WESCO INTERNATIONAL INCWCC

WESCO INTERNATIONAL INC Leases Disclosure

10-KFiled Feb 13, 20263 min read
8. LEASES
Wesco leases substantially all of its real estate, as well as automobiles, trucks, information technology hardware, and other equipment under lease arrangements classified as operating and finance.
The following table sets forth supplemental balance sheet information related to leases for the periods presented:
 As of December 31,
(In millions)20252024
Operating Leases
Operating lease assets$888.3 $735.1 
Current operating lease liabilities(1)
198.9 169.5 
Noncurrent operating lease liabilities752.2 614.8 
Total operating lease liabilities$951.1 $784.3 
Finance Leases
Finance lease assets, net(1)
$68.4 $57.8 
Current finance lease liabilities(1)
19.4 15.1 
Noncurrent finance lease liabilities(1)
47.9 42.2 
Total finance lease liabilities$67.3 $57.3 
(1)    Current operating lease liabilities, finance lease assets, net, current finance lease liabilities and noncurrent finance lease liabilities are recorded as components of other current liabilities, property, buildings and equipment, net, short-term debt and current portion of long-term debt, and long-term debt, respectively, in the Consolidated Balance Sheets.
The following table sets forth the Company’s total lease cost for the periods presented:
Year Ended December 31,
(In millions)202520242023
Operating lease cost$237.1 $223.6 $197.0 
Variable lease cost62.6 60.3 53.2 
Short-term lease cost7.9 6.9 8.9 
Amortization of finance lease assets19.6 15.4 9.2 
Total lease cost$327.2 $306.2 $268.3 
Operating lease cost, variable lease cost, and short-term lease cost are recorded as a component of selling, general and administrative expenses. Amortization of finance lease assets is recorded as a component of depreciation and amortization. For the years ended December 31, 2025, 2024 and 2023, interest on finance lease assets was not material. Variable lease cost consists of the non-lease components described in Note 2, “Accounting Policies”, as well as taxes and insurance for Wesco’s leased real estate.
The following table sets forth supplemental cash flow information related to leases for the periods presented:
Year Ended December 31,
(In millions)202520242023
Operating cash flows from operating leases$223.9 $212.7 $174.5 
Financing cash flows from finance leases20.1 14.9 9.0 
Leased assets obtained in exchange for new lease liabilities:
Operating leases$343.1 $205.5 $296.9 
Finance leases29.2 43.4 19.7 
For the years ended December 31, 2025, 2024 and 2023 operating cash flows from finance leases were not material.
The following table sets forth weighted-average information associated with the measurement of our remaining lease liabilities for the periods presented:
 As of December 31,
20252024
Weighted-average remaining lease term (in years)
Operating leases
66
Finance leases45
Weighted-average discount rate
Operating leases5.0%4.7%
Finance leases5.1%4.9%
The following table sets forth the maturities of the Company’s lease liabilities and reconciles the respective undiscounted payments to the lease liabilities in the Consolidated Balance Sheet as of December 31, 2025:
Operating LeasesFinance Leases
(In millions)
2026$243.4 $22.3 
2027216.1 18.5 
2028177.8 15.4 
2029140.9 10.6 
2030107.3 5.3 
Thereafter215.6 2.2 
Total undiscounted lease payments
1,101.1 74.3 
Less: imputed interest(150.0)(7.0)
Total lease liabilities
$951.1 $67.3 
Operating lease payments include $25.9 million related to options to extend real estate lease terms that are reasonably certain of being exercised. As of December 31, 2025, the Company has additional leases related to facilities that have not yet commenced totaling $35.4 million. These operating leases, which are not recorded in the Consolidated Balance Sheet as of December 31, 2025, will commence in 2026 with lease terms of 2 to 10 years.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 25, 2022
2020Mar 1, 2021
2019Feb 24, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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