OTHER FINANCIAL INFORMATION | 18. CONDENSED CONSOLIDATING FINANCIAL INFORMATION WESCO Distribution has outstanding $500 million in aggregate principal amount of 2021 Notes and $350 million in aggregate principal amount of 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, WESCO Distribution and the non-guarantor subsidiaries is presented in the following tables. Condensed Consolidating Balance Sheet December 31, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 35,931 $ 60,412 $ — $ 96,343 Trade accounts receivable, net — — 1,166,607 — 1,166,607 Inventories — 440,422 508,304 — 948,726 Prepaid expenses and other current assets 1,123 57,586 124,523 (9,268 ) 173,964 Total current assets 1,123 533,939 1,859,846 (9,268 ) 2,385,640 Intercompany receivables, net — — 2,403,704 (2,403,704 ) — Property, buildings and equipment, net — 63,506 97,372 — 160,878 Intangible assets, net — 2,131 313,885 — 316,016 Goodwill — 257,623 1,464,980 — 1,722,603 Investments in affiliates 3,182,469 5,137,783 (8,320,252 ) — Other assets — 2,905 16,994 19,899 Total assets $ 3,183,592 $ 5,997,887 $ 6,156,781 $ (10,733,224 ) $ 4,605,036 Accounts payable $ — $ 404,373 $ 389,975 $ — $ 794,348 Short-term debt — — 30,785 — 30,785 Other current liabilities — 86,600 159,481 (9,268 ) 236,813 Total current liabilities — 490,973 580,241 (9,268 ) 1,061,946 Intercompany payables, net 1,048,282 1,355,422 — (2,403,704 ) — Long-term debt — 842,093 325,218 — 1,167,311 Other noncurrent liabilities — 126,930 119,123 — 246,053 Total WESCO International stockholders’ equity 2,135,310 3,182,469 5,137,783 (8,320,252 ) 2,135,310 Noncontrolling interests — — (5,584 ) — (5,584 ) Total liabilities and stockholders’ equity $ 3,183,592 $ 5,997,887 $ 6,156,781 $ (10,733,224 ) $ 4,605,036 Condensed Consolidating Balance Sheet December 31, 2017 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 50,602 $ 67,351 $ — $ 117,953 Trade accounts receivable, net — — 1,170,080 — 1,170,080 Inventories — 430,092 526,056 — 956,148 Prepaid expenses and other current assets 4,730 42,547 152,531 (35,140 ) 164,668 Total current assets 4,730 523,241 1,916,018 (35,140 ) 2,408,849 Intercompany receivables, net — — 2,189,136 (2,189,136 ) — Property, buildings and equipment, net — 50,198 106,247 — 156,445 Intangible assets, net — 2,770 364,334 — 367,104 Goodwill — 257,623 1,514,254 — 1,771,877 Investments in affiliates 3,058,613 5,023,826 — (8,082,439 ) — Other assets — 2,778 28,415 — 31,193 Total assets $ 3,063,343 $ 5,860,436 $ 6,118,404 $ (10,306,715 ) $ 4,735,468 Accounts payable $ — $ 417,690 $ 381,830 $ — $ 799,520 Short-term debt — — 34,075 — 34,075 Other current liabilities — 80,039 162,475 (35,140 ) 207,374 Total current liabilities — 497,729 578,380 (35,140 ) 1,040,969 Intercompany payables, net 939,784 1,249,352 — (2,189,136 ) — Long-term debt — 934,033 379,228 — 1,313,261 Other noncurrent liabilities 3,820 120,709 140,566 — 265,095 Total WESCO International stockholders’ equity 2,119,739 3,058,613 5,023,826 (8,082,439 ) 2,119,739 Noncontrolling interests — — (3,596 ) — (3,596 ) Total liabilities and stockholders’ equity $ 3,063,343 $ 5,860,436 $ 6,118,404 $ (10,306,715 ) $ 4,735,468 Condensed Consolidating Statement of Income and Comprehensive Income Year ended December 31, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,572,406 $ 4,757,321 $ (153,126 ) $ 8,176,601 Cost of goods sold (excluding depreciation and — 2,890,490 3,871,856 (153,126 ) 6,609,220 amortization) Selling, general and administrative expenses — 590,009 561,935 — 1,151,944 Depreciation and amortization — 18,334 44,663 — 62,997 Results of affiliates’ operations 225,355 209,802 — (435,157 ) — Net interest and other — 54,178 17,237 — 71,415 Provision for income taxes — 3,842 51,828 — 55,670 Net income 225,355 225,355 209,802 (435,157 ) 225,355 Less: Net loss attributable to noncontrolling interests — — (1,988 ) — (1,988 ) Net income attributable to WESCO International $ 225,355 $ 225,355 $ 211,790 $ (435,157 ) $ 227,343 Other comprehensive income (loss): Foreign currency translation adjustments (99,643 ) (99,643 ) (99,643 ) 199,286 (99,643 ) Post retirement benefit plan adjustments, net of tax 3,798 3,798 3,798 (7,596 ) 3,798 Comprehensive income attributable to WESCO International $ 129,510 $ 129,510 $ 115,945 $ (243,467 ) $ 131,498 Condensed Consolidating Statement of Income and Comprehensive Income Year ended December 31, 2017 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,370,088 $ 4,441,655 $ (132,722 ) $ 7,679,021 Cost of goods sold (excluding depreciation and — 2,714,511 3,612,577 (132,722 ) 6,194,366 amortization) Selling, general and administrative expenses — 555,503 546,095 — 1,101,598 Depreciation and amortization — 18,442 45,575 — 64,017 Results of affiliates’ operations 160,587 168,782 — (329,369 ) — Net interest and other — 94,313 (27,713 ) — 66,600 Provision for income taxes (2,546 ) (4,486 ) 96,339 — 89,307 Net income 163,133 160,587 168,782 (329,369 ) 163,133 Less: Net loss attributable to noncontrolling interests — — (327 ) — (327 ) Net income attributable to WESCO International $ 163,133 $ 160,587 $ 169,109 $ (329,369 ) $ 163,460 Other comprehensive income (loss): Foreign currency translation adjustments 85,762 85,762 85,762 (171,524 ) 85,762 Post retirement benefit plan adjustments, net of tax (6,381 ) (6,381 ) (6,381 ) 12,762 (6,381 ) Comprehensive income attributable to WESCO International $ 242,514 $ 239,968 $ 248,490 $ (488,131 ) $ 242,841 Condensed Consolidating Statement of Income and Comprehensive Income Year ended December 31, 2016 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 3,306,265 $ 4,134,508 $ (104,756 ) $ 7,336,017 Cost of goods sold (excluding depreciation and — 2,651,409 3,341,161 (104,756 ) 5,887,814 amortization) Selling, general and administrative expenses 61 477,437 573,301 — 1,050,799 Depreciation and amortization — 20,226 46,632 — 66,858 Results of affiliates’ operations 240,571 155,814 — (396,385 ) — Net interest and other 17,555 87,824 (30,317 ) — 75,062 Loss on debt redemption 123,933 — — — 123,933 Provision for income taxes (2,098 ) 8,263 24,266 — 30,431 Net income $ 101,120 $ 216,920 $ 179,465 $ (396,385 ) $ 101,120 Less: Net loss attributable to noncontrolling interests — — (468 ) — (468 ) Net income attributable to WESCO International $ 101,120 $ 216,920 $ 179,933 $ (396,385 ) $ 101,588 Other comprehensive income (loss): Foreign currency translation adjustments 38,275 38,275 38,275 (76,550 ) 38,275 Post retirement benefit plan adjustments, net of tax (2,485 ) (2,485 ) (2,485 ) 4,970 (2,485 ) Comprehensive income attributable to WESCO International $ 136,910 $ 252,710 $ 215,723 $ (467,965 ) $ 137,378 Reclassification As described in Note 13, the Company reclassified a net benefit of $1.8 million and $1.5 million , respectively, from selling, general and administrative expenses to net interest and other in the previously reported Condensed Consolidated Statement of Income and Comprehensive Income of the non-guarantor subsidiaries for the years ended December 31, 2017 and 2016 , respectively. Condensed Consolidating Statement of Cash Flows Year ended December 31, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by operating activities $ 18,672 $ 