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
	September 30, 2018

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	57,052	$	85,708		$	—		$	142,760
Trade accounts receivable, net	—		—		1,265,880			—			1,265,880
Inventories	—		411,252		515,516			—			926,768
Prepaid expenses and other current assets	4,943		42,568		132,620			(9,040		)	171,091
Total current assets	4,943		510,872		1,999,724			(9,040		)	2,506,499
Intercompany receivables, net	—		—		2,270,584			(2,270,584		)	—
Property, buildings and equipment, net	—		56,351		100,778			—			157,129
Intangible assets, net	—		2,291		331,735			—			334,026
Goodwill	—		257,623		1,497,669			—			1,755,292
Investments in affiliates	3,188,872		5,144,891		—			(8,333,763		)	—
Other assets	—		2,780		23,065			—			25,845
Total assets	$	3,193,815	$	5,974,808	$	6,223,555		$	(10,613,387	)	$	4,778,791

Accounts payable	$	—	$	412,989	$	400,406		$	—		$	813,395
Short-term debt	—		—		31,125			—			31,125
Other current liabilities	—		72,762		143,286			(9,040		)	207,008
Total current liabilities	—		485,751		574,817			(9,040		)	1,051,528
Intercompany payables, net	952,642		1,317,942		—			(2,270,584		)	—
Long-term debt, net	—		864,779		364,535			—			1,229,314
Other noncurrent liabilities	3,820		117,464		144,828			—			266,112
Total WESCO International stockholders' equity	2,237,353		3,188,872		5,144,891			(8,333,763		)	2,237,353
Noncontrolling interests	—		—		(5,516		)	—			(5,516		)
Total liabilities and stockholders’ equity	$	3,193,815	$	5,974,808	$	6,223,555		$	(10,613,387	)	$	4,778,791



	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
	September 30, 2018

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	899,994	$	1,206,174		$	(38,923	)	$	2,067,245
Cost of goods sold (excluding depreciation and
amortization)	—		727,052		981,908			(38,923		)	1,670,037
Selling, general and administrative expenses	—		149,390		134,683			—			284,073
Depreciation and amortization	—		4,475		11,143			—			15,618
Results of affiliates’ operations	66,645		61,771		—			(128,416		)	—
Net interest and other	—		13,127		3,923			—			17,050
Income tax expense	—		1,076		12,746			—			13,822
Net income	66,645		66,645		61,771			(128,416		)	66,645
Net loss attributable to noncontrolling interests	—		—		(204		)	—			(204		)
Net income attributable to WESCO International	$	66,645	$	66,645	$	61,975		$	(128,416	)	$	66,849
Other comprehensive income:
Foreign currency translation adjustments	20,486		20,486		20,486			(40,972		)	20,486
Comprehensive income attributable to WESCO International	$	87,131	$	87,131	$	82,461		$	(169,388	)	$	87,335



	Condensed Consolidating Statement of Income and Comprehensive Income
	Nine Months Ended
	September 30, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	2,703,468		$	3,578,653		$	(116,967	)	$	6,165,154
Cost of goods sold (excluding depreciation and
amortization)	—			2,189,683			2,915,387			(116,967		)	4,988,103
Selling, general and administrative expenses	—			447,437			420,353			—			867,790
Depreciation and amortization	—			13,749			33,572			—			47,321
Results of affiliates’ operations	167,289			158,093			—			(325,382		)	—
Net interest and other	—			41,202			13,372			—			54,574
Income tax expense	—			2,201			37,876			—			40,077
Net income	167,289			167,289			158,093			(325,382		)	167,289
Net loss attributable to noncontrolling interests	—			—			(1,921		)	—			(1,921		)
Net income attributable to WESCO International	$	167,289		$	167,289		$	160,014		$	(325,382	)	$	169,210
Other comprehensive loss:
Foreign currency translation adjustments	(37,029		)	(37,029		)	(37,029		)	74,058			(37,029		)
Comprehensive income attributable to WESCO International	$	130,260		$	130,260		$	122,985		$	(251,324	)	$	132,181



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

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	867,973		$	1,169,377		$	(37,191	)	$	2,000,159
Cost of goods sold (excluding depreciation and
amortization)	—		697,896			954,109			(37,191		)	1,614,814
Selling, general and administrative expenses	—		140,638			139,859			—			280,497
Depreciation and amortization	—		4,475			11,599			—			16,074
Results of affiliates’ operations	53,576		42,726			—			(96,302		)	—
Net interest and other	—		25,436			(8,601		)	—			16,835
Income tax (benefit) expense	—		(136		)	18,499			—			18,363
Net income	53,576		42,390			53,912			(96,302		)	53,576
Net loss attributable to noncontrolling interests	—		—			(99		)	—			(99		)
Net income attributable to WESCO International	$	53,576	$	42,390		$	54,011		$	(96,302	)	$	53,675
Other comprehensive income:
Foreign currency translation adjustments	51,148		51,148			51,148			(102,296		)	51,148
Comprehensive income attributable to WESCO International	$	104,724	$	93,538		$	105,159		$	(198,598	)	$	104,823

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 September 30, 2017.



