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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2021
Postemployment Benefits [Abstract] |
Retirement Benefits | Defined Contribution Plans Wesco Distribution sponsors a defined contribution retirement savings plan for the majority of its U.S. employees (the "WESCO Distribution, Inc. Retirement Savings Plan"). The Company matches contributions made by employees at an amount equal to 50% of participants' total monthly contributions up to 6% of eligible compensation. Contributions are made in cash and employees have the option to transfer balances allocated to their accounts into any of the available investment options. The Company may also make, subject to the Board of Directors' approval, a discretionary contribution to the WESCO Distribution, Inc. Retirement Savings Plan if certain predetermined profit levels are attained. Discretionary employer contribution charges of $13.1 million were incurred for the year ended December 31, 2021. There were no discretionary contributions for the years ended December 31, 2020 and 2019. Anixter Inc. sponsors a defined contribution plan covering all of its non-union U.S. employees (the "Anixter Inc. Employee Savings Plan"). The employer match for the Anixter Inc. Employee Savings Plan is equal to 50% of a participant's contribution up to 5% of the participant's compensation. Anixter Inc. will also make an annual contribution to the Anixter Inc. Employee Savings Plan on behalf of each active participant who is hired or rehired on or after July 1, 2015, or is not participating in the Anixter Inc. Pension Plan. The amount of the employer annual contribution is equal to either 2% or 2.5% of the participant’s compensation, as determined by the participant’s years of service. This contribution is in lieu of being eligible for the Anixter Inc. Pension Plan. Certain of Anixter Inc.'s foreign subsidiaries also have defined contribution plans. Contributions to these plans are based upon various levels of employee participation and legal requirements. Effective January 1, 2022, the Anixter Inc. Employee Savings Plan will be merged with and into the WESCO Distribution, Inc. Retirement Savings Plan (the "U.S. Defined Contribution Plan Merger"). On December 31, 2021, participant account balances were transferred from the Anixter Inc. Employee Savings Plan to the WESCO Distribution, Inc. Retirement Savings Plan. In connection with the U.S. Defined Contribution Plan Merger, the WESCO Distribution, Inc. Retirement Savings plan will be amended to change the employer matching contribution at an amount equal to 100% of a participant’s eligible elective deferrals up to 3% of the participant’s eligible compensation and 50% of the next 4% of eligible compensation, and to eliminate the discretionary employer contributions. WESCO Distribution Canada LP, a wholly-owned subsidiary of the Company, sponsors a defined contribution plan covering the current full-time employees of WESCO Distribution Canada LP and part-time employees meeting certain requirements for continuous service, earnings and minimum hours of employment (the "Wesco Canadian Defined Contribution Plan"). The Company makes contributions in amounts ranging from 3% to 5% of participants' eligible compensation based on years of continuous service. For employees having completed between 20 and 25 or more years of service as of January 1, 2015, the Company's contribution ranges from 5% to 7% of the respective participants' eligible compensation. Anixter Canada Inc. sponsors a defined contribution plan for certain Canadian employees (the “Anixter Canadian Defined Contribution Plan”), which provides for core employer contributions in amounts ranging from 3% to 4% of participants' eligible compensation based on years of continuous service, plus a matching contribution equal to 25% of a participant’s elective contributions up to 6% of eligible compensation (for a maximum total employer contribution equal to 5.5%). Effective January 1, 2022, the Anixter Canadian Defined Contribution Plan will be merged with and