13. 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, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	38,774	$	67,326		$	—		$	106,100
Trade accounts receivable, net	—		—		1,268,565			—			1,268,565
Inventories	—		453,738		547,615			—			1,001,353
Prepaid expenses and other current assets	1,127		22,341		118,406			(4,142		)	137,732
Total current assets	1,127		514,853		2,001,912			(4,142		)	2,513,750
Intercompany receivables, net	—		—		2,400,124			(2,400,124		)	—
Property, buildings and equipment, net	—		68,829		97,859			—			166,688
Operating lease assets	—		139,397		93,592			—			232,989
Intangible assets, net	—		1,974		308,479			—			310,453
Goodwill	—		257,623		1,483,148			—			1,740,771
Investments in affiliates	3,252,590		5,202,712		—			(8,455,302		)	—
Other assets	—		2,717		17,270			—			19,987
Total assets	$	3,253,717	$	6,188,105	$	6,402,384		$	(10,859,568	)	$	4,984,638

Accounts payable	$	—	$	426,015	$	444,227		$	—		$	870,242
Short-term debt	—		—		27,313			—			27,313
Other current liabilities	—		82,527		174,782			(4,142		)	253,167
Total current liabilities	—		508,542		646,322			(4,142		)	1,150,722
Intercompany payables, net	1,051,352		1,348,772		—			(2,400,124		)	—
Long-term debt, net	—		841,554		372,722			—			1,214,276
Operating lease liabilities	—		110,998		67,608			—			178,606
Other noncurrent liabilities	—		125,649		119,023			—			244,672
Total WESCO International stockholders' equity	2,202,365		3,252,590		5,202,712			(8,455,302		)	2,202,365
Noncontrolling interests	—		—		(6,003		)	—			(6,003		)
Total liabilities and stockholders’ equity	$	3,253,717	$	6,188,105	$	6,402,384		$	(10,859,568	)	$	4,984,638



	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, net	—		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 Statement of Income and Comprehensive Income
	Three Months Ended
	March 31, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	857,982		$	1,142,394		$	(39,109	)	$	1,961,267
Cost of goods sold (excluding depreciation and
amortization)	—		689,556			928,324			(39,109		)	1,578,771
Selling, general and administrative expenses	—		152,429			144,099			—			296,528
Depreciation and amortization	—		4,555			10,687			—			15,242
Results of affiliates’ operations	41,950		42,413			—			(84,363		)	—
Net interest and other	—		12,034			5,086			—			17,120
Income tax expense	—		(129		)	11,785			—			11,656
Net income	41,950		41,950			42,413			(84,363		)	41,950
Net loss attributable to noncontrolling interests	—		—			(419		)	—			(419		)
Net income attributable to WESCO International	$	41,950	$	41,950		$	42,832		$	(84,363	)	$	42,369
Other comprehensive loss:
Foreign currency translation adjustments	22,517		22,517			22,517			(45,034		)	22,517
Comprehensive income attributable to WESCO International	$	64,467	$	64,467		$	65,349		$	(129,397	)	$	64,886



	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	$	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	$	14,171		$	14,171		$	17,850		$	(30,571	)	$	15,621



	Condensed Consolidating Statement of Cash Flows
	Three Months Ended
	March 31, 2019

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	5,157		$	27,122		$	(3,410	)	$	—		$	28,869
Investing activities:
Acquisition payments	—			(27,742		)	—			—			(27,742		)
Capital expenditures	—			(2,513		)	(8,315		)	—			(10,828		)
Dividends received from subsidiaries	—			22,095			—			(22,095		)	—
Other	—			(19,510		)	53			19,510			53
Net cash used in investing activities	—			(27,670		)	(8,262		)	(2,585		)	(38,517		)
Financing activities:
Borrowings	—			139,134			330,196			(22,095		)	447,235
Repayments	(2,585		)	(140,134		)	(289,674		)	2,585			(429,808		)
Repurchases of common stock	(2,572		)	—			—			—			(2,572		)
Dividends paid by subsidiaries	—			—			(22,095		)	22,095			—
Increase in bank overdrafts	—			4,639			—			—			4,639
Other	—			(248		)	—			—			(248		)
Net cash provided by (used in) financing activities	(5,157		)	3,391			18,427			2,585			19,246
Effect of exchange rate changes on cash and cash equivalents	—			—			159			—			159
Net change in cash and cash equivalents	—			2,843			6,914			—			9,757
Cash and cash equivalents at the beginning of period	—			35,931			60,412			—			96,343
Cash and cash equivalents at the end of period	$	—		$	38,774		$	67,326		$	—		$	106,100



	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		)
Dividends paid by subsidiaries	—			—			(22,744		)	22,744			—
Decrease in bank overdrafts	—			(10,575		)	—			—			(10,575		)
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