10. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

WESCO Distribution has outstanding $500 million in aggregate principal amount of 2021 Notes and $350 million in aggregate principal amount of 2024 Notes. The 2021 Notes and 2024 Notes are unsecured senior obligations of WESCO Distribution and are fully and unconditionally guaranteed on a senior unsecured basis by WESCO International.

Condensed consolidating financial information for WESCO International, Inc., WESCO Distribution, Inc. and the non-guarantor subsidiaries is presented in the following tables.



	Condensed Consolidating Balance Sheet
	March 31, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	47,034	$	55,966		$	—		$	103,000
Trade accounts receivable, net	—		—		1,060,574			—			1,060,574
Inventories	—		378,004		472,114			—			850,118
Prepaid expenses and other current assets	13,646		16,747		206,022			(46,747		)	189,668
Total current assets	13,646		441,785		1,794,676			(46,747		)	2,203,360
Intercompany receivables, net	—		—		2,074,583			(2,074,583		)	—
Property, buildings and equipment, net	—		51,250		105,338			—			156,588
Intangible assets, net	—		3,255		382,049			—			385,304
Goodwill	—		244,648		1,480,899			—			1,725,547
Investments in affiliates	3,634,476		4,064,912		—			(7,699,388		)	—
Other assets	—		18,615		21,835			—			40,450
Total assets	$	3,648,122	$	4,824,465	$	5,859,380		$	(9,820,718	)	$	4,511,249

Accounts payable	$	—	$	396,633	$	315,752		$	—		$	712,385
Short-term debt	—		—		28,037			—			28,037
Other current liabilities	—		50,519		175,875			(46,747		)	179,647
Total current liabilities	—		447,152		519,664			(46,747		)	920,069
Intercompany payables, net	1,574,705		499,878		—			(2,074,583		)	—
Long-term debt, net	—		965,067		344,733			—			1,309,800
Other noncurrent liabilities	12,737		45,986		165,174			—			223,897
Total WESCO International, Inc. stockholders' equity	2,060,680		2,866,382		4,833,006			(7,699,388		)	2,060,680
Noncontrolling interests	—		—		(3,197		)	—			(3,197		)
Total liabilities and stockholders’ equity	$	3,648,122	$	4,824,465	$	5,859,380		$	(9,820,718	)	$	4,511,249



	Condensed Consolidating Balance Sheet
	December 31, 2016

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	41,552	$	68,579		$	—		$	110,131
Trade accounts receivable, net	—		—		1,034,402			—			1,034,402
Inventories	—		364,562		456,879			—			821,441
Prepaid expenses and other current assets	13,647		24,214		225,412			(56,790		)	206,483
Total current assets	13,647		430,328		1,785,272			(56,790		)	2,172,457
Intercompany receivables, net	—		—		2,056,783			(2,056,783		)	—
Property, buildings and equipment, net	—		51,824		105,783			—			157,607
Intangible assets, net	—		3,417		389,945			—			393,362
Goodwill	—		244,648		1,476,066			—			1,720,714
Investments in affiliates	3,584,857		4,018,661		—			(7,603,518		)	—
Other assets	—		23,846		22,998			—			46,844
Total assets	$	3,598,504	$	4,772,724	$	5,836,847		$	(9,717,091	)	$	4,490,984

Accounts payable	$	—	$	381,795	$	302,926		$	—		$	684,721
Short-term debt	—		—		20,920			—			20,920
Other current liabilities	—		53,458		194,488			(56,790		)	191,156
Total current liabilities	—		435,253		518,334			(56,790		)	896,797
Intercompany payables, net	1,572,486		484,297		—			(2,056,783		)	—
Long-term debt, net	—		983,449		379,686			—			1,363,135
Other noncurrent liabilities	12,737		46,476		161,827			—			221,040
Total WESCO International, Inc. stockholders' equity	2,013,281		2,823,249		4,780,269			(7,603,518		)	2,013,281
Noncontrolling interests	—		—		(3,269		)	—			(3,269		)
Total liabilities and stockholders’ equity	$	3,598,504	$	4,772,724	$	5,836,847		$	(9,717,091	)	$	4,490,984



	Condensed Consolidating Statement of Income and Comprehensive Income
	Three Months Ended
	March 31, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	778,611		$	1,019,654		$	(25,674	)	$	1,772,591
Cost of goods sold (excluding depreciation and
amortization)	—		621,748			826,499			(25,674		)	1,422,573
Selling, general and administrative expenses	—		135,257			131,707			—			266,964
Depreciation and amortization	—		4,753			11,212			—			15,965
Results of affiliates’ operations	37,800		34,428			—			(72,228		)	—
Interest expense (income), net	—		21,008			(4,287		)	—			16,721
Income tax (benefit) expense	—		(1,037		)	13,605			—			12,568
Net income	37,800		31,310			40,918			(72,228		)	37,800
Net income attributable to noncontrolling interests	—		—			71			—			71
Net income attributable to WESCO International, Inc.	$	37,800	$	31,310		$	40,847		$	(72,228	)	$	37,729
Other comprehensive income:
Foreign currency translation adjustments	11,568		11,568			11,568			(23,136		)	11,568
Post retirement benefit plan adjustment	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International, Inc.	$	49,620	$	43,130		$	52,667		$	(95,868	)	$	49,549



