OTHER FINANCIAL INFORMATION | WESCO International, Inc. has outstanding $344.9 million in aggregate principal amount of 2029 Debentures. The 2029 Debentures are fully and unconditionally guaranteed by WESCO Distribution, Inc., a 100% owned subsidiary of WESCO International, Inc., on a senior subordinated basis to all existing and future senior indebtedness of WESCO Distribution, Inc. WESCO Distribution, Inc. 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, Inc. and are fully and unconditionally guaranteed on a senior unsecured basis by WESCO International, Inc. Condensed consolidating financial information for WESCO International, Inc., WESCO Distribution, Inc. and the non-guarantor subsidiaries is presented in the following tables. Condensed Consolidating Balance Sheet June 30, 2015 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 43,725 $ 130,582 $ — $ 174,307 Trade accounts receivable, net — — 1,124,893 — 1,124,893 Inventories, net — 399,924 447,121 — 847,045 Other current assets 3 102,257 125,995 (6,450 ) 221,805 Total current assets 3 545,906 1,828,591 (6,450 ) 2,368,050 Intercompany receivables, net — — 1,838,753 (1,838,753 ) — Property, buildings and equipment, net — 60,246 119,803 — 180,049 Intangible assets, net — 4,193 411,134 — 415,327 Goodwill — 254,899 1,458,219 — 1,713,118 Investments in affiliates 3,322,835 3,823,109 — (7,145,944 ) — Other noncurrent assets 3,943 11,418 34,462 — 49,823 Total assets $ 3,326,781 $ 4,699,771 $ 5,690,962 $ (8,991,147 ) $ 4,726,367 Accounts payable $ — $ 454,136 $ 316,469 $ — $ 770,605 Short-term debt — — 46,924 — 46,924 Other current liabilities 12,463 58,246 129,923 (6,450 ) 194,182 Total current liabilities 12,463 512,382 493,316 (6,450 ) 1,011,711 Intercompany payables, net 1,245,134 593,619 — (1,838,753 ) — Long-term debt, net 179,526 753,014 504,262 — 1,436,802 Other noncurrent liabilities 21,887 251,872 138,152 — 411,911 Total WESCO International, Inc. stockholders' equity 1,867,771 2,588,884 4,557,060 (7,145,944 ) 1,867,771 Noncontrolling interest — — (1,828 ) — (1,828 ) Total liabilities and stockholders’ equity $ 3,326,781 $ 4,699,771 $ 5,690,962 $ (8,991,147 ) $ 4,726,367 Condensed Consolidating Balance Sheet December 31, 2014 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated 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, Inc. 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 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended June 30, 2015 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 884,769 $ 1,062,255 $ (30,306 ) $ 1,916,718 Cost of goods sold (excluding depreciation and amortization) — 714,088 851,302 (30,306 ) 1,535,084 Selling, general and administrative expenses 9 147,911 127,322 — 275,242 Depreciation and amortization — 4,940 11,199 — 16,139 Results of affiliates’ operations 55,029 46,387 — (101,416 ) — Interest expense, net 6,200 17,240 (4,827 ) — 18,613 Provision for income taxes (1,820 ) 168 22,653 — 21,001 Net income 50,640 46,809 54,606 (101,416 ) 50,639 Net loss attributable to noncontrolling interest — — (1,102 ) — (1,102 ) Net income attributable to WESCO International, Inc. $ 50,640 $ 46,809 $ 55,708 $ (101,416 ) $ 51,741 Other comprehensive income: Foreign currency translation adjustments 25,542 25,542 25,542 (51,084 ) 25,542 Comprehensive income attributable to WESCO International, Inc. $ 76,182 $ 72,351 $ 81,250 $ (152,500 ) $ 77,283 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended June 30, 2014 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 894,199 $ 1,140,850 $ (29,884 ) $ 2,005,165 Cost of goods sold (excluding depreciation and amortization) — 720,938 902,383 (29,884 ) 1,593,437 Selling, general and administrative expenses 2 144,766 133,941 — 278,709 Depreciation and amortization — 4,914 12,272 — 17,186 Results of affiliates’ operations 73,172 61,502 — (134,674 ) — Interest expense, net 6,084 18,328 (4,075 ) — 20,337 Provision for income taxes (1,700 ) 1,465 26,944 — 26,709 Net income 68,786 65,290 69,385 (134,674 ) 68,787 Net loss attributable to noncontrolling interest — — (15 ) — (15 ) Net income attributable to WESCO International, Inc. $ 68,786 $ 65,290 $ 69,400 $ (134,674 ) $ 68,802 Other comprehensive income: Foreign currency translation adjustments 43,023 43,023 43,023 (86,046 ) 43,023 Comprehensive