Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35985 | |
Entity Central Index Key | 0001402057 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | CDW CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0273989 | |
Entity Address, Address Line One | 75 Tri-State International | |
Entity Address, City or Town | Lincolnshire | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60069 | |
City Area Code | 847 | |
Local Phone Number | 465-6000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CDW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 142,669,659 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 958.4 | $ 154 |
Accounts receivable, net of allowance for credit losses of $30.7 and $7.9, respectively | 3,029 | 3,002.2 |
Merchandise inventory | 694.8 | 611.2 |
Miscellaneous receivables | 353.9 | 395.1 |
Prepaid expenses and other | 199.7 | 171.6 |
Total current assets | 5,235.8 | 4,334.1 |
Operating lease right-of-use assets | 137.3 | 131.8 |
Property and equipment, net | 326.5 | 363.1 |
Goodwill | 2,532.1 | 2,553 |
Other intangible assets, net | 492.9 | 594.1 |
Other assets | 24.9 | 23.3 |
Total Assets | 8,749.5 | 7,999.4 |
Current liabilities: | ||
Accounts payable-trade | 1,809 | 1,835 |
Accounts payable-inventory financing | 479.1 | 429.9 |
Current maturities of long-term debt | 37.9 | 34.1 |
Contract liabilities | 275.4 | 252.2 |
Accrued expenses and other current liabilities: | ||
Compensation | 163.2 | 212.3 |
Advertising | 145.2 | 147.9 |
Sales and income taxes | 145.4 | 88.6 |
Other | 506.3 | 491.4 |
Total current liabilities | 3,561.5 | 3,491.4 |
Long-term liabilities: | ||
Debt | 3,861.6 | 3,283.2 |
Deferred income taxes | 67.6 | 62.4 |
Operating lease liabilities | 138 | 131.1 |
Other liabilities | 65.2 | 71 |
Total long-term liabilities | 4,132.4 | 3,547.7 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 100.0 shares authorized; no shares issued or outstanding for both periods | 0 | 0 |
Common stock, $0.01 par value, 1,000.0 shares authorized; 142.6 and 143.0 shares outstanding, respectively | 1.4 | 1.4 |
Paid-in capital | 3,138.3 | 3,095.3 |
Accumulated deficit | (1,932.5) | (2,018.6) |
Accumulated other comprehensive loss | (151.6) | (117.8) |
Total stockholders' equity | 1,055.6 | 960.3 |
Total Liabilities and Stockholders' Equity | $ 8,749.5 | $ 7,999.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 30.7 | $ 7.9 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 142,600,000 | 143,000,000 |
Common stock, shares outstanding (in shares) | 142,600,000 | 143,000,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,365.7 | $ 4,629.9 | $ 8,754.9 | $ 8,587.8 |
Cost of sales | 3,618.5 | 3,856.1 | 7,251.2 | 7,141.9 |
Gross profit | 747.2 | 773.8 | 1,503.7 | 1,445.9 |
Selling and administrative expenses | 463.8 | 473.5 | 974.5 | 916.7 |
Operating income | 283.4 | 300.3 | 529.2 | 529.2 |
Interest expense, net | (39.7) | (40.5) | (77.6) | (78.8) |
Other income, net | 1.7 | 1.4 | 5.6 | 2.4 |
Income before income taxes | 245.4 | 261.2 | 457.2 | 452.8 |
Income tax expense | (56.3) | (64.6) | (100.2) | (103.3) |
Net income | $ 189.1 | $ 196.6 | $ 357 | $ 349.5 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.32 | $ 1.35 | $ 2.50 | $ 2.39 |
Diluted (in dollars per share) | $ 1.31 | $ 1.33 | $ 2.47 | $ 2.35 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 142.4 | 145.7 | 142.5 | 146.3 |
Diluted (in shares) | 144.3 | 148.3 | 144.6 | 148.7 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 189.1 | $ 196.6 | $ 357 | $ 349.5 |
Other comprehensive income (loss): | ||||
Unrealized loss from hedge accounting, net of tax | 0 | (4.1) | (0.2) | (12.4) |
Reclassification of hedge accounting loss to net income, net of tax | 1.4 | 0.2 | 2.5 | 1.7 |
Foreign currency translation, net of tax | 6.3 | (8) | (36.1) | 1.9 |
Other comprehensive income (loss) | 7.7 | (11.9) | (33.8) | (8.8) |
Comprehensive income | $ 196.8 | $ 184.7 | $ 323.2 | $ 340.7 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentAccumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 147.7 | ||||||
Beginning balance at Dec. 31, 2018 | $ 975.2 | $ 1.5 | $ 2,996.9 | $ (1,892.6) | $ (130.6) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 349.5 | 349.5 | |||||
Equity-based compensation expense | 24 | 24 | |||||
Stock option exercises (in shares) | 0.7 | ||||||
Stock option exercises | 19 | 19 | |||||
