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 June 30, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Cash and cash equivalents $ — $ 34,401 $ 52,817 $ — $ 87,218 Trade accounts receivable, net — — 1,355,541 — 1,355,541 Inventories — 455,898 548,229 — 1,004,127 Prepaid expenses and other current assets 1,123 17,703 121,956 (2,804 ) 137,978 Total current assets 1,123 508,002 2,078,543 (2,804 ) 2,584,864 Intercompany receivables, net — — 2,521,347 (2,521,347 ) — Property, buildings and equipment, net — 73,401 98,958 — 172,359 Operating lease assets — 139,468 93,935 — 233,403 Intangible assets, net — 1,816 302,576 — 304,392 Goodwill — 257,623 1,495,177 — 1,752,800 Investments in affiliates 3,336,052 5,276,915 — (8,612,967 ) — Other assets — 2,597 17,521 — 20,118 Total assets $ 3,337,175 $ 6,259,822 $ 6,608,057 $ (11,137,118 ) $ 5,067,936 Accounts payable $ — $ 418,469 $ 450,136 $ — $ 868,605 Short-term debt — — 27,217 — 27,217 Other current liabilities — 66,660 165,154 (2,804 ) 229,010 Total current liabilities — 485,129 642,507 (2,804 ) 1,124,832 Intercompany payables, net 1,196,100 1,325,247 — (2,521,347 ) — Long-term debt, net — 892,909 506,577 — 1,399,486 Operating lease liabilities — 110,360 67,547 — 177,907 Other noncurrent liabilities — 110,125 120,763 — 230,888 Total WESCO International stockholders' equity 2,141,075 3,336,052 5,276,915 (8,612,967 ) 2,141,075 Noncontrolling interests — — (6,252 ) — (6,252 ) Total liabilities and stockholders’ equity $ 3,337,175 $ 6,259,822 $ 6,608,057 $ (11,137,118 ) $ 5,067,936 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 June 30, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 938,333 $ 1,255,952 $ (44,197 ) $ 2,150,088 Cost of goods sold (excluding depreciation and amortization) — 763,036 1,022,275 (44,197 ) 1,741,114 Selling, general and administrative expenses — 146,133 149,709 — 295,842 Depreciation and amortization — 4,471 10,711 — 15,182 Results of affiliates’ operations 63,215 53,962 — (117,177 ) — Net interest and other — 12,880 4,427 — 17,307 Income tax expense — 2,560 14,868 — 17,428 Net income 63,215 63,215 53,962 (117,177 ) 63,215 Net loss attributable to noncontrolling interests — — (249 ) — (249 ) Net income attributable to WESCO International $ 63,215 $ 63,215 $ 54,211 $ (117,177 ) $ 63,464 Other comprehensive income: Foreign currency translation adjustments 20,244 20,244 20,244 (40,488 ) 20,244 Comprehensive income attributable to WESCO International $ 83,459 $ 83,459 $ 74,455 $ (157,665 ) $ 83,708 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,796,315 $ 2,398,346 $ (83,306 ) $ 4,111,355 Cost of goods sold (excluding depreciation and amortization) — 1,452,592 1,950,600 (83,306 ) 3,319,886 Selling, general and administrative expenses — 298,562 293,808 — 592,370 Depreciation and amortization — 9,027 21,397 — 30,424 Results of affiliates’ operations 105,164 96,375 — (201,539 ) — Net interest and other — 24,914 9,513 — 34,427 Income tax expense — 2,431 26,653 — 29,084 Net income 105,164 105,164 96,375 (201,539 ) 105,164 Net loss attributable to noncontrolling interests — — (668 ) — (668 ) Net income attributable to WESCO International $ 105,164 $ 105,164 $ 97,043 $ (201,539 ) $ 105,832 Other comprehensive income: Foreign currency translation adjustments 42,763 42,763 42,763 (85,526 ) 42,763 Comprehensive income attributable to WESCO International $ 147,927 $ 147,927 $ 139,806 $ (287,065 ) $ 148,595 Condensed Consolidating Statement of Income and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 921,075 $ 1,222,369 $ (39,450 ) $ 2,103,994 Cost of goods sold (excluding depreciation and amortization) — 746,373 997,177 (39,450 ) 1,704,100 Selling, general and administrative expenses — 147,566 145,322 — 292,888 Depreciation and amortization — 4,656 11,167 — 15,823 Results of affiliates’ operations 57,673 51,122 — (108,795 ) — Net interest and other — 14,259 3,482 — 17,741 Income tax expense — 1,670 14,099 — 15,769 Net income 57,673 57,673 51,122 (108,795 ) 57,673 Net loss attributable to noncontrolling interests — — (267 ) — (267 ) Net income attributable to WESCO International $ 57,673 $ 57,673 $ 51,389 $ (108,795 ) $ 57,940 Other comprehensive loss: Foreign currency translation adjustments (28,715 ) (28,715 ) (28,715 ) 57,430 (28,715 ) Comprehensive income attributable to WESCO International $ 28,958 $ 28,958 $ 22,674 $ (51,365 ) $ 29,225 Condensed Consolidating Statement of Income and Comprehensive Income Six Months Ended June 30, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net sales $ — $ 1,803,474 $ 2,372,479 $ (78,044 ) $ 4,097,909 Cost of goods sold (excluding depreciation and amortization) — 1,462,631 1,933,479 (78,044 ) 3,318,066 Selling, general and administrative expenses — 298,047 285,670 — 583,717 Depreciation and amortization — 9,275 22,428 — 31,703 Results of affiliates’ operations 100,644 96,325 — (196,969 ) — Net interest and other — 28,076 9,448 — 37,524 Income tax expense — 1,126 25,129 — 26,255 Net income 100,644 100,644 96,325 (196,969 ) 100,644 Net loss attributable to noncontrolling interests — — (1,717 ) — (1,717 ) Net income attributable to WESCO International $ 100,644 $ 100,644 $ 98,042 $ (196,969 ) $ 102,361 Other comprehensive loss: Foreign currency translation adjustments (57,515 ) (57,515 ) (57,515 ) 115,030 (57,515 ) Comprehensive income attributable to WESCO International $ 43,129 $ 43,129 $ 40,527 $ (81,939 ) $ 44,846 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by (used in) operating activities $ 4,904 $ 128,070 $ (141,749 ) $ — $ (8,775 ) Investing activities: Capital expenditures — (5,843 ) (15,559 ) — (21,402 ) Acquisition payments — (27,742 ) — — (27,742 ) Dividends received from subsidiaries — 44,417 — (44,417 ) — Other — (192,235 ) (1,155 ) 192,235 (1,155 ) Net cash used in investing activities — (181,403 ) (16,714 ) 147,818 (50,299 ) Financing activities: Borrowings 147,818 242,134 720,657 (192,235 ) 918,374 Repayments — (193,134 ) (525,306 ) — (718,440 ) Repurchases of common stock (152,722 ) — — — (152,722 ) Dividends paid by subsidiaries — — (44,417 ) 44,417 — Other — 2,803 — — 2,803 Net cash (used in) provided by financing activities (4,904 ) 51,803 150,934 (147,818 ) 50,015 Effect of exchange rate changes on cash and cash equivalents — — (66 ) — (66 ) Net change in cash and cash equivalents — (1,530 ) (7,595 ) — (9,125 ) Cash and cash equivalents at the beginning of period — 35,931 60,412 — 96,343 Cash and cash equivalents at the end of period $ — $ 34,401 $ 52,817 $ — $ 87,218 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (In thousands) WESCO International, Inc. WESCO Distribution, Inc. Non-Guarantor Subsidiaries Consolidating and Eliminating Entries Consolidated Net cash provided by operating activities $ 9,878 $ 31,192 $ 45,751 $ — $ 86,821 Investing activities: Capital expenditures — (9,334 ) (7,050 ) — (16,384 ) Dividends received from subsidiaries — 95,511 — (95,511 ) — Other — (37,524 ) (8,684 ) 37,524 (8,684 ) Net cash provided by (used in) investing activities — 48,653 (15,734 ) (57,987 ) (25,068 ) Financing activities: Borrowings — 191,888 736,372 (45,511 ) 882,749 Repayments (7,987 ) (260,888 ) (673,761 ) 7,987 (934,649 ) Repurchases of common stock (1,891 ) — — — (1,891 ) Dividends paid by subsidiaries — — (95,511 ) 95,511 — Other — (9,958 ) — — (9,958 ) Net cash used in financing activities (9,878 ) (78,958 ) (32,900 ) 57,987 (63,749 ) Effect of exchange rate changes on cash and cash equivalents — — (5,017 ) — (5,017 ) Net change in cash and cash equivalents — 887 (7,900 ) — (7,013 ) Cash and cash equivalents at the beginning of period — 50,602 67,351 — 117,953 Cash and cash equivalents at the end of period $ — $ 51,489 $ 59,451 $ — $ 110,940 |