153,467 $ 124,582 $ — $ 296,721 Investing activities: Capital expenditures — (17,573 ) (18,637 ) — (36,210 ) Proceeds from sale of assets — — 12,461 — 12,461 Dividends received from subsidiaries 347,531 (347,531 ) — Advances to subsidiaries and other — (406,028 ) 196,219 199,416 (10,393 ) Net cash (used in) provided by investing activities — (76,070 ) 190,043 (148,115 ) (34,142 ) Financing activities: Proceeds from issuance of debt 108,497 339,606 1,086,673 (199,416 ) 1,335,360 Repayments of debt — (410,606 ) (1,051,611 ) — (1,462,217 ) Equity activities (127,169 ) — — — (127,169 ) Dividends paid by subsidiaries (347,531 ) 347,531 — Other — (21,068 ) — — (21,068 ) Net cash used in financing activities (18,672 ) (92,068 ) (312,469 ) 148,115 (275,094 ) Effect of exchange rate changes on cash and cash equivalents (9,095 ) — (9,095 ) Net change in cash and cash equivalents — (14,671 ) (6,939 ) — (21,610 ) Cash and cash equivalents at the beginning of period — 50,602 67,351 — 117,953 Cash and cash equivalents at the end of period $ — $ 35,931 $ 60,412 $ — $ 96,343 Condensed Consolidating Statement of Cash Flows Year ended December 31, 2017 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (36,575 ) $ 101,826 $ 83,871 $ — $ 149,122 Investing activities: Capital expenditures — (13,215 ) (8,292 ) — (21,507 ) Proceeds from sale of assets — — 6,766 — 6,766 Dividends received from subsidiaries — 307,784 — (307,784 ) — Advances to subsidiaries and other — (383,686 ) 26,912 366,220 9,446 Net cash (used in) provided by investing activities — (89,117 ) 25,386 58,436 (5,295 ) Financing activities: Proceeds from issuance of debt 143,367 775,926 1,144,848 (383,686 ) 1,680,455 Repayments of debt — (785,392 ) (952,740 ) 17,466 (1,720,666 ) Equity activities (106,792 ) — — — (106,792 ) Dividends paid by subsidiaries — — (307,784 ) 307,784 — Other — 5,807 — — 5,807 Net cash provided by (used in) financing activities 36,575 (3,659 ) (115,676 ) (58,436 ) (141,196 ) Effect of exchange rate changes on cash and cash equivalents — — 5,191 — 5,191 Net change in cash and cash equivalents — 9,050 (1,228 ) — 7,822 Cash and cash equivalents at the beginning of period — 41,552 68,579 — 110,131 Cash and cash equivalents at the end of period $ — $ 50,602 $ 67,351 $ — $ 117,953 Condensed Consolidating Statement of Cash Flows Year ended December 31, 2016 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by (used in) operating activities $ 95,388 $ (243,476 ) $ 448,323 $ — $ 300,235 Investing activities: Capital expenditures — (12,482 ) (5,475 ) — (17,957 ) Acquisition payments, net of cash acquired — (50,890 ) — — (50,890 ) Proceeds from sale of assets — — 8,361 — 8,361 Dividends received from subsidiaries — 82,912 — (82,912 ) — Advances to subsidiaries and other — (297,259 ) (337,344 ) 624,603 (10,000 ) Net cash used in investing activities — (277,719 ) (334,458 ) 541,691 (70,486 ) Financing activities: Proceeds from issuance of debt 252,246 1,566,864 672,345 (297,259 ) 2,194,196 Repayments of debt (344,804 ) (1,030,520 ) (752,401 ) (327,344 ) (2,455,069 ) Equity activities (2,830 ) — — — (2,830 ) Dividends paid by subsidiaries — — (82,912 ) 82,912 — Other — (12,560 ) — — (12,560 ) Net cash (used in) provided by financing activities (95,388 ) 523,784 (162,968 ) (541,691 ) (276,263 ) Effect of exchange rate changes on cash and cash equivalents — — (3,634 ) — (3,634 ) Net change in cash and cash equivalents — 2,589 (52,737 ) — (50,148 ) Cash and cash equivalents at the beginning of period — 38,963 121,316 — 160,279 Cash and cash equivalents at the end of period $ — $ 41,552 $ 68,579 $ — $ 110,131 |