Delaware | 26-0273989 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
75 Tri-State International | ||||||||||||||
Lincolnshire | , | Illinois | 60069 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common stock, par value $0.01 per share | CDW | Nasdaq Global Select Market |
Large accelerated filer | ý | Accelerated filer | ☐ | ||||||||||||||||||
Smaller reporting company | ☐ | ||||||||||||||||||||
☐ | |||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item | Page | |||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
SIGNATURES |
Our value proposition to our customers | Our value proposition to our vendor partners | ||||||||||
● | Broad selection of products and multi-branded IT solutions | ● | Access to over 250,000 customers | ||||||||
● | Value-added services with integration capabilities | ● | Large and established customer channels | ||||||||
● | Highly-skilled specialists and engineers | ● | Strong distribution and implementation capabilities | ||||||||
● | Solutions across IT lifecycle | ● | Customer relationships driving insight into technology roadmaps |
•Security: We assess our customers’ security needs and provide them with tools and services to help effectively manage risk. We are a security solutions integrator that combines our expertise in design, solution architecture and implementation services. Our customer solutions can take the form of hardware, software or Software as a Service across a multitude of categories such as: endpoint security, email security, web security, intrusion prevention, authentication, firewall, virtual private network services and network access control. Security consulting engagements include security assessment, policy and procedure gap analysis, security roadmaps and health checks. |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
Dollars in Millions | Percentage of Total Net Sales | Dollars in Millions | Percentage of Total Net Sales | Dollars in Millions | Percentage of Total Net Sales | |||||||||||||||||||||||||||||||||
Notebooks/Mobile Devices | $ | 6,659.4 | 32.0 | % | $ | 5,486.2 | 29.7 | % | $ | 4,344.9 | 24.1 | % | ||||||||||||||||||||||||||
Netcomm Products | 1,950.9 | 9.4 | 1,955.0 | 10.6 | 2,189.1 | 12.1 | ||||||||||||||||||||||||||||||||
Desktops | 1,203.6 | 5.8 | 1,132.4 | 6.1 | 1,547.3 | 8.6 | ||||||||||||||||||||||||||||||||
Video | 1,605.0 | 7.7 | 1,190.8 | 6.4 | 1,272.9 | 7.1 | ||||||||||||||||||||||||||||||||
Enterprise and Data Storage (Including Drives) | 992.1 | 4.8 | 947.4 | 5.1 | 1,147.6 | 6.4 | ||||||||||||||||||||||||||||||||
Other Hardware | 4,358.6 | 20.9 | 4,121.6 | 22.3 | 3,980.4 | 22.1 | ||||||||||||||||||||||||||||||||
Total Hardware | 16,769.6 | 80.6 | 14,833.4 | 80.2 | 14,482.2 | 80.4 | ||||||||||||||||||||||||||||||||
Software(1) | 2,802.4 | 13.5 | 2,581.0 | 14.0 | 2,585.0 | 14.3 | ||||||||||||||||||||||||||||||||
Services(1) | 1,126.1 | 5.4 | 913.9 | 4.9 | 840.9 | 4.7 | ||||||||||||||||||||||||||||||||
Other(2) | 122.7 | 0.5 | 139.2 | 0.9 | 124.3 | 0.6 | ||||||||||||||||||||||||||||||||
Total Net sales | $ | 20,820.8 | 100.0 | % | $ | 18,467.5 | 100.0 | % | $ | 18,032.4 | 100.0 | % |
Year Ended December 31, | |||||||||||||||||||||
2019 | 2018(1) | 2017(1) | |||||||||||||||||||
Dollars in Millions | Percentage of Total Net Sales | Dollars in Millions | Percentage of Total Net Sales | Dollars in Millions | Percentage of Total Net Sales | ||||||||||||||||
Notebooks/Mobile Devices | $ | 4,631.7 | 25.7 | % | $ | 4,062.2 | 25.0 | % | $ | 3,491.8 | 23.5 | % | |||||||||
Netcomm Products | 2,193.4 | 12.2 | 2,119.1 | 13.0 | 2,021.6 | 13.6 | |||||||||||||||
Desktops | 1,598.2 | 8.9 | 1,322.2 | 8.1 | 1,196.0 | 8.1 | |||||||||||||||
Video | 1,272.7 | 7.1 | 1,184.3 | 7.3 | 1,070.0 | 7.2 | |||||||||||||||
Enterprise and Data Storage (Including Drives) | 1,146.0 | 6.4 | 1,102.5 | 6.8 | 1,070.2 | 7.2 | |||||||||||||||
Other Hardware | 3,521.2 | 19.5 | 3,308.8 | 20.4 | 3,122.2 | 21.0 | |||||||||||||||
Total Hardware | 14,363.2 | 79.8 | 13,099.1 | 80.6 | 11,971.8 | 80.6 | |||||||||||||||
Software(2) | 2,637.2 | 14.6 | 2,331.9 | 14.4 | 2,145.4 | 14.5 | |||||||||||||||
Services(2) | 907.6 | 5.0 | 695.8 | 4.3 | 602.8 | 4.1 | |||||||||||||||
Other(3) | 124.4 | 0.6 | 113.7 | 0.7 | 112.9 | 0.8 | |||||||||||||||
Total Net sales | $ | 18,032.4 | 100.0 | % | $ | 16,240.5 | 100.0 | % | $ | 14,832.9 | 100.0 | % |
Name | Age | Position | ||||||
Christine A. Leahy | President and Chief Executive Officer and member of our Board of Directors since January 2019; Chief Revenue Officer from July 2017 to December 2018; Senior Vice President - International, Chief Legal Officer, and Corporate Secretary from May 2016 to July 2017; Senior Vice President, General Counsel and Corporate Secretary from January 2007 to May 2016. | |||||||
Sona Chawla | Chief Growth and Innovation Officer since January 2020; President, | |||||||
Elizabeth H. Connelly | Chief Human Resources Officer and Senior Vice President, Coworker Services since December 2018; Managing Director and Head, Commercial Bank Healthcare, Higher Education and Not-for-Profit Banking at J.P. Morgan Chase & Company (a global financial services firm) from March 2012 to December 2018. | |||||||
Christina M. Corley | Chief Commercial and Operating Officer since January 2020; Chief Operating Officer | |||||||
Senior Vice President and Chief Financial Officer since | ||||||||
Frederick J. Kulevich | Senior Vice President, General Counsel and Corporate Secretary since October 2017; Vice President and Deputy General Counsel from May 2016 to October 2017; Vice President and Assistant General Counsel from May 2014 to May 2016; Senior Director, Ethics and Compliance from July 2006 to May 2014. | |||||||
Period | Total Number of Shares Purchased (in millions) | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program (in millions) | Maximum Dollar Value of Shares that May Yet be Purchased Under the Program(1) (in millions) | ||||||||||||||||||||||
October 1 through October 31, 2021 | 0.6 | $ | 182.78 | 0.6 | $ | 292.4 | ||||||||||||||||||||
November 1 through November 30, 2021 | 0.6 | $ | 191.15 | 0.6 | $ | 182.3 | ||||||||||||||||||||
December 1 through December 31, 2021 | 0.5 | $ | 193.61 | 0.5 | $ | 87.6 | ||||||||||||||||||||
Total | 1.7 | 1.7 |
Period | Total Number of Shares Purchased (in millions) | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program (in millions) | Maximum Dollar Value of Shares that May Yet be Purchased Under the Program(1) (in millions) | ||||||||||
October 1 through October 31, 2019 | 0.4 | $ | 122.89 | 0.4 | $ | 798.0 | ||||||||
November 1 through November 30, 2019 | 0.5 | $ | 135.10 | 0.5 | $ | 731.7 | ||||||||
December 1 through December 31, 2019 | 0.4 | $ | 137.53 | 0.4 | $ | 678.7 | ||||||||
Total | 1.3 | 1.3 |
December 31, 2014 | December 31, 2015 | December 31, 2016 | December 31, 2017 | December 31, 2018 | December 31, 2019 | December 31, 2016 | December 31, 2017 | December 31, 2018 | December 31, 2019 | December 31, 2020 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDW Corp | $ | 100 | $ | 120 | $ | 151 | $ | 204 | $ | 240 | $ | 428 | CDW Corp | $ | 100 | $ | 135 | $ | 159 | $ | 284 | $ | 265 | $ | 416 | |||||||||||||||||||||||||||||||||||||||||||
S&P 500 Index | $ | 100 | $ | 99 | $ | 109 | $ | 130 | $ | 122 | $ | 157 | S&P 500 Index | $ | 100 | $ | 119 | $ | 112 | $ | 144 | $ | 168 | $ | 213 | |||||||||||||||||||||||||||||||||||||||||||
CDW Peers | $ | 100 | $ | 98 | $ | 122 | $ | 138 | $ | 115 | $ | 146 | CDW Peers | $ | 100 | $ | 117 | $ | 100 | $ | 133 | $ | 146 | $ | 196 |
Year Ended December 31, | ||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2019 | 2018 | 2017 | 2016 | 2015(1) | |||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||||
Net sales | $ | 18,032.4 | $ | 16,240.5 | $ | 14,832.9 | $ | 13,672.7 | $ | 12,988.7 | ||||||||||||
Cost of sales | 14,992.5 | 13,533.6 | 12,382.7 | 11,344.4 | 10,872.9 | |||||||||||||||||
Gross profit | 3,039.9 | 2,706.9 | 2,450.2 | 2,328.3 | 2,115.8 | |||||||||||||||||
Selling and administrative expenses | 1,713.1 | 1,537.1 | 1,410.0 | 1,345.4 | 1,226.0 | |||||||||||||||||
Advertising expense | 193.2 | 182.5 | 173.7 | 162.9 | 147.8 | |||||||||||||||||
Operating income | 1,133.6 | 987.3 | 866.5 | 820.0 | 742.0 | |||||||||||||||||
Interest expense, net | (159.4 | ) | (148.6 | ) | (150.5 | ) | (146.5 | ) | (159.5 | ) | ||||||||||||
Gain on remeasurement of equity investment | — | — | — | — | 98.1 | |||||||||||||||||
Other (expense) income, net | (24.5 | ) | 1.8 | (55.3 | ) | (0.3 | ) | (33.6 | ) | |||||||||||||
Income before income taxes | 949.7 | 840.5 | 660.7 | 673.2 | 647.0 | |||||||||||||||||
Income tax expense | (212.9 | ) | (197.5 | ) | (137.6 | ) | (248.1 | ) | (243.9 | ) | ||||||||||||
Net income | $ | 736.8 | $ | 643.0 | $ | 523.1 | $ | 425.1 | $ | 403.1 | ||||||||||||
Net income per common share: | ||||||||||||||||||||||
Basic | $ | 5.08 | $ | 4.26 | $ | 3.37 | $ | 2.60 | $ | 2.37 | ||||||||||||
Diluted | $ | 4.99 | $ | 4.19 | $ | 3.31 | $ | 2.56 | $ | 2.35 | ||||||||||||
Cash dividends declared per common share | $ | 1.2650 | $ | 0.9250 | $ | 0.6900 | — | $ | 0.4825 | — | $ | 0.3100 | ||||||||||
Balance Sheet Data (at period end): | ||||||||||||||||||||||
Cash and cash equivalents | $ | 154.0 | $ | 205.8 | $ | 144.2 | $ | 263.7 | $ | 37.6 | ||||||||||||
Working capital | 842.7 | 993.7 | 874.2 | 959.9 | 903.5 | |||||||||||||||||
Total assets | 7,999.4 | 7,167.7 | 6,966.7 | 6,958.4 | 6,755.3 | |||||||||||||||||
Total debt and capitalized lease obligations(2) | 3,317.3 | 3,209.1 | 3,236.7 | 3,236.6 | 3,262.9 | |||||||||||||||||
Total stockholders' equity | 960.3 | 975.2 | 985.6 | 1,047.9 | 1,095.9 | |||||||||||||||||
Other Financial Data: | ||||||||||||||||||||||
Capital expenditures | $ | 236.3 | $ | 86.1 | $ | 81.1 | $ | 63.5 | $ | 90.1 | ||||||||||||
Gross profit as a percentage of Net sales | 16.9 | % | 16.7 | % | 16.5 | % | 17.0 | % | 16.3 | % | ||||||||||||
Non-GAAP operating income(3) | $ | 1,368.4 | $ | 1,216.6 | $ | 1,106.8 | $ | 1,048.3 | $ | 960.9 | ||||||||||||
Non-GAAP net income(4) | 902.1 | 794.3 | 605.9 | 569.7 | 503.5 | |||||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||
Operating activities | $ | 1,027.2 | $ | 905.9 | $ | 777.7 | $ | 604.0 | $ | 277.5 | ||||||||||||
Investing activities | (331.4 | ) | (86.1 | ) | (81.1 | ) | (65.9 | ) | (354.4 | ) | ||||||||||||
Financing activities | (749.8 | ) | (754.8 | ) | (818.7 | ) | (304.6 | ) | (226.5 | ) |
Year Ended December 31, | ||||||||||||||||||||
(dollars in millions) | 2019 | 2018 | 2017 | 2016 | 2015(1) | |||||||||||||||
Operating income | $ | 1,133.6 | $ | 987.3 | $ | 866.5 | $ | 820.0 | $ | 742.0 | ||||||||||
Amortization of intangibles | 178.5 | 182.7 | 185.1 | 187.2 | 173.9 | |||||||||||||||
Equity-based compensation | 48.5 | 40.7 | 43.7 | 39.2 | 31.2 | |||||||||||||||
Other adjustments(2) | 7.8 | 5.9 | 11.5 | 1.9 | 13.8 | |||||||||||||||
Non-GAAP operating income | $ | 1,368.4 | $ | 1,216.6 | $ | 1,106.8 | $ | 1,048.3 | $ | 960.9 |
Year Ended December 31, | ||||||||||||||||||||
(dollars in millions) | 2019 | 2018 | 2017 | 2016 | 2015(1) | |||||||||||||||
Net income | $ | 736.8 | $ | 643.0 | $ | 523.1 | $ | 425.1 | $ | 403.1 | ||||||||||
Amortization of intangibles(2) | 178.5 | 182.7 | 185.1 | 187.2 | 173.9 | |||||||||||||||
Equity-based compensation | 48.5 | 40.7 | 43.7 | 39.2 | 31.2 | |||||||||||||||
Net loss on extinguishments of long-term debt | 22.1 | — | 57.4 | 2.1 | 24.3 | |||||||||||||||
Gain on remeasurement of equity investment(3) | — | — | — | — | (98.1 | ) | ||||||||||||||
Other adjustments(4) | 7.8 | 5.9 | 11.5 | 1.9 | 33.9 | |||||||||||||||
Aggregate adjustments for income taxes(5) | (91.6 | ) | (78.0 | ) | (214.9 | ) | (85.8 | ) | (64.8 | ) | ||||||||||
Non-GAAP net income | $ | 902.1 | $ | 794.3 | $ | 605.9 | $ | 569.7 | $ | 503.5 |
Year Ended December 31, | |||||||||||||||||||
(dollars in millions) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
Total Non-GAAP adjustments | $ | 256.9 | $ | 229.3 | $ | 297.7 | $ | 230.4 | $ | 165.2 | |||||||||
Weighted-average statutory effective rate | 25.0 | % | 25.0 | % | 36.0 | % | 36.0 | % | 38.0 | % | |||||||||
Income tax | (64.2 | ) | (57.3 | ) | (107.2 | ) | (82.9 | ) | (62.8 | ) | |||||||||
Deferred tax adjustment due to law changes | 0.3 | 0.5 | 1.3 | (1.5 | ) | (4.0 | ) | ||||||||||||
Excess tax benefits from equity-based compensation | (24.5 | ) | (19.1 | ) | (36.2 | ) | (1.8 | ) | — | ||||||||||
Discrete tax benefit related to CDW Canada's acquisition of Scalar | (3.0 | ) | — | — | — | — | |||||||||||||
Tax Cuts and Jobs Act | — | (1.9 | ) | (75.5 | ) | — | — | ||||||||||||
Withholding tax expense on the unremitted earnings of our Canadian subsidiary | — | — | — | — | 3.3 | ||||||||||||||
Non-deductible adjustments and other | (0.2 | ) | (0.2 | ) | 2.7 | 0.4 | (1.3 | ) | |||||||||||
Total aggregate adjustments for income taxes | $ | (91.6 | ) | $ | (78.0 | ) | $ | (214.9 | ) | $ | (85.8 | ) | $ | (64.8 | ) |
Year Ended December 31, | |||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Net sales | $ | 20,820.8 | $ | 18,467.5 | $ | 18,032.4 | |||||||||||
Gross profit | 3,568.5 | 3,210.1 | 3,039.9 | ||||||||||||||
Operating income | 1,419.0 | 1,179.2 | 1,133.6 | ||||||||||||||
Net income | 988.6 | 788.5 | 736.8 | ||||||||||||||
Non-GAAP operating income | 1,645.4 | 1,404.6 | 1,368.4 | ||||||||||||||
Non-GAAP net income | 1,118.9 | 954.4 | 902.1 | ||||||||||||||
Average daily sales(1) | 82.0 | 72.7 | 71.0 | ||||||||||||||
Net debt(2) | 6,600.4 | 2,517.0 | 3,163.3 | ||||||||||||||
Cash conversion cycle (in days)(3) | 24 | 17 | 18 |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2019 | 2018 | 2017 | ||||||||
Net sales | $ | 18,032.4 | $ | 16,240.5 | $ | 14,832.9 | |||||
Gross profit | 3,039.9 | 2,706.9 | 2,450.2 | ||||||||
Operating income | 1,133.6 | 987.3 | 866.5 | ||||||||
Net income | 736.8 | 643.0 | 523.1 | ||||||||
Non-GAAP operating income | 1,368.4 | 1,216.6 | 1,106.8 | ||||||||
Non-GAAP net income | 902.1 | 794.3 | 605.9 | ||||||||
Average daily sales(1) | 71.0 | 63.9 | 58.4 | ||||||||
Net debt(2) | 3,163.3 | 3,002.8 | 3,091.3 | ||||||||
Cash conversion cycle (in days)(3) | 18 | 19 | 19 |
