Company: WCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000929008-25-000012
Chunk: 108

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 108
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 business, and also reflects lower supplier volume rebates and higher inventory adjustments.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses for the first quarter of 2025 totaled $836.3 million versus $829.4 million for the first quarter of 2024, an increase of $6.9 million, or 0.8%.

The following table reconciles SG&A expenses to adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented: 

Three Months EndedMarch 31, 2025% of net salesMarch 31, 2024% of net salesAdjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$836.315.7%$829.415.5%Digital transformation costs(1)(6.2)(6.1)Restructuring costs(2)(1.1)(8.0)Excise taxes on excess pension plan assets(3)—(4.8)Adjusted selling, general and administrative expenses$829.015.5%$810.515.1%

(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)    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.

SG&A payroll and payroll-related expenses for the first quarter of 2025 of $519.4 million decreased by $4.7 million compared to the same period in 2024 primarily as a result of a decrease of $3.1 million in commissions and incentives, which include the impact of the WIS divestiture.

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

SG&A expenses not related to payroll and payroll-related costs for the first quarter of 2025 were $316.9 million, an increase of $11.6 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $6.9 million and higher transportation costs of $6.9 million.

Income from Operations

Income from operations was $240.9 million for the first quarter of 2025 compared to $263.0 million for the first quarter of 2024. The decrease of $22.1 million, or 8.4%,