DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION Document | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Entity [Abstract] | ||
Entity Registrant Name | WESCO INTERNATIONAL INC. | |
Entity Central Index Key | 929008 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 44,217,532 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Accrued Liabilities, Current | $175,389 | $181,672 |
Current Assets: | ||
Cash and cash equivalents | 154,351 | 128,319 |
Allowance for Doubtful Accounts Receivable, Current | 20,646 | 21,084 |
Trade accounts receivable, net of allowance for doubtful accounts of $23,069 and $19,309 in 2014 and 2013, respectively | 1,082,199 | 1,117,420 |
Accounts and Other Receivables, Net, Current | 123,896 | 138,745 |
Inventories, net | 814,363 | 819,502 |
Prepaid expenses and other current assets | 138,652 | 146,352 |
Total current assets | 2,313,461 | 2,350,338 |
Property, buildings and equipment, net of accumulated depreciation of $229,041 and $213,758 in 2014 and 2013, respectively | 173,878 | 182,725 |
Intangible assets, net | 398,673 | 429,840 |
Goodwill | 1,675,581 | 1,735,440 |
Other assets | 50,787 | 56,094 |
Total assets | 4,612,380 | 4,754,437 |
Current Liabilities: | ||
Accounts payable | 771,881 | 765,135 |
Accrued payroll and benefit costs | 39,948 | 67,935 |
Short-term debt | 49,663 | 46,787 |
Current portion of long-term debt | 2,231 | 2,343 |
Total current liabilities | 1,039,112 | 1,063,872 |
Long-term Debt, Excluding Current Maturities | 1,336,881 | 1,366,430 |
Other noncurrent liabilities | 49,387 | 49,227 |
Deferred income taxes | 349,682 | 346,743 |
Total liabilities | 2,775,062 | 2,826,272 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.01 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Additional capital | 1,100,068 | 1,102,369 |
Retained earnings | 1,690,808 | 1,643,914 |
Treasury stock, at cost; 18,247,467 and 18,179,275 shares in 2014 and 2013, respectively | -637,755 | -616,366 |
Accumulated other comprehensive income | -315,706 | -201,892 |
Total WESCO International stockholders' equity | 1,837,318 | 1,928,165 |
Noncontrolling interest | -725 | -487 |
Total stockholders' equity | 1,838,043 | 1,928,652 |
Total liabilities and stockholders' equity | 4,612,380 | 4,754,437 |
Common Stock [Member] | ||
Stockholders' Equity: | ||
Common stock | 585 | 584 |
Common Class B [Member] | ||
Stockholders' Equity: | ||
Common stock | $43 | $43 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $20,646,000 | $21,084,000 |
Accumulated depreciation | 232,412,000 | 229,196,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 139,192 | 110,828 |
Debt discount | $171,547,000 | $174,686,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 18,550,758 | 18,250,178 |
Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 210,000,000 | 210,000,000 |
Common stock, shares, issued (in shares) | 58,480,990 | 58,400,736 |
Common stock, shares outstanding (in shares) | 44,269,663 | 44,489,989 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 4,339,431 | 4,339,431 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $1,816,330 | $1,810,825 |
Cost of goods sold | 1,448,639 | 1,436,032 |
Selling, general and administrative expense | 264,585 | 265,462 |
Depreciation and amortization | 15,921 | 16,372 |
Income from operations | 87,185 | 92,959 |
Interest expense, net | 20,894 | 20,688 |
Income before income taxes | 66,291 | 72,271 |
Provision for income taxes | 19,498 | 20,416 |
Net income | 46,793 | 51,855 |
Net (loss) income attributable to noncontrolling interest | -238 | -50 |
Net income attributable to WESCO International, Inc. | 47,031 | 51,905 |
Comprehensive Income: | ||
Foreign currency translation adjustment | -113,814 | -46,500 |
Comprehensive income attributable to WESCO International, Inc. | ($66,783) | $5,405 |
Earnings per share attributable to WESCO International, Inc. | ||
Basic (in dollars per share) | $1.06 | $1.17 |
Diluted (in dollars per share) | $0.90 | $0.97 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities: | ||
Net income | $46,793 | $51,855 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,921 | 16,372 |
Deferred income taxes | 7,849 | 7,864 |
Other operating activities, net | 7,665 | 2,202 |
Changes in assets and liabilities | ||
Increase (Decrease) in Accounts Receivable | -9,705 | 55,285 |
Increase (Decrease) in Accounts and Other Receivables | -12,075 | -22,868 |
Inventories, net | -13,248 | -17,373 |
Prepaid expenses and other current assets | 21,474 | -19,668 |
Accounts payable | 20,589 | 43,604 |
Accrued payroll and benefit costs | -26,635 | -16,854 |
Other current and noncurrent liabilities | -12,132 | 11,128 |
Net cash provided by operating activities | 90,056 | 46,713 |
Investing Activities: | ||
Capital expenditures | -5,026 | -5,012 |
Acquisition payments, net of cash acquired | 0 | -91,187 |
Other investing activities | 785 | 39 |
Net cash used in investing activities | -4,241 | -96,160 |
Financing Activities: | ||
Proceeds from issuance of short-term debt | 49,360 | 18,503 |
Repayments of short-term debt | -43,958 | -13,211 |
Proceeds from issuance of long-term debt | 319,939 | 404,922 |
Repayments of Long-term Debt | -344,321 | -390,232 |
Other financing activities, net | -7,209 | 8,888 |
Net cash used in financing activities | -53,791 | 23,539 |
Payments for Repurchase of Common Stock | -27,602 | -5,331 |
Effect of exchange rate on cash and cash equivalents | -5,992 | -1,461 |
Net change in cash and cash equivalents | 26,032 | -27,369 |
Cash and cash equivalents at the beginning of period | 128,319 | 123,725 |
Cash and cash equivalents at the end of period | $154,351 | $96,356 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION |
WESCO International, Inc. and its subsidiaries (collectively, “WESCO” or the "Company"), headquartered in Pittsburgh, Pennsylvania, is a full-line distributor of electrical, industrial and communications maintenance, repair and operating (“MRO”) and original equipment manufactures (“OEM”) products, construction materials, and advanced supply chain management and logistics services used primarily in the industrial, construction, utility and commercial, institutional and government markets. We serve over 75,000 active customers globally, through approximately 485 full service branches and nine distribution centers located primarily in the United States, Canada and Mexico, with operations in 16 additional countries. |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
ACCOUNTING POLICIES | ACCOUNTING POLICIES | |
Basis of Presentation | ||
The accompanying unaudited Condensed Consolidated Financial Statements of WESCO have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). The unaudited condensed consolidated financial information should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in WESCO’s 2014 Annual Report on Form 10-K as filed with the SEC on February 24, 2015. The Condensed Consolidated Balance Sheet at December 31, 2014 was derived from the audited Consolidated Financial Statements as of that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. | ||
The unaudited Condensed Consolidated Balance Sheet as of March 31, 2015, the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014, respectively, and the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014, respectively, in the opinion of management, have been prepared on the same basis as the audited Consolidated Financial Statements and include all adjustments necessary for the fair statement of the results of the interim periods presented herein. All adjustments reflected in the unaudited condensed consolidated financial information are of a normal recurring nature unless indicated. The results for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. | ||
The Condensed Consolidated Balance Sheet at December 31, 2014 and the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 include certain reclassifications to previously reported amounts to conform to the current period presentation. | ||
Fair Value of Financial Instruments | ||
The Company measures the fair value of financial assets and liabilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, "Fair Value Measurements and Disclosures," which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. | ||
ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. | |
• | Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. | |
• | Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
At March 31, 2015, the carrying value of WESCO’s 6.0% Convertible Senior Debentures due 2029 (the "2029 Debentures") was $178.6 million and the fair value was approximately $849.8 million. At December 31, 2014, the carrying value of WESCO’s 2029 Debentures was $177.6 million and the fair value was approximately $936.1 million. The reported carrying amounts of WESCO’s other debt instruments approximate their fair values. The Company uses a market approach to fair value all of its debt instruments, utilizing quoted prices in active markets, interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, all of the Company's debt instruments are classified as Level 2 within the valuation hierarchy. For all of the Company's remaining financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities, carrying values are considered to approximate fair value due to the short maturity of these instruments. | ||
New Accounting Pronouncements | ||
In May 2014, the FASB and International Accounting Standards Board issued a converged final standard on the recognition of revenue from contracts with customers. This updated guidance provides a framework for addressing revenue recognition issues and replaces almost all existing revenue recognition guidance in current U.S. generally accepted accounting principles. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. This guidance is effective for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the future impact of this guidance on WESCO's financial position, results of operations and cash flows. | ||
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in this Update require a reporting entity to treat a performance target that affects vesting and could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation—Stock Compensation, to awards with performance conditions that affect vesting. For all entities, ASU 2014-12 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. This ASU may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption and to all new or modified awards thereafter. The adoption of this guidance is not expected to have an impact on WESCO's consolidated financial statements and notes thereto. | ||
In September 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This ASU describes how an entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used with existing auditing standards. The amendments in this ASU are effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have an impact on WESCO's consolidated financial statements and notes thereto. | ||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. To simplify the presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). Management is currently evaluating the future impact of this guidance on WESCO's financial position, results of operations and cash flows. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