Coworker Stock Purchase Plan | 7.3 | 7.3 | |||||
Repurchases of common stock (in shares) | (3.4) | ||||||
Repurchases of common stock | (332.2) | $ 0 | (332.2) | ||||
Dividends paid | (86.3) | 0.4 | (86.7) | ||||
Incentive compensation plan stock withheld for taxes | (11.6) | (11.6) | |||||
Foreign currency translation | 1.9 | 1.9 | |||||
Unrealized (loss) gain from hedge accounting | (12.4) | (12.4) | |||||
Reclassification of hedge accounting loss to net income | 1.7 | 1.7 | |||||
Ending balance (in shares) at Jun. 30, 2019 | 145 | ||||||
Ending balance at Jun. 30, 2019 | 936.1 | $ 1.5 | 3,047.6 | (1,973.6) | (139.4) | ||
Beginning balance (in shares) at Mar. 31, 2019 | 146.3 | ||||||
Beginning balance at Mar. 31, 2019 | 927.3 | $ 1.5 | 3,025.3 | (1,972) | (127.5) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 196.6 | 196.6 | |||||
Equity-based compensation expense | 11.8 | 11.8 | |||||
Stock option exercises (in shares) | 0.2 | ||||||
Stock option exercises | 6 | 6 | |||||
Coworker Stock Purchase Plan (in shares) | 0 | ||||||
Coworker Stock Purchase Plan | 4.3 | 4.3 | |||||
Repurchases of common stock (in shares) | (1.5) | ||||||
Repurchases of common stock | (155.1) | (155.1) | |||||
Dividends paid | (42.9) | 0.2 | (43.1) | ||||
Foreign currency translation | (8) | (8) | |||||
Unrealized (loss) gain from hedge accounting | (4.1) | (4.1) | |||||
Reclassification of hedge accounting loss to net income | 0.2 | 0.2 | |||||
Ending balance (in shares) at Jun. 30, 2019 | 145 | ||||||
Ending balance at Jun. 30, 2019 | 936.1 | $ 1.5 | 3,047.6 | (1,973.6) | (139.4) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 143 | ||||||
Beginning balance at Dec. 31, 2019 | 960.3 | $ 1.4 | 3,095.3 | (2,018.6) | (117.8) | $ 0.5 | $ 0.5 |
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 357 | 357 | |||||
Equity-based compensation expense | 14.4 | 14.4 | |||||
Stock option exercises (in shares) | 0.7 | ||||||
Stock option exercises | 19.8 | 19.8 | |||||
Coworker Stock Purchase Plan | 8.3 | 8.3 | |||||
Repurchases of common stock (in shares) | (1.1) | ||||||
Repurchases of common stock | (140.8) | $ 0 | (140.8) | ||||
Dividends paid | (108.2) | 0.5 | (108.7) | ||||
Incentive compensation plan stock withheld for taxes | (21.9) | (21.9) | |||||
Foreign currency translation | (36.1) | (36.1) | |||||
Unrealized (loss) gain from hedge accounting | (0.2) | (0.2) | |||||
Reclassification of hedge accounting loss to net income | 2.5 | 2.5 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 142.6 | ||||||
Ending balance at Jun. 30, 2020 | 1,055.6 | $ 1.4 | 3,138.3 | (1,932.5) | (151.6) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 142.3 | ||||||
Beginning balance at Mar. 31, 2020 | 889.7 | $ 1.4 | 3,114.9 | (2,067.3) | (159.3) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 189.1 | 189.1 | |||||
Equity-based compensation expense | 5.6 | 5.6 | |||||
Stock option exercises (in shares) | 0.3 | ||||||
Stock option exercises | 12.7 | 12.7 | |||||
Coworker Stock Purchase Plan | 4.8 | 4.8 | |||||
Dividends paid | (54) | 0.3 | (54.3) | ||||
Foreign currency translation | 6.3 | 6.3 | |||||
Unrealized (loss) gain from hedge accounting | 0 | ||||||
Reclassification of hedge accounting loss to net income | 1.4 | 1.4 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 142.6 | ||||||
Ending balance at Jun. 30, 2020 | $ 1,055.6 | $ 1.4 | $ 3,138.3 | $ (1,932.5) | $ (151.6) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Dividends (in dollars per share) | $ 0.380 | $ 0.295 | $ 0.76 | $ 0.59 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 357 | $ 349.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 216.6 | 129.3 |
Equity-based compensation expense | 14.4 | 24.9 |
Deferred income taxes | 7.3 | (22.5) |
Provision for credit losses | 27.1 | 1.9 |
Other | 6.8 | 4.5 |
Changes in assets and liabilities: | ||
Accounts receivable | (80.4) | (230.1) |
Merchandise inventory | (89.3) | (197.3) |
Other assets | 19.3 | (109.6) |
Accounts payable-trade | (2.1) | 414.9 |
Other liabilities | 39.1 | 49 |
Net cash provided by operating activities | 515.8 | 414.5 |
Cash flows used in investing activities: | ||
Capital expenditures | (100) | (43.9) |
Acquisition of business, net of cash acquired | 0 | (75) |
Net cash used in investing activities | (100) | (118.9) |
Cash flows from financing activities: | ||
Proceeds from borrowings under revolving credit facility | 1,024 | 891 |