Year Ended December 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Dollars in Millions | Percentage of Net Sales | Dollars in Millions | Percentage of Net Sales | |||||||||||||||||||||||
Net sales | $ | 20,820.8 | 100.0 | % | $ | 18,467.5 | 100.0 | % | ||||||||||||||||||
Cost of sales | 17,252.3 | 82.9 | 15,257.4 | 82.6 | ||||||||||||||||||||||
Gross profit | 3,568.5 | 17.1 | 3,210.1 | 17.4 | ||||||||||||||||||||||
Selling and administrative expenses | 2,149.5 | 10.3 | 2,030.9 | 11.0 | ||||||||||||||||||||||
Operating income | 1,419.0 | 6.8 | 1,179.2 | 6.4 | ||||||||||||||||||||||
Interest expense, net | (150.9) | (0.7) | (154.9) | (0.8) | ||||||||||||||||||||||
Other income (expense), net | 29.7 | 0.1 | (22.0) | (0.1) | ||||||||||||||||||||||
Income before income taxes | 1,297.8 | 6.2 | 1,002.3 | 5.5 | ||||||||||||||||||||||
Income tax expense | (309.2) | (1.5) | (213.8) | (1.2) | ||||||||||||||||||||||
Net income | $ | 988.6 | 4.7 | % | $ | 788.5 | 4.3 | % |
Year Ended December 31, | ||||||||||||||
2019 | 2018 | |||||||||||||
Dollars in Millions | Percentage of Net Sales | Dollars in Millions | Percentage of Net Sales | |||||||||||
Net sales | $ | 18,032.4 | 100.0 | % | $ | 16,240.5 | 100.0 | % | ||||||
Cost of sales | 14,992.5 | 83.1 | 13,533.6 | 83.3 | ||||||||||
Gross profit | 3,039.9 | 16.9 | 2,706.9 | 16.7 | ||||||||||
Selling and administrative expenses | 1,713.1 | 9.5 | 1,537.1 | 9.5 | ||||||||||
Advertising expense | 193.2 | 1.1 | 182.5 | 1.1 | ||||||||||
Operating income | 1,133.6 | 6.3 | 987.3 | 6.1 | ||||||||||
Interest expense, net | (159.4 | ) | (0.9 | ) | (148.6 | ) | (0.9 | ) | ||||||
Other (expense) income, net | (24.5 | ) | (0.1 | ) | 1.8 | — | ||||||||
Income before income taxes | 949.7 | 5.3 | 840.5 | 5.2 | ||||||||||
Income tax expense | (212.9 | ) | (1.2 | ) | (197.5 | ) | (1.2 | ) | ||||||
Net income | $ | 736.8 | 4.1 | % | $ | 643.0 | 4.0 | % |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | Dollar Change | Percent Change(1) | ||||||||||||||||||||||||||||||||
Corporate | $ | 8,179.7 | 39.3 | % | $ | 6,846.0 | 37.1 | % | $ | 1,333.7 | 19.5 | % | ||||||||||||||||||||||||||
Small Business | 1,870.1 | 9.0 | 1,397.1 | 7.6 | 473.0 | 33.9 | ||||||||||||||||||||||||||||||||
Public: | ||||||||||||||||||||||||||||||||||||||
Government | 2,155.6 | 10.4 | 2,978.5 | 16.1 | (822.9) | (27.6) | ||||||||||||||||||||||||||||||||
Education | 4,108.7 | 19.7 | 3,458.1 | 18.7 | 650.6 | 18.8 | ||||||||||||||||||||||||||||||||
Healthcare | 1,919.3 | 9.2 | 1,701.1 | 9.2 | 218.2 | 12.8 | ||||||||||||||||||||||||||||||||
Total Public | 8,183.6 | 39.3 | 8,137.7 | 44.0 | 45.9 | 0.6 | ||||||||||||||||||||||||||||||||
Other | 2,587.4 | 12.4 | 2,086.7 | 11.3 | 500.7 | 24.0 | ||||||||||||||||||||||||||||||||
Total Net sales | $ | 20,820.8 | 100.0 | % | $ | 18,467.5 | 100.0 | % | $ | 2,353.3 | 12.7 | % |
Year Ended December 31, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
(dollars in millions) | Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | Dollar Change | Percent Change(1) | |||||||||||||||
Corporate | $ | 7,499.0 | 41.6 | % | $ | 6,842.5 | 42.1 | % | $ | 656.5 | 9.6 | % | |||||||||
Small Business | 1,510.3 | 8.4 | 1,359.6 | 8.4 | 150.7 | 11.1 | |||||||||||||||
Public: | |||||||||||||||||||||
Government | 2,519.3 | 14.0 | 2,097.3 | 12.9 | 422.0 | 20.1 | |||||||||||||||
Education | 2,411.6 | 13.4 | 2,327.4 | 14.3 | 84.2 | 3.6 | |||||||||||||||
Healthcare | 1,933.9 | 10.7 | 1,730.0 | 10.7 | 203.9 | 11.8 | |||||||||||||||
Total Public | 6,864.8 | 38.1 | 6,154.7 | 37.9 | 710.1 | 11.5 | |||||||||||||||
Other | 2,158.3 | 12.0 | 1,883.7 | 11.6 | 274.6 | 14.6 | |||||||||||||||
Total Net sales | $ | 18,032.4 | 100.0 | % | $ | 16,240.5 | 100.0 | % | $ | 1,791.9 | 11.0 | % |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Dollars in Millions | Operating Margin | Dollars in Millions | Operating Margin | Percent Change in Operating Income | Dollars in Millions | Operating Margin | Dollars in Millions | Operating Margin | Percent Change in Operating Income | ||||||||||||||||||||||||||||||||||||||||
Segments:(1) | Segments:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | 585.1 | 7.8 | % | $ | 530.4 | 7.8 | % | 10.3 | % | Corporate | $ | 697.3 | 8.5 | % | $ | 489.5 | 7.2 | % | 42.4 | % | ||||||||||||||||||||||||||||
Small Business | 107.5 | 7.1 | 94.4 | 6.9 | 13.9 | Small Business | 167.7 | 9.0 | 99.0 | 7.1 | 69.4 | ||||||||||||||||||||||||||||||||||||||
Public | 475.0 | 6.9 | 405.0 | 6.6 | 17.3 | Public | 606.7 | 7.4 | 678.2 | 8.3 | (10.5) | ||||||||||||||||||||||||||||||||||||||
Other(2) | 101.6 | 4.7 | 82.2 | 4.4 | 24.8 | Other(2) | 115.8 | 4.5 | 65.9 | 3.2 | 75.5 | ||||||||||||||||||||||||||||||||||||||
Headquarters(3) | (135.6 | ) | nm* | (124.7 | ) | nm* | 8.7 | Headquarters(3) | (168.5) | nm* | (153.4) | nm* | (9.7) | ||||||||||||||||||||||||||||||||||||
Total Operating income | $ | 1,133.6 | 6.3 | % | $ | 987.3 | 6.1 | % | 14.8 | % | Total Operating income | $ | 1,419.0 | 6.8 | % | $ | 1,179.2 | 6.4 | % | 20.3 | % |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2021 | 2020 | |||||||||
Operating income, as reported | $ | 1,419.0 | $ | 1,179.2 | |||||||
Amortization of intangibles(1) | 94.9 | 158.1 | |||||||||
Equity-based compensation | 72.6 | 42.5 | |||||||||
Acquisition and integration expenses | 54.3 | 4.9 | |||||||||
Other adjustments | 4.6 | 19.9 | |||||||||
Non-GAAP operating income | 1,645.4 | 1,404.6 | |||||||||
Non-GAAP operating income margin | 7.9 | % | 7.6 | % |
Year Ended December 31, | |||||||
(dollars in millions) | 2019 | 2018 | |||||
Operating income | $ | 1,133.6 | $ | 987.3 | |||
Amortization of intangibles(1) | 178.5 | 182.7 | |||||
Equity-based compensation | 48.5 | 40.7 | |||||
Scalar acquisition and integration expenses | 3.0 | 1.5 | |||||
Other adjustments(2) | 4.8 | 4.4 | |||||
Non-GAAP operating income | $ | 1,368.4 | $ | 1,216.6 | |||
Non-GAAP operating income margin | 7.6 | % | 7.5 | % |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Income before income taxes | Income tax expense(1) | Net income | Income before income taxes | Income tax expense(1) | Net income | ||||||||||||||||||||||||||||||||||||||||||||
US GAAP, as reported | $ | 1,297.8 | $ | (309.2) | $ | 988.6 | $ | 1,002.3 | $ | (213.8) | $ | 788.5 | ||||||||||||||||||||||||||||||||||||||
Amortization of intangibles(2) | 94.9 | (18.9) | 76.0 | 158.1 | (36.8) | 121.3 | ||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 72.6 | (42.6) | 30.0 | 42.5 | (37.0) | 5.5 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration expenses | 54.3 | (10.4) | 43.9 | 4.9 | (1.2) | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of equity method investment | (36.0) | 8.5 | (27.5) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss on extinguishment of long-term debt | 6.0 | (1.5) | 4.5 | 27.3 | (6.8) | 20.5 | ||||||||||||||||||||||||||||||||||||||||||||
Other adjustments | 4.6 | (1.2) | 3.4 | 19.9 | (5.0) | 14.9 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 1,494.2 | $ | (375.3) | $ | 1,118.9 | $ | 1,255.0 | $ | (300.6) | $ | 954.4 |
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||||||
(dollars in millions) | Income before income taxes | Income tax expense(1) | Net income | Income before income taxes | Income tax expense(1) | Net income | ||||||||||||||||||
GAAP (as reported) | $ | 949.7 | $ | (212.9 | ) | $ | 736.8 | $ | 840.5 | $ | (197.5 | ) | $ | 643.0 | ||||||||||
Amortization of intangibles(2) | 178.5 | (44.6 | ) | 133.9 | 182.7 | (45.7 | ) | 137.0 | ||||||||||||||||
Equity-based compensation | 48.5 | (36.6 | ) | 11.9 | 40.7 | (29.2 | ) | 11.5 | ||||||||||||||||
Net loss on extinguishments of long-term debt | 22.1 | (5.5 | ) | 16.6 | — | — | — | |||||||||||||||||
Scalar acquisition and integration expenses(3) | 3.0 | (3.7 | ) | (0.7 | ) | 1.5 | — | 1.5 | ||||||||||||||||
Other adjustments(4) | 4.8 | (1.2 | ) | 3.6 | 4.4 | (3.1 | ) | 1.3 | ||||||||||||||||
Non-GAAP | $ | 1,206.6 | $ | (304.5 | ) | $ | 902.1 | $ | 1,069.8 | $ | (275.5 | ) | $ | 794.3 |
Year Ended December 31, | |||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | % Change(1) | ||||||||||||||||||||
Net sales, as reported | $ | 20,820.8 | $ | 18,467.5 | 12.7 | % | |||||||||||||||||
Foreign currency translation(2) | — | 146.2 | |||||||||||||||||||||
Net sales, on a constant currency basis | $ | 20,820.8 | $ | 18,613.7 | 11.9 | % |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2019 | 2018 | % Change(1) | ||||||||
Net sales, as reported | $ | 18,032.4 | $ | 16,240.5 | 11.0 | % | |||||
Foreign currency translation(2) | — | (67.8 | ) | ||||||||
Net sales, on a constant currency basis | $ | 18,032.4 | $ | 16,172.7 | 11.5 | % |
Dividend Amount | Declaration Date | Record Date | Payment Date | |||||||||||||||||
$ | February | February 25, | March | |||||||||||||||||
$ | May | May | June | |||||||||||||||||
$ | August | September 10, | ||||||||||||||||||
$ | November | December 10, | ||||||||||||||||||
$ |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2021 | 2020 | |||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 784.6 | $ | 1,314.3 | |||||||
Investing activities | |||||||||||
Capital expenditures(1) | (100.0) | (158.0) | |||||||||
Acquisitions of businesses, net of cash acquired | (2,705.6) | (43.0) | |||||||||
Proceeds from sale of equity method investment | 36.0 | — | |||||||||
Cash flows used in investing activities | (2,769.6) | (201.0) | |||||||||
Financing activities | |||||||||||
Net change in accounts payable - inventory financing | (161.8) | 93.0 | |||||||||
Financing payments on revenue generating assets | (46.1) | (18.1) | |||||||||
Other cash flows used in financing activities | 1,040.7 | 63.9 | |||||||||
Cash flows provided by financing activities | 832.8 | 138.8 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | 4.1 | |||||||||
Net (decrease) increase in cash and cash equivalents | $ | (1,152.1) | $ | 1,256.2 |
Year Ended December 31, | |||||||
(dollars in millions) | 2019 | 2018 | |||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 1,027.2 | $ | 905.9 | |||
Investing activities | (331.4 | ) | (86.1 | ) | |||
Net change in accounts payable - inventory financing | (1.3 | ) | (67.4 | ) | |||
Other financing activities | (748.5 | ) | (687.4 | ) | |||
Financing activities | (749.8 | ) | (754.8 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2.2 | (3.4 | ) | ||||
Net (decrease) increase in cash and cash equivalents | $ | (51.8 | ) | $ | 61.6 |
Year Ended December 31, | |||||||||||||||||
(dollars in millions) | 2021 | 2020 | Change | ||||||||||||||
Net income | $ | 988.6 | $ | 788.5 | $ | 200.1 | |||||||||||
Adjustments for the impact of non-cash items(1) | 227.6 | 520.9 | (293.3) | ||||||||||||||
Net income adjusted for the impact of non-cash items | 1,216.2 | 1,309.4 | (93.2) | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable(2) | (616.8) | (226.4) | (390.4) | ||||||||||||||
Merchandise inventory(3) | (151.0) | (71.4) | (79.6) | ||||||||||||||
Accounts payable-trade(4) | 374.5 | 253.7 | 120.8 | ||||||||||||||
Other(5) | (38.3) | 49.0 | (87.3) | ||||||||||||||
Net cash provided by operating activities | $ | 784.6 | $ | 1,314.3 | $ | (529.7) |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2019 | 2018 | Change | ||||||||
Net income | $ | 736.8 | $ | 643.0 | $ | 93.8 | |||||
Adjustments for the impact of non-cash items(1) | 256.7 | 261.1 | (4.4 | ) | |||||||
Net income adjusted for the impact of non-cash items(2) | 993.5 | 904.1 | 89.4 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable(3) | (244.8 | ) | (365.1 | ) | 120.3 | ||||||
Merchandise inventory(4) | (153.0 | ) | (46.8 | ) | (106.2 | ) | |||||
Accounts payable-trade(5) | 194.1 | 271.2 | (77.1 | ) | |||||||
Other(6) | 237.4 | 142.5 | 94.9 | ||||||||
Net cash provided by operating activities | $ | 1,027.2 | $ | 905.9 | $ | 121.3 |
December 31, | |||||||||||
(in days) | 2021 | 2020 | |||||||||
Days of sales outstanding (DSO)(1) | 65 | 57 | |||||||||
Days of supply in inventory (DIO)(2) | 17 | 14 | |||||||||
Days of purchases outstanding (DPO)(3) | (58) | (54) | |||||||||
Cash conversion cycle | 24 | 17 |
December 31, | |||||
(in days) | 2019 | 2018 | |||
Days of sales outstanding (DSO)(1) | 57 | 56 | |||
Days of supply in inventory (DIO)(2) | 14 | 13 | |||
Days of purchases outstanding (DPO)(3) | (53 | ) | (50 | ) | |
Cash conversion cycle | 18 | 19 |
Payments Due by Period | |||||||||||||||||||
(dollars in millions) | Total | 2020 | 2021-2022 | 2023-2024 | 2025 & Thereafter | ||||||||||||||
Term Loan(1) | $ | 1,777.5 | $ | 66.6 | $ | 131.3 | $ | 129.3 | $ | 1,450.3 | |||||||||
Revolving Loan(1) | 58.7 | 2.6 | 56.1 | — | — | ||||||||||||||
CDW UK Term Loan(1) | 63.1 | 7.9 | 55.2 | — | — | ||||||||||||||
Senior Notes due 2024(2) | 733.1 | 31.6 | 63.3 | 638.2 | — | ||||||||||||||
Senior Notes due 2025(2) | 780.0 | 30.0 | 60.0 | 60.0 | 630.0 | ||||||||||||||
Senior Notes due 2028(2) | 817.2 | 25.9 | 51.0 | 51.0 | 689.3 | ||||||||||||||
Operating leases(3) | 277.3 | 32.2 | 50.9 | 37.6 | 156.6 | ||||||||||||||
Total | $ | 4,506.9 | $ | 196.8 | $ | 467.8 | $ | 916.1 | $ | 2,926.2 |
December 31, | |||||||||||
(dollars in millions) | 2021 | 2020 | |||||||||
Current assets | $ | 4,584.1 | $ | 5,161.3 | |||||||
Goodwill | 2,373.1 | 2,239.1 | |||||||||
Other assets | 1,017.3 | 572.1 | |||||||||
Total Non-current assets | 3,390.4 | 2,811.2 | |||||||||
Current liabilities | 3,393.0 | 3,265.0 | |||||||||
Long-term debt | 6,534.6 | 3,856.5 | |||||||||
Other liabilities | 562.4 | 209.8 | |||||||||
Total Long-term liabilities | 7,097.0 | 4,066.3 |
Year Ended December 31, | |||||||||||
(dollars in millions) | 2021 | 2020 | |||||||||
Net sales | $ | 17,979.4 | $ | 16,380.8 | |||||||
Gross profit | 3,078.0 | 2,851.8 | |||||||||
Operating income | 1,301.9 | 1,113.2 | |||||||||
Net income | 921.3 | 738.8 |
Page | |||||
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) | |||||
Revenue recognition | ||||||||