	Condensed Consolidating Statement of Income and Comprehensive Income
	Nine Months Ended
	September 30, 2017

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	2,490,102		$	3,289,693		$	(97,420	)	$	5,682,375
Cost of goods sold (excluding depreciation and
amortization)	—		2,002,708			2,675,608			(97,420		)	4,580,896
Selling, general and administrative expenses	—		410,624			405,029			—			815,653
Depreciation and amortization	—		13,811			33,947			—			47,758
Results of affiliates’ operations	140,915		117,907			—			(258,822		)	—
Net interest and other	—		74,961			(25,492		)	—			49,469
Income tax (benefit) expense	—		(3,034		)	50,718			—			47,684
Net income	140,915		108,939			149,883			(258,822		)	140,915
Net loss attributable to noncontrolling interests	—		—			(3		)	—			(3		)
Net income attributable to WESCO International	$	140,915	$	108,939		$	149,886		$	(258,822	)	$	140,918
Other comprehensive income:
Foreign currency translation adjustments	96,097		96,097			96,097			(192,194		)	96,097
Post retirement benefit plan adjustments, net of tax	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International	$	237,264	$	205,288		$	246,235		$	(451,520	)	$	237,267

Reclassification

As described in Note 8, the Company reclassified a net benefit of $1.4 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 nine months ended September 30, 2017.



	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended
	September 30, 2018

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by operating activities	$	14,198		$	62,439		$	97,823		$	—		$	174,460
Investing activities:
Capital expenditures	—			(12,831		)	(10,918		)	—			(23,749		)
Dividends received from subsidiaries	—			118,271			—			(118,271		)	—
Other	—			(81,128		)	3,609			81,128			3,609
Net cash provided by (used in) investing activities	—			24,312			(7,309		)	(37,143		)	(20,140		)
Financing activities:
Borrowings	12,857			246,323			933,046			(81,128		)	1,111,098
Repayments	—			(318,323		)	(882,239		)	—			(1,200,562		)
Repurchases of common stock	(27,055		)	—			—			—			(27,055		)
Dividends paid by subsidiaries	—			—			(118,271		)	118,271			—
Other	—			(8,301		)	—			—			(8,301		)
Net cash used in financing activities	(14,198		)	(80,301		)	(67,464		)	37,143			(124,820		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(4,693		)	—			(4,693		)
Net change in cash and cash equivalents	—			6,450			18,357			—			24,807
Cash and cash equivalents at the beginning of period	—			50,602			67,351			—			117,953
Cash and cash equivalents at the end of period	$	—		$	57,052		$	85,708		$	—		$	142,760



	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended
	September 30, 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	$	(28,740	)	$	168,603		$	(58,752	)	$	—		$	81,111
Investing activities:
Capital expenditures	—			(7,435		)	(8,535		)	—			(15,970		)
Dividends received from subsidiaries	—			51,561			—			(51,561		)	—
Other	—			(174,032		)	16,711			160,811			3,490
Net cash (used in) provided by investing activities	—			(129,906		)	8,176			109,250			(12,480		)
Financing activities:
Borrowings	135,442			557,391			691,682			(173,907		)	1,210,608
Repayments	—			(587,485		)	(617,301		)	13,096			(1,191,690		)
Repurchases of common stock	(106,702		)	—			—			—			(106,702		)
Dividends paid by subsidiaries	—			—			(51,561		)	51,561			—
Other	—			(4,380		)	—			—			(4,380		)
Net cash provided by (used in) financing activities	28,740			(34,474		)	22,820			(109,250		)	(92,164		)
Effect of exchange rate changes on cash and cash equivalents	—			—			7,485			—			7,485
Net change in cash and cash equivalents	—			4,223			(20,271		)	—			(16,048		)
Cash and cash equivalents at the beginning of period	—			41,552			68,579			—			110,131
Cash and cash equivalents at the end of period	$	—		$	45,775		$	48,308		$	—		$	94,083