ACQUISITIONS | ACQUISITIONS | |||
The following table sets forth the consideration paid for acquisitions during the three months ended March 31, 2014: | ||||
(In thousands of dollars) | ||||
Fair value of assets acquired | $ | 104,601 | ||
Fair value of liabilities assumed | 13,414 | |||
Cash paid for acquisitions | $ | 91,187 | ||
2014 Acquisitions of LaPrairie, Inc., Hazmasters, Inc. and Hi-Line Utility Supply. | ||||
On February 1, 2014, WESCO Distribution, Inc., through its wholly-owned Canadian subsidiary, completed the acquisition of LaPrairie, Inc. ("LaPrairie"), a wholesale distributor of electrical products with approximately $30 million in annual sales servicing the transmission, distribution, and substation needs of utilities and utility contractors from a single location in Newmarket, Ontario. WESCO funded the purchase price paid at closing with cash. The purchase price was allocated to the respective assets and liabilities based upon their estimated fair values as of the acquisition date. The fair value of intangibles was estimated by management and the allocation resulted in intangible assets of $11.0 million and goodwill of $8.9 million. The majority of goodwill is deductible for tax purposes. | ||||
On March 17, 2014, WESCO Distribution, Inc., through its wholly-owned Canadian subsidiary, completed the acquisition of Hazmasters, Inc. ("Hazmasters"), a leading independent Canadian distributor of safety products with approximately $80 million in annual sales servicing customers in the industrial, construction, commercial, institution, and government markets from 14 branches across Canada. WESCO funded the purchase price paid at closing with cash and borrowings under the Revolving Credit Facility. The purchase price was allocated to the respective assets and liabilities based upon their estimated fair values as of the acquisition date. The fair value of intangibles was estimated by management and the allocation resulted in intangible assets of $28.1 million and goodwill of $29.5 million, which is not deductible for tax purposes. | ||||
On June 11, 2014, Wesco Distribution, Inc., completed the acquisition of Hi-Line Utility Supply ("Hi-Line"), a provider of utility MRO and safety products, as well as rubber goods testing and certification services, with approximately $30 million in annual sales from locations in Chicago, Illinois and Millbury, Massachusetts. WESCO funded the purchase price paid at closing with cash. The purchase price was allocated to the respective assets and liabilities based upon their estimated fair values as of the acquisition date. The fair value of intangibles was estimated by management and the allocation resulted in intangible assets of $14.2 million and goodwill of $24.0 million. The majority of goodwill is deductible for tax purposes. | ||||
For all acquisitions made in 2014, the intangible assets include customer relationships of $38.9 million amortized over 2 to 12 years, supplier relationships of $3.2 million amortized over 10 years, trademarks of $10.9 million, and other intangibles of $0.3 million. Certain trademarks have been assigned an indefinite life while others are amortized over 5 and 10 years. No residual value is estimated for the intangible assets being amortized. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | ||||||||||||
WESCO’s stock-based employee compensation plans are comprised of stock-settled stock appreciation rights, restricted stock units and performance-based awards. Compensation cost for all stock-based awards is measured at fair value on the date of grant and compensation cost is recognized, net of estimated forfeitures, over the service period for awards expected to vest. The fair value of stock-settled stock appreciation rights and performance-based awards with market conditions is determined using the Black-Scholes and Monte Carlo simulation models, respectively. The fair value of restricted stock units and performance-based awards with performance conditions is determined by the grant-date closing price of WESCO’s common stock. The forfeiture assumption is based on WESCO’s historical employee behavior that is reviewed on an annual basis. No dividends are assumed. | |||||||||||||
During the three months ended March 31, 2015 and 2014, WESCO granted the following stock-settled appreciation rights, restricted stock units and performance-based awards at the following weighted-average fair values and assumptions: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Stock-settled appreciation rights granted | 394,182 | 272,213 | |||||||||||
Weighted-average fair value | $ | 21.68 | $ | 30.66 | |||||||||
Restricted stock units granted | 78,292 | 62,506 | |||||||||||
Weighted-average fair value | $ | 69.54 | $ | 85.35 | |||||||||
Performance-based awards granted | 59,661 | 44,046 | |||||||||||
Weighted-average fair value | $ | 67.81 | $ | 86.65 | |||||||||
The fair value of stock-settled appreciation rights was estimated using the following weighted-average assumptions: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Risk free interest rate | 1.6 | % | 1.5 | % | |||||||||
Expected life (in years) | 5 | 5 | |||||||||||
Expected volatility | 32 | % | 39 | % | |||||||||
The risk-free interest rate is based on the U.S. Treasury Daily Yield Curve rates as of the grant date. The expected life is based on historical exercise experience and the expected volatility is based on the volatility of the Company's daily stock prices over a five-year period preceding the grant date. | |||||||||||||
The following table sets forth a summary of stock-settled stock appreciation rights and related information for the three months ended March 31, 2015: | |||||||||||||
Awards | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual Term (In years) | (In thousands) | |||||||||||
Outstanding at December 31, 2014 | 2,480,745 | $ | 50.91 | ||||||||||
Granted | 394,182 | 69.54 | |||||||||||
Exercised | (27,316 | ) | 40.78 | ||||||||||
Forfeited | (7,800 | ) | 81.12 | ||||||||||
Outstanding at March 31, 2015 | 2,839,811 | 53.51 | 5.6 | $ | 51,128.90 | ||||||||
Exercisable at March 31, 2015 | 2,190,049 | $ | 47.4 | 4.5 | $ | 50,956.50 | |||||||
The following table sets forth a summary of time-based restricted stock units and related information for the three months ended March 31, 2015: | |||||||||||||
Awards | Weighted- | ||||||||||||
Average | |||||||||||||
Fair | |||||||||||||
Value | |||||||||||||
Unvested at December 31, 2014 | 185,457 | $ | 73.87 | ||||||||||
Granted | 78,292 | 69.54 | |||||||||||
Vested | (61,787 | ) | 64.33 | ||||||||||
Forfeited | (3,470 | ) | 78.5 | ||||||||||
Unvested at March 31, 2015 | 198,492 | $ | 75.05 | ||||||||||
Performance shares are awards for which the vesting will occur based on market or performance conditions. The following table sets forth a summary of performance-based awards for the three months ended March 31, 2015: | |||||||||||||
Awards | Weighted- | ||||||||||||
Average | |||||||||||||
Fair | |||||||||||||
Value | |||||||||||||
Unvested at December 31, 2014 | 130,004 | $ | 80.21 | ||||||||||
Granted | 59,661 | 67.81 | |||||||||||
Vested | (38,869 | ) | 72.25 | ||||||||||
Forfeited | (9,616 | ) | 86.09 | ||||||||||
Unvested at March 31, 2015 | 141,180 | $ | 76.77 | ||||||||||
The fair value of the performance shares granted during the three months ended March 31, 2015 was estimated using the following weighted-average assumptions: | |||||||||||||
Weighted-Average Assumptions | |||||||||||||
Grant date share price | $ | 69.54 | |||||||||||
WESCO expected volatility | 26.9 | % | |||||||||||
Peer group median volatility | 23.2 | % | |||||||||||
Risk-free interest rate | 1.05 | % | |||||||||||
Correlation | 95.8 | % | |||||||||||
The unvested performance-based awards in the table above include 70,590 shares in which vesting of the ultimate number of shares underlying such awards is dependent upon WESCO's total stockholder return in relation to the total stockholder return of a select group of peer companies over a three-year period. These awards are valued using a Monte Carlo simulation model. The probability of meeting the market criteria was considered when calculating the estimated fair market value on the date of grant. These awards are accounted for as awards with market conditions, in which compensation cost is recognized over the service period, regardless of whether the market conditions are achieved and the awards ultimately vest. | |||||||||||||
Vesting of the remaining 70,590 shares of performance-based awards in the table above is dependent upon the three-year average growth rate of WESCO's net income. These awards are valued based upon the grant-date closing price of WESCO's common stock. These awards are accounted for as awards with performance conditions, in which compensation cost is recognized over the performance period based upon WESCO's determination of whether it is probable that the performance targets will be achieved. | |||||||||||||
WESCO recognized $3.8 million and $4.2 million of non-cash stock-based compensation expense, which is included in selling, general and administrative expenses, for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, there was $29.7 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements for all awards previously made, of which approximately $11.5 million is expected to be recognized over the remainder of 2015, $11.4 million in 2016, $6.1 million in 2017 and $0.7 million in 2018. | |||||||||||||
During the three months ended March 31, 2015 and 2014, the total intrinsic value of all awards exercised and vested was $7.7 million and $18.4 million, respectively. The total amount of cash received from the exercise of options was $0.8 million for the three months ended March 31, 2014. The gross deferred tax benefit associated with the exercise of awards for the three months ended March 31, 2015 and 2014 totaled $2.6 million and $7.0 million, respectively, and was recorded as an increase to additional capital. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||
Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The dilutive effect of common share equivalents is considered in the diluted earnings per share computation using the treasury stock method, which includes consideration of dilutive equity awards and contingently convertible debt. | ||||||||
The following table sets forth the details of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands of dollars, except per share data) | 2015 | 2014 | ||||||
Net income attributable to WESCO International, Inc. | $ | 47,031 | $ | 51,905 | ||||
Weighted-average common shares outstanding used in computing basic earnings per share | 44,406 | 44,348 | ||||||
Common shares issuable upon exercise of dilutive equity awards | 824 | 1,099 | ||||||
Common shares issuable from contingently convertible debentures (see below for basis of calculation) | 6,966 | 7,926 | ||||||
