OTHER FINANCIAL INFORMATION | 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 December 31, 2015 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 38,963 $ 121,316 $ — $ 160,279 Trade accounts receivable, net — — 1,075,257 — 1,075,257 Inventories — 376,641 433,426 — 810,067 Prepaid expenses and other current assets 15 47,290 173,596 (8,970 ) 211,931 Total current assets 15 462,894 1,803,595 (8,970 ) 2,257,534 Intercompany receivables, net — — 1,964,848 (1,964,848 ) — Property, buildings and equipment, net — 56,921 109,818 — 166,739 Intangible assets, net — 4,072 399,577 — 403,649 Goodwill — 255,251 1,426,411 — 1,681,662 Investments in affiliates 3,309,006 3,827,069 — (7,136,075 ) — Other assets 3,804 44,731 29,306 — 77,841 Total assets $ 3,312,825 $ 4,650,938 $ 5,733,555 $ (9,109,893 ) $ 4,587,425 Accounts payable $ — $ 414,524 $ 300,995 $ — $ 715,519 Short-term debt — — 43,314 — 43,314 Other current liabilities 15,254 55,129 127,555 (8,970 ) 188,968 Total current liabilities 15,254 469,653 471,864 (8,970 ) 947,801 Intercompany payables, net 1,320,240 644,608 — (1,964,848 ) — Long-term debt 181,557 749,620 525,584 — 1,456,761 Other noncurrent liabilities 19,102 216,515 173,375 — 408,992 Total WESCO International stockholders’ equity 1,776,672 2,570,542 4,565,533 (7,136,075 ) 1,776,672 Noncontrolling interest — — (2,801 ) — (2,801 ) Total liabilities and stockholders’ equity $ 3,312,825 $ 4,650,938 $ 5,733,555 $ (9,109,893 ) $ 4,587,425 Condensed Consolidating Balance Sheet December 31, 2014 (In thousands) 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 — 373,938 445,564 — 819,502 Prepaid expenses and 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 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 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 Condensed Consolidating Statement of Income and Comprehensive Income (Loss) Year ended December 31, 2015 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,456,883 $ 4,177,383 $ (115,779 ) $ 7,518,487 Cost of goods sold (excluding depreciation and — 2,784,413 3,356,192 (115,779 ) 6,024,826 amortization Selling, general and administrative expenses 26 611,549 443,376 — 1,054,951 Depreciation and amortization — 19,703 45,265 — 64,968 Results of affiliates’ operations 225,370 219,619 — (444,989 ) — Interest expense (income), net 24,910 63,261 (18,339 ) — 69,832 Provision for income taxes (7,939 ) (6,929 ) 110,405 — 95,537 Net income 208,373 204,505 240,484 (444,989 ) 208,373 Less: Net loss attributable to noncontrolling interest — — (2,314 ) — (2,314 ) Net income attributable to WESCO International, Inc. $ 208,373 $ 204,505 $ 242,798 $ (444,989 ) $ 210,687 Other comprehensive income (loss): Foreign currency translation adjustment (225,795 ) (225,795 ) (225,795 ) 451,590 (225,795 ) Post retirement benefit plan adjustment 4,532 4,532 4,532 (9,064 ) 4,532 Comprehensive (loss) income attributable to WESCO International, Inc. $ (12,890 ) $ (16,758 ) $ 21,535 $ (2,463 ) $ (10,576 ) Condensed Consolidating Statement of Income and Comprehensive Income Year ended December 31, 2014 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,557,839 $ 4,446,139 $ (114,352 ) $ 7,889,626 Cost of goods sold (excluding depreciation and — 2,848,413 3,544,523 (114,352 ) 6,278,584 amortization Selling, general and administrative expenses 9 557,596 519,203 — 1,076,808 Depreciation and amortization — 19,084 48,933 — 68,017 Results of affiliates’ operations 292,845 231,174 — (524,019 ) — Interest expense (income), net 24,472 74,653 (17,061 ) — 82,064 Provision for income taxes (7,072 ) 16,446 99,342 — 108,716 Net income 275,436 272,821 251,199 (524,019 ) 275,437 Less: Net loss attributable to noncontrolling interest — — (469 ) — (469 ) Net income attributable to WESCO International, Inc. $ 275,436 $ 272,821 $ 251,668 $ (524,019 ) $ 275,906 Other comprehensive loss: Foreign currency translation adjustment (120,293 ) (120,293 ) (120,293 ) 240,586 (120,293 ) Post retirement benefit plan adjustment (5,056 ) (5,056 ) (5,056 ) 10,112 (5,056 ) Comprehensive income attributable to WESCO International, Inc. $ 150,087 $ 147,472 $ 126,319 $ (273,321 ) $ 150,557 Condensed Consolidating Statement of Income and Comprehensive Income Year ended December 31, 2013 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,386,043 $ 4,253,666 $ (126,367 ) $ 7,513,342 Cost of goods sold (excluding depreciation and — 2,700,692 3,393,567 (126,367 ) 5,967,892 amortization Selling, general and administrative expenses 29 485,575 511,206 — 996,810 Depreciation and amortization — 18,331 49,311 — 67,642 Results of affiliates’ operations 294,137 207,630 — (501,767 ) — Interest expense (income), net 23,918 75,294 (13,605 ) — 85,607 Loss on debt extinguishment — 13,225 — — 13,225 Loss on sale of Argentina business — — 2,315 — 2,315 Provision