolver agreement, any outstanding affected loans will be deemed to have been converted into alternative base rate ("ABR") loans. ABR loans would bear interest at a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50%, or (c) daily simple SOFR for a one-month tenor in effect on such day plus 1.00%.

The provision (benefit) for income taxes consists of the following:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Current			$	13,037					$	5,277					$	18,472					$	9,086
Deferred			(5,359)						(1,100)						(4,438)						(127)
Income tax provision			$	7,678					$	4,177					$	14,034					$	8,959

The provision for income taxes differs from the amount computed by applying the Federal statutory income tax rate before the provision for income taxes.

The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Federal statutory rate			21.0		%				21.0		%				21.0		%				21.0		%
State income taxes, net of Federal benefit			4.6						6.3						4.4						4.5
Excess tax benefits related to share-based compensation (Note 12)			(3.8)						(1.0)						(6.0)						(1.7)
Return to provision			—						(1.2)						(0.1)						(0.6)
Research and development credits			(1.2)						(1.5)						(1.3)						(1.2)
Change in valuation allowance (Oklahoma Investment Credit)			(5.8)						—						(3.2)						—
Other			(0.4)						(2.8)						(0.3)						(1.1)
Effective tax rate			14.4		%				20.8		%				14.5		%				20.9		%

---

We have historically earned investment tax credits from the state of Oklahoma’s manufacturing property investment program. We use the flow-through method to account for investment tax credits earned on eligible tangible asset expenditures. Under this method, the investment tax credits are recognized as a reduction to our Oklahoma income tax expense in the year they are used. As part of our expansion projects in Oklahoma, we identified a separate, more advantageous Oklahoma credit program (non income tax related) which will cause us to discontinue our accumulation of credits for Oklahoma’s manufacturing property investment program after the 2022 tax year.

The Company had investment tax credit carryforwards with a valuation allowance reserved against them as we did not have sufficient taxable income to utilize the carryforwards, in part because we generated more credit each year than we were able to utilize. Because the Company will not generate additional excess credits after our 2022 tax year, we will be able to use our credit carryforwards against future taxable income and the related valuation allowance was reversed resulting in a one-time benefit of $3.1 million to the income tax provision for the three and six months ended June 30, 2023. As of June 30, 2023, we have investment tax credit carryforwards of approximately $4.9 million. These credits have estimated expirations from the year 2039 through 2043.

The Company's estimated annual 2023 effective tax rate, excluding discrete events, is approximately 24.1%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. income tax examinations for tax years 2019 to present, and to non-U.S. income tax examinations for the tax years 2018 to present. In addition, we are subject to state and local income tax examinations for the tax years 2018 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.

On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards. Under the LTIP, the exercise price of shares granted could not be less than 100% of the fair market value at the date of the grant.

On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan ("2016 Plan") which provides for approximately 8.9 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 2.6 million shares that were approved by the stockholders on May 15, 2018, and an additional 2.5 million shares that were approved by the stockholders on May 12, 2020.

Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee determines the persons to whom awards are to be made, determines the type, size and terms of awards, interprets the 2016 Plan, establishes and revises rules and regulations relating to the 2016 Plan and makes any other determinations that it believes necessary for the administration of the 2016 Plan.

---

Options

The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2023 and 2022 using a Black Scholes-Merton Model:

			Six months ended
			June 30, 2023						June 30, 2022
Directors and SLT1:
Expected (annual) dividend rate			$0.48						$0.38
Expected volatility			37.89%						35.95%
Risk-free interest rate			4.39%						2.17%
Expected life (in years)			4.0						4.0
Employees:
Expected (annual) dividend rate			$0.48						$0.38
Expected volatility			38.52%						37.29%
Risk-free interest rate			4.40%						2.11%
Expected life (in years)			3.0						3.0
1 SLT consists of officers and key members of management.

 

The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date.

 

The following is a summary of stock options vested and exercisable as of June 30, 2023:

 

Range of Exercise Prices												Number of Shares						Weighted Average Remaining Contractual Life (in years)						Weighted Average Exercise Price						Intrinsic Value (in thousands)
$	20.92		-			$	41.37					1,048,962						4.79						$	37.06					$	60,579
$	42.42		-			$	55.30					364,787						6.99						46.34						17,682
$	55.50		-			$	97.89					137,879						7.66						72.62						3,060
						Total						1,551,628						5.56						$	42.40					$	81,321

 

A summary of stock option activity under the plans is as follows:

Stock Options			Shares						Weighted Average Exercise Price
Outstanding at December 31, 2022			3,040,347						$	45.20
Granted			213,164						91.49
Exercised			(532,830)						43.62
Forfeited or Expired			(38,727)						51.88
Outstanding at June 30, 2023			2,681,954						$	49.09
Exercisable at June 30, 2023			1,551,628						$	42.40

 

The total pre-tax compensation cost related to unvested stock options not yet recognized as of June 30, 2023 is $13.1 million and is expected to be recognized over a weighted average period of approximately 1.6 years.

---

The total intrinsic value of options exercised during the six months ended June 30, 2023 and 2022 was $25.3 million and $3.5 million, respectively. The cash received from options exercised during the six months ended June 30, 2023 and 2022 was $23.2 million and $6.4 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying consolidated statements of cash flows.

Restricted Stock

The fair value of restricted stock awards is based on the fair market value of AAON, Inc. common stock on the respective grant dates, reduced for the present value of dividends. At June 30, 2023, unrecognized compensation cost related to unvested restricted stock awards was approximately $6.6 million, which is expected to be recognized over a weighted average period of approximately 1.8 years.

A summary of the unvested restricted stock awards is as follows:

			Shares						Weighted Average Grant Date Fair Value
Unvested at December 31, 2022			144,826						$	50.00
Granted			46,492						89.26
Vested			(60,373)						48.67
Forfeited			(1,112)						56.35
Unvested at June 30, 2023			129,833						$	64.62

PSUs

We have awarded performance restricted stock units ("PSUs") to certain officers and employees under our 2016 Plan. Unlike our restricted stock awards, these PSUs are not considered legally outstanding and do not accrue dividends during the vesting period. These PSUs vest based on the level of achievement with respect to the Company's total shareholder return ("TSR") benchmarked against similar companies included in the capital goods sector of the S&P SmallCap 600 Index. The TSR measurement period is three years. At the end of the measurement period, each award will be converted into common stock at 0% to 200% of the PSUs held, depending on overall TSR as compared to the S&P SmallCap 600 Index benchmark companies.

The total pre-tax compensation cost related to unvested PSUs not yet recognized as of June 30, 2023 is $5.7 million and is expected to be recognized over a weighted average period of approximately 2.0 years.

The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the six months ended June 30, 2023 and 2022 using a Monte Carlo Model:

			Six months ended
			June 30, 2023						June 30, 2022
Expected (annual) dividend rate			$0.48						$0.38
Expected volatility			32.71%						37.60%
Risk-free interest rate			4.66%						2.00%
Expected life (in years)			2.8						2.8

 

The expected term of the PSUs is based on their remaining performance period. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date.

---

A summary of the unvested PSUs is as follows:

			Shares						Weighted Average Grant Date Fair Value
Unvested at December 31, 2022			62,659						$	54.92
Granted			38,759						126.61
Vested			—						—
Forfeited			—						—
Unvested at June 30, 20231			101,418						$	82.32
1Consists of 14,817 PSUs cliff vesting December 31, 2023, 47,842 PSUs cliff vesting December 31, 2024, and 38,759 PSUs cliff vesting December 31, 2025.

Key Employee Awards

As part of the December 2021 acquisition of BASX, the Company granted awards to key employees of BASX ("Key Employee Awards"). Unlike our restricted stock awards under the 2016 Plan, the Key Employee Awards are not considered legally outstanding and do not accrue dividends during the vesting period. The potential future issuance of the Key Employee Awards is contingent upon BASX meeting certain post-closing earn-out milestones during each of the years ending 2021, 2022 and 2023 as defined by the BASX acquisition membership interest purchase agreement ("MIPA Agreement") and continued employment with the Company. At the end of the earn-out period, ending December 31, 2023, each eligible Key Employee Award will vest and be converted into common stock. The fair value of Key Employee Awards is based on the fair market value of AAON common stock on the grant date.

The total pre-tax compensation cost related to unvested Key Employee Awards not yet recognized as of June 30, 2023 is $0.5 million and is expected to be recognized over a weighted average period of approximately 0.5 years.

A summary of the unvested Key Employee Awards is as follows:

			Shares						Weighted Average Grant Date Fair Value
Unvested at December 31, 2022			26,599						$	80.18
Granted			—						—
Vested			—						—
Forfeited			—						—
Unvested at June 30, 2023			26,599						$	80.18

---

Share-Based Compensation

A summary of share-based compensation is as follows:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Grant date fair value of awards during the period:			(in thousands)
Options			$	445					$	650					$	5,118					$	5,499
PSUs			1,666						219						4,907						2,081
Restricted stock			1,244						1,018						4,150						3,155
Total			$	3,355					$	1,887					$	14,175					$	10,735
Share-based compensation expense:
Options			$	2,311					$	2,339					$	4,376					$	4,379
PSUs			716						292						1,083						477
Restricted stock			1,024						843						1,850						1,522
Key employee awards			253						322						514						530
Total			$	4,304					$	3,796					$	7,823					$	6,908
Income tax benefit related to share-based compensation:
Options			$	1,840					$	198					$	5,161					$	491
Restricted stock			199						9						664						228
Total			$	2,039					$	207					$	5,825					$	719

 

Share-based compensation expense is recognized on a straight-line basis over the service period of the related share-based compensation award. Historically, stock options and restricted stock awards, granted to employees, vested at a rate of 20% per year. Restricted stock awards granted to directors historically vested one-third each year or, if granted on or after May 2019, vest over the shorter of directors' remaining elected term or one-third each year. As of March 2021, all new grants of stock options and restricted stock awards, granted to employees, vest at a rate of 33.3% per year. Forfeitures are accounted for as they occur.

Historically, if the employee or director is retirement eligible (as defined by the applicable LTIP or 2016 Plan) or becomes retirement eligible during the service period of the related share-based compensation award, the service period (and compensation expense recognition) is the lesser of 1) the grant date, if retirement eligible on grant date, or 2) the period between grant date and retirement eligible date. All stock options and restricted stock awards granted on or after March 1, 2020 to retirement eligible employees or directors contain a one-year employment requirement (minimum service period) or the entire award is forfeited. Forfeitures are accounted for as they occur.

The PSUs cliff vest on December 31, at the end of the third year from the date of grant. Share-based compensation expense is recognized on a straight-line basis over the service period of PSUs. The PSUs are subject to several service and market conditions, as defined by the PSU agreement, which allows the holder to retain a pro-rata amount of awards as a result of certain termination conditions, retirement, change in common control, or death. Forfeitures are accounted for as they occur.

The Key Employee Awards cliff vest on December 31, 2023. Share-based compensation expense is recognized on a straight-line basis over the service period of the Key Employee Awards when it is probable that the performance conditions will be satisfied. The Key Employee Awards are subject to several service and performance conditions, as defined by the Key Employee Award agreement, which allows the holder to retain an amount of the awards as a result of certain termination conditions or change in common control. Forfeitures are accounted for as they occur.

---

Defined Contribution Plan - 401(k)

We sponsor a defined contribution plan (the “Plan”). Eligible employees may make contributions in accordance with the Plan and IRS guidelines. In addition to the traditional 401(k), eligible employees are given the option of making an after-tax contribution to a Roth 401(k) or a combination of both. The Plan provides for automatic enrollment and for an automatic increase to the deferral percentage at January 1st of each year and each year thereafter. Eligible employees are automatically enrolled in the Plan at a 6% deferral rate and currently contributing employees deferral rates will be increased to 6% unless their current rate is at or above 6% or the employee elects to decline the automatic enrollment or increase. Administrative expenses are paid for by Plan participants. The Company paid no administrative expenses during the six months ended June 30, 2023 and 2022.

The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions.

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Contributions, net of forfeitures, made to the defined contribution plan			$	3,408					$	3,273					$	8,667					$	6,579

Profit Sharing Bonus Plans

We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit from AAON Oklahoma and AAON Coil Products is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees of AAON Oklahoma or AAON Coil Products who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team.

BASX has a separate employee incentive program (EIP) under which 5% of BASX's pre-tax profit, plus certain add backs, is paid ratably to eligible employees based on days-of-pay during the fiscal year. Eligible employees are regular full-time and part-time employees who have worked during the year and are still employed when the EIP payment is made following the end of the fiscal year, excluding members of BASX's senior leadership team and any employee paid commissions or royalties.

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Profit sharing bonus plan and employee incentive plan expense			$	5,952					$	2,146					$	10,818					$	4,815

---

Employee Medical Plan

At AAON Oklahoma and AAON Coil Products, we self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating AAON Oklahoma and AAON Coil Products employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles.

BASX is insured for healthcare coverage through a third party. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company contributes certain amounts for BASX's employees enrolled in a high deductible plan to a qualified health savings account to assist employees with health insurance plan deductibles.

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Medical premium payments			$	4,132					$	2,043					$	6,800					$	3,989
Health saving account contributions			1,198						964						2,258						1,903

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Numerator:			(in thousands, except share and per share data)
Net income			$	45,682					$	15,946					$	82,496					$	34,005
Denominator:
Basic weighted average shares			54,293,127						53,095,286						54,175,682						52,992,439
Effect of dilutive shares related to stock based compensation1			1,353,260						566,590						1,334,800						747,998
Effect of dilutive shares related to contingent consideration2			—						—						141,850						204,179
Diluted weighted average shares			55,646,387						53,661,876						55,652,332						53,944,616
Earnings per share:
Basic			$	0.84					$	0.30					$	1.52					$	0.64
Dilutive			$	0.82					$	0.30					$	1.48					$	0.63
Anti-dilutive shares:
Shares			231,579						879,554						175,936						658,595
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)

---

Stock Repurchases

The Board has authorized one active stock repurchase program for the Company. The Company may purchase shares on the open market from time to time. The Board must authorize the timing and amount of these purchases and all repurchases are in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market.

Our open market repurchase programs are as follows:

Effective Date

Authorized Repurchase $

Expiration Date

March 13, 2020

$20 million

November 9, 2022

November 3, 2022

$50 million

** 1

1 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board.

The Company repurchases shares of AAON, Inc. stock from employees for payment of statutory tax withholdings on stock transactions. All other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices.

Lastly, the Company also had a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan were entitled to have shares in AAON, Inc. stock in their accounts sold to the Company. The 401(k) Plan was amended in June 2022 to discontinue this program. No additional shares have been purchased by the Company under this arrangement since June 2022.

Our repurchase activity is as follows:

						Six Months Ended
						June 30, 2023																		June 30, 2022
						(in thousands, except share and per share data)
Program						Shares						Total $						$ per share						Shares						Total $						$ per share
Open market						—						$	—					$	—					—						$	—					$	—
401(k)						—						—						—						103,936						5,913						56.89
Employees						13,083						1,162						88.82						16,183						953						58.89
Total						13,083						$	1,162					$	88.82					120,119						$	6,866					$	57.16

Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows:

						Inception to												June 30, 2023
						(in thousands, except share and per share data)
Program						Shares						Total $									$ per share
Open market						4,327,367						$	81,616								$	18.86
401(k)						8,308,368						171,789									20.68
Directors and employees						2,058,038						24,522									11.92
Total						14,693,773						$	277,927								$	18.91

Cash Dividends

At the discretion of the Board, we pay cash dividends. Board approval is required to determine the date of declaration and amount for each cash dividend payment.

---

Our recent cash dividends are as follows:

Declaration Date1

Record Date

Payment Date

Dividend per Share

Annualized Dividend per Share

May 18, 2022

June 3, 2022

July 1, 2022

$0.19

$0.38

November 8, 2022

November 28, 2022

December 16, 2022

$0.24

$0.48

March 1, 2023

March 13, 2023

March 31, 2023

$0.12

$0.48

May 18, 2023

June 9, 2023

June 30, 2023

$0.12

$0.48

1 Effective with the cash dividend declared on March 1, 2023 (paid on March 31, 2023), the Company moved from semi-annual cash dividends to quarterly cash dividends.

