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
	June 30, 2018

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	51,489	$	59,451		$	—		$	110,940
Trade accounts receivable, net	—		—		1,257,330			—			1,257,330
Inventories	—		418,944		516,287			—			935,231
Prepaid expenses and other current assets	4,943		23,741		129,279			(14,524		)	143,439
Total current assets	4,943		494,174		1,962,347			(14,524		)	2,446,940
Intercompany receivables, net	—		—		2,252,907			(2,252,907		)	—
Property, buildings and equipment, net	—		55,181		102,311			—			157,492
Intangible assets, net	—		2,451		338,128			—			340,579
Goodwill	—		257,623		1,487,071			—			1,744,694
Investments in affiliates	3,101,741		5,062,631		—			(8,164,372		)	—
Other assets	—		2,780		22,501			—			25,281
Total assets	$	3,106,684	$	5,874,840	$	6,165,265		$	(10,431,803	)	$	4,714,986

Accounts payable	$	—	$	423,735	$	394,444		$	—		$	818,179
Short-term debt	—		—		35,527			—			35,527
Other current liabilities	—		43,599		143,128			(14,524		)	172,203
Total current liabilities	—		467,334		573,099			(14,524		)	1,025,909
Intercompany payables, net	931,797		1,321,110		—			(2,252,907		)	—
Long-term debt, net	—		867,229		394,476			—			1,261,705
Other noncurrent liabilities	3,820		117,426		140,371			—			261,617
Total WESCO International stockholders' equity	2,171,067		3,101,741		5,062,631			(8,164,372		)	2,171,067
Noncontrolling interests	—		—		(5,312		)	—			(5,312		)
Total liabilities and stockholders’ equity	$	3,106,684	$	5,874,840	$	6,165,265		$	(10,431,803	)	$	4,714,986



	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 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
	June 30, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	921,075		$	1,222,369		$	(39,450	)	$	2,103,994
Cost of goods sold (excluding depreciation and
amortization)	—			746,373			997,177			(39,450		)	1,704,100
Selling, general and administrative expenses	—			147,566			145,322			—			292,888
Depreciation and amortization	—			4,656			11,167			—			15,823
Results of affiliates’ operations	57,673			51,122			—			(108,795		)	—
Net interest and other	—			14,259			3,482			—			17,741
Income tax expense	—			1,670			14,099			—			15,769
Net income	57,673			57,673			51,122			(108,795		)	57,673
Net loss attributable to noncontrolling interests	—			—			(267		)	—			(267		)
Net income attributable to WESCO International	$	57,673		$	57,673		$	51,389		$	(108,795	)	$	57,940
Other comprehensive income:
Foreign currency translation adjustments	(28,715		)	(28,715		)	(28,715		)	57,430			(28,715		)
Comprehensive income attributable to WESCO International	$	28,958		$	28,958		$	22,674		$	(51,365	)	$	29,225



	Condensed Consolidating Statement of Income and Comprehensive Income
	Six Months Ended
	June 30, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	1,803,474		$	2,372,479		$	(78,044	)	$	4,097,909
Cost of goods sold (excluding depreciation and
amortization)	—			1,462,631			1,933,479			(78,044		)	3,318,066
Selling, general and administrative expenses	—			298,047			285,670			—			583,717
Depreciation and amortization	—			9,275			22,428			—			31,703
Results of affiliates’ operations	100,644			96,325			—			(196,969		)	—
Net interest and other	—			28,076			9,448			—			37,524
Income tax expense	—			1,126			25,129			—			26,255
Net income	100,644			100,644			96,325			(196,969		)	100,644
Net loss attributable to noncontrolling interests	—			—			(1,717		)	—			(1,717		)
Net income attributable to WESCO International	$	100,644		$	100,644		$	98,042		$	(196,969	)	$	102,361
Other comprehensive loss:
Foreign currency translation adjustments	(57,515		)	(57,515		)	(57,515		)	115,030			(57,515		)
Comprehensive income attributable to WESCO International	$	43,129		$	43,129		$	40,527		$	(81,939	)	$	44,846



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

(In thousands)	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			133,005			—			267,735
Depreciation and amortization	—		4,583			11,138			—			15,721
Results of affiliates’ operations	49,535		40,753			—			(90,288		)	—
Net interest and other	—		28,518			(12,149		)	—			16,369
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	$	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	$	82,916	$	68,619		$	88,406		$	(157,050	)	$	82,891

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 of the non-guarantor subsidiaries for the three months ended June 30, 2017.



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

(In thousands)	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			265,167			—			535,153
Depreciation and amortization	—		9,336			22,350			—			31,686
Results of affiliates’ operations	87,334		75,181			—			(162,515		)	—
Net interest and other	—		49,525			(16,889		)	—			32,636
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	$	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 adjustments, net of tax	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International	$	132,535	$	111,750		$	141,071		$	(252,917	)	$	132,439

Reclassification

As described in Note 8, the Company reclassified a net benefit of $0.9 million from selling, general and administrative expenses to net interest and other in the previously reported Condensed Consolidated Statement of Income and Comprehensive Income of the non-guarantor subsidiaries for the six months ended June 30, 2017.



	Condensed Consolidating Statement of Cash Flows
	Six Months Ended
	June 30, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by operating activities	$	9,878		$	31,192		$	45,751		$	—		$	86,821
Investing activities:
Capital expenditures	—			(9,334		)	(7,050		)	—			(16,384		)
Dividends received from subsidiaries	—			95,511			—			(95,511		)	—
Other	—			(37,524		)	(8,684		)	37,524			(8,684		)
Net cash provided by (used in) investing activities	—			48,653			(15,734		)	(57,987		)	(25,068		)
Financing activities:
Borrowings	—			191,888			736,372			(45,511		)	882,749
Repayments	(7,987		)	(260,888		)	(673,761		)	7,987			(934,649		)
Repurchases of common stock	(1,891		)	—			—			—			(1,891		)
Decrease in bank overdrafts	—			—			—			—			—
Dividends paid by subsidiaries	—			—			(95,511		)	95,511			—
Other	—			(9,958		)	—			—			(9,958		)
Net cash used in financing activities	(9,878		)	(78,958		)	(32,900		)	57,987			(63,749		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(5,017		)	—			(5,017		)
Net change in cash and cash equivalents	—			887			(7,900		)	—			(7,013		)
Cash and cash equivalents at the beginning of period	—			50,602			67,351			—			117,953
Cash and cash equivalents at the end of period	$	—		$	51,489		$	59,451		$	—		$	110,940



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

(In thousands)	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		)
Increase in bank overdrafts	—			—			—			—			—
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