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



	Condensed Consolidating Balance Sheet
	March 31, 2018

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	66,313	$	57,584		$	—		$	123,897
Trade accounts receivable, net	—		—		1,205,046			—			1,205,046
Inventories	—		424,167		525,344			—			949,511
Prepaid expenses and other current assets	4,943		23,444		131,937			(20,107		)	140,217
Total current assets	4,943		513,924		1,919,911			(20,107		)	2,418,671
Intercompany receivables, net	—		—		2,230,504			(2,230,504		)	—
Property, buildings and equipment, net	—		52,249		104,115			—			156,364
Intangible assets, net	—		2,611		350,687			—			353,298
Goodwill	—		257,623		1,498,056			—			1,755,679
Investments in affiliates	3,072,786		5,040,227		—			(8,113,013		)	—
Other assets	—		2,780		26,521			—			29,301
Total assets	$	3,077,729	$	5,869,414	$	6,129,794		$	(10,363,624	)	$	4,713,313

Accounts payable	$	—	$	422,681	$	382,699		$	—		$	805,380
Short-term debt	—		—		41,692			—			41,692
Other current liabilities	—		53,780		140,856			(20,107		)	174,529
Total current liabilities	—		476,461		565,247			(20,107		)	1,021,601
Intercompany payables, net	935,949		1,294,555		—			(2,230,504		)	—
Long-term debt, net	—		902,701		389,393			—			1,292,094
Other noncurrent liabilities	3,820		122,911		139,973			—			266,704
Total WESCO International, Inc. stockholders' equity	2,137,960		3,072,786		5,040,227			(8,113,013		)	2,137,960
Noncontrolling interests	—		—		(5,046		)	—			(5,046		)
Total liabilities and stockholders’ equity	$	3,077,729	$	5,869,414	$	6,129,794		$	(10,363,624	)	$	4,713,313



	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, net	—		934,033		379,228			—			1,313,261
Other noncurrent liabilities	3,820		120,709		140,566			—			265,095
Total WESCO International, Inc. 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 Statement of Income and Comprehensive Income
	Three Months Ended
	March 31, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	882,399		$	1,150,110		$	(38,594	)	$	1,993,915
Cost of goods sold (excluding depreciation and
amortization)	—			716,258			936,302			(38,594		)	1,613,966
Selling, general and administrative expenses	—			150,482			140,347			—			290,829
Depreciation and amortization	—			4,616			11,263			—			15,879
Results of affiliates’ operations	42,971			45,200			—			(88,171		)	—
Net interest and other	—			13,816			5,967			—			19,783
Income tax (benefit) expense	—			(544		)	11,031			—			10,487
Net income	42,971			42,971			45,200			(88,171		)	42,971
Net loss attributable to noncontrolling interests	—			—			(1,450		)	—			(1,450		)
Net income attributable to WESCO International, Inc.	$	42,971		$	42,971		$	46,650		$	(88,171	)	$	44,421
Other comprehensive loss:
Foreign currency translation adjustments	(28,800		)	(28,800		)	(28,800		)	57,600			(28,800		)
Comprehensive income attributable to WESCO International, Inc.	$	14,171		$	14,171		$	17,850		$	(30,571	)	$	15,621



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

(In thousands)	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			132,162			—			267,419
Depreciation and amortization	—		4,753			11,212			—			15,965
Results of affiliates’ operations	37,800		34,428			—			(72,228		)	—
Net interest and other	—		21,008			(4,742		)	—			16,266
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 adjustments, net of tax	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International, Inc.	$	49,620	$	43,130		$	52,667		$	(95,868	)	$	49,549

Reclassification

As described in Note 8, the Company reclassified a net benefit of $0.5 million from selling, general and administrative expenses to net interest and other in the previously reported Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2017.



	Condensed Consolidating Statement of Cash Flows
	Three Months Ended
	March 31, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	5,497		$	57,694		$	(10,198	)	$	—		$	52,993
Investing activities:
Capital expenditures	—			(2,954		)	(4,708		)	—			(7,662		)
Dividends received from subsidiaries	—			22,744			—			(22,744		)	—
Other	—			(18,908		)	(8,760		)	18,908			(8,760		)
Net cash provided by (used in) investing activities	—			882			(13,468		)	(3,836		)	(16,422		)
Financing activities:
Borrowings	—			58,000			515,663			(22,744		)	550,919
Repayments	(3,836		)	(90,000		)	(477,220		)	3,836			(567,220		)
Repurchases of common stock	(1,661		)	—			—			—			(1,661		)
Decrease in bank overdrafts	—			(10,575		)	—			—			(10,575		)
Dividends paid by subsidiaries	—			—			(22,744		)	22,744			—
Other	—			(290		)	—			—			(290		)
Net cash (used in) provided by financing activities	(5,497		)	(42,865		)	15,699			3,836			(28,827		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1,800		)	—			(1,800		)
Net change in cash and cash equivalents	—			15,711			(9,767		)	—			5,944
Cash and cash equivalents at the beginning of period	—			50,602			67,351			—			117,953
Cash and cash equivalents at the end of period	$	—		$	66,313		$	57,584		$	—		$	123,897



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

(In thousands)	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