OTHER FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2019

Condensed Financial Information [Abstract]

14. 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, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	37,889	$	100,271		$	—		$	138,160
Trade accounts receivable, net	—		—		1,315,026			—			1,315,026
Inventories	—		437,470		524,527			—			961,997
Prepaid expenses and other current assets	1,123		27,376		136,719			(1,921		)	163,297
Total current assets	1,123		502,735		2,076,543			(1,921		)	2,578,480
Intercompany receivables, net	—		—		2,543,978			(2,543,978		)	—
Property, buildings and equipment, net	—		76,980		97,479			—			174,459
Operating lease assets	—		146,247		91,005			—			237,252
Intangible assets, net	—		1,658		291,835			—			293,493
Goodwill	—		257,623		1,488,448			—			1,746,071
Investments in affiliates	3,383,537		5,318,786		—			(8,702,323		)	—
Other assets	—		854		16,802			—			17,656
Total assets	$	3,384,660	$	6,304,883	$	6,606,090		$	(11,248,222	)	$	5,047,411

Accounts payable	$	—	$	418,502	$	431,082		$	—		$	849,584
Short-term debt	—		—		25,561			—			25,561
Other current liabilities	—		69,505		161,795			(1,921		)	229,379
Total current liabilities	—		488,007		618,438			(1,921		)	1,104,524
Intercompany payables, net	1,191,542		1,352,436		—			(2,543,978		)	—
Long-term debt, net	—		856,992		489,341			—			1,346,333
Operating lease liabilities	—		116,336		65,708			—			182,044
Other noncurrent liabilities	—		107,575		120,225			—			227,800
Total WESCO International stockholders' equity	2,193,118		3,383,537		5,318,786			(8,702,323		)	2,193,118
Noncontrolling interests	—		—		(6,408		)	—			(6,408		)
Total liabilities and stockholders’ equity	$	3,384,660	$	6,304,883	$	6,606,090		$	(11,248,222	)	$	5,047,411



	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
	September 30, 2019

(In thousands)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	939,909		$	1,244,847		$	(36,646	)	$	2,148,110
Cost of goods sold (excluding depreciation and
amortization)	—			768,200			1,016,359			(36,646		)	1,747,913
Selling, general and administrative expenses	—			146,925			143,927			—			290,852
Depreciation and amortization	—			4,834			10,778			—			15,612
Results of affiliates’ operations	64,339			58,725			—			(123,064		)	—
Net interest and other	—			12,944			564			—			13,508
Income tax expense	—			1,392			14,494			—			15,886
Net income	64,339			64,339			58,725			(123,064		)	64,339
Net loss attributable to noncontrolling interests	—			—			(156		)	—			(156		)
Net income attributable to WESCO International	$	64,339		$	64,339		$	58,881		$	(123,064	)	$	64,495
Other comprehensive income:
Foreign currency translation adjustments	(16,856		)	(16,856		)	(16,856		)	33,712			(16,856		)
Comprehensive income attributable to WESCO International	$	47,483		$	47,483		$	42,025		$	(89,352	)	$	47,639



	Condensed Consolidating Statement of Income and Comprehensive Income
	Nine Months Ended
	September 30, 2019

(In thousands)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	2,736,224	$	3,643,193		$	(119,952	)	$	6,259,465
Cost of goods sold (excluding depreciation and
amortization)	—		2,220,792		2,966,959			(119,952		)	5,067,799
Selling, general and administrative expenses	—		445,487		437,735			—			883,222
Depreciation and amortization	—		13,861		32,174			—			46,035
Results of affiliates’ operations	169,505		155,100		—			(324,605		)	—
Net interest and other	—		37,856		10,078			—			47,934
Income tax expense	—		3,823		41,147			—			44,970
Net income	169,505		169,505		155,100			(324,605		)	169,505
Net loss attributable to noncontrolling interests	—		—		(824		)	—			(824		)
Net income attributable to WESCO International	$	169,505	$	169,505	$	155,924		$	(324,605	)	$	170,329
Other comprehensive income:
Foreign currency translation adjustments	25,905		25,905		25,905			(51,810		)	25,905
Comprehensive income attributable to WESCO International	$	195,410	$	195,410	$	181,829		$	(376,415	)	$	196,234



	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 Cash Flows
	Nine Months Ended
	September 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	$	9,480		$	210,707		$	(103,523	)	$	—		$	116,664
Investing activities:
Capital expenditures	—			(13,269		)	(17,054		)	—			(30,323		)
Acquisition payments	—			(27,742		)	—			—			(27,742		)
Dividends received from subsidiaries	—			67,065			—			(67,065		)	—
Other	—			(210,320		)	4,575			210,320			4,575
Net cash used in investing activities	—			(184,266		)	(12,479		)	143,255			(53,490		)
Financing activities:
Borrowings	143,255			333,418			856,464			(210,320		)	1,122,817
Repayments	—			(344,167		)	(630,263		)	—			(974,430		)
Repurchases of common stock	(152,735		)	—			—			—			(152,735		)
Dividends paid by subsidiaries	—			—			(67,065		)	67,065			—
Other	—			(13,734		)	—			—			(13,734		)
Net cash (used in) provided by financing activities	(9,480		)	(24,483		)	159,136			(143,255		)	(18,082		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3,275		)	—			(3,275		)
Net change in cash and cash equivalents	—			1,958			39,859			—			41,817
Cash and cash equivalents at the beginning of period	—			35,931			60,412			—			96,343
Cash and cash equivalents at the end of period	$	—		$	37,889		$	100,271		$	—		$	138,160



	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