into an amended Wesco Canadian Defined Contribution Plan. The amended Wesco Canadian Defined Contribution Plan will provide a core employer contribution of 3% of a participant’s eligible compensation, plus a matching contribution equal to 50% of a participant’s elective contributions up to 4% of eligible compensation (for a maximum total employer contribution equal to 5%). The amended Wesco Canadian Defined Contribution Plan will also require employees of EECOL Electric Corp. hired on or after January 1, 2022 to join this Canadian defined contribution plan, and will permit enrollment for those not participating in the defined benefit plan described below. Wesco incurred charges of $54.7 million, $18.3 million, and $22.9 million for the years ended December 31, 2021, 2020 and 2019, respectively, for all defined contribution plans. Deferred Compensation Plans Wesco Distribution sponsors a non-qualified deferred compensation plan (the "Wesco Deferred Compensation Plan") that permits select employees to make pre-tax deferrals of salary and bonus. Employees have the option to transfer balances allocated to their accounts in the Wesco Deferred Compensation Plan into any of the available investment options. The Wesco Deferred Compensation Plan is an unfunded plan. As of December 31, 2021, the Company's obligation under the Wesco Deferred Compensation Plan was $20.9 million, which was included in other noncurrent liabilities in the Consolidated Balance Sheet. As of December 31, 2020, the Company's obligation under the Wesco Deferred Compensation Plan was $27.4 million, of which $10.1 million was included in other current liabilities and $17.3 million was in other noncurrent liabilities in the Consolidated Balance Sheet. Anixter Inc. sponsored a non-qualified deferred compensation plan (the "Anixter Deferred Compensation Plan") that permitted select employees to make pre-tax deferrals of salary and bonus. Interest was accrued monthly on the deferred compensation balances based on the average ten-year Treasury note rate for the previous three months times a factor of 1.4, and the rate was further adjusted if certain financial goals were achieved. In the fourth quarter of 2020, the Company terminated the Anixter Deferred Compensation Plan. Accordingly, a deferred compensation liability of $45.1 million was classified in other current liabilities in the Consolidated Balance Sheet at December 31, 2020. In the second quarter of 2021, the Company settled the liability for the Anixter Deferred Compensation Plan by making lump sum payments of $42.8 million directly to participants. The Company held assets in a Rabbi Trust arrangement to provide for the liability associated with the Anixter Deferred Compensation Plan. The assets were invested in marketable securities. As of December 31, 2020, the assets held in this arrangement were $39.6 million and were recorded in other current assets in the Consolidated Balance Sheet. In the second quarter of 2021, the Company liquidated this investment arrangement for approximately $39.7 million and used its proceeds plus available cash to fund the settlement of the Anixter Deferred Compensation Plan described above. Defined Benefit Plans Wesco sponsors a contributory defined benefit plan covering substantially all Canadian employees of EECOL Electric Corp., a wholly-owned subsidiary of the Company (the "EECOL Plan"). The EECOL Plan provides retirement benefits based on earnings and credited service, and participants contribute 2% of their earnings to the EECOL Plan. Participants become 100% vested after two years of continuous service or, if earlier, at the participant's normal retirement age. Wesco also sponsors a Supplemental Executive Retirement Plan for certain executives of EECOL Electric Corp. (the "EECOL SERP"), which provides additional pension benefits based on earnings and credited service. The EECOL SERP is an unfunded plan. Effective January 1, 2013, the EECOL SERP was closed to new participants and existing participants became 100% vested. EECOL SERP participants now contribute 4% of their