10. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

WESCO Distribution has outstanding $500 million in aggregate principal amount of 5.375% Senior Notes due 2021 (the "2021 Notes") and $350 million in aggregate principal amount of 5.375% Senior Notes due 2024 (the "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
	June 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	36,138	$	51,661		$	—		$	87,799
Trade accounts receivable, net	—		—		1,144,978			—			1,144,978
Inventories	—		379,826		486,475			—			866,301
Prepaid expenses and other current assets	13,652		24,311		212,335			(43,831		)	206,467
Total current assets	13,652		440,275		1,895,449			(43,831		)	2,305,545
Intercompany receivables, net	—		—		2,118,924			(2,118,924		)	—
Property, buildings and equipment, net	—		49,797		105,406			—			155,203
Intangible assets, net	—		3,094		377,332			—			380,426
Goodwill	—		244,648		1,496,892			—			1,741,540
Investments in affiliates	3,717,402		4,139,039		—			(7,856,441		)	—
Other assets	—		18,615		22,342						40,957
Total assets	$	3,731,054	$	4,895,468	$	6,016,345		$	(10,019,196	)	$	4,623,671

Accounts payable	$	—	$	413,605	$	355,392		$	—		$	768,997
Short-term debt	—		—		23,972			—			23,972
Other current liabilities	—		39,699		175,569			(43,831		)	171,437
Total current liabilities	—		453,304		554,933			(43,831		)	964,406
Intercompany payables, net	1,620,034		498,890		—			(2,118,924		)	—
Long-term debt, net	—		958,697		375,845			—			1,334,542
Other noncurrent liabilities	12,741		49,577		167,299			—			229,617
Total WESCO International, Inc. stockholders' equity	2,098,279		2,935,000		4,921,441			(7,856,441		)	2,098,279
Noncontrolling interests	—		—		(3,173		)	—			(3,173		)
Total liabilities and stockholders’ equity	$	3,731,054	$	4,895,468	$	6,016,345		$	(10,019,196	)	$	4,623,671



	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
	June 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	843,518		$	1,100,661		$	(34,555	)	$	1,909,624
Cost of goods sold (excluding depreciation and
amortization)	—		683,064			895,001			(34,555		)	1,543,510
Selling, general and administrative expenses	—		134,730			132,558			—			267,288
Depreciation and amortization	—		4,583			11,138			—			15,721
Results of affiliates’ operations	49,535		40,753			—			(90,288		)	—
Interest expense (income), net	—		28,518			(11,702		)	—			16,816
Income tax (benefit) expense	—		(1,862		)	18,616			—			16,754
Net income	49,535		35,238			55,050			(90,288		)	49,535
Net income attributable to noncontrolling interests	—		—			25			—			25
Net income attributable to WESCO International, Inc.	$	49,535	$	35,238		$	55,025		$	(90,288	)	$	49,510
Other comprehensive income:
Foreign currency translation adjustments	33,381		33,381			33,381			(66,762		)	33,381
Comprehensive income attributable to WESCO International, Inc.	$	82,916	$	68,619		$	88,406		$	(157,050	)	$	82,891



	Condensed Consolidating Statement of Income and Comprehensive Income
	Three Months Ended
	June 30, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	853,028		$	1,087,050		$	(28,496	)	$	1,911,582
Cost of goods sold (excluding depreciation and
amortization)	—			682,808			877,801			(28,496		)	1,532,113
Selling, general and administrative expenses	11			142,942			131,570			—			274,523
Depreciation and amortization	—			5,098			11,861			—			16,959
Results of affiliates’ operations	54,511			42,518			—			(97,029		)	—
Interest expense (income), net	6,333			20,845			(7,726		)	—			19,452
Income tax (benefit) expense	(1,685		)	(1,108		)	21,476			—			18,683
Net income	49,852			44,961			52,068			(97,029		)	49,852
Net income attributable to noncontrolling interests	—			—			54			—			54
Net income attributable to WESCO International, Inc.	$	49,852		$	44,961		$	52,014		$	(97,029	)	$	49,798
Other comprehensive loss:
Foreign currency translation adjustments	(1,765		)	(1,765		)	(1,765		)	3,530			(1,765		)
Comprehensive income attributable to WESCO International, Inc.	$	48,087		$	43,196		$	50,249		$	(93,499	)	$	48,033



