AAON AAON Inc

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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 five 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.

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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 nine months ended September 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.

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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:

			Nine Months Ended September 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.

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

			Three Months Ended September 30, 2023
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	221,417					$	—					$	—					$	221,417
Condensing units			—						7,636						—						7,636
Air handlers			—						9,862						7,558						17,420
Outdoor mechanical rooms			—						62						—						62
Cleanroom systems			—						—						5,355						5,355
Data center cooling solutions			—						3,284						25,726						29,010
Water-source heat pumps			—						3,898						—						3,898
Part sales			17,756						4						371						18,131
Other1			7,281						1,023						737						9,041
			$	246,454					$	25,769					$	39,747					$	311,970
			Three Months Ended September 30, 2022
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	154,171					$	—					$	—					$	154,171
Condensing units			—						12,720						—						12,720
Air handlers			—						14,380						2,211						16,591
Outdoor mechanical rooms			58						118						—						176
Cleanroom systems			—						—						15,283						15,283
Data center cooling solutions			—						—						14,884						14,884
Water-source heat pumps			3,236						2,445						—						5,681
Part sales			15,724						—						176						15,900
Other1			5,980						841						378						7,199
			$	179,169					$	30,504					$	32,932					$	242,605
1 Other sales include freight, extended warranties and miscellaneous revenue.

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			Nine Months Ended September 30, 2023
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	597,508					$	—					$	—					$	597,508
Condensing units			61						34,243						—						34,304
Air handlers			—						34,693						13,196						47,889
Outdoor mechanical rooms			208						274						—						482
Cleanroom systems			—						—						35,063						35,063
Data center cooling solutions			—						6,524						56,079						62,603
Water-source heat pumps			3,128						10,064						—						13,192
Part sales			47,623						5						862						48,490
Other1			18,142						3,459						748						22,349
			$	666,670					$	89,262					$	105,948					$	861,880
			Nine Months Ended September 30, 2022
			AAON Oklahoma						AAON Coil Products						BASX						Total
			(in thousands)
Rooftop units			$	414,493					$	—					$	—					$	414,493
Condensing units			242						33,645						—						33,887
Air handlers			—						35,358						6,495						41,853
Outdoor mechanical rooms			612						488						—						1,100
Cleanroom systems			—						—						31,568						31,568
Data center cooling solutions			—						—						38,589						38,589
Water-source heat pumps			8,098						6,596						—						14,694
Part sales			39,797						—						507						40,304
Other1			13,275						3,106						1,321						17,702
			$	476,517					$	79,193					$	78,480					$	634,190
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.

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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 $20.1 million and $10.8 million for the three months ended September 30, 2023 and 2022, respectively, and $46.4 million and $28.7 million for the nine months ended September 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						September 30, 2023						December 31, 2022
Operating Leases
Right of use assets						Right of use assets						$	12,252					$	7,123
Lease liability, short-term						Accrued liabilities						$	1,858					$	1,254
Lease liability, long-term						Other long-term liabilities						$	10,684					$	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.

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

 

			September 30, 2023						December 31, 2022
			(in thousands)
Accounts receivable			$	160,493					$	127,635
Less:  Allowance for credit losses			(385)						(477)
Total, net			$	160,108					$	127,158

 

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Allowance for credit losses:			(in thousands)
Balance, beginning of period			$	306					$	563					$	477					$	549
Provisions for (recoveries of) expected credit			79						119						(92)						300
losses, net of adjustments
Accounts receivable written off, net of recoveries			—						—						—						(167)
Balance, end of period			$	385					$	682					$	385					$	682

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:

			September 30, 2023						December 31, 2022
			(in thousands)
Raw materials			$	209,697					$	194,159
Work in process			4,379						3,501
Finished goods			5,219						5,806
Total, gross			219,295						203,466
Less:  Allowance for excess and obsolete inventories			(4,788)						(4,527)
Total, net			$	214,507					$	198,939

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Allowance for excess and obsolete inventories:			(in thousands)
Balance, beginning of period			$	5,281					$	1,871					$	4,527					$	1,787
Provision for (recoveries of) excess and			1,521						1,232						2,979						1,380
obsolete inventories
Inventories written off			(2,014)						(38)						(2,718)						(102)
Balance, end of period			$	4,788					$	3,065					$	4,788					$	3,065

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Our intangible assets consist of the following:

			September 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			(6,512)						(3,807)
Total, net			47,330						50,035
Indefinite-lived intangible assets
Trademarks			14,571						14,571
Total intangible assets, net			$	61,901					$	64,606

Amortization expense recorded in selling, general and administrative expenses is as follows:

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Amortization expense			$	902					$	902					$	2,705					$	2,698

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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Warranty accrual:			(in thousands)
Balance, beginning of period			$	16,900					$	14,381					$	15,682					$	13,769
Payments made			(3,337)						(2,196)						(7,653)						(5,094)
Warranty expense			4,248						3,046						9,782						6,556
Balance, end of period			$	17,811					$	15,231					$	17,811					$	15,231

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Accrued liabilities were comprised of the following:

			September 30, 2023						December 31, 2022
			(in thousands)
Warranty			$	17,811					$	15,682
Due to representatives			15,888						15,545
Payroll			18,105						11,901
Profit sharing			7,349						5,451
Workers' compensation			428						367
Medical self-insurance			1,745						1,178
Customer prepayments			1,462						3,750
Donations, short-term			419						637
Litigation settlement (Note 17)			7,500						—
Accrued income taxes			113						12,472
Employee vacation time			10,131						6,329
Lease liability, short-term			1,858						1,254
Property taxes			2,493						—
Extended warranties, short-term			2,909						1,330
Other			2,775						2,734
Total			$	90,986					$	78,630

Other long-term liabilities were comprised of the following:

 

			September 30, 2023						December 31, 2022
			(in thousands)
Lease liability			$	10,684					$	5,993
Extended warranties			5,009						4,539
Donations and other			554						976
Total			$	16,247					$	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 September 30, 2023 and December 31, 2022, we had $78.4 million and $71.0 million outstanding under the Revolver, respectively. We have two standby letters of credit totaling $2.3 million as of September 30, 2023. Borrowings available under the Revolver at September 30, 2023 were $119.3 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 6.5% and 6.3% for the three and nine months ended September 30, 2023, respectively, as compared to 3.5% and 2.5% for the three and nine months ended September 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 nine months ended September 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%.

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

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Current			$	14,892					$	8,763					$	33,364					$	17,849
Deferred			521						(436)						(3,917)						(563)
Income tax provision			$	15,413					$	8,327					$	29,447					$	17,286

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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Federal statutory rate			21.0		%				21.0		%				21.0		%				21.0		%
State income taxes, net of Federal benefit			3.4						5.0						4.0						4.7
Excess tax benefits related to share-based compensation (Note 12)			(0.8)						(1.5)						(3.9)						(1.6)
Return to provision			0.9						(0.4)						0.3						(0.5)
Research and development credits			(0.2)						(0.7)						(0.9)						(1.0)
Change in valuation allowance (Oklahoma Investment Credit)			—						—						(2.0)						—
Other			—						(0.1)						(0.1)						(0.7)
Effective tax rate			24.3		%				23.3		%				18.4		%				21.9		%

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 nine months ended September 30, 2023. As of September 30, 2023, we have investment tax credit carryforwards of approximately $3.8 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.

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As discussed in Note 15, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split.

On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 5.0 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 13.4 million shares, comprised of 5.1 million new shares provided for under the 2016 Plan, approximately 0.6 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 3.9 million shares that were approved by the stockholders on May 15, 2018, and an additional 3.8 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 nine months ended September 30, 2023 and 2022 using a Black Scholes-Merton Model:

			Nine months ended
			September 30, 2023						September 30, 2022
Directors and SLT1:
Expected (annual) dividend rate			$0.32						$0.25
Expected volatility			37.89%						36.00%
Risk-free interest rate			4.39%						2.21%
Expected life (in years)			4.0						4.0
Employees:
Expected (annual) dividend rate			$0.32						$0.25
Expected volatility			38.30%						37.38%
Risk-free interest rate			4.41%						2.20%
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.

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

 

Range of Exercise Prices												Number of Shares						Weighted Average Remaining Contractual Life (in years)						Weighted Average Exercise Price						Intrinsic Value (in thousands)
$	13.95		-			$	27.58					1,528,983						4.52						$	24.70					$	49,191
$	28.28		-			$	37.16					534,293						6.72						30.91						13,870
$	37.63		-			$	69.62					210,415						7.44						48.06						1,857
						Total						2,273,691						5.31						$	28.32					$	64,918

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

Stock Options			Shares						Weighted Average Exercise Price
Outstanding at December 31, 2022			4,560,520						$	30.14
Granted			326,506						61.16
Exercised			(864,524)						29.19
Forfeited or Expired			(106,291)						33.90
Outstanding at September 30, 2023			3,916,211						$	32.83
Exercisable at September 30, 2023			2,273,691						$	28.32

The total pre-tax compensation cost related to unvested stock options not yet recognized as of September 30, 2023 is $10.7 million and is expected to be recognized over a weighted average period of approximately 1.3 years.

The total intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022 was $27.6 million and $6.7 million, respectively. The cash received from options exercised during the nine months ended September 30, 2023 and 2022 was $25.3 million and $11.0 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 September 30, 2023, unrecognized compensation cost related to unvested restricted stock awards was approximately $5.7 million, which is expected to be recognized over a weighted average period of approximately 1.5 years.

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

			Shares						Weighted Average Grant Date Fair Value
Unvested at December 31, 2022			217,168						$	33.34
Granted			73,633						59.70
Vested			(92,977)						32.57
Forfeited			(4,846)						38.52
Unvested at September 30, 2023			192,978						$	43.64

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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 September 30, 2023 is $5.0 million and is expected to be recognized over a weighted average period of approximately 1.7 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 nine months ended September 30, 2023 and 2022 using a Monte Carlo Model:

			Nine months ended
			September 30, 2023						September 30, 2022
Expected (annual) dividend rate			$0.32						$0.25
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			93,982						$	36.62
Granted			58,130						84.42
Vested			—						—
Forfeited			—						—
Unvested at September 30, 20231			152,112						$	54.88
1Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2024, and 58,130 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 September 30, 2023 is $0.3 million and is expected to be recognized over a weighted average period of approximately 0.3 years.

