Segment Reporting

9 Months Ended

Sep. 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 September 30, 2022
	EES			CSS			UBS			Corporate		Total
Net sales	$	2,234,771		$	1,602,459		$	1,608,686		$	—	$	5,445,916
Adjusted EBITDA	225,764			156,370			186,257			(102,495)		465,896
Adjusted EBITDA Margin %	10.1		%	9.8		%	11.6		%			8.6		%
	Three Months Ended September 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net sales	$	1,982,485		$	1,488,689		$	1,257,151		$	—	$	4,728,325
Adjusted EBITDA	173,898			133,701			114,674			(92,013)		330,260
Adjusted EBITDA Margin %	8.8		%	9.0		%	9.1		%			7.0		%

(In thousands)	Nine Months Ended September 30, 2022
	EES			CSS			UBS			Corporate		Total
Net sales	$	6,654,883		$	4,638,631		$	4,568,108		$	—	$	15,861,622
Adjusted EBITDA	653,630			429,452			491,652			(300,256)		1,274,478
Adjusted EBITDA Margin %	9.8		%	9.3		%	10.8		%			8.0		%
	Nine Months Ended September 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net sales	$	5,626,309		$	4,200,424		$	3,538,859		$	—	$	13,365,592
Adjusted EBITDA	453,894			355,521			299,030			(252,391)		856,054
Adjusted EBITDA Margin %	8.1		%	8.5		%	8.4		%			6.4		%

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

	As of
	September 30, 2022
(In thousands)	EES		CSS		UBS		Corporate(1)		Total
Total assets	$	4,541,553	$	4,988,009	$	3,817,459	$	733,543	$	14,080,564
	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 September 30, 2022
(In thousands)	EES			CSS			UBS			Corporate		Total
Net income attributable to common stockholders	$	214,054		$	138,747		$	180,354		$	(307,905)	$	225,250
Net income attributable to noncontrolling interests	200			—			—			408		608
Preferred stock dividends	—			—			—			14,352		14,352
Provision for income taxes	—			—			—			85,637		85,637
Interest expense, net	—			—			—			75,057		75,057
Depreciation and amortization	9,596			15,929			5,859			11,339		42,723
Other (income) expense, net	(1,069)			266			(1,063)			2,554		688
Stock-based compensation expense(1)	2,983			1,428			1,107			2,853		8,371
Merger-related and integration costs	—			—			—			13,210		13,210
Adjusted EBITDA	$	225,764		$	156,370		$	186,257		$	(102,495)	$	465,896
Adjusted EBITDA margin %	10.1		%	9.8		%	11.6		%			8.6		%
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended September 30, 2022 excludes $1.3 million as such amount is included in merger-related and integration costs.

	Three Months Ended September 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net income attributable to common stockholders	$	155,627		$	107,898		$	108,150		$	(266,431)	$	105,244
Net income attributable to noncontrolling interests	309			—			—			291		600
Preferred stock dividends	—			—			—			14,352		14,352
Provision for income taxes	—			—			—			44,870		44,870
Interest expense, net	—			—			—			69,720		69,720
Depreciation and amortization	16,840			24,723			5,869			9,300		56,732
Other (income) expense, net	(726)			328			22			(4,944)		(5,320)
Stock-based compensation expense(1)	1,848			752			633			5,079		8,312
Merger-related and integration costs	—			—			—			35,750		35,750
Adjusted EBITDA	$	173,898		$	133,701		$	114,674		$	(92,013)	$	330,260
Adjusted EBITDA margin %	8.8		%	9.0		%	9.1		%			7.0		%
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the three months ended September 30, 2021 excludes $1.3 million as such amount is included in merger-related and integration costs.

	Nine Months Ended September 30, 2022
(In thousands)	EES			CSS			UBS			Corporate		Total
Net income attributable to common stockholders	$	615,547		$	373,073		$	472,119		$	(862,244)	$	598,495
Net income attributable to noncontrolling interests	561			—			—			878		1,439
Preferred stock dividends	—			—			—			43,056		43,056
Provision for income taxes	—			—			—			203,178		203,178
Interest expense, net	—			—			—			207,155		207,155
Depreciation and amortization	32,818			51,916			17,315			33,520		135,569
Other (income) expense, net	(2,646)			716			(452)			5,389		3,007
Stock-based compensation expense(1)	7,350			3,747			2,670			16,612		30,379
Merger-related and integration costs	—			—			—			52,200		52,200
Adjusted EBITDA	$	653,630		$	429,452		$	491,652		$	(300,256)	$	1,274,478
Adjusted EBITDA margin %	9.8		%	9.3		%	10.8		%			8.0		%
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the nine months ended September 30, 2022 excludes $4.1 million as such amount is included in merger-related and integration costs.

	Nine Months Ended September 30, 2021
(In thousands)	EES			CSS			UBS			Corporate		Total
Net income attributable to common stockholders	$	410,233		$	292,537		$	289,851		$	(737,708)	$	254,913
Net income attributable to noncontrolling interests	158			—			—			507		665
Preferred stock dividends	—			—			—			43,056		43,056
Provision for income taxes	—			—			—			84,201		84,201
Interest expense, net	—			—			—			207,683		207,683
Depreciation and amortization	40,184			60,257			16,545			27,659		144,645
Other (income) expense, net	(1,329)			909			44			(8,553)		(8,929)
Stock-based compensation expense(1)	4,648			1,818			1,517			10,972		18,955
Merger-related and integration costs	—			—			—			119,792		119,792
Net gain on divestitures	—			—			(8,927)			—		(8,927)
Adjusted EBITDA	$	453,894		$	355,521		$	299,030		$	(252,391)	$	856,054
Adjusted EBITDA margin %	8.1		%	8.5		%	8.4		%			6.4		%
(1) Stock-based compensation expense in the calculation of adjusted EBITDA for the nine months ended September 30, 2021 excludes $3.8 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 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.