Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 94

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 94
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 of operations for that period.

13. INCOME TAXES

The effective tax rate for the three months ended September 30, 2025 and 2024 was 23.5% and 25.3%, respectively. For the three months ended September 30, 2025, the effective tax rate reflects net discrete income tax benefits of $7.8 million primarily resulting from the exercise of stock-based awards. These discrete income tax benefits reduced the effective tax rate in the current period by approximately 3.2 percentage points. For the three months ended September 30, 2024, the effective tax rate does not reflect any material discrete income tax benefits. 

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)(unaudited)

The effective tax rate for the nine months ended September 30, 2025 and 2024 was 24.4% and 25.4%, respectively. For the nine months ended September 30, 2025 and 2024, the effective tax rate reflects net discrete income tax benefits of $12.8 million and $8.6 million, respectively, primarily resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 2.0 and 1.2 percentage points.During the first nine months of 2025, the Company purchased $93.8 million of transferable clean energy tax credits. The Company used $91.1 million of these tax credits to reduce its 2024 U.S. federal income tax liability and $2.7 million to reduce its estimated 2025 U.S. federal income tax liability. The Company has taken appropriate measures to mitigate the transferee liability associated with these tax credits, including but not limited to conducting due diligence to confirm the eligibility of the underlying projects or production, as applicable, for the tax credits and the eligibility of the tax credits for transfer, obtaining appropriate contractual protections from the sellers, and obtaining tax credit insurance and/or seller guarantees.The effective tax rate, excluding discrete income tax benefits, differs from the federal statutory income tax rate due primarily to state income taxes, nondeductible expenses, and the tax impact of international operations.There have been no material adjustments to the Company's assessment of uncertain tax positions since December 31, 2024. On July 4