QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
Suite 700 | |||||||||||
(Zip Code) | |||||||||||
(Address of principal executive offices) |
Title of Class | Trading Symbol(s) | Name of Exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Page | |||||
PART I—FINANCIAL INFORMATION | |||||
PART II—OTHER INFORMATION | |||||
Page | |||||
As of | |||||||||||
Assets | June 30, 2022 | December 31, 2021 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, net of allowance for expected credit losses of $ | |||||||||||
Other accounts receivable | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, buildings and equipment, net of accumulated depreciation of $ | |||||||||||
Operating lease assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued payroll and benefit costs | |||||||||||
Short-term debt and current portion of long-term debt | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of debt discount and debt issuance costs of $ | |||||||||||
Operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other noncurrent liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Preferred stock, Series A, $ | |||||||||||
Common stock, $ | |||||||||||
Class B nonvoting convertible common stock, $ | |||||||||||
Additional capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total WESCO International, Inc. stockholders' equity | |||||||||||
Noncontrolling interests | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold (excluding depreciation and amortization) | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other expense (income), net | ( | ( | |||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||||||||||||||
Net income attributable to WESCO International, Inc. | |||||||||||||||||||||||
Less: Preferred stock dividends | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Foreign currency translation adjustments and other | ( | ( | |||||||||||||||||||||
Comprehensive income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share attributable to common stockholders | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Six Months Ended | |||||||||||
June 30 | |||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Amortization of debt discount and debt issuance costs | |||||||||||
Gain on divestitures, net | ( | ||||||||||
Other operating activities, net | |||||||||||
Deferred income taxes | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Trade accounts receivable, net | ( | ( | |||||||||
Other accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Other current and noncurrent assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued payroll and benefit costs | ( | ||||||||||
Other current and noncurrent liabilities | |||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from divestitures | |||||||||||
Other investing activities, net | ( | ||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
Financing activities: | |||||||||||
Proceeds (repayments) of short-term debt, net | ( | ||||||||||
Repayment of 5.375% Senior Notes due 2021 | ( | ||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Payments for taxes related to net-share settlement of equity awards | ( | ( | |||||||||
Payment of dividends | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Other financing activities, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at the beginning of period | |||||||||||
Cash and cash equivalents at the end of period | $ | $ | |||||||||
Supplemental disclosures: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ |
Class B | Series A | Retained | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Preferred Stock | Additional | Earnings | Treasury Stock | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Shares | Amount | Shares | Amount | Shares | Capital | (Deficit) | Amount | Shares | Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock-based awards | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding related to vesting of restricted stock units and retirement of common stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to WESCO International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock-based awards | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding related to vesting of restricted stock units and retirement of common stock | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to WESCO International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments and other | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | Series A | Retained | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Preferred Stock | Additional | Earnings | Treasury Stock | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Shares | Amount | Shares | Amount | Shares | Capital | (Deficit) | Amount | Shares | Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock-based awards | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding related to vesting of restricted stock units and retirement of common stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to WESCO International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock-based awards | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding related to vesting of restricted stock units and retirement of common stock | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to WESCO International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments and other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | $ | ( | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Electrical & Electronic Solutions | $ | $ | $ | $ | |||||||||||||||||||
Communications & Security Solutions | |||||||||||||||||||||||
Utility & Broadband Solutions | |||||||||||||||||||||||
Total by segment | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Other International(1) | |||||||||||||||||||||||
Total by geography(2) | $ | $ | $ | $ |
Six Months Ended | |||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||
EES | CSS | UBS | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Beginning balance, January 1 | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency exchange rate changes | ( | ( | ( | ( | |||||||||||||||||||
Ending balance, June 30 | $ | $ | $ | $ |
As of | ||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Life (in years) | Gross Carrying Amount (1) | Accumulated Amortization (1) | Net Carrying Amount | Gross Carrying Amount (1) | Accumulated Amortization (1) | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Intangible assets: | (In thousands) | |||||||||||||||||||||||||||||||||||||
Trademarks | Indefinite | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||
Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||
Distribution agreements | ( | ( | ||||||||||||||||||||||||||||||||||||
Trademarks | 5 - | ( | ( | |||||||||||||||||||||||||||||||||||
Non-compete agreements | ( | |||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
For the year ending December 31, | (In thousands) | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||
Stock options granted | |||||||||||||||||||||||
Weighted-average fair value | $ | $ | $ | $ | |||||||||||||||||||
Stock-settled stock appreciation rights granted | |||||||||||||||||||||||
Weighted-average fair value | $ | $ | $ | $ | |||||||||||||||||||
Restricted stock units granted | |||||||||||||||||||||||
Weighted-average fair value | $ | $ | $ | $ | |||||||||||||||||||
Performance-based awards granted | |||||||||||||||||||||||
Weighted-average fair value | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||
Risk free interest rate | n/a | % | % | % | |||||||||||||||||||
Expected life (in years) | n/a | ||||||||||||||||||||||
Expected volatility | n/a | % | % | % |
Awards | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | |||||||||||||||||||||||
Forfeited | |||||||||||||||||||||||
Outstanding at June 30, 2022 | $ | $ | |||||||||||||||||||||
Exercisable at June 30, 2022 | $ | $ |
Awards | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | ||||||||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Outstanding at June 30, 2022 | $ | $ | |||||||||||||||||||||
Exercisable at June 30, 2022 | $ | $ |
Awards | Weighted- Average Fair Value | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at June 30, 2022 | $ |
Awards | Weighted- Average Fair Value | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at June 30, 2022 | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income attributable to WESCO International, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Less: Preferred stock dividends | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding used in computing basic earnings per share | |||||||||||||||||||||||
Common shares issuable upon exercise of dilutive equity awards | |||||||||||||||||||||||
Weighted-average common shares outstanding and common share equivalents used in computing diluted earnings per share | |||||||||||||||||||||||
Earnings per share attributable to common stockholders | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(In thousands) | |||||||||||
International lines of credit | $ | $ | |||||||||
Accounts Receivable Securitization Facility | |||||||||||
Revolving Credit Facility | |||||||||||
5.50% Anixter Senior Notes due 2023 | |||||||||||
6.00% Anixter Senior Notes due 2025 | |||||||||||
7.125% Senior Notes due 2025 | |||||||||||
7.250% Senior Notes due 2028, less debt discount of $ | |||||||||||
Finance lease obligations | |||||||||||
Total debt | |||||||||||
Plus: Fair value adjustment to the Anixter Senior Notes | |||||||||||
Less: Unamortized debt issuance costs | ( | ( | |||||||||
Less: Short-term debt and current portion of long-term debt(1) | ( | ( | |||||||||
Total long-term debt | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||
(In thousands) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||
Domestic Plans | Foreign Plans | Total | |||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Recognized actuarial gain(1) | ( | ( | |||||||||||||||||||||||||||||||||
Settlement | ( | ( | |||||||||||||||||||||||||||||||||
Net periodic pension (benefit) cost | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
Six Months Ended | |||||||||||||||||||||||||||||||||||
(In thousands) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||
Domestic Plans | Foreign Plans | Total | |||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Recognized actuarial gain(1) | ( | ( | |||||||||||||||||||||||||||||||||
Settlement | ( | ( | |||||||||||||||||||||||||||||||||
Net periodic pension (benefit) cost | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
(In thousands) | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBITDA | ( | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin % | % | % | % | % | |||||||||||||||||||||||||
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBITDA | ( | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin % | % | % | % | % | |||||||||||||||||||||||||