Weighted-average common shares outstanding and common share equivalents used in computing diluted earnings per share | 52,196 | 53,373 | ||||||
Earnings per share attributable to WESCO International, Inc. | ||||||||
Basic | $ | 1.06 | $ | 1.17 | ||||
Diluted | $ | 0.9 | $ | 0.97 | ||||
For the three months ended March 31, 2015 and 2014, the computation of diluted earnings per share attributable to WESCO International, Inc. excluded approximately 0.9 million and 0.5 million stock-settled stock appreciation rights at weighted-average exercise prices of $74.94 per share and $79.13 per share, respectively. These amounts were excluded because their effect would have been antidilutive. | ||||||||
Because of WESCO’s obligation to settle the par value of the 2029 Debentures in cash upon conversion, WESCO is required to include shares underlying the 2029 Debentures in its diluted weighted-average shares outstanding when the average stock price per share for the period exceeds the conversion price of the respective debentures. Only the number of shares issuable under the treasury stock method of accounting for share dilution are included, which is based upon the amount by which the average stock price exceeds the conversion price. The conversion price of the 2029 Debentures is $28.87. Share dilution is limited to a maximum of 11,948,087 shares for the 2029 Debentures. For the three months ended March 31, 2015 and 2014, the effect of the 2029 Debentures on diluted earnings per share attributable to WESCO International, Inc. was a decrease of $0.14 and $0.17, respectively. | ||||||||
In December 2014, the Company's Board of Directors authorized the repurchase of up to $300 million of the Company's common stock through December 31, 2017. On February 23, 2015, the Company entered into an accelerated stock repurchase agreement (the "ASR Transaction") with a financial institution to purchase shares of its common stock. Upon inception of the ASR Transaction, on February 26, 2015, the Company paid $25 million and initially received 300,651 shares. WESCO funded the repurchase with borrowings under its revolving credit facility. The actual number of shares that the Company repurchased under the ASR Transaction was determined by the average of the volume-weighted average prices (VWAP) of the Company's common stock for each exchange business day during the settlement valuation period, which ended 60 days after the ASR Transaction was executed. The ASR Transaction settled on April 23, 2015 and the Company received an additional 63,678 shares. The additional shares received upon settlement are excluded from the computation of basic and diluted earnings per share for the three months ended March 31, 2015. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS | |||||||
A majority of WESCO’s employees are covered by defined contribution retirement savings plans for their services rendered subsequent to WESCO’s formation. WESCO also offers a deferred compensation plan for select individuals. For U.S. participants, WESCO will make contributions in an amount equal to 50% of the participant’s total monthly contributions up to a maximum of 6% of eligible compensation. For Canadian participants, WESCO will make contributions in an amount ranging from 3% to 5% of the participant’s eligible compensation based on years of continuous service. In addition, for U.S. participants, employer contributions may be made at the discretion of the Board of Directors. For the three months ended March 31, 2015 and 2014, WESCO incurred charges of $5.1 million and $4.8 million, respectively, for all such plans. Contributions are made in cash to defined contribution retirement savings plans. The deferred compensation plan is an unfunded plan. Employees have the option to transfer balances allocated to their accounts in the defined contribution retirement savings plan and the deferred compensation plan into any of the available investment options. An investment option for employees in the defined contribution retirement savings plan is WESCO common stock. | ||||||||
In connection with the December 14, 2012 acquisition of EECOL, the Company assumed a contributory defined benefit plan covering substantially all Canadian employees of EECOL and a Supplemental Executive Retirement Plan for certain executives of EECOL. The following table reflects the components of net periodic benefit costs for the Company's defined benefit plans for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands of dollars) | 2015 | 2014 | ||||||
Service cost | $ | 1,171 | $ | 900 | ||||
Interest cost | 1,042 | 1,156 | ||||||
Expected return on plan assets | (1,366 | ) | (1,361 | ) | ||||
Recognized actuarial gain | (4 | ) | (14 | ) | ||||
Net periodic benefit cost | $ | 843 | $ | 681 | ||||
During the three months ended March 31, 2015 and 2014, the Company made aggregate cash contributions of $0.5 million and $0.8 million, respectively, to its defined benefit plans. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
As initially reported in our 2008 Annual Report on Form 10-K, WESCO was a defendant in a lawsuit filed in a state court in Indiana in which a customer, ArcelorMittal Indiana Harbor, Inc. (“AIH”), alleged that the Company sold defective products to AIH in 2004 that were supplied to the Company by others. The lawsuit sought monetary damages in the amount of approximately $50 million. On February 14, 2013, the jury returned a verdict in favor of AIH and awarded damages in the amount of approximately $36.1 million, and judgment was entered on the jury's verdict. As a result, the Company recorded a $36.1 million charge to selling, general and administrative expenses in 2012. The Company received letters from its insurers confirming insurance coverage of the matter and recorded a receivable in the quarter ended March 31, 2013 in an amount equal to the previously recorded liability. The Company disputed this outcome and filed a post-trial motion challenging the verdict alleging various errors that occurred during trial. AIH also filed a post-trial motion asking the court to award additional amounts to AIH, including prejudgment and post-judgment interest. The Court denied the Company's post-trial motion on June 28, 2013 and granted in part AIH's motion, awarding prejudgment interest in the amount of $3.9 million and ordering post-judgment interest to accrue on the entire judgment at 8% per annum. In the quarter ended June 30, 2013, the Company received letters from its insurers confirming insurance coverage of all prejudgment and post-judgment interest related to the matter. The Company has recorded a liability and a corresponding receivable in the amount of $10.2 million for prejudgment and post-judgment interest. Final judgment was entered by the court on July 16, 2013, and the Company appealed the judgment. On November 10, 2014, the Indiana Court of Appeals reversed the prejudgment interest award, but otherwise affirmed the underlying judgment. A petition for further review of the case was filed with the Indiana Supreme Court. | |
On April 15, 2015, the Company, AIH and the parties’ respective insurance carriers attended a mediation and agreed to settle the case. As part of the settlement, the Company's insurers paid $35.8 million to AIH on April 30, 2015 in full and final satisfaction of the judgment, including any prejudgment and post-judgment interest, and AIH agreed to release all claims against the Company and its insurers. The parties also agreed to a dismissal of the pending appeal to the Indiana Supreme Court. The settlement of this matter has no effect on the Company's financial condition or results of operations. | |
WESCO is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment (the transfer of property to the state) of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. WESCO Distribution, Inc. is currently undergoing a compliance audit in the State of Delaware concerning the identification, reporting and escheatment of unclaimed or abandoned property. A third party auditor is conducting the audit on behalf of the State, and the Company has been working with an outside consultant during the audit process and in discussions with the auditors. The Company is defending the audit, the outcome of which cannot be predicted with certainty at this time. After the third party auditor completes its field work, it is expected to issue preliminary findings for review by the Company and the State, and thereafter the auditor is expected to issue a final report of examination. If the Company and State do not reach resolution after further discussion, the State issues a demand for payment, which the Company may either agree to pay or appeal, in full or in part. The Company has recorded a liability for unclaimed property based on the facts currently known to the Company. | |
In October 2014, WESCO was notified that the New York County District Attorney’s Office is conducting a criminal investigation involving minority and disadvantaged business contracting practices in the construction industry in New York City and that various contractors, minority and disadvantaged business firms, and their material suppliers, including the Company, are a part of this investigation. The Company has commenced an internal review of this matter and intends to cooperate with the government investigation. The Company cannot predict the outcome or impact of the matter at this time, but could be subject to fines, penalties or other adverse consequences. Based on the facts currently known to the Company, it cannot reasonably estimate a range of exposure to potential liability at this time. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
The effective tax rate for the three months ended March 31, 2015 and 2014 was 29.4% and 28.2%, respectively. WESCO’s effective tax rate is lower than the federal statutory rate of 35% primarily due to benefits resulting from the tax effect of intercompany financing and lower rates on foreign earnings, which are partially offset by nondeductible expenses and state taxes. The effective tax rates for the three months ended March 31, 2015 and 2014 reflect beneficial discrete adjustments totaling approximately $0.1 million in each period, primarily related to changes in state tax rates and changes in uncertain tax positions. There have been no material adjustments to liabilities relating to uncertain tax positions since the last annual disclosure for the year ended December 31, 2014. |
OTHER_FINANCIAL_INFORMATION
OTHER FINANCIAL INFORMATION | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Financial Information [Abstract] | ||||||||||||||||||||
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION | |||||||||||||||||||
WESCO International, Inc. ("WESCO International") has outstanding $344.9 million in aggregate principal amount of 2029 Debentures. The 2029 Debentures are fully and unconditionally guaranteed by WESCO Distribution, Inc. ("WESCO Distribution"), a 100% owned subsidiary of WESCO International, on a senior subordinated basis to all existing and future senior indebtedness of WESCO Distribution. | ||||||||||||||||||||