Repayments of borrowings under revolving credit facility | (1,025) | (815) |
Proceeds from issuance of long-term debt | 600 | 0 |
Net change in accounts payable-inventory financing | 52.3 | 36.3 |
Repurchases of common stock | (140.8) | (332.2) |
Payment of incentive compensation plan withholding taxes | (21.9) | (11.6) |
Dividend payments | (108.3) | (86.3) |
Other | 14 | 12.6 |
Net cash provided by (used in) financing activities | 394.3 | (305.2) |
Effect of exchange rate changes on cash and cash equivalents | (5.7) | (1.7) |
Net increase (decrease) in cash and cash equivalents | 804.4 | (11.3) |
Cash and cash equivalents—beginning of period | 154 | 205.8 |
Cash and cash equivalents—end of period | 958.4 | 194.5 |
Supplementary disclosure of cash flow information: | ||
Interest paid | (67.2) | (76) |
Taxes paid, net | $ (21.5) | $ (115.2) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business CDW Corporation ("Parent"), a Fortune 500 company and member of the S&P 500 Index, is a market-leading provider of integrated information technology ("IT") solutions to small, medium and large business, government, education and healthcare customers in the United States ("US"), the United Kingdom ("UK") and Canada. The Company's offerings range from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization and collaboration. Throughout this report, the terms the "Company" and "CDW" refer to Parent and its 100% owned subsidiaries. Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of the Company. CDW Finance Corporation is a Delaware corporation formed for the sole purpose of acting as co-issuer of certain debt obligations and does not hold any material assets or engage in any business activities or operations. Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 (the "Consolidated Financial Statements") have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the US Securities and Exchange Commission (the "SEC") for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the " December 31, 2019 Consolidated Financial Statements"). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2019 Consolidated Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for such interim periods reported are not necessarily indicative of results for the full year. Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. Principles of Consolidation The Consolidated Financial Statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances including management’s current assumptions with respect to implications of the COVID-19 pandemic, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and outcomes could differ from those estimates. The notes to the Consolidated Financial Statements contained in the December 31, 2019 Consolidated Financial Statements include a discussion of the Company's significant accounting policies and estimates. Except as noted within Note 2 (Recent Accounting Pronouncements) for the adoption of Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("Topic 326"), there have been no changes to the Company's significant accounting policies and estimates during the six months ended June 30, 2020 . Accounts Receivable The Company estimates an allowance for credit losses related to accounts receivable for future expected credit losses by using relevant information such as historical information, current conditions, and reasonable and supportable forecasts. The allowance is measured on a pool basis when similar risk characteristics exist, and a loss-rate for each pool is determined using historical credit loss experience as the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current conditions as well as changes in forecasted macroeconomic conditions, such as changes in the unemployment rate or gross domestic product growth rate. The Company has typically experienced a higher loss experience with customers in pools associated within the Corporate, Small Business and Other segments, as compared to the pools associated with the Public segment. During the six months ended June 30, 2020, the Company recognized an allowance of $27 million to reflect the forecasted credit deterioration due to the COVID-19 pandemic, which considered the customer makeup of the Company's pools, the impacts experienced to date and the impacts from the last significant economic downturn in 2008-2009. Due to the higher inherent risk