Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 157

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 157
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 and administrative expenses$1,708.515.2%$1,657.815.3%Digital transformation costs(1)(13.8)(12.1)Restructuring costs(2)(1.6)(9.0)Loss on abandonment of assets(3)—(17.8)Excise taxes on excise pension plan assets(4)—(4.8)Adjusted selling, general and administrative expenses$1,693.115.1%$1,614.114.9%

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(4)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan.

35

Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

SG&A payroll and payroll-related expenses for the first six months of 2025 of $1,060.9 million increased by $30.1 million compared to the same period in 2024 primarily as a result of higher salaries of $28.4 million due to wage inflation, partially offset by the impact of the divestiture of the WIS business, and higher benefits expense of $8.5 million, partially offset by lower commissions and incentive compensation expenses of $6.2 million.

SG&A expenses not related to payroll and payroll-related costs for the first six months of 2025 were $647.6 million, an increase of $20.5 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $16.1 million, higher transportation costs of $15.0 million, and higher IT costs of $6.5 million, partially offset by a decrease of $15.5 million in other income and deductions, primarily attributable to the loss on abandonment of assets in the second quarter of 2024 as discussed above. 

Income from Operations

Income from operations was $563.1 million for the first six months of 2025 compared to $586.5 million for the first six months of 2024. The decrease of