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BUSINESS SEGMENTS
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
SEGMENTS AND RELATED INFORMATION
17. BUSINESS SEGMENTS
Prior to the completion of its merger with Anixter on June 22, 2020, as described in Note 6, "Acquisitions", WESCO had four operating segments that had been aggregated as one reportable segment. Effective on the date of acquisition, the Company added Anixter as a separate reportable segment for the quarterly period ended June 30, 2020. At the beginning of the third quarter, the Company identified new operating segments organized around three strategic business units consisting of EES, CSS and UBS. These operating segments are equivalent to the Company's reportable segments. The operating segments in the respective periods were determined in accordance with the manner in which WESCO's chief operating decision maker ("CODM") reviewed financial information during those periods. The Company's CODM evaluates the performance of its operating segments based primarily on net sales, income from operations, and total assets. The applicable comparative financial information reported in the Company's previously issued consolidated financial statements for the years ended December 31, 2019 and 2018 has been recast below to conform to the basis of the new segments.
The following is a description of each of the Company's reportable segments and their business activities.
Electrical & Electronic Solutions
The EES segment supplies a broad range of products and supply chain solutions primarily to the Construction, Industrial and Original Equipment Manufacturer ("OEM") markets. Product categories include a broad range of electrical equipment and supplies, wire and cable, lubricants, pipe, valves, fittings, fasteners, cutting tools, power transmission, and safety products. In addition, OEM customers require a reliable supply of assemblies and components to incorporate into their own products as well as value-added services such as supplier consolidation, design and technical support, just-in-time supply and electronic commerce, and supply chain management. EES includes the “Electrical and Electronic Solutions” business acquired from Anixter and the majority of the legacy WESCO industrial and construction businesses.
Communications & Security Solutions
The CSS segment supplies products and customized supply chain solutions to customers in a diverse range of industries including technology, finance, telecommunications service providers, transportation, education, government, healthcare and retail. CSS sells these products directly to end users or through various channels including data communications contractors, security, network, professional audio/visual and systems integrators. CSS has a broad product portfolio that includes copper and fiber optic cable and connectivity, access control, video surveillance, intrusion and fire/life safety, cabinets, power, cable management, wireless, professional audio/video, voice and networking switches and other ancillary products. CSS includes the “Network and Security Solutions” business acquired from Anixter and the legacy WESCO data communications and safety businesses.
Utility & Broadband Solutions
The UBS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies and smart-grid products, and arranges materials management and procurement outsourcing for the power generation, power transmission and electricity distribution industries. The UBS segment combines the “Utility Power Solutions” business acquired from Anixter, the legacy WESCO utility business, the legacy WESCO broadband business and the legacy WESCO integrated supply business.
Corporate expenses are incurred to obtain and coordinate financing, tax, information technology, legal and other related services. The Company also has various corporate assets which are reported in corporate. Segment assets may not include jointly used assets, but segment results include depreciation expense or other allocations related to those assets. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis. Corporate expenses and assets are shown in the tables below to reconcile the reportable segments to the consolidated financial statements.
The following table sets forth financial information by reportable segment for the periods presented:
(In thousands)Year Ended December 31, 2020
EESCSSUBSCorporateTotal
Net sales$5,479,760 $3,323,264 $3,522,971 $— $12,325,995 
Income from operations260,207 217,163 231,702 (362,034)347,038 
Depreciation and amortization35,811 37,765 22,380 25,644 121,600 
Capital expenditures7,081 1,495 12,834 35,261 56,671 
Year Ended December 31, 2019
(In thousands)EESCSSUBSCorporateTotal
Net sales$4,860,541 $909,496 $2,588,880 $— $8,358,917 
Income from operations261,788 43,835 184,931 (144,337)346,217 
Depreciation and amortization28,569 7,155 13,583 12,800 62,107 
Capital expenditures20,405 3,093 6,460 14,109 44,067 
Year Ended December 31, 2018
(In thousands)EESCSSUBSCorporateTotal
Net sales$4,878,836 $857,481 $2,440,284 $— $8,176,601 
Income from operations289,065 34,592 165,149 (136,366)352,440 
Depreciation and amortization30,198 7,413 13,447 11,939 62,997 
Capital expenditures7,487 129 2,235 26,359 36,210 
The following table sets forth total assets by reportable segment for the periods presented:
As of
December 31, 2020
(In thousands)EESCSSUBS
Corporate(1)
Total
Total assets$3,726,855 $4,275,611 $2,947,406 $930,342 $11,880,214 
As of
December 31, 2019
(In thousands)EESCSSUBS
Corporate(1)
Total
Total assets$2,523,481 $610,046 $1,747,809 $136,299 $5,017,635 
(1)Total assets for Corporate primarily consist of cash and cash equivalents, deferred income taxes, fixed assets and right-of-use assets associated with operating leases.
The following table sets forth tangible long-lived assets by geographic area:
As of December 31,
20202019
(In thousands)  
United States$693,807 $315,288 
Canada146,620 95,642 
Other International(1)
93,435 6,352 
Total $933,862 $417,282 
(1)    No individual other international country's tangible long-lived assets are material.