(In thousands) | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBITDA | ( | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin % | % | % | % | % | |||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBITDA | ( | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin % | % | % | % | % | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate(1) | Total | ||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate(1) | Total | ||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | ||||||||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | |||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | ||||||||||||||||||||||||||||||||
Merger-related and integration costs | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | % | % | ||||||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended June 30, 2022 excludes $ |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interests | ( | |||||||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense(1) | ||||||||||||||||||||||||||||||||
Merger-related and integration costs | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | % | % | ||||||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended June 30, 2021 excludes $ |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | ||||||||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | |||||||||||||||||||||||||||||||
Stock-based compensation expense(1) | ||||||||||||||||||||||||||||||||
Merger-related and integration costs | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | % | % | ||||||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the six months ended June 30, 2022 excludes $ |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interests | ( | |||||||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense(1) | ||||||||||||||||||||||||||||||||
Merger-related and integration costs | ||||||||||||||||||||||||||||||||
Net gain on divestitures | ( | ( | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | % | % | ||||||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the six months ended June 30, 2021 excludes $ |
Three Months Ended | |||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||
Cost of goods sold (excluding depreciation and amortization) | 78.3 | 79.0 | |||||||||
Selling, general and administrative expenses | 14.1 | 15.2 | |||||||||
Depreciation and amortization | 0.8 | 1.0 | |||||||||
Income from operations | 6.8 | 4.8 | |||||||||
Interest expense, net | 1.2 | 1.4 | |||||||||
Other expense (income), net | — | 0.1 | |||||||||
Income before income taxes | 5.6 | 3.3 | |||||||||
Provision for income taxes | 1.5 | 0.7 | |||||||||
Net income attributable to WESCO International, Inc. | 4.1 | 2.6 | |||||||||
Preferred stock dividends | 0.3 | 0.3 | |||||||||
Net income attributable to common stockholders | 3.8 | % | 2.3 | % |
Three Months Ended | Growth/(Decline) | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | Reported | Divestiture Impact | Foreign Exchange Impact | Workday Impact | Organic Sales Growth | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
EES | $ | 2,330,153 | $ | 1,923,011 | 21.2% | — | % | (1.9) | % | — | % | 23.1 | % | ||||||||||||||||||||||||||||
CSS | 1,601,997 | 1,461,120 | 9.6% | — | % | (1.9) | % | — | % | 11.5 | % | ||||||||||||||||||||||||||||||
UBS | 1,551,375 | 1,211,659 | 28.0% | — | % | (0.6) | % | — | % | 28.6 | % | ||||||||||||||||||||||||||||||
Total net sales | $ | 5,483,525 | $ | 4,595,790 | 19.3% | — | % | (1.6) | % | — | % | 20.9 | % |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Income from operations | $ | 221,506 | $ | 130,745 | $ | 162,428 | $ | (143,970) | $ | 370,709 | ||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Income from operations | $ | 153,740 | $ | 111,257 | $ | 94,693 | $ | (140,818) | $ | 218,872 |
Three Months Ended | |||||||||||
Adjusted SG&A Expenses: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Selling, general and administrative expenses | $ | 772,864 | $ | 699,581 | |||||||
Merger-related and integration costs | (13,427) | (37,720) | |||||||||
Adjusted selling, general and administrative expenses | $ | 759,437 | $ | 661,861 |
Three Months Ended | |||||||||||
Adjusted Income from Operations: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Income from operations | $ | 370,709 | $ | 218,872 | |||||||
Merger-related and integration costs | 13,427 | 37,720 | |||||||||
Accelerated trademark amortization | 3,672 | 5,049 | |||||||||
Adjusted income from operations | $ | 387,808 | $ | 261,641 |
Three Months Ended | |||||||||||
Adjusted Provision for Income Taxes: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Provision for income taxes | $ | 79,887 | $ | 32,800 | |||||||
Income tax effect of adjustments to income from operations(1) | 4,531 | 10,381 | |||||||||
Adjusted provision for income taxes | $ | 84,418 | $ | 43,181 |
Three Months Ended | |||||||||||
Adjusted Earnings per Diluted Share: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands, except per share data) | |||||||||||
Adjusted income from operations | $ | 387,808 | $ | 261,641 | |||||||
Interest expense, net | 68,478 | 67,590 | |||||||||
Other expense (income), net | 1,195 | (802) | |||||||||
Adjusted income before income taxes | 318,135 | 194,853 | |||||||||
Adjusted provision for income taxes | 84,418 | 43,181 | |||||||||
Adjusted net income | 233,717 | 151,672 | |||||||||
Net income attributable to noncontrolling interests | 443 | 89 | |||||||||
Adjusted net income attributable to WESCO International, Inc. | 233,274 | 151,583 | |||||||||
Preferred stock dividends | 14,352 | 14,352 | |||||||||
Adjusted net income attributable to common stockholders | $ | 218,922 | $ | 137,231 | |||||||
Diluted shares | 52,220 | 51,994 | |||||||||
Adjusted earnings per diluted share | $ | 4.19 | $ | 2.64 |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 222,758 | $ | 130,639 | $ | 161,784 | $ | (308,827) | $ | 206,354 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 151 | — | — | 292 | 443 | |||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | 14,352 | 14,352 | |||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 79,887 | 79,887 | |||||||||||||||||||||||||||
Interest expense, net | — | — | — | 68,478 | 68,478 | |||||||||||||||||||||||||||
Depreciation and amortization | 11,198 | 17,855 | 5,670 | 11,143 | 45,866 | |||||||||||||||||||||||||||
EBITDA | $ | 234,107 | $ | 148,494 | $ | 167,454 | $ | (134,675) | $ | 415,380 | ||||||||||||||||||||||
Other (income) expense, net | (1,403) | 106 | 644 | 1,848 | 1,195 | |||||||||||||||||||||||||||
Stock-based compensation expense(1) | 2,745 | 1,442 | 937 | 9,334 | 14,458 | |||||||||||||||||||||||||||
Merger-related and integration costs | — | — | — | 13,427 | 13,427 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 235,449 | $ | 150,042 | $ | 169,035 | $ | (110,066) | $ | 444,460 | ||||||||||||||||||||||
Adjusted EBITDA margin % | 10.1% | 9.4% | 10.9% | 8.1% | ||||||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended June 30, 2022 excludes $1.4 million as such amount is included in merger-related and integration costs. | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 153,976 | $ | 111,046 | $ | 94,688 | $ | (254,867) | $ | 104,843 | ||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interests | (76) | — | — | 165 | 89 | |||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | 14,352 | 14,352 | |||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 32,800 | 32,800 | |||||||||||||||||||||||||||
Interest expense, net | — | — | — | 67,590 | 67,590 | |||||||||||||||||||||||||||
Depreciation and amortization | 12,781 | 19,241 | 5,466 | 9,216 | 46,704 | |||||||||||||||||||||||||||
EBITDA | $ | 166,681 | $ | 130,287 | $ | 100,154 | $ | (130,744) | $ | 266,378 | ||||||||||||||||||||||
Other (income) expense, net | (160) | 211 | 5 | (858) | (802) | |||||||||||||||||||||||||||
Stock-based compensation expense(1) | 1,434 | 641 | 543 | 3,331 | 5,949 | |||||||||||||||||||||||||||
Merger-related and integration costs | — | — | — | 37,720 | 37,720 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 167,955 | $ | 131,139 | $ | 100,702 | $ | (90,551) | $ | 309,245 | ||||||||||||||||||||||
Adjusted EBITDA margin % | 8.7 | % | 9.0 | % | 8.3 | % | 6.7 | % | ||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended June 30, 2021 excludes $1.3 million as such amount is included in merger-related and integration costs. |
Six Months Ended | |||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||
Cost of goods sold (excluding depreciation and amortization) | 78.5 | 79.4 | |||||||||
Selling, general and administrative expenses | 14.3 | 15.5 | |||||||||
Depreciation and amortization | 0.9 | 1.0 | |||||||||
Income from operations | 6.3 | 4.1 | |||||||||
Interest expense, net | 1.3 | 1.6 | |||||||||
Other expense (income), net | — | — | |||||||||
Income before income taxes | 5.0 | 2.5 | |||||||||
Provision for income taxes | 1.1 | 0.4 | |||||||||
Net income attributable to WESCO International, Inc. | 3.9 | 2.1 | |||||||||
Preferred stock dividends | 0.3 | 0.4 | |||||||||
Net income attributable to common stockholders | 3.6 | % | 1.7 | % |
Six Months Ended | Growth/(Decline) | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | Reported | Divestiture Impact | Foreign Exchange Impact | Workday Impact | Organic Sales Growth | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
EES | $ | 4,420,112 | $ | 3,643,824 | 21.3 | % | (0.2) | % | (1.2) | % | 0.8 | % | 21.9 | % | |||||||||||||||||||||||||||
CSS | 3,036,172 | 2,711,735 | 12.0 | % | — | % | (1.4) | % | 0.8 | % | 12.6 | % | |||||||||||||||||||||||||||||
UBS | 2,959,422 | 2,281,708 | 29.7 | % | (0.2) | % | (0.4) | % | 0.8 | % | 29.5 | % | |||||||||||||||||||||||||||||
Total net sales | $ | 10,415,706 | $ | 8,637,267 | 20.6 | % | (0.2) | % | (1.0) | % | 0.8 | % | 21.0 | % |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Income from operations | $ | 400,277 | $ | 234,776 | $ | 292,376 | $ | (272,691) | $ | 654,738 | ||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Income from operations | $ | 253,852 | $ | 185,220 | $ | 181,723 | $ | (268,672) | $ | 352,123 |
Six Months Ended | |||||||||||
Adjusted SG&A Expenses: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Selling, general and administrative expenses | $ | 1,490,962 | $ | 1,336,157 | |||||||
Merger-related and integration costs | (38,990) | (84,042) | |||||||||
Net gain on divestitures | — | 8,927 | |||||||||
Adjusted selling, general and administrative expenses | $ | 1,451,972 | $ | 1,261,042 |
Six Months Ended | |||||||||||
Adjusted Income from Operations: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Income from operations | $ | 654,738 | $ | 352,123 | |||||||
Merger-related and integration costs | 38,990 | 84,042 | |||||||||
Accelerated trademark amortization | 8,995 | 5,049 | |||||||||
Net gain on divestitures | — | (8,927) | |||||||||
Adjusted income from operations | $ | 702,723 | $ | 432,287 |
Six Months Ended | |||||||||||
Adjusted Provision for Income Taxes: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands) | |||||||||||
Provision for income taxes | $ | 117,541 | $ | 39,331 | |||||||