Stock Split

On July 7, 2023, the Board of Directors declared a three-for-two stock split of the Company's common stock to be paid in the form of a stock dividend. Stockholders of record at the close of business on July 28, 2023 will receive one additional share for every two shares they hold as of that date on August 16, 2023 (ex-dividend date August 17, 2023).

Pro Forma Results of Stock Split

The retroactive effect of the stock split, which will occur in the third quarter of 2023, will result in an insignificant (less than $0.1 million) reclass between common stock and retained earnings within stockholders' equity on the consolidated balance sheet. The following table sets forth the pro forma computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:

			(unaudited)
			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Numerator:			(in thousands, except share and per share data)
Net income			$	45,682					$	15,946					$	82,496					$	34,005
Denominator:
Basic weighted average shares			81,439,691						79,642,930						81,263,523						79,488,659
Effect of dilutive shares related to stock based compensation1			2,029,890						849,885						2,002,199						1,121,997
Effect of dilutive shares related to contingent consideration2			—						—						212,776						306,269
Diluted weighted average shares			83,469,581						80,492,815						83,478,498						80,916,925
Earnings per share:
Basic			$	0.56					$	0.20					$	1.02					$	0.43
Dilutive			$	0.55					$	0.20					$	0.99					$	0.42
Anti-dilutive shares:
Shares			347,368						1,319,331						263,905						987,893
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)

The unaudited pro forma financial information was prepared in accordance with GAAP and is not necessarily indicative of the results of operations that would have occurred if the stock split had been effective before the date indicated above, nor is it indicative of the future operating results of the Company.

Contingent Shares Issued in BASX Acquisition

In December 2021, we closed on the acquisition of BASX. Under the MIPA Agreement, we committed to $78.0 million in the aggregate of contingent consideration to the former owners of BASX, which is payable in approximately 1.04 million shares of the Company's common stock, par value $0.004 per share. The shares do not accrue dividends.

---

2019 New Markets Tax Credit

On October 24, 2019, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2019 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2019 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2019 Project”). In connection with the 2019 NMTC transaction, the Company received a $23.0 million NMTC allocation for the Project and secured low interest financing and the potential for future debt forgiveness related to the 2019 Project.

Upon closing of the 2019 NMTC transaction, the Company provided an aggregate of approximately $15.9 million to the 2019 Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $15.9 million in proceeds plus capital contributed from the 2019 Investor was used to make an aggregate $22.5 million loan to a subsidiary of the Company. This financing arrangement is secured by equipment at the Company's Longview, Texas facilities and a guarantee from the Company, including an unconditional guarantee of the NMTCs.

This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2019 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2019 Investor's interest of $6.5 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.3 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction.

2023 New Markets Tax Credit

On April 25, 2023, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2023 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2023 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2023 Project”). In connection with the 2023 NMTC transaction, the Company received a $23.0 million NMTC allocation for the 2023 Project and secured low interest financing and the potential for future debt forgiveness related to the expansion of its Longview, Texas facilities.

Upon closing of the 2023 NMTC transaction, the Company provided an aggregate of approximately $16.7 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $16.7 million in proceeds plus capital contributed from the 2023 Investor was used to make an aggregate $23.8 million loan to a subsidiary of the Company. This financing arrangement is secured by a guarantee from the Company, including an unconditional guarantee of the NMTCs. The net proceeds from the closing of the 2023 NMTC is included in restricted cash on our consolidated balance sheets required to be used for the 2023 Project.

This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2023 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2023 Investor's interest of $5.7 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.4 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction.

The 2019 Investor and 2023 Investor are each subject to 100 percent recapture of the 2019 and 2023 NMTC, respectively, it receives for a period of seven years, as provided in the Internal Revenue Code and applicable U.S. Treasury regulations in the event that the financing facility of the Borrower under the transaction (AAON Coil Products, Inc.) becomes ineligible for NMTC treatment per the Internal Revenue Code requirements. The Company is required to be in compliance with various regulations and contractual provisions that apply to the 2019 NMTC arrangements and 2023 NMTC arrangements, respectively.

---

 

Havtech Litigation

On January 24, 2022, one of the Company’s former independent sales representative firms, Havtech, LLC (and its affiliate, Havtech Parts Division, LLC, collectively “Plaintiffs”), filed a complaint (the “Complaint”) in the Circuit Court for Howard County, Maryland (Havtech, LLC, et al., v. AAON, Inc., et al.). The Complaint challenged the Company’s termination of its business relationship with Plaintiffs. The Company removed the action to the United States District Court for the District of Maryland (Northern Division) and moved to dismiss the Complaint. Plaintiffs’ First Amended Complaint (“First Amended Complaint”) was entered by the court on July 28, 2022. The First Amended Complaint asserts that the Company improperly terminated Plaintiffs and seeks damages alleged to be no less than $48.6 million, plus fees and costs. The Company filed its Answer to First Amended Complaint on January 31, 2023. The Company believes that Plaintiffs’ claims are without merit and intends to vigorously defend itself.

Other Matters

The Company is involved from time to time in claims and lawsuits incidental to our business arising from various matters, including alleged violations of contract, product liability, warranty, environmental, regulatory, personal injury, intellectual property, employment, tax and other laws. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We do not believe these matters will have a material adverse effect on our business, financial position, results of operations or cash flows.

We are occasionally party to short-term and long-term, cancellable and occasionally non-cancellable, contracts with major suppliers for the purchase of raw material and component parts. We expect to receive delivery of raw material and component parts for use in our manufacturing operations. These contracts are not accounted for as derivative instruments because they meet the normal purchase and normal sales exemption. We had no material contractual purchase obligations as of June 30, 2023, except as noted below.

On April 27, 2022, the Company entered into a purchase and sale agreement with a third-party manufacturer to purchase certain assets to design and manufacture fan wheels for the purchase price of $6.5 million. As of June 30, 2023, we have paid approximately $3.5 million related to this agreement, which is included in other long-term assets and property, plant and equipment, with the remaining $3.0 million included in accounts payable and other long-term assets on our consolidated balance sheets. The final payment is expected to be made in 2023.

---

The following is a summary of transactions and balances with related parties:

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
			(in thousands)
Sales to affiliates			$	2,619					$	2,327					$	3,764					$	3,079
Payments to affiliates			390						639						782						1,003
															June 30, 2023						December 31, 2022
															(in thousands)
Due from affiliates															$	559					$	432
Due to affiliates															319						—

The nature of our related party transactions is as follows:

•The Company sells units to an entity owned by a member of the CEO/President's immediate family. This entity is also one of the Company’s Representatives and as such, the Company makes payments to the entity for third party products.

•The Company purchases some supplies from entities controlled by two of the Company’s board members and a member of the Company's executive management team.

•The Company periodically makes part sales and makes payments to a board member related to a consulting agreement.

•The Company periodically rents space partially owned by the CEO/President for various Company meetings.

The Company has determined that it has three reportable segments for financial reporting purposes. Management evaluates the performance of its business segments primarily on gross profit. The Company's chief operating decision maker ("CODM"), our CEO, allocates resources and assesses the performance of each operating segment using information about the operating segment's net sales and income from operations. The CODM does not evaluate operating segments using asset or liability information.

AAON Oklahoma: AAON Oklahoma designs, manufactures, sells and services standard, semi-custom and custom heating, ventilation and air conditioning ("HVAC") systems, designs and produces controls solutions for all of our HVAC units and sells retail parts to customers through our two retail part stores in Tulsa, Oklahoma as well as online. Through our Norman Asbjornson Innovation Center ("NAIC") research and development laboratory facility in Tulsa, Oklahoma, the Company is able to test units under various environmental conditions. AAON Oklahoma includes the operations of our Tulsa, Oklahoma and Parkville, Missouri facilities, our NAIC research and development laboratory facility and two retail parts locations.

AAON Coil Products: AAON Coil Products designs and manufactures a selection of our standard, semi-custom and custom HVAC systems. AAON Coil Products also designs and manufactures various heating and cooling coils to be used in HVAC systems, mostly for the benefit of AAON Oklahoma and AAON Coil Products. AAON Coil Products consists of operations at our Longview, Texas facilities.

BASX: BASX provides product development design and manufacturing of custom engineered air handling systems including high efficiency data center cooling solutions, cleanroom HVAC systems, commercial/industrial HVAC systems and modular solutions. Additionally, BASX designs and manufactures cleanroom environmental control systems to support hospital surgical suites, pharmaceutical process facilities, semiconductor and electronics manufacturing, laboratory and isolation modular cleanrooms for facility flexibility. BASX consists of operations at our Redmond, Oregon facility.

---

The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The Gross Profit amounts shown below are presented after elimination entries.

			Three Months Ended												Six Months Ended
			June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Net Sales															(in thousands)
AAON Oklahoma
External sales			$	218,214					$	157,481					$	420,216					$	297,348
Inter-segment sales			1,205						770						2,699						1,159
AAON Coil Products
External sales			30,081						26,754						63,493						48,689
Inter-segment sales			9,499						8,093						16,816						16,010
BASX
External sales			35,662						24,579						66,201						45,548
Inter-segment sales			1,130						—						1,500						—
Eliminations			(11,834)						(8,863)						(21,015)						(17,169)
Net sales			$	283,957					$	208,814					$	549,910					$	391,585
Gross Profit
AAON Oklahoma			$	75,379					$	31,737					$	137,229					$	65,573
AAON Coil Products			7,483						8,474						14,641						15,780
BASX			11,156						7,165						19,302						12,087
Gross profit			$	94,018					$	47,376					$	171,172					$	93,440

			June 30, 2023						December 31, 2022
Long-lived assets			(in thousands)
AAON Oklahoma			$	244,762					$	213,731
AAON Coil Products			75,422						68,013
BASX			40,045						35,578
Total long-lived assets			$	360,229					$	317,322
Intangible assets and goodwill
AAON Oklahoma			$	3,229					$	3,229
AAON Coil Products			—						—
BASX			141,466						143,269
Total intangible assets and goodwill			$	144,695					$	146,498

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

The following table describes contracts, instructions or written plans for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). There were no non-Rule 10b5-1 trading arrangements entered into during the quarter ended June 30, 2023.

Name and Title of Director or Officer

Date of Adoption of Arrangement

Duration of the Arrangement

Aggregate Number of Securities to be Purchased or Sold Pursuant to the Arrangement

Stephen E. Wakefield

November 23, 2022

Terminated May 17, 2023

95,788

Vice President and Chief Operating Officer

v3.23.2

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	0-18953
Entity Registrant Name	AAON, INC.
Entity Central Index Key	0000824142
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0448736
Entity Address, Address Line One	2425 South Yukon Ave.,
Entity Address, City or Town	Tulsa,
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74107
City Area Code	918
Local Phone Number	583-2266
Title of 12(b) Security	Common Stock, $.004 par value per share
Trading Symbol	AAON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		54,406,322

v3.23.2

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 5,237	$ 5,451
Restricted Cash	22,428	498
Accounts receivable, net of allowance for credit losses of $306 and $477, respectively	154,111	127,158
Income tax receivable	2,699	0
Inventories, net	215,408	198,939
Contract assets	19,862	15,151
Prepaid expenses and other	4,466	1,919
Total current assets	424,211	349,116
Property, plant and equipment:
Land	15,291	8,537
Buildings	187,237	169,156
Machinery and equipment	370,414	342,045
Furniture and fixtures	38,344	30,033
Total property, plant and equipment	611,286	549,771
Less: Accumulated depreciation	263,890	245,026
Property, plant and equipment, net	347,396	304,745
Intangible assets, net	62,803	64,606
Goodwill	81,892	81,892
Right of use assets	7,378	7,123
Note receivable	6,371	6,421
Total assets	930,051	813,903
Current liabilities:
Accounts payable	32,210	45,513
Accrued liabilities	101,201	78,630
Contract liabilities	20,262	21,424
Total current liabilities	153,673	145,567
Revolving credit facility, long-term	78,536	71,004
Deferred tax liabilities	14,223	18,661
Other long-term liabilities	11,364	11,508
New market tax credit obligation1	12,144	6,449	[1]
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued	0	0
Common stock, $.004 par value, 100,000,000 shares authorized, 54,379,324 and 53,425,184 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	218	214
Additional paid-in capital	128,636	98,735
Retained earnings	531,257	461,765
Total stockholders' equity	660,111	560,714
Total liabilities and stockholders' equity	$ 930,051	$ 813,903
[1] 1 Held by variable interest entities (Note 16)

v3.23.2

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Stockholders' equity:
Allowance for doubtful accounts	$ 306	$ 477
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.004	$ 0.004
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	54,379,324	53,425,184
Common stock, shares outstanding (in shares)	54,379,324	53,425,184

v3.23.2

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 283,957	$ 208,814	$ 549,910	$ 391,585
Cost of sales	189,939	161,438	378,738	298,145
Gross profit	94,018	47,376	171,172	93,440
Selling, general and administrative expenses	39,272	26,933	72,214	49,989
Loss (gain) on disposal of assets	6	(10)	12	(12)
Income from operations	54,740	20,453	98,946	43,463
Interest expense, net	(1,543)	(550)	(2,693)	(740)
Other income, net	163	220	277	241
Income before taxes	53,360	20,123	96,530	42,964
Income tax provision	7,678	4,177	14,034	8,959
Net income	$ 45,682	$ 15,946	$ 82,496	$ 34,005
Earnings per share:
Basic (in dollars per share)	$ 0.84	$ 0.30	$ 1.52	$ 0.64
Diluted (in dollars per share)	$ 0.82	$ 0.30	$ 1.48	$ 0.63
Weighted average shares outstanding:
Basic (in shares)	54,293,127	53,095,286	54,175,682	52,992,439
Diluted (in shares)	55,646,387	53,661,876	55,652,332	53,944,616

v3.23.2

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings
Balance (in shares) at Dec. 31, 2021		52,528
Balance at Dec. 31, 2021	$ 466,170	$ 210	$ 81,654	$ 384,306
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,005			34,005
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		719
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	6,385	$ 3	6,382
Share-based compensation	6,908		6,908
Stock repurchased and retired (in shares)		(120)
Stock repurchased and retired	(6,866)	$ 0	(6,866)	0
Contingent consideration	(6,000)
Dividends	(10,096)			(10,096)
Balance (in shares) at Jun. 30, 2022		53,127
Balance at Jun. 30, 2022	490,506	$ 213	82,078	408,215
Balance (in shares) at Mar. 31, 2022		53,065
Balance at Mar. 31, 2022	480,156	$ 212	77,574	402,370
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,946			15,946
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		114
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	3,493	$ 1	3,492
Share-based compensation	3,796		3,796
Stock repurchased and retired (in shares)		(52)
Stock repurchased and retired	(2,784)	$ 0	(2,784)
Dividends	(10,101)			(10,101)
Balance (in shares) at Jun. 30, 2022		53,127
Balance at Jun. 30, 2022	490,506	$ 213	82,078	408,215
Balance (in shares) at Dec. 31, 2022		53,425
Balance at Dec. 31, 2022	560,714	$ 214	98,735	461,765
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	82,496			82,496
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		967
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	23,244	$ 4	23,240
Share-based compensation	7,823		7,823
Stock repurchased and retired (in shares)		(13)
Stock repurchased and retired	(1,162)	$ 0	(1,162)
Dividends	(13,004)			(13,004)
Balance (in shares) at Jun. 30, 2023		54,379
Balance at Jun. 30, 2023	660,111	$ 218	128,636	531,257
Balance (in shares) at Mar. 31, 2023		54,202
Balance at Mar. 31, 2023	609,414	$ 217	117,077	492,120
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	45,682			45,682
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		178
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	7,388	$ 1	7,387
Share-based compensation	4,304		4,304
Stock repurchased and retired (in shares)		(1)
Stock repurchased and retired	(132)		(132)	0
Dividends	(6,545)			(6,545)
Balance (in shares) at Jun. 30, 2023		54,379
Balance at Jun. 30, 2023	$ 660,111	$ 218	$ 128,636	$ 531,257