Description of the Matter | As described in Note 1 to the consolidated financial statements, the Company recognizes revenue upon transfer of control of promised products or services to customers. The Company applies judgment in determining whether it is the principal and reports revenue on a gross basis, or an agent and reports revenue on a net basis. The Company also sells some of its products and services as part of bundled contract arrangements containing multiple performance obligations. Significant judgment may be required when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together. For each distinct performance obligation, judgment is required to determine the relative standalone selling price to allocate the transaction price, such as using an expected cost plus margin approach. Auditing the | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding of the revenue process, evaluated the design and tested the operating effectiveness of the To test revenue recognition, our audit procedures included among others, examination of executed customer contracts for a sample of sales transactions, and evaluating the | |||||||
Accounting for the Acquisition of Sirius - Valuation of Intangible Assets | ||||||||
Description of the Matter | As described in Note 1 and Note 3 to the consolidated financial statements, the Company acquired Granite Parent, Inc. (also referred to as “Sirius”) for net consideration of $2.4 billion during the year ended December 31, 2021. The transaction was accounted for as a business combination and the Company preliminarily allocated $1.1 billion of the purchase price to the fair value of identified intangible assets. Auditing the Company’s accounting for its acquisition of Sirius was complex due to the significant estimation uncertainty in the Company’s preliminary determination of the fair value of identified intangible assets of $1.1 billion, which principally consisted of customer relationships of $1,090.0 million. The significant estimation uncertainty was primarily due to the sensitivity of the fair value of customer relationships to underlying assumptions about the future performance of the acquired business and the expectations of market participant synergies on which those assumptions were based. The Company used the income approach to measure customer relationships. The significant assumptions used to estimate the value of customer relationships included the long-term growth rate, customer attrition rate and discount rate. These significant assumptions are forward looking and could be affected by future economic and market conditions. |
How We Addressed the Matter in Our Audit | We obtained an understanding of the Company’s process for accounting for the acquisition. We tested the design and operating effectiveness of the Company's controls over the estimation process supporting the recognition and measurement of customer relationships. We also tested controls regarding management’s review of assumptions used in the valuation model. To test the fair value of the Company’s customer relationships, we performed, with the assistance of our valuation specialists, audit procedures that included evaluating the Company’s selection of the valuation methodology, significant assumptions used and completeness and accuracy of the underlying data. For example, we compared the significant assumptions to historical and current industry, market and economic trends. We also tested the underlying source information used and verified the mathematical accuracy of the calculations within the valuation model. |
/s/ Ernst & Young LLP | ||
We have served as the | ||
Chicago, Illinois | ||
February 28, |
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except per share amounts) | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 154.0 | $ | 205.8 | |||
Accounts receivable, net of allowance for doubtful accounts of $7.9 and $7.0, respectively | 3,002.2 | 2,671.2 | |||||
Merchandise inventory | 611.2 | 454.3 | |||||
Miscellaneous receivables | 395.1 | 316.4 | |||||
Prepaid expenses and other | 171.6 | 149.1 | |||||
Total current assets | 4,334.1 | 3,796.8 | |||||
Operating lease right-of-use assets | 131.8 | — | |||||
Property and equipment, net | 363.1 | 156.1 | |||||
Goodwill | 2,553.0 | 2,462.8 | |||||
Other intangible assets, net | 594.1 | 712.2 | |||||
Other assets | 23.3 | 39.8 | |||||
Total Assets | $ | 7,999.4 | $ | 7,167.7 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable-trade | $ | 1,835.0 | $ | 1,577.1 | |||
Accounts payable-inventory financing | 429.9 | 429.3 | |||||
Current maturities of long-term debt | 34.1 | 25.3 | |||||
Contract liabilities | 252.2 | 178.3 | |||||
Accrued expenses and other current liabilities: | |||||||
Compensation | 212.3 | 186.4 | |||||
Advertising | 147.9 | 119.2 | |||||
Sales and income taxes | 88.6 | 55.5 | |||||
Other | 491.4 | 232.0 | |||||
Total current liabilities | 3,491.4 | 2,803.1 | |||||
Long-term liabilities: | |||||||
Debt | 3,283.2 | 3,183.3 | |||||
Deferred income taxes | 62.4 | 141.9 | |||||
Operating lease liabilities | 131.1 | — | |||||
Other liabilities | 71.0 | 64.2 | |||||
Total long-term liabilities | 3,547.7 | 3,389.4 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.01 par value, 100.0 shares authorized; no shares issued or outstanding for both periods | — | — | |||||
Common stock, $0.01 par value, 1,000.0 shares authorized; 143.0 and 147.7 shares outstanding, respectively | 1.4 | 1.5 | |||||
Paid-in capital | 3,095.3 | 2,996.9 | |||||
Accumulated deficit | (2,018.6 | ) | (1,892.6 | ) | |||
Accumulated other comprehensive loss | (117.8 | ) | (130.6 | ) | |||
Total stockholders' equity | 960.3 | 975.2 | |||||
Total Liabilities and Stockholders' Equity | $ | 7,999.4 | $ | 7,167.7 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 258.1 | $ | 1,410.2 | |||||||
Accounts receivable, net of allowance for credit losses of $20.4 and $29.6, respectively | 4,499.4 | 3,212.6 | |||||||||
Merchandise inventory | 927.6 | 760.0 | |||||||||
Miscellaneous receivables | 435.5 | 379.5 | |||||||||
Prepaid expenses and other | 357.5 | 191.2 | |||||||||
Total current assets | 6,478.1 | 5,953.5 | |||||||||
Operating lease right-of-use assets | 155.6 | 130.8 | |||||||||
Property and equipment, net | 195.8 | 175.5 | |||||||||
Goodwill | 4,382.9 | 2,595.9 | |||||||||
Other intangible assets, net | 1,628.1 | 445.1 | |||||||||
Other assets | 358.9 | 43.9 | |||||||||
Total Assets | $ | 13,199.4 | $ | 9,344.7 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable-trade | $ | 3,114.2 | $ | 2,088.4 | |||||||
Accounts payable-inventory financing | 448.3 | 524.6 | |||||||||
Current maturities of long-term debt | 102.7 | 70.9 | |||||||||
Contract liabilities | 402.9 | 243.7 | |||||||||
Accrued expenses and other current liabilities: | |||||||||||
Compensation | 361.7 | 288.3 | |||||||||
Advertising | 145.5 | 153.4 | |||||||||
Sales and income taxes | 65.9 | 104.2 | |||||||||
Other | 454.8 | 424.8 | |||||||||
Total current liabilities | 5,096.0 | 3,898.3 | |||||||||
Long-term liabilities: | |||||||||||
Debt | 6,755.8 | 3,856.3 | |||||||||
Deferred income taxes | 222.3 | 55.3 | |||||||||
Operating lease liabilities | 184.2 | 169.0 | |||||||||
Other liabilities | 235.4 | 68.7 | |||||||||
Total long-term liabilities | 7,397.7 | 4,149.3 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value, 100.0 shares authorized; 0 shares issued or outstanding for both periods | — | — | |||||||||
Common stock, $0.01 par value, 1,000.0 shares authorized; 134.8 and 141.9 shares outstanding, respectively | 1.3 | 1.4 | |||||||||
Paid-in capital | 3,369.5 | 3,204.9 | |||||||||
Accumulated deficit | (2,570.7) | (1,813.4) | |||||||||
Accumulated other comprehensive loss | (94.4) | (95.8) | |||||||||
Total stockholders’ equity | 705.7 | 1,297.1 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 13,199.4 | $ | 9,344.7 |
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions, except per share amounts) | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 18,032.4 | $ | 16,240.5 | $ | 14,832.9 | |||||
Cost of sales | 14,992.5 | 13,533.6 | 12,382.7 | ||||||||
Gross profit | 3,039.9 | 2,706.9 | 2,450.2 | ||||||||
Selling and administrative expenses | 1,713.1 | 1,537.1 | 1,410.0 | ||||||||
Advertising expense | 193.2 | 182.5 | 173.7 | ||||||||
Operating income | 1,133.6 | 987.3 | 866.5 | ||||||||
Interest expense, net | (159.4 | ) | (148.6 | ) | (150.5 | ) | |||||
Other (expense) income, net | (24.5 | ) | 1.8 | (55.3 | ) | ||||||
Income before income taxes | 949.7 | 840.5 | 660.7 | ||||||||
Income tax expense | (212.9 | ) | (197.5 | ) | (137.6 | ) | |||||
Net income | $ | 736.8 | $ | 643.0 | $ | 523.1 | |||||
Net income per common share: | |||||||||||
Basic | $ | 5.08 | $ | 4.26 | $ | 3.37 | |||||
Diluted | $ | 4.99 | $ | 4.19 | $ | 3.31 | |||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 145.1 | 150.9 | 155.4 | ||||||||
Diluted | 147.8 | 153.6 | 158.2 | ||||||||
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net sales | $ | 20,820.8 | $ | 18,467.5 | $ | 18,032.4 | |||||||||||
Cost of sales | 17,252.3 | 15,257.4 | 14,992.5 | ||||||||||||||
Gross profit | 3,568.5 | 3,210.1 | 3,039.9 | ||||||||||||||
Selling and administrative expenses | 2,149.5 | 2,030.9 | 1,906.3 | ||||||||||||||
Operating income | 1,419.0 | 1,179.2 | 1,133.6 | ||||||||||||||
Interest expense, net | (150.9) | (154.9) | (159.4) | ||||||||||||||
Other income (expense), net | 29.7 | (22.0) | (24.5) | ||||||||||||||
Income before income taxes | 1,297.8 | 1,002.3 | 949.7 | ||||||||||||||
Income tax expense | (309.2) | (213.8) | (212.9) | ||||||||||||||
Net income | $ | 988.6 | $ | 788.5 | $ | 736.8 | |||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 7.14 | $ | 5.53 | $ | 5.08 | |||||||||||
Diluted | $ | 7.04 | $ | 5.45 | $ | 4.99 | |||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||
Basic | 138.5 | 142.6 | 145.1 | ||||||||||||||
Diluted | 140.5 | 144.8 | 147.8 |
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (dollars in millions) | ||||||||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net income | $ | 736.8 | $ | 643.0 | $ | 523.1 | ||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized loss from hedge accounting, net of tax | (11.3 | ) | (5.9 | ) | (0.1 | ) | ||||||
Reclassification of hedge accounting gain to net income, net of tax | 1.7 | 3.9 | 0.3 | |||||||||
Foreign currency translation, net of tax | 22.4 | (32.7 | ) | 43.7 | ||||||||
Other comprehensive income (loss): | 12.8 | (34.7 | ) | 43.9 | ||||||||
Comprehensive income | $ | 749.6 | $ | 608.3 | $ | 567.0 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Net income | $ | 988.6 | $ | 788.5 | $ | 736.8 | ||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized loss from cash flow hedge, net of tax | — | (0.6) | (11.3) | |||||||||||||||||
Reclassification of cash flow hedge loss to net income, net of tax | 2.5 | 6.0 | 1.7 | |||||||||||||||||
Foreign currency translation, net of tax | (1.1) | 16.6 | 22.4 | |||||||||||||||||
Other comprehensive income | 1.4 | 22.0 | 12.8 | |||||||||||||||||
Comprehensive income | $ | 990.0 | $ | 810.5 | $ | 749.6 |
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (dollars in millions) | ||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||
Balance as of December 31, 2016 | 160.3 | $ | 1.6 | — | $ | — | $ | 2,857.3 | $ | (1,671.2 | ) | $ | (139.8 | ) | $ | 1,047.9 | ||||||||||||||
Net income | — | — | — | — | — | 523.1 | — | 523.1 | ||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 37.9 | — | — | 37.9 | ||||||||||||||||||||||
Stock option exercises | 1.5 | — | — | — | 13.0 | — | — | 13.0 | ||||||||||||||||||||||
Coworker stock purchase plan | 0.2 | — | — | — | 10.3 | — | — | 10.3 | ||||||||||||||||||||||
Repurchases of common stock | (8.9 | ) | (0.1 | ) | — | — | — | (533.9 | ) | — | (534.0 | ) | ||||||||||||||||||
Dividend payments ($0.690 per share) | — | — | — | — | 0.7 | (107.6 | ) | — | (106.9 | ) | ||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | 0.1 | — | (7.6 | ) | (42.0 | ) | — | (49.6 | ) | |||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 43.7 | 43.7 | ||||||||||||||||||||||
Unrealized loss from hedge accounting | — | — | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||
Realized gain from hedge accounting | — | — | — | — | — | — | 0.3 | 0.3 | ||||||||||||||||||||||
Balance as of December 31, 2017 | 153.1 | $ | 1.5 | 0.1 | $ | — | $ | 2,911.6 | $ | (1,831.6 | ) | $ | (95.9 | ) | $ | 985.6 | ||||||||||||||
Net income | — | — | — | — | — | 643.0 | — | 643.0 | ||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 36.5 | — | — | 36.5 | ||||||||||||||||||||||
Stock option exercises | 0.8 | — | — | — | 28.6 | — | — | 28.6 | ||||||||||||||||||||||
Coworker stock purchase plan | 0.1 | — | — | — | 11.8 | — | — | 11.8 | ||||||||||||||||||||||
Repurchases of common stock | (6.3 | ) | — | — | — | — | (522.3 | ) | — | (522.3 | ) | |||||||||||||||||||
Dividend payments ($0.925 per share) | — | — | — | — | 0.8 | (140.2 | ) | — | (139.4 | ) | ||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | (0.1 | ) | — | 7.6 | (41.5 | ) | — | (33.9 | ) | |||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (32.7 | ) | (32.7 | ) | ||||||||||||||||||||
Unrealized loss from hedge accounting | — | — | — | — | — | — | (5.9 | ) | (5.9 | ) | ||||||||||||||||||||
Realized gain from hedge accounting | — | — | — | — | — | — | 3.9 | 3.9 | ||||||||||||||||||||||
Balance as of December 31, 2018 | 147.7 | $ | 1.5 | — | $ | — | $ | 2,996.9 | $ | (1,892.6 | ) | $ | (130.6 | ) | $ | 975.2 | ||||||||||||||
Net income | — | — | — | — | — | 736.8 | — | 736.8 | ||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 47.7 | — | — | 47.7 | ||||||||||||||||||||||
Stock option exercises | 1.3 | — | — | — | 34.9 | — | — | 34.9 | ||||||||||||||||||||||
Coworker stock purchase plan | 0.1 | — | — | — | 14.9 | — | — | 14.9 | ||||||||||||||||||||||
Repurchases of common stock | (6.1 | ) | (0.1 | ) | — | — | — | (657.1 | ) | — | (657.2 | ) | ||||||||||||||||||
Dividend payments ($1.265 per share) | — | — | — | — | 0.9 | (184.3 | ) | — | (183.4 | ) | ||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | — | — | — | (21.4 | ) | — | (21.4 | ) | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | 22.4 | 22.4 | ||||||||||||||||||||||
Unrealized loss from hedge accounting | — | — | — | — | — | — | (11.3 | ) | (11.3 | ) | ||||||||||||||||||||