income attributable to WESCO International, Inc. $ 111,809 $ 108,313 $ 112,423 $ (220,720 ) $ 111,825 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2015 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,724,052 $ 2,067,504 $ (58,508 ) $ 3,733,048 Cost of goods sold (excluding depreciation and amortization) — 1,383,896 1,658,335 (58,508 ) 2,983,723 Selling, general and administrative expenses 16 284,322 255,488 — 539,826 Depreciation and amortization — 9,774 22,286 — 32,060 Results of affiliates’ operations 106,194 82,655 — (188,849 ) — Interest expense, net 12,388 35,880 (8,760 ) — 39,508 Provision for income taxes (3,641 ) 2,989 41,152 — 40,500 Net income 97,431 89,846 99,003 (188,849 ) 97,431 Net loss attributable to noncontrolling interest — — (1,341 ) — (1,341 ) Net income attributable to WESCO International, Inc. $ 97,431 $ 89,846 $ 100,344 $ (188,849 ) $ 98,772 Other comprehensive loss: Foreign currency translation adjustments (88,257 ) (88,257 ) (88,257 ) 176,514 (88,257 ) Comprehensive income attributable to WESCO International, Inc. $ 9,174 $ 1,589 $ 12,087 $ (12,335 ) $ 10,515 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2014 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,723,670 $ 2,148,303 $ (55,982 ) $ 3,815,991 Cost of goods sold (excluding depreciation and amortization) — 1,379,523 1,705,929 (55,982 ) 3,029,470 Selling, general and administrative expenses 2 281,446 262,723 — 544,171 Depreciation and amortization — 9,614 23,944 — 33,558 Results of affiliates’ operations 129,382 102,215 — (231,597 ) — Interest expense, net 12,153 37,090 (8,218 ) — 41,025 Provision for income taxes (3,414 ) 4,511 46,028 — 47,125 Net income 120,641 113,701 117,897 (231,597 ) 120,642 Net loss attributable to noncontrolling interest — — (65 ) — (65 ) Net income attributable to WESCO International, Inc. $ 120,641 $ 113,701 $ 117,962 $ (231,597 ) $ 120,707 Other comprehensive loss: Foreign currency translation adjustments (3,477 ) (3,477 ) (3,477 ) 6,954 (3,477 ) Comprehensive income attributable to WESCO International, Inc. $ 117,164 $ 110,224 $ 114,485 $ (224,643 ) $ 117,230 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by operating activities $ 2,440 $ 91,787 $ 38,414 $ — $ 132,641 Investing activities: Capital expenditures — (7,144 ) (5,480 ) — (12,624 ) Acquisition payments, net of cash acquired — (68,502 ) — — (68,502 ) Other — (76,769 ) 1,425 76,769 1,425 Net cash used in investing activities — (152,415 ) (4,055 ) 76,769 (79,701 ) Financing activities: Borrowings 76,769 598,269 256,327 (76,769 ) 854,596 Repayments — (528,464 ) (250,996 ) — (779,460 ) Equity activities (80,749 ) — — — (80,749 ) Other 1,540 2,040 — — 3,580 Net cash (used in) provided by financing activities (2,440 ) 71,845 5,331 (76,769 ) (2,033 ) Effect of exchange rate changes on cash and cash equivalents — — (4,919 ) — (4,919 ) Net change in cash and cash equivalents — 11,217 34,771 — 45,988 Cash and cash equivalents at the beginning of period — 32,508 95,811 — 128,319 Cash and cash equivalents at the end of period $ — $ 43,725 $ 130,582 $ — $ 174,307 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2014 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by (used in) operating activities $ 1,063 $ 57,016 $ (7,237 ) $ — $ 50,842 Investing activities: Capital expenditures — (8,380 ) (3,405 ) — (11,785 ) Acquisition payments, net of cash acquired — (42,131 ) (91,187 ) — (133,318 ) Other — 675 27 (675 ) 27 Net cash used in investing activities — (49,836 ) (94,565 ) (675 ) (145,076 ) Financing activities: Borrowings — 409,460 230,461 — 639,921 Repayments (675 ) (402,459 ) (160,572 ) 675 (563,031 ) Equity activities (6,441 ) — — — (6,441 ) Other 6,053 (1,189 ) (3 ) — 4,861 Net cash (used in) provided by financing activities (1,063 ) 5,812 69,886 675 75,310 Effect of exchange rate changes on cash and cash equivalents — — (3,158 ) — (3,158 ) Net change in cash and cash equivalents — 12,992 (35,074 ) — (22,082 ) Cash and cash equivalents at the beginning of period — 31,695 92,030 — 123,725 Cash and cash equivalents at the end of period $ — $ 44,687 $ 56,956 $ — $ 101,643 The unaudited Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2014 includes certain reclassifications to previously reported amounts to conform to the current period presentation. |