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

			Shares						Weighted Average Grant Date Fair Value
Unvested at December 31, 2022			39,899						$	53.45
Granted			—						—
Vested			—						—
Forfeited			—						—
Unvested at September 30, 2023			39,899						$	53.45

Share-Based Compensation

A summary of share-based compensation is as follows:

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Grant date fair value of awards during the period:			(in thousands)
Options			$	106					$	480					$	5,224					$	5,979
PSUs			—						109						4,907						2,190
Restricted stock			246						164						4,396						3,319
Total			$	352					$	753					$	14,527					$	11,488
Share-based compensation expense:
Options			$	2,228					$	2,104					$	6,604					$	6,483
PSUs			737						188						1,820						665
Restricted stock			1,053						768						2,903						2,290
Key employee awards			261						261						775						791
Total			$	4,279					$	3,321					$	12,102					$	10,229
Income tax benefit related to share-based compensation:
Options			$	478					$	531					$	5,639					$	1,022
Restricted stock			16						3						680						231
Total			$	494					$	534					$	6,319					$	1,253

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.

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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 nine months ended September 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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Contributions, net of forfeitures, made to the defined contribution plan			$	4,497					$	4,189					$	13,164					$	10,768

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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Profit sharing bonus plan and employee incentive plan expense			$	6,954					$	4,137					$	17,772					$	8,952

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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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Medical premium payments			$	4,455					$	3,429					$	11,255					$	7,418
Health saving account contributions			1,460						968						3,718						2,871

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 nine months ended September 30, 2023 and 2022:

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Numerator:			(in thousands, except share and per share data)
Net income			$	48,078					$	27,473					$	130,574					$	61,478
Denominator:
Basic weighted average shares3			81,418,800						79,777,987						81,140,473						79,543,925
Effect of dilutive shares related to stock based compensation1,3			1,974,254						1,160,087						1,993,664						1,135,815
Effect of dilutive shares related to contingent consideration2 ,3			—						—						141,071						203,058
Diluted weighted average shares3			83,393,054						80,938,074						83,275,208						80,882,798
Earnings per share:
Basic3			$	0.59					$	0.34					$	1.61					$	0.77
Dilutive3			$	0.58					$	0.34					$	1.57					$	0.76
Anti-dilutive shares:
Shares3			360,408						1,146,759						296,072						1,040,848
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)
3 Reflects three-for-two stock split effective August 16, 2023.

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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, 2

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.

2 As of September 30, 2023, there is approximately $25.0 million remaining under the current stock repurchase program.

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:

						Nine Months Ended
						September 30, 2023																		September 30, 2022
						(in thousands, except share and per share data)
Program						Shares1						Total $						$ per share1						Shares1						Total $						$ per share1
Open market						402,873						$	25,009					$	62.08					53,218						$	2,030					$	38.14
401(k)						—						—						—						155,904						5,913						37.93
Employees						20,218						1,202						59.45						24,889						978						39.29
Total						423,091						$	26,211					$	61.95					234,011						$	8,921					$	38.12
1 Reflects three-for-two stock split effective August 16, 2023.

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

						Inception to												September 30, 2023
						(in thousands, except share and per share data)
Program						Shares1						Total $									$ per share1
Open market						6,893,924						$	106,625								$	15.47
401(k)						12,462,552						171,789									13.78
Directors and employees						3,087,651						24,562									7.95
Total						22,444,127						$	302,976								$	13.50
1 Reflects three-for-two stock split effective August 16, 2023.

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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 Share2

Annualized Dividend per Share2

May 18, 2022

June 3, 2022

July 1, 2022

$0.13

$0.26

November 8, 2022

November 28, 2022

December 16, 2022

$0.16

$0.32

March 1, 2023

March 13, 2023

March 31, 2023

$0.08

$0.32

May 18, 2023

June 9, 2023

June 30, 2023

$0.08

$0.32

August 18, 2023

September 8, 2023

September 29, 2023

$0.08

$0.32

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.

2 Reflects three-for-two stock split effective August 16, 2023.

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 received one additional share for every two shares they held as of that date on August 16, 2023 (ex-dividend date August 17, 2023). Cash was paid in lieu of fractional shares (approximately $0.5 million). All share and per share information has been updated to reflect the effects of this stock split. The retroactive effect of the stock split resulted in an approximately $0.1 million reclass between common stock and retained earnings within stockholders' equity on the consolidated balance sheet.

Contingent Shares Issued in BASX Acquisition

As discussed above, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split.

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 1.56 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.

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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.

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.

On September 28, 2023, the parties attended a court ordered settlement conference and agreed to resolve the case for $7.5 million. A settlement agreement was entered into on October 25, 2023 and the case has been dismissed with prejudice. The settlement of $7.5 million has been included in accrued liabilities on our consolidated balance sheets and selling, general and administrative expenses on our consolidated statement of income. The final payment was made on October 26, 2023.

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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 September 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 September 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 was made on October 30, 2023.

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

			Three Months Ended												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
			(in thousands)
Sales to affiliates			$	1,047					$	450					$	4,811					$	3,529
Payments to affiliates			90						30						872						1,033
															September 30, 2023						December 31, 2022
															(in thousands)
Due from affiliates															$	190					$	432
Due to affiliates															232						—

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.

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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												Nine Months Ended
			September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
Net Sales															(in thousands)
AAON Oklahoma
External sales			$	246,454					$	179,169					$	666,670					$	476,517
Inter-segment sales			768						998						3,467						2,157
AAON Coil Products
External sales			25,769						30,504						89,262						79,193
Inter-segment sales			11,871						8,037						28,687						24,047
BASX
External sales			39,747						32,932						105,948						78,480
Inter-segment sales			(74)						61						1,426						61
Eliminations			(12,565)						(9,096)						(33,580)						(26,265)
Net sales			$	311,970					$	242,605					$	861,880					$	634,190
Gross Profit
AAON Oklahoma			$	94,174					$	45,643					$	231,403					$	111,216
AAON Coil Products			8,307						10,564						22,948						26,344
BASX			13,628						9,384						32,930						21,471
Gross profit			$	116,109					$	65,591					$	287,281					$	159,031

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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).

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

Stephen E. Wakefield

September 13, 2023

Expires August 30, 2024

181,000

Vice President and Chief Operating Officer

v3.23.3

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Nov. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	Q3
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		81,244,857

v3.23.3

Consolidated Balance Sheets - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents		$ 212	$ 5,451
Restricted Cash		22,323	498
Accounts receivable, net of allowance for credit losses of $385 and $477, respectively		160,108	127,158
Inventories, net		214,507	198,939
Contract assets		25,306	15,151
Prepaid expenses and other		2,836	1,919
Total current assets		425,292	349,116
Property, plant and equipment:
Land		15,296	8,537
Buildings		193,684	169,156
Machinery and equipment		381,271	342,045
Furniture and fixtures		41,488	30,033
Total property, plant and equipment		631,739	549,771
Less: Accumulated depreciation		274,909	245,026
Property, plant and equipment, net		356,830	304,745
Intangible assets, net		61,901	64,606
Goodwill		81,892	81,892
Right of use assets		12,252	7,123
Note receivable		6,376	6,421
Total assets		944,543	813,903
Current liabilities:
Accounts payable		29,917	45,513
Accrued liabilities		90,986	78,630
Contract liabilities		19,576	21,424
Total current liabilities		140,479	145,567
Revolving credit facility, long-term		78,420	71,004
Deferred tax liabilities		14,744	18,661
Other long-term liabilities		16,247	11,508
New market tax credit obligation1	[1]	12,169	6,449
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, 81,231,513 and 80,137,776 issued and outstanding at September 30, 2023 and December 31, 2022, respectively2	[2]	325	322
Additional paid-in capital		109,874	98,735
Retained earnings	[2]	572,285	461,657
Total stockholders' equity		682,484	560,714
Total liabilities and stockholders' equity		$ 944,543	$ 813,903
[1] 1 Held by variable interest entities (Note 16) [2] 2 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

Consolidated Balance Sheets (Parenthetical) $ in Thousands	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Stockholders' equity:
Allowance for doubtful accounts | $	$ 385	$ 477
Preferred stock, par value (in dollars per share) | $ / shares	$ 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) | $ / shares	$ 0.004	$ 0.004
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	81,231,513	80,137,776
Common stock, shares outstanding (in shares)	81,231,513	80,137,776

v3.23.3

Consolidated Statements of Income $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares		Sep. 30, 2022 USD ($) $ / shares shares
Income Statement [Abstract]
Net sales		$ 311,970	$ 242,605	$ 861,880		$ 634,190
Cost of sales		195,861	177,014	574,599		475,159
Gross profit		116,109	65,591	287,281		159,031
Selling, general and administrative expenses		51,470	28,891	123,684		78,880
Loss (gain) on disposal of assets		(25)	0	(13)		(12)
Income from operations		64,664	36,700	163,610		80,163
Interest expense, net		(1,266)	(954)	(3,959)		(1,694)
Other income, net		93	54	370		295
Income before taxes		63,491	35,800	160,021		78,764
Income tax provision		15,413	8,327	29,447		17,286
Net income		$ 48,078	$ 27,473	$ 130,574	[1]	$ 61,478
Earnings per share:
Basic (in dollars per share) | $ / shares	[2]	$ 0.59	$ 0.34	$ 1.61		$ 0.77
Diluted (in dollars per share) | $ / shares	[2]	$ 0.58	$ 0.34	$ 1.57		$ 0.76
Weighted average shares outstanding:
Basic (in shares) | shares	[2]	81,418,800	79,777,987	81,140,473		79,543,925
Diluted (in shares) | shares	[2]	83,393,054	80,938,074	83,275,208		80,882,798
[1] 1 Reflects three-for-two stock split effective August 16, 2023 [2] 1 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