Realized gain from hedge accounting | — | — | — | — | — | — | 1.7 | 1.7 | ||||||||||||||||||||||
Balance as of December 31, 2019 | 143.0 | $ | 1.4 | — | $ | — | $ | 3,095.3 | $ | (2,018.6 | ) | $ | (117.8 | ) | $ | 960.3 |
Common Stock | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 147.7 | $ | 1.5 | $ | 2,996.9 | $ | (1,892.6) | $ | (130.6) | $ | 975.2 | |||||||||||||||||||||||||||
Net income | — | — | — | 736.8 | — | 736.8 | ||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | 47.7 | — | — | 47.7 | ||||||||||||||||||||||||||||||||
Stock option exercises | 1.3 | — | 34.9 | — | — | 34.9 | ||||||||||||||||||||||||||||||||
Coworker Stock Purchase Plan | 0.1 | — | 14.9 | — | — | 14.9 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (6.1) | (0.1) | — | (657.1) | — | (657.2) | ||||||||||||||||||||||||||||||||
Dividend payments ($1.265 per share) | — | — | 0.9 | (184.3) | — | (183.4) | ||||||||||||||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | — | (21.4) | — | (21.4) | ||||||||||||||||||||||||||||||||
Unrealized loss from hedge accounting | — | — | — | — | (11.3) | (11.3) | ||||||||||||||||||||||||||||||||
Reclassification of cash flow hedge loss to net income | — | — | — | — | 1.7 | 1.7 | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 22.4 | 22.4 | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 143.0 | $ | 1.4 | $ | 3,095.3 | $ | (2,018.6) | $ | (117.8) | $ | 960.3 | |||||||||||||||||||||||||||
Net income | — | — | — | 788.5 | — | 788.5 | ||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | 42.5 | — | — | 42.5 | ||||||||||||||||||||||||||||||||
Stock option exercises | 1.4 | — | 49.2 | — | — | 49.2 | ||||||||||||||||||||||||||||||||
Coworker Stock Purchase Plan | 0.1 | — | 16.8 | — | — | 16.8 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (2.6) | — | — | (340.6) | — | (340.6) | ||||||||||||||||||||||||||||||||
Dividend payments ($1.540 per share) | — | — | 1.1 | (220.7) | — | (219.6) | ||||||||||||||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | — | (22.5) | — | (22.5) | ||||||||||||||||||||||||||||||||
Unrealized loss from hedge accounting | — | — | — | — | (0.6) | (0.6) | ||||||||||||||||||||||||||||||||
Reclassification of cash flow hedge loss to net income | — | — | — | — | 6.0 | 6.0 | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | 16.6 | 16.6 | ||||||||||||||||||||||||||||||||
Adoption of Credit Losses ASU 2016-13 | — | — | — | 0.5 | — | 0.5 | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 141.9 | $ | 1.4 | $ | 3,204.9 | $ | (1,813.4) | $ | (95.8) | $ | 1,297.1 | |||||||||||||||||||||||||||
Net income | — | — | — | 988.6 | — | 988.6 | ||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | 72.6 | — | — | 72.6 | ||||||||||||||||||||||||||||||||
Stock option exercises | 1.5 | — | 69.9 | — | — | 69.9 | ||||||||||||||||||||||||||||||||
Coworker Stock Purchase Plan | 0.1 | — | 20.6 | — | — | 20.6 | ||||||||||||||||||||||||||||||||
Repurchases of common stock | (8.7) | (0.1) | — | (1,500.3) | — | (1,500.4) | ||||||||||||||||||||||||||||||||
Dividend payments ($1.700 per share) | — | — | 1.5 | (236.3) | — | (234.8) | ||||||||||||||||||||||||||||||||
Incentive compensation plan stock withheld for taxes | — | — | — | (28.5) | — | (28.5) | ||||||||||||||||||||||||||||||||
Reclassification of cash flow hedge loss to net income | — | — | — | — | 2.5 | 2.5 | ||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (1.1) | (1.1) | ||||||||||||||||||||||||||||||||
Adoption of Income Tax ASU 2019-12 | — | — | — | 19.2 | — | 19.2 | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 134.8 | $ | 1.3 | $ | 3,369.5 | $ | (2,570.7) | $ | (94.4) | $ | 705.7 |
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions) | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 736.8 | $ | 643.0 | $ | 523.1 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 267.1 | 265.6 | 260.9 | ||||||||
Equity-based compensation expense | 48.5 | 40.7 | 43.7 | ||||||||
Deferred income taxes | (87.9 | ) | (56.1 | ) | (172.7 | ) | |||||
Other | 29.0 | 10.9 | 62.4 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (244.8 | ) | (365.1 | ) | (136.8 | ) | |||||
Merchandise inventory | (153.0 | ) | (46.8 | ) | 16.9 | ||||||
Other assets | (10.9 | ) | 25.2 | (117.8 | ) | ||||||
Accounts payable-trade | 194.1 | 271.2 | 231.5 | ||||||||
Other liabilities | 248.3 | 117.3 | 66.5 | ||||||||
Net cash provided by operating activities | 1,027.2 | 905.9 | 777.7 | ||||||||
Cash flows used in investing activities: | |||||||||||
Capital expenditures | (236.3 | ) | (86.1 | ) | (81.1 | ) | |||||
Acquisition of businesses, net of cash acquired | (95.1 | ) | — | — | |||||||
Net cash used in investing activities | (331.4 | ) | (86.1 | ) | (81.1 | ) | |||||
Cash flows used in financing activities: | |||||||||||
Proceeds from borrowings under revolving credit facilities | 2,445.5 | 686.7 | 1,560.7 | ||||||||
Repayments of borrowings under revolving credit facilities | (2,394.5 | ) | (686.7 | ) | (1,560.7 | ) | |||||
Repayments of long-term debt | (23.5 | ) | (21.6 | ) | (14.9 | ) | |||||
Proceeds from issuance of long-term debt | 600.0 | — | 2,083.0 | ||||||||
Payments to extinguish long-term debt | (539.0 | ) | — | (2,121.3 | ) | ||||||
Net change in accounts payable-inventory financing | (1.3 | ) | (67.4 | ) | (84.0 | ) | |||||
Repurchases of common stock | (657.2 | ) | (522.3 | ) | (534.0 | ) | |||||
Payment of incentive compensation plan withholding taxes | (21.4 | ) | (33.9 | ) | (49.6 | ) | |||||
Dividend payments | (183.4 | ) | (139.4 | ) | (106.9 | ) | |||||
Other | 25.0 | 29.8 | 9.0 | ||||||||
Net cash used in financing activities | (749.8 | ) | (754.8 | ) | (818.7 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 2.2 | (3.4 | ) | 2.6 | |||||||
Net (decrease) increase in cash and cash equivalents | (51.8 | ) | 61.6 | (119.5 | ) | ||||||
Cash and cash equivalents – beginning of period | 205.8 | 144.2 | 263.7 | ||||||||
Cash and cash equivalents – end of period | $ | 154.0 | $ | 205.8 | $ | 144.2 | |||||
Supplementary disclosure of cash flow information: | |||||||||||
Interest paid | $ | (154.2 | ) | $ | (148.8 | ) | $ | (148.5 | ) | ||
Taxes paid, net | $ | (272.2 | ) | $ | (261.2 | ) | $ | (275.7 | ) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 988.6 | $ | 788.5 | $ | 736.8 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 191.2 | 425.6 | 267.1 | ||||||||||||||
Equity-based compensation expense | 72.6 | 42.5 | 48.5 | ||||||||||||||
Deferred income taxes | (6.7) | (20.2) | (87.9) | ||||||||||||||
Provision for credit losses | (5.4) | 30.9 | 0.8 | ||||||||||||||
Other | (24.1) | 42.1 | 28.2 | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable | (616.8) | (226.4) | (244.8) | ||||||||||||||
Merchandise inventory | (151.0) | (71.4) | (153.0) | ||||||||||||||
Other assets | (134.8) | 18.6 | (10.9) | ||||||||||||||
Accounts payable-trade | 374.5 | 253.7 | 194.1 | ||||||||||||||
Other liabilities | 96.5 | 30.4 | 248.3 | ||||||||||||||
Net cash provided by operating activities | 784.6 | 1,314.3 | 1,027.2 | ||||||||||||||
Cash flows used in investing activities: | |||||||||||||||||
Capital expenditures | (100.0) | (158.0) | (236.3) | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (2,705.6) | (43.0) | (95.1) | ||||||||||||||
Proceeds from the sale of equity method investment | 36.0 | — | — | ||||||||||||||
Net cash used in investing activities | (2,769.6) | (201.0) | (331.4) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from borrowings under revolving credit facilities | 1,619.7 | 1,024.0 | 2,445.5 | ||||||||||||||
Repayments of borrowings under revolving credit facilities | (1,300.5) | (1,075.0) | (2,394.5) | ||||||||||||||
Proceeds from issuance of long-term debt | 3,917.5 | 1,300.0 | 600.0 | ||||||||||||||
Payments to extinguish long-term debt | (1,469.2) | (622.5) | (539.0) | ||||||||||||||
Payments of debt financing fees | (38.1) | (16.2) | (9.5) | ||||||||||||||
Net change in accounts payable-inventory financing | (161.8) | 93.0 | (1.3) | ||||||||||||||
Financing payments for revenue generating assets | (46.1) | (18.1) | — | ||||||||||||||
Repurchases of common stock | (1,500.4) | (340.6) | (657.2) | ||||||||||||||
Proceeds from stock option exercises | 69.9 | 49.2 | 34.9 | ||||||||||||||
Payment of incentive compensation plan withholding taxes | (28.5) | (22.5) | (21.4) | ||||||||||||||
Dividend payments | (234.8) | (219.6) | (183.4) | ||||||||||||||
Other | 5.1 | (12.9) | (23.9) | ||||||||||||||
Net cash provided by (used in) financing activities | 832.8 | 138.8 | (749.8) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | 4.1 | 2.2 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,152.1) | 1,256.2 | (51.8) | ||||||||||||||
Cash and cash equivalents – beginning of period | 1,410.2 | 154.0 | 205.8 | ||||||||||||||
Cash and cash equivalents – end of period | $ | 258.1 | $ | 1,410.2 | $ | 154.0 | |||||||||||
Supplementary disclosure of cash flow information: | |||||||||||||||||
Interest paid | $ | (134.3) | $ | (139.4) | $ | (154.2) | |||||||||||
Income taxes paid, net | $ | (351.0) | $ | (245.6) | $ | (272.2) |
1. Description of Business and Summary of Significant Accounting Policies |
Acquisition-Date Fair Value | ||||
Net assets acquired | $ | 5.7 | ||
Identified intangible assets(1) | 20.3 | |||
Goodwill(2) | 62.0 | |||
Total purchase price | $ | 88.0 |
December 31, | |||||||||
Useful Lives (Years) | 2019 | 2018 | |||||||
Revenue generating assets | Up to 1 | $ | 212.0 | $ | — | ||||
Building and leasehold improvements | 5 - 25 | 134.2 | 129.1 | ||||||
Computer and data processing equipment | 3 - 5 | 132.0 | 105.4 | ||||||
Machinery and equipment | 5 - 10 | 45.4 | 44.1 | ||||||
Land | -* | 27.7 | 27.7 | ||||||
Computer software | 3 - 5 | 25.1 | 22.2 | ||||||
Construction in progress | -* | 23.3 | 24.5 | ||||||
Furniture and fixtures | 5 - 10 | 20.5 | 18.9 | ||||||
Property and equipment, gross | 620.2 | 371.9 | |||||||
Less: accumulated depreciation | (257.1 | ) | (215.8 | ) | |||||
Property and equipment, net | $ | 363.1 | $ | 156.1 |
Corporate | Small Business | Public | Other(1) | Consolidated | ||||||||||||||||
Balances as of December 31, 2017(2) | $ | 1,074.1 | $ | 185.9 | $ | 929.6 | $ | 290.0 | $ | 2,479.6 | ||||||||||
Foreign currency translation | — | — | — | (16.8 | ) | (16.8 | ) | |||||||||||||
Balances as of December 31, 2018(2) | 1,074.1 | 185.9 | 929.6 | 273.2 | 2,462.8 | |||||||||||||||
Scalar acquisition(3) | — | — | — | 62.0 | 62.0 | |||||||||||||||
Other acquisition(4) | 16.5 | — | — | — | 16.5 | |||||||||||||||
Foreign currency translation | — | — | — | 11.7 | 11.7 | |||||||||||||||
Balances as of December 31, 2019(2) | $ | 1,090.6 | $ | 185.9 | $ | 929.6 | $ | 346.9 | $ | 2,553.0 |
December 31, 2019 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Customer relationships and contracts | 3 - 14 | $ | 2,111.2 | $ | (1,786.4 | ) | $ | 324.8 | ||||||
Trade name | generally 20 | 422.8 | (259.0 | ) | 163.8 | |||||||||
Internally developed software | 3 - 5 | 263.5 | (160.0 | ) | 103.5 | |||||||||
Other | 1 - 10 | 5.5 | (3.5 | ) | 2.0 | |||||||||
Total | $ | 2,803.0 | $ | (2,208.9 | ) | $ | 594.1 | |||||||
December 31, 2018 | ||||||||||||||
Customer relationships and contracts | 3 - 14 | $ | 2,071.0 | $ | (1,625.5 | ) | $ | 445.5 | ||||||
Trade name | generally 20 | 422.1 | (237.3 | ) | 184.8 | |||||||||
Internally developed software | 3 - 5 | 205.8 | (125.4 | ) | 80.4 | |||||||||
Other | 1 - 10 | 3.7 | (2.2 | ) | 1.5 | |||||||||
Total | $ | 2,702.6 | $ | (1,990.4 | ) | $ | 712.2 |
Acquisition-Date Fair Value | ||||||||
Cash and cash equivalents | $ | 52.8 | ||||||
Accounts receivable | 646.1 | |||||||
Intangible assets, net | 1,140.5 | |||||||
Goodwill | 1,572.4 | |||||||
Other assets | 444.6 | |||||||
Total assets acquired | 3,856.4 | |||||||
Accounts payable-trade | 643.8 | |||||||
Debt | 170.1 | |||||||
Deferred tax liabilities | 208.6 | |||||||
Other liabilities | 415.6 | |||||||
Total liabilities assumed | 1,438.1 | |||||||
Total preliminary purchase price | $ | 2,418.3 |
Useful Lives (Years) | Acquisition-Date Fair Value | |||||||||||||
Customer relationships | 12 | $ | 1,090.0 | |||||||||||
Trade name | 3 | 50.5 | ||||||||||||
$ | 1,140.5 |
Year Ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Pro forma net sales | $ | 22,793.0 | $ | 20,659.0 | ||||||||||
Pro forma net income | $ | 977.4 | $ | 771.1 |
Years ending December 31, | Estimated Future Amortization Expense | |||
2020 | $ | 206.4 | ||
2021 | 110.4 | |||
2022 | 62.8 | |||
2023 | 41.3 | |||
2024 | 41.1 | |||
Thereafter | 132.1 | |||
Total future amortization expense | $ | 594.1 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Accounts receivable, current | $ | 4,499.4 | $ | 3,212.6 | ||||||||||
Accounts receivable, noncurrent | 197.4 | — | ||||||||||||
Total accounts receivable | $ | 4,696.8 | $ | 3,212.6 |
Balance as of December 31, 2019 | $ | 7.9 | ||||||
Increase to provision for credit losses | 30.9 | |||||||
Write-offs charged against the allowance for credit losses | (10.8) | |||||||
Other | 1.6 | |||||||
Balance as of December 31, 2020 | 29.6 | |||||||
Decrease to provision for credit losses | (5.4) | |||||||
Write-offs charged against the allowance for credit losses | (5.0) | |||||||
Other | 1.2 | |||||||
Balance as of December 31, 2021 | $ | 20.4 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Contract assets(1) | $ | 134.7 | $ | 39.1 | ||||||||||
Contract liabilities(2)(3) | $ | 423.3 | $ | 255.3 |
Within 1 Year | Years 1-2 | Years 2-3 | Thereafter | |||||||||||||||||||||||
Remaining performance obligations | $ | 57.2 | $ | 26.3 | $ | 7.5 | $ | 2.8 |
December 31, | |||||||||||||||||
Useful Lives (Years) | 2021 | 2020 | |||||||||||||||
Computer and data processing equipment | 3 - 5 | $ | 162.1 | $ | 126.5 | ||||||||||||
Building and leasehold improvements | 5 - 25 | 151.3 | 126.8 | ||||||||||||||
Machinery and equipment | 5 - 10 | 44.4 | 43.3 | ||||||||||||||
Computer software | 3 - 5 | 32.9 | 22.9 | ||||||||||||||
Furniture and fixtures | 5 - 10 | 31.0 | 21.2 | ||||||||||||||
Land | -* | 27.7 | 27.7 | ||||||||||||||
Construction in progress | -* | 12.0 | 50.8 | ||||||||||||||
Property and equipment, gross | 461.4 | 419.2 | |||||||||||||||
Less: accumulated depreciation | (265.6) | (243.7) | |||||||||||||||
Property and equipment, net | $ | 195.8 | $ | 175.5 |
Corporate | Small Business | Public | Other(1) | Consolidated | ||||||||||||||||||||||||||||
Balances as of December 31, 2019(2) | $ | 1,090.6 | $ | 185.9 | $ | 929.6 | $ | 346.9 | $ | 2,553.0 | ||||||||||||||||||||||
IGNW, Inc. acquisition | 33.0 | — | — | — | 33.0 | |||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 9.9 | 9.9 | |||||||||||||||||||||||||||
Balances as of December 31, 2020(2) | 1,123.6 | 185.9 | 929.6 | 356.8 | 2,595.9 | |||||||||||||||||||||||||||
Amplified IT acquisition(3) | — | — | 133.8 | — | 133.8 | |||||||||||||||||||||||||||
Focal Point acquisition(3) | — | — | 82.7 | — | 82.7 | |||||||||||||||||||||||||||
Sirius acquisition(3) | 900.6 | 80.2 | 591.6 | — | 1,572.4 | |||||||||||||||||||||||||||
Other acquisition adjustments | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||||||
Foreign currency translation | — | — | — | (2.1) | (2.1) | |||||||||||||||||||||||||||
Balances as of December 31, 2021(2) | $ | 2,024.4 | $ | 266.1 | $ | 1,737.7 | $ | 354.7 | $ | 4,382.9 |
December 31, 2021 | Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||
Customer relationships | 3 - 14 | $ | 3,330.9 | $ | (1,987.8) | $ | 1,343.1 | |||||||||||||||||||
Trade name | 1 - 20 | 472.7 | (302.0) | 170.7 | ||||||||||||||||||||||
Internally developed software | 3 - 5 | 352.0 | (239.8) | 112.2 | ||||||||||||||||||||||
Other | 1 - 10 | 2.5 | (0.4) | 2.1 | ||||||||||||||||||||||
Total | $ | 4,158.1 | $ | (2,530.0) | $ | 1,628.1 | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Customer relationships | 3 - 14 | $ | 2,131.5 | $ | (1,927.9) | $ | 203.6 | |||||||||||||||||||
Trade name | 1 - 20 | 422.8 | (280.1) | 142.7 | ||||||||||||||||||||||
Internally developed software | 3 - 5 | 280.6 | (186.0) | 94.6 | ||||||||||||||||||||||
Other | 1 - 10 | 9.6 | (5.4) | 4.2 | ||||||||||||||||||||||
Total | $ | 2,844.5 | $ | (2,399.4) | $ | 445.1 |
Years ending December 31, | Estimated Future Amortization Expense | |||||||
2022 | $ | 218.7 | ||||||
2023 | 197.9 | |||||||
2024 | 178.1 | |||||||
2025 | 149.9 | |||||||
2026 | 147.9 | |||||||
Thereafter | 735.6 | |||||||
Total future amortization expense | $ | 1,628.1 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revolving Loan inventory financing agreement(1) | $ | 310.1 | $ | 470.1 | ||||||||||
Other inventory financing agreements | 138.2 | 54.5 | ||||||||||||
Accounts payable-inventory financing | $ | 448.3 | $ | 524.6 |
December 31, | ||||||||
2019 | 2018 | |||||||
Revolving Loan inventory financing agreement(1) | $ | 379.1 | $ | 406.3 | ||||
Other inventory financing agreements | 50.8 | 23.0 | ||||||
Accounts payable-inventory financing | $ | 429.9 | $ | 429.3 |
Within 1 Year | Years 1-2 | Years 2-3 | Thereafter | |||||||||||||
Remaining performance obligations | $ | 43.1 | $ | 21.3 | $ | 8.2 | $ | 1.0 |
December 31, 2019 | December 31, 2018 | |||||||||||||
Notional Value | Effective Date | Maturity Date | Fair Value | Fair Value | ||||||||||
$ | 1,400.0 | December 31, 2018 | December 31, 2020 | $ | — | $ | 10.6 | |||||||
1,400.0 | December 31, 2020 | December 31, 2022 | 0.9 | 1.5 | ||||||||||
$ | 0.9 | $ | 12.1 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Change in fair value recorded to AOCL | $ | — | $ | (0.6) | $ | (11.3) | ||||||||||||||
Reclassification from AOCL to Interest expense, net | $ | 2.5 | $ | 6.0 | $ | 1.7 |
As of December 31, 2019 | As of December 31, 2018 | |||||||||||||||
Maturity Date | Interest Rate | Amount | Interest Rate | Amount | ||||||||||||
Credit Facilities | ||||||||||||||||
CDW UK revolving credit facility(1) | July 2021 | — | % | — | — | % | $ | — | ||||||||
Senior secured asset-based revolving credit facility | March 2022 | 5.00 | % | 51.0 | — | % | — | |||||||||
Total credit facilities | 51.0 | — | ||||||||||||||
Term Loans | ||||||||||||||||
CDW UK term loan(1) | August 2021 | 2.19 | % | 61.0 | 2.29 | % | 65.0 | |||||||||
Senior secured term loan facility | October 2026 | 3.55 | % | 1,438.3 | 4.10 | % | 1,453.2 | |||||||||
Total term loans | 1,499.3 | 1,518.2 | ||||||||||||||
Unsecured Senior Notes | ||||||||||||||||
Senior notes due 2023 ("2023 Senior Notes") | September 2023 | — | % | — | 5.00 | % | 525.0 | |||||||||
Senior notes due 2024 ("2024 Senior Notes") | December 2024 | 5.50 | % | 575.0 | 5.50 | % | 575.0 | |||||||||
Senior notes due 2025 ("2025 Senior Notes") | September 2025 | 5.00 | % | 600.0 | 5.00 | % | 600.0 | |||||||||
Senior notes due 2028 ("2028 Senior Notes") | April 2028 | 4.25 | % | 600.0 | — | % | — | |||||||||
Total unsecured senior notes | 1,775.0 | 1,700.0 | ||||||||||||||
Other long-term obligations | 12.6 | 8.3 | ||||||||||||||
Unamortized deferred financing fees | (20.6 | ) | (17.9 | ) | ||||||||||||
Current maturities of long-term debt | (34.1 | ) | (25.3 | ) | ||||||||||||
Total long-term debt | $ | 3,283.2 | $ | 3,183.3 |
As of December 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||
Maturity Date | Interest Rate | Amount | Interest Rate | Amount | ||||||||||||||||||||||||||||
Credit Facility | ||||||||||||||||||||||||||||||||
Senior unsecured revolving loan facility | December 2026 | Variable | $ | 316.4 | Variable | $ | — | |||||||||||||||||||||||||
Term Loans | ||||||||||||||||||||||||||||||||
CDW UK term loan | March 2021 | — | % | — | 1.445 | % | 56.0 | |||||||||||||||||||||||||
Senior unsecured term loan facility | December 2026 | Variable | 1,420.0 | — | % | — | ||||||||||||||||||||||||||
Senior secured term loan facility | December 2021 | — | % | — | 1.900 | % | 1,423.4 | |||||||||||||||||||||||||
Total term loans | 1,420.0 | 1,479.4 | ||||||||||||||||||||||||||||||
Unsecured Senior Notes | ||||||||||||||||||||||||||||||||
Senior notes due 2024 | December 2024 | 5.500 | % | 575.0 | 5.500 | % | 575.0 | |||||||||||||||||||||||||
Senior notes due 2025 | May 2025 | 4.125 | % | 600.0 | 4.125 | % | 600.0 | |||||||||||||||||||||||||
Senior notes due 2028 | April 2028 | 4.250 | % | 600.0 | 4.250 | % | 600.0 | |||||||||||||||||||||||||
Senior notes due 2029 | February 2029 | 3.250 | % | 700.0 | 3.250 | % | 700.0 | |||||||||||||||||||||||||
Senior notes due 2026 | December 2026 | 2.670 | % | 1,000.0 | — | % | — | |||||||||||||||||||||||||
Senior notes due 2028 | December 2028 | 3.276 | % | 500.0 | — | % | — | |||||||||||||||||||||||||
Senior notes due 2031 | December 2031 | 3.569 | % | 1,000.0 | — | % | — | |||||||||||||||||||||||||
Total unsecured senior notes | 4,975.0 | 2,475.0 | ||||||||||||||||||||||||||||||
Receivable financing liability | 179.5 | — | ||||||||||||||||||||||||||||||
Other long-term obligations | 13.6 | — | ||||||||||||||||||||||||||||||
Unamortized deferred financing fees | (46.0) | (27.2) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | (102.7) | (70.9) | ||||||||||||||||||||||||||||||
Total long-term debt | $ | 6,755.8 | $ | 3,856.3 |
Years ending December 31, | Debt Maturities | |||
2020 | $ | 34.1 | ||
2021 | 69.3 | |||
2022 | 65.9 | |||
2023 | 14.9 | |||
2024 | 589.9 | |||
Thereafter | 2,563.8 | |||
Total debt maturities | $ | 3,337.9 |
Years ending December 31, | Debt Maturities | |||||||
2022 | $ | 102.7 | ||||||
2023 | 131.0 | |||||||
2024 | 689.3 | |||||||
2025 | 693.4 | |||||||
2026 | 2,488.1 | |||||||
Thereafter | 2,800.0 | |||||||
Total debt maturities | $ | 6,904.5 |
December 31, | ||||||||
2019 | 2018 | |||||||
Fair value | $ | 3,447.5 | $ | 3,145.8 | ||||
Carrying value | 3,337.9 | 3,226.5 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Fair value | $ | 6,996.0 | $ | 4,077.9 | ||||||||||
Carrying value | 6,904.5 | 3,954.4 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Domestic | $ | 854.1 | $ | 762.3 | $ | 608.3 | ||||||
Foreign | 95.6 | 78.2 | 52.4 | |||||||||
Total | $ | 949.7 | $ | 840.5 | $ | 660.7 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Domestic | $ | 1,186.7 | $ | 934.3 | $ | 854.1 | ||||||||||||||
Foreign | 111.1 | 68.0 | 95.6 | |||||||||||||||||
Total | $ | 1,297.8 | $ | 1,002.3 | $ | 949.7 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 235.6 | $ | 166.5 | $ | 224.7 | ||||||||||||||
State | 52.9 | 49.2 | 56.1 | |||||||||||||||||
Foreign | 27.4 | 18.3 | 20 | |||||||||||||||||
Total current | 315.9 | 234.0 | 300.8 | |||||||||||||||||
Deferred: | ||||||||||||||||||||
Domestic | (8.7) | (18.8) | (83.0) | |||||||||||||||||
Foreign | 2.0 | (1.4) | (4.9) | |||||||||||||||||
Total deferred | (6.7) | (20.2) | (87.9) | |||||||||||||||||
Income tax expense | $ | 309.2 | $ | 213.8 | $ | 212.9 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | 224.7 | $ | 192.6 | $ | 258.9 | ||||||
State | 56.1 | 43.3 | 29.8 | |||||||||
Foreign | 20.0 | 17.7 | 21.3 | |||||||||
Total current | 300.8 | 253.6 | 310.0 | |||||||||
Deferred: | ||||||||||||
Domestic | (83.0 | ) | (52.7 | ) | (167.6 | ) | ||||||
Foreign | (4.9 | ) | (3.4 | ) | (4.8 | ) | ||||||
Total deferred | (87.9 | ) | (56.1 | ) | (172.4 | ) | ||||||
Income tax expense | $ | 212.9 | $ | 197.5 | $ | 137.6 |
Year Ended December 31, | |||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||
Statutory federal income tax rate | $ | 199.4 | 21.0 | % | $ | 176.5 | 21.0 | % | $ | 231.1 | 35.0 | % | |||||||||
State taxes, net of federal effect | 35.4 | 3.7 | 31.1 | 3.7 | 18.3 | 2.8 | |||||||||||||||
Excess tax benefit of equity awards | (26.8 | ) | (2.8 | ) | (19.7 | ) | (2.3 | ) | (36.2 | ) | (5.5 | ) | |||||||||
Effect of rates different than statutory | 0.8 | 0.1 | 0.6 | 0.1 | (6.3 | ) | (1.0 | ) | |||||||||||||
Tax on foreign earnings | 2.1 | 0.2 | 2.8 | 0.3 | 1.0 | 0.1 | |||||||||||||||
Effect of TCJA on deferred taxes and repatriation tax | — | — | (1.9 | ) | (0.2 | ) | (75.5 | ) | (11.4 | ) | |||||||||||
Other | 2.0 | 0.2 | 8.1 | 0.9 | 5.2 | 0.8 | |||||||||||||||
Effective tax rate | $ | 212.9 | 22.4 | % | $ | 197.5 | 23.5 | % | $ | 137.6 | 20.8 | % |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
Statutory federal income tax rate | $ | 272.5 | 21.0 | % | $ | 210.5 | 21.0 | % | $ | 199.4 | 21.0 | % | ||||||||||||||||||||||||||
State taxes, net of federal effect | 50.3 | 3.9 | 36.0 | 3.6 | 35.4 | 3.7 | ||||||||||||||||||||||||||||||||
Excess tax benefit of equity awards | (30.1) | (2.3) | (28.8) | (2.9) | (26.8) | (2.8) | ||||||||||||||||||||||||||||||||
Tax on foreign earnings | 1.7 | 0.1 | 1.0 | 0.1 | 2.1 | 0.2 | ||||||||||||||||||||||||||||||||
Effect of tax law changes | 4.8 | 0.4 | (6.8) | (0.7) | — | — | ||||||||||||||||||||||||||||||||
Other | 10.0 | 0.7 | 1.9 | 0.2 | 2.8 | 0.3 | ||||||||||||||||||||||||||||||||
Effective tax rate | $ | 309.2 | 23.8 | % | $ | 213.8 | 21.3 | % | $ | 212.9 | 22.4 | % |
December 31, | ||||||||
2019 | 2018 | |||||||
Deferred tax assets: | ||||||||
Contract liabilities | $ | 40.7 | $ | — | ||||
Equity compensation plans | 21.1 | 17.7 | ||||||
Net operating loss and credit carryforwards, net | 20.1 | 23.8 | ||||||
Payroll and benefits | 9.6 | 9.3 | ||||||
Rent | 7.3 | 7.5 | ||||||
Accounts receivable | 7.0 | 6.5 | ||||||
Other | 14.1 | 10.0 | ||||||
Total deferred tax assets | 119.9 | 74.8 | ||||||
Deferred tax liabilities: | ||||||||
Acquisition-related intangibles | 112.2 | 148.6 | ||||||
Property and equipment | 27.0 | 20.0 | ||||||
International investments | 19.2 | 19.2 | ||||||
Other | 3.3 | 11.7 | ||||||
Total deferred tax liabilities | 161.7 | 199.5 | ||||||
Deferred tax asset valuation allowance | 16.8 | 17.2 | ||||||
Net deferred tax liabilities | $ | 58.6 | $ | 141.9 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Contract liabilities | $ | 45.3 | $ | 13.2 | ||||||||||
Equity compensation plans | 22.7 | 20.1 | ||||||||||||
Net operating loss and credit carryforwards, net | 28.9 | 22.9 | ||||||||||||
Payroll and benefits | 37.6 | 21.8 | ||||||||||||
Operating lease liabilities | 51.6 | 47.5 | ||||||||||||
Accounts receivable | 18.0 | 26.0 | ||||||||||||
Other | 20.5 | 15.9 | ||||||||||||
Total deferred tax assets | 224.6 | 167.4 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Acquisition-related intangibles | 322.2 | 76.5 | ||||||||||||
Property and equipment | 47.6 | 39.9 | ||||||||||||
International investments | — | 19.2 | ||||||||||||
Operating lease right-of-use assets | 35.6 | 32.5 | ||||||||||||
Other | 26.5 | 23.3 | ||||||||||||
Total deferred tax liabilities | 431.9 | 191.4 | ||||||||||||
Deferred tax asset valuation allowance | 17.0 | 16.9 | ||||||||||||
Net deferred tax liabilities | $ | 224.3 | $ | 40.9 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Balance as of January 1 | $ | 15.1 | $ | — | $ | — | ||||||
Additions for tax positions related to current year | 2.6 | 15.1 | — | |||||||||
Balance as of December 31 | $ | 17.7 | $ | 15.1 | $ | — |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Balance as of January 1 | $ | 18.3 | $ | 17.7 | $ | 15.1 | ||||||||||||||
Additions for tax positions related to current year | 0.1 | 0.1 | 2.6 | |||||||||||||||||
Additions for tax positions related to prior year | — | 0.5 | — | |||||||||||||||||
Balance as of December 31 | $ | 18.4 | $ | 18.3 | $ | 17.7 |
December 31, | ||||||||||||||||||||
Classification on the Consolidated Balance Sheets | 2021 | 2020 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Operating lease right-of-use assets | $ | 155.6 | $ | 130.8 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | Accrued expenses and other current liabilities - Other | $ | 31.7 | $ | 25.6 | |||||||||||||||
Long-term | Long-term operating lease liabilities | 184.2 | 169.0 | |||||||||||||||||
Total lease liabilities | $ | 215.9 | $ | 194.6 | ||||||||||||||||
December 31, | ||||||||||||||||||||
Lease term and discount rate | 2021 | 2020 | ||||||||||||||||||
Weighted average remaining lease term (years) | 9.0 | 10.3 | ||||||||||||||||||
Weighted average discount rate | 3.81 | % | 3.98 | % | ||||||||||||||||
December 31, 2021 | ||||||||
2022 | $ | 39.4 | ||||||
2023 | 34.3 | |||||||
2024 | 28.9 | |||||||
2025 | 27.4 | |||||||
2026 | 24.1 | |||||||
Thereafter | 106.3 | |||||||
Total lease payments | $ | 260.4 | ||||||
Less: Interest | (44.5) | |||||||
Present value of lease liabilities | $ | 215.9 |
Classification on the Consolidated Balance Sheets | December 31, 2019 | |||||
Assets | ||||||
Operating lease right-of-use assets | $ | 131.8 | ||||
Liabilities | ||||||
Current | Accrued expenses and other current liabilities - Other | $ | 30.1 | |||
Long-term | Long-term operating lease liabilities | 131.1 | ||||
Total lease liabilities | $ | 161.2 | ||||
Lease term and discount rate | December 31, 2019 | |||||
Weighted average remaining lease term (years) | 9.7 | |||||
Weighted average discount rate | 4.78 | % |
Financial statement line item | Twelve Months Ended December 31, 2019 | |||
Cost of sales | $ | 62.7 | ||
Selling and administrative expenses | 30.6 | |||
Total lease cost | $ | 93.3 |
December 31, 2019 | ||||
2020 | $ | 32.2 | ||
2021 | 27.9 | |||
2022 | 23.0 | |||
2023 | 19.9 | |||
2024 | 17.7 | |||
Thereafter | 156.6 | |||
Total lease payments | $ | 277.3 | ||
Less: Interest | (80.9 | ) | ||
Less: Lease incentives (1) | (35.2 | ) | ||
Present value of lease liabilities | $ | 161.2 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||
Operating cash flows from operating leases | $ | 35.9 | $ | 35.8 | $ | 88.0 | |||||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||||||||
Operating leases(1) | $ | 49.8 | $ | 26.7 | $ | 110.2 |
Twelve Months Ended December 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | 88.0 | ||
Right-of-use assets obtained in exchange for lease obligations | ||||
Operating leases | $ | 110.2 |
December 31, 2018 | ||||
2019 | $ | 29.7 | ||
2020 | 27.0 | |||
2021 | 22.7 | |||
2022 | 19.5 | |||
2023 | 17.2 | |||
Thereafter | 148.6 | |||
Total future minimum lease payments | $ | 264.7 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Equity-based compensation expense | $ | 48.5 | $ | 40.7 | $ | 43.7 | ||||||
Income tax benefit(1) | (9.8 | ) | (9.9 | ) | (15.3 | ) | ||||||
Equity-based compensation expense, net of tax | $ | 38.7 | $ | 30.8 | $ | 28.4 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Equity-based compensation expense | $ | 72.6 | $ | 42.5 | $ | 48.5 | ||||||||||||||
Income tax benefit(1) | (12.2) | (7.7) | (9.8) | |||||||||||||||||
Equity-based compensation expense, net of tax | $ | 60.4 | $ | 34.8 | $ | 38.7 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Grant date fair value | $ | 40.83 | $ | 20.46 | $ | 19.26 | ||||||||||||||
Volatility (1) | 30.00 | % | 25.50 | % | 20.00 | % | ||||||||||||||
Risk-free rate (2) | 0.93 | % | 0.51 | % | 2.53 | % | ||||||||||||||
Expected dividend yield | 1.03 | % | 1.52 | % | 1.23 | % | ||||||||||||||
Expected term (in years) (3) | 5.6 | 6.0 | 6.0 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Grant date fair value | $ | 19.26 | $ | 14.80 | $ | 12.27 | ||||||
Volatility (1) | 20.00 | % | 20.00 | % | 22.00 | % | ||||||
Risk-free rate (2) | 2.53 | % | 2.75 | % | 2.08 | % | ||||||
Expected dividend yield | 1.23 | % | 1.14 | % | 1.09 | % | ||||||
Expected term (in years) (3) | 6.0 | 6.0 | 6.0 |
Options | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||||||||||||||
Outstanding at January 1, 2021 | 3,965,452 | $ | 73.71 | |||||||||||||||||||||||
Granted | 545,359 | 156.30 | ||||||||||||||||||||||||
Forfeited/Expired | (58,446) | 109.68 | ||||||||||||||||||||||||
Exercised(1) | (1,097,099) | 63.76 | ||||||||||||||||||||||||
Outstanding at December 31, 2021 | 3,355,266 | $ | 89.76 | 6.66 | $ | 385.9 | ||||||||||||||||||||
Vested and exercisable at December 31, 2021 | 1,959,076 | $ | 66.97 | 5.45 | $ | 270.0 | ||||||||||||||||||||
Expected to vest after December 31, 2021 | 1,377,326 | $ | 121.56 | 8.35 | $ | 114.6 |
Options | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Outstanding at January 1, 2019 | 4,480,772 | $ | 46.82 | ||||||||||
Granted | 786,601 | 96.24 | |||||||||||
Forfeited/Expired | (63,947 | ) | 74.56 | ||||||||||
Exercised(1) | (1,065,184 | ) | 32.80 | ||||||||||
Outstanding at December 31, 2019 | 4,138,242 | $ | 59.39 | 6.17 | $ | 345.3 | |||||||
Vested and exercisable at December 31, 2019 | 2,364,405 | $ | 43.61 | 4.99 | $ | 234.6 | |||||||
Expected to vest after December 31, 2019 | 1,752,687 | $ | 80.34 | 7.72 | $ | 109.5 |
Number of Units | Weighted-Average Grant-Date Fair Value | |||||||||||||
Non-vested at January 1, 2021 | 92,436 | $ | 107.88 | |||||||||||
Granted (1) | 373,530 | 172.96 | ||||||||||||
Vested (2) | (20,340) | 101.06 | ||||||||||||
Forfeited | (8,102) | 160.90 | ||||||||||||
Non-vested at December 31, 2021 | 437,524 | $ | 163.82 |
Number of Units | Weighted-Average Grant-Date Fair Value | ||||||
Non-vested at January 1, 2019 | 260,173 | $ | 59.56 | ||||
Granted (1) | 58,577 | 103.24 | |||||
Vested (2) | (88,097 | ) | 44.62 | ||||
Forfeited | (21,275 | ) | 78.52 | ||||
Non-vested at December 31, 2019 | 209,378 | $ | 75.56 |
Number of Units | Weighted-Average Grant-Date Fair Value | |||||||||||||
Non-vested at January 1, 2021 | 421,164 | $ | 102.07 | |||||||||||
Granted (1) | 147,133 | 154.37 | ||||||||||||
Attainment adjustment (2) | 163,807 | 73.68 | ||||||||||||
Vested (3) | (324,323) | 86.17 | ||||||||||||
Forfeited | (20,577) | 105.34 | ||||||||||||
Non-vested at December 31, 2021 | 387,204 | $ | 123.05 |
Number of Units | Weighted-Average Grant-Date Fair Value | ||||||
Non-vested at January 1, 2019 | 421,837 | $ | 65.85 | ||||
Granted (1) | 201,441 | 101.33 | |||||
Attainment Adjustment (2) | 129,498 | 39.92 | |||||
Vested (3) | (350,816 | ) | 52.16 | ||||
Forfeited | (20,055 | ) | 72.96 | ||||
Non-vested at December 31, 2019 | 381,905 | $ | 87.78 |
(1)The weighted-average grant date fair value of PSUs granted during |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Basic weighted-average shares outstanding | 138.5 | 142.6 | 145.1 | |||||||||||||||||
Effect of dilutive securities (1) | 2.0 | 2.2 | 2.7 | |||||||||||||||||
Diluted weighted-average shares outstanding (2) | 140.5 | 144.8 | 147.8 |
Year Ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||
Basic weighted-average shares outstanding | 145.1 | 150.9 | 155.4 | ||||||
Effect of dilutive securities (1) | 2.7 | 2.7 | 2.8 | ||||||
Diluted weighted-average shares outstanding (2) | 147.8 | 153.6 | 158.2 |
Corporate | Small Business | Public | Other | Headquarters | Total | |||||||||||||||||||
2019: | ||||||||||||||||||||||||
Net sales | $ | 7,499.0 | $ | 1,510.3 | $ | 6,864.8 | $ | 2,158.3 | $ | — | $ | 18,032.4 | ||||||||||||
Operating income (loss) | 585.1 | 107.5 | 475.0 | 101.6 | (135.6 | ) | 1,133.6 | |||||||||||||||||
Depreciation and amortization expense | (86.9 | ) | (22.5 | ) | (56.3 | ) | (31.2 | ) | (70.2 | ) | (267.1 | ) | ||||||||||||
2018: | ||||||||||||||||||||||||
Net sales | $ | 6,842.5 | $ | 1,359.6 | $ | 6,154.7 | $ | 1,883.7 | $ | — | $ | 16,240.5 | ||||||||||||
Operating income (loss) | 530.4 | 94.4 | 405.0 | 82.2 | (124.7 | ) | 987.3 | |||||||||||||||||
Depreciation and amortization expense | (88.2 | ) | (22.1 | ) | (51.2 | ) | (31.8 | ) | (72.3 | ) | (265.6 | ) | ||||||||||||
2017: | ||||||||||||||||||||||||
Net sales | $ | 6,172.8 | $ | 1,220.5 | $ | 5,906.5 | $ | 1,533.1 | $ | — | $ | 14,832.9 | ||||||||||||
Operating income (loss) | 480.9 | 73.0 | 367.7 | 57.1 | (112.2 | ) | 866.5 | |||||||||||||||||
Depreciation and amortization expense | (90.1 | ) | (22.0 | ) | (51.5 | ) | (30.9 | ) | (66.4 | ) | (260.9 | ) |
Corporate | Small Business | Public | Other | Headquarters | Total | |||||||||||||||||||||||||||||||||
2021: | ||||||||||||||||||||||||||||||||||||||
Net sales | $ | 8,179.7 | $ | 1,870.1 | $ | 8,183.6 | $ | 2,587.4 | $ | — | $ | 20,820.8 | ||||||||||||||||||||||||||
Operating income (loss) | 697.3 | 167.7 | 606.7 | 115.8 | (168.5) | 1,419.0 | ||||||||||||||||||||||||||||||||
Depreciation and amortization expense | (22.9) | (4.1) | (57.2) | (34.4) | (72.6) | (191.2) | ||||||||||||||||||||||||||||||||
2020: | ||||||||||||||||||||||||||||||||||||||
Net sales | $ | 6,846.0 | $ | 1,397.1 | $ | 8,137.7 | $ | 2,086.7 | $ | — | $ | 18,467.5 | ||||||||||||||||||||||||||
Operating income (loss) | 489.5 | 99.0 | 678.2 | 65.9 | (153.4) | 1,179.2 | ||||||||||||||||||||||||||||||||
Depreciation and amortization expense | (73.2) | (18.3) | (229.7) | (32.5) | (71.9) | (425.6) | ||||||||||||||||||||||||||||||||
2019: | ||||||||||||||||||||||||||||||||||||||
Net sales | $ | 7,499.0 | $ | 1,510.3 | $ | 6,864.8 | $ | 2,158.3 | $ | — | $ | 18,032.4 | ||||||||||||||||||||||||||
Operating income (loss) | 585.1 | 107.5 | 475.0 | 101.6 | (135.6) | 1,133.6 | ||||||||||||||||||||||||||||||||
Depreciation and amortization expense | (86.9) | (22.5) | (56.3) | (31.2) | (70.2) | (267.1) |
Year Ended December 31, 2019 | |||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||
Geography(1) | |||||||||||||||||||
United States | $ | 7,485.7 | $ | 1,510.3 | $ | 6,864.8 | $ | 32.5 | $ | 15,893.3 | |||||||||
Rest of World | 13.3 | — | — | 2,125.8 | 2,139.1 | ||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||
Major Product and Services | |||||||||||||||||||
Hardware | 5,955.5 | 1,263.2 | 5,584.8 | 1,559.7 | 14,363.2 | ||||||||||||||
Software | 1,079.4 | 197.5 | 1,059.4 | 300.9 | 2,637.2 | ||||||||||||||
Services | 393.8 | 28.4 | 199.3 | 286.1 | 907.6 | ||||||||||||||
Other(2) | 70.3 | 21.2 | 21.3 | 11.6 | 124.4 | ||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||
Sales by Channel | |||||||||||||||||||
Corporate | 7,499.0 | — | — | — | 7,499.0 | ||||||||||||||
Small Business | — | 1,510.3 | — | — | 1,510.3 | ||||||||||||||
Government | — | — | 2,519.3 | — | 2,519.3 | ||||||||||||||
Education | — | — | 2,411.6 | — | 2,411.6 | ||||||||||||||
Healthcare | — | — | 1,933.9 | — | 1,933.9 | ||||||||||||||
Other | — | — | — | 2,158.3 | 2,158.3 | ||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||
Transferred at a point in time where CDW is principal | 6,818.7 | 1,423.1 | 6,410.2 | 1,900.6 | 16,552.6 | ||||||||||||||
Transferred at a point in time where CDW is agent | 446.1 | 80.0 | 248.5 | 59.6 | 834.2 | ||||||||||||||
Transferred over time where CDW is principal | 234.2 | 7.2 | 206.1 | 198.1 | 645.6 | ||||||||||||||
Total Net sales | $ | 7,499.0 | $ | 1,510.3 | $ | 6,864.8 | $ | 2,158.3 | $ | 18,032.4 |
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geography(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 8,165.4 | $ | 1,870.1 | $ | 8,183.6 | $ | 19.7 | $ | 18,238.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 14.3 | — | — | 2,567.7 | 2,582.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 8,179.7 | 1,870.1 | 8,183.6 | 2,587.4 | 20,820.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Product and Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hardware | 6,427.9 | 1,587.9 | 6,827.1 | 1,926.7 | 16,769.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | 1,172.4 | 211.0 | 1,017.3 | 401.7 | 2,802.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Services | 510.1 | 49.1 | 321.5 | 245.4 | 1,126.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(2) | 69.3 | 22.1 | 17.7 | 13.6 | 122.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 8,179.7 | 1,870.1 | 8,183.6 | 2,587.4 | 20,820.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 8,179.7 | — | — | — | 8,179.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Small Business | — | 1,870.1 | — | — | 1,870.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | — | — | 2,155.6 | — | 2,155.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | — | — | 4,108.7 | — | 4,108.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | 1,919.3 | — | 1,919.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 2,587.4 | 2,587.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 8,179.7 | 1,870.1 | 8,183.6 | 2,587.4 | 20,820.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is principal | 7,332.3 | 1,734.7 | 7,634.3 | 2,288.7 | 18,990.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is agent | 517.5 | 112.3 | 336.6 | 83.2 | 1,049.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over time where CDW is principal | 329.9 | 23.1 | 212.7 | 215.5 | 781.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | $ | 8,179.7 | $ | 1,870.1 | $ | 8,183.6 | $ | 2,587.4 | $ | 20,820.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||
Geography(1) | |||||||||||||||||||
United States | $ | 6,834.4 | $ | 1,359.6 | $ | 6,154.7 | $ | 30.9 | $ | 14,379.6 | |||||||||
Rest of World | 8.1 | — | — | 1,852.8 | 1,860.9 | ||||||||||||||
Total Net sales | 6,842.5 | 1,359.6 | 6,154.7 | 1,883.7 | 16,240.5 | ||||||||||||||
Major Product and Services | |||||||||||||||||||
Hardware | 5,462.1 | 1,134.6 | 5,010.4 | 1,492.0 | 13,099.1 | ||||||||||||||
Software | 976.2 | 175.8 | 965.9 | 214.0 | 2,331.9 | ||||||||||||||
Services | 336.9 | 28.1 | 161.8 | 169.0 | 695.8 | ||||||||||||||
Other(2) | 67.3 | 21.1 | 16.6 | 8.7 | 113.7 | ||||||||||||||
Total Net sales | 6,842.5 | 1,359.6 | 6,154.7 | 1,883.7 | 16,240.5 | ||||||||||||||
Sales by Channel | |||||||||||||||||||
Corporate | 6,842.5 | — | — | — | 6,842.5 | ||||||||||||||
Small Business | — | 1,359.6 | — | — | 1,359.6 | ||||||||||||||
Government | — | — | 2,097.3 | — | 2,097.3 | ||||||||||||||
Education | — | — | 2,327.4 | — | 2,327.4 | ||||||||||||||
Healthcare | — | — | 1,730.0 | — | 1,730.0 | ||||||||||||||
Other | — | — | — | 1,883.7 | 1,883.7 | ||||||||||||||
Total Net sales | 6,842.5 | 1,359.6 | 6,154.7 | 1,883.7 | 16,240.5 | ||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||
Transferred at a point in time where CDW is principal | 6,256.5 | 1,281.3 | 5,758.6 | 1,687.6 | 14,984.0 | ||||||||||||||
Transferred at a point in time where CDW is agent | 389.1 | 69.4 | 211.5 | 49.8 | 719.8 | ||||||||||||||
Transferred over time where CDW is principal | 196.9 | 8.9 | 184.6 | 146.3 | 536.7 | ||||||||||||||
Total Net sales | $ | 6,842.5 | $ | 1,359.6 | $ | 6,154.7 | $ | 1,883.7 | $ | 16,240.5 |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geography(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 6,823.6 | $ | 1,397.1 | $ | 8,137.7 | $ | 20.8 | $ | 16,379.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 22.4 | — | — | 2,065.9 | 2,088.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 6,846.0 | 1,397.1 | 8,137.7 | 2,086.7 | 18,467.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Product and Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hardware | 5,289.2 | 1,156.1 | 6,844.0 | 1,544.1 | 14,833.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | 1,088.3 | 189.3 | 982.8 | 320.6 | 2,581.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Services | 400.8 | 31.5 | 269.8 | 211.8 | 913.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(2) | 67.7 | 20.2 | 41.1 | 10.2 | 139.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 6,846.0 | 1,397.1 | 8,137.7 | 2,086.7 | 18,467.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 6,846.0 | — | — | — | 6,846.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Small Business | — | 1,397.1 | — | — | 1,397.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | — | — | 2,978.5 | — | 2,978.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | — | — | 3,458.1 | — | 3,458.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | 1,701.1 | — | 1,701.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 2,086.7 | 2,086.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 6,846.0 | 1,397.1 | 8,137.7 | 2,086.7 | 18,467.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is principal | 6,140.7 | 1,301.3 | 7,477.4 | 1,835.5 | 16,754.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is agent | 457.4 | 84.5 | 292.5 | 61.6 | 896.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over time where CDW is principal | 247.9 | 11.3 | 367.8 | 189.6 | 816.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | $ | 6,846.0 | $ | 1,397.1 | $ | 8,137.7 | $ | 2,086.7 | $ | 18,467.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||
Geography(1) | |||||||||||||||||||
United States | $ | 6,167.4 | $ | 1,220.5 | $ | 5,906.5 | $ | 25.5 | $ | 13,319.9 | |||||||||
Rest of World | 5.4 | — | — | 1,507.6 | 1,513.0 | ||||||||||||||
Total Net sales | 6,172.8 | 1,220.5 | 5,906.5 | 1,533.1 | 14,832.9 | ||||||||||||||
Major Product and Services | |||||||||||||||||||
Hardware | 4,879.7 | 1,015.9 | 4,846.4 | 1,229.8 | 11,971.8 | ||||||||||||||
Software | 910.4 | 159.7 | 908.3 | 167.0 | 2,145.4 | ||||||||||||||
Services | 316.2 | 24.5 | 133.6 | 128.5 | 602.8 | ||||||||||||||
Other(2) | 66.5 | 20.4 | 18.2 | 7.8 | 112.9 | ||||||||||||||
Total Net sales | 6,172.8 | 1,220.5 | 5,906.5 | 1,533.1 | 14,832.9 | ||||||||||||||
Sales by Channel | |||||||||||||||||||
Corporate | 6,172.8 | — | — | — | 6,172.8 | ||||||||||||||
Small Business | — | 1,220.5 | — | — | 1,220.5 | ||||||||||||||
Government | — | — | 2,109.8 | — | 2,109.8 | ||||||||||||||
Education | — | — | 2,184.5 | — | 2,184.5 | ||||||||||||||
Healthcare | — | — | 1,612.2 | — | 1,612.2 | ||||||||||||||
Other | — | — | — | 1,533.1 | 1,533.1 | ||||||||||||||
Total Net sales | 6,172.8 | 1,220.5 | 5,906.5 | 1,533.1 | 14,832.9 | ||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||
Transferred at a point in time where CDW is principal | 5,640.9 | 1,152.5 | 5,559.4 | 1,375.7 | 13,728.5 | ||||||||||||||
Transferred at a point in time where CDW is agent | 344.2 | 59.4 | 184.1 | 27.9 | 615.6 | ||||||||||||||
Transferred over time where CDW is principal | 187.7 | 8.6 | 163.0 | 129.5 | 488.8 | ||||||||||||||
Total Net sales | $ | 6,172.8 | $ | 1,220.5 | $ | 5,906.5 | $ | 1,533.1 | $ | 14,832.9 |
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Small Business | Public | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geography(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 7,485.7 | $ | 1,510.3 | $ | 6,864.8 | $ | 32.5 | $ | 15,893.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 13.3 | — | — | 2,125.8 | 2,139.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Product and Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hardware | 5,963.7 | 1,264.7 | 5,624.9 | 1,628.9 | 14,482.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | 1,069.2 | 196.0 | 1,019.6 | 300.2 | 2,585.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Services | 395.8 | 28.5 | 199.0 | 217.6 | 840.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(2) | 70.3 | 21.1 | 21.3 | 11.6 | 124.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales by Channel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 7,499.0 | — | — | — | 7,499.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Small Business | — | 1,510.3 | — | — | 1,510.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | — | — | 2,519.3 | — | 2,519.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | — | — | 2,411.6 | — | 2,411.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | — | — | 1,933.9 | — | 1,933.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 2,158.3 | 2,158.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | 7,499.0 | 1,510.3 | 6,864.8 | 2,158.3 | 18,032.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is principal | 6,818.7 | 1,423.1 | 6,410.2 | 1,900.6 | 16,552.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at a point in time where CDW is agent | 446.1 | 80.0 | 248.5 | 59.6 | 834.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over time where CDW is principal | 234.2 | 7.2 | 206.1 | 198.1 | 645.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net sales | $ | 7,499.0 | $ | 1,510.3 | $ | 6,864.8 | $ | 2,158.3 | $ | 18,032.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018(1) | 2017(1) | ||||||||||||||||||
Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | |||||||||||||||
Notebooks/Mobile Devices | $ | 4,631.7 | 25.7 | % | $ | 4,062.2 | 25.0 | % | $ | 3,491.8 | 23.5 | % | ||||||||
Netcomm Products | 2,193.4 | 12.2 | 2,119.1 | 13.0 | 2,021.6 | 13.6 | ||||||||||||||
Desktops | 1,598.2 | 8.9 | 1,322.2 | 8.1 | 1,196.0 | 8.1 | ||||||||||||||
Video | 1,272.7 | 7.1 | 1,184.3 | 7.3 | 1,070.0 | 7.2 | ||||||||||||||
Enterprise and Data Storage (Including Drives) | 1,146.0 | 6.4 | 1,102.5 | 6.8 | 1,070.2 | 7.2 | ||||||||||||||
Other Hardware | 3,521.2 | 19.5 | 3,308.8 | 20.4 | 3,122.2 | 21.0 | ||||||||||||||
Total Hardware | 14,363.2 | 79.8 | 13,099.1 | 80.6 | 11,971.8 | 80.6 | ||||||||||||||
Software(2) | 2,637.2 | 14.6 | 2,331.9 | 14.4 | 2,145.4 | 14.5 | ||||||||||||||
Services(2) | 907.6 | 5.0 | 695.8 | 4.3 | 602.8 | 4.1 | ||||||||||||||
Other(3) | 124.4 | 0.6 | 113.7 | 0.7 | 112.9 | 0.8 | ||||||||||||||
Total Net sales | $ | 18,032.4 | 100.0 | % | $ | 16,240.5 | 100.0 | % | $ | 14,832.9 | 100.0 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | Net Sales | Percentage of Total Net Sales | ||||||||||||||||||||||||||||||
Notebooks/Mobile Devices | $ | 6,659.4 | 32.0 | % | $ | 5,486.2 | 29.7 | % | $ | 4,344.9 | 24.1 | % | |||||||||||||||||||||||
Netcomm Products | 1,950.9 | 9.4 | 1,955.0 | 10.6 | 2,189.1 | 12.1 | |||||||||||||||||||||||||||||
Desktops | 1,203.6 | 5.8 | 1,132.4 | 6.1 | 1,547.3 | 8.6 | |||||||||||||||||||||||||||||
Video | 1,605.0 | 7.7 | 1,190.8 | 6.4 | 1,272.9 | 7.1 | |||||||||||||||||||||||||||||
Enterprise and Data Storage (Including Drives) | 992.1 | 4.8 | 947.4 | 5.1 | 1,147.6 | 6.4 | |||||||||||||||||||||||||||||
Other Hardware | 4,358.6 | 20.9 | 4,121.6 | 22.3 | 3,980.4 | 22.1 | |||||||||||||||||||||||||||||
Total Hardware | 16,769.6 | 80.6 | 14,833.4 | 80.2 | 14,482.2 | 80.4 | |||||||||||||||||||||||||||||
Software(1) | 2,802.4 | 13.5 | 2,581.0 | 14.0 | 2,585.0 | 14.3 | |||||||||||||||||||||||||||||
Services(1) | 1,126.1 | 5.4 | 913.9 | 4.9 | 840.9 | 4.7 | |||||||||||||||||||||||||||||
Other(2) | 122.7 | 0.5 | 139.2 | 0.9 | 124.3 | 0.6 | |||||||||||||||||||||||||||||
Total Net sales | $ | 20,820.8 | 100.0 | % | $ | 18,467.5 | 100.0 | % | $ | 18,032.4 | 100.0 | % |
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 73.9 | $ | — | $ | 98.9 | $ | — | $ | (18.8 | ) | $ | 154.0 | ||||||||||||
Accounts receivable, net | — | — | 2,517.0 | 485.2 | — | — | 3,002.2 | ||||||||||||||||||||
Merchandise inventory | — | — | 524.9 | 86.3 | — | — | 611.2 | ||||||||||||||||||||
Miscellaneous receivables | — | 97.9 | 265.9 | 31.3 | — | — | 395.1 | ||||||||||||||||||||
Prepaid expenses and other | — | 22.1 | 99.9 | 49.6 | — | — | 171.6 | ||||||||||||||||||||
Total current assets | — | 193.9 | 3,407.7 | 751.3 | — | (18.8 | ) | 4,334.1 | |||||||||||||||||||
Operating lease right-of-use assets | — | 75.4 | 29.1 | 27.3 | — | — | 131.8 | ||||||||||||||||||||
Property and equipment, net | — | 73.3 | 259.0 | 30.8 | — | — | 363.1 | ||||||||||||||||||||
Goodwill | — | 751.8 | 1,454.3 | 346.9 | — | — | 2,553.0 | ||||||||||||||||||||
Other intangible assets, net | — | 242.9 | 177.6 | 173.6 | — | — | 594.1 | ||||||||||||||||||||
Other assets | 1.4 | 25.7 | 20.1 | 171.9 | — | (195.8 | ) | 23.3 | |||||||||||||||||||
Investment in and advances to subsidiaries | 958.9 | 3,342.9 | — | — | — | (4,301.8 | ) | — | |||||||||||||||||||
Total Assets | $ | 960.3 | $ | 4,705.9 | $ | 5,347.8 | $ | 1,501.8 | $ | — | $ | (4,516.4 | ) | $ | 7,999.4 | ||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable-trade | $ | — | $ | 46.5 | $ | 1,525.7 | $ | 281.6 | $ | — | $ | (18.8 | ) | $ | 1,835.0 | ||||||||||||
Accounts payable-inventory financing | — | 0.1 | 378.9 | 50.9 | — | — | 429.9 | ||||||||||||||||||||
Current maturities of long-term debt | — | 14.9 | 12.4 | 6.8 | — | — | 34.1 | ||||||||||||||||||||
Contract liabilities | — | — | 146.4 | 105.8 | — | — | 252.2 | ||||||||||||||||||||
Accrued expenses and other current liabilities | — | 291.3 | 559.1 | 89.8 | — | — | 940.2 | ||||||||||||||||||||
Total current liabilities | — | 352.8 | 2,622.5 | 534.9 | — | (18.8 | ) | 3,491.4 | |||||||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||||||
Debt | — | 3,229.5 | — | 53.7 | — | — | 3,283.2 | ||||||||||||||||||||
Deferred income taxes | — | 49.7 | — | 29.9 | — | (17.2 | ) | 62.4 | |||||||||||||||||||
Operating lease liabilities | — | 84.9 | 22.9 | 23.3 | — | — | 131.1 | ||||||||||||||||||||
Other liabilities | — | 30.1 | 0.7 | 218.8 | — | (178.6 | ) | 71.0 | |||||||||||||||||||
Total long-term liabilities | — | 3,394.2 | 23.6 | 325.7 | — | (195.8 | ) | 3,547.7 | |||||||||||||||||||
Total stockholders' equity | 960.3 | 958.9 | 2,701.7 | 641.2 | — | (4,301.8 | ) | 960.3 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 960.3 | $ | 4,705.9 | $ | 5,347.8 | $ | 1,501.8 | $ | — | $ | (4,516.4 | ) | $ | 7,999.4 |
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 176.0 | $ | — | $ | 46.7 | $ | — | $ | (16.9 | ) | $ | 205.8 | ||||||||||||
Accounts receivable, net | — | — | 2,331.2 | 340.0 | — | — | 2,671.2 | ||||||||||||||||||||
Merchandise inventory | — | — | 387.4 | 66.9 | — | — | 454.3 | ||||||||||||||||||||
Miscellaneous receivables | — | 110.6 | 187.7 | 18.1 | — | — | 316.4 | ||||||||||||||||||||
Prepaid expenses and other | — | 17.1 | 93.8 | 38.2 | — | — | 149.1 | ||||||||||||||||||||
Total current assets | — | 303.7 | 3,000.1 | 509.9 | — | (16.9 | ) | 3,796.8 | |||||||||||||||||||
Property and equipment, net | — | 82.3 | 52.0 | 21.8 | — | — | 156.1 | ||||||||||||||||||||
Goodwill | — | 751.8 | 1,437.8 | 273.2 | — | — | 2,462.8 | ||||||||||||||||||||
Other intangible assets, net | — | 252.5 | 300.0 | 159.7 | — | — | 712.2 | ||||||||||||||||||||
Other assets | 1.4 | 49.8 | 9.6 | 140.2 | — | (161.2 | ) | 39.8 | |||||||||||||||||||
Investment in and advances to subsidiaries | 973.8 | 3,028.9 | — | — | — | (4,002.7 | ) | — | |||||||||||||||||||
Total Assets | $ | 975.2 | $ | 4,469.0 | $ | 4,799.5 | $ | 1,104.8 | $ | — | $ | (4,180.8 | ) | $ | 7,167.7 | ||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable-trade | $ | — | $ | 39.2 | $ | 1,387.9 | $ | 166.9 | $ | — | $ | (16.9 | ) | $ | 1,577.1 | ||||||||||||
Accounts payable-inventory financing | — | 0.2 | 406.1 | 23.0 | — | — | 429.3 | ||||||||||||||||||||
Current maturities of long-term debt | — | 14.9 | 4.0 | 6.4 | — | — | 25.3 | ||||||||||||||||||||
Contract liabilities | — | — | 95.6 | 82.7 | — | — | 178.3 | ||||||||||||||||||||
Accrued expenses and other current liabilities | — | 217.6 | 306.7 | 68.8 | — | — | 593.1 | ||||||||||||||||||||
Total current liabilities | — | 271.9 | 2,200.3 | 347.8 | — | (16.9 | ) | 2,803.1 | |||||||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||||||
Debt | — | 3,121.3 | 4.3 | 57.7 | — | — | 3,183.3 | ||||||||||||||||||||
Deferred income taxes | — | 55.9 | 60.5 | 26.9 | — | (1.4 | ) | 141.9 | |||||||||||||||||||
Other liabilities | — | 46.1 | 5.7 | 172.2 | — | (159.8 | ) | 64.2 | |||||||||||||||||||
Total long-term liabilities | — | 3,223.3 | 70.5 | 256.8 | — | (161.2 | ) | 3,389.4 | |||||||||||||||||||
Total stockholders' equity | 975.2 | 973.8 | 2,528.7 | 500.2 | — | (4,002.7 | ) | 975.2 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 975.2 | $ | 4,469.0 | $ | 4,799.5 | $ | 1,104.8 | $ | — | $ | (4,180.8 | ) | $ | 7,167.7 |
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 15,874.1 | $ | 2,158.3 | $ | — | $ | — | $ | 18,032.4 | |||||||||||||
Cost of sales | — | — | 13,207.3 | 1,785.2 | — | — | 14,992.5 | ||||||||||||||||||||
Gross profit | — | — | 2,666.8 | 373.1 | — | — | 3,039.9 | ||||||||||||||||||||
Selling and administrative expenses | — | 136.4 | 1,317.5 | 259.2 | — | — | 1,713.1 | ||||||||||||||||||||
Advertising expense | — | — | 180.8 | 12.4 | — | — | 193.2 | ||||||||||||||||||||
Operating income (loss) | — | (136.4 | ) | 1,168.5 | 101.5 | — | — | 1,133.6 | |||||||||||||||||||
Interest (expense) income, net | — | (158.1 | ) | 0.3 | (1.6 | ) | — | — | (159.4 | ) | |||||||||||||||||
Other (expense) income, net | — | (21.9 | ) | 2.1 | (4.7 | ) | — | — | (24.5 | ) | |||||||||||||||||
Income (loss) before income taxes | — | (316.4 | ) | 1,170.9 | 95.2 | — | — | 949.7 | |||||||||||||||||||
Income tax (expense) benefit | — | 87.4 | (285.2 | ) | (15.1 | ) | — | — | (212.9 | ) | |||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | — | (229.0 | ) | 885.7 | 80.1 | — | — | 736.8 | |||||||||||||||||||
Equity in earnings of subsidiaries | 736.8 | 965.8 | — | — | — | (1,702.6 | ) | — | |||||||||||||||||||
Net income | $ | 736.8 | $ | 736.8 | $ | 885.7 | $ | 80.1 | $ | — | $ | (1,702.6 | ) | $ | 736.8 |
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 14,356.8 | $ | 1,883.7 | $ | — | $ | — | $ | 16,240.5 | |||||||||||||
Cost of sales | — | — | 11,962.7 | 1,570.9 | — | — | 13,533.6 | ||||||||||||||||||||
Gross profit | — | — | 2,394.1 | 312.8 | — | — | 2,706.9 | ||||||||||||||||||||
