OTHER FINANCIAL INFORMATION | 13. 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, WESCO Distribution and the non-guarantor subsidiaries is presented in the following tables. Condensed Consolidating Balance Sheet March 31, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 38,774 $ 67,326 $ — $ 106,100 Trade accounts receivable, net — — 1,268,565 — 1,268,565 Inventories — 453,738 547,615 — 1,001,353 Prepaid expenses and other current assets 1,127 22,341 118,406 (4,142 ) 137,732 Total current assets 1,127 514,853 2,001,912 (4,142 ) 2,513,750 Intercompany receivables, net — — 2,400,124 (2,400,124 ) — Property, buildings and equipment, net — 68,829 97,859 — 166,688 Operating lease assets — 139,397 93,592 — 232,989 Intangible assets, net — 1,974 308,479 — 310,453 Goodwill — 257,623 1,483,148 — 1,740,771 Investments in affiliates 3,252,590 5,202,712 — (8,455,302 ) — Other assets — 2,717 17,270 — 19,987 Total assets $ 3,253,717 $ 6,188,105 $ 6,402,384 $ (10,859,568 ) $ 4,984,638 Accounts payable $ — $ 426,015 $ 444,227 $ — $ 870,242 Short-term debt — — 27,313 — 27,313 Other current liabilities — 82,527 174,782 (4,142 ) 253,167 Total current liabilities — 508,542 646,322 (4,142 ) 1,150,722 Intercompany payables, net 1,051,352 1,348,772 — (2,400,124 ) — Long-term debt, net — 841,554 372,722 — 1,214,276 Operating lease liabilities — 110,998 67,608 — 178,606 Other noncurrent liabilities — 125,649 119,023 — 244,672 Total WESCO International stockholders' equity 2,202,365 3,252,590 5,202,712 (8,455,302 ) 2,202,365 Noncontrolling interests — — (6,003 ) — (6,003 ) Total liabilities and stockholders’ equity $ 3,253,717 $ 6,188,105 $ 6,402,384 $ (10,859,568 ) $ 4,984,638 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, net — 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 Statement of Income and Comprehensive Income Three Months Ended March 31, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 857,982 $ 1,142,394 $ (39,109 ) $ 1,961,267 Cost of goods sold (excluding depreciation and amortization) — 689,556 928,324 (39,109 ) 1,578,771 Selling, general and administrative expenses — 152,429 144,099 — 296,528 Depreciation and amortization — 4,555 10,687 — 15,242 Results of affiliates’ operations 41,950 42,413 — (84,363 ) — Net interest and other — 12,034 5,086 — 17,120 Income tax expense — (129 ) 11,785 — 11,656 Net income 41,950 41,950 42,413 (84,363 ) 41,950 Net loss attributable to noncontrolling interests — — (419 ) — (419 ) Net income attributable to WESCO International $ 41,950 $ 41,950 $ 42,832 $ (84,363 ) $ 42,369 Other comprehensive loss: Foreign currency translation adjustments 22,517 22,517 22,517 (45,034 ) 22,517 Comprehensive income attributable to WESCO International $ 64,467 $ 64,467 $ 65,349 $ (129,397 ) $ 64,886 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended March 31, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 882,399 $ 1,150,110 $ (38,594 ) $ 1,993,915 Cost of goods sold (excluding depreciation and amortization) — 716,258 936,302 (38,594 ) 1,613,966 Selling, general and administrative expenses — 150,482 140,347 — 290,829 Depreciation and amortization — 4,616 11,263 — 15,879 Results of affiliates’ operations 42,971 45,200 — (88,171 ) — Net interest and other — 13,816 5,967 — 19,783 Income tax (benefit) expense — (544 ) 11,031 — 10,487 Net income 42,971 42,971 45,200 (88,171 ) 42,971 Net loss attributable to noncontrolling interests — — (1,450 ) — (1,450 ) Net income attributable to WESCO International $ 42,971 $ 42,971 $ 46,650 $ (88,171 ) $ 44,421 Other comprehensive loss: Foreign currency translation adjustments (28,800 ) (28,800 ) (28,800 ) 57,600 (28,800 ) Comprehensive income attributable to WESCO International $ 14,171 $ 14,171 $ 17,850 $ (30,571 ) $ 15,621 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ 5,157 $ 27,122 $ (3,410 ) $ — $ 28,869 Investing activities: Acquisition payments — (27,742 ) — — (27,742 ) Capital expenditures — (2,513 ) (8,315 ) — (10,828 ) Dividends received from subsidiaries — 22,095 — (22,095 ) — Other — (19,510 ) 53 19,510 53 Net cash used in investing activities — (27,670 ) (8,262 ) (2,585 ) (38,517 ) Financing activities: Borrowings — 139,134 330,196 (22,095 ) 447,235 Repayments (2,585 ) (140,134 ) (289,674 ) 2,585 (429,808 ) Repurchases of common stock (2,572 ) — — — (2,572 ) Dividends paid by subsidiaries — — (22,095 ) 22,095 — Increase in bank overdrafts — 4,639 — — 4,639 Other — (248 ) — — (248 ) Net cash provided by (used in) financing activities (5,157 ) 3,391 18,427 2,585 19,246 Effect of exchange rate changes on cash and cash equivalents — — 159 — 159 Net change in cash and cash equivalents — 2,843 6,914 — 9,757 Cash and cash equivalents at the beginning of period — 35,931 60,412 — 96,343 Cash and cash equivalents at the end of period $ — $ 38,774 $ 67,326 $ — $ 106,100 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by (used in) operating activities $ 5,497 $ 57,694 $ (10,198 ) $ — $ 52,993 Investing activities: Capital expenditures — (2,954 ) (4,708 ) — (7,662 ) Dividends received from subsidiaries — 22,744 — (22,744 ) — Other — (18,908 ) (8,760 ) 18,908 (8,760 ) Net cash provided by (used in) investing activities — 882 (13,468 ) (3,836 ) (16,422 ) Financing activities: Borrowings — 58,000 515,663 (22,744 ) 550,919 Repayments (3,836 ) (90,000 ) (477,220 ) 3,836 (567,220 ) Repurchases of common stock (1,661 ) — — — (1,661 ) Dividends paid by subsidiaries — — (22,744 ) 22,744 — Decrease in bank overdrafts — (10,575 ) — — (10,575 ) Other — (290 ) — — (290 ) Net cash (used in) provided by financing activities (5,497 ) (42,865 ) 15,699 3,836 (28,827 ) Effect of exchange rate changes on cash and cash equivalents — — (1,800 ) — (1,800 ) Net change in cash and cash equivalents — 15,711 (9,767 ) — 5,944 Cash and cash equivalents at the beginning of period — 50,602 67,351 — 117,953 Cash and cash equivalents at the end of period $ — $ 66,313 $ 57,584 $ — $ 123,897 |