Income tax effect of adjustments to income from operations(1) | 12,614 | 19,348 | |||||||||
Adjusted provision for income taxes | $ | 130,155 | $ | 58,679 |
Six Months Ended | |||||||||||
Adjusted Earnings per Diluted Share: | June 30, 2022 | June 30, 2021 | |||||||||
(In thousands, except per share data) | |||||||||||
Adjusted income from operations | $ | 702,723 | $ | 432,287 | |||||||
Interest expense, net | 132,098 | 137,963 | |||||||||
Other expense (income), net | 2,319 | (3,609) | |||||||||
Adjusted income before income taxes | 568,306 | 297,933 | |||||||||
Adjusted provision for income taxes | 130,155 | 58,679 | |||||||||
Adjusted net income | 438,151 | 239,254 | |||||||||
Net income attributable to noncontrolling interests | 831 | 65 | |||||||||
Adjusted net income attributable to WESCO International, Inc. | 437,320 | 239,189 | |||||||||
Preferred stock dividends | 28,704 | 28,704 | |||||||||
Adjusted net income attributable to common stockholders | $ | 408,616 | $ | 210,485 | |||||||
Diluted shares | 52,229 | 51,875 | |||||||||
Adjusted earnings per diluted share | $ | 7.82 | $ | 4.06 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 401,493 | $ | 234,326 | $ | 291,766 | $ | (554,340) | $ | 373,245 | ||||||||||||||||||||||
Net income attributable to noncontrolling interests | 361 | — | — | 470 | 831 | |||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | 28,704 | 28,704 | |||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 117,541 | 117,541 | |||||||||||||||||||||||||||
Interest expense, net | — | — | — | 132,098 | 132,098 | |||||||||||||||||||||||||||
Depreciation and amortization | 23,222 | 35,986 | 11,456 | 22,182 | 92,846 | |||||||||||||||||||||||||||
EBITDA | $ | 425,076 | $ | 270,312 | $ | 303,222 | $ | (253,345) | $ | 745,265 | ||||||||||||||||||||||
Other (income) expense, net | (1,577) | 450 | 610 | 2,836 | 2,319 | |||||||||||||||||||||||||||
Stock-based compensation expense(1) | 4,366 | 2,319 | 1,563 | 13,760 | 22,008 | |||||||||||||||||||||||||||
Merger-related and integration costs | — | — | — | 38,990 | 38,990 | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 427,865 | $ | 273,081 | $ | 305,395 | $ | (197,759) | $ | 808,582 | ||||||||||||||||||||||
Adjusted EBITDA margin % | 9.7 | % | 9.0 | % | 10.3 | % | 7.8 | % | ||||||||||||||||||||||||
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the six months ended June 30, 2022 excludes $2.7 million as such amount is included in merger-related and integration costs. | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(In thousands) | EES | CSS | UBS | Corporate | Total | |||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 254,606 | $ | 184,639 | $ | 181,701 | $ | (471,277) | $ | 149,669 | ||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interests | (151) | — | — | 216 | 65 | |||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | 28,704 | 28,704 | |||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 39,331 | 39,331 | |||||||||||||||||||||||||||
Interest expense, net | — | — | — | 137,963 | 137,963 | |||||||||||||||||||||||||||
Depreciation and amortization | 23,344 | 35,534 | 10,676 | 18,359 | 87,913 | |||||||||||||||||||||||||||
EBITDA | $ | 277,799 | $ | 220,173 | $ | 192,377 | $ | (246,704) | $ | 443,645 | ||||||||||||||||||||||
Other (income) expense, net | (603) | 581 | 22 | (3,609) | (3,609) | |||||||||||||||||||||||||||
Stock-based compensation expense(2) | 2,785 | 1,066 | 883 | 5,908 | 10,642 | |||||||||||||||||||||||||||
Merger-related and integration costs | — | — | — | 84,042 | 84,042 | |||||||||||||||||||||||||||
Net gain on divestitures | — | — | (8,927) | — | (8,927) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 279,981 | $ | 221,820 | $ | 184,355 | $ | (160,363) | $ | 525,793 | ||||||||||||||||||||||
Adjusted EBITDA margin % | 7.7 | % | 8.2 | % | 8.1 | % | 6.1 | % | ||||||||||||||||||||||||
(2) Stock-based compensation expense in the calculation of adjusted EBITDA for the six months ended June 30, 2021 excludes $2.5 million as such amount is included in merger-related and integration costs. |
Twelve Months Ended | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
(In millions of dollars, except ratio) | |||||||||||
Net income attributable to common stockholders | $ | 631.5 | $ | 408.0 | |||||||
Net income attributable to noncontrolling interests | 1.8 | 1.0 | |||||||||
Preferred stock dividends | 57.4 | 57.4 | |||||||||
Provision for income taxes | 193.7 | 115.5 | |||||||||
Interest expense, net | 262.2 | 268.1 | |||||||||
Depreciation and amortization | 203.5 | 198.5 | |||||||||
EBITDA | 1,350.1 | 1,048.5 | |||||||||
Other income, net(1) | (42.2) | (48.1) | |||||||||
Stock-based compensation expense | 37.1 | 25.7 | |||||||||
Merger-related and integration costs | 113.4 | 158.5 | |||||||||
Net gain on divestitures | — | (8.9) | |||||||||
Adjusted EBITDA | $ | 1,458.4 | $ | 1,175.7 | |||||||
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Short-term debt and current portion of long-term debt, net | $ | 70.6 | $ | 9.5 | |||||||
Long-term debt, net | 5,039.9 | 4,701.5 | |||||||||
Debt discount and debt issuance costs(2) | 64.1 | 70.6 | |||||||||
Fair value adjustments to Anixter Senior Notes due 2023 and 2025(2) | (0.6) | (0.9) | |||||||||
Total debt | 5,174.0 | 4,780.7 | |||||||||
Less: Cash and cash equivalents | 236.8 | 212.6 | |||||||||
Total debt, net of cash | $ | 4,937.2 | $ | 4,568.1 | |||||||
Financial leverage ratio | 3.4 | 3.9 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs | |||||||||||||||||||
April 1 – April 30, 2022 | 2,132 | $ | 128.03 | — | $ | — | |||||||||||||||||
May 1 – May 31, 2022 | 870 | $ | 140.22 | — | $ | — | |||||||||||||||||
June 1 – June 30, 2022 | 207 | $ | 132.29 | — | $ | — | |||||||||||||||||
Total | 3,209 | $ | 131.61 | — | $ | — |
WESCO International, Inc. | ||||||||
(Registrant) |
August 5, 2022 | By: | /s/ David S. Schulz | ||||||
(Date) | David S. Schulz | |||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
August 5, 2022 | By: | /s/ Matthew S. Kulasa | ||||||
(Date) | Matthew S. Kulasa | |||||||
Senior Vice President, Corporate Controller and Chief Accounting Officer | ||||||||
(Principal Accounting Officer) |
Date: | August 5, 2022 | By: | /s/ John J. Engel | ||||||||||||||
John J. Engel | |||||||||||||||||
Chairman, President and Chief Executive Officer |
Date: | August 5, 2022 | By: | /s/ David S. Schulz | ||||||||||||||
David S. Schulz | |||||||||||||||||
Executive Vice President and Chief Financial Officer |
Date: | August 5, 2022 | By: | /s/ John J. Engel | ||||||||||||||
John J. Engel | |||||||||||||||||
Chairman, President and Chief Executive Officer |
Date: | August 5, 2022 | By: | /s/ David S. Schulz | ||||||||||||||
David S. Schulz | |||||||||||||||||
Executive Vice President and Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (parenthetical items) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Accounts Receivable, Allowance for Credit Loss, Current | $ 46,591 | $ 41,723 |
Accumulated depreciation | 395,776 | 365,345 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 64,059 | $ 70,572 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Gross Profit [Abstract] | ||||
Revenues | $ 5,483,525 | $ 4,595,790 | $ 10,415,706 | $ 8,637,267 |
Cost of goods sold | 4,294,086 | 3,630,633 | 8,177,160 | 6,861,074 |
Operating Expenses [Abstract] | ||||
Selling, general and administrative expense | 772,864 | 699,581 | 1,490,962 | 1,336,157 |
Depreciation and amortization | 45,866 | 46,704 | 92,846 | 87,913 |
Income from operations | 370,709 | 218,872 | 654,738 | 352,123 |
Nonoperating Income (Expense) | 68,478 | 67,590 | 132,098 | 137,963 |
Other Nonoperating Income (Expense) | 1,195 | (802) | 2,319 | (3,609) |
Income before income taxes | 301,036 | 152,084 | 520,321 | 217,769 |
Provision for income taxes | 79,887 | 32,800 | 117,541 | 39,331 |
Net income | 221,149 | 119,284 | 402,780 | 178,438 |
Net (loss) income attributable to noncontrolling interest | 443 | 89 | 831 | 65 |
Net income attributable to WESCO International, Inc. | 220,706 | 119,195 | 401,949 | 178,373 |
Preferred Stock Dividends, Income Statement Impact | 14,352 | 14,352 | 28,704 | 28,704 |
Net Income (Loss) Available to Common Stockholders, Basic | 206,354 | 104,843 | 373,245 | 149,669 |
Comprehensive Income: | ||||
Foreign currency translation adjustment | (79,373) | 21,219 | (47,733) | 38,060 |
Comprehensive income attributable to WESCO International, Inc. | $ 126,981 | $ 126,062 | $ 325,512 | $ 187,729 |
Basic (in dollars per share) | $ 4.07 | $ 2.09 | $ 7.37 | $ 2.98 |
Diluted (in dollars per share) | $ 3.95 | $ 2.02 | $ 7.15 | $ 2.89 |
ORGANIZATION |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | WESCO International, Inc. ("Wesco International") and its subsidiaries (collectively, “Wesco” or the "Company"), headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services and supply chain solutions. |
ACCOUNTING POLICIES |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Wesco have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). The unaudited condensed consolidated financial information should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in WESCO International, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 25, 2022. The Condensed Consolidated Balance Sheet at December 31, 2021 was derived from the audited Consolidated Financial Statements as of that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. The unaudited Condensed Consolidated Balance Sheet as of June 30, 2022, the unaudited Condensed Consolidated Statements of Income and Comprehensive Income, the unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2022, and 2021, and the unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022, and 2021, respectively, in the opinion of management, have been prepared on the same basis as the audited Consolidated Financial Statements and include all adjustments necessary for the fair statement of the results of the interim periods presented herein. All adjustments reflected in the unaudited condensed consolidated financial information are of a normal recurring nature unless indicated. The results for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. Recently Adopted and Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted this ASU during the first quarter of 2022 in connection with amending Wesco's credit facilities, as disclosed in Note 7, "Debt". The replacement of London Interbank Offered Rate ("LIBOR") and the related adoption of the optional guidance under this accounting standard did not have a material impact on the Company's consolidated financial statements and notes thereto. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Management is currently evaluating the impact that the adoption of this accounting standard will have on its consolidated financial statements and notes thereto. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to Wesco’s financial position, results of operations or cash flows.