v3.23.2

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities
Net income	$ 82,496	$ 34,005
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,236	16,300
Amortization of debt issuance costs	32	21
Amortization of right of use assets	67	143
(Recoveries of) provision for credit losses on accounts receivable, net of adjustments	(171)	181
Provision for excess and obsolete inventories, net of write-offs	1,458	148
Share-based compensation	7,823	6,908
Loss (gain) on disposal of assets	12	(12)
Foreign currency transaction (gain) loss	(13)	9
Interest income on note receivable	(10)	(11)
Deferred	(4,438)	(127)
Changes in assets and liabilities:
Accounts receivable	(26,782)	(53,736)
Income taxes	(15,171)	(1,895)
Inventories	(17,927)	(33,879)
Contract assets	(4,711)	(2,820)
Prepaid expenses and other	(2,502)	(3,066)
Accounts payable	(14,874)	6,490
Contract liabilities	(1,162)	22,217
Extended warranties	1,526	421
Accrued liabilities and other long-term liabilities	33,051	7,123
Net cash provided by (used in) operating activities	59,940	(1,580)
Investing Activities
Capital expenditures	(60,629)	(27,227)
Cash paid for building (Note 18)	0	(22,000)
Cash paid in business combination, net of cash acquired	0	(249)
Proceeds from sale of property, plant and equipment	104	12
Principal payments from note receivable	28	27
Net cash used in investing activities	(60,497)	(49,437)
Financing Activities
Proceeds from financing obligation, net of issuance costs	6,061	0
Payment related to financing costs	(398)	0
Borrowings under revolving credit facility	279,961	94,900
Payments under revolving credit facility	(272,429)	(28,651)
Principal payments on financing lease	0	(28)
Stock options exercised	23,244	6,385
Repurchase of stock	0	(5,912)
Employee taxes paid by withholding shares	(1,162)	(954)
Cash dividends paid to stockholders	13,004	0
Net cash provided by financing activities	22,273	65,740
Net increase in cash, cash equivalents and restricted cash	21,716	14,723
Cash, cash equivalents and restricted cash, beginning of period	5,949	3,487
Cash, cash equivalents and restricted cash, end of period	$ 27,665	$ 18,210

v3.23.2

General	6 Months Ended
	Jun. 30, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
General	General Basis of Presentation AAON, Inc. is a Nevada corporation which was incorporated on August 18, 1987. Our operating subsidiaries include AAON, Inc. ("AAON Oklahoma"), an Oklahoma corporation, AAON Coil Products, Inc. ("AAON Coil Products"), a Texas corporation, and BasX, Inc. ("BASX"), an Oregon corporation (collectively, the “Company”). The accompanying unaudited consolidated financial statements of AAON, Inc. and our operating subsidiaries, all of which are wholly-owned, have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). Our financial statements consolidate all of our affiliated entities in which we have a controlling financial interest. Because we hold certain rights that give us the power to direct the activities of two variable interest entities ("VIEs") (Note 16) that most significantly impact the VIEs economic performance, combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in those VIEs. These financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2022 is derived from audited consolidated financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The financial statements reflect all adjustments (all of which are of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for a full year. Certain disclosures have been condensed in or omitted from these consolidated financial statements. The accompanying unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. All intercompany balances and transactions have been eliminated in consolidation.   We are engaged in the engineering, manufacturing, marketing, and sale of premium air conditioning and heating equipment consisting of standard, semi-custom, and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. Use of Estimates   The preparation of 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, inventory valuation, inventory reserves, warranty accrual, medical insurance accrual, income taxes, useful lives of property, plant, and equipment, estimated future use of leased property, share-based compensation, business combinations, revenue percentage of completion and estimated costs to complete. Actual results could differ materially from those estimates. Inflation and Labor Market In 2022 and continuing into 2023, we have witnessed increases in our raw material and component prices. Due to our favorable liquidity position, we continue to make strategic purchases of materials when we see opportunities. We continue to manage the increase in the cost of raw materials through price increases for our products. We have also experienced supply chain challenges related to specific manufacturing parts, which we have managed through our strong vendor relationships as well as expanding our list of vendors. Additionally, we continue to experience challenges in a tight labor market, especially the hiring of both skilled and unskilled production labor. We have implemented the following wage increases to remain competitive and to attract and retain employees: •In March 2022, we awarded annual merit raises for an overall 3.0% increase to wages. •In October 2022, we implemented a cost of living increase of 3.5% in place for all employees below the Senior Leadership Team ("SLT") level. •In March 2023, we awarded annual merit raises for an overall 3.9% increase to wages. We will continue to implement human resource initiatives to retain and attract labor to further increase production capacity. Beginning in 2023, initiatives included changing our employee paid time off policy, historically awarded in arrears at the beginning of each quarter, to accrue ratably over each pay period. Additionally, we enhanced our benefits for short-term disability, life insurance, paid parental leave, and paid military leave. Despite efforts to mitigate the impact of inflation, supply chain issues and the tight labor market, future disruptions, while temporary, could negatively impact our consolidated financial position, results of operations and cash flows. Change in Estimate During the first quarter of 2022, a review of the Company’s useful lives for certain sheet metal manufacturing equipment at our Longview, Texas location resulted in a change in estimate that increased the useful lives from between ten and twelve years to fifteen years. This determination was based on recent and estimated future production levels as well as management’s knowledge of the equipment and historical and future use of the equipment. The change in estimate was made prospectively and resulted in a decrease to depreciation expense within cost of sales on our consolidated statements of income of $1.8 million during the six months ended June 30, 2022. WH Series and WV Series Water Source Heat Pump Units As part of the normal course of business, management continually monitors the profitability of the Company's various product series offerings. During the third quarter of 2022, management made the decision to no longer produce our small packaged geothermal/water-source heat pump units consisting of the WH Series horizontal configuration and WV Series vertical configuration, from one-half to 12 1/2 tons ("WH/WV"). These WH/WV units were produced solely out of the AAON Oklahoma facility. Production of the remaining WH/WV backlog was completed during the second quarter 2023. Accounting Policies   A comprehensive discussion of our critical accounting policies and management estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022. Fair Value Measurements The carrying amounts of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of the items. The carrying amount of the Company’s revolving line of credit, and other payables, approximate their fair values either due to their short term nature, the variable rates associated with the debt or based on current rates offered to the Company for debt with similar characteristics. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: •Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. •Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. •Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets, contingent consideration, and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Definite-Lived Intangible Assets Our definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations. We amortize our definite-lived intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.  Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill and indefinite-lived intangible assets are not amortized, but instead are evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. The changes in the carrying amount of goodwill were as follows: Six Months Ended June 30, 2023 2022 (in thousands) Balance, beginning of period $ 81,892  $ 85,727  Additions due to acquisitions —  —  Decreases due to business combination revisions1 —  (3,835) Balance, end of period $ 81,892  $ 81,892    1 Revisions related to the December 2021 acquisition of BASX. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed or included within the Company's Annual Report on Form 10-K for the year ended December 31, 2022, were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto.

v3.23.2

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition   The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations. Three Months Ended June 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 196,065  $ —  $ —  $ 196,065  Condensing units 61  11,329  —  11,390  Air handlers —  12,610  2,600  15,210  Outdoor mechanical rooms —  61  —  61  Cleanroom systems —  —  17,086  17,086  Data center cooling solutions —  1,794  15,877  17,671  Water-source heat pumps 398  3,086  —  3,484  Part sales 15,963  —  243  16,206  Other1 5,727  1,201  (144) 6,784  $ 218,214  $ 30,081  $ 35,662  $ 283,957  Three Months Ended June 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 138,616  $ —  $ —  $ 138,616  Condensing units —  11,949  —  11,949  Air handlers —  11,540  2,945  14,485  Outdoor mechanical rooms —  260  —  260  Cleanroom systems —  —  8,246  8,246  Data center cooling solutions —  —  12,837  12,837  Water-source heat pumps 1,876  1,798  —  3,674  Part sales 13,857  —  331  14,188  Other1 3,132  1,207  220  4,559  $ 157,481  $ 26,754  $ 24,579  $ 208,814   1 Other sales include freight, extended warranties and miscellaneous revenue. Six Months Ended June 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 376,091  $ —  $ —  $ 376,091  Condensing units 61  26,607  —  26,668  Air handlers —  24,831  5,638  30,469  Outdoor mechanical rooms 208  212  —  420  Cleanroom systems —  —  29,708  29,708  Data center cooling solutions —  3,240  30,353  33,593  Water-source heat pumps 3,128  6,166  —  9,294  Part sales 29,867  1  491  30,359  Other1 10,861  2,436  11  13,308  $ 420,216  $ 63,493  $ 66,201  $ 549,910  Six Months Ended June 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 260,322  $ —  $ —  $ 260,322  Condensing units 242  20,925  —  21,167  Air handlers —  20,978  4,284  25,262  Outdoor mechanical rooms 554  370  —  924  Cleanroom systems —  —  16,285  16,285  Data center cooling solutions —  —  23,705  23,705  Water-source heat pumps 4,862  4,151  —  9,013  Part sales 24,073  —  331  24,404  Other1 7,295  2,265  943  10,503  $ 297,348  $ 48,689  $ 45,548  $ 391,585   1 Other sales include freight, extended warranties and miscellaneous revenue. Due to the highly customized nature of many of the Company’s products and each product not having an alternative use to the Company without significant costs to the Company, the Company recognizes revenue over time as progress is made toward satisfying the performance obligations of each contract. The Company has formal cancellation policies and generally does not accept returns on these units. As a result, many of the Company’s products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit. Contract costs include direct materials, direct labor, installation, freight and delivery, commissions and royalties. Other costs not related to contract performance, such as indirect labor and materials, small tools and supplies, operating expenses, field rework and back charges are charged to expense as incurred. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income, and are estimated and recognized by the Company throughout the life of the contract. The aggregate of costs incurred and income recognized on uncompleted contracts in excess of billings is shown as a contract asset within our consolidated balance sheets, and the aggregate of billings on uncompleted contracts in excess of related costs incurred and income recognized is shown as a contract liability within our consolidated balance sheets. For all other products that are part sales or standardized units, the Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. As the primary performance obligation in such a contract is delivery of the requested manufactured equipment, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders. Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates. Historically, sales of our products were moderately seasonal with the peak period being May-October of each year due to timing of construction projects being directly related to warmer weather. However, in recent years, given the increases in demand of our product and increases in our backlog, sales have become more constant throughout the year. Product Warranties A provision is made for the estimated cost of maintaining product warranties to customers at the time the product is sold based upon historical claims experience by product line. The Company records a liability and an expense for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the liability and expense in the current year. The Company also sells extended warranties on parts for various lengths of time ranging from six months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period. Representatives and Third Party Products We are responsible for billings and collections resulting from all sales transactions, including those initiated by our independent manufacturer representatives (“Representatives”). Representatives are national companies that are in the business of providing HVAC units and other related products and services to customers. The end user customer orders a bundled group of products and services from the Representative and expects the Representative to fulfill the order. These additional products and services may include controls purchased from another manufacturer to operate the unit, start-up services, and curbs for supporting the unit (“Third Party Products”). All are associated with the purchase of a HVAC unit but may be provided by the Representative or another third party. Only after the specifications are agreed to by the Representative and the customer, and the decision is made to use an AAON HVAC unit, will we receive notice of the order. We establish the amount we must receive for our HVAC unit (“minimum sales price”), but do not control the total order price that is negotiated by the Representative with the end user customer. The Representatives submit the total order price to us for invoicing and collection. The total order price includes our minimum sales price and an additional amount which may include both the Representatives’ fee and amounts due for additional products and services required by the customer. The Company is considered the principal for the equipment we design and manufacture and records that revenue. The Company has no control over the Third Party Products to the end customer and the Company is under no obligation related to the Third Party Products. Amounts related to Third Party Products are not recognized as revenue but are recorded as a liability and are included in accrued liabilities on the consolidated balance sheets. The Representatives’ fee and Third Party Products amounts (“Due to Representatives”) are paid only after all amounts associated with the order are collected from the customer. The amount of payments to our Representatives were $13.0 million and $11.4 million for the three months ended June 30, 2023 and 2022, respectively, and $26.3 million and $17.9 million for the six months ended June 30, 2023 and 2022, respectively.

v3.23.2

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The Company has various lease arrangements for certain manufacturing and warehousing facilities, equipment rental, as well as administrative facilities. Currently, all leases are classified as operating leases. The following table presents the balances by lease type: Balance Sheet Classification June 30, 2023 December 31, 2022 Operating Leases Right of use assets Right of use assets $ 7,378  $ 7,123  Lease liability, short-term Accrued liabilities $ 1,607  $ 1,254  Lease liability, long-term Other long-term liabilities $ 5,962  $ 5,993  Since 2018, the Company has leased the manufacturing, engineering and office space used by our operations in Parkville, Missouri, which is classified as an operating lease. In October 2022, the Parkville, Missouri lease was amended to expand our manufacturing and office space from 51,000 square feet to 86,000 square feet. The amended lease provides for approximately 31,000 square feet of additional manufacturing and engineering space and approximately 4,000 square feet of additional office space. The amended lease extends the lease term through December 31, 2032. In November 2022, the Company entered into a lease agreement for land and facilities in Tulsa, Oklahoma which provides an additional 198,000 square feet to support our operations. The lease term will expire October 31, 2025. On July 28, 2023, the Company entered into a lease agreement with a start date of September 1, 2023, for land and approximately 72,000 square feet of facilities in Redmond, Oregon to support our manufacturing operations. The lease term is approximately five years with additional renewal options. This lease will be classified as an operating lease starting in third quarter of 2023.

v3.23.2

Accounts Receivable	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable and the related allowance for credit losses are as follows:     June 30, 2023 December 31, 2022   (in thousands) Accounts receivable $ 154,417  $ 127,635  Less:  Allowance for credit losses (306) (477) Total, net $ 154,111  $ 127,158      Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Allowance for credit losses: (in thousands) Balance, beginning of period $ 421  $ 837  $ 477  $ 549  (Recoveries of) provisions for expected credit (115) (107) (171) 181  losses, net of adjustments Accounts receivable written off, net of recoveries —  (167) —  (167) Balance, end of period $ 306  $ 563  $ 306  $ 563

v3.23.2

Inventories	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) method. We establish an allowance for excess and obsolete inventories based on product line changes, the feasibility of substituting parts and the need for supply and replacement parts. The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows:   June 30, 2023 December 31, 2022   (in thousands) Raw materials $ 210,937  $ 194,159  Work in process 4,087  3,501  Finished goods 5,665  5,806  Total, gross 220,689  203,466  Less:  Allowance for excess and obsolete inventories (5,281) (4,527) Total, net $ 215,408  $ 198,939     Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 4,748  $ 2,007  $ 4,527  $ 1,787  Provision for (recoveries of) excess and 794  (72) 1,458  148       obsolete inventories Inventories written off (261) (64) (704) (64) Balance, end of period $ 5,281  $ 1,871  $ 5,281  $ 1,871

v3.23.2

Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets Our intangible assets consist of the following:   June 30, 2023 December 31, 2022 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295  $ 6,295  Customer relationships 47,547  47,547  Less:  Accumulated amortization (5,610) (3,807)                Total, net 48,232  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 62,803  $ 64,606  Amortization expense recorded in cost of sales is as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Amortization expense $ 901  $ 901  $ 1,803  $ 1,796  Excluding the impact of any future acquisitions, the Company anticipates amortization expense to be $3.6 million for each of the years ending 2023 through 2027.

