Company: WCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000929008-25-000012
Chunk: 69

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 69
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———8.08.0Digital transformation costs(4)———6.16.1Excise taxes on excess pension plan assets(5)———4.84.8Cloud computing arrangement amortization(6)———2.92.9Adjusted EBITDA$161.8$131.2$169.4$(122.0)$340.4Adjusted EBITDA margin %7.8 %7.7 %10.7 %(1)  As previously described in Note 2, “Accounting Policies,” the reportable segment information for the three months ended March 31, 2024 for the EES and CSS reportable segments has been recast to conform to the current year presentation.(2)  The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.(3)  Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.(4)  Digital transformation costs include costs associated with certain digital transformation initiatives.(5) 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.(6) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.

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 margin % is calculated by dividing Adjusted EBITDA by net sales.

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

The following tables reconcile selling, general and administrative expenses, income from operations, other non-operating (income) expense, provision for income taxes and earnings per diluted share to adjusted selling, general and administrative expenses, adjusted income from operations, adjusted other non-operating (income) expense, adjusted provision for income taxes and adjusted earnings per diluted share, which are non-GAAP financial measures, for the periods presented:

Three Months EndedMarch 31, 2025March 31, 2024Adjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$836.3$829.4Digital transformation costs(1)(6.2)(6.1)Restructuring costs(2)(1.1)(8.0)