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New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted and Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted this ASU during the first quarter of 2022 in connection with amending Wesco's credit facilities, as disclosed in Note 7, "Debt". The replacement of London Interbank Offered Rate ("LIBOR") and the related adoption of the optional guidance under this accounting standard did not have a material impact on the Company's consolidated financial statements and notes thereto.
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REVENUE (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer | 3. REVENUE Wesco distributes products and provides services to customers globally in various end markets within its business segments. The segments, which consist of EES, CSS and UBS, operate in the United States, Canada and various other international countries. The following tables disaggregate Wesco’s net sales by segment and geography for the periods presented:
(1) No individual country's net sales are greater than 10% of total net sales. (2) Wesco attributes revenues from external customers to individual countries on the basis of point of sale. Due to the terms of certain contractual arrangements, Wesco bills or receives payment from its customers in advance of satisfying the respective performance obligation. Such advance billings or payments are recorded as deferred revenue and recognized as revenue when the performance obligation has been satisfied and control has transferred to the customer, which is generally upon shipment. Deferred revenue is usually recognized within a year or less from the date of the advance billing or payment. At June 30, 2022 and December 31, 2021, $32.7 million and $35.5 million, respectively, of deferred revenue was recorded as a component of other current liabilities in the Condensed Consolidated Balance Sheets. The Company also has certain long-term contractual arrangements where revenue is recognized over time based on the cost-to-cost input method. As of June 30, 2022 and December 31, 2021, the Company had contract assets of $36.0 million and $33.4 million, respectively, resulting from arrangements where the amount of revenue recognized exceeded the amount billed to the customer. Contract assets are recorded in the Condensed Consolidated Balance Sheets as a component of prepaid expenses and other current assets. Wesco’s revenues are adjusted for variable consideration, which includes customer volume rebates, returns and discounts. Wesco measures variable consideration by estimating expected outcomes using analysis and inputs based upon historical data, as well as current and forecasted information. Variable consideration is reviewed by management on a monthly basis and revenue is adjusted accordingly. Variable consideration reduced revenue for the three months ended June 30, 2022 and 2021 by approximately $102.3 million and $112.4 million, respectively, and by approximately $217.5 million and $217.8 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and December 31, 2021, the Company's estimated product return obligation was $39.3 million and $38.8 million, respectively. Billings to customers for shipping and handling are recognized in net sales. Wesco has elected to recognize shipping and handling costs as a fulfillment cost. Shipping and handling costs recorded as a component of selling, general and administrative expenses totaled $76.5 million and $62.7 million for the three months ended June 30, 2022 and 2021, respectively, and $144.1 million and $116.0 million for the six months ended June 30, 2022 and 2021, respectively
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GOODWILL (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure | Goodwill The following table sets forth the changes in the carrying value of goodwill:
Intangible Assets The components of intangible assets are as follows:
(1) Excludes the original cost and related accumulated amortization of fully-amortized intangible assets. Amortization expense related to intangible assets totaled $24.7 million and $27.1 million for the three months ended June 30, 2022 and 2021, respectively, and $50.4 million and $48.7 million for the six months ended June 30, 2022 and 2021, respectively. The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | Wesco’s stock-based employee compensation awards are comprised of stock options, stock-settled stock appreciation rights, restricted stock units and performance-based awards. Compensation cost for all stock-based awards is measured at fair value on the date of grant and compensation cost is recognized, net of estimated forfeitures, over the service period for awards expected to vest. The fair value of stock options and stock-settled stock appreciation rights is determined using the Black-Scholes model. The fair value of restricted stock units and performance-based awards with performance conditions is determined by the grant-date closing price of Wesco’s common stock. The forfeiture assumption is based on Wesco’s historical employee behavior that is reviewed on an annual basis. No dividends are assumed. For stock options and stock-settled stock appreciation rights that are exercised, and for restricted stock units and performance-based awards that vest, shares are issued out of Wesco's outstanding common stock. Stock options and stock-settled stock appreciation rights vest ratably over a three-year period and terminate on the tenth anniversary of the grant date unless terminated sooner under certain conditions. Restricted stock unit awards granted in February 2020 and prior vest based on a minimum time period of three years. The special award described below vests in tranches. Restricted stock units awarded in 2022 and 2021 vest ratably over a three-year period on each of the first, second and third anniversaries of the grant date. Vesting of performance-based awards is based on a three-year performance period, and the number of shares earned, if any, depends on the attainment of certain performance levels. Outstanding awards would vest upon the consummation of a change in control transaction with performance-based awards vesting at the target level. On July 2, 2020, a special award of restricted stock units was granted to certain officers of the Company. These awards vest in tranches of 30% on each of the first and second anniversaries of the grant date and 40% on the third anniversary of the grant date, subject, in each case, to continued employment through the applicable anniversary date. Performance-based awards granted in 2022, 2021 and 2020 are based on two equally-weighted performance measures: the three-year average growth rate of Wesco's net income attributable to common stockholders and the three-year cumulative return on net assets. These awards are accounted for as awards with performance conditions; compensation cost is recognized over the performance period based upon Wesco's determination of whether it is probable that the performance targets will be achieved. During the three and six months ended June 30, 2022 and 2021, Wesco granted the following stock options, stock-settled stock appreciation rights, restricted stock units and performance-based awards at the following weighted-average fair values:
The fair values of stock options and stock-settled stock appreciation rights, as disclosed in the table above, were estimated using the following weighted-average assumptions in the respective periods:
The risk-free interest rate is based on the U.S. Treasury Daily Yield Curve as of the grant date. The expected life is based on historical exercise experience and the expected volatility is based on the volatility of the Company's daily stock price over the expected life preceding the grant date of the award. The following table sets forth a summary of stock options for the six months ended June 30, 2022:
The following table sets forth a summary of stock-settled stock appreciation rights for the six months ended June 30, 2022:
For the six months ended June 30, 2022, the aggregate intrinsic value of stock-settled stock appreciation rights exercised during such period was $3.9 million. The following table sets forth a summary of time-based restricted stock units for the six months ended June 30, 2022:
The following table sets forth a summary of performance-based awards for the six months ended June 30, 2022:
Wesco recognized $15.8 million and $7.2 million of non-cash stock-based compensation expense for the three months ended June 30, 2022 and 2021, respectively, and $24.7 million and $13.2 million for the six months ended June 30, 2022 and 2021, respectively, which is included in selling, general and administrative expenses for all such periods. As of June 30, 2022, there was $71.4 million of total unrecognized compensation expense related to non-vested stock-based compensation arrangements for all awards previously made of which approximately $22.1 million is expected to be recognized over the remainder of 2022, $32.1 million in 2023, $15.4 million in 2024 and $1.8 million in 2025.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the periods. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average common shares and common share equivalents outstanding during the periods. The dilutive effect of common share equivalents is considered in the diluted earnings per share computation using the treasury stock method, which includes consideration of equity awards. The following table sets forth the details of basic and diluted earnings per share:
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DEBT (Notes) |
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Debt Disclosure [Text Block] | 7. DEBT The following table sets forth Wesco's outstanding indebtedness:
(1) As of June 30, 2022, short-term debt and current portion of long-term debt includes the $58.6 million aggregate principal amount of the Company's 5.50% Anixter Senior Notes due 2023, which mature on March 1, 2023. Accounts Receivable Securitization Facility On March 1, 2022, WESCO Distribution, Inc. (“Wesco Distribution”) amended its accounts receivable securitization facility (the “Receivables Facility”) pursuant to the terms and conditions of a Fourth Amendment to Fifth Amended and Restated Receivables Purchase Agreement (the “Receivables Amendment”), by and among WESCO Receivables Corp., Wesco Distribution, the various purchaser groups from time to time party thereto and PNC Bank, National Association, as administrator. The Receivables Amendment modified the receivables purchase agreement entered into on June 22, 2020. The Receivables Amendment, among other things, (i) increased the purchase limit under the Receivables Facility from $1,300 million to $1,400 million, (ii) increased the aggregate commitment from $1,500 million to $1,750 million under an accordion feature that permits requests to increase the purchase limit, and (iii) extended the maturity date from June 1, 2024 to March 1, 2025. Additionally, the Receivables Amendment replaced the London Inter-Bank Offered Rate-based (“LIBOR”) interest rate option with Secured Overnight Financing Rate-based (“SOFR”) interest rate options, including term SOFR and daily simple SOFR, and decreased the interest rate spread from 1.15% to 1.10%. The commitment fee of the Receivables Facility remained unchanged. Under the Receivables Facility, Wesco Distribution sells, on a continuous basis, an undivided interest in all domestic accounts receivable to Wesco Receivables, a wholly owned special purpose entity (the “SPE”). The