WESCO Distribution has outstanding $500 million in aggregate principal amount of 5.375% Senior Notes due 2021 (the "2021 Notes"). The 2021 Notes are unsecured senior obligations of WESCO Distribution and are guaranteed on a senior unsecured basis by WESCO International. | ||||||||||||||||||||
Condensed consolidating financial information for WESCO International, Inc., WESCO Distribution, Inc. and the non-guarantor subsidiaries is presented on the following pages. | ||||||||||||||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 39,584 | $ | 114,767 | $ | — | $ | 154,351 | ||||||||||
Trade accounts receivable, net | — | — | 1,082,199 | — | 1,082,199 | |||||||||||||||
Inventories, net | — | 379,967 | 434,396 | — | 814,363 | |||||||||||||||
Other current assets | 8 | 142,241 | 126,746 | (6,447 | ) | 262,548 | ||||||||||||||
Total current assets | 8 | 561,792 | 1,758,108 | (6,447 | ) | 2,313,461 | ||||||||||||||
Intercompany receivables, net | — | — | 1,827,417 | (1,827,417 | ) | — | ||||||||||||||
Property, buildings and equipment, net | — | 56,077 | 117,801 | — | 173,878 | |||||||||||||||
Intangible assets, net | — | 4,568 | 394,105 | — | 398,673 | |||||||||||||||
Goodwill | — | 246,771 | 1,428,810 | — | 1,675,581 | |||||||||||||||
Investments in affiliates | 3,242,266 | 3,751,181 | — | (6,993,447 | ) | — | ||||||||||||||
Other noncurrent assets | 4,013 | 12,131 | 34,643 | — | 50,787 | |||||||||||||||
Total assets | $ | 3,246,287 | $ | 4,632,520 | $ | 5,560,884 | $ | (8,827,311 | ) | $ | 4,612,380 | |||||||||
Accounts payable | $ | — | $ | 462,609 | $ | 309,272 | $ | — | $ | 771,881 | ||||||||||
Short-term debt | — | — | 49,663 | — | 49,663 | |||||||||||||||
Other current liabilities | 7,288 | 99,301 | 117,426 | (6,447 | ) | 217,568 | ||||||||||||||
Total current liabilities | 7,288 | 561,910 | 476,361 | (6,447 | ) | 1,039,112 | ||||||||||||||
Intercompany payables, net | 1,200,491 | 626,926 | — | (1,827,417 | ) | — | ||||||||||||||
Long-term debt, net | 178,576 | 686,200 | 472,105 | — | 1,336,881 | |||||||||||||||
Other noncurrent liabilities | 21,889 | 240,948 | 136,232 | — | 399,069 | |||||||||||||||
Total WESCO International stockholders' equity | 1,838,043 | 2,516,536 | 4,476,911 | (6,993,447 | ) | 1,838,043 | ||||||||||||||
Noncontrolling interest | — | — | (725 | ) | — | (725 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,246,287 | $ | 4,632,520 | $ | 5,560,884 | $ | (8,827,311 | ) | $ | 4,612,380 | |||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 32,508 | $ | 95,811 | $ | — | $ | 128,319 | ||||||||||
Trade accounts receivable, net | — | — | 1,117,420 | — | 1,117,420 | |||||||||||||||
Inventories, net | — | 373,938 | 445,564 | — | 819,502 | |||||||||||||||
Other current assets | 12 | 144,282 | 147,268 | (6,465 | ) | 285,097 | ||||||||||||||
Total current assets | 12 | 550,728 | 1,806,063 | (6,465 | ) | 2,350,338 | ||||||||||||||
Intercompany receivables, net | — | — | 1,806,215 | (1,806,215 | ) | — | ||||||||||||||
Property, buildings and equipment, net | — | 56,735 | 125,990 | — | 182,725 | |||||||||||||||
Intangible assets, net | — | 4,733 | 425,107 | — | 429,840 | |||||||||||||||
Goodwill | — | 246,771 | 1,488,669 | — | 1,735,440 | |||||||||||||||
Investments in affiliates | 3,304,914 | 3,828,727 | — | (7,133,641 | ) | — | ||||||||||||||
Other noncurrent assets | 4,083 | 12,844 | 39,167 | — | 56,094 | |||||||||||||||
Total assets | $ | 3,309,009 | $ | 4,700,538 | $ | 5,691,211 | $ | (8,946,321 | ) | $ | 4,754,437 | |||||||||
Accounts payable | $ | — | $ | 445,680 | $ | 319,455 | $ | — | $ | 765,135 | ||||||||||
Short-term debt | — | — | 46,787 | — | 46,787 | |||||||||||||||
Other current liabilities | 12,465 | 113,746 | 132,204 | (6,465 | ) | 251,950 | ||||||||||||||
Total current liabilities | 12,465 | 559,426 | 498,446 | (6,465 | ) | 1,063,872 | ||||||||||||||
Intercompany payables, net | 1,168,366 | 637,849 | — | (1,806,215 | ) | — | ||||||||||||||
Long-term debt, net | 177,638 | 683,407 | 505,385 | — | 1,366,430 | |||||||||||||||
Other noncurrent liabilities | 21,888 | 232,544 | 141,538 | — | 395,970 | |||||||||||||||
Total WESCO International stockholders' equity | 1,928,652 | 2,587,312 | 4,546,329 | (7,133,641 | ) | 1,928,652 | ||||||||||||||
Noncontrolling interest | — | — | (487 | ) | — | (487 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,309,009 | $ | 4,700,538 | $ | 5,691,211 | $ | (8,946,321 | ) | $ | 4,754,437 | |||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Net sales | $ | — | $ | 839,282 | $ | 1,005,250 | $ | (28,202 | ) | $ | 1,816,330 | |||||||||
Cost of goods sold (excluding depreciation and | ||||||||||||||||||||
amortization) | — | 669,806 | 807,035 | (28,202 | ) | 1,448,639 | ||||||||||||||
Selling, general and administrative expenses | 8 | 136,411 | 128,166 | — | 264,585 | |||||||||||||||
Depreciation and amortization | — | 4,834 | 11,087 | — | 15,921 | |||||||||||||||
Results of affiliates’ operations | 51,165 | 36,268 | — | (87,433 | ) | — | ||||||||||||||
Interest expense, net | 6,187 | 18,640 | (3,933 | ) | — | 20,894 | ||||||||||||||
Provision for income taxes | (1,822 | ) | 2,821 | 18,499 | — | 19,498 | ||||||||||||||
Net income | 46,792 | 43,038 | 44,396 | (87,433 | ) | 46,793 | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | (238 | ) | — | (238 | ) | |||||||||||||
Net income attributable to WESCO International, Inc. | $ | 46,792 | $ | 43,038 | $ | 44,634 | $ | (87,433 | ) | $ | 47,031 | |||||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | (113,814 | ) | (113,814 | ) | (113,814 | ) | 227,628 | (113,814 | ) | |||||||||||
Comprehensive loss attributable to WESCO International, Inc. | $ | (67,022 | ) | $ | (70,776 | ) | $ | (69,180 | ) | $ | 140,195 | $ | (66,783 | ) | ||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Net sales | $ | — | $ | 829,471 | $ | 1,007,453 | $ | (26,099 | ) | $ | 1,810,825 | |||||||||
Cost of goods sold (excluding depreciation and | ||||||||||||||||||||
amortization) | — | 658,584 | 803,547 | (26,099 | ) | 1,436,032 | ||||||||||||||
Selling, general and administrative expenses | — | 136,680 | 128,782 | — | 265,462 | |||||||||||||||
Depreciation and amortization | — | 4,700 | 11,672 | — | 16,372 | |||||||||||||||
Results of affiliates’ operations | 56,210 | 40,713 | — | (96,923 | ) | — | ||||||||||||||
Interest expense, net | 6,070 | 18,761 | (4,143 | ) | — | 20,688 | ||||||||||||||
Provision for income taxes | (1,715 | ) | 3,047 | 19,084 | — | 20,416 | ||||||||||||||
Net income | 51,855 | 48,412 | 48,511 | (96,923 | ) | 51,855 | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | |||||||||||||
Net income attributable to WESCO International, Inc. | $ | 51,855 | $ | 48,412 | $ | 48,561 | $ | (96,923 | ) | $ | 51,905 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | (46,500 | ) | (46,500 | ) | (46,500 | ) | 93,000 | (46,500 | ) | |||||||||||
Comprehensive income attributable to WESCO International, Inc. | $ | 5,355 | $ | 1,912 | $ | 2,061 | $ | (3,923 | ) | $ | 5,405 | |||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and Eliminating | |||||||||||||||||
Inc. | Inc. | Entries | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (4,441 | ) | $ | 53,333 | $ | 41,164 | $ | — | $ | 90,056 | |||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (4,005 | ) | (1,021 | ) | — | (5,026 | ) | ||||||||||||
Other | — | (32,125 | ) | 785 | 32,125 | 785 | ||||||||||||||
Net cash used in investing activities | — | (36,130 | ) | (236 | ) | 32,125 | (4,241 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Borrowings | 32,125 | 218,699 | 150,600 | (32,125 | ) | 369,299 | ||||||||||||||
Repayments | — | (221,699 | ) | (166,580 | ) | — | (388,279 | ) | ||||||||||||
Equity activities | (27,602 | ) | — | — | — | (27,602 | ) | |||||||||||||
Other | (82 | ) | (7,127 | ) | — | — | (7,209 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 4,441 | (10,127 | ) | (15,980 | ) | (32,125 | ) | (53,791 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5,992 | ) | — | (5,992 | ) | |||||||||||||
Net change in cash and cash equivalents | — | 7,076 | 18,956 | — | 26,032 | |||||||||||||||
Cash and cash equivalents at the beginning of period | — | 32,508 | 95,811 | — | 128,319 | |||||||||||||||
Cash and cash equivalents at the end of period | $ | — | $ | 39,584 | $ | 114,767 | $ | — | $ | 154,351 | ||||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and Eliminating | |||||||||||||||||
Inc. | Inc. | Entries | ||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4,871 | ) | $ | 20,415 | $ | 31,169 | $ | — | $ | 46,713 | |||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (3,347 | ) | (1,665 | ) | — | (5,012 | ) | ||||||||||||
Acquisition payments | — | — | (91,187 | ) | — | (91,187 | ) | |||||||||||||
Other | — | (5,169 | ) | 39 | 5,169 | 39 | ||||||||||||||
Net cash used in investing activities | — | (8,516 | ) | (92,813 | ) | 5,169 | (96,160 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Borrowings | 5,168 | 307,851 | 115,575 | (5,169 | ) | 423,425 | ||||||||||||||
Repayments | — | (307,851 | ) | (95,592 | ) | — | (403,443 | ) | ||||||||||||
Equity activities | (5,331 | ) | — | — | — | (5,331 | ) | |||||||||||||
Other | 5,034 | 3,858 | (4 | ) | — | 8,888 | ||||||||||||||
Net cash provided by financing activities | 4,871 | 3,858 | 19,979 | (5,169 | ) | 23,539 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,461 | ) | — | (1,461 | ) | |||||||||||||
Net change in cash and cash equivalents | — | 15,757 | (43,126 | ) | — | (27,369 | ) | |||||||||||||
Cash and cash equivalents at the beginning of period | — | 31,695 | 92,030 | — | 123,725 | |||||||||||||||
Cash and cash equivalents at the end of period | $ | — | $ | 47,452 | $ | 48,904 | $ | — | $ | 96,356 | ||||||||||
The unaudited Condensed Consolidated Statements of Cash Flows include certain reclassifications to previously reported amounts to conform to the current period presentation. |
Subsequent_Events_SUBSEQUENT_E
Subsequent Events SUBSEQUENT EVENTS (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
The Company evaluated subsequent events and concluded that no subsequent events have occurred that would require recognition in the unaudited Condensed Consolidated Financial Statements or disclosure in the Notes thereto expect as described below. | |
On May 1, 2015, WESCO International, Inc., through its wholly-owned subsidiary WESCO Distribution, Inc., completed its acquisition of Hill Country Electric Supply, LP, an electrical distributor headquartered in Austin, Texas focused on the commercial construction market with annual sales of approximately $140 million from nine locations in Central and South Texas. WESCO funded the purchase price paid at closing with cash, and borrowings under the Receivables Facility and the Revolving Credit Facility. A preliminary purchase price allocation will be completed during the second quarter of 2015 |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements of WESCO have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). The unaudited condensed consolidated financial information should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in WESCO’s 2014 Annual Report on Form 10-K as filed with the SEC on February 24, 2015. The Condensed Consolidated Balance Sheet at December 31, 2014 was derived from the audited Consolidated Financial Statements as of that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. | ||
