OTHER FINANCIAL INFORMATION | 10. CONDENSED CONSOLIDATING FINANCIAL INFORMATION WESCO Distribution has outstanding $500 million in aggregate principal amount of 5.375% Senior Notes due 2021 (the "2021 Notes") and $350 million in aggregate principal amount of 5.375% Senior Notes due 2024 (the "2024 Notes"). The 2021 Notes and 2024 Notes are unsecured senior obligations of WESCO Distribution and are fully and unconditionally 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 in the following tables. Condensed Consolidating Balance Sheet June 30, 2017 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 36,138 $ 51,661 $ — $ 87,799 Trade accounts receivable, net — — 1,144,978 — 1,144,978 Inventories — 379,826 486,475 — 866,301 Prepaid expenses and other current assets 13,652 24,311 212,335 (43,831 ) 206,467 Total current assets 13,652 440,275 1,895,449 (43,831 ) 2,305,545 Intercompany receivables, net — — 2,118,924 (2,118,924 ) — Property, buildings and equipment, net — 49,797 105,406 — 155,203 Intangible assets, net — 3,094 377,332 — 380,426 Goodwill — 244,648 1,496,892 — 1,741,540 Investments in affiliates 3,717,402 4,139,039 — (7,856,441 ) — Other assets — 18,615 22,342 40,957 Total assets $ 3,731,054 $ 4,895,468 $ 6,016,345 $ (10,019,196 ) $ 4,623,671 Accounts payable $ — $ 413,605 $ 355,392 $ — $ 768,997 Short-term debt — — 23,972 — 23,972 Other current liabilities — 39,699 175,569 (43,831 ) 171,437 Total current liabilities — 453,304 554,933 (43,831 ) 964,406 Intercompany payables, net 1,620,034 498,890 — (2,118,924 ) — Long-term debt, net — 958,697 375,845 — 1,334,542 Other noncurrent liabilities 12,741 49,577 167,299 — 229,617 Total WESCO International, Inc. stockholders' equity 2,098,279 2,935,000 4,921,441 (7,856,441 ) 2,098,279 Noncontrolling interests — — (3,173 ) — (3,173 ) Total liabilities and stockholders’ equity $ 3,731,054 $ 4,895,468 $ 6,016,345 $ (10,019,196 ) $ 4,623,671 Condensed Consolidating Balance Sheet December 31, 2016 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 41,552 $ 68,579 $ — $ 110,131 Trade accounts receivable, net — — 1,034,402 — 1,034,402 Inventories — 364,562 456,879 — 821,441 Prepaid expenses and other current assets 13,647 24,214 225,412 (56,790 ) 206,483 Total current assets 13,647 430,328 1,785,272 (56,790 ) 2,172,457 Intercompany receivables, net — — 2,056,783 (2,056,783 ) — Property, buildings and equipment, net — 51,824 105,783 — 157,607 Intangible assets, net — 3,417 389,945 — 393,362 Goodwill — 244,648 1,476,066 — 1,720,714 Investments in affiliates 3,584,857 4,018,661 — (7,603,518 ) — Other assets — 23,846 22,998 — 46,844 Total assets $ 3,598,504 $ 4,772,724 $ 5,836,847 $ (9,717,091 ) $ 4,490,984 Accounts payable $ — $ 381,795 $ 302,926 $ — $ 684,721 Short-term debt — — 20,920 — 20,920 Other current liabilities — 53,458 194,488 (56,790 ) 191,156 Total current liabilities — 435,253 518,334 (56,790 ) 896,797 Intercompany payables, net 1,572,486 484,297 — (2,056,783 ) — Long-term debt, net — 983,449 379,686 — 1,363,135 Other noncurrent liabilities 12,737 46,476 161,827 — 221,040 Total WESCO International, Inc. stockholders' equity 2,013,281 2,823,249 4,780,269 (7,603,518 ) 2,013,281 Noncontrolling interests — — (3,269 ) — (3,269 ) Total liabilities and stockholders’ equity $ 3,598,504 $ 4,772,724 $ 5,836,847 $ (9,717,091 ) $ 4,490,984 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended June 30, 2017 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 843,518 $ 1,100,661 $ (34,555 ) $ 1,909,624 Cost of goods sold (excluding depreciation and amortization) — 683,064 895,001 (34,555 ) 1,543,510 Selling, general and administrative expenses — 134,730 132,558 — 267,288 Depreciation and amortization — 4,583 11,138 — 15,721 Results of affiliates’ operations 49,535 40,753 — (90,288 ) — Interest expense (income), net — 28,518 (11,702 ) — 16,816 Income tax (benefit) expense — (1,862 ) 18,616 — 16,754 Net income 49,535 35,238 55,050 (90,288 ) 49,535 Net income attributable to noncontrolling interests — — 25 — 25 Net income attributable to WESCO International, Inc. $ 49,535 $ 35,238 $ 55,025 $ (90,288 ) $ 49,510 Other comprehensive income: Foreign currency translation adjustments 33,381 33,381 33,381 (66,762 ) 33,381 Comprehensive income attributable to WESCO International, Inc. $ 82,916 $ 68,619 $ 88,406 $ (157,050 ) $ 82,891 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended June 30, 2016 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 853,028 $ 1,087,050 $ (28,496 ) $ 1,911,582 Cost of goods sold (excluding depreciation and amortization) — 682,808 877,801 (28,496 ) 1,532,113 Selling, general and administrative expenses 11 142,942 131,570 — 274,523 Depreciation and amortization — 5,098 11,861 — 16,959 Results of affiliates’ operations 54,511 42,518 — (97,029 ) — Interest expense (income), net 6,333 