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	[1]			78,792
Balance at Dec. 31, 2021		$ 466,170		$ 318	[1]	$ 81,654	$ 384,198	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		61,478					61,478	[1]
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)	[1]			1,265
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)		10,990		$ 3	[1]	10,987
Share-based compensation		10,229				10,229
Stock repurchased and retired (in shares)	[1]			(234)
Stock repurchased and retired		(8,921)				(8,921)
Contingent consideration		(6,000)
Dividends		(10,088)					(10,088)	[1]
Balance (in shares) at Sep. 30, 2022	[1]			79,823
Balance at Sep. 30, 2022		523,858		$ 321	[1]	87,949	435,588	[1]
Balance (in shares) at Jun. 30, 2022	[1]			79,691
Balance at Jun. 30, 2022		490,506		$ 321	[1]	82,078	408,107	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		27,473					27,473	[1]
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)	[1]			186
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)		4,605				4,605
Share-based compensation		3,321				3,321
Stock repurchased and retired (in shares)	[1]			(54)
Stock repurchased and retired		(2,055)				(2,055)
Dividends		8					8	[1]
Balance (in shares) at Sep. 30, 2022	[1]			79,823
Balance at Sep. 30, 2022		523,858		$ 321	[1]	87,949	435,588	[1]
Balance (in shares) at Dec. 31, 2022	[1]			80,138
Balance at Dec. 31, 2022		560,714		$ 322	[1]	98,735	461,657	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		130,574	[1]				130,574
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)	[1]			1,517
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)		25,251		$ 5	[1]	25,246
Share-based compensation		12,102				12,102
Stock repurchased and retired (in shares)	[1]			(423)
Stock repurchased and retired		(26,211)		$ (2)	[1]	(26,209)
Dividends		(19,946)					(19,946)	[1]
Balance (in shares) at Sep. 30, 2023	[1]			81,232
Balance at Sep. 30, 2023		682,484		$ 325	[1]	109,874	572,285	[1]
Balance (in shares) at Jun. 30, 2023	[1]			81,569
Balance at Jun. 30, 2023		660,111		$ 326	[1]	128,636	531,149	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		48,078					48,078	[1]
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)	[1]			66
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)		2,007		$ 1	[1]	2,006
Share-based compensation		4,279				4,279
Stock repurchased and retired (in shares)	[1]			(403)
Stock repurchased and retired		(25,049)		$ (2)		(25,047)
Dividends		(6,942)					(6,942)	[1]
Balance (in shares) at Sep. 30, 2023	[1]			81,232
Balance at Sep. 30, 2023		$ 682,484		$ 325	[1]	$ 109,874	$ 572,285	[1]
[1] 1 Reflects three-for-two stock split effective August 16, 2023

v3.23.3

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023		Sep. 30, 2022
Operating Activities
Net income	$ 130,574	[1]	$ 61,478
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	33,439		25,624
Amortization of debt issuance costs	57		32
Amortization of right of use assets	166		191
(Recoveries of) provision for credit losses on accounts receivable, net of adjustments	(92)		300
Provision for excess and obsolete inventories, net of write-offs	2,979		1,380
Share-based compensation	12,102		10,229
Loss (gain) on disposal of assets	(13)		(12)
Foreign currency transaction loss	0		42
Interest income on note receivable	(15)		(17)
Deferred	(3,917)		(563)
Changes in assets and liabilities:
Accounts receivable	(32,040)		(63,593)
Income taxes	(12,472)		3,782
Inventories	(18,547)		(47,998)
Contract assets	(10,155)		(3,843)
Prepaid expenses and other	(896)		(70)
Accounts payable	(15,631)		18,616
Contract liabilities	(1,848)		24,249
Extended warranties	2,049		730
Accrued liabilities and other long-term liabilities	21,405		12,857
Net cash provided by operating activities	107,145		43,414
Investing Activities
Capital expenditures	(82,900)		(41,586)
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	129		12
Principal payments from note receivable	39		41
Net cash used in investing activities	(82,732)		(63,782)
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	444,072		151,103
Payments under revolving credit facility	(436,656)		(114,812)
Principal payments on financing lease	0		(115)
Stock options exercised	25,251		10,990
Repurchase of stock	(25,009)		(7,943)
Employee taxes paid by withholding shares	(1,202)		(978)
Cash dividends paid to stockholders	19,946		10,096
Net cash (used in) provided by financing activities	(7,827)		28,149
Net increase in cash, cash equivalents and restricted cash	16,586		7,781
Cash, cash equivalents and restricted cash, beginning of period	5,949		3,487
Cash, cash equivalents and restricted cash, end of period	$ 22,535		$ 11,268
[1] 1 Reflects three-for-two stock split effective August 16, 2023

v3.23.3

General	9 Months Ended
	Sep. 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 five 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 nine months ended September 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: Nine Months Ended September 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.

v3.23.3

Revenue Recognition	9 Months Ended
	Sep. 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 September 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 221,417  $ —  $ —  $ 221,417  Condensing units —  7,636  —  7,636  Air handlers —  9,862  7,558  17,420  Outdoor mechanical rooms —  62  —  62  Cleanroom systems —  —  5,355  5,355  Data center cooling solutions —  3,284  25,726  29,010  Water-source heat pumps —  3,898  —  3,898  Part sales 17,756  4  371  18,131  Other1 7,281  1,023  737  9,041  $ 246,454  $ 25,769  $ 39,747  $ 311,970  Three Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 154,171  $ —  $ —  $ 154,171  Condensing units —  12,720  —  12,720  Air handlers —  14,380  2,211  16,591  Outdoor mechanical rooms 58  118  —  176  Cleanroom systems —  —  15,283  15,283  Data center cooling solutions —  —  14,884  14,884  Water-source heat pumps 3,236  2,445  —  5,681  Part sales 15,724  —  176  15,900  Other1 5,980  841  378  7,199  $ 179,169  $ 30,504  $ 32,932  $ 242,605   1 Other sales include freight, extended warranties and miscellaneous revenue. Nine Months Ended September 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 597,508  $ —  $ —  $ 597,508  Condensing units 61  34,243  —  34,304  Air handlers —  34,693  13,196  47,889  Outdoor mechanical rooms 208  274  —  482  Cleanroom systems —  —  35,063  35,063  Data center cooling solutions —  6,524  56,079  62,603  Water-source heat pumps 3,128  10,064  —  13,192  Part sales 47,623  5  862  48,490  Other1 18,142  3,459  748  22,349  $ 666,670  $ 89,262  $ 105,948  $ 861,880  Nine Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 414,493  $ —  $ —  $ 414,493  Condensing units 242  33,645  —  33,887  Air handlers —  35,358  6,495  41,853  Outdoor mechanical rooms 612  488  —  1,100  Cleanroom systems —  —  31,568  31,568  Data center cooling solutions —  —  38,589  38,589  Water-source heat pumps 8,098  6,596  —  14,694  Part sales 39,797  —  507  40,304  Other1 13,275  3,106  1,321  17,702  $ 476,517  $ 79,193  $ 78,480  $ 634,190   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 $20.1 million and $10.8 million for the three months ended September 30, 2023 and 2022, respectively, and $46.4 million and $28.7 million for the nine months ended September 30, 2023 and 2022, respectively.

v3.23.3

Leases	9 Months Ended
	Sep. 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 September 30, 2023 December 31, 2022 Operating Leases Right of use assets Right of use assets $ 12,252  $ 7,123  Lease liability, short-term Accrued liabilities $ 1,858  $ 1,254  Lease liability, long-term Other long-term liabilities $ 10,684  $ 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.

v3.23.3

Accounts Receivable	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable and the related allowance for credit losses are as follows:     September 30, 2023 December 31, 2022   (in thousands) Accounts receivable $ 160,493  $ 127,635  Less:  Allowance for credit losses (385) (477) Total, net $ 160,108  $ 127,158      Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Allowance for credit losses: (in thousands) Balance, beginning of period $ 306  $ 563  $ 477  $ 549  Provisions for (recoveries of) expected credit 79  119  (92) 300  losses, net of adjustments Accounts receivable written off, net of recoveries —  —  —  (167) Balance, end of period $ 385  $ 682  $ 385  $ 682

v3.23.3

Inventories	9 Months Ended
	Sep. 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:   September 30, 2023 December 31, 2022   (in thousands) Raw materials $ 209,697  $ 194,159  Work in process 4,379  3,501  Finished goods 5,219  5,806  Total, gross 219,295  203,466  Less:  Allowance for excess and obsolete inventories (4,788) (4,527) Total, net $ 214,507  $ 198,939     Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 5,281  $ 1,871  $ 4,527  $ 1,787  Provision for (recoveries of) excess and 1,521  1,232  2,979  1,380       obsolete inventories Inventories written off (2,014) (38) (2,718) (102) Balance, end of period $ 4,788  $ 3,065  $ 4,788  $ 3,065

v3.23.3

Intangible Assets	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets Our intangible assets consist of the following:   September 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 (6,512) (3,807)                Total, net 47,330  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 61,901  $ 64,606  Amortization expense recorded in selling, general and administrative expenses is as follows:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Amortization expense $ 902  $ 902  $ 2,705  $ 2,698  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.

v3.23.3

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Supplemental disclosures: (in thousands) Interest paid $ 1,187  $ 974  $ 3,814  $ 1,507  Income taxes paid $ 12,081  $ 3,086  $ 45,724  $ 14,067  Non-cash investing and financing activities:     Non-cash capital expenditures $ (1,536) $ 306  $ 35  $ 985

v3.23.3

Warranties	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Warranty accrual: (in thousands) Balance, beginning of period $ 16,900  $ 14,381  $ 15,682  $ 13,769  Payments made (3,337) (2,196) (7,653) (5,094) Warranty expense 4,248  3,046  9,782  6,556  Balance, end of period $ 17,811  $ 15,231  $ 17,811  $ 15,231

v3.23.3

Accrued Liabilities and Other Long-Term Liabilities	9 Months Ended
	Sep. 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:   September 30, 2023 December 31, 2022   (in thousands) Warranty $ 17,811  $ 15,682  Due to representatives 15,888  15,545  Payroll 18,105  11,901  Profit sharing 7,349  5,451  Workers' compensation 428  367  Medical self-insurance 1,745  1,178  Customer prepayments 1,462  3,750  Donations, short-term 419  637  Litigation settlement (Note 17) 7,500  —  Accrued income taxes 113  12,472  Employee vacation time 10,131  6,329  Lease liability, short-term 1,858  1,254  Property taxes 2,493  —  Extended warranties, short-term 2,909  1,330  Other 2,775  2,734  Total $ 90,986  $ 78,630  Other long-term liabilities were comprised of the following:     September 30, 2023 December 31, 2022   (in thousands) Lease liability $ 10,684  $ 5,993  Extended warranties 5,009  4,539  Donations and other 554  976  Total $ 16,247  $ 11,508

v3.23.3

Revolving Credit Facility	9 Months Ended
	Sep. 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 September 30, 2023 and December 31, 2022, we had $78.4 million and $71.0 million outstanding under the Revolver, respectively. We have two standby letters of credit totaling $2.3 million as of September 30, 2023. Borrowings available under the Revolver at September 30, 2023 were $119.3 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 6.5% and 6.3% for the three and nine months ended September 30, 2023, respectively, as compared to 3.5% and 2.5% for the three and nine months ended September 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 nine months ended September 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 September 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 September 30, 2023, our leverage ratio was 0.33 to 1.0, which meets the requirement of not being above 3 to 1.