The unaudited Condensed Consolidated Balance Sheet as of March 31, 2015, the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014, respectively, and the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014, respectively, in the opinion of management, have been prepared on the same basis as the audited Consolidated Financial Statements and include all adjustments necessary for the fair statement of the results of the interim periods presented herein. All adjustments reflected in the unaudited condensed consolidated financial information are of a normal recurring nature unless indicated. The results for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. | ||
Reclassification | The Condensed Consolidated Balance Sheet at December 31, 2014 and the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 include certain reclassifications to previously reported amounts to conform to the current period presentation. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
The Company measures the fair value of financial assets and liabilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, "Fair Value Measurements and Disclosures," which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. | ||
ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. | |
• | Level 2 inputs include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. | |
• | Level 3 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |
At March 31, 2015, the carrying value of WESCO’s 6.0% Convertible Senior Debentures due 2029 (the "2029 Debentures") was $178.6 million and the fair value was approximately $849.8 million. At December 31, 2014, the carrying value of WESCO’s 2029 Debentures was $177.6 million and the fair value was approximately $936.1 million. The reported carrying amounts of WESCO’s other debt instruments approximate their fair values. The Company uses a market approach to fair value all of its debt instruments, utilizing quoted prices in active markets, interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, all of the Company's debt instruments are classified as Level 2 within the valuation hierarchy. For all of the Company's remaining financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities, carrying values are considered to approximate fair value due to the short maturity of these instruments. | ||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements | |
In May 2014, the FASB and International Accounting Standards Board issued a converged final standard on the recognition of revenue from contracts with customers. This updated guidance provides a framework for addressing revenue recognition issues and replaces almost all existing revenue recognition guidance in current U.S. generally accepted accounting principles. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. This guidance is effective for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the future impact of this guidance on WESCO's financial position, results of operations and cash flows. | ||
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in this Update require a reporting entity to treat a performance target that affects vesting and could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation—Stock Compensation, to awards with performance conditions that affect vesting. For all entities, ASU 2014-12 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. This ASU may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption and to all new or modified awards thereafter. The adoption of this guidance is not expected to have an impact on WESCO's consolidated financial statements and notes thereto. | ||
In September 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This ASU describes how an entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used with existing auditing standards. The amendments in this ASU are effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have an impact on WESCO's consolidated financial statements and notes thereto. | ||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. To simplify the presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). Management is currently evaluating the future impact of this guidance on WESCO's financial position, results of operations and cash flows. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ||||
(In thousands of dollars) | ||||
Fair value of assets acquired | $ | 104,601 | ||
Fair value of liabilities assumed | 13,414 | |||
Cash paid for acquisitions | $ | 91,187 | ||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | During the three months ended March 31, 2015 and 2014, WESCO granted the following stock-settled appreciation rights, restricted stock units and performance-based awards at the following weighted-average fair values and assumptions: | ||||||||||||
Three Months Ended | |||||||||||||
March 31, | March 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Stock-settled appreciation rights granted | 394,182 | 272,213 | |||||||||||
Weighted-average fair value | $ | 21.68 | $ | 30.66 | |||||||||
Restricted stock units granted | 78,292 | 62,506 | |||||||||||
Weighted-average fair value | $ | 69.54 | $ | 85.35 | |||||||||
Performance-based awards granted | 59,661 | 44,046 | |||||||||||
Weighted-average fair value | $ | 67.81 | $ | 86.65 | |||||||||
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | The following table sets forth a summary of stock-settled stock appreciation rights and related information for the three months ended March 31, 2015: | ||||||||||||
Awards | Weighted- | Weighted- | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual Term (In years) | (In thousands) | |||||||||||
Outstanding at December 31, 2014 | 2,480,745 | $ | 50.91 | ||||||||||
Granted | 394,182 | 69.54 | |||||||||||
Exercised | (27,316 | ) | 40.78 | ||||||||||
Forfeited | (7,800 | ) | 81.12 | ||||||||||
Outstanding at March 31, 2015 | 2,839,811 | 53.51 | 5.6 | $ | 51,128.90 | ||||||||
Exercisable at March 31, 2015 | 2,190,049 | $ | 47.4 | 4.5 | $ | 50,956.50 | |||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table sets forth a summary of time-based restricted stock units and related information for the three months ended March 31, 2015: | ||||||||||||
Awards | Weighted- | ||||||||||||
Average | |||||||||||||
Fair | |||||||||||||
Value | |||||||||||||
Unvested at December 31, 2014 | 185,457 | $ | 73.87 | ||||||||||
Granted | 78,292 | 69.54 | |||||||||||
Vested | (61,787 | ) | 64.33 | ||||||||||
Forfeited | (3,470 | ) | 78.5 | ||||||||||
Unvested at March 31, 2015 | 198,492 | $ | 75.05 | ||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table sets forth a summary of performance-based awards for the three months ended March 31, 2015: | ||||||||||||
Awards | Weighted- | ||||||||||||
Average | |||||||||||||
Fair | |||||||||||||
Value | |||||||||||||
Unvested at December 31, 2014 | 130,004 | $ | 80.21 | ||||||||||
Granted | 59,661 | 67.81 | |||||||||||
Vested | (38,869 | ) | 72.25 | ||||||||||
Forfeited | (9,616 | ) | 86.09 | ||||||||||
Unvested at March 31, 2015 | 141,180 | $ | 76.77 | ||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the details of basic and diluted earnings per share: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands of dollars, except per share data) | 2015 | 2014 | ||||||
Net income attributable to WESCO International, Inc. | $ | 47,031 | $ | 51,905 | ||||
Weighted-average common shares outstanding used in computing basic earnings per share | 44,406 | 44,348 | ||||||
Common shares issuable upon exercise of dilutive equity awards | 824 | 1,099 | ||||||
Common shares issuable from contingently convertible debentures (see below for basis of calculation) | 6,966 | 7,926 | ||||||
Weighted-average common shares outstanding and common share equivalents used in computing diluted earnings per share | 52,196 | 53,373 | ||||||
Earnings per share attributable to WESCO International, Inc. | ||||||||
Basic | $ | 1.06 | $ | 1.17 | ||||
Diluted | $ | 0.9 | $ | 0.97 | ||||
EMPLOYEE_BENEFIT_PLANS_Schedul
EMPLOYEE BENEFIT PLANS Schedule of Net Benefit Costs (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Postemployment Benefits [Abstract] | ||||||||
Schedule of Net Benefit Costs [Table Text Block] | The following table reflects the components of net periodic benefit costs for the Company's defined benefit plans for the three months ended March 31, 2015 and 2014: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands of dollars) | 2015 | 2014 | ||||||
Service cost | $ | 1,171 | $ | 900 | ||||
Interest cost | 1,042 | 1,156 | ||||||
Expected return on plan assets | (1,366 | ) | (1,361 | ) | ||||
Recognized actuarial gain | (4 | ) | (14 | ) | ||||
Net periodic benefit cost | $ | 843 | $ | 681 | ||||
OTHER_FINANCIAL_INFORMATION_Ta
OTHER FINANCIAL INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 39,584 | $ | 114,767 | $ | — | $ | 154,351 | ||||||||||
Trade accounts receivable, net | — | — | 1,082,199 | — | 1,082,199 | |||||||||||||||
Inventories, net | — | 379,967 | 434,396 | — | 814,363 | |||||||||||||||
Other current assets | 8 | 142,241 | 126,746 | (6,447 | ) | 262,548 | ||||||||||||||
Total current assets | 8 | 561,792 | 1,758,108 | (6,447 | ) | 2,313,461 | ||||||||||||||
Intercompany receivables, net | — | — | 1,827,417 | (1,827,417 | ) | — | ||||||||||||||
Property, buildings and equipment, net | — | 56,077 | 117,801 | — | 173,878 | |||||||||||||||
Intangible assets, net | — | 4,568 | 394,105 | — | 398,673 | |||||||||||||||
Goodwill | — | 246,771 | 1,428,810 | — | 1,675,581 | |||||||||||||||
Investments in affiliates | 3,242,266 | 3,751,181 | — | (6,993,447 | ) | — | ||||||||||||||
Other noncurrent assets | 4,013 | 12,131 | 34,643 | — | 50,787 | |||||||||||||||
Total assets | $ | 3,246,287 | $ | 4,632,520 | $ | 5,560,884 | $ | (8,827,311 | ) | $ | 4,612,380 | |||||||||
Accounts payable | $ | — | $ | 462,609 | $ | 309,272 | $ | — | $ | 771,881 | ||||||||||
Short-term debt | — | — | 49,663 | — | 49,663 | |||||||||||||||
Other current liabilities | 7,288 | 99,301 | 117,426 | (6,447 | ) | 217,568 | ||||||||||||||
Total current liabilities | 7,288 | 561,910 | 476,361 | (6,447 | ) | 1,039,112 | ||||||||||||||
Intercompany payables, net | 1,200,491 | 626,926 | — | (1,827,417 | ) | — | ||||||||||||||
Long-term debt, net | 178,576 | 686,200 | 472,105 | — | 1,336,881 | |||||||||||||||
Other noncurrent liabilities | 21,889 | 240,948 | 136,232 | — | 399,069 | |||||||||||||||
Total WESCO International stockholders' equity | 1,838,043 | 2,516,536 | 4,476,911 | (6,993,447 | ) | 1,838,043 | ||||||||||||||
Noncontrolling interest | — | — | (725 | ) | — | (725 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,246,287 | $ | 4,632,520 | $ | 5,560,884 | $ | (8,827,311 | ) | $ | 4,612,380 | |||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 32,508 | $ | 95,811 | $ | — | $ | 128,319 | ||||||||||
