15. 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, WESCO Distribution and the non-guarantor subsidiaries is presented in the following tables.



	Condensed Consolidating Balance Sheet
	December 31, 2017
	(In thousands)
	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	50,602	$	67,351		$	—		$	117,953
Trade accounts receivable, net	—		—		1,170,080			—			1,170,080
Inventories	—		430,092		526,056			—			956,148
Prepaid expenses and other current assets	4,730		42,547		152,531			(35,140		)	164,668
Total current assets	4,730		523,241		1,916,018			(35,140		)	2,408,849
Intercompany receivables, net	—		—		2,189,136			(2,189,136		)	—
Property, buildings and equipment, net	—		50,198		106,247			—			156,445
Intangible assets, net	—		2,770		364,334			—			367,104
Goodwill	—		257,623		1,514,254			—			1,771,877
Investments in affiliates	3,058,613		5,023,826		—			(8,082,439		)	—
Other assets	—		2,778		28,415			—			31,193
Total assets	$	3,063,343	$	5,860,436	$	6,118,404		$	(10,306,715	)	$	4,735,468

Accounts payable	$	—	$	417,690	$	381,830		$	—		$	799,520
Short-term debt	—		—		34,075			—			34,075
Other current liabilities	—		80,039		162,475			(35,140		)	207,374
Total current liabilities	—		497,729		578,380			(35,140		)	1,040,969
Intercompany payables, net	939,784		1,249,352		—			(2,189,136		)	—
Long-term debt	—		934,033		379,228			—			1,313,261
Other noncurrent liabilities	3,820		120,709		140,566			—			265,095
Total WESCO International stockholders’ equity	2,119,739		3,058,613		5,023,826			(8,082,439		)	2,119,739
Noncontrolling interests	—		—		(3,596		)	—			(3,596		)
Total liabilities and stockholders’ equity	$	3,063,343	$	5,860,436	$	6,118,404		$	(10,306,715	)	$	4,735,468



	Condensed Consolidating Balance Sheet
	December 31, 2016
	(In thousands)
	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		34,833		211,637			(123,013		)	137,104
Total current assets	13,647		440,947		1,771,497			(123,013		)	2,103,078
Intercompany receivables, net	—		—		2,060,336			(2,060,336		)	—
Property, buildings and equipment, net	—		51,824		105,783			—			157,607
Intangible assets, net	—		3,417		389,945			—			393,362
Goodwill	—		257,623		1,473,327			—			1,730,950
Investments in affiliates	3,538,476		4,028,502		—			(7,566,978		)	—
Other assets	—		23,846		22,998			—			46,844
Total assets	$	3,552,123	$	4,806,159	$	5,823,886		$	(9,750,327	)	$	4,431,841

Accounts payable	$	—	$	381,795	$	302,926		$	—		$	684,721
Short-term debt	—		—		20,920			—			20,920
Other current liabilities	—		120,299		170,872			(123,013		)	168,158
Total current liabilities	—		502,094		494,718			(123,013		)	873,799
Intercompany payables, net	1,572,486		487,850		—			(2,060,336		)	—
Long-term debt	—		983,449		379,686			—			1,363,135
Other noncurrent liabilities	12,737		55,898		162,641			—			231,276
Total WESCO International stockholders’ equity	1,966,900		2,776,868		4,790,110			(7,566,978		)	1,966,900
Noncontrolling interests	—		—		(3,269		)	—			(3,269		)
Total liabilities and stockholders’ equity	$	3,552,123	$	4,806,159	$	5,823,886		$	(9,750,327	)	$	4,431,841



