XML 31 R17.htm IDEA: XBRL DOCUMENT v3.22.0.1
LEASES
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lessee, Operating Leases
9. LEASES
Wesco leases substantially all of its real estate, as well as automobiles, trucks, information technology hardware, and other equipment under lease arrangements classified as operating.
The Company's finance leases, which are recorded in the Consolidated Balance Sheets as a component of property, buildings and equipment, current portion of long-term debt and long-term debt, are not material to the consolidated financial statements and notes thereto. Accordingly, finance leases have not been disclosed herein.
The following table sets forth supplemental balance sheet information related to operating leases for the periods presented:
 As of December 31,
(In thousands)2021
2020(1)
Operating lease assets$530,863 $534,705 
Current operating lease liabilities(2)
129,881 128,322 
Noncurrent operating lease liabilities414,248 414,889 
Total operating lease liabilities$544,129 $543,211 
(1)    Operating lease assets and liabilities of $1.9 million and $2.1 million, respectively, are classified as held for sale as of December 31, 2020, as disclosed in Note 7, "Assets and Liabilities Held For Sale".
(2)    Current operating lease liabilities are recorded as a component of other current liabilities in the Consolidated Balance Sheets.
The following table sets forth the Company's total lease cost, which is recorded as a component of selling, general and administrative expenses, for the periods presented:
Year Ended December 31,
(In thousands)202120202019
Operating lease cost$169,892 $127,725 $73,613 
Short-term lease cost3,578 494 90 
Variable lease cost49,464 36,230 23,385 
Total lease cost$222,934 $164,449 $97,088 
Variable lease cost consists of the non-lease components described in Note 2, "Accounting Policies", as well as taxes and insurance for Wesco's leased real estate.
The following table sets forth supplemental cash flow information related to operating leases for the periods presented:
Year Ended December 31,
(In thousands)202120202019
Operating cash flows from operating leases$153,626 $117,106 $75,775 
Right-of-use assets obtained in exchange for new operating lease liabilities157,523 121,207 60,586 
As of December 31, 2021 and 2020, the weighted-average remaining lease term for operating leases was 6.0 years and 6.1 years, respectively. The weighted-average discount rate used to measure operating leases was 4.2% and 4.6% as of December 31, 2021 and 2020, respectively.
The following table sets forth the maturities of the Company's operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the Consolidated Balance Sheet as of December 31, 2021:
(In thousands)
2022$152,919 
2023126,012 
202494,494 
202564,875 
202648,813 
Thereafter136,123 
Total undiscounted operating lease payments623,236 
Less: imputed interest(79,107)
Total operating lease liabilities$544,129 
Operating lease payments include $26.9 million related to options to extend lease terms that are reasonably certain of being exercised. As of December 31, 2021, the Company has additional leases related to facilities that have not yet commenced of $67.1 million. These operating leases, which are not recorded in the Consolidated Balance Sheet as of December 31, 2021, will commence in 2022 with lease terms of 1.5 to 10.5 years.