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Segment Reporting | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting Disclosure | 13. BUSINESS SEGMENTS The Company has operating segments comprising three strategic business units consisting of EES, CSS and UBS. These operating segments are equivalent to the Company's reportable segments. The Company's chief operating decision maker evaluates the performance of its operating segments based on net sales, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), and adjusted EBITDA margin percentage. The Company incurs corporate costs primarily related to treasury, tax, information technology, legal and other centralized functions. The Company also has various corporate assets. Segment assets may not include jointly used assets, but segment results include depreciation expense or other allocations related to those assets. Interest expense and other non-operating items are either not allocated to the segments or reviewed on a segment basis. Corporate expenses and assets not directly identifiable with a reportable segment are reported in the tables below to reconcile the reportable segments to the consolidated financial statements. The following tables set forth financial information by reportable segment for the periods presented:
(In millions) | Three Months Ended September 30, 2023
EES |  | CSS |  | UBS |  | Total
Net sales | $ | 2,190.7 |  |  | $ | 1,778.0 |  |  | $ | 1,675.7 |  |  | $ | 5,644.4 |
| Three Months Ended September 30, 2022
(In millions) | EES |  | CSS |  | UBS |  | Total
Net sales | $ | 2,234.8 |  |  | $ | 1,602.4 |  |  | $ | 1,608.7 |  |  | $ | 5,445.9 |
(In millions) | Nine Months Ended September 30, 2023
EES |  | CSS |  | UBS |  | Total
Net sales | $ | 6,526.1 |  |  | $ | 5,360.9 |  |  | $ | 5,024.8 |  |  | $ | 16,911.8 |
| Nine Months Ended September 30, 2022
(In millions) | EES |  | CSS |  | UBS |  | Total
Net sales | $ | 6,654.9 |  |  | $ | 4,638.6 |  |  | $ | 4,568.1 |  |  | $ | 15,861.6 |
(In millions) | Three Months Ended September 30, 2023
EES |  | CSS |  | UBS
Adjusted EBITDA | $ | 191.5 |  | $ | 175.5 |  | $ | 196.4
Adjusted EBITDA Margin % | 8.7 | % |  | 9.9 | % |  | 11.7 | %
| Three Months Ended September 30, 2022
(In millions) | EES |  | CSS |  | UBS
Adjusted EBITDA | $ | 225.8 |  | $ | 156.4 |  | $ | 186.3
Adjusted EBITDA Margin % | 10.1 | % |  | 9.8 | % |  | 11.6 | %
(In millions) | Nine Months Ended September 30, 2023
EES |  | CSS |  | UBS
Adjusted EBITDA | $ | 563.5 |  | $ | 510.5 |  | $ | 572.7
Adjusted EBITDA Margin % | 8.6 | % |  | 9.5 | % |  | 11.4 | %
| Nine Months Ended September 30, 2022
(In millions) | EES |  | CSS |  | UBS
Adjusted EBITDA | $ | 653.6 |  | $ | 429.5 |  | $ | 491.7
Adjusted EBITDA Margin % | 9.8 | % |  | 9.3 | % |  | 10.8 | %
The following table sets forth total assets by reportable segment for the periods presented:
| As of
| September 30, 2023
(In millions) | EES |  | CSS |  | UBS |  | Corporate(1) |  | Total
Total assets | $ | 4,546.4 |  |  | $ | 5,587.7 |  |  | $ | 3,957.1 |  |  | $ | 1,077.4 |  |  | $ | 15,168.6 |
| As of
| December 31, 2022
(In millions) | EES |  | CSS |  | UBS |  | Corporate(1) |  | Total
Total assets | $ | 4,480.4 |  |  | $ | 5,504.0 |  |  | $ | 3,827.4 |  |  | $ | 999.9 |  |  | $ | 14,811.7 |
(1) Total assets for Corporate primarily consist of cash and cash equivalents, deferred income taxes, property, buildings and equipment, capitalized cloud computing arrangement costs, operating lease assets, and pension assets. The following tables reconcile net income attributable to common stockholders to adjusted EBITDA and adjusted EBITDA margin % by segment, which are non-GAAP financial measures, for the periods presented:
|  | Three Months Ended September 30, 2023
(In millions) |  | EES |  | CSS |  | UBS |  | Corporate |  | Total
Net income attributable to common stockholders |  | $ | 177.9 |  | $ | 146.0 |  | $ | 188.7 |  | $ | (293.6) |  | $ | 219.0
Net income (loss) attributable to noncontrolling interests |  | — |  | 0.7 |  | — |  | (0.1) |  | 0.6
Preferred stock dividends |  | — |  | — |  | — |  | 14.4 |  | 14.4
Provision for income taxes(1) |  | — |  | — |  | — |  | 44.3 |  | 44.3
Interest expense, net(1) |  | — |  | — |  | — |  | 98.5 |  | 98.5
Depreciation and amortization |  | 10.9 |  | 18.0 |  | 6.3 |  | 9.9 |  | 45.1
Other expense (income), net |  | 1.7 |  | 9.7 |  | 0.6 |  | (8.3) |  | 3.7
Stock-based compensation expense |  | 1.0 |  | 1.1 |  | 0.8 |  | 7.9 |  | 10.8
Merger-related and integration costs(2) |  | — |  | — |  | — |  | 15.0 |  | 15.0
Restructuring costs(3) |  | — |  | — |  | — |  | 5.6 |  | 5.6
Adjusted EBITDA |  | $ | 191.5 |  | $ | 175.5 |  | $ | 196.4 |  | $ | (106.4) |  | $ | 457.0
Adjusted EBITDA margin % |  | 8.7 | % |  | 9.9 | % |  | 11.7 | % |  |  |  |
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.