v3.23.2

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information    Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Supplemental disclosures: (in thousands) Interest paid $ 1,506  $ 418  $ 2,627  $ 533  Income taxes paid $ 33,471  $ 10,805  $ 33,643  $ 10,981  Non-cash investing and financing activities:     Non-cash capital expenditures $ 1,205  $ 221  $ 1,571  $ 679  Dividends declared $ —  $ 10,096  $ —  $ 10,096

v3.23.2

Warranties	6 Months Ended
	Jun. 30, 2023
Guarantees [Abstract]
Warranties	Warranties The Company has product warranties with various terms from one year from the date of first use or 18 months for parts, data center cooling solutions, and cleanroom systems to 25 years for certain heat exchangers. The Company has an obligation to replace parts if conditions under the warranty are met. A provision is made for estimated warranty costs at the time the related products are sold based upon the warranty period, historical trends, new products, and any known identifiable warranty issues.   Changes in the warranty accrual are as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Warranty accrual: (in thousands) Balance, beginning of period $ 16,209  $ 13,707  $ 15,682  $ 13,769  Payments made (2,435) (1,679) (4,316) (2,898) Warranty expense 3,126  2,353  5,534  3,510  Balance, end of period $ 16,900  $ 14,381  $ 16,900  $ 14,381

v3.23.2

Accrued Liabilities and Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Liabilities and Other Long-Term Liabilities	Accrued Liabilities and Other Long-Term Liabilities Accrued liabilities were comprised of the following:   June 30, 2023 December 31, 2022   (in thousands) Warranty $ 16,900  $ 15,682  Due to representatives 17,282  15,545  Payroll 15,190  11,901  Profit sharing 6,087  5,451  Workers' compensation 399  367  Medical self-insurance 1,536  1,178  Customer prepayments 24,510  3,750  Donations, short-term 390  637  Accrued income taxes —  12,472  Employee vacation time 9,726  6,329  Lease liability, short-term 1,607  1,254  Property taxes 1,722  —  Extended warranties, short-term 2,589  1,330  Other 3,263  2,734  Total $ 101,201  $ 78,630  Other long-term liabilities were comprised of the following:     June 30, 2023 December 31, 2022   (in thousands) Lease liability $ 5,962  $ 5,993  Extended warranties 4,806  4,539  Donations and other 596  976  Total $ 11,364  $ 11,508

v3.23.2

Revolving Credit Facility	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility On May 27, 2022, we amended our $100.0 million Amended and Restated Loan Agreement dated November 24, 2021 (as amended, “Revolver”), to provide for maximum borrowings of $200.0 million. As of June 30, 2023 and December 31, 2022, we had $78.5 million and $71.0 million outstanding under the Revolver, respectively. We have one standby letter of credit totaling $0.3 million as of June 30, 2023. Borrowings available under the Revolver at June 30, 2023 were $121.2 million. The Revolver expires on May 27, 2027. On April 20, 2023, we amended the Revolver to allow for the occurrence of transactions associated with the New Markets Tax Credit executed on April 25, 2023 (Note 16). Any outstanding loans under the Revolver bear interest at the daily compounded secured overnight financing rate ("SOFR") plus the applicable margin. Applicable margin, ranging from 1.25% - 1.75%, is determined quarterly based on the Company's leverage ratio. The Company is also subject to letter of credit fees, ranging from 1.25% - 1.75%, and a commitment fee, ranging from 0.10% - 0.20%. The applicable fee percentage is determined quarterly based on the Company's leverage ratio. The weighted average interest rate on borrowings outstanding on the Revolver was 6.3% and 6.2% for the three and six months ended June 30, 2023, respectively, as compared to 1.9% and 1.7% for the three and six months ended June 30, 2022, respectively. Fees associated with the unused portion of the committed amount are included in interest expense on our consolidated statements of income for the three and six months ended June 30, 2023 and 2022. If SOFR cannot be determined pursuant to the definition, as defined by the Revolver agreement, any outstanding affected loans will be deemed to have been converted into alternative base rate ("ABR") loans. ABR loans would bear interest at a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50%, or (c) daily simple SOFR for a one-month tenor in effect on such day plus 1.00%. At June 30, 2023, we were in compliance with our covenants, as defined by the Revolver. Our financial covenants require that we meet certain parameters related to our leverage ratio. At June 30, 2023, our leverage ratio was 0.37 to 1.0, which meets the requirement of not being above 3 to 1.

v3.23.2

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision (benefit) for income taxes consists of the following:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022   (in thousands) Current $ 13,037  $ 5,277  $ 18,472  $ 9,086  Deferred (5,359) (1,100) (4,438) (127)      Income tax provision $ 7,678  $ 4,177  $ 14,034  $ 8,959  The provision for income taxes differs from the amount computed by applying the Federal statutory income tax rate before the provision for income taxes. The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Federal statutory rate 21.0  % 21.0  % 21.0  % 21.0  % State income taxes, net of Federal benefit 4.6  6.3  4.4  4.5  Excess tax benefits related to share-based compensation (Note 12) (3.8) (1.0) (6.0) (1.7) Return to provision —  (1.2) (0.1) (0.6) Research and development credits (1.2) (1.5) (1.3) (1.2) Change in valuation allowance (Oklahoma Investment Credit) (5.8) —  (3.2) —  Other (0.4) (2.8) (0.3) (1.1)      Effective tax rate 14.4  % 20.8  % 14.5  % 20.9  % We have historically earned investment tax credits from the state of Oklahoma’s manufacturing property investment program. We use the flow-through method to account for investment tax credits earned on eligible tangible asset expenditures. Under this method, the investment tax credits are recognized as a reduction to our Oklahoma income tax expense in the year they are used. As part of our expansion projects in Oklahoma, we identified a separate, more advantageous Oklahoma credit program (non income tax related) which will cause us to discontinue our accumulation of credits for Oklahoma’s manufacturing property investment program after the 2022 tax year. The Company had investment tax credit carryforwards with a valuation allowance reserved against them as we did not have sufficient taxable income to utilize the carryforwards, in part because we generated more credit each year than we were able to utilize. Because the Company will not generate additional excess credits after our 2022 tax year, we will be able to use our credit carryforwards against future taxable income and the related valuation allowance was reversed resulting in a one-time benefit of $3.1 million to the income tax provision for the three and six months ended June 30, 2023. As of June 30, 2023, we have investment tax credit carryforwards of approximately $4.9 million. These credits have estimated expirations from the year 2039 through 2043. The Company's estimated annual 2023 effective tax rate, excluding discrete events, is approximately 24.1%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. income tax examinations for tax years 2019 to present, and to non-U.S. income tax examinations for the tax years 2018 to present. In addition, we are subject to state and local income tax examinations for the tax years 2018 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.

v3.23.2

Share-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards. Under the LTIP, the exercise price of shares granted could not be less than 100% of the fair market value at the date of the grant. On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan ("2016 Plan") which provides for approximately 8.9 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 2.6 million shares that were approved by the stockholders on May 15, 2018, and an additional 2.5 million shares that were approved by the stockholders on May 12, 2020. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee determines the persons to whom awards are to be made, determines the type, size and terms of awards, interprets the 2016 Plan, establishes and revises rules and regulations relating to the 2016 Plan and makes any other determinations that it believes necessary for the administration of the 2016 Plan. Options The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2023 and 2022 using a Black Scholes-Merton Model:   Six months ended   June 30, 2023 June 30, 2022 Directors and SLT1:     Expected (annual) dividend rate $0.48 $0.38 Expected volatility 37.89% 35.95% Risk-free interest rate 4.39% 2.17% Expected life (in years) 4.0 4.0 Employees:     Expected (annual) dividend rate $0.48 $0.38 Expected volatility 38.52% 37.29% Risk-free interest rate 4.40% 2.11% Expected life (in years) 3.0 3.0 1 SLT consists of officers and key members of management.   The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date.   The following is a summary of stock options vested and exercisable as of June 30, 2023:   Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $ 20.92  - $ 41.37  1,048,962  4.79 $ 37.06  $ 60,579  $ 42.42  - $ 55.30  364,787  6.99 46.34  17,682  $ 55.50  - $ 97.89  137,879  7.66 72.62  3,060  Total 1,551,628  5.56 $ 42.40  $ 81,321    A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2022 3,040,347  $ 45.20  Granted 213,164  91.49  Exercised (532,830) 43.62  Forfeited or Expired (38,727) 51.88  Outstanding at June 30, 2023 2,681,954  $ 49.09  Exercisable at June 30, 2023 1,551,628  $ 42.40    The total pre-tax compensation cost related to unvested stock options not yet recognized as of June 30, 2023 is $13.1 million and is expected to be recognized over a weighted average period of approximately 1.6 years. The total intrinsic value of options exercised during the six months ended June 30, 2023 and 2022 was $25.3 million and $3.5 million, respectively. The cash received from options exercised during the six months ended June 30, 2023 and 2022 was $23.2 million and $6.4 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying consolidated statements of cash flows. Restricted Stock The fair value of restricted stock awards is based on the fair market value of AAON, Inc. common stock on the respective grant dates, reduced for the present value of dividends. At June 30, 2023, unrecognized compensation cost related to unvested restricted stock awards was approximately $6.6 million, which is expected to be recognized over a weighted average period of approximately 1.8 years. A summary of the unvested restricted stock awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 144,826  $ 50.00  Granted 46,492  89.26  Vested (60,373) 48.67  Forfeited (1,112) 56.35  Unvested at June 30, 2023 129,833  $ 64.62  PSUs We have awarded performance restricted stock units ("PSUs") to certain officers and employees under our 2016 Plan. Unlike our restricted stock awards, these PSUs are not considered legally outstanding and do not accrue dividends during the vesting period. These PSUs vest based on the level of achievement with respect to the Company's total shareholder return ("TSR") benchmarked against similar companies included in the capital goods sector of the S&P SmallCap 600 Index. The TSR measurement period is three years. At the end of the measurement period, each award will be converted into common stock at 0% to 200% of the PSUs held, depending on overall TSR as compared to the S&P SmallCap 600 Index benchmark companies. The total pre-tax compensation cost related to unvested PSUs not yet recognized as of June 30, 2023 is $5.7 million and is expected to be recognized over a weighted average period of approximately 2.0 years. The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the six months ended June 30, 2023 and 2022 using a Monte Carlo Model:   Six months ended   June 30, 2023 June 30, 2022   Expected (annual) dividend rate $0.48 $0.38 Expected volatility 32.71% 37.60% Risk-free interest rate 4.66% 2.00% Expected life (in years) 2.8 2.8   The expected term of the PSUs is based on their remaining performance period. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. A summary of the unvested PSUs is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 62,659  $ 54.92  Granted 38,759  126.61  Vested —  —  Forfeited —  —  Unvested at June 30, 20231 101,418  $ 82.32  1Consists of 14,817 PSUs cliff vesting December 31, 2023, 47,842 PSUs cliff vesting December 31, 2024, and 38,759 PSUs cliff vesting December 31, 2025. Key Employee Awards As part of the December 2021 acquisition of BASX, the Company granted awards to key employees of BASX ("Key Employee Awards"). Unlike our restricted stock awards under the 2016 Plan, the Key Employee Awards are not considered legally outstanding and do not accrue dividends during the vesting period. The potential future issuance of the Key Employee Awards is contingent upon BASX meeting certain post-closing earn-out milestones during each of the years ending 2021, 2022 and 2023 as defined by the BASX acquisition membership interest purchase agreement ("MIPA Agreement") and continued employment with the Company. At the end of the earn-out period, ending December 31, 2023, each eligible Key Employee Award will vest and be converted into common stock. The fair value of Key Employee Awards is based on the fair market value of AAON common stock on the grant date. The total pre-tax compensation cost related to unvested Key Employee Awards not yet recognized as of June 30, 2023 is $0.5 million and is expected to be recognized over a weighted average period of approximately 0.5 years. A summary of the unvested Key Employee Awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 26,599  $ 80.18  Granted —  —  Vested —  —  Forfeited —  —  Unvested at June 30, 2023 26,599  $ 80.18  Share-Based Compensation A summary of share-based compensation is as follows: Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Grant date fair value of awards during the period: (in thousands) Options $ 445  $ 650  $ 5,118  $ 5,499  PSUs 1,666  219  4,907  2,081  Restricted stock 1,244  1,018  4,150  3,155  Total $ 3,355  $ 1,887  $ 14,175  $ 10,735  Share-based compensation expense: Options $ 2,311  $ 2,339  $ 4,376  $ 4,379  PSUs 716  292  1,083  477  Restricted stock 1,024  843  1,850  1,522  Key employee awards 253  322  514  530  Total $ 4,304  $ 3,796  $ 7,823  $ 6,908  Income tax benefit related to share-based compensation: Options $ 1,840  $ 198  $ 5,161  $ 491  Restricted stock 199  9  664  228  Total $ 2,039  $ 207  $ 5,825  $ 719    Share-based compensation expense is recognized on a straight-line basis over the service period of the related share-based compensation award. Historically, stock options and restricted stock awards, granted to employees, vested at a rate of 20% per year. Restricted stock awards granted to directors historically vested one-third each year or, if granted on or after May 2019, vest over the shorter of directors' remaining elected term or one-third each year. As of March 2021, all new grants of stock options and restricted stock awards, granted to employees, vest at a rate of 33.3% per year. Forfeitures are accounted for as they occur. Historically, if the employee or director is retirement eligible (as defined by the applicable LTIP or 2016 Plan) or becomes retirement eligible during the service period of the related share-based compensation award, the service period (and compensation expense recognition) is the lesser of 1) the grant date, if retirement eligible on grant date, or 2) the period between grant date and retirement eligible date. All stock options and restricted stock awards granted on or after March 1, 2020 to retirement eligible employees or directors contain a one-year employment requirement (minimum service period) or the entire award is forfeited. Forfeitures are accounted for as they occur. The PSUs cliff vest on December 31, at the end of the third year from the date of grant. Share-based compensation expense is recognized on a straight-line basis over the service period of PSUs. The PSUs are subject to several service and market conditions, as defined by the PSU agreement, which allows the holder to retain a pro-rata amount of awards as a result of certain termination conditions, retirement, change in common control, or death. Forfeitures are accounted for as they occur. The Key Employee Awards cliff vest on December 31, 2023. Share-based compensation expense is recognized on a straight-line basis over the service period of the Key Employee Awards when it is probable that the performance conditions will be satisfied. The Key Employee Awards are subject to several service and performance conditions, as defined by the Key Employee Award agreement, which allows the holder to retain an amount of the awards as a result of certain termination conditions or change in common control. Forfeitures are accounted for as they occur.

v3.23.2

Employee Benefits	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits Defined Contribution Plan - 401(k) We sponsor a defined contribution plan (the “Plan”). Eligible employees may make contributions in accordance with the Plan and IRS guidelines. In addition to the traditional 401(k), eligible employees are given the option of making an after-tax contribution to a Roth 401(k) or a combination of both. The Plan provides for automatic enrollment and for an automatic increase to the deferral percentage at January 1st of each year and each year thereafter. Eligible employees are automatically enrolled in the Plan at a 6% deferral rate and currently contributing employees deferral rates will be increased to 6% unless their current rate is at or above 6% or the employee elects to decline the automatic enrollment or increase. Administrative expenses are paid for by Plan participants. The Company paid no administrative expenses during the six months ended June 30, 2023 and 2022. The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 3,408  $ 3,273  $ 8,667  $ 6,579  Profit Sharing Bonus Plans We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit from AAON Oklahoma and AAON Coil Products is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees of AAON Oklahoma or AAON Coil Products who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. BASX has a separate employee incentive program (EIP) under which 5% of BASX's pre-tax profit, plus certain add backs, is paid ratably to eligible employees based on days-of-pay during the fiscal year. Eligible employees are regular full-time and part-time employees who have worked during the year and are still employed when the EIP payment is made following the end of the fiscal year, excluding members of BASX's senior leadership team and any employee paid commissions or royalties. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 5,952  $ 2,146  $ 10,818  $ 4,815  Employee Medical Plan At AAON Oklahoma and AAON Coil Products, we self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating AAON Oklahoma and AAON Coil Products employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles. BASX is insured for healthcare coverage through a third party. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company contributes certain amounts for BASX's employees enrolled in a high deductible plan to a qualified health savings account to assist employees with health insurance plan deductibles. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Medical premium payments $ 4,132  $ 2,043  $ 6,800  $ 3,989  Health saving account contributions 1,198  964  2,258  1,903

v3.23.2

Earnings Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards. The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 54,293,127  53,095,286  54,175,682  52,992,439  Effect of dilutive shares related to stock based compensation1 1,353,260  566,590  1,334,800  747,998  Effect of dilutive shares related to contingent consideration2 —  —  141,850  204,179  Diluted weighted average shares 55,646,387  53,661,876  55,652,332  53,944,616  Earnings per share:     Basic $ 0.84  $ 0.30  $ 1.52  $ 0.64  Dilutive $ 0.82  $ 0.30  $ 1.48  $ 0.63  Anti-dilutive shares:     Shares 231,579  879,554  175,936  658,595  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)

