XML 44 R18.htm IDEA: XBRL DOCUMENT
v3.8.0.1

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION | 12 Months Ended
--- | ---
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK-BASED COMPENSATION | 12. STOCK-BASED COMPENSATION WESCO sponsors four stock-based compensation plans. The 1999 Long-Term Incentive Plan, as amended and restated (“LTIP”), was designed to be the successor plan to all prior plans. Any shares remaining reserved for future issuance under the prior plans are available for issuance under the LTIP. The LTIP and predecessor plans are administered by the Compensation Committee of the Board of Directors. On May 31, 2017, the Company renewed and restated the LTIP, increasing the maximum number of shares of common stock that may be issued under the plan by 1.7 million shares to 3.4 million. Under the LTIP, the total number of shares of common stock authorized to be issued will be reduced by 1 share of common stock for every 1 share that is subject to a stock appreciation right granted, and 1.83 shares of common stock for every 1 share that is subject to an award other than a stock appreciation right granted on or after May 31, 2017. As of December 31, 2017, 3.6 million shares of common stock were reserved under the LTIP for future equity award grants. Except for the performance-based award, awards granted vest and become exercisable once criteria based on time is achieved. Performance-based awards vest based on market or performance conditions. All awards vest immediately in the event of a change in control. Each award terminates on the tenth anniversary of its grant date unless terminated sooner under certain conditions. WESCO recognized $14.8 million, $12.5 million and $12.9 million of non-cash stock-based compensation expense, which is included in selling, general and administrative expenses, for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $18.7 million of total unrecognized compensation expense related to non-vested stock-based compensation arrangements for all awards previously made of which approximately $11.3 million is expected to be recognized in 2018, $6.6 million in 2019 and $0.8 million in 2020. The total intrinsic value of awards exercised during the years ended December 31, 2017, 2016, and 2015 was $17.2 million, $13.0 million, and $15.8 million, respectively. The gross deferred tax benefit associated with the exercise of stock-based awards totaled $6.4 million, $4.9 million, and $5.7 million in 2017, 2016, and 2015, respectively. The following table sets forth a summary of stock-settled stock appreciation rights and related information for the years indicated:
| 2017 |  | 2016 |  | 2015
| Awards |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Life |  | Aggregate Intrinsic Value (In thousands) |  | Awards |  | Weighted-Average Exercise Price |  | Awards |  | Weighted-Average Exercise Price
Beginning of year | 2,439,487 |  |  | $ | 52.62 |  |  |  |  |  |  | 2,567,021 |  |  | $ | 54.47 |  |  | 2,480,745 |  |  | $ | 50.91 |
Granted | 455,807 |  |  | 71.21 |  |  |  |  |  |  | 709,999 |  |  | 42.63 |  |  | 394,182 |  |  | 69.54 |
Exercised | (495,181 | ) |  | 42.19 |  |  |  |  |  |  | (526,818 | ) |  | 41.54 |  |  | (232,542 | ) |  | 35.80 |
Canceled | (161,506 | ) |  | 66.06 |  |  |  |  |  |  | (310,715 | ) |  | 63.71 |  |  | (75,364 | ) |  | 73.59 |
End of year | 2,238,607 |  |  | 57.75 |  |  | 6.2 |  | $ | 28,791 |  |  | 2,439,487 |  |  | 52.62 |  |  | 2,567,021 |  |  | 54.47 |
Exercisable at end of year | 1,331,580 |  |  | $ | 56.96 |  |  | 4.6 |  | $ | 18,801 |  |  | 1,549,350 |  |  | $ | 53.35 |  |  | 2,034,263 |  |  | $ | 49.36 |
WESCO granted the following stock-settled stock appreciation rights at the following weighted-average assumptions:
| 2017 |  | 2016 |  | 2015
Stock-settled stock appreciation rights granted | 455,807 |  | 709,999 |  | 394,182
Risk free interest rate | 1.9% |  | 1.2% |  | 1.6%