Trade accounts receivable, net | — | — | 1,117,420 | — | 1,117,420 | |||||||||||||||
Inventories, net | — | 373,938 | 445,564 | — | 819,502 | |||||||||||||||
Other current assets | 12 | 144,282 | 147,268 | (6,465 | ) | 285,097 | ||||||||||||||
Total current assets | 12 | 550,728 | 1,806,063 | (6,465 | ) | 2,350,338 | ||||||||||||||
Intercompany receivables, net | — | — | 1,806,215 | (1,806,215 | ) | — | ||||||||||||||
Property, buildings and equipment, net | — | 56,735 | 125,990 | — | 182,725 | |||||||||||||||
Intangible assets, net | — | 4,733 | 425,107 | — | 429,840 | |||||||||||||||
Goodwill | — | 246,771 | 1,488,669 | — | 1,735,440 | |||||||||||||||
Investments in affiliates | 3,304,914 | 3,828,727 | — | (7,133,641 | ) | — | ||||||||||||||
Other noncurrent assets | 4,083 | 12,844 | 39,167 | — | 56,094 | |||||||||||||||
Total assets | $ | 3,309,009 | $ | 4,700,538 | $ | 5,691,211 | $ | (8,946,321 | ) | $ | 4,754,437 | |||||||||
Accounts payable | $ | — | $ | 445,680 | $ | 319,455 | $ | — | $ | 765,135 | ||||||||||
Short-term debt | — | — | 46,787 | — | 46,787 | |||||||||||||||
Other current liabilities | 12,465 | 113,746 | 132,204 | (6,465 | ) | 251,950 | ||||||||||||||
Total current liabilities | 12,465 | 559,426 | 498,446 | (6,465 | ) | 1,063,872 | ||||||||||||||
Intercompany payables, net | 1,168,366 | 637,849 | — | (1,806,215 | ) | — | ||||||||||||||
Long-term debt, net | 177,638 | 683,407 | 505,385 | — | 1,366,430 | |||||||||||||||
Other noncurrent liabilities | 21,888 | 232,544 | 141,538 | — | 395,970 | |||||||||||||||
Total WESCO International stockholders' equity | 1,928,652 | 2,587,312 | 4,546,329 | (7,133,641 | ) | 1,928,652 | ||||||||||||||
Noncontrolling interest | — | — | (487 | ) | — | (487 | ) | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,309,009 | $ | 4,700,538 | $ | 5,691,211 | $ | (8,946,321 | ) | $ | 4,754,437 | |||||||||
OTHER_FINANCIAL_INFORMATION_Co
OTHER FINANCIAL INFORMATION Condensed Income Statement (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Condensed Income Statement [Table Text Block] | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Net sales | $ | — | $ | 829,471 | $ | 1,007,453 | $ | (26,099 | ) | $ | 1,810,825 | |||||||||
Cost of goods sold (excluding depreciation and | ||||||||||||||||||||
amortization) | — | 658,584 | 803,547 | (26,099 | ) | 1,436,032 | ||||||||||||||
Selling, general and administrative expenses | — | 136,680 | 128,782 | — | 265,462 | |||||||||||||||
Depreciation and amortization | — | 4,700 | 11,672 | — | 16,372 | |||||||||||||||
Results of affiliates’ operations | 56,210 | 40,713 | — | (96,923 | ) | — | ||||||||||||||
Interest expense, net | 6,070 | 18,761 | (4,143 | ) | — | 20,688 | ||||||||||||||
Provision for income taxes | (1,715 | ) | 3,047 | 19,084 | — | 20,416 | ||||||||||||||
Net income | 51,855 | 48,412 | 48,511 | (96,923 | ) | 51,855 | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | (50 | ) | — | (50 | ) | |||||||||||||
Net income attributable to WESCO International, Inc. | $ | 51,855 | $ | 48,412 | $ | 48,561 | $ | (96,923 | ) | $ | 51,905 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation adjustments | (46,500 | ) | (46,500 | ) | (46,500 | ) | 93,000 | (46,500 | ) | |||||||||||
Comprehensive income attributable to WESCO International, Inc. | $ | 5,355 | $ | 1,912 | $ | 2,061 | $ | (3,923 | ) | $ | 5,405 | |||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and | |||||||||||||||||
Inc. | Inc. | Eliminating | ||||||||||||||||||
Entries | ||||||||||||||||||||
Net sales | $ | — | $ | 839,282 | $ | 1,005,250 | $ | (28,202 | ) | $ | 1,816,330 | |||||||||
Cost of goods sold (excluding depreciation and | ||||||||||||||||||||
amortization) | — | 669,806 | 807,035 | (28,202 | ) | 1,448,639 | ||||||||||||||
Selling, general and administrative expenses | 8 | 136,411 | 128,166 | — | 264,585 | |||||||||||||||
Depreciation and amortization | — | 4,834 | 11,087 | — | 15,921 | |||||||||||||||
Results of affiliates’ operations | 51,165 | 36,268 | — | (87,433 | ) | — | ||||||||||||||
Interest expense, net | 6,187 | 18,640 | (3,933 | ) | — | 20,894 | ||||||||||||||
Provision for income taxes | (1,822 | ) | 2,821 | 18,499 | — | 19,498 | ||||||||||||||
Net income | 46,792 | 43,038 | 44,396 | (87,433 | ) | 46,793 | ||||||||||||||
Net loss attributable to noncontrolling interest | — | — | (238 | ) | — | (238 | ) | |||||||||||||
Net income attributable to WESCO International, Inc. | $ | 46,792 | $ | 43,038 | $ | 44,634 | $ | (87,433 | ) | $ | 47,031 | |||||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | (113,814 | ) | (113,814 | ) | (113,814 | ) | 227,628 | (113,814 | ) | |||||||||||
Comprehensive loss attributable to WESCO International, Inc. | $ | (67,022 | ) | $ | (70,776 | ) | $ | (69,180 | ) | $ | 140,195 | $ | (66,783 | ) | ||||||
OTHER_FINANCIAL_INFORMATION_Co1
OTHER FINANCIAL INFORMATION Condensed Cash Flow Statement (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||||||||||
Condensed Cash Flow Statement [Table Text Block] | WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and Eliminating | |||||||||||||||||
Inc. | Inc. | Entries | ||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4,871 | ) | $ | 20,415 | $ | 31,169 | $ | — | $ | 46,713 | |||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (3,347 | ) | (1,665 | ) | — | (5,012 | ) | ||||||||||||
Acquisition payments | — | — | (91,187 | ) | — | (91,187 | ) | |||||||||||||
Other | — | (5,169 | ) | 39 | 5,169 | 39 | ||||||||||||||
Net cash used in investing activities | — | (8,516 | ) | (92,813 | ) | 5,169 | (96,160 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Borrowings | 5,168 | 307,851 | 115,575 | (5,169 | ) | 423,425 | ||||||||||||||
Repayments | — | (307,851 | ) | (95,592 | ) | — | (403,443 | ) | ||||||||||||
Equity activities | (5,331 | ) | — | — | — | (5,331 | ) | |||||||||||||
Other | 5,034 | 3,858 | (4 | ) | — | 8,888 | ||||||||||||||
Net cash provided by financing activities | 4,871 | 3,858 | 19,979 | (5,169 | ) | 23,539 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,461 | ) | — | (1,461 | ) | |||||||||||||
Net change in cash and cash equivalents | — | 15,757 | (43,126 | ) | — | (27,369 | ) | |||||||||||||
Cash and cash equivalents at the beginning of period | — | 31,695 | 92,030 | — | 123,725 | |||||||||||||||
Cash and cash equivalents at the end of period | $ | — | $ | 47,452 | $ | 48,904 | $ | — | $ | 96,356 | ||||||||||
WESCO INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||
WESCO | WESCO | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
International, | Distribution, | Subsidiaries | and Eliminating | |||||||||||||||||
Inc. | Inc. | Entries | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (4,441 | ) | $ | 53,333 | $ | 41,164 | $ | — | $ | 90,056 | |||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | — | (4,005 | ) | (1,021 | ) | — | (5,026 | ) | ||||||||||||
Other | — | (32,125 | ) | 785 | 32,125 | 785 | ||||||||||||||
Net cash used in investing activities | — | (36,130 | ) | (236 | ) | 32,125 | (4,241 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||
Borrowings | 32,125 | 218,699 | 150,600 | (32,125 | ) | 369,299 | ||||||||||||||
Repayments | — | (221,699 | ) | (166,580 | ) | — | (388,279 | ) | ||||||||||||
Equity activities | (27,602 | ) | — | — | — | (27,602 | ) | |||||||||||||
Other | (82 | ) | (7,127 | ) | — | — | (7,209 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 4,441 | (10,127 | ) | (15,980 | ) | (32,125 | ) | (53,791 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5,992 | ) | — | (5,992 | ) | |||||||||||||
Net change in cash and cash equivalents | — | 7,076 | 18,956 | — | 26,032 | |||||||||||||||
Cash and cash equivalents at the beginning of period | — | 32,508 | 95,811 | — | 128,319 | |||||||||||||||
Cash and cash equivalents at the end of period | $ | — | $ | 39,584 | $ | 114,767 | $ | — | $ | 154,351 | ||||||||||
ORGANIZATION_Details
ORGANIZATION (Details) | Mar. 31, 2015 |
distribution_centers | |
countries | |
customers | |
Restructuring Cost and Reserve [Line Items] | |
Active customers (in customers) | 75,000 |
Full service branches (in branches) | 9 |
Additional countries (in countries) | 16 |
Hazmasters, Inc. [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Full service branches (in branches) | 14 |
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Long-term Debt, Fair Value | $849.80 | $936.10 |
Fixed Rate Debt, Par Value | $178.60 | $177.60 |
ACQUISITIONS_ACQUISITIONS_Deta
ACQUISITIONS - ACQUISITIONS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $104,601,000 | |
Payments to Acquire Businesses, Gross | 91,187,000 | |
Finite-Lived Customer Relationships, Gross | 38,900,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 13,414,000 | |
Other Indefinite-lived Intangible Assets | 300,000 | |
LaPrairie, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 30,000,000 | |
Goodwill, Acquired During Period | 8,900,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,000,000 | |
Hazmasters, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 80,000,000 | |
Goodwill, Acquired During Period | 29,500,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 28,100,000 | |
Number of Stores | 14 | |
Hi-Line [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 30,000,000 | |
Goodwill, Acquired During Period | 24,000,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 14,200,000 | |
Supplier Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | 3,200,000 | |
Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Finite-lived Intangible Assets Acquired | $10,900,000 | |
Minimum [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |
Minimum [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |
Maximum [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
SCHEDULE_OF_SHAREBASED_COMPENS
SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS AND STOCK APPRECIATION RIGHTS AWARD ACTIVITY (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $69.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $53.51 | $50.91 | |
Share-based Compensation Arrangement By Share-based Payment Award, Options and Stock Appreciation Rights, Outstanding [Roll Forward] | |||
Grants in Period (in shares) | 394,182 | ||
Exercises in Period (in shares) | 27,316 | ||
Forfeitures in Period (in shares) | 7,800 | ||
Weighted Average Exercise Price, Exercises in Period (in dollars per share) | $40.78 | ||
Weighted Average Exercise Price, Forfeitures in Period (in dollars per share) | $81.12 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | $47.40 | ||
Weighted Average Remaining Contractual Term, Outstanding (in years) | 5 years 7 months 17 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $51,128,900 | ||
Weighted Average Remaining Contractual Term, Exercisable (in years) | 4 years 6 months | ||
Aggregate Intrinsic Value, Outstanding | $50,956,500 | ||
Performance-based awards outstanding (in shares) | 70,590 | 2,480,745 | |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $21.68 | $30.66 | |
Share-based Compensation Arrangement By Share-based Payment Award, Options and Stock Appreciation Rights, Outstanding [Roll Forward] | |||