for income taxes (6,327 ) 25,657 84,003 — 103,333 Net income $ 276,517 $ 274,899 $ 226,869 $ (501,767 ) $ 276,518 Less: Net income attributable to noncontrolling interest — — 88 — 88 Net income attributable to WESCO International, Inc. $ 276,517 $ 274,899 $ 226,781 $ (501,767 ) $ 276,430 Other comprehensive income (loss): Foreign currency translation adjustment (83,172 ) (83,172 ) (83,172 ) 166,344 (83,172 ) Post retirement benefit plan adjustment 7,673 7,673 7,673 (15,346 ) 7,673 Comprehensive income attributable to WESCO International, Inc. $ 201,018 $ 199,400 $ 151,282 $ (350,769 ) $ 200,931 Condensed Consolidating Statement of Cash Flows Year ended December 31, 2015 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by operating activities $ 3,531 $ 214,037 $ 65,481 $ — $ 283,049 Investing activities: Capital expenditures — (15,266 ) (6,392 ) — (21,658 ) Acquisition payments, net of cash acquired — (151,595 ) — — (151,595 ) Proceeds from sale of assets — — 3,023 — 3,023 Dividends received from subsidiaries — 114,101 — (114,101 ) — Advances to subsidiaries and other — (197,345 ) 17,461 179,884 — Net cash used in investing activities — (250,105 ) 14,092 65,783 (170,230 ) Financing activities: Proceeds from issuance of debt 150,705 1,224,596 452,655 (197,345 ) 1,630,611 Repayments of debt — (1,175,056 ) (379,578 ) 17,461 (1,537,173 ) Equity activities (154,236 ) — — — (154,236 ) Dividends paid by subsidiaries — — (114,101 ) 114,101 — Other — (7,017 ) — — (7,017 ) Net cash (used in) provided by financing activities (3,531 ) 42,523 (41,024 ) (65,783 ) (67,815 ) Effect of exchange rate changes on cash and cash equivalents — — (13,044 ) — (13,044 ) Net change in cash and cash equivalents — 6,455 25,505 — 31,960 Cash and cash equivalents at the beginning of period — 32,508 95,811 — 128,319 Cash and cash equivalents at the end of period $ — $ 38,963 $ 121,316 $ — $ 160,279 Condensed Consolidating Statement of Cash Flows Year ended December 31, 2014 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by operating activities $ 820 $ 51,738 $ 198,598 $ — $ 251,156 Investing activities: Capital expenditures — (13,717 ) (6,831 ) — (20,548 ) Acquisition payments, net of cash acquired — (42,226 ) (96,404 ) — (138,630 ) Proceeds from sale of assets — — 14,991 — 14,991 Dividends received from subsidiaries — 71,381 — (71,381 ) — Advances to subsidiaries and other — (53,779 ) 17,461 36,318 — Net cash used in investing activities — (38,341 ) (70,783 ) (35,063 ) (144,187 ) Financing activities: Proceeds from issuance of debt 6,517 798,315 495,493 (60,437 ) 1,239,888 Repayments of debt (6,658 ) (807,776 ) (541,080 ) 24,119 (1,331,395 ) Equity activities (679 ) — — — (679 ) Dividends paid by subsidiaries — — (71,381 ) 71,381 — Other — (3,123 ) (181 ) — (3,304 ) Net cash (used in) provided by financing activities (820 ) (12,584 ) (117,149 ) 35,063 (95,490 ) Effect of exchange rate changes on cash and cash equivalents — — (6,885 ) — (6,885 ) Net change in cash and cash equivalents — 813 3,781 — 4,594 Cash and cash equivalents at the beginning of period — 31,695 92,030 — 123,725 Cash and cash equivalents at the end of period $ — $ 32,508 $ 95,811 $ — $ 128,319 Condensed Consolidating Statement of Cash Flows Year ended December 31, 2013 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (10,716 ) $ 209,501 $ 116,356 $ — $ 315,141 Investing activities: Capital expenditures — (16,728 ) (11,097 ) — (27,825 ) Proceeds from sale of assets — — 10,807 — 10,807 Dividends received from subsidiaries — 62,507 — (62,507 ) — Advances to subsidiaries and other — (59,991 ) 16,256 42,530 (1,205 ) Net cash used in investing activities — (14,212 ) 15,966 (19,977 ) (18,223 ) Financing activities: Proceeds from issuance of debt 14,945 1,143,604 404,293 (59,991 ) 1,502,851 Repayments of debt — (1,345,377 ) (412,561 ) 17,461 (1,740,477 ) Equity activities (4,229 ) — — — (4,229 ) Dividends paid by subsidiaries — — (62,507 ) 62,507 — Other — (14,096 ) (1,568 ) — (15,664 ) Net cash provided by (used in) financing activities 10,716 (215,869 ) (72,343 ) 19,977 (257,519 ) Effect of exchange rate changes on cash and cash equivalents — — (1,773 ) — (1,773 ) Net change in cash and cash equivalents — (20,580 ) 58,206 — 37,626 Cash and cash equivalents at the beginning of period — 52,275 33,824 — 86,099 Cash and cash equivalents at the end of period $ — $ 31,695 $ 92,030 $ — $ 123,725 Revisions The Condensed Consolidating Statements of Cash Flow for the years ended December 31, 2014 and 2013 were revised to appropriately present dividends paid by the non-guarantor subsidiaries and dividends received by WESCO Distribution, Inc. The revisions did not impact the consolidated amounts previously reported, nor did they impact the Company's obligations under the 2021 Notes or the 2029 Debentures. |