Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 39

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 39
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&A expenses to adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented: 

Three Months EndedJune 30, 2025% of net salesJune 30, 2024% of net salesAdjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$872.214.8%$828.415.1%Digital transformation costs(1)(7.6)(6.1)Restructuring costs(2)(0.5)(0.9)Loss on abandonment of assets(3)—(17.8)Adjusted selling, general and administrative expenses$864.114.6%$803.614.7%

(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.

SG&A payroll and payroll-related expenses for the second quarter of 2025 of $541.5 million increased by $34.9 million compared to the same period in 2024 primarily as a result of an increase of $28.3 million in salaries and $9.6 million in benefits, partially offset by a decrease of $3.0 million in commissions and incentives.

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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 second quarter of 2025 were $330.7 million, an increase of $8.9 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $9.2 million, higher transportation costs of $8.2 million, higher IT costs of $5.4 million, and higher employee expenses of $2.9 million. These increases were partially offset by a $17.1 million decrease 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 $322.2 million for the second quarter of 2025 compared to $323.5 million for the second quarter of 2024, a decrease of $1.3 million, or 0.4%.

Interest Expense, net

Net interest expense