v3.23.3

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision (benefit) for income taxes consists of the following:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022   (in thousands) Current $ 14,892  $ 8,763  $ 33,364  $ 17,849  Deferred 521  (436) (3,917) (563)      Income tax provision $ 15,413  $ 8,327  $ 29,447  $ 17,286  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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Federal statutory rate 21.0  % 21.0  % 21.0  % 21.0  % State income taxes, net of Federal benefit 3.4  5.0  4.0  4.7  Excess tax benefits related to share-based compensation (Note 12) (0.8) (1.5) (3.9) (1.6) Return to provision 0.9  (0.4) 0.3  (0.5) Research and development credits (0.2) (0.7) (0.9) (1.0) Change in valuation allowance (Oklahoma Investment Credit) —  —  (2.0) —  Other —  (0.1) (0.1) (0.7)      Effective tax rate 24.3  % 23.3  % 18.4  % 21.9  % 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 nine months ended September 30, 2023. As of September 30, 2023, we have investment tax credit carryforwards of approximately $3.8 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.

v3.23.3

Share-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation As discussed in Note 15, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split. On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 5.0 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 13.4 million shares, comprised of 5.1 million new shares provided for under the 2016 Plan, approximately 0.6 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 3.9 million shares that were approved by the stockholders on May 15, 2018, and an additional 3.8 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 nine months ended September 30, 2023 and 2022 using a Black Scholes-Merton Model:   Nine months ended   September 30, 2023 September 30, 2022 Directors and SLT1:     Expected (annual) dividend rate $0.32 $0.25 Expected volatility 37.89% 36.00% Risk-free interest rate 4.39% 2.21% Expected life (in years) 4.0 4.0 Employees: Expected (annual) dividend rate $0.32 $0.25 Expected volatility 38.30% 37.38% Risk-free interest rate 4.41% 2.20% 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 September 30, 2023:   Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $ 13.95  - $ 27.58  1,528,983  4.52 $ 24.70  $ 49,191  $ 28.28  - $ 37.16  534,293  6.72 30.91  13,870  $ 37.63  - $ 69.62  210,415  7.44 48.06  1,857  Total 2,273,691  5.31 $ 28.32  $ 64,918   A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2022 4,560,520  $ 30.14  Granted 326,506  61.16  Exercised (864,524) 29.19  Forfeited or Expired (106,291) 33.90  Outstanding at September 30, 2023 3,916,211  $ 32.83  Exercisable at September 30, 2023 2,273,691  $ 28.32  The total pre-tax compensation cost related to unvested stock options not yet recognized as of September 30, 2023 is $10.7 million and is expected to be recognized over a weighted average period of approximately 1.3 years. The total intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022 was $27.6 million and $6.7 million, respectively. The cash received from options exercised during the nine months ended September 30, 2023 and 2022 was $25.3 million and $11.0 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 September 30, 2023, unrecognized compensation cost related to unvested restricted stock awards was approximately $5.7 million, which is expected to be recognized over a weighted average period of approximately 1.5 years. A summary of the unvested restricted stock awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 217,168  $ 33.34  Granted 73,633  59.70  Vested (92,977) 32.57  Forfeited (4,846) 38.52  Unvested at September 30, 2023 192,978  $ 43.64  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 September 30, 2023 is $5.0 million and is expected to be recognized over a weighted average period of approximately 1.7 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 nine months ended September 30, 2023 and 2022 using a Monte Carlo Model:   Nine months ended   September 30, 2023 September 30, 2022   Expected (annual) dividend rate $0.32 $0.25 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 93,982  $ 36.62  Granted 58,130  84.42  Vested —  —  Forfeited —  —  Unvested at September 30, 20231 152,112  $ 54.88  1Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2024, and 58,130 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 September 30, 2023 is $0.3 million and is expected to be recognized over a weighted average period of approximately 0.3 years. A summary of the unvested Key Employee Awards is as follows: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2022 39,899  $ 53.45  Granted —  —  Vested —  —  Forfeited —  —  Unvested at September 30, 2023 39,899  $ 53.45  Share-Based Compensation A summary of share-based compensation is as follows: Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Grant date fair value of awards during the period: (in thousands) Options $ 106  $ 480  $ 5,224  $ 5,979  PSUs —  109  4,907  2,190  Restricted stock 246  164  4,396  3,319  Total $ 352  $ 753  $ 14,527  $ 11,488  Share-based compensation expense: Options $ 2,228  $ 2,104  $ 6,604  $ 6,483  PSUs 737  188  1,820  665  Restricted stock 1,053  768  2,903  2,290  Key employee awards 261  261  775  791  Total $ 4,279  $ 3,321  $ 12,102  $ 10,229  Income tax benefit related to share-based compensation: Options $ 478  $ 531  $ 5,639  $ 1,022  Restricted stock 16  3  680  231  Total $ 494  $ 534  $ 6,319  $ 1,253  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.

v3.23.3

Employee Benefits	9 Months Ended
	Sep. 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 nine months ended September 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 4,497  $ 4,189  $ 13,164  $ 10,768  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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 6,954  $ 4,137  $ 17,772  $ 8,952  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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Medical premium payments $ 4,455  $ 3,429  $ 11,255  $ 7,418  Health saving account contributions 1,460  968  3,718  2,871

v3.23.3

Earnings Per Share	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 and 2022:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 48,078  $ 27,473  $ 130,574  $ 61,478  Denominator:     Basic weighted average shares3 81,418,800  79,777,987  81,140,473  79,543,925  Effect of dilutive shares related to stock based compensation1,3 1,974,254  1,160,087  1,993,664  1,135,815  Effect of dilutive shares related to contingent consideration2 ,3 —  —  141,071  203,058  Diluted weighted average shares3 83,393,054  80,938,074  83,275,208  80,882,798  Earnings per share:     Basic3 $ 0.59  $ 0.34  $ 1.61  $ 0.77  Dilutive3 $ 0.58  $ 0.34  $ 1.57  $ 0.76  Anti-dilutive shares:     Shares3 360,408  1,146,759  296,072  1,040,848  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) 3 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

Stockholders' Equity	9 Months Ended
	Sep. 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, 2 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. 2 As of September 30, 2023, there is approximately $25.0 million remaining under the current stock repurchase program. 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: Nine Months Ended September 30, 2023 September 30, 2022 (in thousands, except share and per share data) Program Shares1 Total $ $ per share1 Shares1 Total $ $ per share1 Open market 402,873  $ 25,009  $ 62.08  53,218  $ 2,030  $ 38.14  401(k) —  —  —  155,904  5,913  37.93  Employees 20,218  1,202  59.45  24,889  978  39.29  Total 423,091  $ 26,211  $ 61.95  234,011  $ 8,921  $ 38.12  1 Reflects three-for-two stock split effective August 16, 2023. Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to September 30, 2023 (in thousands, except share and per share data) Program Shares1 Total $ $ per share1 Open market 6,893,924  $ 106,625  $ 15.47  401(k) 12,462,552  171,789  13.78  Directors and employees 3,087,651  24,562  7.95  Total 22,444,127  $ 302,976  $ 13.50  1 Reflects three-for-two stock split effective August 16, 2023. 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 Share2  Annualized Dividend per Share2 May 18, 2022 June 3, 2022 July 1, 2022 $0.13 $0.26 November 8, 2022 November 28, 2022 December 16, 2022 $0.16 $0.32 March 1, 2023 March 13, 2023 March 31, 2023 $0.08 $0.32 May 18, 2023 June 9, 2023 June 30, 2023 $0.08 $0.32 August 18, 2023 September 8, 2023 September 29, 2023 $0.08 $0.32 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. 2 Reflects three-for-two stock split effective August 16, 2023. 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 received one additional share for every two shares they held as of that date on August 16, 2023 (ex-dividend date August 17, 2023). Cash was paid in lieu of fractional shares (approximately $0.5 million). All share and per share information has been updated to reflect the effects of this stock split. The retroactive effect of the stock split resulted in an approximately $0.1 million reclass between common stock and retained earnings within stockholders' equity on the consolidated balance sheet. Contingent Shares Issued in BASX Acquisition As discussed above, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split. 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 1.56 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 September 30, 2023, 0.58 million shares and 0.73 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.

v3.23.3

New Market Tax Credit	9 Months Ended
	Sep. 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.

v3.23.3

Commitments and Contingencies	9 Months Ended
	Sep. 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. On September 28, 2023, the parties attended a court ordered settlement conference and agreed to resolve the case for $7.5 million. A settlement agreement was entered into on October 25, 2023 and the case has been dismissed with prejudice. The settlement of $7.5 million has been included in accrued liabilities on our consolidated balance sheets and selling, general and administrative expenses on our consolidated statement of income. The final payment was made on October 26, 2023. 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 September 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 September 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 was made on October 30, 2023.

v3.23.3

Related Parties	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Sales to affiliates $ 1,047  $ 450  $ 4,811  $ 3,529  Payments to affiliates 90  30  872  1,033  September 30, 2023 December 31, 2022 (in thousands) Due from affiliates $ 190  $ 432  Due to affiliates 232  —  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.