	Condensed Consolidating Statement of Income and Comprehensive Income
	Three Months Ended
	March 31, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	800,490		$	1,000,045		$	(24,574	)	$	1,775,961
Cost of goods sold (excluding depreciation and
amortization)	—			639,673			805,694			(24,574		)	1,420,793
Selling, general and administrative expenses	(378		)	80,208			189,456			—			269,286
Depreciation and amortization	—			5,106			11,268			—			16,374
Results of affiliates’ operations	38,459			(8,684		)	—			(29,775		)	—
Interest expense (income), net	6,318			18,859			(6,348		)	—			18,829
Provision for income taxes	(2,015		)	18,046			114			—			16,145
Net income (loss)	34,534			29,914			(139		)	(29,775		)	34,534
Net loss attributable to noncontrolling interests	—			—			(1,519		)	—			(1,519		)
Net income attributable to WESCO International, Inc.	$	34,534		$	29,914		$	1,380		$	(29,775	)	$	36,053
Other comprehensive income (loss):
Foreign currency translation adjustments	82,270			82,270			82,270			(164,540		)	82,270
Post retirement benefit plan adjustment	(16		)	(16		)	(16		)	32			(16		)
Comprehensive income attributable to WESCO International, Inc.	$	116,788		$	112,168		$	83,634		$	(194,283	)	$	118,307



	Condensed Consolidating Statement of Cash Flows
	Three Months Ended
	March 31, 2017

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by operating activities	$	4,316		$	24,580		$	18,744		$	—		$	47,640
Investing activities:
Capital expenditures	—			(1,487		)	(3,003		)	—			(4,490		)
Dividends received from subsidiaries	—			16,979			—			(16,979		)	—
Other	—			(14,834		)	4,398			10,469			33
Net cash provided by (used in) investing activities	—			658			1,395			(6,510		)	(4,457		)
Financing activities:
Borrowings	2,220			167,299			164,118			(14,834		)	318,803
Repayments	—			(190,665		)	(180,265		)	4,365			(366,565		)
Repurchases of common stock	(6,536		)	—			—			—			(6,536		)
Increase in bank overdrafts	—			4,062			—			—			4,062
Dividends paid by subsidiaries	—			—			(16,979		)	16,979			—
Other	—			(452		)	—			—			(452		)
Net cash used in financing activities	(4,316		)	(19,756		)	(33,126		)	6,510			(50,688		)
Effect of exchange rate changes on cash and cash equivalents	—			—			374			—			374
Net change in cash and cash equivalents	—			5,482			(12,613		)	—			(7,131		)
Cash and cash equivalents at the beginning of period	—			41,552			68,579			—			110,131
Cash and cash equivalents at the end of period	$	—		$	47,034		$	55,966		$	—		$	103,000



	Condensed Consolidating Statement of Cash Flows
	Three Months Ended
	March 31, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(3,138	)	$	62,678		$	19,028		$	—		$	78,568
Investing activities:
Capital expenditures	—			(3,084		)	(524		)	—			(3,608		)
Acquisition payments, net of cash acquired	—			(50,348		)	—			—			(50,348		)
Dividends received from subsidiaries	—			15,310			—			(15,310		)	—
Other	—			(14,548		)	(3,783		)	10,183			(8,148		)
Net cash used in investing activities	—			(52,670		)	(4,307		)	(5,127		)	(62,104		)
Financing activities:
Borrowings	3,603			284,972			69,969			(14,548		)	343,996
Repayments	—			(309,337		)	(84,893		)	4,365			(389,865		)
Increase in bank overdrafts	—			11,972			—			—			11,972
Dividends paid by subsidiaries	—			—			(15,310		)	15,310			—
Other	(465		)	(412		)	—			—			(877		)
Net cash provided by (used in) financing activities	3,138			(12,805		)	(30,234		)	5,127			(34,774		)
Effect of exchange rate changes on cash and cash equivalents	—			—			5,865			—			5,865
Net change in cash and cash equivalents	—			(2,797		)	(9,648		)	—			(12,445		)
Cash and cash equivalents at the beginning of period	—			38,963			121,316			—			160,279
Cash and cash equivalents at the end of period	$	—		$	36,166		$	111,668		$	—		$	147,834