earnings to the EECOL Plan. Anixter Inc. sponsors various defined benefit pension plans in the U.S., which consist of the Anixter Inc. Pension Plan, the Anixter Inc. Executive Benefit Plan, and the Supplemental Executive Retirement Plan (the "Anixter SERP") (together, the "Domestic Plans") and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together with the "EECOL Plan" and "EECOL SERP", the "Foreign Plans"). The Anixter Inc. Pension Plan was closed to entrants first hired or rehired on or after July 1, 2015. The majority of the Anixter defined benefit pension plans are non-contributory, and with the exception of the U.S. and Canada, cover substantially all full-time employees in their respective countries. Retirement benefits are provided based on compensation as defined in each of the plan agreements. The Domestic Plans are funded as required by the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Service. The Foreign Plans are funded as required by applicable foreign laws. In the fourth quarter of 2020, the Company terminated both the Anixter Inc. Executive Benefit Plan and the Anixter SERP. Accordingly, pension liabilities totaling $18.1 million associated with the Anixter Inc. Executive Benefit Plan and the Anixter SERP were classified as current in the Consolidated Balance Sheet at December 31, 2020. During the year ended December 31, 2021, the Company settled its liabilities for the Anixter Inc. Executive Benefit Plan and Anixter SERP by making lump sum payments directly to participants totaling $17.9 million. During the fourth quarter of 2021, the Company adopted certain plan amendments to freeze the benefits provided under the Anixter Inc. Pension Plan effective December 31, 2021, to close participation in the EECOL Plan effective December 31, 2021, and to freeze the benefit accruals under the Pension Plan for Employees of Anixter Canada Inc., the EECOL Plan and the EECOL SERP, effective December 31, 2023. These amendments required the Company to remeasure the projected benefit obligations associated with these plans, resulting in a gain from curtailment totaling $36.6 million, which is recorded as a component of other non-operating income in the Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2021. The following table presents the changes in benefit obligations, plan assets and funded status for the defined benefit plans:
| Domestic Plans |  | Foreign Plans |  | Total
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Change in Projected Benefit Obligation |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 332,484 |  | $ | — |  | $ | 486,855 |  | $ | 134,852 |  | $ | 819,339 |  | $ | 134,852
Impact of acquisition(1) | — |  | 317,893 |  | — |  | 301,206 |  | — |  | 619,099
Service cost | 3,033 |  | 1,763 |  | 12,140 |  | 9,029 |  | 15,173 |  | 10,792
Interest cost | 8,219 |  | 4,787 |  | 9,801 |  | 7,162 |  | 18,020 |  | 11,949
Participant contributions | — |  | — |  | 846 |  | 728 |  | 846 |  | 728
Actuarial (gain) loss, including assumption changes | (10,649) |  | 12,911 |  | (35,483) |  | 14,044 |  | (46,132) |  | 26,955
Benefits paid from plan assets | (8,988) |  | (4,222) |  | (11,343) |  | (9,008) |  | (20,331) |  | (13,230)
Benefits paid from Company assets | (527) |  | (547) |  | (461) |  | (448) |  | (988) |  | (995)
Curtailment | (3,900) |  | (101) |  | (32,680) |  | — |  | (36,580) |  | (101)
Plan amendment | — |  | — |  | (104) |  | (37) |  | (104) |  | (37)
Settlement | (17,889) |  | — |  | (219) |  | (1,235) |  | (18,108) |  | (1,235)
Foreign currency exchange rate changes | — |  | — |  | (5,256) |  | 30,562 |  | (5,256) |  | 30,562
Ending balance | $ | 301,783 |  | $ | 332,484 |  | $ | 424,096 |  | $ | 486,855 |  | $ | 725,879 |  | $ | 819,339
Change in Plan Assets at Fair Value |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 355,287 |  | $ | — |  | $ | 365,718 |  | $ | 103,385 |  | $ | 721,005 |  | $ | 103,385
Impact of acquisition(1) | — |  | 324,292 |  | — |  | 218,644 |  | — |  | 542,936
Actual return on plan assets | 24,432 |  | 35,217 |  | 19,661 |  | 23,947 |  | 44,093 |  | 59,164