in the pools associated with the Company's Corporate, Small Business, and Other segment, the majority of the additional allowance relates to these segments. As the overall impact and duration of COVID-19 remains uncertain, the Company's estimates and assumptions may evolve as conditions change. Advertising Advertising costs are generally charged to expense in the period incurred and recorded in Selling and administrative expenses in the Consolidated Statements of Operations. During the three months ended June 30, 2020 and 2019 , the Company had advertising costs of $48 million and $53 million , respectively. During the six months ended June 30, 2020 and 2019 , the Company had advertising costs of $93 million and $92 million , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU temporarily provides optional expedients and exceptions for applying existing guidance to contract modifications, hedging relationships and other transactions that are expected to be affected by reference rate reform. This ASU was effective upon its issuance and will remain in effect for all contract modifications and hedging relationships entered into through December 31, 2022. The adoption of this ASU along with the related expedients did not have an impact to the Company’s Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments On January 1, 2020, the Company adopted and applied Topic 326 using the modified retrospective approach. Topic 326 introduced a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables, which is reflected in the Company’s policies. The adoption of Topic 326, as well as the adjustment to retained earnings for the cumulative effect, was not significant to the Company's Consolidated Financial Statements. |
Inventory Financing Agreements
Inventory Financing Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Financing Agreements [Abstract] | |
Inventory Financing Agreements | Inventory Financing Agreements The Company has entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions, as described below. These amounts are classified separately as Accounts payable-inventory financing on the Consolidated Balance Sheets. The Company does not incur any interest expense associated with these agreements as balances are paid when they are due. Amounts included in Accounts payable-inventory financing are as follows: June 30, 2020 December 31, 2019 Revolving Loan inventory financing agreement (1) $ 444.8 $ 379.1 Other inventory financing agreements 34.3 50.8 Accounts payable-inventory financing $ 479.1 $ 429.9 (1) The senior secured asset-based revolving credit facility includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary to facilitate the purchase of inventory from certain vendors on more favorable terms than offered directly by the vendors. |
Contract Liabilities and Perfor
Contract Liabilities and Performance Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities and Performance Obligations | Contract Liabilities and Performance Obligations The Company's contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services. The Company's contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. As of June 30, 2020 and December 31, 2019 , the contract liability balance was $275 million and $252 million , respectively. During the six months ended June 30, 2020 and 2019 , the Company recognized revenue of $210 million and $113 million , respectively, related to its contract liabilities. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The following table represents the total transaction price for the remaining performance obligations as of June 30, 2020 related to noncancelable contracts longer than 12 months in duration that is expected to be recognized over future periods. Within 1 Year Years 1-2 Years 2-3 Thereafter Remaining performance obligations $ 37.2 $ 19.7 $ 7.3 $ 0.2 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments The Company's indebtedness creates interest rate risk on its variable-rate debt. The Company uses derivative financial instruments to manage its exposure to interest rate risk. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The Company has interest rate cap agreements that entitle it to payments from the counterparty of the amount, if any, by which three-month London Interbank Offered Rate ("LIBOR") exceeds the strike rates of the caps during the agreement period in exchange for an upfront premium. During 2020 , the Company did not enter into interest rate cap agreements. As of June 30, 2020 and December 31, 2019 , the Company had interest rate cap agreements with a fair value of less than $1 million which were classified within Other assets on the Consolidated Balance Sheets. The total notional value of the interest rate cap agreements was $2.8 billion as of June 30, 2020 and December 31, 2019 of which $1.4 billion mature at December 31, 2020 and December 31, 2022, respectively. The fair values of the Company's interest rate cap agreements are classified as Level 2 in the fair value hierarchy. The valuation of the interest rate cap agreements is derived by using a discounted cash flow analysis on the expected cash receipts that would occur if variable interest rates rise above the strike rates of the caps. This analysis reflects the contractual terms of the interest rate cap agreements, including the period to maturity, and uses observable market-based inputs, including LIBOR curves and implied volatilities. The Company also incorporates insignificant credit valuation adjustments to appropriately reflect the respective counterparty's nonperformance risk in the fair value measurements. The counterparty credit spreads are based on publicly available credit information obtained from a third-party credit data provider. For additional information, see Note 6 (Long-Term Debt) . The interest rate cap agreements are designated as cash flow hedges. The changes in the fair value of derivatives that qualify as cash flow hedges are recorded in Accumulated other comprehensive loss ("AOCL") and are subsequently reclassified into Interest expense in the period when the hedged forecasted transaction affects earnings. The following tables provide the activity in AOCL, net of tax, for the three and six months ended June 30, 2020 and 2019 . Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Change in fair value recorded to AOCL $ — $ (4.1 ) $ (0.2 ) $ (12.4 ) Reclassification from AOCL to Interest expense, net $ 1.4 $ 0.2 $ 2.5 $ 1.7 The Company expects to reclassify $6 million from AOCL to earnings within Interest expense, net during the next 12 months. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of June 30, 2020 As of December 31, 2019 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 1.438 % 50.0 5.000 % 51.0 Total credit facilities 50.0 51.0 Term Loans CDW UK term loan (1) August 2021 1.622 % 57.0 2.190 % 61.0 Senior secured term loan facility October 2026 1.930 % 1,430.8 3.550 % 1,438.3 Total term loans 1,487.8 1,499.3 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 — % — Senior notes due 2025 September 2025 5.000 % 600.0 5.000 % 600.0 Senior notes due 2028 April 2028 4.250 % 600.0 4.250 % 600.0 Total unsecured senior notes 2,375.0 1,775.0 Other long-term obligations 12.7 12.6 Unamortized deferred financing fees (26.0 ) (20.6 ) Current maturities of long-term debt (37.9 ) (34.1 ) Total long-term debt $ 3,861.6 $ 3,283.2 (1) British pound-denominated debt facilities. As of June 30, 2020 , the Company is in compliance with the covenants under the various credit agreements and indentures. Credit Facilities The Company has a variable rate CDW UK revolving credit facility that is denominated in British pounds. As of June 30, 2020 , the Company could have borrowed up to an additional £50 million ( $62 million ) under the CDW UK revolving credit facility. The Company also has a variable rate senior secured asset-based revolving credit facility (the "Revolving Loan") that is denominated in US dollars. The Revolving Loan is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of June 30, 2020 , the Revolving Loan had less than $1 million of undrawn letters of credit, $432 million reserved for the floorplan sub-facility and a borrowing base of $2.2 billion , which is based on the amount of eligible inventory and accounts receivable balances as of May 31, 2020 . As of June 30, 2020 , the Company could have borrowed up to an additional $1.0 billion under the Revolving Loan. The Revolving Loan is collateralized by a first priority interest in inventory (excluding inventory to the extent collateralized under the inventory financing arrangements as described in Note 3 (Inventory Financing Agreements) ), deposits and accounts receivable, and by a second priority interest in substantially all other US