SPE sells, without recourse, a senior undivided interest in the receivables to financial institutions for cash while maintaining a subordinated undivided interest in the receivables, in the form of overcollateralization. Since Wesco Distribution maintains control of the transferred receivables, the transfers do not qualify for “sale” treatment. As a result, the transferred receivables remain on the balance sheet, and Wesco recognizes the related secured borrowing. Wesco Distribution has agreed to continue servicing the sold receivables for the third-party conduits and financial institutions at market rates; accordingly, no servicing asset or liability has been recorded. Revolving Credit Facility On March 1, 2022, Wesco Distribution amended its revolving credit facility (the “Revolving Credit Facility”) pursuant to the terms and conditions of a Second Amendment to Fourth Amended and Restated Credit Agreement (the “Revolver Amendment”), by and among Wesco Distribution, as the borrower representative, the other U.S. borrowers party thereto, WESCO Distribution Canada LP, the other Canadian borrowers party thereto, WESCO International, the lenders party thereto and Barclays Bank PLC, as the administrative agent. The Revolver Amendment modified the revolving credit facility entered into on June 22, 2020. The Revolver Amendment, among other things, (i) increased the revolving commitments under the Revolving Credit Facility from $1,200 million to $1,350 million, (ii) increased the sub-facility for loans denominated in Canadian dollars from $500 million to $550 million, (iii) increased the capacity to request increases in the aggregate revolving commitments from $400 million to $650 million, (iv) modified certain negative covenants to provide for additional flexibility, and (v) extended the maturity date from June 22, 2025 to March 1, 2027. Additionally, the Revolver Amendment replaced the LIBOR-based interest rate option with SOFR-based interest rate options, including term SOFR and daily simple SOFR. The applicable interest rate for borrowings under the Revolving Credit Facility, as amended, includes interest rate spreads based on available borrowing capacity that range from 1.00% to 1.50% for SOFR-based borrowings and from 0.00% to 0.50% for prime rate-based borrowings
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EMPLOYEE BENEFIT PLANS (Notes) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | 8. EMPLOYEE BENEFIT PLANS Defined Contribution Plans Wesco Distribution sponsors a defined contribution retirement savings plan for the majority of its U.S. employees (the "WESCO Distribution, Inc. Retirement Savings Plan"). Effective January 1, 2022, the defined contribution plan covering all of Anixter Inc.'s non-union U.S. employees (the "Anixter Inc. Employee Savings Plan") was merged with and into the WESCO Distribution, Inc. Retirement Savings Plan (the "U.S. Defined Contribution Plan Merger"). On December 31, 2021, participant account balances were transferred from the Anixter Inc. Employee Savings Plan to the WESCO Distribution, Inc. Retirement Savings Plan. In connection with the U.S. Defined Contribution Plan Merger, the WESCO Distribution, Inc. Retirement Savings Plan was amended to change the employer matching contribution at an amount equal to 100% of a participant's eligible elective deferrals up to 3% of the participant's eligible compensation and 50% of the next 4% of eligible compensation, and to eliminate discretionary employer contributions. WESCO Distribution Canada LP, a wholly-owned subsidiary of the Company, sponsors a defined contribution plan covering the current full-time employees of WESCO Distribution Canada LP and part-time employees meeting certain requirements for continuous service, earnings and minimum hours of employment (the "Wesco Canadian Defined Contribution Plan"). Effective January 1, 2022, the defined contribution plan for certain employees of Anixter Canada Inc. and Anixter Power Solutions Canada Inc. (the "Anixter Canadian Defined Contribution Plan") was merged with and into an amended Wesco Canadian Defined Contribution Plan. During the first quarter of 2022, participant account balances were transferred from the Anixter Canadian Defined Contribution Plan to the amended Wesco Canadian Defined Contribution Plan. The amended Wesco Canadian Defined Contribution Plan provides a core employer contribution of 3% of a participant's eligible compensation, plus a matching contribution equal to 50% of a participant's elective contributions up to 4% of eligible compensation (for a maximum total employer contribution equal to 5%). The amended Wesco Canadian Defined Contribution Plan also requires employees of EECOL Electric Corp. hired on or after January 1, 2022 to join this Canadian defined contribution plan, and permits enrollment for those not participating in the defined benefit plan described below. Wesco incurred charges of $14.9 million and $16.1 million for the three months ended June 30, 2022 and 2021, respectively, and $33.0 million and $32.7 million for the six months ended June 30, 2022 and 2021, respectively, for all defined contribution plans. Deferred Compensation Plans Wesco Distribution sponsors a non-qualified deferred compensation plan (the "Wesco Deferred Compensation Plan") that permits select employees to make pre-tax deferrals of salary and bonus. Employees have the option to transfer balances allocated to their accounts in the Wesco Deferred Compensation Plan into any of the available investment options. The Wesco Deferred Compensation Plan is an unfunded plan. As of June 30, 2022 and December 31, 2021, the Company's obligation under the Wesco Deferred Compensation Plan was $20.1 million and $20.9 million, respectively, which is included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets. Defined Benefit Plans Wesco sponsors a contributory defined benefit plan covering substantially all Canadian employees of EECOL Electric Corp., a wholly-owned subsidiary of the Company (the "EECOL Plan") and a Supplemental Executive Retirement Plan for certain executives of EECOL Electric Corp. (the "EECOL SERP"). Anixter Inc. sponsors the Anixter Inc. Pension Plan, which was closed to entrants first hired or rehired on or after July 1, 2015, and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together with the "EECOL Plan" and "EECOL SERP", the "Foreign Plans"). The majority of the Anixter defined benefit pension plans are non-contributory, and with the exception of the U.S. and Canada, cover substantially all full-time employees in their respective countries. Retirement benefits are provided based on compensation as defined in each of the plan agreements. The Anixter Inc. Pension Plan is funded as required by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Service. With the exception of the EECOL SERP, which is an unfunded plan, the Foreign Plans are funded as required by applicable foreign laws. During the fourth quarter of 2021, the Company adopted certain plan amendments to: (i) freeze the benefits provided under the Anixter Inc. Pension Plan effective December 31, 2021, (ii) close participation in the EECOL Plan effective December 31, 2021, and (iii) freeze the benefit accruals under the Pension Plan for Employees of Anixter Canada Inc., the EECOL Plan and the EECOL SERP effective December 31, 2023. The Company expects to contribute approximately $10.8 million to its Foreign Plans in 2022, of which approximately $8.0 million was contributed during the six months ended June 30, 2022. The Company does not expect to make a contribution to its domestic qualified pension plan in 2022 due to its overfunded status. The following tables set forth the components of net periodic pension (benefit) cost for the Company's defined benefit plans:
(1) For the three and six months ended June 30, 2022 and 2021, no material amounts were reclassified from accumulated other comprehensive income into net income. The service cost of $2.1 million and $4.1 million for the three months ended June 30, 2022 and 2021, respectively, and $4.3 million and $8.1 million for the six months ended June 30, 2022 and 2021, respectively, is reported as a component of selling, general and administrative expenses. The other components of net periodic pension (benefit) cost totaling net benefits of $3.5 million and $4.2 million for the three months ended June 30, 2022 and 2021, respectively, and $7.1 million and $8.2 million for the six months ended June 30, 2022 and 2021, respectively, are presented as components of other non-operating income ("other expense (income), net"). Other Benefits Prior to its acquisition by Wesco on June 22, 2020, Anixter granted restricted stock units in the ordinary course of business to its employees and directors. These awards, for which vesting did not accelerate solely as a result of the Company's merger with Anixter, were converted into cash-only settled Wesco phantom stock units, which vest ratably over a 3-year period. As of June 30, 2022 and December 31, 2021, the estimated fair value of these awards was $9.1 million and $22.7 million, respectively. As of June 30, 2022, the Company's liability for these awards is $7.3 million which is included in accrued payroll and benefit costs in the Condensed Consolidated Balance Sheet. As of December 31, 2021, the Company's liability for these awards was $17.3 million, of which $10.9 million was included in accrued payroll and benefit costs and $6.4 million was a component of other noncurrent liabilities in the Condensed Consolidated Balance Sheet. The Company recognized a net gain associated with these awards of $0.4 million and $0.2 million for the three and six months ended June 30, 2022, respectively, which is recorded as a component of selling, general and administrative expenses. The Company recognized compensation expense associated with these awards of $0.6 million and $6.3 million for the three and six months ended June 30, 2021, respectively, which is reported as a component of selling, general and administrative expenses.
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Compensation Related Costs, General | Other Benefits Prior to its acquisition by Wesco on June 22, 2020, Anixter granted restricted stock units in the ordinary course of business to its employees and directors. These awards, for which vesting did not accelerate solely as a result of the Company's merger with Anixter, were converted into cash-only settled Wesco phantom stock units, which vest ratably over a 3-year period. As of June 30, 2022 and December 31, 2021, the estimated fair value of these awards was $9.1 million and $22.7 million, respectively. As of June 30, 2022, the Company's liability for these awards is $7.3 million which is included in accrued payroll and benefit costs in the Condensed Consolidated Balance Sheet. As of December 31, 2021, the Company's liability for these awards was $17.3 million, of which $10.9 million was included in accrued payroll and benefit costs and $6.4 million was a component of other noncurrent liabilities in the Condensed Consolidated Balance Sheet. The Company recognized a net gain associated with these awards of $0.4 million and $0.2 million for the three and six months ended June 30, 2022, respectively, which is recorded as a component of selling, general and administrative expenses. The Company recognized compensation expense associated with these awards of $0.6 million and $6.3 million for the three and six months ended June 30, 2021, respectively, which is reported as a component of selling, general and administrative expenses.
