OTHER FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2019

Condensed Financial Information [Abstract]

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
	June 30, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	34,401	$	52,817		$	—		$	87,218
Trade accounts receivable, net	—		—		1,355,541			—			1,355,541
Inventories	—		455,898		548,229			—			1,004,127
Prepaid expenses and other current assets	1,123		17,703		121,956			(2,804		)	137,978
Total current assets	1,123		508,002		2,078,543			(2,804		)	2,584,864
Intercompany receivables, net	—		—		2,521,347			(2,521,347		)	—
Property, buildings and equipment, net	—		73,401		98,958			—			172,359
Operating lease assets	—		139,468		93,935			—			233,403
Intangible assets, net	—		1,816		302,576			—			304,392
Goodwill	—		257,623		1,495,177			—			1,752,800
Investments in affiliates	3,336,052		5,276,915		—			(8,612,967		)	—
Other assets	—		2,597		17,521			—			20,118
Total assets	$	3,337,175	$	6,259,822	$	6,608,057		$	(11,137,118	)	$	5,067,936

Accounts payable	$	—	$	418,469	$	450,136		$	—		$	868,605
Short-term debt	—		—		27,217			—			27,217
Other current liabilities	—		66,660		165,154			(2,804		)	229,010
Total current liabilities	—		485,129		642,507			(2,804		)	1,124,832
Intercompany payables, net	1,196,100		1,325,247		—			(2,521,347		)	—
Long-term debt, net	—		892,909		506,577			—			1,399,486
Operating lease liabilities	—		110,360		67,547			—			177,907
Other noncurrent liabilities	—		110,125		120,763			—			230,888
Total WESCO International stockholders' equity	2,141,075		3,336,052		5,276,915			(8,612,967		)	2,141,075
Noncontrolling interests	—		—		(6,252		)	—			(6,252		)
Total liabilities and stockholders’ equity	$	3,337,175	$	6,259,822	$	6,608,057		$	(11,137,118	)	$	5,067,936



	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
	June 30, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	938,333	$	1,255,952		$	(44,197	)	$	2,150,088
Cost of goods sold (excluding depreciation and
amortization)	—		763,036		1,022,275			(44,197		)	1,741,114
Selling, general and administrative expenses	—		146,133		149,709			—			295,842
Depreciation and amortization	—		4,471		10,711			—			15,182
Results of affiliates’ operations	63,215		53,962		—			(117,177		)	—
Net interest and other	—		12,880		4,427			—			17,307
Income tax expense	—		2,560		14,868			—			17,428
Net income	63,215		63,215		53,962			(117,177		)	63,215
Net loss attributable to noncontrolling interests	—		—		(249		)	—			(249		)
Net income attributable to WESCO International	$	63,215	$	63,215	$	54,211		$	(117,177	)	$	63,464
Other comprehensive income:
Foreign currency translation adjustments	20,244		20,244		20,244			(40,488		)	20,244
Comprehensive income attributable to WESCO International	$	83,459	$	83,459	$	74,455		$	(157,665	)	$	83,708



	Condensed Consolidating Statement of Income and Comprehensive Income
	Six Months Ended
	June 30, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	1,796,315	$	2,398,346		$	(83,306	)	$	4,111,355
Cost of goods sold (excluding depreciation and
amortization)	—		1,452,592		1,950,600			(83,306		)	3,319,886
Selling, general and administrative expenses	—		298,562		293,808			—			592,370
Depreciation and amortization	—		9,027		21,397			—			30,424
Results of affiliates’ operations	105,164		96,375		—			(201,539		)	—
Net interest and other	—		24,914		9,513			—			34,427
Income tax expense	—		2,431		26,653			—			29,084
Net income	105,164		105,164		96,375			(201,539		)	105,164
Net loss attributable to noncontrolling interests	—		—		(668		)	—			(668		)
Net income attributable to WESCO International	$	105,164	$	105,164	$	97,043		$	(201,539	)	$	105,832
Other comprehensive income:
Foreign currency translation adjustments	42,763		42,763		42,763			(85,526		)	42,763
Comprehensive income attributable to WESCO International	$	147,927	$	147,927	$	139,806		$	(287,065	)	$	148,595



	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 loss:
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 Cash Flows
	Six Months Ended
	June 30, 2019

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	4,904		$	128,070		$	(141,749	)	$	—		$	(8,775	)
Investing activities:
Capital expenditures	—			(5,843		)	(15,559		)	—			(21,402		)
Acquisition payments	—			(27,742		)	—			—			(27,742		)
Dividends received from subsidiaries	—			44,417			—			(44,417		)	—
Other	—			(192,235		)	(1,155		)	192,235			(1,155		)
Net cash used in investing activities	—			(181,403		)	(16,714		)	147,818			(50,299		)
Financing activities:
Borrowings	147,818			242,134			720,657			(192,235		)	918,374
Repayments	—			(193,134		)	(525,306		)	—			(718,440		)
Repurchases of common stock	(152,722		)	—			—			—			(152,722		)
Dividends paid by subsidiaries	—			—			(44,417		)	44,417			—
Other	—			2,803			—			—			2,803
Net cash (used in) provided by financing activities	(4,904		)	51,803			150,934			(147,818		)	50,015
Effect of exchange rate changes on cash and cash equivalents	—			—			(66		)	—			(66		)
Net change in cash and cash equivalents	—			(1,530		)	(7,595		)	—			(9,125		)
Cash and cash equivalents at the beginning of period	—			35,931			60,412			—			96,343
Cash and cash equivalents at the end of period	$	—		$	34,401		$	52,817		$	—		$	87,218



	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		)
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