v3.23.3

Segments	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net Sales (in thousands) AAON Oklahoma      External sales $ 246,454  $ 179,169  $ 666,670  $ 476,517       Inter-segment sales 768  998  3,467  2,157  AAON Coil Products      External sales 25,769  30,504  89,262  79,193       Inter-segment sales 11,871  8,037  28,687  24,047  BASX External sales 39,747  32,932  105,948  78,480  Inter-segment sales (74) 61  1,426  61  Eliminations (12,565) (9,096) (33,580) (26,265)              Net sales $ 311,970  $ 242,605  $ 861,880  $ 634,190    Gross Profit AAON Oklahoma $ 94,174  $ 45,643  $ 231,403  $ 111,216  AAON Coil Products 8,307  10,564  22,948  26,344  BASX 13,628  9,384  32,930  21,471              Gross profit $ 116,109  $ 65,591  $ 287,281  $ 159,031  September 30, 2023 December 31, 2022 Long-lived assets (in thousands) AAON Oklahoma $ 251,298  $ 213,731  AAON Coil Products 77,434  68,013  BASX 45,805  35,578              Total long-lived assets $ 374,537  $ 317,322  Intangible assets and goodwill AAON Oklahoma $ 3,229  $ 3,229  AAON Coil Products —  —  BASX 140,564  143,269              Total intangible assets and goodwill $ 143,793  $ 146,498

v3.23.3

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 48,078	$ 27,473	$ 130,574	[1]	$ 61,478
[1] 1 Reflects three-for-two stock split effective August 16, 2023

v3.23.3

Insider Trading Arrangements - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2023
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). 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 Stephen E. Wakefield September 13, 2023 Expires August 30, 2024 181,000 Vice President and Chief Operating Officer
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Stephen E. Wakefield [Member]
Trading Arrangements, by Individual
Name	Stephen E. Wakefield	Stephen E. Wakefield
Title	Vice President and Chief Operating Officer	Vice President and Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 13, 2023	November 23, 2022
Arrangement Duration	352 days	175 days
Aggregate Available	181,000	95,788	181,000

v3.23.3

General (Policies)	9 Months Ended
	Sep. 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.
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: Nine Months Ended September 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.

v3.23.3

General (Tables)	9 Months Ended
	Sep. 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:   September 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 (6,512) (3,807)                Total, net 47,330  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 61,901  $ 64,606
Schedule of Goodwill	The changes in the carrying amount of goodwill were as follows: Nine Months Ended September 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.

v3.23.3

Revenue Recognition (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 221,417  $ —  $ —  $ 221,417  Condensing units —  7,636  —  7,636  Air handlers —  9,862  7,558  17,420  Outdoor mechanical rooms —  62  —  62  Cleanroom systems —  —  5,355  5,355  Data center cooling solutions —  3,284  25,726  29,010  Water-source heat pumps —  3,898  —  3,898  Part sales 17,756  4  371  18,131  Other1 7,281  1,023  737  9,041  $ 246,454  $ 25,769  $ 39,747  $ 311,970  Three Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 154,171  $ —  $ —  $ 154,171  Condensing units —  12,720  —  12,720  Air handlers —  14,380  2,211  16,591  Outdoor mechanical rooms 58  118  —  176  Cleanroom systems —  —  15,283  15,283  Data center cooling solutions —  —  14,884  14,884  Water-source heat pumps 3,236  2,445  —  5,681  Part sales 15,724  —  176  15,900  Other1 5,980  841  378  7,199  $ 179,169  $ 30,504  $ 32,932  $ 242,605   1 Other sales include freight, extended warranties and miscellaneous revenue. Nine Months Ended September 30, 2023 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 597,508  $ —  $ —  $ 597,508  Condensing units 61  34,243  —  34,304  Air handlers —  34,693  13,196  47,889  Outdoor mechanical rooms 208  274  —  482  Cleanroom systems —  —  35,063  35,063  Data center cooling solutions —  6,524  56,079  62,603  Water-source heat pumps 3,128  10,064  —  13,192  Part sales 47,623  5  862  48,490  Other1 18,142  3,459  748  22,349  $ 666,670  $ 89,262  $ 105,948  $ 861,880  Nine Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BASX Total (in thousands) Rooftop units $ 414,493  $ —  $ —  $ 414,493  Condensing units 242  33,645  —  33,887  Air handlers —  35,358  6,495  41,853  Outdoor mechanical rooms 612  488  —  1,100  Cleanroom systems —  —  31,568  31,568  Data center cooling solutions —  —  38,589  38,589  Water-source heat pumps 8,098  6,596  —  14,694  Part sales 39,797  —  507  40,304  Other1 13,275  3,106  1,321  17,702  $ 476,517  $ 79,193  $ 78,480  $ 634,190   1 Other sales include freight, extended warranties and miscellaneous revenue.

v3.23.3

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Schedule of Lessee, Operating Lease, Liability, Maturity	The following table presents the balances by lease type: Balance Sheet Classification September 30, 2023 December 31, 2022 Operating Leases Right of use assets Right of use assets $ 12,252  $ 7,123  Lease liability, short-term Accrued liabilities $ 1,858  $ 1,254  Lease liability, long-term Other long-term liabilities $ 10,684  $ 5,993

v3.23.3

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Accounts Receivable	September 30, 2023 December 31, 2022   (in thousands) Accounts receivable $ 160,493  $ 127,635  Less:  Allowance for credit losses (385) (477) Total, net $ 160,108  $ 127,158
Allowance for Doubtful Accounts	Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Allowance for credit losses: (in thousands) Balance, beginning of period $ 306  $ 563  $ 477  $ 549  Provisions for (recoveries of) expected credit 79  119  (92) 300  losses, net of adjustments Accounts receivable written off, net of recoveries —  —  —  (167) Balance, end of period $ 385  $ 682  $ 385  $ 682

v3.23.3

Inventories (Tables)	9 Months Ended
	Sep. 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:   September 30, 2023 December 31, 2022   (in thousands) Raw materials $ 209,697  $ 194,159  Work in process 4,379  3,501  Finished goods 5,219  5,806  Total, gross 219,295  203,466  Less:  Allowance for excess and obsolete inventories (4,788) (4,527) Total, net $ 214,507  $ 198,939
Inventories (Allowance)	Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 5,281  $ 1,871  $ 4,527  $ 1,787  Provision for (recoveries of) excess and 1,521  1,232  2,979  1,380       obsolete inventories Inventories written off (2,014) (38) (2,718) (102) Balance, end of period $ 4,788  $ 3,065  $ 4,788  $ 3,065

v3.23.3

Intangible Assets (Tables)	9 Months Ended
	Sep. 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:   September 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 (6,512) (3,807)                Total, net 47,330  50,035  Indefinite-lived intangible assets Trademarks 14,571  14,571  Total intangible assets, net $ 61,901  $ 64,606
Schedule of Amortization Expense	Amortization expense recorded in selling, general and administrative expenses is as follows:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Amortization expense $ 902  $ 902  $ 2,705  $ 2,698

v3.23.3

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Supplemental disclosures: (in thousands) Interest paid $ 1,187  $ 974  $ 3,814  $ 1,507  Income taxes paid $ 12,081  $ 3,086  $ 45,724  $ 14,067  Non-cash investing and financing activities:     Non-cash capital expenditures $ (1,536) $ 306  $ 35  $ 985

v3.23.3

Warranties (Tables)	9 Months Ended
	Sep. 30, 2023
Guarantees [Abstract]
Warranty	Changes in the warranty accrual are as follows:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Warranty accrual: (in thousands) Balance, beginning of period $ 16,900  $ 14,381  $ 15,682  $ 13,769  Payments made (3,337) (2,196) (7,653) (5,094) Warranty expense 4,248  3,046  9,782  6,556  Balance, end of period $ 17,811  $ 15,231  $ 17,811  $ 15,231

v3.23.3

Accrued Liabilities and Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities were comprised of the following:   September 30, 2023 December 31, 2022   (in thousands) Warranty $ 17,811  $ 15,682  Due to representatives 15,888  15,545  Payroll 18,105  11,901  Profit sharing 7,349  5,451  Workers' compensation 428  367  Medical self-insurance 1,745  1,178  Customer prepayments 1,462  3,750  Donations, short-term 419  637  Litigation settlement (Note 17) 7,500  —  Accrued income taxes 113  12,472  Employee vacation time 10,131  6,329  Lease liability, short-term 1,858  1,254  Property taxes 2,493  —  Extended warranties, short-term 2,909  1,330  Other 2,775  2,734  Total $ 90,986  $ 78,630
Schedule of Other Long-Term Liabilities	Other long-term liabilities were comprised of the following:     September 30, 2023 December 31, 2022   (in thousands) Lease liability $ 10,684  $ 5,993  Extended warranties 5,009  4,539  Donations and other 554  976  Total $ 16,247  $ 11,508

v3.23.3

Income Taxes (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022   (in thousands) Current $ 14,892  $ 8,763  $ 33,364  $ 17,849  Deferred 521  (436) (3,917) (563)      Income tax provision $ 15,413  $ 8,327  $ 29,447  $ 17,286
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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Federal statutory rate 21.0  % 21.0  % 21.0  % 21.0  % State income taxes, net of Federal benefit 3.4  5.0  4.0  4.7  Excess tax benefits related to share-based compensation (Note 12) (0.8) (1.5) (3.9) (1.6) Return to provision 0.9  (0.4) 0.3  (0.5) Research and development credits (0.2) (0.7) (0.9) (1.0) Change in valuation allowance (Oklahoma Investment Credit) —  —  (2.0) —  Other —  (0.1) (0.1) (0.7)      Effective tax rate 24.3  % 23.3  % 18.4  % 21.9  %