	Condensed Consolidating Statement of Income and Comprehensive Income
	Year ended December 31, 2017
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	3,370,088		$	4,441,655		$	(132,722	)	$	7,679,021
Cost of goods sold (excluding depreciation and	—			2,714,511			3,612,577			(132,722		)	6,194,366
amortization)
Selling, general and administrative expenses	—			555,503			544,245			—			1,099,748
Depreciation and amortization	—			18,442			45,575			—			64,017
Results of affiliates’ operations	160,587			168,782			—			(329,369		)	—
Interest expense (income), net	—			94,313			(25,863		)	—			68,450
Provision for income taxes	(2,546		)	(4,486		)	96,339			—			89,307
Net income	163,133			160,587			168,782			(329,369		)	163,133
Less: Net loss attributable to noncontrolling interests	—			—			(327		)	—			(327		)
Net income attributable to WESCO International	$	163,133		$	160,587		$	169,109		$	(329,369	)	$	163,460
Other comprehensive income (loss):
Foreign currency translation adjustments	85,762			85,762			85,762			(171,524		)	85,762
Post retirement benefit plan adjustments	(6,381		)	(6,381		)	(6,381		)	12,762			(6,381		)
Comprehensive income attributable to WESCO International	$	242,514		$	239,968		$	248,490		$	(488,131	)	$	242,841



	Condensed Consolidating Statement of Income and Comprehensive Income
	Year ended December 31, 2016
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	3,306,265		$	4,134,508		$	(104,756	)	$	7,336,017
Cost of goods sold (excluding depreciation and	—			2,651,409			3,341,161			(104,756		)	5,887,814
amortization)
Selling, general and administrative expenses	61			477,437			571,788			—			1,049,286
Depreciation and amortization	—			20,226			46,632			—			66,858
Results of affiliates’ operations	240,571			155,814			—			(396,385		)	—
Interest expense (income), net	17,555			87,824			(28,804		)	—			76,575
Loss on debt redemption	123,933			—			—			—			123,933
Provision for income taxes	(2,098		)	8,263			24,266			—			30,431
Net income	101,120			216,920			179,465			(396,385		)	101,120
Less: Net loss attributable to noncontrolling interests	—			—			(468		)	—			(468		)
Net income attributable to WESCO International	$	101,120		$	216,920		$	179,933		$	(396,385	)	$	101,588
Other comprehensive income (loss):
Foreign currency translation adjustments	38,275			38,275			38,275			(76,550		)	38,275
Post retirement benefit plan adjustments	(2,485		)	(2,485		)	(2,485		)	4,970			(2,485		)
Comprehensive income attributable to WESCO International	$	136,910		$	252,710		$	215,723		$	(467,965	)	$	137,378



	Condensed Consolidating Statement of Income and Comprehensive Income (Loss)
	Year ended December 31, 2015
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	3,456,883		$	4,177,383		$	(115,779	)	$	7,518,487
Cost of goods sold (excluding depreciation and	—			2,784,413			3,356,192			(115,779		)	6,024,826
amortization)
Selling, general and administrative expenses	26			611,549			443,376			—			1,054,951
Depreciation and amortization	—			19,703			45,265			—			64,968
Results of affiliates’ operations	225,370			219,619			—			(444,989		)	—
Interest expense (income), net	24,910			63,261			(18,339		)	—			69,832
Provision for income taxes	(7,939		)	(6,929		)	110,405			—			95,537
Net income	$	208,373		$	204,505		$	240,484		$	(444,989	)	$	208,373
Less: Net loss attributable to noncontrolling interests	—			—			(2,314		)	—			(2,314		)
Net income attributable to WESCO International	$	208,373		$	204,505		$	242,798		$	(444,989	)	$	210,687
Other comprehensive income (loss):
Foreign currency translation adjustments	(225,795		)	(225,795		)	(225,795		)	451,590			(225,795		)
Post retirement benefit plan adjustments	4,532			4,532			4,532			(9,064		)	4,532
Comprehensive (loss) income attributable to WESCO International	$	(12,890	)	$	(16,758	)	$	21,535		$	(2,463	)	$	(10,576	)