v3.23.2

Stockholders' Equity	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchases The Board has authorized one active stock repurchase program for the Company. The Company may purchase shares on the open market from time to time. The Board must authorize the timing and amount of these purchases and all repurchases are in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. Our open market repurchase programs are as follows: Effective Date Authorized Repurchase $ Expiration Date March 13, 2020 $20 million November 9, 2022 November 3, 2022 $50 million ** 1 1 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board. The Company repurchases shares of AAON, Inc. stock from employees for payment of statutory tax withholdings on stock transactions. All other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices. Lastly, the Company also had a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan were entitled to have shares in AAON, Inc. stock in their accounts sold to the Company. The 401(k) Plan was amended in June 2022 to discontinue this program. No additional shares have been purchased by the Company under this arrangement since June 2022. Our repurchase activity is as follows: Six Months Ended June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market —  $ —  $ —  —  $ —  $ —  401(k) —  —  —  103,936  5,913  56.89  Employees 13,083  1,162  88.82  16,183  953  58.89  Total 13,083  $ 1,162  $ 88.82  120,119  $ 6,866  $ 57.16  Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to June 30, 2023 (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,327,367  $ 81,616  $ 18.86  401(k) 8,308,368  171,789  20.68  Directors and employees 2,058,038  24,522  11.92  Total 14,693,773  $ 277,927  $ 18.91  Cash Dividends At the discretion of the Board, we pay cash dividends. Board approval is required to determine the date of declaration and amount for each cash dividend payment. Our recent cash dividends are as follows: Declaration Date1 Record Date Payment Date Dividend per Share  Annualized Dividend per Share May 18, 2022 June 3, 2022 July 1, 2022 $0.19 $0.38 November 8, 2022 November 28, 2022 December 16, 2022 $0.24 $0.48 March 1, 2023 March 13, 2023 March 31, 2023 $0.12 $0.48 May 18, 2023 June 9, 2023 June 30, 2023 $0.12 $0.48 1 Effective with the cash dividend declared on March 1, 2023 (paid on March 31, 2023), the Company moved from semi-annual cash dividends to quarterly cash dividends. Stock Split On July 7, 2023, the Board of Directors declared a three-for-two stock split of the Company's common stock to be paid in the form of a stock dividend. Stockholders of record at the close of business on July 28, 2023 will receive one additional share for every two shares they hold as of that date on August 16, 2023 (ex-dividend date August 17, 2023). Pro Forma Results of Stock Split The retroactive effect of the stock split, which will occur in the third quarter of 2023, will result in an insignificant (less than $0.1 million) reclass between common stock and retained earnings within stockholders' equity on the consolidated balance sheet. The following table sets forth the pro forma computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022: (unaudited)   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 81,439,691  79,642,930  81,263,523  79,488,659  Effect of dilutive shares related to stock based compensation1 2,029,890  849,885  2,002,199  1,121,997  Effect of dilutive shares related to contingent consideration2 —  —  212,776  306,269  Diluted weighted average shares 83,469,581  80,492,815  83,478,498  80,916,925  Earnings per share:     Basic $ 0.56  $ 0.20  $ 1.02  $ 0.43  Dilutive $ 0.55  $ 0.20  $ 0.99  $ 0.42  Anti-dilutive shares:     Shares 347,368  1,319,331  263,905  987,893  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15) The unaudited pro forma financial information was prepared in accordance with GAAP and is not necessarily indicative of the results of operations that would have occurred if the stock split had been effective before the date indicated above, nor is it indicative of the future operating results of the Company. Contingent Shares Issued in BASX Acquisition In December 2021, we closed on the acquisition of BASX. Under the MIPA Agreement, we committed to $78.0 million in the aggregate of contingent consideration to the former owners of BASX, which is payable in approximately 1.04 million shares of the Company's common stock, par value $0.004 per share. The shares do not accrue dividends. Under the MIPA Agreement, the potential future issuance of the shares is contingent upon BASX meeting certain post-closing earn-out milestones during each of the years ended 2021, 2022, and 2023. Based on the final allocation of the consideration paid, we estimated the fair value of contingent consideration related to these shares to be approximately $60.0 million, which is included in additional paid-in capital on the consolidated balance sheets. As of June 30, 2023, 0.39 million shares and 0.49 million shares related to the earn-out milestones for the years ended 2022 and 2021, respectively, have been issued to the former owners of BASX as private placements exempt from registration with the SEC under Rule 506(b), which are included in common stock on the consolidated statements of stockholders' equity.

v3.23.2

New Market Tax Credit	6 Months Ended
	Jun. 30, 2023
New Market Tax Credit [Abstract]
New Market Tax Credit	New Markets Tax Credit 2019 New Markets Tax Credit On October 24, 2019, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2019 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2019 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2019 Project”). In connection with the 2019 NMTC transaction, the Company received a $23.0 million NMTC allocation for the Project and secured low interest financing and the potential for future debt forgiveness related to the 2019 Project. Upon closing of the 2019 NMTC transaction, the Company provided an aggregate of approximately $15.9 million to the 2019 Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $15.9 million in proceeds plus capital contributed from the 2019 Investor was used to make an aggregate $22.5 million loan to a subsidiary of the Company. This financing arrangement is secured by equipment at the Company's Longview, Texas facilities and a guarantee from the Company, including an unconditional guarantee of the NMTCs. This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2019 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2019 Investor's interest of $6.5 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.3 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. 2023 New Markets Tax Credit On April 25, 2023, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2023 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2023 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2023 Project”). In connection with the 2023 NMTC transaction, the Company received a $23.0 million NMTC allocation for the 2023 Project and secured low interest financing and the potential for future debt forgiveness related to the expansion of its Longview, Texas facilities. Upon closing of the 2023 NMTC transaction, the Company provided an aggregate of approximately $16.7 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $16.7 million in proceeds plus capital contributed from the 2023 Investor was used to make an aggregate $23.8 million loan to a subsidiary of the Company. This financing arrangement is secured by a guarantee from the Company, including an unconditional guarantee of the NMTCs. The net proceeds from the closing of the 2023 NMTC is included in restricted cash on our consolidated balance sheets required to be used for the 2023 Project. This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2023 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2023 Investor's interest of $5.7 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.4 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. The 2019 Investor and 2023 Investor are each subject to 100 percent recapture of the 2019 and 2023 NMTC, respectively, it receives for a period of seven years, as provided in the Internal Revenue Code and applicable U.S. Treasury regulations in the event that the financing facility of the Borrower under the transaction (AAON Coil Products, Inc.) becomes ineligible for NMTC treatment per the Internal Revenue Code requirements. The Company is required to be in compliance with various regulations and contractual provisions that apply to the 2019 NMTC arrangements and 2023 NMTC arrangements, respectively. Noncompliance with applicable requirements could result in the 2019 and/or 2023 Investors' projected tax benefits not being realized and, therefore, require the Company to indemnify the 2019 Investor and 2023 Investor for any loss or recapture of the 2019 NMTC and 2023 NMTC, respectively, related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with either of these financing arrangements.The 2019 Investor and 2023 Investor and its majority owned community development entity are considered VIEs and the Company is the primary beneficiary of the VIEs. Because the Company is the primary beneficiary of the VIEs, they have been included in the consolidated financial statements. There are no other assets, liabilities or transactions in these VIEs outside of the financing transactions executed as part of the 2019 NMTC or 2023 NMTC arrangements, respectively.

v3.23.2

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies   Havtech Litigation On January 24, 2022, one of the Company’s former independent sales representative firms, Havtech, LLC (and its affiliate, Havtech Parts Division, LLC, collectively “Plaintiffs”), filed a complaint (the “Complaint”) in the Circuit Court for Howard County, Maryland (Havtech, LLC, et al., v. AAON, Inc., et al.). The Complaint challenged the Company’s termination of its business relationship with Plaintiffs. The Company removed the action to the United States District Court for the District of Maryland (Northern Division) and moved to dismiss the Complaint. Plaintiffs’ First Amended Complaint (“First Amended Complaint”) was entered by the court on July 28, 2022. The First Amended Complaint asserts that the Company improperly terminated Plaintiffs and seeks damages alleged to be no less than $48.6 million, plus fees and costs. The Company filed its Answer to First Amended Complaint on January 31, 2023. The Company believes that Plaintiffs’ claims are without merit and intends to vigorously defend itself. Other Matters The Company is involved from time to time in claims and lawsuits incidental to our business arising from various matters, including alleged violations of contract, product liability, warranty, environmental, regulatory, personal injury, intellectual property, employment, tax and other laws. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We do not believe these matters will have a material adverse effect on our business, financial position, results of operations or cash flows. We are occasionally party to short-term and long-term, cancellable and occasionally non-cancellable, contracts with major suppliers for the purchase of raw material and component parts. We expect to receive delivery of raw material and component parts for use in our manufacturing operations. These contracts are not accounted for as derivative instruments because they meet the normal purchase and normal sales exemption. We had no material contractual purchase obligations as of June 30, 2023, except as noted below. On April 27, 2022, the Company entered into a purchase and sale agreement with a third-party manufacturer to purchase certain assets to design and manufacture fan wheels for the purchase price of $6.5 million. As of June 30, 2023, we have paid approximately $3.5 million related to this agreement, which is included in other long-term assets and property, plant and equipment, with the remaining $3.0 million included in accounts payable and other long-term assets on our consolidated balance sheets. The final payment is expected to be made in 2023.

v3.23.2

Related Parties	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Parties	Related Parties The following is a summary of transactions and balances with related parties:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Sales to affiliates $ 2,619  $ 2,327  $ 3,764  $ 3,079  Payments to affiliates 390  639  782  1,003  June 30, 2023 December 31, 2022 (in thousands) Due from affiliates $ 559  $ 432  Due to affiliates 319  —  The nature of our related party transactions is as follows: •The Company sells units to an entity owned by a member of the CEO/President's immediate family. This entity is also one of the Company’s Representatives and as such, the Company makes payments to the entity for third party products. •The Company purchases some supplies from entities controlled by two of the Company’s board members and a member of the Company's executive management team. •The Company periodically makes part sales and makes payments to a board member related to a consulting agreement. •The Company periodically rents space partially owned by the CEO/President for various Company meetings. •From December 10, 2021 through May 31, 2022, the Company leased a manufacturing and office facility in Redmond, Oregon from an entity in which certain members of BASX management have an ownership interest. This facility was purchased 100% by the Company on May 31, 2022.

v3.23.2

Segments	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segments	Segments The Company has determined that it has three reportable segments for financial reporting purposes. Management evaluates the performance of its business segments primarily on gross profit. The Company's chief operating decision maker ("CODM"), our CEO, allocates resources and assesses the performance of each operating segment using information about the operating segment's net sales and income from operations. The CODM does not evaluate operating segments using asset or liability information. AAON Oklahoma: AAON Oklahoma designs, manufactures, sells and services standard, semi-custom and custom heating, ventilation and air conditioning ("HVAC") systems, designs and produces controls solutions for all of our HVAC units and sells retail parts to customers through our two retail part stores in Tulsa, Oklahoma as well as online. Through our Norman Asbjornson Innovation Center ("NAIC") research and development laboratory facility in Tulsa, Oklahoma, the Company is able to test units under various environmental conditions. AAON Oklahoma includes the operations of our Tulsa, Oklahoma and Parkville, Missouri facilities, our NAIC research and development laboratory facility and two retail parts locations. AAON Coil Products: AAON Coil Products designs and manufactures a selection of our standard, semi-custom and custom HVAC systems. AAON Coil Products also designs and manufactures various heating and cooling coils to be used in HVAC systems, mostly for the benefit of AAON Oklahoma and AAON Coil Products. AAON Coil Products consists of operations at our Longview, Texas facilities. BASX: BASX provides product development design and manufacturing of custom engineered air handling systems including high efficiency data center cooling solutions, cleanroom HVAC systems, commercial/industrial HVAC systems and modular solutions. Additionally, BASX designs and manufactures cleanroom environmental control systems to support hospital surgical suites, pharmaceutical process facilities, semiconductor and electronics manufacturing, laboratory and isolation modular cleanrooms for facility flexibility. BASX consists of operations at our Redmond, Oregon facility. The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The Gross Profit amounts shown below are presented after elimination entries. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net Sales (in thousands) AAON Oklahoma      External sales $ 218,214  $ 157,481  $ 420,216  $ 297,348       Inter-segment sales 1,205  770  2,699  1,159  AAON Coil Products      External sales 30,081  26,754  63,493  48,689       Inter-segment sales 9,499  8,093  16,816  16,010  BASX External sales 35,662  24,579  66,201  45,548  Inter-segment sales 1,130  —  1,500  —  Eliminations (11,834) (8,863) (21,015) (17,169)              Net sales $ 283,957  $ 208,814  $ 549,910  $ 391,585    Gross Profit AAON Oklahoma $ 75,379  $ 31,737  $ 137,229  $ 65,573  AAON Coil Products 7,483  8,474  14,641  15,780  BASX 11,156  7,165  19,302  12,087              Gross profit $ 94,018  $ 47,376  $ 171,172  $ 93,440  June 30, 2023 December 31, 2022 Long-lived assets (in thousands) AAON Oklahoma $ 244,762  $ 213,731  AAON Coil Products 75,422  68,013  BASX 40,045  35,578              Total long-lived assets $ 360,229  $ 317,322  Intangible assets and goodwill AAON Oklahoma $ 3,229  $ 3,229  AAON Coil Products —  —  BASX 141,466  143,269              Total intangible assets and goodwill $ 144,695  $ 146,498

v3.23.2

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 45,682	$ 15,946	$ 82,496	$ 34,005

v3.23.2

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		The following table describes contracts, instructions or written plans for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). There were no non-Rule 10b5-1 trading arrangements entered into during the quarter ended June 30, 2023. Name and Title of Director or Officer Date of Adoption of Arrangement Duration of the Arrangement Aggregate Number of Securities to be Purchased or Sold Pursuant to the Arrangement Stephen E. Wakefield November 23, 2022 Terminated May 17, 2023 95,788 Vice President and Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	true
Non-Rule 10b5-1 Arrangement Terminated	false
Stephen E. Wakefield [Member]
Trading Arrangements, by Individual
Name	Stephen E. Wakefield
Title	Vice President and Chief Operating Officer
Adoption Date	November 23, 2022
Termination Date	Terminated May 17, 2023
Arrangement Duration	175 days
Aggregate Available	95,788	95,788

v3.23.2

General (Policies)	6 Months Ended
	Jun. 30, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
Use of Estimates	Use of Estimates   The preparation of 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, inventory valuation, inventory reserves, warranty accrual, medical insurance accrual, income taxes, useful lives of property, plant, and equipment, estimated future use of leased property, share-based compensation, business combinations, revenue percentage of completion and estimated costs to complete. Actual results could differ materially from those estimates. Inflation and Labor Market In 2022 and continuing into 2023, we have witnessed increases in our raw material and component prices. Due to our favorable liquidity position, we continue to make strategic purchases of materials when we see opportunities. We continue to manage the increase in the cost of raw materials through price increases for our products. We have also experienced supply chain challenges related to specific manufacturing parts, which we have managed through our strong vendor relationships as well as expanding our list of vendors. Additionally, we continue to experience challenges in a tight labor market, especially the hiring of both skilled and unskilled production labor. We have implemented the following wage increases to remain competitive and to attract and retain employees: •In March 2022, we awarded annual merit raises for an overall 3.0% increase to wages. •In October 2022, we implemented a cost of living increase of 3.5% in place for all employees below the Senior Leadership Team ("SLT") level. •In March 2023, we awarded annual merit raises for an overall 3.9% increase to wages. We will continue to implement human resource initiatives to retain and attract labor to further increase production capacity. Beginning in 2023, initiatives included changing our employee paid time off policy, historically awarded in arrears at the beginning of each quarter, to accrue ratably over each pay period. Additionally, we enhanced our benefits for short-term disability, life insurance, paid parental leave, and paid military leave. Despite efforts to mitigate the impact of inflation, supply chain issues and the tight labor market, future disruptions, while temporary, could negatively impact our consolidated financial position, results of operations and cash flows.
Fair Value Measurements	Fair Value Measurements The carrying amounts of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of the items. The carrying amount of the Company’s revolving line of credit, and other payables, approximate their fair values either due to their short term nature, the variable rates associated with the debt or based on current rates offered to the Company for debt with similar characteristics. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: •Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. •Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. •Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets, contingent consideration, and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Definite-Lived Intangible Assets Our definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations. We amortize our definite-lived intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.  Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years
Intangible Assets	Definite-Lived Intangible AssetsOur definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations. We amortize our definite-lived intangible assets on a straight-line basis over the estimated useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.
Goodwill	Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill and indefinite-lived intangible assets are not amortized, but instead are evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. The changes in the carrying amount of goodwill were as follows: Six Months Ended June 30, 2023 2022 (in thousands) Balance, beginning of period $ 81,892  $ 85,727  Additions due to acquisitions —  —  Decreases due to business combination revisions1 —  (3,835) Balance, end of period $ 81,892  $ 81,892    1 Revisions related to the December 2021 acquisition of BASX.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed or included within the Company's Annual Report on Form 10-K for the year ended December 31, 2022, were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto.