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FAIR VALUE (Notes) |
6 Months Ended |
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Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 9. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable, bank overdrafts, outstanding indebtedness, foreign currency forward contracts, and benefit plan assets. Except for benefit plan assets, outstanding indebtedness and foreign currency forward contracts, the carrying value of the Company’s remaining financial instruments approximates fair value. The assets of the Company's various defined benefit plans are primarily comprised of common/collective/pool funds (i.e., mutual funds). These funds are valued at the net asset value (NAV) of shares held in the underlying funds. Investments for which fair value is measured using the NAV per share practical expedient are not classified in the fair value hierarchy. The Company uses a market approach to determine the fair value of its debt instruments, utilizing quoted prices in active markets, interest rates and other relevant information generated by market transactions involving similar instruments. Therefore, the inputs used to measure the fair value of the Company's debt instruments are classified as Level 2 within the fair value hierarchy. The carrying value of Wesco's debt instruments with fixed interest rates was $2,881.0 million and $2,880.7 million as of June 30, 2022 and December 31, 2021, respectively. The estimated fair value of this debt was $2,872.6 million and $3,118.0 million as of June 30, 2022 and December 31, 2021, respectively. The reported carrying values of Wesco's other debt instruments, including those with variable interest rates, approximated their fair values as of June 30, 2022 and December 31, 2021. The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its earnings. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative offsets the impact of the underlying hedge. Its counterparties to foreign currency forward contracts have investment-grade credit ratings. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist that could affect the value of its derivatives. The Company does not hedge 100% of its foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing foreign currency forward contracts versus the movement of currencies, as well as fluctuations in the account balances throughout each reporting period. The fair value of foreign currency forward contracts is based on the difference between the contract rate and the current price of a forward contract with an equivalent remaining term. The fair value of foreign currency forward contracts is measured using observable market information. These inputs are considered Level 2 in the fair value hierarchy. At June 30, 2022 and December 31, 2021, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in other non-operating income (expense) in the Condensed Consolidated Statements of Income and Comprehensive Income offsetting the transaction gain (loss) recorded on foreign currency-denominated accounts. At June 30, 2022 and December 31, 2021, the gross and net notional amounts of foreign currency forward contracts outstanding were approximately $205.2 million and $188.6 million, respectively. While all of the Company's foreign currency forward contracts are subject to master netting arrangements with its counterparties, assets and liabilities related to these contracts are presented on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of assets and liabilities related to foreign currency forward contracts were immaterial.
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Derivatives and Fair Value | The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its earnings. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative offsets the impact of the underlying hedge. Its counterparties to foreign currency forward contracts have investment-grade credit ratings. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist that could affect the value of its derivatives. The Company does not hedge 100% of its foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing foreign currency forward contracts versus the movement of currencies, as well as fluctuations in the account balances throughout each reporting period. The fair value of foreign currency forward contracts is based on the difference between the contract rate and the current price of a forward contract with an equivalent remaining term. The fair value of foreign currency forward contracts is measured using observable market information. These inputs are considered Level 2 in the fair value hierarchy. At June 30, 2022 and December 31, 2021, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in other non-operating income (expense) in the Condensed Consolidated Statements of Income and Comprehensive Income offsetting the transaction gain (loss) recorded on foreign currency-denominated accounts. At June 30, 2022 and December 31, 2021, the gross and net notional amounts of foreign currency forward contracts outstanding were approximately $205.2 million and $188.6 million, respectively. While all of the Company's foreign currency forward contracts are subject to master netting arrangements with its counterparties, assets and liabilities related to these contracts are presented on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of assets and liabilities related to foreign currency forward contracts were immaterial.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | From time to time, a number of lawsuits and claims have been or may be asserted against the Company relating to the conduct of its business, including litigation relating to commercial, product and employment matters (including wage and hour). The outcome of any litigation cannot be predicted with certainty, and some lawsuits may be determined adversely to Wesco. However, management does not believe that the ultimate outcome of any such pending matters is likely to have a material adverse effect on Wesco's financial condition or liquidity, although the resolution in any fiscal period of one or more of these matters may have a material adverse effect on Wesco's results of operations for that period. |
INCOME TAXES |
6 Months Ended |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | The effective tax rate for the three and six months ended June 30, 2022 was 26.5% and 22.6%, respectively. The effective tax rate for the three and six months ended June 30, 2021 was 21.6% and 18.1%, respectively. Wesco’s effective tax rate typically differs from the federal statutory income tax rate due to the tax effect of intercompany financing, foreign tax rate differences, the U.S. taxes imposed on foreign income, nondeductible expenses and state income taxes. For the three months ended June 30, 2022 and 2021, the effective tax rate reflects discrete income tax benefits of $0.3 million and $3.4 million, respectively, resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the estimated annual effective tax rate by approximately 0.1 and 2.2 percentage points, respectively. For the six months ended June 30, 2022 and 2021, the effective tax rate reflects discrete income tax benefits of $13.4 million and $8.3 million, respectively, resulting from reductions to the valuation allowance recorded against foreign tax credit carryforwards, as well as the exercise and vesting of stock-based awards of $6.1 million and $4.5 million, respectively. These discrete income tax benefits reduced the estimated annual effective tax rate in such periods by approximately 3.7 and 5.9 percentage points, respectively. There have been no material adjustments to liabilities for uncertain tax positions since the last annual disclosure for the year ended December 31, 2021.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure | 12. BUSINESS SEGMENTS The Company has operating segments comprising three strategic business units consisting of EES, CSS and UBS. These operating segments are equivalent to the Company's reportable segments. The Company's chief operating decision maker evaluates the performance of its operating segments based primarily on net sales, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), and adjusted EBITDA margin percentage. The Company incurs corporate costs primarily related to treasury, tax, information technology, legal and other centralized functions. The Company also has various corporate assets. 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 either not allocated to the segments or reviewed on a segment basis. Corporate expenses and assets not directly identifiable with a reportable segment are reported in the tables below to reconcile the reportable segments to the consolidated financial statements.
The following table sets forth total assets by reportable segment for the periods presented:
(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 tables reconcile net income attributable to common stockholders to adjusted EBITDA and adjusted EBITDA margin % by segment, which are non-GAAP financial measures, for the periods presented:
Note: Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. Adjusted EBITDA is defined as EBITDA before foreign exchange and other non-operating expenses (income), non-cash stock-based compensation expense, merger-related and integration costs, and net gain on the divestiture of Wesco's legacy utility and data communications businesses in Canada. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENTS On August 2, 2022, Wesco Distribution amended its Receivables Facility to increase the purchase limit from $1,400 million to $1,525 million and to decrease the interest rate spread from 1.10% to 1.05%. Also on August 2, 2022, Wesco Distribution amended its Revolving Credit Facility to increase the revolving commitments from $1,350 million to $1,525 million and to increase the sub-facility for loans denominated in Canadian dollars from $550 million to $600 million.
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ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Wesco have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). The unaudited condensed consolidated financial information should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in WESCO International, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 25, 2022. The Condensed Consolidated Balance Sheet at December 31, 2021 was derived from the audited Consolidated Financial Statements as of that date, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. The unaudited Condensed Consolidated Balance Sheet as of June 30, 2022, the unaudited Condensed Consolidated Statements of Income and Comprehensive Income, the unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2022, and 2021, and the unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022, and 2021, respectively, in the opinion of management, have been prepared on the same basis as the audited Consolidated Financial Statements and include all adjustments necessary for the fair statement of the results of the interim periods presented herein. All adjustments reflected in the unaudited condensed consolidated financial information are of a normal recurring nature unless indicated. The results for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year.
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New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted and Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted this ASU during the first quarter of 2022 in connection with amending Wesco's credit facilities, as disclosed in Note 7, "Debt". The replacement of London Interbank Offered Rate ("LIBOR") and the related adoption of the optional guidance under this accounting standard did not have a material impact on the Company's consolidated financial statements and notes thereto.
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New Accounting Pronouncements, Policy | Recently Adopted and Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted this ASU during the first quarter of 2022 in connection with amending Wesco's credit facilities, as disclosed in Note 7, "Debt". The replacement of London Interbank Offered Rate ("LIBOR") and the related adoption of the optional guidance under this accounting standard did not have a material impact on the Company's consolidated financial statements and notes thereto. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Management is currently evaluating the impact that the adoption of this accounting standard will have on its consolidated financial statements and notes thereto. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to Wesco’s financial position, results of operations or cash flows.
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REVENUE (Tables) |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following tables disaggregate Wesco’s net sales by segment and geography for the periods presented:
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GOODWILL (Tables) |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 |
Jun. 30, 2022 |
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Goodwill [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets | The components of intangible assets are as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table sets forth the remaining estimated amortization expense for intangible assets for the next five years and thereafter:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | During the three and six months ended June 30, 2022 and 2021, Wesco granted the following stock options, stock-settled stock appreciation rights, restricted stock units and performance-based awards at the following weighted-average fair values:
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Share-based Payment Arrangement, Option and Stock Appreciation Rights, Activity [Table Text Block] | The following table sets forth a summary of stock-settled stock appreciation rights for the six months ended June 30, 2022:
For the six months ended June 30, 2022, the aggregate intrinsic value of stock-settled stock appreciation rights exercised during such period was $3.9 million.
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Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following table sets forth a summary of time-based restricted stock units for the six months ended June 30, 2022:
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Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table sets forth a summary of performance-based awards for the six months ended June 30, 2022:
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Stock Appreciation Rights (SARs) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair values of stock options and stock-settled stock appreciation rights, as disclosed in the table above, were estimated using the following weighted-average assumptions in the respective periods:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the details of basic and diluted earnings per share:
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DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table sets forth Wesco's outstanding indebtedness:
(1) As of June 30, 2022, short-term debt and current portion of long-term debt includes the $58.6 million aggregate principal amount of the Company's 5.50% Anixter Senior Notes due 2023, which mature on March 1, 2023.
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EMPLOYEE BENEFIT PLANS Schedule of Net Benefit Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The following tables set forth the components of net periodic pension (benefit) cost for the Company's defined benefit plans:
(1) For the three and six months ended June 30, 2022 and 2021, no material amounts were reclassified from accumulated other comprehensive income into net income.