v3.23.3

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 and 2022 using a Black Scholes-Merton Model:   Nine months ended   September 30, 2023 September 30, 2022 Directors and SLT1:     Expected (annual) dividend rate $0.32 $0.25 Expected volatility 37.89% 36.00% Risk-free interest rate 4.39% 2.21% Expected life (in years) 4.0 4.0 Employees: Expected (annual) dividend rate $0.32 $0.25 Expected volatility 38.30% 37.38% Risk-free interest rate 4.41% 2.20% 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 nine months ended September 30, 2023 and 2022 using a Monte Carlo Model:   Nine months ended   September 30, 2023 September 30, 2022   Expected (annual) dividend rate $0.32 $0.25 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 September 30, 2023:   Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Intrinsic Value (in thousands) $ 13.95  - $ 27.58  1,528,983  4.52 $ 24.70  $ 49,191  $ 28.28  - $ 37.16  534,293  6.72 30.91  13,870  $ 37.63  - $ 69.62  210,415  7.44 48.06  1,857  Total 2,273,691  5.31 $ 28.32  $ 64,918
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 4,560,520  $ 30.14  Granted 326,506  61.16  Exercised (864,524) 29.19  Forfeited or Expired (106,291) 33.90  Outstanding at September 30, 2023 3,916,211  $ 32.83  Exercisable at September 30, 2023 2,273,691  $ 28.32
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 217,168  $ 33.34  Granted 73,633  59.70  Vested (92,977) 32.57  Forfeited (4,846) 38.52  Unvested at September 30, 2023 192,978  $ 43.64
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 39,899  $ 53.45  Granted —  —  Vested —  —  Forfeited —  —  Unvested at September 30, 2023 39,899  $ 53.45
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 93,982  $ 36.62  Granted 58,130  84.42  Vested —  —  Forfeited —  —  Unvested at September 30, 20231 152,112  $ 54.88  1Consists of 22,222 PSUs cliff vesting December 31, 2023, 71,760 PSUs cliff vesting December 31, 2024, and 58,130 PSUs cliff vesting December 31, 2025.
Summary of Share-Based Compensation Expense	A summary of share-based compensation is as follows: Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Grant date fair value of awards during the period: (in thousands) Options $ 106  $ 480  $ 5,224  $ 5,979  PSUs —  109  4,907  2,190  Restricted stock 246  164  4,396  3,319  Total $ 352  $ 753  $ 14,527  $ 11,488  Share-based compensation expense: Options $ 2,228  $ 2,104  $ 6,604  $ 6,483  PSUs 737  188  1,820  665  Restricted stock 1,053  768  2,903  2,290  Key employee awards 261  261  775  791  Total $ 4,279  $ 3,321  $ 12,102  $ 10,229  Income tax benefit related to share-based compensation: Options $ 478  $ 531  $ 5,639  $ 1,022  Restricted stock 16  3  680  231  Total $ 494  $ 534  $ 6,319  $ 1,253

v3.23.3

Employee Benefits (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 4,497  $ 4,189  $ 13,164  $ 10,768
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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 6,954  $ 4,137  $ 17,772  $ 8,952
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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Medical premium payments $ 4,455  $ 3,429  $ 11,255  $ 7,418  Health saving account contributions 1,460  968  3,718  2,871

v3.23.3

Earnings Per Share (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2023 and 2022:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 48,078  $ 27,473  $ 130,574  $ 61,478  Denominator:     Basic weighted average shares3 81,418,800  79,777,987  81,140,473  79,543,925  Effect of dilutive shares related to stock based compensation1,3 1,974,254  1,160,087  1,993,664  1,135,815  Effect of dilutive shares related to contingent consideration2 ,3 —  —  141,071  203,058  Diluted weighted average shares3 83,393,054  80,938,074  83,275,208  80,882,798  Earnings per share:     Basic3 $ 0.59  $ 0.34  $ 1.61  $ 0.77  Dilutive3 $ 0.58  $ 0.34  $ 1.57  $ 0.76  Anti-dilutive shares:     Shares3 360,408  1,146,759  296,072  1,040,848  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) 3 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 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, 2 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. 2 As of September 30, 2023, there is approximately $25.0 million remaining under the current stock repurchase program.
Schedule of Share Repurchases	Our repurchase activity is as follows: Nine Months Ended September 30, 2023 September 30, 2022 (in thousands, except share and per share data) Program Shares1 Total $ $ per share1 Shares1 Total $ $ per share1 Open market 402,873  $ 25,009  $ 62.08  53,218  $ 2,030  $ 38.14  401(k) —  —  —  155,904  5,913  37.93  Employees 20,218  1,202  59.45  24,889  978  39.29  Total 423,091  $ 26,211  $ 61.95  234,011  $ 8,921  $ 38.12  1 Reflects three-for-two stock split effective August 16, 2023. Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to September 30, 2023 (in thousands, except share and per share data) Program Shares1 Total $ $ per share1 Open market 6,893,924  $ 106,625  $ 15.47  401(k) 12,462,552  171,789  13.78  Directors and employees 3,087,651  24,562  7.95  Total 22,444,127  $ 302,976  $ 13.50  1 Reflects three-for-two stock split effective August 16, 2023.
Schedule of Dividends Payable	Our recent cash dividends are as follows: Declaration Date1 Record Date Payment Date Dividend per Share2  Annualized Dividend per Share2 May 18, 2022 June 3, 2022 July 1, 2022 $0.13 $0.26 November 8, 2022 November 28, 2022 December 16, 2022 $0.16 $0.32 March 1, 2023 March 13, 2023 March 31, 2023 $0.08 $0.32 May 18, 2023 June 9, 2023 June 30, 2023 $0.08 $0.32 August 18, 2023 September 8, 2023 September 29, 2023 $0.08 $0.32 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. 2 Reflects three-for-two stock split effective August 16, 2023.
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022:   Three Months Ended Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Numerator: (in thousands, except share and per share data) Net income $ 48,078  $ 27,473  $ 130,574  $ 61,478  Denominator:     Basic weighted average shares3 81,418,800  79,777,987  81,140,473  79,543,925  Effect of dilutive shares related to stock based compensation1,3 1,974,254  1,160,087  1,993,664  1,135,815  Effect of dilutive shares related to contingent consideration2 ,3 —  —  141,071  203,058  Diluted weighted average shares3 83,393,054  80,938,074  83,275,208  80,882,798  Earnings per share:     Basic3 $ 0.59  $ 0.34  $ 1.61  $ 0.77  Dilutive3 $ 0.58  $ 0.34  $ 1.57  $ 0.76  Anti-dilutive shares:     Shares3 360,408  1,146,759  296,072  1,040,848  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) 3 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

Related Parties (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (in thousands) Sales to affiliates $ 1,047  $ 450  $ 4,811  $ 3,529  Payments to affiliates 90  30  872  1,033  September 30, 2023 December 31, 2022 (in thousands) Due from affiliates $ 190  $ 432  Due to affiliates 232  —  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.

v3.23.3

Segments (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended   September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net Sales (in thousands) AAON Oklahoma      External sales $ 246,454  $ 179,169  $ 666,670  $ 476,517       Inter-segment sales 768  998  3,467  2,157  AAON Coil Products      External sales 25,769  30,504  89,262  79,193       Inter-segment sales 11,871  8,037  28,687  24,047  BASX External sales 39,747  32,932  105,948  78,480  Inter-segment sales (74) 61  1,426  61  Eliminations (12,565) (9,096) (33,580) (26,265)              Net sales $ 311,970  $ 242,605  $ 861,880  $ 634,190    Gross Profit AAON Oklahoma $ 94,174  $ 45,643  $ 231,403  $ 111,216  AAON Coil Products 8,307  10,564  22,948  26,344  BASX 13,628  9,384  32,930  21,471              Gross profit $ 116,109  $ 65,591  $ 287,281  $ 159,031  September 30, 2023 December 31, 2022 Long-lived assets (in thousands) AAON Oklahoma $ 251,298  $ 213,731  AAON Coil Products 77,434  68,013  BASX 45,805  35,578              Total long-lived assets $ 374,537  $ 317,322  Intangible assets and goodwill AAON Oklahoma $ 3,229  $ 3,229  AAON Coil Products —  —  BASX 140,564  143,269              Total intangible assets and goodwill $ 143,793  $ 146,498

v3.23.3

General (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) numberOfVIE	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) numberOfVIE	Sep. 30, 2022 USD ($)	Mar. 31, 2023	Dec. 31, 2022 USD ($)	Oct. 31, 2022	Mar. 31, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of variable interest entities with directed activities | numberOfVIE	5		5
Percent on overall increase in wages					3.90%			3.00%
Percent of cost of living increase							3.50%
Provision for excess and obsolete inventories, net of write-offs			$ 2,979	$ 1,380
Intangible assets, net	$ 61,901		61,901			$ 64,606
Amortization of intangible assets	902	$ 902	2,705	2,698
Goodwill	$ 81,892		81,892			$ 81,892
Finite-Lived Intangible Assets [Line Items]
Provision for excess and obsolete inventories, net of write-offs			2,979	1,380
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization			(33,439)	(25,624)
Provision for excess and obsolete inventories, net of write-offs			$ 2,979	1,380
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

v3.23.3

General - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 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

v3.23.3

Revenue Recognition - Disaggregated Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 311,970	$ 242,605	$ 861,880	$ 634,190
AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	246,454	179,169	666,670	476,517
AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	25,769	30,504	89,262	79,193
BasX
Disaggregation of Revenue [Line Items]
Net sales	39,747	32,932	105,948	78,480
Rooftop units
Disaggregation of Revenue [Line Items]
Net sales	221,417	154,171	597,508	414,493
Rooftop units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	221,417	154,171	597,508	414,493
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	7,636	12,720	34,304	33,887
Condensing units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	61	242
Condensing units | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	7,636	12,720	34,243	33,645
Condensing units | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air handlers
Disaggregation of Revenue [Line Items]
Net sales	17,420	16,591	47,889	41,853
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	9,862	14,380	34,693	35,358
Air handlers | BasX
Disaggregation of Revenue [Line Items]
Net sales	7,558	2,211	13,196	6,495
Outdoor mechanical rooms
Disaggregation of Revenue [Line Items]
Net sales	62	176	482	1,100
Outdoor mechanical rooms | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	58	208	612
Outdoor mechanical rooms | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	62	118	274	488
Outdoor mechanical rooms | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems
Disaggregation of Revenue [Line Items]
Net sales	5,355	15,283	35,063	31,568
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	5,355	15,283	35,063	31,568
Data center cooling solutions
Disaggregation of Revenue [Line Items]
Net sales	29,010	14,884	62,603	38,589
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	3,284	0	6,524	0
Data center cooling solutions | BasX
Disaggregation of Revenue [Line Items]
Net sales	25,726	14,884	56,079	38,589
Water-source heat pumps
Disaggregation of Revenue [Line Items]
Net sales	3,898	5,681	13,192	14,694
Water-source heat pumps | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	3,236	3,128	8,098
Water-source heat pumps | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	3,898	2,445	10,064	6,596
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	18,131	15,900	48,490	40,304
Part sales | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	17,756	15,724	47,623	39,797
Part sales | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	4	0	5	0
Part sales | BasX
Disaggregation of Revenue [Line Items]
Net sales	371	176	862	507
Other
Disaggregation of Revenue [Line Items]
Net sales	9,041	7,199	22,349	17,702
Other | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	7,281	5,980	18,142	13,275
Other | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	1,023	841	3,459	3,106
Other | BasX
Disaggregation of Revenue [Line Items]
Net sales	$ 737	$ 378	$ 748	$ 1,321