v3.23.2

General (Tables)	6 Months Ended
	Jun. 30, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
Schedule of Intangible Assets	Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Our intangible assets consist of the following:   June 30, 2023 December 31, 2022 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295  $ 6,295  Customer relationships 47,547  47,547  Less:  Accumulated amortization (5,610) (3,807)                Total, net 48,232  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 62,803  $ 64,606
Schedule of Goodwill	The changes in the carrying amount of goodwill were as follows: Six Months Ended June 30, 2023 2022 (in thousands) Balance, beginning of period $ 81,892  $ 85,727  Additions due to acquisitions —  —  Decreases due to business combination revisions1 —  (3,835) Balance, end of period $ 81,892  $ 81,892    1 Revisions related to the December 2021 acquisition of BASX.

v3.23.2

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations. Three Months Ended June 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 196,065  $ —  $ —  $ 196,065  Condensing units 61  11,329  —  11,390  Air handlers —  12,610  2,600  15,210  Outdoor mechanical rooms —  61  —  61  Cleanroom systems —  —  17,086  17,086  Data center cooling solutions —  1,794  15,877  17,671  Water-source heat pumps 398  3,086  —  3,484  Part sales 15,963  —  243  16,206  Other1 5,727  1,201  (144) 6,784  $ 218,214  $ 30,081  $ 35,662  $ 283,957  Three Months Ended June 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 138,616  $ —  $ —  $ 138,616  Condensing units —  11,949  —  11,949  Air handlers —  11,540  2,945  14,485  Outdoor mechanical rooms —  260  —  260  Cleanroom systems —  —  8,246  8,246  Data center cooling solutions —  —  12,837  12,837  Water-source heat pumps 1,876  1,798  —  3,674  Part sales 13,857  —  331  14,188  Other1 3,132  1,207  220  4,559  $ 157,481  $ 26,754  $ 24,579  $ 208,814   1 Other sales include freight, extended warranties and miscellaneous revenue. Six Months Ended June 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 376,091  $ —  $ —  $ 376,091  Condensing units 61  26,607  —  26,668  Air handlers —  24,831  5,638  30,469  Outdoor mechanical rooms 208  212  —  420  Cleanroom systems —  —  29,708  29,708  Data center cooling solutions —  3,240  30,353  33,593  Water-source heat pumps 3,128  6,166  —  9,294  Part sales 29,867  1  491  30,359  Other1 10,861  2,436  11  13,308  $ 420,216  $ 63,493  $ 66,201  $ 549,910  Six Months Ended June 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 260,322  $ —  $ —  $ 260,322  Condensing units 242  20,925  —  21,167  Air handlers —  20,978  4,284  25,262  Outdoor mechanical rooms 554  370  —  924  Cleanroom systems —  —  16,285  16,285  Data center cooling solutions —  —  23,705  23,705  Water-source heat pumps 4,862  4,151  —  9,013  Part sales 24,073  —  331  24,404  Other1 7,295  2,265  943  10,503  $ 297,348  $ 48,689  $ 45,548  $ 391,585   1 Other sales include freight, extended warranties and miscellaneous revenue. Due to the highly customized nature of many of the Company’s products and each product not having an alternative use to the Company without significant costs to the Company, the Company recognizes revenue over time as progress is made toward satisfying the performance obligations of each contract. The Company has formal cancellation policies and generally does not accept returns on these units. As a result, many of the Company’s products do not have an alternative use and therefore, for these products we recognize revenue over the time it takes to produce the unit. Contract costs include direct materials, direct labor, installation, freight and delivery, commissions and royalties. Other costs not related to contract performance, such as indirect labor and materials, small tools and supplies, operating expenses, field rework and back charges are charged to expense as incurred. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income, and are estimated and recognized by the Company throughout the life of the contract. The aggregate of costs incurred and income recognized on uncompleted contracts in excess of billings is shown as a contract asset within our consolidated balance sheets, and the aggregate of billings on uncompleted contracts in excess of related costs incurred and income recognized is shown as a contract liability within our consolidated balance sheets. For all other products that are part sales or standardized units, the Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. As the primary performance obligation in such a contract is delivery of the requested manufactured equipment, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders. Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates. Historically, sales of our products were moderately seasonal with the peak period being May-October of each year due to timing of construction projects being directly related to warmer weather. However, in recent years, given the increases in demand of our product and increases in our backlog, sales have become more constant throughout the year. Product Warranties A provision is made for the estimated cost of maintaining product warranties to customers at the time the product is sold based upon historical claims experience by product line. The Company records a liability and an expense for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the liability and expense in the current year. The Company also sells extended warranties on parts for various lengths of time ranging from six months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period.

v3.23.2

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Lessee, Operating Lease, Liability, Maturity	The following table presents the balances by lease type: Balance Sheet Classification June 30, 2023 December 31, 2022 Operating Leases Right of use assets Right of use assets $ 7,378  $ 7,123  Lease liability, short-term Accrued liabilities $ 1,607  $ 1,254  Lease liability, long-term Other long-term liabilities $ 5,962  $ 5,993

v3.23.2

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Accounts Receivable	June 30, 2023 December 31, 2022   (in thousands) Accounts receivable $ 154,417  $ 127,635  Less:  Allowance for credit losses (306) (477) Total, net $ 154,111  $ 127,158
Allowance for Doubtful Accounts	Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Allowance for credit losses: (in thousands) Balance, beginning of period $ 421  $ 837  $ 477  $ 549  (Recoveries of) provisions for expected credit (115) (107) (171) 181  losses, net of adjustments Accounts receivable written off, net of recoveries —  (167) —  (167) Balance, end of period $ 306  $ 563  $ 306  $ 563

v3.23.2

Inventories (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories	The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows:   June 30, 2023 December 31, 2022   (in thousands) Raw materials $ 210,937  $ 194,159  Work in process 4,087  3,501  Finished goods 5,665  5,806  Total, gross 220,689  203,466  Less:  Allowance for excess and obsolete inventories (5,281) (4,527) Total, net $ 215,408  $ 198,939
Inventories (Allowance)	Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 4,748  $ 2,007  $ 4,527  $ 1,787  Provision for (recoveries of) excess and 794  (72) 1,458  148       obsolete inventories Inventories written off (261) (64) (704) (64) Balance, end of period $ 5,281  $ 1,871  $ 5,281  $ 1,871

v3.23.2

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Our intangible assets consist of the following:   June 30, 2023 December 31, 2022 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295  $ 6,295  Customer relationships 47,547  47,547  Less:  Accumulated amortization (5,610) (3,807)                Total, net 48,232  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 62,803  $ 64,606
Schedule of Amortization Expense	Amortization expense recorded in cost of sales is as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Amortization expense $ 901  $ 901  $ 1,803  $ 1,796

v3.23.2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Supplemental disclosures: (in thousands) Interest paid $ 1,506  $ 418  $ 2,627  $ 533  Income taxes paid $ 33,471  $ 10,805  $ 33,643  $ 10,981  Non-cash investing and financing activities:     Non-cash capital expenditures $ 1,205  $ 221  $ 1,571  $ 679  Dividends declared $ —  $ 10,096  $ —  $ 10,096

v3.23.2

Warranties (Tables)	6 Months Ended
	Jun. 30, 2023
Guarantees [Abstract]
Warranty	Changes in the warranty accrual are as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Warranty accrual: (in thousands) Balance, beginning of period $ 16,209  $ 13,707  $ 15,682  $ 13,769  Payments made (2,435) (1,679) (4,316) (2,898) Warranty expense 3,126  2,353  5,534  3,510  Balance, end of period $ 16,900  $ 14,381  $ 16,900  $ 14,381

v3.23.2

Accrued Liabilities and Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities were comprised of the following:   June 30, 2023 December 31, 2022   (in thousands) Warranty $ 16,900  $ 15,682  Due to representatives 17,282  15,545  Payroll 15,190  11,901  Profit sharing 6,087  5,451  Workers' compensation 399  367  Medical self-insurance 1,536  1,178  Customer prepayments 24,510  3,750  Donations, short-term 390  637  Accrued income taxes —  12,472  Employee vacation time 9,726  6,329  Lease liability, short-term 1,607  1,254  Property taxes 1,722  —  Extended warranties, short-term 2,589  1,330  Other 3,263  2,734  Total $ 101,201  $ 78,630
Schedule of Other Long-Term Liabilities	Other long-term liabilities were comprised of the following:     June 30, 2023 December 31, 2022   (in thousands) Lease liability $ 5,962  $ 5,993  Extended warranties 4,806  4,539  Donations and other 596  976  Total $ 11,364  $ 11,508

v3.23.2

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision (benefit) for income taxes consists of the following:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022   (in thousands) Current $ 13,037  $ 5,277  $ 18,472  $ 9,086  Deferred (5,359) (1,100) (4,438) (127)      Income tax provision $ 7,678  $ 4,177  $ 14,034  $ 8,959
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Federal statutory rate 21.0  % 21.0  % 21.0  % 21.0  % State income taxes, net of Federal benefit 4.6  6.3  4.4  4.5  Excess tax benefits related to share-based compensation (Note 12) (3.8) (1.0) (6.0) (1.7) Return to provision —  (1.2) (0.1) (0.6) Research and development credits (1.2) (1.5) (1.3) (1.2) Change in valuation allowance (Oklahoma Investment Credit) (5.8) —  (3.2) —  Other (0.4) (2.8) (0.3) (1.1)      Effective tax rate 14.4  % 20.8  % 14.5  % 20.9  %

v3.23.2

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Assumptions	The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the six months ended June 30, 2023 and 2022 using a Black Scholes-Merton Model:   Six months ended   June 30, 2023 June 30, 2022 Directors and SLT1:     Expected (annual) dividend rate $0.48 $0.38 Expected volatility 37.89% 35.95% Risk-free interest rate 4.39% 2.17% Expected life (in years) 4.0 4.0 Employees:     Expected (annual) dividend rate $0.48 $0.38 Expected volatility 38.52% 37.29% Risk-free interest rate 4.40% 2.11% Expected life (in years) 3.0 3.0 1 SLT consists of officers and key members of management. The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the six months ended June 30, 2023 and 2022 using a Monte Carlo Model:   Six months ended   June 30, 2023 June 30, 2022   Expected (annual) dividend rate $0.48 $0.38 Expected volatility 32.71% 37.60% Risk-free interest rate 4.66% 2.00% Expected life (in years) 2.8 2.8
Summary of Stock Options Outstanding	The following is a summary of stock options vested and exercisable as of June 30, 2023:   Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $ 20.92  - $ 41.37  1,048,962  4.79 $ 37.06  $ 60,579  $ 42.42  - $ 55.30  364,787  6.99 46.34  17,682  $ 55.50  - $ 97.89  137,879  7.66 72.62  3,060  Total 1,551,628  5.56 $ 42.40  $ 81,321
Summary of Stock Option Activity	A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2022 3,040,347  $ 45.20  Granted 213,164  91.49  Exercised (532,830) 43.62  Forfeited or Expired (38,727) 51.88  Outstanding at June 30, 2023 2,681,954  $ 49.09  Exercisable at June 30, 2023 1,551,628  $ 42.40
Summary of Unvested Restricted Stock Awards	A summary of the unvested restricted stock awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 144,826  $ 50.00  Granted 46,492  89.26  Vested (60,373) 48.67  Forfeited (1,112) 56.35  Unvested at June 30, 2023 129,833  $ 64.62
Schedule of Nonvested Key Employee Award Activity	A summary of the unvested Key Employee Awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 26,599  $ 80.18  Granted —  —  Vested —  —  Forfeited —  —  Unvested at June 30, 2023 26,599  $ 80.18
Schedule of Nonvested Performance-based Units Activity	A summary of the unvested PSUs is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 62,659  $ 54.92  Granted 38,759  126.61  Vested —  —  Forfeited —  —  Unvested at June 30, 20231 101,418  $ 82.32  1Consists of 14,817 PSUs cliff vesting December 31, 2023, 47,842 PSUs cliff vesting December 31, 2024, and 38,759 PSUs cliff vesting December 31, 2025.
Summary of Share-Based Compensation Expense	A summary of share-based compensation is as follows: Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Grant date fair value of awards during the period: (in thousands) Options $ 445  $ 650  $ 5,118  $ 5,499  PSUs 1,666  219  4,907  2,081  Restricted stock 1,244  1,018  4,150  3,155  Total $ 3,355  $ 1,887  $ 14,175  $ 10,735  Share-based compensation expense: Options $ 2,311  $ 2,339  $ 4,376  $ 4,379  PSUs 716  292  1,083  477  Restricted stock 1,024  843  1,850  1,522  Key employee awards 253  322  514  530  Total $ 4,304  $ 3,796  $ 7,823  $ 6,908  Income tax benefit related to share-based compensation: Options $ 1,840  $ 198  $ 5,161  $ 491  Restricted stock 199  9  664  228  Total $ 2,039  $ 207  $ 5,825  $ 719

v3.23.2

Employee Benefits (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of Contributions Made to Defined Contribution Plan	The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 3,408  $ 3,273  $ 8,667  $ 6,579
Schedule of Profit Sharing Bonus Plan	We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit from AAON Oklahoma and AAON Coil Products is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees of AAON Oklahoma or AAON Coil Products who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. BASX has a separate employee incentive program (EIP) under which 5% of BASX's pre-tax profit, plus certain add backs, is paid ratably to eligible employees based on days-of-pay during the fiscal year. Eligible employees are regular full-time and part-time employees who have worked during the year and are still employed when the EIP payment is made following the end of the fiscal year, excluding members of BASX's senior leadership team and any employee paid commissions or royalties. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 5,952  $ 2,146  $ 10,818  $ 4,815
Schedule of Employee Medical Plan	At AAON Oklahoma and AAON Coil Products, we self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating AAON Oklahoma and AAON Coil Products employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles. BASX is insured for healthcare coverage through a third party. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company contributes certain amounts for BASX's employees enrolled in a high deductible plan to a qualified health savings account to assist employees with health insurance plan deductibles. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Medical premium payments $ 4,132  $ 2,043  $ 6,800  $ 3,989  Health saving account contributions 1,198  964  2,258  1,903

v3.23.2

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 54,293,127  53,095,286  54,175,682  52,992,439  Effect of dilutive shares related to stock based compensation1 1,353,260  566,590  1,334,800  747,998  Effect of dilutive shares related to contingent consideration2 —  —  141,850  204,179  Diluted weighted average shares 55,646,387  53,661,876  55,652,332  53,944,616  Earnings per share:     Basic $ 0.84  $ 0.30  $ 1.52  $ 0.64  Dilutive $ 0.82  $ 0.30  $ 1.48  $ 0.63  Anti-dilutive shares:     Shares 231,579  879,554  175,936  658,595  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15) The following table sets forth the pro forma computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022: (unaudited)   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 81,439,691  79,642,930  81,263,523  79,488,659  Effect of dilutive shares related to stock based compensation1 2,029,890  849,885  2,002,199  1,121,997  Effect of dilutive shares related to contingent consideration2 —  —  212,776  306,269  Diluted weighted average shares 83,469,581  80,492,815  83,478,498  80,916,925  Earnings per share:     Basic $ 0.56  $ 0.20  $ 1.02  $ 0.43  Dilutive $ 0.55  $ 0.20  $ 0.99  $ 0.42  Anti-dilutive shares:     Shares 347,368  1,319,331  263,905  987,893  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)