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Segment Reporting (Tables) |
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Jun. 30, 2022 |
Jun. 30, 2022 |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The following tables set forth financial information by reportable segment for the periods presented:
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Schedule of Segment Reporting Information, by Segment | The following tables set forth financial information by reportable segment for the periods presented:
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Reconciliation of Assets from Segment to Consolidated | The following table sets forth total assets by reportable segment for the periods presented:
(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.
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REVENUE Deferred Revenue (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 32,700 | $ 35,500 |
Contract with Customer, Asset, before Allowance for Credit Loss | $ 36,000 | $ 33,400 |
REVENUE Shipping and Handling Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Cost of goods sold | $ 4,294,086 | $ 3,630,633 | $ 8,177,160 | $ 6,861,074 |
Shipping and Handling [Member] | ||||
Cost of goods sold | $ 76,500 | $ 62,700 | $ 144,100 | $ 116,000 |
REVENUE Variable Consideration (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenue, Methods, Inputs, and Assumptions Used [Abstract] | ||||
Revenue, Information Used to Assess Variable Consideration Constraint | 102.3 million | 112.4 million | 217.5 million | 217.8 million |
REVENUE Revenue, Performance Obligation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenue from Contract with Customer [Abstract] | ||||
Cost of goods sold | $ 4,294,086 | $ 3,630,633 | $ 8,177,160 | $ 6,861,074 |
SCHEDULE OF SHARE-BASED PAYMENT AWARD, VALUATION ASSUMPTIONS (Details) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2021
Rate
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Jun. 30, 2022
Rate
|
Jun. 30, 2021
Rate
|
|
Share-Based Payment Arrangement [Abstract] | |||
WESCO expected volatility | 42.00% | 43.00% | 41.00% |
Risk free interest rate | 1.30% | 1.90% | 0.80% |
Expected life (in years) | 7 years | 7 years | 7 years |
SUMMARY OF RESTRICTED STOCK UNITS (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance-based awards outstanding (in shares) | 955,319 | 955,319 | 974,162 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 66.73 | $ 66.73 | $ 53.48 | ||
Granted (in shares) | 0 | 6,861 | 224,946 | 307,583 | |
Granted, Weighted Average Fair Value (in dollars per share) | $ 0 | $ 86.91 | $ 122.11 | $ 77.12 | |
Vested (in shares) | (237,977) | ||||
Vested in Period, Weighted Average Fair Value (in dollars per share) | $ 64.36 | ||||
Forfeited (in shares) | (5,812) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 85.91 |
SUMMARY OF PERFORMANCE-BASED AWARDS (Details) - Performance Shares [Member] - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
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Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Unvested (in shares) | 346,582 | 346,582 | 380,819 | ||
Granted (in shares) | 0 | 3,020 | 83,991 | 122,812 | |
Vested (in shares) | (115,394) | ||||
Forfeited (in shares) | (2,834) | ||||
Unvested, Weighted Average Fair Value (in dollars per share) | $ 75.91 | $ 75.91 | $ 59.23 | ||
Granted, Weighted Average Fair Value (in dollars per share) | $ 0 | $ 86.91 | 122.09 | $ 76.76 | |
Vested in Period, Weighted Average Fair Value (in dollars per share) | 54.64 | ||||
Forfeited in Period, Weighted Average Fair Value (in dollars per share) | $ 76.80 |
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 15,800 | $ 7,200 | $ 24,734 | $ 13,179 | ||||
Total unrecognized compensation cost | $ 71,400 | $ 71,400 | ||||||
Forecast [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 22,100 | $ 1,800 | $ 15,400 | $ 32,100 |
EARNINGS PER SHARE (Details) - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Stock Appreciation Rights (SARs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 89,550 | 139,592 |
DEBT (Details) - USD ($) $ in Thousands |
2 Months Ended | 4 Months Ended | |
---|---|---|---|
Feb. 28, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Accounts Receivable Securitization Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,400,000 | $ 1,300,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.15% | 1.10% | |
Debt Instrument, Maturity Date | Jun. 01, 2024 | Mar. 01, 2025 | |
Accordion feature commitment | $ 1,750,000 | 1,500,000 | |
Long-term Debt | 1,375,000 | 1,270,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,350,000 | 1,200,000 | |
Debt Instrument, Maturity Date | Jun. 22, 2025 | Mar. 01, 2027 | |
Aggregate Revolving Commitment Capacity | $ 650,000 | 400,000 | |
Canadian Dollar Sub-Facility Commitment | 550,000 | 500,000 | |
Long-term Debt | $ 883,218 | 596,959 | |
Revolving Credit Facility | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 0.00% | |
Revolving Credit Facility | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 0.50% | |
5.50% Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 58,636 | 58,636 | |
6.00% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 4,173 | 4,173 | |
7.125% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 1,500,000 | 1,500,000 | |
7.250% Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,317,534 | $ 1,316,912 |
Defined Contribution Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Postemployment Benefits [Abstract] | ||||
Defined Contribution Plan, Cost | $ 14,900 | $ 16,100 | $ 33,000 | $ 32,700 |
Defined Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,116 | $ 4,079 | $ 4,271 | $ 8,067 |
Interest cost | 4,341 | 4,455 | 8,735 | 9,037 |
Expected return on plan assets | (7,671) | (8,692) | (15,445) | (17,447) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (183) | 106 | (368) | 207 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (19) | 0 | (19) |
Net periodic benefit cost | (1,397) | (71) | (2,807) | (155) |
Defined Benefit Plan, Service Cost | 2,116 | 4,079 | 4,271 | 8,067 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 8,000 | |||
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 763 | 0 | 1,527 |
Interest cost | 2,083 | 1,941 | 4,166 | 4,077 |
Expected return on plan assets | (3,497) | (4,327) | (6,994) | (8,827) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (19) | 0 | (19) |
Net periodic benefit cost | (1,414) | (1,642) | (2,828) | (3,242) |
Defined Benefit Plan, Service Cost | 0 | 763 | 0 | 1,527 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,116 | 3,316 | 4,271 | 6,540 |
Interest cost | 2,258 | 2,514 | 4,569 | 4,960 |
Expected return on plan assets | (4,174) | (4,365) | (8,451) | (8,620) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (183) | 106 | (368) | 207 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 17 | 1,571 | 21 | 3,087 |
Defined Benefit Plan, Service Cost | 2,116 | 3,316 | 4,271 | 6,540 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 10,800 | 10,800 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Nonoperating Gains (Losses) | $ (3,500) | $ (4,200) | $ (7,100) | $ (8,200) |
Compensation Related Costs, Postemployment Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Defined Contribution Plan Disclosure [Line Items] | |||||
Service cost | $ 2,116 | $ 4,079 | $ 4,271 | $ 8,067 | |
Interest cost | 4,341 | 4,455 | 8,735 | 9,037 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 7,671 | 8,692 | 15,445 | 17,447 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 183 | (106) | 368 | (207) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (1,397) | (71) | (2,807) | (155) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 8,000 | ||||
WESCODeferredCompensationPlanMember | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Deferred Compensation Liability, Classified, Noncurrent | 20,100 | 20,100 | $ 20,900 | ||
Pension Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other Nonoperating Gains (Losses) | (3,500) | (4,200) | (7,100) | (8,200) | |
UNITED STATES | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Service cost | 0 | 763 | 0 | 1,527 | |
Interest cost | 2,083 | 1,941 | 4,166 | 4,077 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 3,497 | 4,327 | 6,994 | 8,827 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 0 | 0 | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (1,414) | (1,642) | (2,828) | (3,242) | |
Foreign Plan | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Service cost | 2,116 | 3,316 | 4,271 | 6,540 | |
Interest cost | 2,258 | 2,514 | 4,569 | 4,960 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 4,174 | 4,365 | 8,451 | 8,620 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 183 | (106) | 368 | (207) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 17 | 1,571 | $ 21 | 3,087 | |
U.S. Defined Contribution Plan Merger | Defined Benefit Contribution Plan Initial Percent Of Employer Match Member | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||||
Defined Contribution Plan Employer Matching Contribution Percent | 3.00% | ||||
U.S. Defined Contribution Plan Merger | Defined Benefit Contribution Plan Additional Percent Of Employer Match | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||
Defined Contribution Plan Employer Matching Contribution Percent | 4.00% | ||||
Wesco Canadian Defined Contribution Plan | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||||
Wesco Canadian Defined Contribution Plan | Defined Benefit Contribution Plan Initial Percent Of Employer Match Member | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan Employer Matching Contribution Percent | 3.00% | ||||
Wesco Canadian Defined Contribution Plan | Defined Benefit Contribution Plan Additional Percent Of Employer Match | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||
