Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 116

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 116
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 recent acquisition. Due to fluctuations in the U.S. dollar against certain foreign currencies, we recognized a net foreign currency exchange loss of $0.2 million for the first nine months of 2025 compared to a net loss of $18.2 million for the first nine months of 2024. We recognized net benefits of $2.5 million and net costs of $3.2 million associated with the non-service cost components of net periodic pension cost (benefit) for the nine months ended September 30, 2025 and 2024, respectively. The year-over-year decrease in net periodic pension costs was due to pension settlement cost to recognize unrealized losses previously reported as a component of other comprehensive income (loss) related to the benefit obligation of the Anixter Inc. Pension Plan as a result of the final settlement of the plan in the first quarter of 2024.

The following table reconciles other non-operating income to adjusted other non-operating (income) expense, which is a non-GAAP financial measure, for the periods presented: 

Nine Months EndedSeptember 30, 2025September 30, 2024Adjusted Other (Income) Expense, net:(In millions)Other income, net$(7.0)$(99.3)Loss on termination of business arrangement(1)(0.3)(3.8)Pension settlement cost(2)—(3.3)Gain on divestiture(3)—122.2Adjusted other (income) expense, net$(7.3)$15.8

(1)    Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party.

(2)    Pension settlement cost represents expense related to the final settlement of the Company's U.S. pension plan. 

(3)    Gain on divestiture represents the gain recognized as a result of the divestiture of the Wesco Integrated Supply (“WIS”) business on April 1, 2024.

Income Taxes

The provision for income taxes was $155.7 million for the first nine months of 2025 compared to $188.1 million in last year's comparable period, resulting in effective tax rates of 24.4% and 25.4%, respectively. The lower effective tax rate for the first nine months of 2025 is due to higher discrete income tax benefits relating to the exercise and vesting of stock-based awards as compared to the prior