(2) Merger-related and integration costs include integration and professional fees associated with the integration of Wesco and Anixter, including digital transformation costs, as well as advisory, legal, and separation costs associated with the merger between the two companies.
(3) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.
|  | Three Months Ended September 30, 2022
(In millions) |  | EES |  | CSS |  | UBS |  | Corporate |  | Total
Net income attributable to common stockholders |  | $ | 214.1 |  | $ | 138.7 |  | $ | 180.4 |  | $ | (308.0) |  | $ | 225.2
Net income attributable to noncontrolling interests |  | 0.2 |  | — |  | — |  | 0.4 |  | 0.6
Preferred stock dividends |  | — |  | — |  | — |  | 14.4 |  | 14.4
Provision for income taxes(1) |  | — |  | — |  | — |  | 85.6 |  | 85.6
Interest expense, net(1) |  | — |  | — |  | — |  | 75.1 |  | 75.1
Depreciation and amortization |  | 9.6 |  | 15.9 |  | 5.9 |  | 11.3 |  | 42.7
Other (income) expense, net |  | (1.1) |  | 0.3 |  | (1.1) |  | 2.6 |  | 0.7
Stock-based compensation expense(2) |  | 3.0 |  | 1.5 |  | 1.1 |  | 2.8 |  | 8.4
Merger-related and integration costs(3) |  | — |  | — |  | — |  | 13.2 |  | 13.2
Adjusted EBITDA |  | $ | 225.8 |  | $ | 156.4 |  | $ | 186.3 |  | $ | (102.6) |  | $ | 465.9
Adjusted EBITDA margin % |  | 10.1 | % |  | 9.8 | % |  | 11.6 | % |  |  |  |
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended September 30, 2022 excludes $1.3 million that is included in merger-related and integration costs.
(3) Merger-related and integration costs include integration and professional fees associated with the integration of Wesco and Anixter, including digital transformation costs, as well as advisory, legal, and separation costs associated with the merger between the two companies.
|  | Nine Months Ended September 30, 2023
(In millions) |  | EES |  | CSS |  | UBS |  | Corporate |  | Total
Net income attributable to common stockholders |  | $ | 516.2 |  | $ | 413.6 |  | $ | 552.1 |  | $ | (901.4) |  | $ | 580.5
Net (loss) income attributable to noncontrolling interests |  | (0.8) |  | 1.0 |  | — |  | (0.2) |  | —
Preferred stock dividends |  | — |  | — |  | — |  | 43.1 |  | 43.1
Provision for income taxes(1) |  | — |  | — |  | — |  | 160.2 |  | 160.2
Interest expense, net(1) |  | — |  | — |  | — |  | 292.3 |  | 292.3
Depreciation and amortization |  | 32.3 |  | 53.9 |  | 18.7 |  | 31.5 |  | 136.4
Other expense (income), net |  | 12.0 |  | 38.2 |  | (0.5) |  | (35.1) |  | 14.6
Stock-based compensation expense(2) |  | 3.8 |  | 3.8 |  | 2.4 |  | 22.1 |  | 32.1
Merger-related and integration costs(3) |  | — |  | — |  | — |  | 45.4 |  | 45.4
Restructuring costs(4) |  | — |  | — |  | — |  | 15.4 |  | 15.4
Adjusted EBITDA |  | $ | 563.5 |  | $ | 510.5 |  | $ | 572.7 |  | $ | (326.7) |  | $ | 1,320.0
Adjusted EBITDA margin % |  | 8.6 | % |  | 9.5 | % |  | 11.4 | % |  |  |  |
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the nine months ended September 30, 2023 excludes $2.6 million that is included in merger-related and integration costs.
(3) Merger-related and integration costs include integration and professional fees associated with the integration of Wesco and Anixter, including digital transformation costs, as well as advisory, legal, and separation costs associated with the merger between the two companies.
(4) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.
|  | Nine Months Ended September 30, 2022
(In millions) |  | EES |  | CSS |  | UBS |  | Corporate |  | Total
Net income attributable to common stockholders |  | $ | 615.5 |  | $ | 373.1 |  | $ | 472.1 |  | $ | (862.2) |  | $ | 598.5
Net income attributable to noncontrolling interests |  | 0.6 |  | — |  | — |  | 0.8 |  | 1.4
Preferred stock dividends |  | — |  | — |  | — |  | 43.1 |  | 43.1
Provision for income taxes(1) |  | — |  | — |  | — |  | 203.2 |  | 203.2
Interest expense, net(1) |  | — |  | — |  | — |  | 207.1 |  | 207.1
Depreciation and amortization |  | 32.8 |  | 51.9 |  | 17.4 |  | 33.5 |  | 135.6
Other (income) expense, net |  | (2.6) |  | 0.7 |  | (0.5) |  | 5.4 |  | 3.0
Stock-based compensation expense(2) |  | 7.3 |  | 3.8 |  | 2.7 |  | 16.6 |  | 30.4
Merger-related and integration costs(3) |  | — |  | — |  | — |  | 52.2 |  | 52.2
Adjusted EBITDA |  | $ | 653.6 |  | $ | 429.5 |  | $ | 491.7 |  | $ | (300.3) |  | $ | 1,274.5
Adjusted EBITDA margin % |  | 9.8 | % |  | 9.3 | % |  | 10.8 | % |  |  |  |
(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the nine months ended September 30, 2022 excludes $4.1 million that is included in merger-related and integration costs.
(3) Merger-related and integration costs include integration and professional fees associated with the integration of Wesco and Anixter, including digital transformation costs, as well as advisory, legal, and separation costs associated with the merger between the two companies.
Note: Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and restructuring costs. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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