	Condensed Consolidating Statement of Cash Flows
	Year ended December 31, 2017
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(36,575	)	$	101,826		$	83,871		$	—		$	149,122
Investing activities:
Capital expenditures	—			(13,215		)	(8,292		)	—			(21,507		)
Proceeds from sale of assets	—			—			6,766			—			6,766
Dividends received from subsidiaries	—			307,784			—			(307,784		)	—
Advances to subsidiaries and other	—			(383,686		)	26,912			366,220			9,446
Net cash (used in) provided by investing activities	—			(89,117		)	25,386			58,436			(5,295		)
Financing activities:
Proceeds from issuance of debt	143,367			775,926			1,144,848			(383,686		)	1,680,455
Repayments of debt	—			(785,392		)	(952,740		)	17,466			(1,720,666		)
Equity activities	(106,792		)	—			—			—			(106,792		)
Dividends paid by subsidiaries	—			—			(307,784		)	307,784			—
Other	—			5,807			—			—			5,807
Net cash provided by (used in) financing activities	36,575			(3,659		)	(115,676		)	(58,436		)	(141,196		)
Effect of exchange rate changes on cash and cash equivalents	—			—			5,191			—			5,191
Net change in cash and cash equivalents	—			9,050			(1,228		)	—			7,822
Cash and cash equivalents at the beginning of period	—			41,552			68,579			—			110,131
Cash and cash equivalents at the end of period	$	—		$	50,602		$	67,351		$	—		$	117,953



	Condensed Consolidating Statement of Cash Flows
	Year ended December 31, 2016
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	95,388		$	(243,476	)	$	448,323		$	—		$	300,235
Investing activities:
Capital expenditures	—			(12,482		)	(5,475		)	—			(17,957		)
Acquisition payments, net of cash acquired	—			(50,890		)	—			—			(50,890		)
Proceeds from sale of assets	—			—			8,361			—			8,361
Dividends received from subsidiaries	—			82,912			—			(82,912		)	—
Advances to subsidiaries and other	—			(297,259		)	(337,344		)	624,603			(10,000		)
Net cash used in investing activities	—			(277,719		)	(334,458		)	541,691			(70,486		)
Financing activities:
Proceeds from issuance of debt	252,246			1,566,864			672,345			(297,259		)	2,194,196
Repayments of debt	(344,804		)	(1,030,520		)	(752,401		)	(327,344		)	(2,455,069		)
Equity activities	(2,830		)	—			—			—			(2,830		)
Dividends paid by subsidiaries	—			—			(82,912		)	82,912			—
Other	—			(12,560		)	—			—			(12,560		)
Net cash (used in) provided by financing activities	(95,388		)	523,784			(162,968		)	(541,691		)	(276,263		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3,634		)	—			(3,634		)
Net change in cash and cash equivalents	—			2,589			(52,737		)	—			(50,148		)
Cash and cash equivalents at the beginning of period	—			38,963			121,316			—			160,279
Cash and cash equivalents at the end of period	$	—		$	41,552		$	68,579		$	—		$	110,131



	Condensed Consolidating Statement of Cash Flows
	Year ended December 31, 2015
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by operating activities	$	3,531		$	214,037		$	65,481		$	—		$	283,049
Investing activities:
Capital expenditures	—			(15,266		)	(6,392		)	—			(21,658		)
Acquisition payments, net of cash acquired	—			(151,595		)	—			—			(151,595		)
Proceeds from sale of assets	—			—			3,023			—			3,023
Dividends received from subsidiaries	—			114,101			—			(114,101		)	—
Advances to subsidiaries and other	—			(197,345		)	17,461			179,884			—
Net cash (used in) provided by investing activities	—			(250,105		)	14,092			65,783			(170,230		)
Financing activities:
Proceeds from issuance of debt	150,705			1,224,596			452,655			(197,345		)	1,630,611
Repayments of debt	—			(1,175,056		)	(379,578		)	17,461			(1,537,173		)
Equity activities	(154,236		)	—			—			—			(154,236		)
Dividends paid by subsidiaries	—			—			(114,101		)	114,101			—
Other	—			(7,017		)	—			—			(7,017		)
Net cash provided by (used in) financing activities	(3,531		)	42,523			(41,024		)	(65,783		)	(67,815		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(13,044		)	—			(13,044		)
Net change in cash and cash equivalents	—			6,455			25,505			—			31,960
Cash and cash equivalents at the beginning of period	—			32,508			95,811			—			128,319
Cash and cash equivalents at the end of period	$	—		$	38,963		$	121,316		$	—		$	160,279

Revisions

As described in Note 2, the Consolidated Balance Sheet at December 31, 2016 has been revised to correct certain financial statement line items.