Grants in Period (in shares) | 394,182 | 272,213 | |
Performance-based awards outstanding (in shares) | 2,839,811 |
SCHEDULE_OF_SHAREBASED_PAYMENT
SCHEDULE OF SHARE-BASED PAYMENT AWARD, VALUATION ASSUMPTIONS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 394,182 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $69.54 | |
Risk free interest rate | 1.60% | 1.50% |
Expected life (in years) | 5 years | 5 years |
WESCO expected volatility | 32.00% | 39.00% |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 394,182 | 272,213 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $21.68 | 30.66 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 78,292 | 62,506 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $69.54 | 85.35 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 59,661 | 44,046 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $67.81 | 86.65 |
Risk free interest rate | 0.00% | |
WESCO expected volatility | 0.00% |
SUMMARY_OF_RESTRICTED_STOCK_UN
SUMMARY OF RESTRICTED STOCK UNITS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested (in shares) | 70,590 | 2,480,745 | |
Granted (in shares) | 394,182 | ||
Unvested, Weighted Average Fair Value (in dollars per share) | $53.51 | $50.91 | |
Granted, Weighted Average Fair Value (in dollars per share) | $69.54 | ||
Forfeited in Period, Weighted Average Fair Value (in dollars per share) | $81.12 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested (in shares) | 198,492 | 185,457 | |
Granted (in shares) | 78,292 | 62,506 | |
Vested (in shares) | -61,787 | ||
Forfeited (in shares) | -3,470 | ||
Unvested, Weighted Average Fair Value (in dollars per share) | $75.05 | $73.87 | |
Granted, Weighted Average Fair Value (in dollars per share) | $69.54 | $85.35 | |
Vested in Period, Weighted Average Fair Value (in dollars per share) | $64.33 | ||
Forfeited in Period, Weighted Average Fair Value (in dollars per share) | $78.50 |
SUMMARY_OF_PERFORMANCEBASED_AW
SUMMARY OF PERFORMANCE-BASED AWARDS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested (in shares) | 70,590 | 2,480,745 | |
Granted (in shares) | 394,182 | ||
Unvested, Weighted Average Fair Value (in dollars per share) | $53.51 | $50.91 | |
Granted, Weighted Average Fair Value (in dollars per share) | $69.54 | ||
Forfeited in Period, Weighted Average Fair Value (in dollars per share) | $81.12 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested (in shares) | 141,180 | 130,004 | |
Granted (in shares) | 59,661 | 44,046 | |
Vested (in shares) | -38,869 | ||
Forfeited (in shares) | -9,616 | ||
Unvested, Weighted Average Fair Value (in dollars per share) | $76.77 | $80.21 | |
Granted, Weighted Average Fair Value (in dollars per share) | $67.81 | $86.65 | |
Vested in Period, Weighted Average Fair Value (in dollars per share) | $72.25 | ||
Forfeited in Period, Weighted Average Fair Value (in dollars per share) | $86.09 |
SCHEDULE_OF_SHAREBASED_PAYMENT1
SCHEDULE OF SHARE-BASED PAYMENT AWARD, PERFORMANCE-BASED AWARDS, VALUATION ASSUMPTIONS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $69.54 | |
WESCO expected volatility | 32.00% | 39.00% |
Risk free interest rate | 1.60% | 1.50% |
Correlation | 100.00% | |
Fair Value Assumptions, Expected Volatility Rate | 0.00% | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
WESCO expected volatility | 0.00% | |
Risk free interest rate | 0.00% |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, Weighted Average Fair Value (in dollars per share) | $69.54 | ||||||
Performance-based awards outstanding (in shares) | 70,590 | 2,480,745 | |||||
Stock-based compensation expense | $3.80 | $4.20 | $11.50 | $0.70 | $6.10 | $11.40 | |
Total unrecognized compensation cost | 29.7 | ||||||
Total intrinsic value of awards exercised | 7.7 | 18.4 | |||||
Cash received from exercise of options | 0.8 | ||||||
Tax benefit associated with exercise of awards | $2.60 | $7 | |||||
Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, Weighted Average Fair Value (in dollars per share) | $21.68 | $30.66 | |||||
Performance-based awards outstanding (in shares) | 2,839,811 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, Weighted Average Fair Value (in dollars per share) | $69.54 | $85.35 | |||||
Performance-based awards outstanding (in shares) | 198,492 | 185,457 | |||||
Performance-based Awards - Peer Group Total Shareholder Return [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, Weighted Average Fair Value (in dollars per share) | $67.81 | $86.65 | |||||
Performance-based awards outstanding (in shares) | 141,180 | 130,004 |
SCHEDULE_OF_EARNINGS_PER_SHARE
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to WESCO International, Inc. | $47,031 | $51,905 |
Weighted average common shares outstanding used in computing basic earnings per share (in shares) | 44,406 | 44,348 |
Common shares issuable upon exercise of dilutive stock options (in shares) | 824 | 1,099 |
Common shares issuable from contingently convertible debentures (in shares) | 6,966 | 7,926 |
Weighted average common shares outstanding and common share equivalents used in computing diluted earnings per share (in shares) | 52,196 | 53,373 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Basic (in dollars per share) | $1.06 | $1.17 |
Diluted (in dollars per share) | $0.90 | $0.97 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Earnings Per Share Dilution Limit (in shares) | 6,966,000 | 7,926,000 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Earnings Per Share Dilution Limit (in shares) | 11,948,087 | |
Stock Appreciation Rights (SARs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 900,000 | 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | 74.94 | 79.13 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | 28.87 | |
Dilutive Securities, Effect on Basic Earnings Per Share | 0.14 | 0.17 |
EARNINGS_PER_SHARE_Accelerated
EARNINGS PER SHARE Accelerated Share Repurchase (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accelerated Share Repurchases [Line Items] | ||
Payments for Repurchase of Common Stock | $27,602,000 | $5,331,000 |
Stock Repurchase Program, Authorized Amount | 300,000,000 | |
Treasury Stock, Shares, Acquired | 300,651 | |
Accelerated Share Repurchases, Adjustment to Recorded Amount | 63,678 | |
Repurchase Agreements [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Payments for Repurchase of Common Stock | $25,000,000 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Contributions by Employer | $500,000 | $800,000 |
Schedule of Employee Benefit Plans [Line Items] | ||
Defined Contribution Plan, Cost Recognized | $5,100,000 | $4,800,000 |
UNITED STATES | ||
Schedule of Employee Benefit Plans [Line Items] | ||
Defined Contribution Plan Employer Matching Contribution Percent | 50.00% | |
Defined Contribution Plan Maximum Annual Contribution Per Employee Percent | 6.00% | |
Minimum [Member] | CANADA | ||
Schedule of Employee Benefit Plans [Line Items] | ||
Defined Contribution Plan Maximum Annual Contribution Per Employee Percent | 3.00% | |
Maximum [Member] | CANADA | ||
Schedule of Employee Benefit Plans [Line Items] | ||
Defined Contribution Plan Maximum Annual Contribution Per Employee Percent | 5.00% |
EMPLOYEE_BENEFIT_PLANS_EMPLOYE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS Pension Costs (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Contributions by Employer | $500,000 | $800,000 |
Service cost | 1,171,000 | 900,000 |
Interest cost | 1,042,000 | 1,156,000 |
Expected return on plan assets | -1,366,000 | -1,361,000 |
Defined Benefit Plan, Actuarial Gain (Loss) | -4,000 | -14,000 |
Net periodic benefit cost | $843,000 | $681,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Loss Contingencies [Line Items] | |
Loss Contingency, Receivable, Receipts | $35.80 |
Loss Contingency, Accrual, Current | 3.9 |
Loss Contingency, Receivable, Current | 10.2 |
Damages sought | 50 |
Damages awarded | $36.10 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate | 29.40% | 28.20% |
Federal statutory rate | 35.00% | |
Effective Income Tax Rate Reconciliation, Tax Contingency, Other, Percent | $100,000 |
OTHER_FINANCIAL_INFORMATION_De
OTHER FINANCIAL INFORMATION (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.38% |
Convertible Senior Debentures Due in 2029 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 344.9 |
Senior Notes due 2021 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 500 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Information [Line Items] | ||||
Cash and cash equivalents | $154,351 | $128,319 | $96,356 | $123,725 |
Trade accounts receivable, net | 1,082,199 | 1,117,420 | ||
Inventories, net | 814,363 | 819,502 | ||
Other current assets | 262,548 | 285,097 | ||
Total current assets | 2,313,461 | 2,350,338 | ||
Intercompany receivables, net | 0 | 0 | ||
Property, buildings and equipment, net | 173,878 | 182,725 | ||
Intangible assets, net | 398,673 | 429,840 | ||
Goodwill and other intangibles, net | 1,675,581 | 1,735,440 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||
Other assets | 50,787 | 56,094 | ||
Total assets | 4,612,380 | 4,754,437 | ||
Accounts payable | 771,881 | 765,135 | ||
Short-term debt | 49,663 | 46,787 | ||
Other Liabilities, Current | 217,568 | 251,950 | ||
Total current liabilities | 1,039,112 | 1,063,872 | ||
Intercompany payables, net | 0 | 0 | ||
Long-term debt | 1,336,881 | 1,366,430 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 399,069 | 395,970 | ||
Total stockholders' equity | 1,838,043 | 1,928,652 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 725 | 487 | ||
Total liabilities and stockholders' equity | 4,612,380 | 4,754,437 | ||
Parent Company [Member] | ||||
Condensed Financial Information [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 8 | 12 | ||
Total current assets | 8 | 12 | ||
Intercompany receivables, net | 0 | 0 | ||
Property, buildings and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill and other intangibles, net | 0 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 3,242,266 | 3,304,914 | ||
Other assets | 4,013 | 4,083 | ||
Total assets | 3,246,287 | 3,309,009 | ||
Accounts payable | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Other Liabilities, Current | 7,288 | 12,465 | ||
Total current liabilities | 7,288 | 12,465 | ||
Intercompany payables, net | 1,200,491 | 1,168,366 | ||
Long-term debt | 178,576 | 177,638 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 21,889 | 21,888 | ||
Total stockholders' equity | 1,838,043 | 1,928,652 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and stockholders' equity | 3,246,287 | 3,309,009 | ||
WESCO Distribution, Inc. | ||||
Condensed Financial Information [Line Items] | ||||
Cash and cash equivalents | 39,584 | 32,508 | 47,452 | 31,695 |
Trade accounts receivable, net | 0 | 0 | ||
Inventories, net | 379,967 | 373,938 | ||
Other current assets | 142,241 | 144,282 | ||
Total current assets | 561,792 | 550,728 | ||
Intercompany receivables, net | 0 | 0 | ||
Property, buildings and equipment, net | 56,077 | 56,735 | ||
Intangible assets, net | 4,568 | 4,733 | ||