	Condensed Consolidating Statement of Income and Comprehensive Income
	Six Months Ended
	June 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	1,622,129		$	2,120,315		$	(60,229	)	$	3,682,215
Cost of goods sold (excluding depreciation and
amortization)	—		1,304,812			1,721,500			(60,229		)	2,966,083
Selling, general and administrative expenses	—		269,986			264,266			—			534,252
Depreciation and amortization	—		9,336			22,350			—			31,686
Results of affiliates’ operations	87,334		75,181			—			(162,515		)	—
Interest expense (income), net	—		49,525			(15,988		)	—			33,537
Income tax (benefit) expense	—		(2,898		)	32,221			—			29,323
Net income	87,334		66,549			95,966			(162,515		)	87,334
Net income attributable to noncontrolling interests	—		—			96			—			96
Net income attributable to WESCO International, Inc.	$	87,334	$	66,549		$	95,870		$	(162,515	)	$	87,238
Other comprehensive income:
Foreign currency translation adjustments	44,949		44,949			44,949			(89,898		)	44,949
Post retirement benefit plan adjustment	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International, Inc.	$	132,535	$	111,750		$	141,071		$	(252,917	)	$	132,439



	Condensed Consolidating Statement of Income and Comprehensive Income
	Six Months Ended
	June 30, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	1,653,518		$	2,087,095		$	(53,070	)	$	3,687,543
Cost of goods sold (excluding depreciation and
amortization)	—			1,322,481			1,683,495			(53,070		)	2,952,906
Selling, general and administrative expenses	(366		)	223,149			321,026			—			543,809
Depreciation and amortization	—			10,203			23,129			—			33,332
Results of affiliates’ operations	92,970			33,834			—			(126,804		)	—
Interest expense (income), net	12,651			39,704			(14,074		)	—			38,281
Income tax (benefit) expense	(3,702		)	16,939			21,591			—			34,828
Net income	84,387			74,876			51,928			(126,804		)	84,387
Net loss attributable to noncontrolling interests	—			—			(1,465		)	—			(1,465		)
Net income attributable to WESCO International, Inc.	$	84,387		$	74,876		$	53,393		$	(126,804	)	$	85,852
Other comprehensive income:
Foreign currency translation adjustments	80,505			80,505			80,505			(161,010		)	80,505
Post retirement benefit plan adjustment	(16		)	(16		)	(16		)	32			(16		)
Comprehensive income attributable to WESCO International, Inc.	$	164,876		$	155,365		$	133,882		$	(287,782	)	$	166,341



	Condensed Consolidating Statement of Cash Flows
	Six Months Ended
	June 30, 2017

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	9,117		$	73,130		$	(15,478	)	$	—		$	66,769
Investing activities:
Capital expenditures	—			(4,259		)	(5,536		)	—			(9,795		)
Dividends received from subsidiaries	—			33,818			—			(33,818		)	—
Other	—			(72,761		)	12,322			63,906			3,467
Net cash (used in) provided by investing activities	—			(43,202		)	6,786			30,088			(6,328		)
Financing activities:
Borrowings	47,548			313,749			442,674			(72,636		)	731,335
Repayments	—			(348,478		)	(420,847		)	8,730			(760,595		)
Repurchases of common stock	(56,665		)	—			—			—			(56,665		)
Dividends paid by subsidiaries	—			—			(33,818		)	33,818			—
Other	—			(613		)	—			—			(613		)
Net cash used in financing activities	(9,117		)	(35,342		)	(11,991		)	(30,088		)	(86,538		)
Effect of exchange rate changes on cash and cash equivalents	—			—			3,765			—			3,765
Net change in cash and cash equivalents	—			(5,414		)	(16,918		)	—			(22,332		)
Cash and cash equivalents at the beginning of period	—			41,552			68,579			—			110,131
Cash and cash equivalents at the end of period	$	—		$	36,138		$	51,661		$	—		$	87,799



	Condensed Consolidating Statement of Cash Flows
	Six Months Ended
	June 30, 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	$	(233	)	$	(236,891	)	$	375,734		$	—		$	138,610
Investing activities:
Capital expenditures	—			(5,507		)	(1,579		)	—			(7,086		)
Acquisition payments, net of cash acquired	—			(50,946		)	—			—			(50,946		)
Dividends received from subsidiaries	—			31,234			—			(31,234		)	—
Other	—			(23,477		)	627			14,747			(8,103		)
Net cash used in investing activities	—			(48,696		)	(952		)	(16,487		)	(66,135		)
Financing activities:
Borrowings	973			919,017			193,624			(23,477		)	1,090,137
Repayments	—			(636,747		)	(537,712		)	8,730			(1,165,729		)
Dividends paid by subsidiaries	—			—			(31,234		)	31,234			—
Other	(740		)	152			—			—			(588		)
Net cash provided by (used in) financing activities	233			282,422			(375,322		)	16,487			(76,180		)
Effect of exchange rate changes on cash and cash equivalents	—			—			3,716			—			3,716
Net change in cash and cash equivalents	—			(3,165		)	3,176			—			11
Cash and cash equivalents at the beginning of period	—			38,963			121,316			—			160,279
Cash and cash equivalents at the end of period	$	—		$	35,798		$	124,492		$	—		$	160,290