Segment Reporting

6 Months Ended

Jun. 30, 2022

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.

(In thousands)	Three Months Ended June 30, 2022
	EES			CSS			UBS			Corporate		Total
Net sales	$	2,330,153		$	1,601,997		$	1,551,375		$	—	$	5,483,525
Adjusted EBITDA	235,449			150,042			169,035			(110,066)		444,460
Adjusted EBITDA Margin %	10.1		%	9.4		%	10.9		%			8.1		%
	Three Months Ended June 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net sales	$	1,923,011		$	1,461,120		$	1,211,659		$	—	$	4,595,790
Adjusted EBITDA	167,955			131,139			100,702			(90,551)		309,245
Adjusted EBITDA Margin %	8.7		%	9.0		%	8.3		%			6.7		%

(In thousands)	Six Months Ended June 30, 2022
	EES			CSS			UBS			Corporate		Total
Net sales	$	4,420,112		$	3,036,172		$	2,959,422		$	—	$	10,415,706
Adjusted EBITDA	427,865			273,081			305,395			(197,759)		808,582
Adjusted EBITDA Margin %	9.7		%	9.0		%	10.3		%			7.8		%
	Six Months Ended June 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net sales	$	3,643,824		$	2,711,735		$	2,281,708		$	—	$	8,637,267
Adjusted EBITDA	279,981			221,820			184,355			(160,363)		525,793
Adjusted EBITDA Margin %	7.7		%	8.2		%	8.1		%			6.1		%

The following table sets forth total assets by reportable segment for the periods presented:

	As of
	June 30, 2022
(In thousands)	EES		CSS		UBS		Corporate(1)		Total
Total assets	$	4,557,228	$	4,869,427	$	3,689,724	$	746,887	$	13,863,266
	As of
	December 31, 2021
(In thousands)	EES		CSS		UBS		Corporate(1)		Total
Total assets	$	4,098,335	$	4,601,132	$	3,266,231	$	652,001	$	12,617,699

(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:

	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
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
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
(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
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
Other (income) expense, net	(603)			581			22			(3,609)		(3,609)
Stock-based compensation expense(1)	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		%
(1) 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.

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.