Expected life (in years) | 5 |  | 5 |  | 5
Expected volatility | 29% |  | 32% |  | 32%
The weighted-average fair value per stock-settled stock appreciation right granted was $20.52, $12.88 and $21.68 for the years ended December 31, 2017, 2016 and 2015, respectively. The following table sets forth a summary of time-based restricted stock units and related information for the years ended December 31, 2017, 2016 and 2015:
| 2017 |  | 2016 |  | 2015
| Awards |  | Weighted-Average Fair Value |  | Awards |  | Weighted-Average Fair Value |  | Awards |  | Weighted-Average Fair Value
Unvested at beginning of year | 257,096 |  |  | $ | 57.47 |  |  | 175,411 |  |  | $ | 74.52 |  |  | 185,457 |  |  | $ | 73.87 |
Granted | 100,993 |  |  | 71.33 |  |  | 162,256 |  |  | 44.45 |  |  | 81,022 |  |  | 69.05 |
Vested | (44,720 | ) |  | 84.57 |  |  | (60,015 | ) |  | 72.41 |  |  | (76,387 | ) |  | 66.89 |
Forfeited | (23,315 | ) |  | 57.52 |  |  | (20,556 | ) |  | 59.15 |  |  | (14,681 | ) |  | 75.73 |
Unvested at end of year | 290,054 |  |  | $ | 58.11 |  |  | 257,096 |  |  | $ | 57.47 |  |  | 175,411 |  |  | $ | 74.52 |
The weighted-average fair value per restricted stock unit granted was $71.33, $44.45 and $69.05 for the years ended December 31, 2017, 2016 and 2015, respectively. The following table sets forth a summary of performance-based awards for the year ended December 31, 2017:
| 2017 |  | 2016 |  | 2015
| Awards |  | Weighted-Average Fair Value |  | Awards |  | Weighted-Average Fair Value |  | Awards |  | Weighted-Average Fair Value
Unvested at beginning of year | 149,320 |  |  | $ | 60.36 |  |  | 114,520 |  |  | $ | 76.48 |  |  | 130,004 |  |  | $ | 80.21 |
Granted | 39,978 |  |  | 76.63 |  |  | 91,768 |  |  | 47.00 |  |  | 59,661 |  |  | 67.81 |
Vested | — |  |  | — |  |  | — |  |  | — |  |  | (38,869 | ) |  | 72.25 |
Forfeited | (40,790 | ) |  | 76.77 |  |  | (56,968 | ) |  | 71.25 |  |  | (36,276 | ) |  | 80.14 |
Unvested at end of year | 148,508 |  |  | $ | 60.23 |  |  | 149,320 |  |  | $ | 60.36 |  |  | 114,520 |  |  | $ | 76.48 |
The weighted-average fair value per performance-based award granted was $76.63, $47.00 and $67.81 for the years ended December 31, 2017, 2016 and 2015, respectively. The fair value of the performance shares based on total stockholder return granted during the year ended December 31, 2017, 2016 and 2015 were estimated using the following weighted-average assumptions:
| Year ended December 31,
| 2017 |  | 2016 |  | 2015
Grant date share price | $ | 71.65 |  |  | $ | 42.44 |  |  | $ | 69.54 |
WESCO expected volatility | 29 | % |  | 26 | % |  | 27 | %
Peer group median volatility | 24 | % |  | 24 | % |  | 23 | %
Risk-free interest rate | 1.5 | % |  | 0.9 | % |  | 1.1 | %
Correlation | 114 | % |  | 122 | % |  | 96 | %
The unvested performance-based awards in the table above include 74,254 shares in which vesting of the ultimate number of shares is dependent upon WESCO's total stockholder return in relation to the total stockholder return of a select group of peer companies over a three-year period. The fair value of these awards is determined using a Monte Carlo simulation model. These awards are accounted for as awards with market conditions; compensation cost is recognized over the service period, regardless of whether the market conditions are achieved and the awards ultimately vest. Vesting of the remaining 74,254 shares of performance-based awards in the table above is dependent upon the three-year average growth rate of WESCO's net income. The fair value of these awards is based upon the grant-date closing price of WESCO's common stock. These awards are accounted for as awards with performance conditions; compensation cost is recognized over the performance period based upon WESCO's determination of whether it is probable that the performance targets will be achieved.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration