Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 29

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 29
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 immaterial.

12. COMMITMENTS AND CONTINGENCIES

From time to time, a number of lawsuits and claims have been or may be asserted against the Company relating to the conduct of its business, including litigation relating to commercial, product and employment matters. The outcome of any litigation cannot be predicted with certainty, and some lawsuits may be determined adversely to Wesco. However, management does not believe that the ultimate outcome of any such pending matters is likely to have a material adverse effect on Wesco’s financial condition or liquidity, although the resolution in any fiscal period of one or more of these matters may have a material adverse effect on Wesco’s results 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