v3.23.3

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Payments to representatives	$ 20.1	$ 10.8	$ 46.4	$ 28.7

v3.23.3

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Right of use assets	$ 12,252	$ 7,123
Lease liability, short-term	1,858	1,254
Lease liability, long-term	$ 10,684	$ 5,993

v3.23.3

Leases - Additional Information (Details) - squareFoot	Jul. 28, 2023	Nov. 30, 2022	Oct. 31, 2022	Sep. 30, 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
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

v3.23.3

Accounts Receivable - Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 160,493	$ 127,635
Less:  Allowance for credit losses	(385)	(477)
Total, net	$ 160,108	$ 127,158

v3.23.3

Accounts Receivable - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 306	$ 563	$ 477	$ 549
Provisions for (recoveries of) for expected credit losses, net of adjustments	79	119	(92)	300
Accounts receivable written off, net of recoveries	0	0	0	167
Balance, end of period	$ 385	$ 682	$ 385	$ 682

v3.23.3

Inventories - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 209,697		$ 194,159
Work in process	4,379		3,501
Finished goods	5,219		5,806
Total, gross	219,295		203,466
Less: Allowance for excess and obsolete inventories	(4,788)	$ (5,281)	(4,527)	$ (3,065)	$ (1,871)	$ (1,787)
Total, net	$ 214,507		$ 198,939

v3.23.3

Inventories - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Inventory Valuation Reserves [Roll Forward]
Balance, beginning of period	$ 5,281	$ 1,871	$ 4,527	$ 1,787
Provision (recovery of) for excess and obsolete inventories	1,521	1,232	2,979	1,380
Inventories written off	(2,014)	(38)	(2,718)	(102)
Balance, end of period	$ 4,788	$ 3,065	$ 4,788	$ 3,065

v3.23.3

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Less:  Accumulated amortization	$ (6,512)		$ (6,512)		$ (3,807)
Total, net	47,330		47,330		50,035
Indefinite-lived intangible assets	14,571		14,571		14,571
Total intangible assets, net	61,901		61,901		64,606
Amortization of intangible assets	902	$ 902	2,705	$ 2,698
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

v3.23.3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Supplemental disclosure:
Interest paid	$ 1,187	$ 974	$ 3,814	$ 1,507
Income taxes paid	12,081	3,086	45,724	14,067
Non-cash investing and financing activities:
Non-cash capital expenditures	$ (1,536)	$ 306	$ 35	$ 985

v3.23.3

Warranties - Additional Information (Details)	9 Months Ended
	Sep. 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

v3.23.3

Warranties - Change in Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 16,900	$ 14,381	$ 15,682	$ 13,769
Payments made	(3,337)	(2,196)	(7,653)	(5,094)
Provisions	4,248	3,046	9,782	6,556
Balance, end of period	$ 17,811	$ 15,231	$ 17,811	$ 15,231

v3.23.3

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued Liabilities
Warranty	$ 17,811	$ 15,682
Due to representatives	15,888	15,545
Payroll	18,105	11,901
Profit sharing	7,349	5,451
Workers' compensation	428	367
Medical self-insurance	1,745	1,178
Customer prepayments	1,462	3,750
Donations, short-term	419	637
Litigation settlement (Note 17)	7,500	0
Accrued income taxes	113	12,472
Employee vacation time	10,131	6,329
Lease liability, short-term	1,858	1,254
Property taxes	2,493	0
Extended warranties, short-term	2,909	1,330
Other	2,775	2,734
Accrued liabilities	90,986	78,630
Other Long-Term Liabilities
Lease liability	10,684	5,993
Extended warranties	5,009	4,539
Donations and other	554	976
Total	$ 16,247	$ 11,508

v3.23.3

Revolving Credit Facility (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) letterOfCredit	Sep. 30, 2022	Sep. 30, 2023 USD ($) letterOfCredit	Sep. 30, 2022	Apr. 25, 2023 USD ($)	Dec. 31, 2022 USD ($)	May 27, 2022 USD ($)	Nov. 24, 2021 USD ($)	Oct. 24, 2019 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility, long-term	$ 78,420,000		$ 78,420,000			$ 71,004,000
Number of standby letters of credit | letterOfCredit	2		2
Ratio of total liability to net worth	0.33		0.33
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	$ 2,300,000		$ 2,300,000
Borrowings available under the revolving credit facility	$ 119,300,000		$ 119,300,000
Debt, weighted average interest rate,	6.50%	3.50%	6.30%	2.50%
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%

v3.23.3

Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Current	$ 14,892	$ 8,763	$ 33,364	$ 17,849
Deferred	521	(436)	(3,917)	(563)
Income tax provision	$ 15,413	$ 8,327	$ 29,447	$ 17,286

v3.23.3

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net of Federal benefit	3.40%	5.00%	4.00%	4.70%
Excess tax benefits related to share-based compensation (Note 12)	(0.80%)	(1.50%)	(3.90%)	(1.60%)
Return to provision	0.90%	(0.40%)	0.30%	(0.50%)
Research and development credits	(0.20%)	(0.70%)	(0.90%)	(1.00%)
Change in valuation allowance (Oklahoma Investment Credit)	0.00%	0.00%	(2.00%)	0.00%
Other	0.00%	(0.10%)	(0.10%)	(0.70%)
Effective tax rate	24.30%	23.30%	18.40%	21.90%

v3.23.3

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Tax Credit Carryforward [Line Items]
Share-based payment arrangement, expense, tax benefit	$ 494	$ 534	$ 6,319	$ 1,253
Expected effective income tax rate for the year			24.10%
Income tax benefit	(15,413)	$ (8,327)	$ (29,447)	$ (17,286)
Investment Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax credit carryforward	3,800		3,800
Income tax benefit	$ 3,100		$ 3,100

v3.23.3

Share-Based Compensation - Additional Information (Details) $ in Thousands				6 Months Ended	9 Months Ended
	Aug. 16, 2023	May 24, 2016 shares	May 22, 2007 shares	Jun. 30, 2023	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	May 12, 2020 shares	May 15, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock split, conversion ratio	1.5
Stock authorized to be issued under plan (in shares) | shares		13,400,000
Total intrinsic value of options exercised during period					$ 27,600	$ 6,700
Cash received from options exercised during period					$ 25,251	$ 10,990
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) | shares		600,000	5,000,000
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) | shares		5,100,000					3,800,000	3,900,000
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					$ 5,000
Weighted average recognition period (in years)					1 year 8 months 12 days
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					$ 10,700
Weighted average recognition period (in years)					1 year 3 months 18 days
Restricted Stock | 2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost					$ 5,700
Weighted average recognition period (in years)					1 year 6 months
Key Employee Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost					$ 300
Weighted average recognition period (in years)					3 months 18 days
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage				20.00%	33.30%

v3.23.3

Share-Based Compensation - Summary of Assumptions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.32	$ 0.25
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	$ 0.32	$ 0.25
Expected volatility	37.89%	36.00%
Risk-free interest rate	4.39%	2.21%
Expected life	4 years	4 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.32	$ 0.25
Expected volatility	38.30%	37.38%
Risk-free interest rate	4.41%	2.20%
Expected life	3 years	3 years

v3.23.3

Share-Based Compensation - Summary of Stock Options Outstanding (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares vested and exercisable (in shares) | shares	2,273,691
Options vested and exercisable weighted average remaining contractual life	5 years 3 months 21 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 28.32
Options vested and exercisable intrinsic value | $	$ 64,918
$8.17 - $41.37
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 13.95
Range of exercise prices, upper range (in dollars per share)	$ 27.58
Number of shares vested and exercisable (in shares) | shares	1,528,983
Options vested and exercisable weighted average remaining contractual life	4 years 6 months 7 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 24.70
Options vested and exercisable intrinsic value | $	$ 49,191
$42.42 - $65.24
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 28.28
Range of exercise prices, upper range (in dollars per share)	$ 37.16
Number of shares vested and exercisable (in shares) | shares	534,293
Options vested and exercisable weighted average remaining contractual life	6 years 8 months 19 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 30.91
Options vested and exercisable intrinsic value | $	$ 13,870
$65.29 - $79.81
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 37.63
Range of exercise prices, upper range (in dollars per share)	$ 69.62
Number of shares vested and exercisable (in shares) | shares	210,415
Options vested and exercisable weighted average remaining contractual life	7 years 5 months 8 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 48.06
Options vested and exercisable intrinsic value | $	$ 1,857

v3.23.3

Share-Based Compensation - Summary of Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	4,560,520
Granted (in shares) | shares	326,506
Exercised (in shares) | shares	(864,524)
Forfeited or Expired (in shares) | shares	(106,291)
Outstanding, end of period (in shares) | shares	3,916,211
Exercisable, end of period (in shares) | shares	2,273,691
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (weighted average exercise price) | $ / shares	$ 30.14
Granted (weighted average exercise price) | $ / shares	61.16
Exercised (weighted average exercise price) | $ / shares	29.19
Forfeited or Expired (weighted average exercise price) | $ / shares	33.90
Outstanding, end of period (weighted average exercise price) | $ / shares	32.83
Exercisable, end of period (weighted average exercise price) | $ / shares	$ 28.32