Selling and administrative expenses | — | 138.3 | 1,176.8 | 222.0 | — | — | 1,537.1 | ||||||||||||||||||||
Advertising expense | — | — | 173.9 | 8.6 | — | — | 182.5 | ||||||||||||||||||||
Operating income (loss) | — | (138.3 | ) | 1,043.4 | 82.2 | — | — | 987.3 | |||||||||||||||||||
Interest (expense) income, net | — | (146.7 | ) | 3.5 | (5.4 | ) | — | — | (148.6 | ) | |||||||||||||||||
Other income (expense), net | — | (0.2 | ) | 0.7 | 1.3 | — | — | 1.8 | |||||||||||||||||||
Income (loss) before income taxes | — | (285.2 | ) | 1,047.6 | 78.1 | — | — | 840.5 | |||||||||||||||||||
Income tax (expense) benefit | (0.4 | ) | 67.0 | (249.8 | ) | (14.3 | ) | — | — | (197.5 | ) | ||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (0.4 | ) | (218.2 | ) | 797.8 | 63.8 | — | — | 643.0 | ||||||||||||||||||
Equity in earnings of subsidiaries | 643.4 | 861.6 | — | — | — | (1,505.0 | ) | — | |||||||||||||||||||
Net income | $ | 643.0 | $ | 643.4 | $ | 797.8 | $ | 63.8 | $ | — | $ | (1,505.0 | ) | $ | 643.0 |
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 13,299.8 | $ | 1,533.1 | $ | — | $ | — | $ | 14,832.9 | |||||||||||||
Cost of sales | — | — | 11,103.5 | 1,279.2 | — | — | 12,382.7 | ||||||||||||||||||||
Gross profit | — | — | 2,196.3 | 253.9 | — | — | 2,450.2 | ||||||||||||||||||||
Selling and administrative expenses | — | 127.2 | 1,093.3 | 189.5 | — | — | 1,410.0 | ||||||||||||||||||||
Advertising expense | — | — | 166.4 | 7.3 | — | — | 173.7 | ||||||||||||||||||||
Operating income (loss) | — | (127.2 | ) | 936.6 | 57.1 | — | — | 866.5 | |||||||||||||||||||
Interest (expense) income, net | — | (148.3 | ) | 4.1 | (6.3 | ) | — | — | (150.5 | ) | |||||||||||||||||
Other (expense) income, net | — | (57.5 | ) | 0.7 | 1.5 | — | — | (55.3 | ) | ||||||||||||||||||
Income (loss) before income taxes | — | (333.0 | ) | 941.4 | 52.3 | — | — | 660.7 | |||||||||||||||||||
Income tax (expense) benefit | (0.9 | ) | 149.9 | (270.2 | ) | (16.4 | ) | — | — | (137.6 | ) | ||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (0.9 | ) | (183.1 | ) | 671.2 | 35.9 | — | — | 523.1 | ||||||||||||||||||
Equity in earnings of subsidiaries | 524.0 | 707.1 | — | — | — | (1,231.1 | ) | — | |||||||||||||||||||
Net income | $ | 523.1 | $ | 524.0 | $ | 671.2 | $ | 35.9 | $ | — | $ | (1,231.1 | ) | $ | 523.1 |
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Comprehensive income | $ | 749.6 | $ | 749.6 | $ | 885.7 | $ | 102.5 | $ | — | $ | (1,737.8 | ) | $ | 749.6 |
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Comprehensive income | $ | 608.3 | $ | 608.7 | $ | 797.8 | $ | 31.1 | $ | — | $ | (1,437.6 | ) | $ | 608.3 |
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Comprehensive income | $ | 567.0 | $ | 567.9 | $ | 671.2 | $ | 79.6 | $ | — | $ | (1,318.7 | ) | $ | 567.0 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 14.8 | $ | 927.8 | $ | 97.1 | $ | — | $ | (12.5 | ) | $ | 1,027.2 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||||
Capital expenditures | — | (61.5 | ) | (160.4 | ) | (14.4 | ) | — | — | (236.3 | ) | ||||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (20.1 | ) | (75.0 | ) | — | — | (95.1 | ) | |||||||||||||||||
Net cash used in investing activities | — | (61.5 | ) | (180.5 | ) | (89.4 | ) | — | — | (331.4 | ) | ||||||||||||||||
Cash flows (used in) provided by: financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 2,445.5 | — | — | — | — | 2,445.5 | ||||||||||||||||||||
Repayments of borrowings under revolving credit facility | — | (2,394.5 | ) | — | — | — | — | (2,394.5 | ) | ||||||||||||||||||
Repayments of long-term debt | — | (14.9 | ) | — | (8.6 | ) | — | — | (23.5 | ) | |||||||||||||||||
Proceeds from issuance of long-term debt | — | 600.0 | — | — | — | — | 600.0 | ||||||||||||||||||||
Payments to extinguish long-term debt | — | (539.0 | ) | — | — | — | — | (539.0 | ) | ||||||||||||||||||
Net change in accounts payable-inventory financing | — | — | (27.3 | ) | 26.0 | — | — | (1.3 | ) | ||||||||||||||||||
Repurchases of common stock | (657.2 | ) | — | — | — | — | — | (657.2 | ) | ||||||||||||||||||
Payment of incentive compensation plan withholding taxes | (21.4 | ) | — | — | — | — | — | (21.4 | ) | ||||||||||||||||||
Dividend payments | (183.4 | ) | — | — | — | — | — | (183.4 | ) | ||||||||||||||||||
Capital contributions | — | (76.0 | ) | — | 76.0 | — | — | — | |||||||||||||||||||
Other | — | 35.5 | (10.2 | ) | (0.3 | ) | — | — | 25.0 | ||||||||||||||||||
Distributions and advances from (to) affiliates | 862.0 | (112.0 | ) | (709.8 | ) | (50.8 | ) | — | 10.6 | — | |||||||||||||||||
Net cash (used in) provided by financing activities | — | (55.4 | ) | (747.3 | ) | 42.3 | — | 10.6 | (749.8 | ) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 2.2 | — | — | 2.2 | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (102.1 | ) | — | 52.2 | — | (1.9 | ) | (51.8 | ) | |||||||||||||||||
Cash and cash equivalents – beginning of period | — | 176.0 | — | 46.7 | — | (16.9 | ) | 205.8 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | 73.9 | $ | — | $ | 98.9 | $ | — | $ | (18.8 | ) | $ | 154.0 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (85.7 | ) | $ | 1,073.6 | $ | 75.0 | $ | — | $ | (157.0 | ) | $ | 905.9 | |||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||||
Capital expenditures | — | (40.8 | ) | (34.5 | ) | (10.8 | ) | — | — | (86.1 | ) | ||||||||||||||||
Net cash used in investing activities | — | (40.8 | ) | (34.5 | ) | (10.8 | ) | — | — | (86.1 | ) | ||||||||||||||||
Cash flows (used in) provided by financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 640.0 | — | 46.7 | — | — | 686.7 | ||||||||||||||||||||
Repayments of borrowings under revolving credit facility | — | (640.0 | ) | — | (46.7 | ) | — | — | (686.7 | ) | |||||||||||||||||
Repayments of long-term debt | — | (14.9 | ) | — | (6.7 | ) | — | — | (21.6 | ) | |||||||||||||||||
Net change in accounts payable-inventory financing | — | (0.8 | ) | (74.7 | ) | 8.1 | — | — | (67.4 | ) | |||||||||||||||||
Repurchases of common stock | (522.3 | ) | — | — | — | — | — | (522.3 | ) | ||||||||||||||||||
Payment of incentive compensation plan withholding taxes | (33.9 | ) | — | — | — | — | — | (33.9 | ) | ||||||||||||||||||
Dividend payments | (139.4 | ) | — | — | — | — | — | (139.4 | ) | ||||||||||||||||||
Repayment of intercompany loan | — | — | 47.5 | (47.5 | ) | — | — | — | |||||||||||||||||||
Other | — | 34.6 | (4.4 | ) | (0.4 | ) | — | — | 29.8 | ||||||||||||||||||
Distributions and advances from (to) affiliates | 695.6 | 169.9 | (1,007.5 | ) | — | — | 142.0 | — | |||||||||||||||||||
Net cash (used in) provided by financing activities | — | 188.8 | (1,039.1 | ) | (46.5 | ) | — | 142.0 | (754.8 | ) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3.4 | ) | — | — | (3.4 | ) | ||||||||||||||||||
Net increase in cash and cash equivalents | — | 62.3 | — | 14.3 | — | (15.0 | ) | 61.6 | |||||||||||||||||||
Cash and cash equivalents—beginning of period | — | 113.7 | — | 32.4 | — | (1.9 | ) | 144.2 | |||||||||||||||||||
Cash and cash equivalents—end of period | $ | — | $ | 176.0 | $ | — | $ | 46.7 | $ | — | $ | (16.9 | ) | $ | 205.8 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 0.6 | $ | (71.1 | ) | $ | 788.5 | $ | 52.3 | $ | — | $ | 7.4 | $ | 777.7 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||||
Capital expenditures | — | (55.2 | ) | (6.3 | ) | (19.6 | ) | — | — | (81.1 | ) | ||||||||||||||||
Net cash used in investing activities | — | (55.2 | ) | (6.3 | ) | (19.6 | ) | — | — | (81.1 | ) | ||||||||||||||||
Cash flows (used in) provided by financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 1,501.5 | — | 59.2 | — | — | 1,560.7 | ||||||||||||||||||||
Repayments of borrowings under revolving credit facility | — | (1,501.5 | ) | — | (59.2 | ) | — | — | (1,560.7 | ) | |||||||||||||||||
Repayments of long-term debt | — | (14.9 | ) | — | — | — | — | (14.9 | ) | ||||||||||||||||||
Proceeds from issuance of long-term debt | — | 2,083.0 | — | — | — | — | 2,083.0 | ||||||||||||||||||||
Payments to extinguish long-term debt | — | (2,121.3 | ) | — | — | — | — | (2,121.3 | ) | ||||||||||||||||||
Net change in accounts payable-inventory financing | — | (0.2 | ) | (78.4 | ) | (5.4 | ) | — | — | (84.0 | ) | ||||||||||||||||
Repurchases of common stock | (534.0 | ) | — | — | — | — | — | (534.0 | ) | ||||||||||||||||||
Payment of incentive compensation plan withholding taxes | (49.6 | ) | — | — | — | — | — | (49.6 | ) | ||||||||||||||||||
Dividend payments | (106.9 | ) | — | — | — | — | — | (106.9 | ) | ||||||||||||||||||
Repayment of intercompany loan | — | — | 34.3 | (34.3 | ) | — | — | — | |||||||||||||||||||
Other | — | 14.1 | (4.0 | ) | (1.1 | ) | — | — | 9.0 | ||||||||||||||||||
Distributions and advances from (to) affiliates | 689.9 | 56.6 | (737.2 | ) | — | — | (9.3 | ) | — | ||||||||||||||||||
Net cash (used in) provided by financing activities | (0.6 | ) | 17.3 | (785.3 | ) | (40.8 | ) | — | (9.3 | ) | (818.7 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 2.6 | — | — | 2.6 | ||||||||||||||||||||
Net decrease in cash and cash equivalents | — | (109.0 | ) | (3.1 | ) | (5.5 | ) | — | (1.9 | ) | (119.5 | ) | |||||||||||||||
Cash and cash equivalents – beginning of period | — | 222.7 | 3.1 | 37.9 | — | — | 263.7 | ||||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | 113.7 | $ | — | $ | 32.4 | $ | — | $ | (1.9 | ) | $ | 144.2 |
Year Ended December 31, 2019 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Net sales: | ||||||||||||||||
Corporate | $ | 1,736.2 | $ | 1,883.9 | $ | 1,913.5 | $ | 1,965.4 | ||||||||
Small Business | 355.6 | 377.4 | 386.2 | 391.1 | ||||||||||||
Public: | ||||||||||||||||
Government | 488.4 | 578.4 | 793.4 | 659.1 | ||||||||||||
Education | 400.4 | 773.6 | 807.0 | 430.6 | ||||||||||||
Healthcare | 441.9 | 488.1 | 500.5 | 503.4 | ||||||||||||
Total Public | 1,330.7 | 1,840.1 | 2,100.9 | 1,593.1 | ||||||||||||
Other | 535.4 | 528.5 | 507.1 | 587.3 | ||||||||||||
Net sales | $ | 3,957.9 | $ | 4,629.9 | $ | 4,907.7 | $ | 4,536.9 | ||||||||
Gross profit | 672.1 | 773.8 | 816.5 | 777.5 | ||||||||||||
Operating income | 228.9 | 300.3 | 320.6 | 283.8 | ||||||||||||
Net income | 152.9 | 196.6 | 201.7 | 185.6 | ||||||||||||
Basic(1) | 1.04 | 1.35 | 1.39 | 1.29 | ||||||||||||
Diluted(1) | 1.02 | 1.33 | 1.37 | 1.27 | ||||||||||||
Year Ended December 31, 2018 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Net sales: | ||||||||||||||||
Corporate | $ | 1,565.8 | $ | 1,733.8 | $ | 1,706.5 | $ | 1,836.4 | ||||||||
Small Business | 327.6 | 329.5 | 340.0 | 362.5 | ||||||||||||
Public: | ||||||||||||||||
Government | 418.5 | 493.5 | 639.3 | 546.0 | ||||||||||||
Education | 397.2 | 712.1 | 793.1 | 425.0 | ||||||||||||
Healthcare | 414.3 | 429.8 | 442.7 | 443.2 | ||||||||||||
Total Public | 1,230.0 | 1,635.4 | 1,875.1 | 1,414.2 | ||||||||||||
Other | 483.0 | 487.4 | 451.6 | 461.7 | ||||||||||||
Net sales | $ | 3,606.4 | $ | 4,186.1 | $ | 4,373.2 | $ | 4,074.8 | ||||||||
Gross profit | 603.9 | 695.6 | 713.6 | 693.8 | ||||||||||||
Operating income | 204.1 | 265.5 | 274.8 | 242.9 | ||||||||||||
Net income | 127.0 | 173.0 | 183.7 | 159.3 | ||||||||||||
Basic(1) | 0.83 | 1.14 | 1.22 | 1.07 | ||||||||||||
Diluted(1) | 0.82 | 1.12 | 1.20 | 1.05 |
Allowance for credit losses: | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions (1) | Balance at End of Period | ||||||||||||||||||||||
Year Ended December 31, 2021 | $ | 29.6 | $ | (5.4) | $ | (3.8) | $ | 20.4 | ||||||||||||||||||
Year Ended December 31, 2020 | 7.9 | 30.9 | (9.2) | 29.6 | ||||||||||||||||||||||
Year Ended December 31, 2019 | 7.0 | 2.2 | (1.3) | 7.9 | ||||||||||||||||||||||
Allowance for doubtful accounts: | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions | Balance at End of Period | ||||||||||||
Year Ended December 31, 2019 | $ | 7.0 | $ | 2.2 | $ | (1.3 | ) | $ | 7.9 | |||||||
Year Ended December 31, 2018 | 6.2 | 2.0 | (1.2 | ) | 7.0 | |||||||||||
Year Ended December 31, 2017 | 5.9 | 2.1 | (1.8 | ) | 6.2 |
/s/ Ernst & Young LLP | ||
Chicago, Illinois | ||
February 28, |
Page | |||||
Number |
Description | ||||||||
3.1 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
3.8 | ||||||||
3.9 | ||||||||
Exhibit Number | Description | |||||||
10.10§ | ||||||||
10.12§ | ||||||||
10.18§ | ||||||||
10.22§ | ||||||||
10.23§* | ||||||||
10.24§ | ||||||||
21.1* | ||||||||
23.1* | ||||||||
Number | Description | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | XBRL Instance Document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
CDW CORPORATION | ||||||||||||||
Date: | February 28, | By: | /s/ Christine A. Leahy | |||||||||||
Christine A. Leahy | ||||||||||||||
President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||||
/s/ Christine A. Leahy | President and Chief Executive Officer (principal executive officer) and Director | February 28, 2022 | ||||||||||||||
Christine A. Leahy | ||||||||||||||||
/s/ Albert J. Miralles | Senior Vice President and Chief Financial Officer (principal financial officer) | February 28, 2022 | ||||||||||||||
Albert J. Miralles | ||||||||||||||||
/s/ Ilaria Mocciaro | Vice President, Controller and Chief Accounting Officer (principal accounting officer) | February 28, 2022 | ||||||||||||||
Ilaria Mocciaro | ||||||||||||||||
/s/ David W. Nelms | Non-Executive Chairman of the Board | February 28, | ||||||||||||||
David W. Nelms | ||||||||||||||||
/s/ Virginia C. Addicott | Director | February 28, | ||||||||||||||
Virginia C. Addicott | ||||||||||||||||
/s/ James A. Bell | Director | February 28, | ||||||||||||||
James A. Bell | ||||||||||||||||
/s/ Lynda M. Clarizio | Director | February 28, | ||||||||||||||
Lynda M. Clarizio | ||||||||||||||||
/s/ Paul J. Finnegan | Director | February 28, | ||||||||||||||
Paul J. Finnegan | ||||||||||||||||
/s/ Anthony R. Foxx | Director | February 28, 2022 | ||||||||||||||
Anthony R. Foxx | ||||||||||||||||
/s/ Sanjay Mehrotra | Director | February 28, 2022 | ||||||||||||||
Sanjay Mehrotra | ||||||||||||||||
/s/ Joseph R. Swedish | Director | February 28, | ||||||||||||||
Joseph R. Swedish | ||||||||||||||||
/s/ Donna F. Zarcone | Director | February 28, | ||||||||||||||
Donna F. Zarcone |