Defined Contribution Plan Employer Matching Contribution Percent | 4.00% | ||||
Phantom Share Units (PSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Payment Arrangement, Expense | (400) | $ 600 | $ (200) | $ 6,300 | |
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | $ 9,100 | $ 9,100 | $ 22,700 |
Other Benefits (Details) - Phantom Share Units (PSUs) [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Compensation Related Costs [Abstract] | |||||
Deferred Compensation Cash-Based Arrangements, Liability, Current and Noncurrent | $ 7,300 | $ 7,300 | $ 17,300 | ||
Deferred Compensation Cash-Based Arrangements, Liability, Current | 10,900 | ||||
Deferred Compensation Cash-Based Arrangements, Liability, Classified, Noncurrent | 6,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | 9,100 | $ 9,100 | 22,700 | ||
Share-based Payment Arrangement, Expense | (400) | $ 600 | (200) | $ 6,300 | |
Deferred Compensation Cash-Based Arrangements, Liability, Current | 10,900 | ||||
Deferred Compensation Cash-Based Arrangements, Liability, Current and Noncurrent | 7,300 | 7,300 | 17,300 | ||
Deferred Compensation Cash-Based Arrangements, Liability, Classified, Noncurrent | $ 6,400 | ||||
Share-based Payment Arrangement, Expense | $ (400) | $ 600 | $ (200) | $ 6,300 |
FAIR VALUE (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative, Notional Amount | $ 205,200 | $ 188,600 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | 2,872,600 | 3,118,000 |
Long-term Debt | $ 2,881,000 | $ 2,880,700 |
INCOME TAXES (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 26.50% | 21.60% | 22.60% | 18.10% |
INCOME TAXES Income Tax Rates (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 26.50% | 21.60% | 22.60% | 18.10% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 10.00% | 220.00% | 370.00% | 590.00% |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 13,400 | $ 8,300 | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | $ 300 | $ 3,400 | $ 6,100 | $ 4,500 |
Segment Reporting (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Segment Reporting [Abstract] | |||||
Revenues | $ 5,483,525 | $ 4,595,790 | $ 10,415,706 | $ 8,637,267 | |
Operating Income (Loss) | 370,709 | 218,872 | 654,738 | 352,123 | |
Adjusted EBITDA | $ 444,460 | $ 309,245 | $ 808,582 | $ 525,793 | |
Adjusted EBITDA Margin % | 8.10% | 6.70% | 7.80% | 6.10% | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,483,525 | $ 4,595,790 | $ 10,415,706 | $ 8,637,267 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating Income (Loss) | 370,709 | 218,872 | 654,738 | 352,123 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 13,863,266 | 13,863,266 | $ 12,617,699 | ||
EES | |||||
Segment Reporting [Abstract] | |||||
Adjusted EBITDA | $ 235,449 | $ 167,955 | $ 427,865 | $ 279,981 | |
Adjusted EBITDA Margin % | 10.10% | 8.70% | 9.70% | 7.70% | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,330,153 | $ 1,923,011 | $ 4,420,112 | $ 3,643,824 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 4,557,228 | 4,557,228 | 4,098,335 | ||
CSS | |||||
Segment Reporting [Abstract] | |||||
Adjusted EBITDA | $ 150,042 | $ 131,139 | $ 273,081 | $ 221,820 | |
Adjusted EBITDA Margin % | 9.40% | 9.00% | 9.00% | 8.20% | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,601,997 | $ 1,461,120 | $ 3,036,172 | $ 2,711,735 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 4,869,427 | 4,869,427 | 4,601,132 | ||
UBS | |||||
Segment Reporting [Abstract] | |||||
Adjusted EBITDA | $ 169,035 | $ 100,702 | $ 305,395 | $ 184,355 | |
Adjusted EBITDA Margin % | 10.90% | 8.30% | 10.30% | 8.10% | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,551,375 | $ 1,211,659 | $ 2,959,422 | $ 2,281,708 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | 3,689,724 | 3,689,724 | 3,266,231 | ||
Corporate Segment | |||||
Segment Reporting [Abstract] | |||||
Adjusted EBITDA | (110,066) | (90,551) | (197,759) | (160,363) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | $ 0 | 0 | $ 0 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Assets | $ 746,887 | $ 746,887 | $ 652,001 |
Segment Reporting - ADJ EBITDA Reconciliations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Net Income (Loss) Available to Common Stockholders, Basic | $ 206,354 | $ 104,843 | $ 373,245 | $ 149,669 |
Net (loss) income attributable to noncontrolling interest | 443 | 89 | 831 | 65 |
Preferred Stock Dividends, Income Statement Impact | 14,352 | 14,352 | 28,704 | 28,704 |
Provision for income taxes | 79,887 | 32,800 | 117,541 | 39,331 |
Nonoperating Income (Expense) | 68,478 | 67,590 | 132,098 | 137,963 |
Depreciation and amortization | 45,866 | 46,704 | 92,846 | 87,913 |
Other Nonoperating Income (Expense) | 1,195 | (802) | 2,319 | (3,609) |
StockBasedCompensationExpenseEBITDA | 14,458 | 5,949 | 22,008 | 10,642 |
MergerRelatedAndIntegrationCosts | 13,427 | 37,720 | 38,990 | 84,042 |
Gain (Loss) on Disposition of Business | 0 | (8,927) | ||
Adjusted EBITDA | 444,460 | 309,245 | 808,582 | 525,793 |
Stock-based compensation expense | $ 15,800 | $ 7,200 | $ 24,734 | $ 13,179 |
Adjusted EBITDA Margin % | 8.10% | 6.70% | 7.80% | 6.10% |
Merger Related Stock Based Compensation Expense | $ (1,400) | $ (1,300) | $ (2,700) | $ (2,500) |
EES | ||||
Net Income (Loss) Available to Common Stockholders, Basic | 222,758 | 153,976 | 401,493 | 254,606 |
Net (loss) income attributable to noncontrolling interest | 151 | (76) | 361 | (151) |
Preferred Stock Dividends, Income Statement Impact | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Depreciation and amortization | 11,198 | 12,781 | 23,222 | 23,344 |
Other Nonoperating Income (Expense) | 1,403 | 160 | 1,577 | 603 |
StockBasedCompensationExpenseEBITDA | 2,745 | 1,434 | 4,366 | 2,785 |
MergerRelatedAndIntegrationCosts | 0 | 0 | 0 | 0 |
Gain (Loss) on Disposition of Business | 0 | |||
Adjusted EBITDA | $ 235,449 | $ 167,955 | $ 427,865 | $ 279,981 |
Adjusted EBITDA Margin % | 10.10% | 8.70% | 9.70% | 7.70% |
CSS | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 130,639 | $ 111,046 | $ 234,326 | $ 184,639 |
Net (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Preferred Stock Dividends, Income Statement Impact | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Depreciation and amortization | 17,855 | 19,241 | 35,986 | 35,534 |
Other Nonoperating Income (Expense) | (106) | (211) | (450) | (581) |
StockBasedCompensationExpenseEBITDA | 1,442 | 641 | 2,319 | 1,066 |
MergerRelatedAndIntegrationCosts | 0 | 0 | 0 | 0 |
Gain (Loss) on Disposition of Business | 0 | |||
Adjusted EBITDA | $ 150,042 | $ 131,139 | $ 273,081 | $ 221,820 |
Adjusted EBITDA Margin % | 9.40% | 9.00% | 9.00% | 8.20% |
UBS | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 161,784 | $ 94,688 | $ 291,766 | $ 181,701 |
Net (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Preferred Stock Dividends, Income Statement Impact | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Depreciation and amortization | 5,670 | 5,466 | 11,456 | 10,676 |
Other Nonoperating Income (Expense) | (644) | (5) | (610) | (22) |
StockBasedCompensationExpenseEBITDA | 937 | 543 | 1,563 | 883 |
MergerRelatedAndIntegrationCosts | 0 | 0 | 0 | 0 |
Gain (Loss) on Disposition of Business | 8,927 | |||
Adjusted EBITDA | $ 169,035 | $ 100,702 | $ 305,395 | $ 184,355 |
Adjusted EBITDA Margin % | 10.90% | 8.30% | 10.30% | 8.10% |
Corporate Segment | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (308,827) | $ (254,867) | $ (554,340) | $ (471,277) |
Net (loss) income attributable to noncontrolling interest | 292 | 165 | 470 | 216 |
Preferred Stock Dividends, Income Statement Impact | 14,352 | 14,352 | 28,704 | 28,704 |
Provision for income taxes | 79,887 | 32,800 | 117,541 | 39,331 |
Nonoperating Income (Expense) | (68,478) | (67,590) | (132,098) | (137,963) |
Depreciation and amortization | 11,143 | 9,216 | 22,182 | 18,359 |
Other Nonoperating Income (Expense) | (1,848) | 858 | (2,836) | 3,609 |
StockBasedCompensationExpenseEBITDA | 9,334 | 3,331 | 13,760 | 5,908 |
MergerRelatedAndIntegrationCosts | 13,427 | 37,720 | 38,990 | 84,042 |
Gain (Loss) on Disposition of Business | 0 | |||
Adjusted EBITDA | $ (110,066) | $ (90,551) | $ (197,759) | $ (160,363) |
Subsequent Events (Details) - USD ($) $ in Thousands |
2 Months Ended | 4 Months Ended | |||
---|---|---|---|---|---|
Aug. 05, 2022 |
Feb. 28, 2022 |
Jun. 30, 2022 |
Aug. 02, 2022 |
Dec. 31, 2021 |
|
Accounts Receivable Securitization Facility | |||||
Subsequent Events [Abstract] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,400,000 | $ 1,300,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.15% | 1.10% | |||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,400,000 | 1,300,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.15% | 1.10% | |||
Accounts Receivable Securitization Facility | Subsequent Event | |||||
Subsequent Events [Abstract] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,525,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.05% | ||||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,525,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.05% | ||||
Revolving Credit Facility | |||||
Subsequent Events [Abstract] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,350,000 | 1,200,000 | |||
Canadian Dollar Sub-Facility Commitment | 550,000 | 500,000 | |||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,350,000 | 1,200,000 | |||
Canadian Dollar Sub-Facility Commitment | $ 550,000 | $ 500,000 | |||
Revolving Credit Facility | Subsequent Event | |||||
Subsequent Events [Abstract] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,525,000 | ||||
Canadian Dollar Sub-Facility Commitment | 600,000 | ||||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,525,000 | ||||
Canadian Dollar Sub-Facility Commitment | $ 600,000 |
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