Participant contributions | — |  | — |  | 846 |  | 728 |  | 846 |  | 728
Employer contributions | 17,889 |  | — |  | 10,240 |  | 6,838 |  | 28,129 |  | 6,838
Benefits paid | (8,988) |  | (4,222) |  | (11,343) |  | (9,008) |  | (20,331) |  | (13,230)
Settlement | (17,889) |  | — |  | (218) |  | (1,235) |  | (18,107) |  | (1,235)
Foreign currency exchange rate changes | — |  | — |  | (3,123) |  | 22,419 |  | (3,123) |  | 22,419
Ending balance | $ | 370,731 |  | $ | 355,287 |  | $ | 381,781 |  | $ | 365,718 |  | $ | 752,512 |  | $ | 721,005
Funded Status | $ | 68,948 |  | $ | 22,803 |  | $ | (42,315) |  | $ | (121,137) |  | $ | 26,633 |  | $ | (98,334)
Amounts Recognized in the Consolidated Balance Sheets |  |  |  |  |  |  |  |  |  |  |
Other assets | $ | 68,948 |  | $ | 40,921 |  | $ | 4,818 |  | $ | 179 |  | $ | 73,766 |  | $ | 41,100
Other current liabilities | — |  | (18,118) |  | (437) |  | (471) |  | (437) |  | (18,589)
Other noncurrent liabilities | — |  | — |  | (46,696) |  | (120,845) |  | (46,696) |  | (120,845)
Net amount recognized | $ | 68,948 |  | $ | 22,803 |  | $ | (42,315) |  | $ | (121,137) |  | $ | 26,633 |  | $ | (98,334)
Weighted Average Assumptions Used to Determine Benefit Obligations |  |  |  |  |  |  |  |  |  |  |
Discount rate | 2.9 | % |  | 2.6 | % |  | 2.4 | % |  | 2.0 | % |  | 2.6 | % |  | 2.2 | %
Rate of compensation increase | — | % |  | 3.8 | % |  | 3.4 | % |  | 3.2 | % |  | 3.4 | % |  | 3.4 | %
(1) The Company assumed the Domestic Plans and certain foreign plans in connection with the acquisition of Anixter on June 22, 2020, as disclosed in Note 6, "Acquisitions and Disposals". For all defined benefit plans assumed as part of the merger with Anixter, the projected benefit obligation and fair value of plan assets were remeasured as of the acquisition date. The measurement date for all plans is December 31st. Accordingly, at the end of each fiscal year, the Company determines the discount rate to measure the plan liabilities at their present value. The discount rate reflects the current rate at which the pension liabilities could effectively be settled at the measurement date. This rate was estimated at the end of 2021 and 2020 using a yield curve based on corporate bond data, which the Company concluded was consistent with observable market conditions and industry standards for developing spot rate curves. At December 31, 2021 and 2020, the consolidated weighted-average discount rate of all plans was 2.6% and 2.2%, respectively, and these rates were used to measure the projected benefit obligation at the end of each respective year-end. The consolidated net funded status was $26.6 million at December 31, 2021, compared to a consolidated net unfunded status of $98.3 million at December 31, 2020. At December 31, 2021 and 2020, the Company's projected benefit obligation was $301.8 million and $332.5 million, respectively, for the Domestic Plans and $424.1 million and $486.9 million, respectively, for the Foreign Plans. The Company had 9 plans at December 31, 2021 and 13 plans at December 31, 2020 for which the projected benefit obligation was in excess of the fair value of plan assets. For these plans, the aggregate projected benefit obligation was $214.5 million and $504.8 million, respectively, and the aggregate fair value of plan assets was $167.4 million and $365.4 million, respectively. At December 31, 2021 and 2020, the Company' accumulated benefit obligation was $301.8 million and $328.2 million, respectively, for the Domestic Plans and $390.8 million and $417.6 million, respectively, for the Foreign Plans. The Company had 9 plans at December 31, 2021 and 13 plans at December 31, 2020 for which the accumulated benefit obligation was in excess of the fair value of plan assets. For these plans, the aggregate accumulated benefit obligation was $194.6 million and $435.6 million, respectively, and the aggregate fair value of plan assets was $167.4 million and $365.4 million, respectively. The following tables set forth the components of net periodic pension (benefit) cost for the Company's defined benefit plans:
| Domestic Plans(1) |  | Foreign Plans(1) |  | Total
(In thousands) | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Components of Net Periodic Pension (Benefit) Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 3,033 |  |  | $ | 1,763 |  |  | $ | — |  |  | $ | 12,140 |  |  | $ | 9,029 |  |  | $ | 4,602 |  |  | $ | 15,173 |  |  | $ | 10,792 |  |  | $ | 4,602 |
Interest cost | 8,219 |  |  | 4,787 |  |  | — |  |  | 9,801 |  |  | 7,162 |  |  | 4,362 |  |  | 18,020 |  |  | 11,949 |  |  | 4,362 |
Expected return on plan assets | (17,097) |  |  | (8,395) |  |  | — |  |  | (17,834) |  |  | (11,659) |  |  | (5,695) |  |  | (34,931) |  |  | (20,054) |  |  | (5,695) |
Recognized actuarial gain | — |  |  | — |  |  | — |  |  | 90 |  |  | — |  |  | (63) |  |  | 90 |  |  | — |  |  | (63) |
Curtailment | (3,900) |  |  | — |  |  | — |  |  | (32,680) |  |  | — |  |  | — |  |  | (36,580) |  |  | — |  |  | — |
Settlement | 290 |  |  | — |  |  | — |  |  | (59) |  |  | (144) |  |  | — |  |  | 231 |  |  | (144) |  |  | — |
Net periodic pension (benefit) cost | $ | (9,455) |  |  | $ | (1,845) |  |  | $ | — |  |  | $ | (28,542) |  |  | $ | 4,388 |  |  | $ | 3,206 |  |  | $ | (37,997) |  |  | $ | 2,543 |  |  | $ | 3,206 |
(1) As described above, the Company assumed the Domestic Plans and certain foreign plans in connection with the acquisition of Anixter on June 22, 2020. The Company began recognizing the associated net periodic pension (benefit) cost as of the acquisition date. The service cost of $15.2 million, $10.8 million and $4.6 million for the years ended December 31, 2021, 2020 and 2019, respectively, is reported as a component of selling, general and administrative expenses. The other components of net periodic pension (benefit) cost totaling net benefits of $53.2 million, $8.2 million and $1.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, are presented as components of other non-operating income ("other income, net"). The following weighted-average actuarial assumptions were used to determine net periodic pension (benefit) cost:
| Domestic Plans(1) |  | Foreign Plans(1) |  | Total
| 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Discount rate | 2.6 | % |  | 2.9 | % |  | — | % |  | 2.0 | % |  | 2.2 | % |  | 4.0 | % |  | 2.3 | % |  | 2.5 | % |  | 4.0 | %
Expected return on plan assets | 5.3 | % |  | 5.5 | % |  | — | % |  | 4.9 | % |  | 5.2 | % |  | 6.4 | % |  | 5.1 | % |  | 5.3 | % |  | 6.4 | %
Rate of compensation increase | 3.8 | % |  | 3.8 | % |  | — | % |  | 3.2 | % |  | 3.4 | % |  | 3.8 | % |  | 3.4 | % |  | 3.5 | % |  | 3.8 | %
(1) As described above, the Company assumed the Domestic Plans and certain foreign plans in connection with the acquisition of Anixter on June 22, 2020. The Company began using the related assumptions as of the acquisition date. The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the invested assets and future assets to be invested to provide for the benefits included in the projected benefit obligation. The Company uses historic plan asset returns combined with current market conditions to estimate the rate of return. The weighted-average expected long-term rate of return on plan assets used in the determination of net periodic pension cost for 2021 was 5.1%. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced an actual gain of 6.0% in 2021. The difference between the expected return and actual return on plan assets is amortized into expense over the service lives of the plan participants. These amounts are reflected on the balance sheet through charges to accumulated other comprehensive loss, a component of stockholders’ equity. The following table sets forth the changes and the end of year components of accumulated other comprehensive (income) loss for the defined benefit plans:
| Year Ended December 31,
(In thousands) | 2021 |  | 2020
Changes to Balance: |  |  |
Beginning balance, before tax effect | $ | (3,062) |  |  | $ | 8,890 |
Prior service credit arising in current year | (100) |  |  | (37) |
Net actuarial gain arising in current year | (93,064) |  |  | (12,154) |
