18. 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, 2018
	(In thousands)
	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	35,931	$	60,412		$	—		$	96,343
Trade accounts receivable, net	—		—		1,166,607			—			1,166,607
Inventories	—		440,422		508,304			—			948,726
Prepaid expenses and other current assets	1,123		57,586		124,523			(9,268		)	173,964
Total current assets	1,123		533,939		1,859,846			(9,268		)	2,385,640
Intercompany receivables, net	—		—		2,403,704			(2,403,704		)	—
Property, buildings and equipment, net	—		63,506		97,372			—			160,878
Intangible assets, net	—		2,131		313,885			—			316,016
Goodwill	—		257,623		1,464,980			—			1,722,603
Investments in affiliates	3,182,469		5,137,783					(8,320,252		)	—
Other assets	—		2,905		16,994						19,899
Total assets	$	3,183,592	$	5,997,887	$	6,156,781		$	(10,733,224	)	$	4,605,036

Accounts payable	$	—	$	404,373	$	389,975		$	—		$	794,348
Short-term debt	—		—		30,785			—			30,785
Other current liabilities	—		86,600		159,481			(9,268		)	236,813
Total current liabilities	—		490,973		580,241			(9,268		)	1,061,946
Intercompany payables, net	1,048,282		1,355,422		—			(2,403,704		)	—
Long-term debt	—		842,093		325,218			—			1,167,311
Other noncurrent liabilities	—		126,930		119,123			—			246,053
Total WESCO International stockholders’ equity	2,135,310		3,182,469		5,137,783			(8,320,252		)	2,135,310
Noncontrolling interests	—		—		(5,584		)	—			(5,584		)
Total liabilities and stockholders’ equity	$	3,183,592	$	5,997,887	$	6,156,781		$	(10,733,224	)	$	4,605,036



	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 Statement of Income and Comprehensive Income
	Year ended December 31, 2018
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	3,572,406		$	4,757,321		$	(153,126	)	$	8,176,601
Cost of goods sold (excluding depreciation and	—			2,890,490			3,871,856			(153,126		)	6,609,220
amortization)
Selling, general and administrative expenses	—			590,009			561,935			—			1,151,944
Depreciation and amortization	—			18,334			44,663			—			62,997
Results of affiliates’ operations	225,355			209,802			—			(435,157		)	—
Net interest and other	—			54,178			17,237			—			71,415
Provision for income taxes	—			3,842			51,828			—			55,670
Net income	225,355			225,355			209,802			(435,157		)	225,355
Less: Net loss attributable to noncontrolling interests	—			—			(1,988		)	—			(1,988		)
Net income attributable to WESCO International	$	225,355		$	225,355		$	211,790		$	(435,157	)	$	227,343
Other comprehensive income (loss):
Foreign currency translation adjustments	(99,643		)	(99,643		)	(99,643		)	199,286			(99,643		)
Post retirement benefit plan adjustments, net of tax	3,798			3,798			3,798			(7,596		)	3,798
Comprehensive income attributable to WESCO International	$	129,510		$	129,510		$	115,945		$	(243,467	)	$	131,498



	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			546,095			—			1,101,598
Depreciation and amortization	—			18,442			45,575			—			64,017
Results of affiliates’ operations	160,587			168,782			—			(329,369		)	—
Net interest and other	—			94,313			(27,713		)	—			66,600
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, net of tax	(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			573,301			—			1,050,799
Depreciation and amortization	—			20,226			46,632			—			66,858
Results of affiliates’ operations	240,571			155,814			—			(396,385		)	—
Net interest and other	17,555			87,824			(30,317		)	—			75,062
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, net of tax	(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

Reclassification

As described in Note 13, the Company reclassified a net benefit of $1.8 million and $1.5 million, respectively, 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 years ended December 31, 2017 and 2016, respectively.



	Condensed Consolidating Statement of Cash Flows
	Year ended December 31, 2018
	(In thousands)
	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by operating activities	$	18,672		$	153,467		$	124,582		$	—		$	296,721
Investing activities:
Capital expenditures	—			(17,573		)	(18,637		)	—			(36,210		)
Proceeds from sale of assets	—			—			12,461			—			12,461
Dividends received from subsidiaries				347,531						(347,531		)	—
Advances to subsidiaries and other	—			(406,028		)	196,219			199,416			(10,393		)
Net cash (used in) provided by investing activities	—			(76,070		)	190,043			(148,115		)	(34,142		)
Financing activities:
Proceeds from issuance of debt	108,497			339,606			1,086,673			(199,416		)	1,335,360
Repayments of debt	—			(410,606		)	(1,051,611		)	—			(1,462,217		)
Equity activities	(127,169		)	—			—			—			(127,169		)
Dividends paid by subsidiaries							(347,531		)	347,531			—
Other	—			(21,068		)	—			—			(21,068		)
Net cash used in financing activities	(18,672		)	(92,068		)	(312,469		)	148,115			(275,094		)
Effect of exchange rate changes on cash and cash equivalents							(9,095		)	—			(9,095		)
Net change in cash and cash equivalents	—			(14,671		)	(6,939		)	—			(21,610		)
Cash and cash equivalents at the beginning of period	—			50,602			67,351			—			117,953
Cash and cash equivalents at the end of period	$	—		$	35,931		$	60,412		$	—		$	96,343



	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