WESCO International, Inc. 11-K
Table of Contents

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
for the fiscal year ended December 29, 2005 or
     
o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
for the transition period from                      to                     
COMMISSION FILE NUMBER 1-14989
A. Full title of the plan and address of the plan, if different from that of the issuer named below:
WESCO DISTRIBUTION, INC. RETIREMENT SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices:
WESCO INTERNATIONAL, Inc.
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219-1122
 
 

 


Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Financial Statements
December 29, 2005 and 2004

 


 

WESCO Distribution, Inc.
Retirement Savings Plan
Index
December 29, 2005 and 2004
         
    Page(s)
 
    1  
 
       
Financial Statements
       
 
       
    2  
 
       
    3  
 
       
    4–9  
 
       
Supplemental Schedule
       
 
       
    10–14  
 EX-23.1

 


Table of Contents

Report of Independent Registered Public Accounting Firm
To the Investment and Administrative Committees of
WESCO Distribution, Inc. Retirement Savings Plan
In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the WESCO Distribution, Inc. Retirement Savings Plan (the “Plan”) at December 29, 2005 and 2004, and the changes in net assets available for benefits for the fiscal year ended December 29, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Pittsburgh, Pennsylvania
June 27, 2006

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Statements of Net Assets Available for Benefits
December 29, 2005 and 2004
                 
    2005     2004  
Investments (Notes 2 and 6)
  $ 279,738,374     $ 258,137,520  
Receivables
               
Employee contributions
    25,706       5,156  
Employer matching contributions
    9,904       2,185  
Employer profit sharing discretionary contribution
    9,127,876       8,354,151  
Accrued interest
    13,645       12,921  
 
           
 
               
Net assets available for benefits
  $ 288,915,505     $ 266,511,933  
 
           
The accompanying notes are an integral part of these financial statements.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Statement of Changes in Net Assets Available for Benefits
Fiscal Year Ended December 29, 2005
         
    2005
Additions
       
Employee contributions
  $ 14,838,869  
Employee rollovers
    1,579,497  
Employer contributions
    13,825,450  
Net appreciation from registered investment companies
    8,384,995  
Net appreciation from common/collective trust funds
    4,353,257  
Net appreciation from stock funds and self-directed accounts
    4,040,595  
Interest and dividend income
    785,778  
     
 
       
Total additions
    47,808,441  
     
 
       
Deductions
       
Distributions to withdrawing participants
    25,404,869  
     
 
       
Total deductions
    25,404,869  
     
 
Net increase
    22,403,572  
 
       
Net assets available for benefits
       
Beginning of year
    266,511,933  
     
 
       
End of year
  $ 288,915,505  
     
The accompanying notes are an integral part of these financial statements.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
1.   Major Features of the Plan
 
    WESCO Distribution, Inc. Retirement Savings Plan (the “Plan”) was established as of February 28, 1994 (date of inception). At the date of inception, certain employees of the predecessor company became employees of WESCO Distribution, Inc. (the “Company”) and participants in the Plan. At the date of inception, all funds held by the prior plans related to the transferred employees were transferred to the Plan.
 
    The Plan covers the current employees of the Company and those former employees with a fund balance of at least $5,000 who elected to maintain their funds in the Plan. Former employees cannot make contributions to the Plan.
 
    The Plan is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”). Participants may elect to make Tax Deferred Contributions ranging from 1% up to the lesser of 50% of their compensation or $14,000. Participants may elect to make After-Tax Contributions ranging from 1% up to the lesser of 50% of their compensation or $14,000. The $14,000 limits may be adjusted in future years by the Internal Revenue Service (“IRS”). The sum of the Tax Deferred Contributions and the After-Tax Contributions cannot exceed 15% of the participant’s compensation. Subject to limitation, the Company will make Matching Contributions in an amount equal to 50% of a participant’s total monthly contributions up to a maximum of 6% of their compensation. Participants who have attained age 50 before the close of the plan year are eligible to make catch-up contributions in addition to pre-tax contributions. A catch-up contribution is a pre-tax contribution that exceeds the annual deferral limit ($14,000 in 2005). A participant’s total catch-up contributions during 2005 cannot exceed $4,000. The catch up contribution limits are determined by the IRS and increases to $5,000 in 2006 and then indexed for inflation after 2006. In addition, the Company may, at the Board of Directors’ discretion, make a Discretionary Contribution to the Plan provided certain predetermined profit levels are attained. The Company made Discretionary Contributions of $9,127,876 and $8,354,151 for the fiscal years ended December 29, 2005 and 2004, respectively.
 
    Participants are fully vested in the value of their contributions and related investment income at all times and vest in their allocated share of employer contributions according to the following schedule:
         
Less than two years of service
    0 %
Two years of service
    20 %
Three years of service
    40 %
Four years of service
    66 %
Five or more years of service
    100 %
    In conjunction with a leveraged recapitalization of the Company all active employees as of June 5, 1998 became fully vested.
 
    Employer contributions forfeited by participants not vested at their termination date are used to reinstate previously forfeited account balances of former participants who have returned to employment with the Company, or to reduce employer contributions in accordance with the plan document. Total forfeitures that reduced employer contributions in 2005 were approximately $508,000 and as of December 29, 2005, a balance of approximately $910,000 was available to reduce employer contributions in 2006.
 
    Sixteen options were available for investment of contributions to the Plan as of December 29, 2005. A brief description of the investment options is as follows:

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
     
Fund   Description
AMCAP Fund
  Fund that seeks long-term growth of capital by investing in growing, profitable companies.
 
   
American Balanced Fund
  Investments balanced between income from bond investments and capital growth from equity investments.
 
   
American Century Value Fund
  Long-term investments of established companies that pay dividends that may be less volatile that the stock market as a whole.
 
   
Columbia Acorn Fund
  Fund seeks long-term growth of capital by investing primarily in common stocks of small and medium sized companies with capitalization of less than $5 billion.
 
   
Columbia Core Bond Fund
  A bond fund investing at least 65% of its assets in U.S. Government debt securities, investment grade bonds, and cash and cash equivalents.
 
   
MFS Value Fund
  A traditional value fund investing in high-quality companies with larger market capitalizations and low price-to-earnings ratios or high dividend yields.
 
   
Pro-Mix Conservative Term
     Collective Investment Trust Fund
  This fund invests in a conservative mix of stocks, bonds and cash securities focusing on fixed income securities with short to intermediate term maturities.
 
   
Pro-Mix Extended Term
     Collective Investment Trust Fund
  This fund invests in a growth-oriented mix of stocks, bonds and cash securities and long-term, fixed securities.
 
   
Pro-Mix Maximum Term
     Collective Investment Trust Fund
  This fund invests in an aggressive, growth-oriented mix of stocks, bonds and cash securities.
 
   
Pro-Mix Moderate Term
     Collective Investment Trust Fund
  This fund invests in a moderately conservative mix of stocks, bonds and cash securities that are intermediate to long-term fixed income securities and various stocks.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
     
Fund   Description
RiverSource Trust Equity Index
     Fund I
  Fund goal to achieve a rate of return as close as possible to the return of the S&P 500 Index by investing primarily in some or all of the securities of the S&P Index.
 
   
RiverSource Trust Midcap
     Growth Fund II
  Fund goal to provide long-term growth of capital by investing in primarily high-quality, mid-sized U.S. stocks with significant growth potential.
 
   
RiverSource Trust Stable
     Capital Fund II
  Fund goal to preserve principal and income by investing primarily in bonds backed by the U.S. Government.
 
   
Self-Directed Brokerage
     Account
  Account that provides participants access to a wide range of common stocks and mutual funds beyond those available through the Plan.
 
   
Templeton Foreign Fund
  Funds seeks long-term capital growth by investing primarily in equity securities of companies outside the U.S.
 
   
WESCO International Stock
     Fund
  Fund that invests in the stock of WESCO International, Inc.
    As of December 29, 2005, the Viacom Pooled Stock Fund and the Blockbuster, Inc. Pooled Stock Fund (“Funds”) were removed from the available list of investment options. Participants in these Funds were provided the option to invest their account balance in the remaining investment options provided by the Plan.
 
    An account is maintained for each participant, which is credited with the participant’s contributions and an allocation of Company contributions and plan earnings. Allocations are based on participant contributions or account balances, as defined by the Plan. The benefit to which a participant is entitled is the benefit that can be provided from that participant’s account.
 
    The Investment Committee and the Administrative Committee of the Company’s Board of Directors administer the Plan. Reference should be made to the Prospectus, “What Does Your Future Hold?” for additional information on the Plan.
 
2.   Summary of Significant Accounting Policies
 
    Accounting Principles
 
    The financial statements of the Plan have been prepared in accordance with accounting principles generally accepted in the United States of America. The following are the significant accounting policies followed by the Plan:

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
    Basis of Accounting
 
    The accounting records of the Plan are maintained on the accrual basis of accounting.
 
    Investment Valuation and Income Recognition
 
    Investments are carried at fair value in the accompanying financial statements. Investments in registered investment companies, common/collective trust funds and common stocks are valued by the trustee based on market values of all assets in the funds’ securities portfolio and the number of units in the funds owned by the Plan. Investments in the WESCO International Stock Fund are valued at quoted market prices. Participant loans are valued at cost, which approximates fair value.
 
    Purchases and sales of securities are recorded on a settlement date basis. Dividends are recorded on the ex-dividend date.
 
    Net Appreciation (Depreciation) in Value of Investments
 
    The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains (losses) and the unrealized appreciation (depreciation) in common/collective trusts, registered investment companies, Viacom and WESCO International stock and other common stocks.
 
    Use of Estimates
 
    The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions. These may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates.
 
    Risks and Uncertainties
 
    The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in the near-term could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statement of changes in net assets available for benefits.
 
    Other
 
    Administrative expenses, excluding participant loan setup fees, distribution fees and hardship withdrawal fees, are paid by the Company and, therefore, are not expenses of the Plan.
 
    Benefits are recorded when paid.
 
3.   Tax Status
 
    The Internal Revenue Service has determined and informed the Company by a letter dated October 15, 2003, that the Plan is designed in accordance with Section 401(a) of the Internal Revenue Code (“IRC”) and, therefore, is exempt from federal taxes under provisions of Section 501(a). Accordingly, no provision for income taxes has been included in the Plan’s financial statements. The Plan has been amended since reviewing the determination letter. However, the Plan administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
4.   Employee Loans
 
    Participants are permitted to borrow against a portion of their vested account balance within the prescribed limitations and pursuant to nondiscriminatory rules established by the Administrative Committee. Each loan is to be repaid over a period not to exceed five years.
 
    The interest rate applied to employee loans is established each month by the Administrative Committee at 1% above the PNC Bank prime interest rate. The interest rate on new loans ranged between 5.0% and 8.0% for the fiscal year ended December 29, 2005. Principal and interest payments are generally made through monthly payroll deductions and are credited to the participant’s individual account. Loans of approximately $2,521,000 were made from the Plan and loan principal repayments of approximately $2,314,000 were received by the Plan for the year ended December 29, 2005. Interest of approximately $306,000 was received by the Plan for the year ended December 29, 2005 related to employee loans.
 
5.   Plan Termination
 
    Although the Company has not expressed any intent to do so, it has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event the Plan terminates, participants will become 100% vested in their accounts, and all vested assets shall be distributed to such participants in accordance with the terms of the Plan, or in such other manner, not inconsistent with the requirements of any applicable law or regulation, as the Company may in its sole discretion determine.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Notes to Financial Statements
December 29, 2005 and 2004
6.   Investments
 
    Investments representing 5% or more of the net assets available for benefits as of December 29, 2005 and 2004 were as follows:
                 
    2005   2004
AMCAP Fund
  $ 36,550,606     $ *  
American Balanced Fund
    31,417,575       30,588,760  
American Century Value Fund
    18,553,434       15,970,409  
American Express Trust Equity Index Fund I
    **     30,704,775  
RiverSource Equity Index Fund I
    31,012,651       **
American Express Trust Stable Capital Fund II
    **     59,467,399  
RiverSource Stable Capital Fund II
    63,796,144       **
AXP New Dimension Fund
    *       42,404,868  
Columbia Acorn Fund
    30,581,112       25,260,130  
Templeton Foreign Fund
    15,397,100       *  

*   These funds did not represent 5% or more of the net assets available for benefits as of the respective Plan year-end.
 
**   Fund name was changed from American Express to RiverSource during the plan year ending December 29, 2005.
7.   Related Party Transactions
 
    Certain investments of the Plan are mutual funds managed by American Express. The trustee of the Plan is American Express Trust Company. Participants of the Plan may also elect to invest in WESCO International, Inc. common stock within the WESCO Pooled Stock Fund. WESCO International, Inc. owns 100% of the Company. Therefore, these transactions qualify as party-in-interest transactions.

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Schedule of Assets (Held at End of Year)
EIN 25-1723345, Plan Number 001
December 29, 2005                                                                                                                                                                Schedule H, line 4i
                         
(a)   (b)   (c)   (d)     (e)  
        Description of Investment              
    Identity of Issue,   Including Maturity Date,              
    Borrower, Lessor or   Rate of Interest, Collateral,           Current  
    Similar Party   Par, or Maturity Value   Cost     Value  
 
  AMCAP Fund   AMCAP Fund (Class R-4)   $     $ 36,550,606  
*
  RiverSource Trust   Midcap Growth Fund II           3,599,417  
*
  RiverSource Trust   Stable Capital Fund II           63,796,144  
*
  RiverSource Trust   Equity Index Fund I           31,012,651  
 
  American Funds   American Balanced Fund (Class A)           31,417,575  
 
  American Century Investments   American Century Value Fund           18,567,379  
 
  Columbia Mutual Funds   Columbia Acorn Fund (Class A)           30,581,112  
 
  Columbia Mutual Funds   Columbia Core Bond Fund (A)           7,526,521  
 
  MFS Family of Funds   MFS Value Fund (Class A)           7,626,565  
 
  Participant Promissory Notes   5.0%-10.5% due at various dates           5,379,639  
 
  Pro-Mix Funds   Pro-Mix Max Term Investment Trust           3,433,426  
 
  Pro-Mix Funds   Pro-Mix Extended Term Investment Trust           2,795,875  
 
  Pro-Mix Funds   Pro-Mix Moderate Term Investment Trust           1,557,138  
 
  Pro-Mix Funds   Pro-Mix Conservative Term Inv. Trust           722,837  
 
  Templeton Funds   Templeton Foreign Fund (A)           15,397,100  
*
  WESCO International, Inc.   WESCO International Pooled Stock Fund           12,711,250  
 
  Align Technology, Inc.   Common Stock           1,280  
 
  Altria Group Inc.   Common Stock           3,755  
 
  American Ammunition Inc.   Common Stock           5  
 
  American Century Investments   American Century Equity Income Fund           13,556  
 
  American Eagle Outfitters Inc.   Common Stock           13,872  
 
  American Oil & Gas Inc.   Common Stock           14,985  
 
  Ametek Inc.   Common Stock           4,295  
 
  Applied Materials   Common Stock           1,806  
 
  APW Ltd   Common Stock           1  
 
  Aquila Inc.   Common Stock           19,345  
 
  Arcadia Resources, Inc.   Common Stock           312,180  
 
  Artemis International Sol   Common Stock           39  
 
  Artisan Mid Cap Value Fund   Common Stock           69,884  
 
  AT&T Inc.   Common Stock           4,924  
 
  Avalonbay Communities Inc.   Common Stock           17,880  
 
  Berkshire Hathaway Inc.   Common Stock           8,847  
 
  Biotime Inc.   Common Stock           31  
 
  Blockbuster Inc.   Common Stock           3,482  
 
  Boeing Co.   Common Stock           7,118  
 
  Brandywine Funds   Income Fund           34,654  
 
  Budget Group Inc.   Common Stock           13  
 
  BY Prudhoe Bay Royalty Trust   Common Stock           2,658  
 
  Calpine Corp.   Common Stock           1,363  

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Schedule of Assets (Held at End of Year)
EIN 25-1723345, Plan Number 001
December 29, 2005                                                                                                                                                                Schedule H, line 4i
                         
(a)   (b)   (c)   (d)     (e)  
        Description of Investment              
    Identity of Issue,   Including Maturity Date,              
    Borrower, Lessor or   Rate of Interest, Collateral,           Current  
    Similar Party   Par, or Maturity Value   Cost     Value  
 
  Candela Corp.   Common Stock           8,970  
 
  Charys Holding Co.   Common Stock           23,063  
 
  Chesapeake Energy   Common Stock           25,474  
 
  Chevron Corp.   Common Stock           5,647  
 
  Chicos FAS Inc.   Common Stock           11,120  
 
  Chilmark Entertainment Group   Common Stock           46  
 
  Cisco Systems   Common Stock           3,448  
 
  CTS Corp.   Common Stock           1,117  
 
  DCH Technology   Common Stock           4  
 
  Del Global Technologies Corp.   Common Stock           348  
 
  Dodge & Cox Funds   Balanced Fund           14,048  
 
  Dodge & Cox Funds   Stock Fund           14,660  
 
  Duke Realty Corporation   Common Stock           3,386  
 
  Eagle Broadband Inc.   Common Stock           3,375  
 
  Earthshell Corp.   Common Stock           253  
 
  Encana Corp.   Common Stock           13,461  
 
  Excelsior Funds   Value & Restructuring Fund           11,644  
 
  Federal Mogul Corp.   Common Stock           2,286  
 
  Focus Enhancements   Common Stock           63  
 
  Fording Canadian Coat Trust   Common Stock           3,525  
 
  Gabelli Funds   Asset Fund           7,027  
 
  Gamco Gold AAA   Gold Fund           17,492  
 
  Genentech Inc.   Common Stock           27,618  
 
  General Electric   Common Stock           16,891  
 
  General Motors   Common Stock           1,711  
 
  Genesis Microchip, Inc.   Common Stock           13,800  
 
  Google Inc.   Common Stock           6,302  
 
  Harbor Funds   Harbor Bond Fund           6,068  
 
  Harbor Funds   Harbor International Fund           20,843  
 
  Heartland Funds   Heartland Value Fund           11,795  
 
  Icon Funds   Icon Information Technology Fund           4,857  
 
  I Shares   MSCI Emerging Markets Index           63,929  
 
  I Shares   S&P Trust Fund           111,221  
 
  I Shares   DJ Select Dividend Index Fund           4,927  
 
  I Shares   DJ U.S. Consumer Cycl SEC Fund           2,994  
 
  I Shares   Goldman Sachs Nat Res Ind Fund           47,355  
 
  I Shares   MSCI Australia Index Fund           23,983  
 
  I Shares   MSCI Canada Inces Fund           15,386  
 
  I Shares   MSCI Pacific Ex Japan Ind Fund           26,008  

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Schedule of Assets (Held at End of Year)
EIN 25-1723345, Plan Number 001
December 29, 2005                                                                                                                                                                 Schedule H, line 4i
                         
(a)   (b)   (c)   (d)     (e)  
        Description of Investment              
    Identity of Issue,   Including Maturity Date,              
    Borrower, Lessor or   Rate of Interest, Collateral,           Current  
    Similar Party   Par, or Maturity Value   Cost     Value  
 
  I Shares   MSCI South Korea Index Fund           22,874  
 
  I Shares   MSCI Taiwan Index Fund           10,016  
 
  I Shares   S&P Europe 350 Index Fund           8,933  
 
  I Shares   S&P Latin America 40           6,160  
 
  Intel Corp.   Common Stock           7,521  
 
  Interplay Entertainment   Common Stock           8  
 
  Invio Biomedical Corp.   Common Stock           3,270  
 
  Ivanhoe Energy, Inc.   Common Stock           107  
 
  Janus Funds   High Yield Fund           20,951  
 
  Janus Funds   Mid Cap Value Fund           41,759  
 
  JDS Uniphase Corp.   Common Stock           5,543  
 
  Johnson & Johnson   Common Stock           5,001  
 
  Johnson Controls   Common Stock           1,831  
 
  K.C.S. Energy Inc.   Common Stock           2,439  
 
  Kaire Holdings Inc.   Common Stock           15  
 
  Keryx Biopharmaceuticals   Common Stock           2,850  
 
  Kinetics Paradigm Fund   Common Stock           19,905  
 
  Liberty Property Trust   Common Stock           8,520  
 
  Loomis Sayles Global Bond Fund   Common Stock           5,731  
 
  Lucent Technology   Common Stock           810  
 
  Manhattan Pharmaceuticals   Common Stock           3,861  
 
  Marathon Oil Corp.   Common Stock           3,035  
 
  Matrix Advisors Value   Common Stock           40,363  
 
  Merck & Co.   Common Stock           3,882  
 
  Meridian Funds   Meridian Growth Fund           18,901  
 
  Meridian Funds   Meridian Value Funds           7,052  
 
  MGRS Fremont Micro Cap MGRS Fd   Common Stock           8,415  
 
  Mobile Reach International, Inc.   Common Stock           5  
 
  Nastech Pharmaceutical Co.   Common Stock           3,000  
 
  National Health Investors, Inc.   Common Stock           10,480  
 
  Neomedia Technologies   Common Stock           1,120  
 
  Newcastle Investment Corp.   Common Stock           4,700  
 
  Netflix.com Inc.   Common Stock              
 
  Nokia Corp.   Common Stock           5,544  
 
  Nortel Networks Corp. New   Common Stock           488  
 
  Northern   High Yield Fixed Income Fund           20,778  
 
  Oakmark Funds   Oakmark Equity and Income Fund (I)           33,259  
 
  Oakmark Funds   Oakmark Fund           11,891  
 
  Occidental Petroleum   Common Stock           3,988  

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Schedule of Assets (Held at End of Year)
EIN 25-1723345, Plan Number 001
December 29, 2005                                                                                                                                                                 Schedule H, line 4i
                         
(a)   (b)   (c)   (d)     (e)  
        Description of Investment              
    Identity of Issue,   Including Maturity Date,              
    Borrower, Lessor or   Rate of Interest, Collateral,           Current  
    Similar Party   Par, or Maturity Value   Cost     Value  
 
  Oracle Systems   Common Stock           3,687  
 
  Patterson-UTI Energy Inc.   Common Stock           3,284  
 
  Paychex Inc.   Common Stock           5,822  
 
  Photoworks, Inc.   Common Stock           16  
 
  PIMCO Funds   PIMCO PEA Renaissance Fund           9,172  
 
  PIMCO Funds   PIMCO Total Return Fund           5,971  
 
  Pioneer Natural Resources   Common Stock           2,806  
 
  PNC Financial Services Group   Common Stock           1,744  
 
  Profunds   Profund Ultrasmall Cap Profund I           39,240  
 
  Profunds   Profunds Ultra Mid-Cap Profund           78,866  
 
  Purchase Pro.com   Common Stock           1  
 
  Qualcomm Inc.   Common Stock           10,885  
 
  Quicksilver Resources Inc.   Common Stock           18,806  
 
  Radioshack Corporation   Common Stock           3,696  
 
  Ralcorp Holdings Inc.   Common Stock           2,014  
 
  Real Networks Inc.   Common Stock           1,582  
 
  Reliant Energy, Inc.   Common Stock           30,780  
 
  Renovo Holdings, Inc.   Common Stock           10  
 
  RiverSource Trust   Money Market Fund II           405,711  
 
  Royce Total Return Fund   Common Stock           6,049  
 
  RS Partners Fund   Common Stock           52,956  
 
  RSA SEC Inc.   Common Stock           1,133  
 
  RVS   European Equity Fund (Class Y)           10,615  
 
  Schering-Plough   Common Stock           7,385  
 
  Shaw Group Inc.   Common Stock           2,934  
 
  Silver Star Energy   Common Stock           575  
 
  Sirius Satellite Radio Inc.   Common Stock           9,193  
 
  Solomon Alliance Group   Common Stock           1  
 
  Sonus Networks   Common Stock           3,810  
 
  Sound Shore Fund   Common Stock           5,935  
 
  Southwest Airlines   Common Stock           711  
 
  Spectrum Signal Processing   Common Stock           107  
 
  Sun Microsystems   Common Stock           1,700  
 
  T. Rowe Price Funds   Capital Appreciation Fund           9,099  
 
  T. Rowe Price Funds   Growth Stock Fund           73,280  
 
  Tellabs   Common Stock           3,164  
 
  The India Fund Inc.   Mutual Fund           10,400  
 
  The Muhlenkamp Fund   Mutual Fund           9,752  
 
  The Reserve Funds   Primary Fund Class A           595,219  

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Table of Contents

WESCO Distribution, Inc.
Retirement Savings Plan
Schedule of Assets (Held at End of Year)
EIN 25-1723345, Plan Number 001
December 29, 2005                                                                                                                                                                 Schedule H, line 4i
                         
(a)   (b)   (c)   (d)     (e)  
        Description of Investment              
    Identity of Issue,   Including Maturity Date,              
    Borrower, Lessor or   Rate of Interest, Collateral,           Current  
    Similar Party   Par, or Maturity Value   Cost     Value  
 
  The Yacktman Fund   Mutual Fund           2,946  
 
  Third Avenue   International Value Fund           12,801  
 
  Third Avenue   Real Estate Value Fund           5,266  
 
  Thompson Plumb and Associates   Growth Fund           4,999  
 
  Time Warner Inc.   Common Stock           3,583  
 
  Top Tankers Inc.   Common Stock           1,240  
 
  Tyco International Ltd.   Common Stock           1,445  
 
  Ultra Petroleum Corp.   Common Stock           137,250  
 
  UMB Scout   Worldwide Fund           66,346  
 
  Unigene Labs Inc.   Common Stock           17,958  
 
  USAir Group   Common Stock           1  
 
  Utilities Select Sector SPDR Fund   Common Stock           10,099  
 
  UTS Energy Corp.   Common Stock           3,625  
 
  Valeant Pharmaceuticals Intl.   Common Stock           1,795  
 
  Vanguard Funds   GNMA Portfolio Fund           4,300  
 
  Vanguard Funds   Wellesley Income Fund           75,474  
 
  Vanguard Funds   Windsor II Fund           50,642  
 
  Viacom Inc. Class B   Common Stock           3,361,655  
 
  Vioquest Pharmaceuticals   Common Stock           41  
 
  Weingarten Realty Investors SBI   Common Stock           17,195  
 
  Wells Fargo   Asia Pacific Investment Advisors           385,096  
 
  XM Satellite Radio   Common Stock           4,152  
 
                   
 
          $     $ 279,738,374  
 
                   
 
*   Denotes party-in-interest, for which a statutory exemption exists.

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EXHIBITS
     The following exhibit is filed or incorporated as part of this report:
             
Exhibit            
Number   Description        
23.01
  Consent of PricewaterhouseCoopers LLP (filed herewith)      
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employees benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
         
 
      WESCO Distribution, Inc.
 
      Retirement Savings Plan

Date: June 27, 2006
      /s/ Stephen A. Van Oss
 
       
 
      Stephen A. Van Oss
 
      Chairman, 401K Retirement Savings Plan
 
      Investment and Administrative Committees