Recognized actuarial gain | (90) |  |  | — |
Curtailment | 36,580 |  |  | (101) |
Settlement | (231) |  |  | 144 |
Foreign currency exchange rate changes | 1,179 |  |  | 196 |
Ending balance, before tax effect | $ | (58,788) |  |  | $ | (3,062) |
| As of December 31,
(In thousands) | 2021 |  | 2020
Components of Balance: |  |  |
Prior service credit | $ | (137) |  |  | $ | (37) |
Net actuarial gain | (58,651) |  |  | (3,025) |
Ending balance, before tax effect | (58,788) |  |  | (3,062) |
Tax effect | 13,605 |  |  | 562 |
Ending balance, after tax effect | $ | (45,183) |  |  | $ | (2,500) |
The following benefit payments, which reflect expected future service, are expected to be paid as follows:
(In thousands) | Domestic Plans |  | Foreign Plans |  | Total
2022 | $ | 11,215 |  |  | $ | 9,430 |  |  | $ | 20,645 |
2023 | 11,743 |  |  | 9,654 |  |  | 21,397 |
2024 | 12,385 |  |  | 10,294 |  |  | 22,679 |
2025 | 12,890 |  |  | 11,065 |  |  | 23,955 |
2026 | 13,508 |  |  | 11,525 |  |  | 25,033 |
2027 to 2031 | 73,410 |  |  | 84,171 |  |  | 157,581 |
The Company expects to contribute approximately $10.8 million to its Foreign Plans in 2022. The Company does not expect to make a contribution to its domestic qualified pension plan in 2022 due to its overfunded status. The assets of the various defined benefit plans are held in separate independent trusts and managed by independent third party advisors. The investment objective for the defined benefit plans is to ensure an adequate level of assets is available to fund the benefits owed to employees and their beneficiaries when they become payable. In meeting this objective, the Company seeks to achieve a level of absolute investment return consistent with a prudent level of portfolio risk. The Company's risk preference is to refrain from exposing the plans to higher volatility in pursuit of potential higher returns. The asset mixes and the asset allocation guidelines for the Domestic Plans and Foreign Plans are summarized as follows:
| Domestic Plans
|  |  | Allocation Guidelines
| December 31, 2021 |  | Min |  | Target |  | Max
Equities | 10.8 | % |  | 5 | % |  | 10 | % |  | 15 | %
Debt securities: |  |  |  |  |  |  |
Domestic treasuries | 36.1 |  |  | — |  |  | 34 |  |  | — |
Corporate bonds | 25.7 |  |  | — |  |  | 40 |  |  | — |
Other | 7.6 |  |  | 3 |  |  | 7 |  |  | 13 |
Total debt securities | 69.4 |  |  |  |  | 81 |  |  |
Property/real estate | 19.0 |  |  | 3 |  |  | 8 |  |  | 13 |
Other | 0.8 |  |  | — |  |  | 1 |  |  | — |
| 100.0 | % |  |  |  | 100 | % |  |
| Foreign Plans
|  |  | Allocation Guidelines
| December 31, 2021 |  | Min |  | Target |  | Max
Equities | 39.2 | % |  | 25 | % |  | 39 | % |  | 48 | %
Debt securities: |  |  |  |  |  |  |
Corporate bonds | 4.5 |  |  | — |  |  | — |  |  | 37 |
Other | 43.5 |  |  | 26 |  |  | 48 |  |  | 65 |
Total debt securities | 48.0 |  |  |  |  | 48 |  |  |
Property/real estate | 4.4 |  |  | 2 |  |  | 5 |  |  | 8 |
Insurance products | 4.9 |  |  | 5 |  |  | 5 |  |  | 5 |
Other | 3.5 |  |  | 3 |  |  | 3 |  |  | 13 |
| 100.0 | % |  |  |  | 100 | % |  |
| Domestic Plans
|  |  | Allocation Guidelines
| December 31, 2020 |  | Min |  | Target |  | Max
Equities | 38.6 | % |  | 30 | % |  | 37 | % |  | 45 | %
Debt securities: |  |  |  |  |  |  |
Domestic treasuries | 22.2 |  |  | — |  |  | 24 |  |  | 40 |
Corporate bonds | 6.7 |  |  | — |  |  | 8 |  |  | 40 |
Other | 15.6 |  |  | 9 |  |  | 14 |  |  | 19 |
Total debt securities | 44.5 |  |  |  |  | 46 |  |  |
Property/real estate | 14.8 |  |  | 9 |  |  | 16 |  |  | 23 |
Other | 2.1 |  |  | — |  |  | 1 |  |  | 5 |
| 100.0 | % |  |  |  | 100 | % |  |
| Foreign Plans
|  |  | Allocation Guidelines
| December 31, 2020 |  | Min |  | Target |  | Max
Equities | 38.1 | % |  | 25 | % |  | 41 | % |  | 48 | %
Debt securities: |  |  |  |  |  |  |
Corporate bonds | 5.9 | % |  | 1 |  |  | 1 |  |  | 37 |
Other | 40.6 |  |  | 26 |  |  | 44 |  |  | 65 |
Total debt securities | 46.5 |  |  |  |  | 45 |  |  |
Property/real estate | 4.8 |  |  | 2 |  |  | 6 |  |  | 8 |
Insurance products | 5.4 |  |  | 5 |  |  | 5 |  |  | 5 |