v3.23.2

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of Market Repurchase	Our open market repurchase programs are as follows: Effective Date Authorized Repurchase $ Expiration Date March 13, 2020 $20 million November 9, 2022 November 3, 2022 $50 million ** 1 1 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board.
Schedule of Share Repurchases	Our repurchase activity is as follows: Six Months Ended June 30, 2023 June 30, 2022 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market —  $ —  $ —  —  $ —  $ —  401(k) —  —  —  103,936  5,913  56.89  Employees 13,083  1,162  88.82  16,183  953  58.89  Total 13,083  $ 1,162  $ 88.82  120,119  $ 6,866  $ 57.16  Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to June 30, 2023 (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,327,367  $ 81,616  $ 18.86  401(k) 8,308,368  171,789  20.68  Directors and employees 2,058,038  24,522  11.92  Total 14,693,773  $ 277,927  $ 18.91
Schedule of Dividends Payable	Our recent cash dividends are as follows: Declaration Date1 Record Date Payment Date Dividend per Share  Annualized Dividend per Share May 18, 2022 June 3, 2022 July 1, 2022 $0.19 $0.38 November 8, 2022 November 28, 2022 December 16, 2022 $0.24 $0.48 March 1, 2023 March 13, 2023 March 31, 2023 $0.12 $0.48 May 18, 2023 June 9, 2023 June 30, 2023 $0.12 $0.48 1 Effective with the cash dividend declared on March 1, 2023 (paid on March 31, 2023), the Company moved from semi-annual cash dividends to quarterly cash dividends.
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 54,293,127  53,095,286  54,175,682  52,992,439  Effect of dilutive shares related to stock based compensation1 1,353,260  566,590  1,334,800  747,998  Effect of dilutive shares related to contingent consideration2 —  —  141,850  204,179  Diluted weighted average shares 55,646,387  53,661,876  55,652,332  53,944,616  Earnings per share:     Basic $ 0.84  $ 0.30  $ 1.52  $ 0.64  Dilutive $ 0.82  $ 0.30  $ 1.48  $ 0.63  Anti-dilutive shares:     Shares 231,579  879,554  175,936  658,595  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15) The following table sets forth the pro forma computation of basic and diluted earnings per share for the three and six months ended June 30, 2023 and 2022: (unaudited)   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 45,682  $ 15,946  $ 82,496  $ 34,005  Denominator:     Basic weighted average shares 81,439,691  79,642,930  81,263,523  79,488,659  Effect of dilutive shares related to stock based compensation1 2,029,890  849,885  2,002,199  1,121,997  Effect of dilutive shares related to contingent consideration2 —  —  212,776  306,269  Diluted weighted average shares 83,469,581  80,492,815  83,478,498  80,916,925  Earnings per share:     Basic $ 0.56  $ 0.20  $ 1.02  $ 0.43  Dilutive $ 0.55  $ 0.20  $ 0.99  $ 0.42  Anti-dilutive shares:     Shares 347,368  1,319,331  263,905  987,893  1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12) 2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)

v3.23.2

Related Parties (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following is a summary of transactions and balances with related parties:   Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 (in thousands) Sales to affiliates $ 2,619  $ 2,327  $ 3,764  $ 3,079  Payments to affiliates 390  639  782  1,003  June 30, 2023 December 31, 2022 (in thousands) Due from affiliates $ 559  $ 432  Due to affiliates 319  —  The nature of our related party transactions is as follows: •The Company sells units to an entity owned by a member of the CEO/President's immediate family. This entity is also one of the Company’s Representatives and as such, the Company makes payments to the entity for third party products. •The Company purchases some supplies from entities controlled by two of the Company’s board members and a member of the Company's executive management team. •The Company periodically makes part sales and makes payments to a board member related to a consulting agreement. •The Company periodically rents space partially owned by the CEO/President for various Company meetings. •From December 10, 2021 through May 31, 2022, the Company leased a manufacturing and office facility in Redmond, Oregon from an entity in which certain members of BASX management have an ownership interest. This facility was purchased 100% by the Company on May 31, 2022.

v3.23.2

Segments (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The Gross Profit amounts shown below are presented after elimination entries. Three Months Ended Six Months Ended   June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net Sales (in thousands) AAON Oklahoma      External sales $ 218,214  $ 157,481  $ 420,216  $ 297,348       Inter-segment sales 1,205  770  2,699  1,159  AAON Coil Products      External sales 30,081  26,754  63,493  48,689       Inter-segment sales 9,499  8,093  16,816  16,010  BASX External sales 35,662  24,579  66,201  45,548  Inter-segment sales 1,130  —  1,500  —  Eliminations (11,834) (8,863) (21,015) (17,169)              Net sales $ 283,957  $ 208,814  $ 549,910  $ 391,585    Gross Profit AAON Oklahoma $ 75,379  $ 31,737  $ 137,229  $ 65,573  AAON Coil Products 7,483  8,474  14,641  15,780  BASX 11,156  7,165  19,302  12,087              Gross profit $ 94,018  $ 47,376  $ 171,172  $ 93,440  June 30, 2023 December 31, 2022 Long-lived assets (in thousands) AAON Oklahoma $ 244,762  $ 213,731  AAON Coil Products 75,422  68,013  BASX 40,045  35,578              Total long-lived assets $ 360,229  $ 317,322  Intangible assets and goodwill AAON Oklahoma $ 3,229  $ 3,229  AAON Coil Products —  —  BASX 141,466  143,269              Total intangible assets and goodwill $ 144,695  $ 146,498

v3.23.2

General (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) numberOfVIE	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) numberOfVIE	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Oct. 31, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of variable interest entities with directed activities | numberOfVIE	2		2
Percent on overall increase in wages	3.90%	3.00%	3.90%	3.00%
Percent of cost of living increase						3.50%
Provision for excess and obsolete inventories, net of write-offs			$ 1,458	$ 148
Intangible assets, net	$ 62,803		62,803		$ 64,606
Amortization of intangible assets	901	$ 901	1,803	1,796
Goodwill	$ 81,892		81,892		$ 81,892
Finite-Lived Intangible Assets [Line Items]
Provision for excess and obsolete inventories, net of write-offs			1,458	148
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization			(21,236)	(16,300)
Provision for excess and obsolete inventories, net of write-offs			$ 1,458	148
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Useful life	30 years		30 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	14 years		14 years
Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization				$ 1,800

v3.23.2

General - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Goodwill [Roll Forward]
Balance, beginning of period	$ 81,892	$ 85,727
Additions due to acquisitions	0	0
Decreases due to business combination revisions	0	(3,835)
Balance, end of period	$ 81,892	$ 81,892

v3.23.2

Revenue Recognition - Disaggregated Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 283,957	$ 208,814	$ 549,910	$ 391,585
AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	218,214	157,481	420,216	297,348
AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	30,081	26,754	63,493	48,689
BasX
Disaggregation of Revenue [Line Items]
Net sales	35,662	24,579	66,201	45,548
Rooftop units
Disaggregation of Revenue [Line Items]
Net sales	196,065	138,616	376,091	260,322
Rooftop units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	196,065	138,616	376,091	260,322
Rooftop units | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Rooftop units | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Condensing units
Disaggregation of Revenue [Line Items]
Net sales	11,390	11,949	26,668	21,167
Condensing units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	61	0	61	242
Condensing units | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	11,329	11,949	26,607	20,925
Condensing units | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air handlers
Disaggregation of Revenue [Line Items]
Net sales	15,210	14,485	30,469	25,262
Air handlers | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air handlers | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	12,610	11,540	24,831	20,978
Air handlers | BasX
Disaggregation of Revenue [Line Items]
Net sales	2,600	2,945	5,638	4,284
Outdoor mechanical rooms
Disaggregation of Revenue [Line Items]
Net sales	61	260	420	924
Outdoor mechanical rooms | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	208	554
Outdoor mechanical rooms | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	61	260	212	370
Outdoor mechanical rooms | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems
Disaggregation of Revenue [Line Items]
Net sales	17,086	8,246	29,708	16,285
Cleanroom systems | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems | BasX
Disaggregation of Revenue [Line Items]
Net sales	17,086	8,246	29,708	16,285
Data center cooling solutions
Disaggregation of Revenue [Line Items]
Net sales	17,671	12,837	33,593	23,705
Data center cooling solutions | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Data center cooling solutions | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	1,794	0	3,240	0
Data center cooling solutions | BasX
Disaggregation of Revenue [Line Items]
Net sales	15,877	12,837	30,353	23,705
Water-source heat pumps
Disaggregation of Revenue [Line Items]
Net sales	3,484	3,674	9,294	9,013
Water-source heat pumps | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	398	1,876	3,128	4,862
Water-source heat pumps | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	3,086	1,798	6,166	4,151
Water-source heat pumps | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Part sales
Disaggregation of Revenue [Line Items]
Net sales	16,206	14,188	30,359	24,404
Part sales | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	15,963	13,857	29,867	24,073
Part sales | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	1	0
Part sales | BasX
Disaggregation of Revenue [Line Items]
Net sales	243	331	491	331
Other
Disaggregation of Revenue [Line Items]
Net sales	6,784	4,559	13,308	10,503
Other | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	5,727	3,132	10,861	7,295
Other | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	1,201	1,207	2,436	2,265
Other | BasX
Disaggregation of Revenue [Line Items]
Net sales	$ (144)	$ 220	$ 11	$ 943

v3.23.2

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Payments to representatives	$ 13.0	$ 11.4	$ 26.3	$ 17.9

v3.23.2

Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Right of use assets	$ 7,378	$ 7,123
Lease liability, short-term	1,607	1,254
Lease liability, long-term	$ 5,962	$ 5,993

v3.23.2

Leases - Additional Information (Details) - squareFoot	Jul. 28, 2023	Jun. 30, 2023	Nov. 30, 2022	Sep. 29, 2022
MISSOURI
Lessee, Lease, Description [Line Items]
Number of square feet		86,000		51,000
OKLAHOMA
Lessee, Lease, Description [Line Items]
Number of square feet			198,000
OREGON | Subsequent Event
Lessee, Lease, Description [Line Items]
Number of square feet	72,000
Lease term	5 years
Industrial Property
Lessee, Lease, Description [Line Items]
Number of square feet		31,000
Office Building
Lessee, Lease, Description [Line Items]
Number of square feet		4,000

v3.23.2

Accounts Receivable - Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 154,417	$ 127,635
Less:  Allowance for credit losses	(306)	(477)
Total, net	$ 154,111	$ 127,158

v3.23.2

Accounts Receivable - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 421	$ 837	$ 477	$ 549
Provisions for (recoveries of) for expected credit losses, net of adjustments	(115)	(107)	(171)	181
Accounts receivable written off, net of recoveries	0	167	0	167
Balance, end of period	$ 306	$ 563	$ 306	$ 563

v3.23.2

Inventories - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 210,937		$ 194,159
Work in process	4,087		3,501
Finished goods	5,665		5,806
Total, gross	220,689		203,466
Less: Allowance for excess and obsolete inventories	(5,281)	$ (4,748)	(4,527)	$ (1,871)	$ (2,007)	$ (1,787)
Total, net	$ 215,408		$ 198,939

v3.23.2

Inventories - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Inventory Valuation Reserves [Roll Forward]
Balance, beginning of period	$ 4,748	$ 2,007	$ 4,527	$ 1,787
Provision (recovery of) for excess and obsolete inventories	794	(72)	1,458	148
Inventories written off	(261)	(64)	(704)	(64)
Balance, end of period	$ 5,281	$ 1,871	$ 5,281	$ 1,871

v3.23.2

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Less:  Accumulated amortization	$ (5,610)		$ (5,610)		$ (3,807)
Total, net	48,232		48,232		50,035
Indefinite-lived intangible assets	14,571		14,571		14,571
Total intangible assets, net	62,803		62,803		64,606
Amortization of intangible assets	901	$ 901	1,803	$ 1,796
2022	3,600		3,600
2023	3,600		3,600
2024	3,600		3,600
2025	3,600		3,600
2026	3,600		3,600
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	6,295		6,295		6,295
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 47,547		$ 47,547		$ 47,547

v3.23.2

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Supplemental disclosure:
Interest paid	$ 1,506	$ 418	$ 2,627	$ 533
Income taxes paid	33,471	10,805	33,643	10,981
Non-cash investing and financing activities:
Non-cash capital expenditures	1,205	221	1,571	679
Dividends declared	$ 0	$ 10,096	$ 0	$ 10,096

v3.23.2

Warranties - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Product Information [Line Items]
Product warranty accrual, minimum length	1 year
Product warranty accrual, maximum length	25 years
Parts
Product Information [Line Items]
Product warranty accrual, minimum length	18 months

v3.23.2

Warranties - Change in Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 16,209	$ 13,707	$ 15,682	$ 13,769
Payments made	(2,435)	(1,679)	(4,316)	(2,898)
Provisions	3,126	2,353	5,534	3,510
Balance, end of period	$ 16,900	$ 14,381	$ 16,900	$ 14,381

v3.23.2

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities
Warranty	$ 16,900	$ 15,682
Due to representatives	17,282	15,545
Payroll	15,190	11,901
Profit sharing	6,087	5,451
Workers' compensation	399	367
Medical self-insurance	1,536	1,178
Customer prepayments	24,510	3,750
Donations, short-term	390	637
Accrued income taxes	0	12,472
Employee vacation time	9,726	6,329
Lease liability, short-term	1,607	1,254
Property taxes	1,722	0
Extended warranties, short-term	2,589	1,330
Other	3,263	2,734
Total	101,201	78,630
Other Long-Term Liabilities
Lease liability	5,962	5,993
Extended warranties	4,806	4,539
Donations and other	596	976
Total	$ 11,364	$ 11,508

v3.23.2

Revolving Credit Facility (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Apr. 25, 2023	Dec. 31, 2022	May 27, 2022	Nov. 24, 2021	Oct. 24, 2019
Line of Credit Facility [Line Items]
Revolving credit facility, long-term	$ 78,536,000		$ 78,536,000			$ 71,004,000
Ratio of total liability to net worth	0.37		0.37
Maximum ratio of total liability to net worth for compliance	3		3
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings					$ 23,000,000			$ 100,000,000	$ 23,000,000
Option to increase maximum borrowing capacity							$ 200,000,000
Standby letter of credit	$ 300,000		$ 300,000
Borrowings available under the revolving credit facility	$ 121,200,000		$ 121,200,000
Debt, weighted average interest rate,	6.30%	1.90%	6.20%	1.70%
Revolving Credit Facility | Base Rate
Line of Credit Facility [Line Items]
Stated percentage	0.50%		0.50%
Revolving Credit Facility | SOFR
Line of Credit Facility [Line Items]
Stated percentage	1.00%		1.00%
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Applicable margin	1.25%		1.25%
Commitment fee percentage			0.10%
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Applicable margin	1.75%		1.75%
Commitment fee percentage			0.20%
Letter of Credit | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage			1.25%
Letter of Credit | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage			1.75%

v3.23.2

Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Current	$ 13,037	$ 5,277	$ 18,472	$ 9,086
Deferred	(5,359)	(1,100)	(4,438)	(127)
Income tax provision	$ 7,678	$ 4,177	$ 14,034	$ 8,959

v3.23.2

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net of Federal benefit	4.60%	6.30%	4.40%	4.50%
Excess tax benefits related to share-based compensation (Note 12)	(3.80%)	(1.00%)	(6.00%)	(1.70%)
Return to provision	0.00%	(1.20%)	(0.10%)	(0.60%)
Research and development credits	(1.20%)	(1.50%)	(1.30%)	(1.20%)
Change in valuation allowance (Oklahoma Investment Credit)	(5.80%)	0.00%	(3.20%)	0.00%
Other	(0.40%)	(2.80%)	(0.30%)	(1.10%)
Effective tax rate	14.40%	20.80%	14.50%	20.90%

v3.23.2

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Tax Credit Carryforward [Line Items]
Share-based payment arrangement, expense, tax benefit	$ 2,039	$ 207	$ 5,825	$ 719
Expected effective income tax rate for the year			24.10%
Income tax benefit	(7,678)	$ (4,177)	$ (14,034)	$ (8,959)
Investment Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax credit carryforward	4,900		4,900
Income tax benefit	$ 3,100		$ 3,100