Goodwill and other intangibles, net | 246,771 | 246,771 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 3,751,181 | 3,828,727 | ||
Other assets | 12,131 | 12,844 | ||
Total assets | 4,632,520 | 4,700,538 | ||
Accounts payable | 462,609 | 445,680 | ||
Short-term debt | 0 | 0 | ||
Other Liabilities, Current | 99,301 | 113,746 | ||
Total current liabilities | 561,910 | 559,426 | ||
Intercompany payables, net | 626,926 | 637,849 | ||
Long-term debt | 686,200 | 683,407 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 240,948 | 232,544 | ||
Total stockholders' equity | 2,516,536 | 2,587,312 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and stockholders' equity | 4,632,520 | 4,700,538 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Information [Line Items] | ||||
Cash and cash equivalents | 114,767 | 95,811 | 48,904 | 92,030 |
Trade accounts receivable, net | 1,082,199 | 1,117,420 | ||
Inventories, net | 434,396 | 445,564 | ||
Other current assets | 126,746 | 147,268 | ||
Total current assets | 1,758,108 | 1,806,063 | ||
Intercompany receivables, net | 1,827,417 | 1,806,215 | ||
Property, buildings and equipment, net | 117,801 | 125,990 | ||
Intangible assets, net | 394,105 | 425,107 | ||
Goodwill and other intangibles, net | 1,428,810 | 1,488,669 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||
Other assets | 34,643 | 39,167 | ||
Total assets | 5,560,884 | 5,691,211 | ||
Accounts payable | 309,272 | 319,455 | ||
Short-term debt | 49,663 | 46,787 | ||
Other Liabilities, Current | 117,426 | 132,204 | ||
Total current liabilities | 476,361 | 498,446 | ||
Intercompany payables, net | 0 | 0 | ||
Long-term debt | 472,105 | 505,385 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 136,232 | 141,538 | ||
Total stockholders' equity | 4,476,911 | 4,546,329 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 725 | 487 | ||
Total liabilities and stockholders' equity | 5,560,884 | 5,691,211 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Financial Information [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | -6,447 | -6,465 | ||
Total current assets | -6,447 | -6,465 | ||
Intercompany receivables, net | -1,827,417 | -1,806,215 | ||
Property, buildings and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill and other intangibles, net | 0 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | -6,993,447 | -7,133,641 | ||
Other assets | 0 | 0 | ||
Total assets | -8,827,311 | -8,946,321 | ||
Accounts payable | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Other Liabilities, Current | -6,447 | -6,465 | ||
Total current liabilities | -6,447 | -6,465 | ||
Intercompany payables, net | -1,827,417 | -1,806,215 | ||
Long-term debt | 0 | 0 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 0 | 0 | ||
Total stockholders' equity | -6,993,447 | -7,133,641 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||
Total liabilities and stockholders' equity | ($8,827,311) | ($8,946,321) |
CONDENSED_CONSOLIDATED_INCOME_
CONDENSED CONSOLIDATED INCOME STATEMENTS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Information [Line Items] | ||
Net sales | $1,816,330 | $1,810,825 |
Cost of goods sold | 1,448,639 | 1,436,032 |
Selling, general and administrative expense | 264,585 | 265,462 |
Depreciation and amortization | 15,921 | 16,372 |
Affiliate Costs | 0 | 0 |
Interest expense, net | -20,894 | -20,688 |
Provision for income taxes | 19,498 | 20,416 |
Net income (loss) | 46,793 | 51,855 |
Less: Net (loss) income attributable to noncontrolling interest | -238 | -50 |
Net income (loss) attributable to WESCO International, Inc. | 47,031 | 51,905 |
Comprehensive Income: | ||
Foreign currency translation adjustment | -113,814 | -46,500 |
Comprehensive income attributable to WESCO International, Inc. | -66,783 | 5,405 |
Parent Company [Member] | ||
Condensed Financial Information [Line Items] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Selling, general and administrative expense | 8 | 0 |
Depreciation and amortization | 0 | 0 |
Affiliate Costs | 51,165 | 56,210 |
Interest expense, net | -6,187 | -6,070 |
Provision for income taxes | -1,822 | -1,715 |
Net income (loss) | 46,792 | 51,855 |
Less: Net (loss) income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to WESCO International, Inc. | 46,792 | 51,855 |
Comprehensive Income: | ||
Foreign currency translation adjustment | -113,814 | -46,500 |
Comprehensive income attributable to WESCO International, Inc. | -67,022 | 5,355 |
WESCO Distribution, Inc. | ||
Condensed Financial Information [Line Items] | ||
Net sales | 839,282 | 829,471 |
Cost of goods sold | 669,806 | 658,584 |
Selling, general and administrative expense | 136,411 | 136,680 |
Depreciation and amortization | 4,834 | 4,700 |
Affiliate Costs | 36,268 | 40,713 |
Interest expense, net | -18,640 | -18,761 |
Provision for income taxes | 2,821 | 3,047 |
Net income (loss) | 43,038 | 48,412 |
Less: Net (loss) income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to WESCO International, Inc. | 43,038 | 48,412 |
Comprehensive Income: | ||
Foreign currency translation adjustment | -113,814 | -46,500 |
Comprehensive income attributable to WESCO International, Inc. | -70,776 | 1,912 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Information [Line Items] | ||
Net sales | 1,005,250 | 1,007,453 |
Cost of goods sold | 807,035 | 803,547 |
Selling, general and administrative expense | 128,166 | 128,782 |
Depreciation and amortization | 11,087 | 11,672 |
Affiliate Costs | 0 | 0 |
Interest expense, net | -3,933 | -4,143 |
Provision for income taxes | 18,499 | 19,084 |
Net income (loss) | 44,396 | 48,511 |
Less: Net (loss) income attributable to noncontrolling interest | -238 | -50 |
Net income (loss) attributable to WESCO International, Inc. | 44,634 | 48,561 |
Comprehensive Income: | ||
Foreign currency translation adjustment | -113,814 | -46,500 |
Comprehensive income attributable to WESCO International, Inc. | -69,180 | 2,061 |
Consolidation, Eliminations [Member] | ||
Condensed Financial Information [Line Items] | ||
Net sales | -28,202 | -26,099 |
Cost of goods sold | -28,202 | -26,099 |
Selling, general and administrative expense | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Affiliate Costs | -87,433 | -96,923 |
Interest expense, net | 0 | 0 |
Provision for income taxes | 0 | 0 |
Net income (loss) | -87,433 | -96,923 |
Less: Net (loss) income attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to WESCO International, Inc. | -87,433 | -96,923 |
Comprehensive Income: | ||
Foreign currency translation adjustment | 227,628 | 93,000 |
Comprehensive income attributable to WESCO International, Inc. | $140,195 | ($3,923) |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Information [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | ($785) | ($39) |
Net cash (used) provided by operating activities | 90,056 | 46,713 |
Investing Activities: | ||
Capital expenditures | -5,026 | -5,012 |
Acquisition payments | 0 | -91,187 |
Net cash used in investing activities | -4,241 | -96,160 |
Financing Activities: | ||
Borrowings | 369,299 | 423,425 |
Repayments | -388,279 | -403,443 |
Payments for Repurchase of Common Stock | -27,602 | -5,331 |
Proceeds from (Payments for) Other Financing Activities | -7,209 | 8,888 |
Net cash used in financing activities | -53,791 | 23,539 |
Effect of exchange rate changes on cash and cash equivalents | -5,992 | -1,461 |
Net change in cash and cash equivalents | 26,032 | -27,369 |
Cash and cash equivalents at the beginning of period | 128,319 | 123,725 |
Cash and cash equivalents at the end of period | 154,351 | 96,356 |
Parent Company [Member] | ||
Condensed Financial Information [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 |
Net cash (used) provided by operating activities | -4,441 | -4,871 |
Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisition payments | 0 | |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 32,125 | 5,168 |
Repayments | 0 | 0 |
Payments for Repurchase of Common Stock | -27,602 | -5,331 |
Proceeds from (Payments for) Other Financing Activities | -82 | 5,034 |
Net cash used in financing activities | 4,441 | 4,871 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at the beginning of period | 0 | 0 |
Cash and cash equivalents at the end of period | 0 | 0 |
WESCO Distribution, Inc. | ||
Condensed Financial Information [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | 32,125 | 5,169 |
Net cash (used) provided by operating activities | 53,333 | 20,415 |
Investing Activities: | ||
Capital expenditures | -4,005 | -3,347 |
Acquisition payments | 0 | |
Net cash used in investing activities | -36,130 | -8,516 |
Financing Activities: | ||
Borrowings | 218,699 | 307,851 |
Repayments | -221,699 | -307,851 |
Payments for Repurchase of Common Stock | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | -7,127 | 3,858 |
Net cash used in financing activities | -10,127 | 3,858 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 7,076 | 15,757 |
Cash and cash equivalents at the beginning of period | 32,508 | 31,695 |
Cash and cash equivalents at the end of period | 39,584 | 47,452 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Information [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | -785 | -39 |
Net cash (used) provided by operating activities | 41,164 | 31,169 |
Investing Activities: | ||
Capital expenditures | -1,021 | -1,665 |
Acquisition payments | -91,187 | |
Net cash used in investing activities | -236 | -92,813 |
Financing Activities: | ||
Borrowings | 150,600 | 115,575 |
Repayments | -166,580 | -95,592 |
Payments for Repurchase of Common Stock | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | -4 |
Net cash used in financing activities | -15,980 | 19,979 |
Effect of exchange rate changes on cash and cash equivalents | -5,992 | -1,461 |
Net change in cash and cash equivalents | 18,956 | -43,126 |
Cash and cash equivalents at the beginning of period | 95,811 | 92,030 |
Cash and cash equivalents at the end of period | 114,767 | 48,904 |
Consolidation, Eliminations [Member] | ||
Condensed Financial Information [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | -32,125 | -5,169 |
Net cash (used) provided by operating activities | 0 | 0 |
Investing Activities: | ||
Capital expenditures | 0 | 0 |
Acquisition payments | 0 | |
Net cash used in investing activities | 32,125 | 5,169 |
Financing Activities: | ||
Borrowings | -32,125 | -5,169 |
Repayments | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Net cash used in financing activities | -32,125 | -5,169 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at the beginning of period | 0 | 0 |
Cash and cash equivalents at the end of period | 0 | 0 |
Consolidated Entities [Member] | ||
Financing Activities: | ||
Payments for Repurchase of Common Stock | ($27,602) |
Subsequent_Events_Details
Subsequent Events (Details) (Hill Country Electric Supply [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Hill Country Electric Supply [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $140 |
Uncategorized_Items
Uncategorized Items | 3/31/15 |
[us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber] | 2,190,049 |