Other | 5.2 |  |  | 3 |  |  | 3 |  |  | 12 |
| 100.0 | % |  |  |  | 100 | % |  |
The plans' pension committees meet regularly to assess investment performance relative to asset allocation guidelines. The Company periodically rebalances its asset portfolios to be in line with its allocation guidelines. For 2021, the investment policy guidelines of the Domestic Plans were as follows: •Each asset class is managed by one or more active and passive investment managers •Each asset class may be invested in a commingled fund, mutual fund, or separately managed account •Investment in Exchange Traded Funds ("ETFs") is permissible •Each manager is expected to be "fully invested" with minimal cash holdings •Derivative instruments such as futures, swaps and options may be used on a limited basis; for funds that employ derivatives, the loss of invested capital to the Trust should be limited to the amount invested in the fund •The equity portfolio is diversified by sector and geography •The real assets portfolio is invested in Real Estate Investment Trusts ("REITs") and private real estate •The fixed income is invested in U.S. Treasuries, investment grade corporate debt (denominated in U.S. dollars), and other credit investments including below investment grade rated bonds and loans, securitized credit, and emerging market debt The investment policies for the Foreign Plans are the responsibility of the various trustees. Generally, the investment policy guidelines are as follows: •Make sure that the obligations to the beneficiaries of the plan can be met •Maintain funds at a level to meet the minimum funding requirements •The investment managers are expected to provide a return, within certain tracking tolerances, close to that of the relevant market’s indices The following tables set forth the fair value of assets by asset category for the Domestic Plans and Foreign Plans:
| December 31, 2021
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | NAV (1) |  | Total
Domestic Plans |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 40,102 |  |  | $ | 40,102 |
Debt securities: |  |  |  |  |  |  |  |  |
Domestic treasuries | — |  |  | — |  |  | — |  |  | 133,672 |  |  | 133,672 |
Corporate bonds | — |  |  | — |  |  | — |  |  | 95,198 |  |  | 95,198 |
Other | — |  |  | — |  |  | — |  |  | 28,246 |  |  | 28,246 |
Property/real estate | — |  |  | — |  |  | — |  |  | 70,648 |  |  | 70,648 |
Other | 2,865 |  |  | — |  |  | — |  |  | — |  |  | 2,865 |
Total investments in Domestic Plans | $ | 2,865 |  |  | $ | — |  |  | $ | — |  |  | $ | 367,866 |  |  | $ | 370,731 |
Foreign Plans |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 149,707 |  |  | $ | 149,707 |
Debt securities: |  |  |  |  |  |  |  |  |
Corporate bonds | — |  |  | — |  |  | — |  |  | 17,328 |  |  | 17,328 |
Other | — |  |  | — |  |  | — |  |  | 165,863 |  |  | 165,863 |
Property/real estate | — |  |  | — |  |  | — |  |  | 16,632 |  |  | 16,632 |
Insurance products | — |  |  | 18,781 |  |  | — |  |  | — |  |  | 18,781 |
Other | 1,248 |  |  | — |  |  | — |  |  | 12,222 |  |  | 13,470 |
Total investments in Foreign Plans | $ | 1,248 |  |  | $ | 18,781 |  |  | $ | — |  |  | $ | 361,752 |  |  | $ | 381,781 |
Total |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 189,809 |  |  | $ | 189,809 |
Debt securities: |  |  |  |  |  |  |  |  |
Domestic treasuries | — |  |  | — |  |  | — |  |  | 133,672 |  |  | 133,672 |
Corporate bonds | — |  |  | — |  |  | — |  |  | 112,526 |  |  | 112,526 |
Other | — |  |  | — |  |  | — |  |  | 194,109 |  |  | 194,109 |
Property/real estate | — |  |  | — |  |  | — |  |  | 87,280 |  |  | 87,280 |
Insurance products | — |  |  | 18,781 |  |  | — |  |  | — |  |  | 18,781 |
Other | 4,113 |  |  | — |  |  | — |  |  | 12,222 |  |  | 16,335 |
Total investments | $ | 4,113 |  |  | $ | 18,781 |  |  | $ | — |  |  | $ | 729,618 |  |  | $ | 752,512 |
(1) Investments measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. The amounts presented in the tables above are intended to reconcile the fair value hierarchy to the total fair value of plan assets.