v3.23.2

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended
	May 24, 2016	May 22, 2007	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	May 12, 2020	May 15, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	8,900,000
Total intrinsic value of options exercised during period				$ 25,300	$ 3,500
Cash received from options exercised during period				$ 23,244	$ 6,385
Award requisite service period				1 year
2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	400,000	3,300,000
Exercise price of shares granted may not be less than fair market value (percentage)		100.00%
2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	3,400,000					2,500,000	2,600,000
Exercise price of shares granted may not be less than fair market value (percentage)	100.00%
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 5,700
Weighted average recognition period (in years)				2 years
Performance Award | 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period				3 years
Performance Award | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock				0.00%
Performance Award | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock				200.00%
Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 13,100
Weighted average recognition period (in years)				1 year 7 months 6 days
Restricted Stock | 2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 6,600
Weighted average recognition period (in years)				1 year 9 months 18 days
Key Employee Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 500
Weighted average recognition period (in years)				6 months
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			20.00%	33.30%

v3.23.2

Share-Based Compensation - Summary of Assumptions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.48	$ 0.38
Expected volatility	32.71%	37.60%
Risk-free interest rate	4.66%	2.00%
Expected life	2 years 9 months 18 days	2 years 9 months 18 days
Directors and Senior Leadership Team
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.48	$ 0.38
Expected volatility	37.89%	35.95%
Risk-free interest rate	4.39%	2.17%
Expected life	4 years	4 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.48	$ 0.38
Expected volatility	38.52%	37.29%
Risk-free interest rate	4.40%	2.11%
Expected life	3 years	3 years

v3.23.2

Share-Based Compensation - Summary of Stock Options Outstanding (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares vested and exercisable (in shares) | shares	1,551,628
Options vested and exercisable weighted average remaining contractual life	5 years 6 months 21 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 42.40
Options vested and exercisable intrinsic value | $	$ 81,321
$8.17 - $41.37
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 20.92
Range of exercise prices, upper range (in dollars per share)	$ 41.37
Number of shares vested and exercisable (in shares) | shares	1,048,962
Options vested and exercisable weighted average remaining contractual life	4 years 9 months 14 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 37.06
Options vested and exercisable intrinsic value | $	$ 60,579
$42.42 - $65.24
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 42.42
Range of exercise prices, upper range (in dollars per share)	$ 55.30
Number of shares vested and exercisable (in shares) | shares	364,787
Options vested and exercisable weighted average remaining contractual life	6 years 11 months 26 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 46.34
Options vested and exercisable intrinsic value | $	$ 17,682
$65.29 - $79.81
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 55.50
Range of exercise prices, upper range (in dollars per share)	$ 97.89
Number of shares vested and exercisable (in shares) | shares	137,879
Options vested and exercisable weighted average remaining contractual life	7 years 7 months 28 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 72.62
Options vested and exercisable intrinsic value | $	$ 3,060

v3.23.2

Share-Based Compensation - Summary of Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	3,040,347
Granted (in shares) | shares	213,164
Exercised (in shares) | shares	(532,830)
Forfeited or Expired (in shares) | shares	(38,727)
Outstanding, end of period (in shares) | shares	2,681,954
Exercisable, end of period (in shares) | shares	1,551,628
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (weighted average exercise price) | $ / shares	$ 45.20
Granted (weighted average exercise price) | $ / shares	91.49
Exercised (weighted average exercise price) | $ / shares	43.62
Forfeited or Expired (weighted average exercise price) | $ / shares	51.88
Outstanding, end of period (weighted average exercise price) | $ / shares	49.09
Exercisable, end of period (weighted average exercise price) | $ / shares	$ 42.40

v3.23.2

Share-Based Compensation - Summary of Unvested Awards (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted Stock
Shares [Roll Forward]
Unvested, beginning of period (in shares)	144,826
Granted (in shares)	46,492
Vested (in shares)	(60,373)
Forfeited (in shares)	(1,112)
Unvested, end of period (in shares)	129,833
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 50.00
Granted (weighted average grant date fair value) | $ / shares	89.26
Vested (weighted average grant date fair value) | $ / shares	48.67
Forfeited (weighted average grant date fair value) | $ / shares	56.35
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 64.62
Performance Award
Shares [Roll Forward]
Unvested, beginning of period (in shares)	62,659
Granted (in shares)	38,759
Vested (in shares)	0
Forfeited (in shares)	0
Unvested, end of period (in shares)	101,418
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 54.92
Granted (weighted average grant date fair value) | $ / shares	126.61
Vested (weighted average grant date fair value) | $ / shares	0
Forfeited (weighted average grant date fair value) | $ / shares	0
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 82.32
Performance Award | Cliff Vesting December 31, 2023
Shares [Roll Forward]
Vested (in shares)	(14,817)
Performance Award | Cliff Vesting December 31, 2024
Shares [Roll Forward]
Vested (in shares)	(47,842)
Performance Award | Cliff Vesting December 31, 2025
Shares [Roll Forward]
Vested (in shares)	(38,759)
Key Employee Awards
Shares [Roll Forward]
Unvested, beginning of period (in shares)	26,599
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	0
Unvested, end of period (in shares)	26,599
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 80.18
Granted (weighted average grant date fair value) | $ / shares	0
Vested (weighted average grant date fair value) | $ / shares	0
Forfeited (weighted average grant date fair value) | $ / shares	0
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 80.18

v3.23.2

Share-Based Compensation - Summary of Unvested Restricted Stock Awards (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	144,826
Granted (in shares) | shares	46,492
Vested (in shares) | shares	(60,373)
Forfeited (in shares) | shares	(1,112)
Unvested, end of period (in shares) | shares	129,833
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 50.00
Granted (weighted average grant date fair value) | $ / shares	89.26
Vested (weighted average grant date fair value) | $ / shares	48.67
Forfeited (weighted average grant date fair value) | $ / shares	56.35
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 64.62

v3.23.2

Share-Based Compensation - Summary of Grant Date Fair Value of Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Grant date fair value of awards during the period:
Options	$ 445	$ 650	$ 5,118	$ 5,499
Performance Awards	1,666	219	4,907	2,081
Restricted stock	1,244	1,018	4,150	3,155
Total	3,355	1,887	14,175	10,735
Share-based compensation expense:
Options	2,311	2,339	4,376	4,379
PSUs	716	292	1,083	477
Restricted stock	1,024	843	1,850	1,522
Key employee awards	253	322	514	530
Total	4,304	3,796	7,823	6,908
Income tax benefit related to share-based compensation:
Options	1,840	198	5,161	491
Restricted stock	199	9	664	228
Total	$ 2,039	$ 207	$ 5,825	$ 719

v3.23.2

Employee Benefits (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Defined contribution employee automatic contribution, percent			6.00%
Administrative expense			$ 0	$ 0
Contributions, net of forfeitures, made to the defined contribution plan	$ 3,408,000	$ 3,273,000	$ 8,667,000	6,579,000
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			10.00%
Profit sharing bonus plan and employee incentive plan expense	5,952,000	2,146,000	$ 10,818,000	4,815,000
Medical premium payments	4,132,000	2,043,000	6,800,000	3,989,000
Health saving account contributions	$ 1,198,000	$ 964,000	$ 2,258,000	$ 1,903,000
BasX
Defined Benefit Plan Disclosure [Line Items]
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			5.00%
Effective January 1, 2016
Defined Benefit Plan Disclosure [Line Items]
Percent of match			175.00%
Defined contribution employer, maximum match percent			6.00%

v3.23.2

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 45,682	$ 15,946	$ 82,496	$ 34,005
Basic weighted average shares (in shares)	54,293,127	53,095,286	54,175,682	52,992,439
Effect of dilutive stock options and restricted stock (in shares)	1,353,260	566,590	1,334,800	747,998
Effect of dilutive shares related to contingent consideration (in shares)	0	0	141,850	204,179
Diluted weighted average shares (in shares)	55,646,387	53,661,876	55,652,332	53,944,616
Basic (in dollars per share)	$ 0.84	$ 0.30	$ 1.52	$ 0.64
Diluted (in dollars per share)	$ 0.82	$ 0.30	$ 1.48	$ 0.63
Anti-dilutive shares (in shares)	231,579	879,554	175,936	658,595

v3.23.2

Stockholders' Equity (Details) - USD ($)						3 Months Ended		6 Months Ended		121 Months Ended	164 Months Ended	180 Months Ended
	May 18, 2023	Mar. 01, 2023	Dec. 10, 2021	Nov. 08, 2018	May 18, 2018	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2020	Nov. 03, 2022	Mar. 13, 2020
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program, authorized amount													$ 50,000,000	$ 20,000,000
Stock repurchased during period (in shares)								13,083	120,119			14,693,773
Aggregate price of shares repurchased since inception								$ 1,162,000	$ 6,866,000		$ 277,927,000
Average price of shares repurchased since inception (per share)								$ 88.82	$ 57.16			$ 18.91
Cash dividends declared per common share (in dollars per share)						$ 0.12	$ 0.19	$ 0.24	$ 0.19
Annualized dividends paid per common share (in dollars per share)	$ 0.48	$ 0.48		$ 0.48	$ 0.38
Stock repurchased and retired						$ (132,000)	$ (2,784,000)	$ (1,162,000)	$ (6,866,000)
BasX, LLC
Schedule of Shareholders' Equity [Line Items]
Contingent consideration			$ 78,000,000
Equity interest issued (in shares)			1,040,000.00
Equity interests issuable (in dollars per share)			$ 0.004
Contingent liability			$ 60,000,000
Shares issued (in shares)								390,000	490,000
Dividend Declared
Schedule of Shareholders' Equity [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.12	$ 0.12		$ 0.24	$ 0.19
Open market
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								0	0	4,327,367
Aggregate price of shares repurchased since inception								$ 0	$ 0	$ 81,616,000
Average price of shares repurchased since inception (per share)								$ 0	$ 0	$ 18.86
401(k)
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								0	103,936			8,308,368
Aggregate price of shares repurchased since inception								$ 0	$ 5,913,000			$ 171,789,000
Average price of shares repurchased since inception (per share)								$ 0	$ 56.89			$ 20.68
Employees
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								13,083	16,183		2,058,038
Aggregate price of shares repurchased since inception								$ 1,162,000	$ 953,000		$ 24,522,000
Average price of shares repurchased since inception (per share)								$ 88.82	$ 58.89		$ 11.92

v3.23.2

Stockholders' Equity - Pro Forma Results of Stock Split (Details) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 07, 2023 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Aug. 16, 2023 shares
Schedule of Shareholders' Equity [Line Items]
Net income | $		$ 45,682	$ 15,946	$ 82,496	$ 34,005
Basic weighted average shares (in shares)		54,293,127	53,095,286	54,175,682	52,992,439
Effect of dilutive stock options and restricted stock (in shares)		1,353,260	566,590	1,334,800	747,998
Effect of dilutive shares related to contingent consideration (in shares)		0	0	141,850	204,179
Diluted (in shares)		55,646,387	53,661,876	55,652,332	53,944,616
Basic (in dollars per share) | $ / shares		$ 0.84	$ 0.30	$ 1.52	$ 0.64
Diluted (in dollars per share) | $ / shares		$ 0.82	$ 0.30	$ 1.48	$ 0.63
Anti-dilutive shares (in shares)		231,579	879,554	175,936	658,595
Subsequent Event
Schedule of Shareholders' Equity [Line Items]
Stock split, conversion ratio	1.5
Stock split, additional shares issued (in shares)						1
Stock split, original number of shares held (in shares)						2
Pro Forma
Schedule of Shareholders' Equity [Line Items]
Basic weighted average shares (in shares)		81,439,691	79,642,930	81,263,523	79,488,659
Effect of dilutive stock options and restricted stock (in shares)		2,029,890	849,885	2,002,199	1,121,997
Effect of dilutive shares related to contingent consideration (in shares)		0	0	212,776	306,269
Diluted (in shares)		83,469,581	80,492,815	83,478,498	80,916,925
Basic (in dollars per share) | $ / shares		$ 0.56	$ 0.20	$ 1.02	$ 0.43
Diluted (in dollars per share) | $ / shares		$ 0.55	$ 0.20	$ 0.99	$ 0.42
Anti-dilutive shares (in shares)		347,368	1,319,331	263,905	987,893
Pro Forma | Subsequent Event
Schedule of Shareholders' Equity [Line Items]
Impact of stock split (less than) | $	$ 100
Retained Earnings
Schedule of Shareholders' Equity [Line Items]
Net income | $		$ 45,682	$ 15,946	$ 82,496	$ 34,005

v3.23.2

New Market Tax Credit (Details) - USD ($)	Apr. 25, 2023	Oct. 24, 2019	Nov. 24, 2021
Subsidiary
Line of Credit Facility [Line Items]
Due to subsidiary	$ 23,800,000	$ 22,500,000
Investor
Line of Credit Facility [Line Items]
Loans receivable	$ 16,700,000	$ 15,900,000
Loans receivable, term	25 years	25 years
Loans receivable, interest rate	1.00%	1.00%
Proceeds from financing obligation, net of issuance costs	$ 16,700,000	$ 15,900,000
Interest from counterparty	5,700,000	6,500,000
Debt issuance costs	$ 400,000	$ 300,000
Loans and Leases Receivable, Gross, Compliance Period	7 years	7 years
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings	$ 23,000,000	$ 23,000,000	$ 100,000,000

v3.23.2

Commitments and Contingencies (Details) - USD ($) $ in Millions			3 Months Ended	6 Months Ended
	May 02, 2022	Jan. 24, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Apr. 27, 2022
Long-term Purchase Commitment [Line Items]
Damages sought		$ 48.6
Contractual obligation						$ 6.5
Payments	$ 3.0		$ 3.5
Payments to acquire properties				$ 0.0	$ 22.0

v3.23.2

Related Parties (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2022
Related Party Transaction [Line Items]
Net sales	$ 283,957	$ 208,814	$ 549,910	$ 391,585
Payments to affiliates	390	639	782	1,003
Due from affiliates	154,111		154,111		$ 127,158
Due to affiliates	32,210		32,210		45,513
Percentage of facility purchased						1
Affiliate
Related Party Transaction [Line Items]
Net sales	2,619	$ 2,327	3,764	$ 3,079
Due from affiliates	559		559		432
Due to affiliates	$ 319		$ 319		$ 0

v3.23.2

Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Net Sales	$ 283,957	$ 208,814	$ 549,910	$ 391,585
Gross Profit	94,018	47,376	171,172	93,440
Long-lived assets	360,229		360,229		$ 317,322
Goodwill	144,695		144,695		146,498
AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	218,214	157,481	420,216	297,348
AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	30,081	26,754	63,493	48,689
BasX
Segment Reporting Information [Line Items]
Net Sales	35,662	24,579	66,201	45,548
Operating Segments | AAON Oklahoma
Segment Reporting Information [Line Items]
Gross Profit	75,379	31,737	137,229	65,573
Long-lived assets	244,762		244,762		213,731
Goodwill	3,229		3,229		3,229
Operating Segments | AAON Coil Products
Segment Reporting Information [Line Items]
Gross Profit	7,483	8,474	14,641	15,780
Long-lived assets	75,422		75,422		68,013
Goodwill	0		0		0
Operating Segments | BasX
Segment Reporting Information [Line Items]
Gross Profit	11,156	7,165	19,302	12,087
Long-lived assets	40,045		40,045		35,578
Goodwill	141,466		141,466		$ 143,269
Inter-segment | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	1,205	770	2,699	1,159
Inter-segment | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	9,499	8,093	16,816	16,010
Inter-segment | BasX
Segment Reporting Information [Line Items]
Net Sales	1,130	0	1,500	0
Segment Reconciling Items | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	218,214	157,481	420,216	297,348
Segment Reconciling Items | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	30,081	26,754	63,493	48,689
Segment Reconciling Items | BasX
Segment Reporting Information [Line Items]
Net Sales	35,662	24,579	66,201	45,548
Consolidation, Eliminations
Segment Reporting Information [Line Items]
Net Sales	$ (11,834)	$ (8,863)	$ (21,015)	$ (17,169)

---