20,845 (7,726 ) — 19,452 Income tax (benefit) expense (1,685 ) (1,108 ) 21,476 — 18,683 Net income 49,852 44,961 52,068 (97,029 ) 49,852 Net income attributable to noncontrolling interests — — 54 — 54 Net income attributable to WESCO International, Inc. $ 49,852 $ 44,961 $ 52,014 $ (97,029 ) $ 49,798 Other comprehensive loss: Foreign currency translation adjustments (1,765 ) (1,765 ) (1,765 ) 3,530 (1,765 ) Comprehensive income attributable to WESCO International, Inc. $ 48,087 $ 43,196 $ 50,249 $ (93,499 ) $ 48,033 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2017 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,622,129 $ 2,120,315 $ (60,229 ) $ 3,682,215 Cost of goods sold (excluding depreciation and amortization) — 1,304,812 1,721,500 (60,229 ) 2,966,083 Selling, general and administrative expenses — 269,986 264,266 — 534,252 Depreciation and amortization — 9,336 22,350 — 31,686 Results of affiliates’ operations 87,334 75,181 — (162,515 ) — Interest expense (income), net — 49,525 (15,988 ) — 33,537 Income tax (benefit) expense — (2,898 ) 32,221 — 29,323 Net income 87,334 66,549 95,966 (162,515 ) 87,334 Net income attributable to noncontrolling interests — — 96 — 96 Net income attributable to WESCO International, Inc. $ 87,334 $ 66,549 $ 95,870 $ (162,515 ) $ 87,238 Other comprehensive income: Foreign currency translation adjustments 44,949 44,949 44,949 (89,898 ) 44,949 Post retirement benefit plan adjustment 252 252 252 (504 ) 252 Comprehensive income attributable to WESCO International, Inc. $ 132,535 $ 111,750 $ 141,071 $ (252,917 ) $ 132,439 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2016 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,653,518 $ 2,087,095 $ (53,070 ) $ 3,687,543 Cost of goods sold (excluding depreciation and amortization) — 1,322,481 1,683,495 (53,070 ) 2,952,906 Selling, general and administrative expenses (366 ) 223,149 321,026 — 543,809 Depreciation and amortization — 10,203 23,129 — 33,332 Results of affiliates’ operations 92,970 33,834 — (126,804 ) — Interest expense (income), net 12,651 39,704 (14,074 ) — 38,281 Income tax (benefit) expense (3,702 ) 16,939 21,591 — 34,828 Net income 84,387 74,876 51,928 (126,804 ) 84,387 Net loss attributable to noncontrolling interests — — (1,465 ) — (1,465 ) Net income attributable to WESCO International, Inc. $ 84,387 $ 74,876 $ 53,393 $ (126,804 ) $ 85,852 Other comprehensive income: Foreign currency translation adjustments 80,505 80,505 80,505 (161,010 ) 80,505 Post retirement benefit plan adjustment (16 ) (16 ) (16 ) 32 (16 ) Comprehensive income attributable to WESCO International, Inc. $ 164,876 $ 155,365 $ 133,882 $ (287,782 ) $ 166,341 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 (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 $ 9,117 $ 73,130 $ (15,478 ) $ — $ 66,769 Investing activities: Capital expenditures — (4,259 ) (5,536 ) — (9,795 ) Dividends received from subsidiaries — 33,818 — (33,818 ) — Other — (72,761 ) 12,322 63,906 3,467 Net cash (used in) provided by investing activities — (43,202 ) 6,786 30,088 (6,328 ) Financing activities: Borrowings 47,548 313,749 442,674 (72,636 ) 731,335 Repayments — (348,478 ) (420,847 ) 8,730 (760,595 ) Repurchases of common stock (56,665 ) — — — (56,665 ) Dividends paid by subsidiaries — — (33,818 ) 33,818 — Other — (613 ) — — (613 ) Net cash used in financing activities (9,117 ) (35,342 ) (11,991 ) (30,088 ) (86,538 ) Effect of exchange rate changes on cash and cash equivalents — — 3,765 — 3,765 Net change in cash and cash equivalents — (5,414 ) (16,918 ) — (22,332 ) Cash and cash equivalents at the beginning of period — 41,552 68,579 — 110,131 Cash and cash equivalents at the end of period $ — $ 36,138 $ 51,661 $ — $ 87,799 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 (In thousands of dollars) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (233 ) $ (236,891 ) $ 375,734 $ — $ 138,610 Investing activities: Capital expenditures — (5,507 ) (1,579 ) — (7,086 ) Acquisition payments, net of cash acquired — (50,946 ) — — (50,946 ) Dividends received from subsidiaries — 31,234 — (31,234 ) — Other — (23,477 ) 627 14,747 (8,103 ) Net cash used in investing activities — (48,696 ) (952 ) (16,487 ) (66,135 ) Financing activities: Borrowings 973 919,017 193,624 (23,477 ) 1,090,137 Repayments — (636,747 ) (537,712 ) 8,730 (1,165,729 ) Dividends paid by subsidiaries — — (31,234 ) 31,234 — Other (740 ) 152 — — (588 ) Net cash provided by (used in) financing activities 233 282,422 (375,322 ) 16,487 (76,180 ) Effect of exchange rate changes on cash and cash equivalents — — 3,716 — 3,716 Net change in cash and cash equivalents — (3,165 ) 3,176 — 11 Cash and cash equivalents at the beginning of period — 38,963 121,316 — 160,279 Cash and cash equivalents at the end of period $ — $ 35,798 $ 124,492 $ — $ 160,290 |