| December 31, 2020
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | NAV (1) |  | Total
Domestic Plans |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 137,098 |  |  | $ | 137,098 |
Debt securities: |  |  |  |  |  |  |  |  |
Domestic treasuries | — |  |  | — |  |  | — |  |  | 78,808 |  |  | 78,808 |
Corporate bonds | — |  |  | — |  |  | — |  |  | 23,824 |  |  | 23,824 |
Other | — |  |  | — |  |  | — |  |  | 55,547 |  |  | 55,547 |
Property/real estate | — |  |  | — |  |  | — |  |  | 52,708 |  |  | 52,708 |
Other | 7,302 |  |  | — |  |  | — |  |  | — |  |  | 7,302 |
Total investments in Domestic Plans | $ | 7,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 347,985 |  |  | $ | 355,287 |
Foreign Plans |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 139,537 |  |  | 139,537 |
Debt securities: |  |  |  |  |  |  |  |  |
Corporate bonds | — |  |  | — |  |  | — |  |  | 21,677 |  |  | 21,677 |
Other | — |  |  | — |  |  | — |  |  | 148,469 |  |  | 148,469 |
Property/real estate | — |  |  | — |  |  | — |  |  | 17,365 |  |  | 17,365 |
Insurance products | — |  |  | 19,611 |  |  | — |  |  | — |  |  | 19,611 |
Other | 747 |  |  | — |  |  | — |  |  | 18,312 |  |  | 19,059 |
Total investments in Foreign Plans | $ | 747 |  |  | $ | 19,611 |  |  | $ | — |  |  | $ | 345,360 |  |  | $ | 365,718 |
Total |  |  |  |  |  |  |  |  |
Equities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 276,635 |  |  | $ | 276,635 |
Debt securities: |  |  |  |  |  |  |  |  |
Domestic treasuries | — |  |  | — |  |  | — |  |  | 78,808 |  |  | 78,808 |
Corporate bonds | — |  |  | — |  |  | — |  |  | 45,501 |  |  | 45,501 |
Other | — |  |  | — |  |  | — |  |  | 204,016 |  |  | 204,016 |
Property/real estate | — |  |  | — |  |  | — |  |  | 70,073 |  |  | 70,073 |
Insurance products | — |  |  | 19,611 |  |  | — |  |  | — |  |  | 19,611 |
Other | 8,049 |  |  | — |  |  | — |  |  | 18,312 |  |  | 26,361 |
Total investments | $ | 8,049 |  |  | $ | 19,611 |  |  | $ | — |  |  | $ | 693,345 |  |  | $ | 721,005 |
(1) Investments measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy. The amounts presented in the tables above are intended to reconcile the fair value hierarchy to the total fair value of plan assets. The assets of the Domestic Plans and Foreign Plans are measured at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level of any input that is significant to the measurement of fair value. Investments for which fair value is measured using the net asset value (NAV) per share practical expedient are not classified in the fair value hierarchy. The majority of pension assets are comprised of common/collective/pool funds (i.e., mutual funds). These funds are valued at the net asset value of shares held in the underlying funds. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while the Company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Other Benefits As permitted by the Merger Agreement, Anixter granted restricted stock units prior to June 22, 2020 in the ordinary course of business to its employees and directors. These awards, for which vesting did not accelerate solely as a result of the Merger, were converted into cash-only settled Wesco phantom stock units, which vest ratably over a 3-year period. As of December 31, 2021 and 2020, the estimated fair value of these awards was $22.7 million and $22.8 million, respectively. As of December 31, 2021, the Company's liability for these awards was $17.3 million, of which $10.9 million was included in accrued payroll and benefit costs and $6.4 million was a component of other noncurrent liabilities in the Consolidated Balance Sheet. As of December 31, 2020, the Company's liability for these awards was $11.7 million, of which $6.5 million was included in accrued payroll and benefit costs and $5.2 million was a component of other noncurrent liabilities in the Consolidated Balance Sheet. The Company recognized compensation expense associated with these awards of $13.6 million and $9.2 million for the years ended December 31, 2021 and 2020, respectively, which is reported as a component of selling, general and administrative expenses.

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