v3.23.3

Share-Based Compensation - Summary of Unvested Awards (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Restricted Stock
Shares [Roll Forward]
Unvested, beginning of period (in shares)	217,168
Granted (in shares)	73,633
Vested (in shares)	(92,977)
Forfeited (in shares)	(4,846)
Unvested, end of period (in shares)	192,978
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 33.34
Granted (weighted average grant date fair value) | $ / shares	59.70
Vested (weighted average grant date fair value) | $ / shares	32.57
Forfeited (weighted average grant date fair value) | $ / shares	38.52
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 43.64
Performance Award
Shares [Roll Forward]
Unvested, beginning of period (in shares)	93,982
Granted (in shares)	58,130
Vested (in shares)	0
Forfeited (in shares)	0
Unvested, end of period (in shares)	152,112
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 36.62
Granted (weighted average grant date fair value) | $ / shares	84.42
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	$ 54.88
Performance Award | Cliff Vesting December 31, 2023
Shares [Roll Forward]
Vested (in shares)	(22,222)
Performance Award | Cliff Vesting December 31, 2024
Shares [Roll Forward]
Vested (in shares)	(71,760)
Performance Award | Cliff Vesting December 31, 2025
Shares [Roll Forward]
Vested (in shares)	(58,130)
Key Employee Awards
Shares [Roll Forward]
Unvested, beginning of period (in shares)	39,899
Granted (in shares)	0
Vested (in shares)	0
Forfeited (in shares)	0
Unvested, end of period (in shares)	39,899
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 53.45
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	$ 53.45

v3.23.3

Share-Based Compensation - Summary of Unvested Restricted Stock Awards (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	217,168
Granted (in shares) | shares	73,633
Vested (in shares) | shares	(92,977)
Forfeited (in shares) | shares	(4,846)
Unvested, end of period (in shares) | shares	192,978
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 33.34
Granted (weighted average grant date fair value) | $ / shares	59.70
Vested (weighted average grant date fair value) | $ / shares	32.57
Forfeited (weighted average grant date fair value) | $ / shares	38.52
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 43.64

v3.23.3

Share-Based Compensation - Summary of Grant Date Fair Value of Awards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Grant date fair value of awards during the period:
Options	$ 106	$ 480	$ 5,224	$ 5,979
Performance Awards	0	109	4,907	2,190
Restricted stock	246	164	4,396	3,319
Total	352	753	14,527	11,488
Share-based compensation expense:
Options	2,228	2,104	6,604	6,483
PSUs	737	188	1,820	665
Restricted stock	1,053	768	2,903	2,290
Key employee awards	261	261	775	791
Total	4,279	3,321	12,102	10,229
Income tax benefit related to share-based compensation:
Options	478	531	5,639	1,022
Restricted stock	16	3	680	231
Total	$ 494	$ 534	$ 6,319	$ 1,253

v3.23.3

Employee Benefits (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 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	$ 4,497,000	$ 4,189,000	$ 13,164,000	10,768,000
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	6,954,000	4,137,000	$ 17,772,000	8,952,000
Medical premium payments	4,455,000	3,429,000	11,255,000	7,418,000
Health saving account contributions	$ 1,460,000	$ 968,000	$ 3,718,000	$ 2,871,000
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%

v3.23.3

Earnings Per Share (Details) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
		Aug. 16, 2023	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares		Sep. 30, 2022 USD ($) $ / shares shares
Earnings Per Share [Abstract]
Net income | $			$ 48,078	$ 27,473	$ 130,574	[1]	$ 61,478
Basic weighted average shares (in shares)	[2]		81,418,800	79,777,987	81,140,473		79,543,925
Effect of dilutive stock options and restricted stock (in shares)			1,974,254	1,160,087	1,993,664		1,135,815
Effect of dilutive shares related to contingent consideration (in shares)			0	0	141,071		203,058
Diluted weighted average shares (in shares)	[2]		83,393,054	80,938,074	83,275,208		80,882,798
Basic (in dollars per share) | $ / shares	[2]		$ 0.59	$ 0.34	$ 1.61		$ 0.77
Diluted (in dollars per share) | $ / shares	[2]		$ 0.58	$ 0.34	$ 1.57		$ 0.76
Anti-dilutive shares (in shares)			360,408	1,146,759	296,072		1,040,848
Stock split, conversion ratio		1.5
[1] 1 Reflects three-for-two stock split effective August 16, 2023 [2] 1 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

Stockholders' Equity (Details)									3 Months Ended			9 Months Ended			121 Months Ended	164 Months Ended	180 Months Ended
		Aug. 18, 2023 $ / shares	Aug. 16, 2023 USD ($) shares	May 18, 2023 $ / shares	Mar. 01, 2023 $ / shares	Dec. 10, 2021 USD ($) $ / shares shares	Nov. 08, 2018 $ / shares	May 18, 2018 $ / shares	Sep. 30, 2023 USD ($) $ / shares		Sep. 30, 2022 $ / shares	Sep. 30, 2023 USD ($) $ / shares shares		Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)	[2]	Nov. 03, 2022 USD ($)	Mar. 13, 2020 USD ($)
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program, authorized amount																				$ 50	$ 20,000,000
Remaining authorized repurchase amount									$ 25,000,000			$ 25,000,000
Stock repurchased during period (in shares) | shares												423,091		234,011			22,444,127
Aggregate price of shares repurchased since inception												$ 26,211,000		$ 8,921,000		$ 302,976,000
Average price of shares repurchased since inception (per share) | $ / shares												$ 61.95		$ 38.12			$ 13.50
Cash dividends declared per common share (in dollars per share) | $ / shares	[1]								$ 0.08		$ 0	$ 0.24		$ 0.13
Annualized dividends paid per common share (in dollars per share) | $ / shares		$ 0.32		$ 0.32	$ 0.32		$ 0.32	$ 0.26
Stock split, conversion ratio			1.5
Stock split, additional shares issued (in shares) | shares			1
Stock split, original number of shares held (in shares) | shares			2
Cash paid in lieu of fractional shares			$ 500,000
Stock split, common stock value reclass			100,000						$ 325,000	[2]		$ 325,000	[2]					$ 322,000
Stock split, retained earnings reclass			$ (100,000)						$ 572,285,000	[2]		$ 572,285,000	[2]					$ 461,657,000
BasX, LLC
Schedule of Shareholders' Equity [Line Items]
Contingent consideration						$ 78,000,000
Equity interest issued (in shares) | shares						1,560,000
Equity interests issuable (in dollars per share) | $ / shares						$ 0.004
Contingent liability						$ 60,000,000
Shares issued (in shares) | shares												580,000		730,000
Dividend Declared
Schedule of Shareholders' Equity [Line Items]
Cash dividends declared per common share (in dollars per share) | $ / shares		$ 0.08		$ 0.08	$ 0.08		$ 0.16	$ 0.13
Open market
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares) | shares												402,873		53,218	6,893,924
Aggregate price of shares repurchased since inception												$ 25,009,000		$ 2,030,000	$ 106,625,000
Average price of shares repurchased since inception (per share) | $ / shares												$ 62.08		$ 38.14	$ 15.47
401(k)
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares) | shares												0		155,904			12,462,552
Aggregate price of shares repurchased since inception												$ 0		$ 5,913,000			$ 171,789,000
Average price of shares repurchased since inception (per share) | $ / shares												$ 0		$ 37.93			$ 13.78
Employees
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares) | shares												20,218		24,889		3,087,651
Aggregate price of shares repurchased since inception												$ 1,202,000		$ 978,000		$ 24,562,000
Average price of shares repurchased since inception (per share) | $ / shares												$ 59.45		$ 39.29		$ 7.95
[1] 1 Reflects three-for-two stock split effective August 16, 2023. [2] 2 Reflects three-for-two stock split effective August 16, 2023.

v3.23.3

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

v3.23.3

Commitments and Contingencies (Details) - USD ($) $ in Millions				3 Months Ended	9 Months Ended
	Sep. 28, 2023	May 02, 2022	Jan. 24, 2022	Sep. 30, 2023	Sep. 30, 2023	Sep. 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
Litigation Settlement, Amount Awarded to Other Party	$ 7.5

v3.23.3

Related Parties (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2022
Related Party Transaction [Line Items]
Net sales	$ 311,970	$ 242,605	$ 861,880	$ 634,190
Payments to affiliates	90	30	872	1,033
Due from affiliates	160,108		160,108		$ 127,158
Due to affiliates	29,917		29,917		45,513
Percentage of facility purchased						1
Affiliate
Related Party Transaction [Line Items]
Net sales	1,047	$ 450	4,811	$ 3,529
Due from affiliates	190		190		432
Due to affiliates	$ 232		$ 232		$ 0

v3.23.3

Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Net Sales	$ 311,970	$ 242,605	$ 861,880	$ 634,190
Gross Profit	116,109	65,591	287,281	159,031
Long-lived assets	374,537		374,537		$ 317,322
Goodwill	143,793		143,793		146,498
AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	246,454	179,169	666,670	476,517
AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	25,769	30,504	89,262	79,193
BasX
Segment Reporting Information [Line Items]
Net Sales	39,747	32,932	105,948	78,480
Operating Segments | AAON Oklahoma
Segment Reporting Information [Line Items]
Gross Profit	94,174	45,643	231,403	111,216
Long-lived assets	251,298		251,298		213,731
Goodwill	3,229		3,229		3,229
Operating Segments | AAON Coil Products
Segment Reporting Information [Line Items]
Gross Profit	8,307	10,564	22,948	26,344
Long-lived assets	77,434		77,434		68,013
Goodwill	0		0		0
Operating Segments | BasX
Segment Reporting Information [Line Items]
Gross Profit	13,628	9,384	32,930	21,471
Long-lived assets	45,805		45,805		35,578
Goodwill	140,564		140,564		$ 143,269
Inter-segment | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	768	998	3,467	2,157
Inter-segment | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	11,871	8,037	28,687	24,047
Inter-segment | BasX
Segment Reporting Information [Line Items]
Net Sales	(74)	61	1,426	61
Segment Reconciling Items | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	246,454	179,169	666,670	476,517
Segment Reconciling Items | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	25,769	30,504	89,262	79,193
Segment Reconciling Items | BasX
Segment Reporting Information [Line Items]
Net Sales	39,747	32,932	105,948	78,480
Consolidation, Eliminations
Segment Reporting Information [Line Items]
Net Sales	$ (12,565)	$ (9,096)	$ (33,580)	$ (26,265)

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