assets. Term Loans The CDW UK term loan has a variable interest rate. The Company is required to make annual principal installments of £5 million ( $6 million ), with the remaining principal amount due at the maturity date. The CDW UK term loan agreement imposes restrictions on CDW UK's ability to transfer funds to the Company through the payment of dividends, repayment of intercompany loans, advances or subordinated debt that require, among other things, the maintenance of a minimum net leverage ratio. As of June 30, 2020 , the amount of restricted payment capacity under the CDW UK term loan was £160 million ( $198 million ). The senior secured term loan facility (the "Term Loan") has a variable interest rate, which has effectively been capped through the use of interest rate caps (see Note 5 (Financial Instruments) ). The interest rate disclosed in the table above represents the variable interest rates in effect for June 30, 2020 and December 31, 2019 , respectively. The Company is required to pay quarterly principal installments of $4 million with the remaining principal amount due at the maturity date. As of June 30, 2020 , the amount of CDW's restricted payment capacity under the Term Loan was $2.0 billion . The Term Loan is collateralized by a second priority interest in substantially all inventory (excluding inventory to the extent collateralized under the inventory financing arrangements as described in Note 3 (Inventory Financing Agreements) , deposits and accounts receivable, and by a first priority interest in substantially all other US assets. Unsecured Senior Notes The senior notes have fixed interest rates, for which interest is paid semi-annually. On April 21, 2020, CDW completed the issuance of $600 million aggregate principal amount of 4.125% Senior Notes due 2025 at par. The 2025 Senior Notes will mature on May 1, 2025 and bear interest of 4.125% per annum, payable semi-annually on May 1 and November 1 of each year, commencing November 1, 2020. Fair Value The fair values of the Senior Notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan was estimated using dealer quotes for identical liabilities in markets that are not considered active. The Senior Notes, Term Loan and CDW UK term loan are classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan and CDW UK revolving credit facility approximate fair value if there are outstanding borrowings. The approximate fair values and related carrying values of the Company's long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing fees, are as follows: June 30, 2020 December 31, 2019 Fair value $ 3,965.2 $ 3,447.5 Carrying value 3,925.5 3,337.9 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted into law. The primary impact to the Company’s financial statements as a result of the CARES Act was the deferral of US corporate income tax payments from the second quarter of 2020 to July 2020, as well as the deferral of employer related payroll tax payments from the second, third and fourth quarters of 2020 with 50% to be paid in the fourth quarter of 2021 and the remaining 50% to be paid in the fourth quarter of 2022. Income tax expense was $56 million and $65 million for the three months ended June 30, 2020 and 2019 , respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 22.9% and 24.7% for the three months ended June 30, 2020 and 2019, respectively. The effective tax rates differed from the US statutory rate of 21.0% for both periods primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation. Income tax expense was $100 million and $103 million for the six months ended June 30, 2020 and 2019 , respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 21.9% for the six months ended June 30, 2020 and differed from the US federal statutory rate of 21.0% with state and local income taxes being largely offset by excess tax benefits on equity-based compensation. The effective tax rate for the six months ended June 30, 2019 was 22.8% and differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation and a discrete tax benefit related to CDW Canada’s acquisition of Scalar Decisions Inc. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings Per Share The numerator for both basic and diluted earnings per share is Net income. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted-average shares outstanding 142.4 145.7 142.5 146.3 Effect of dilutive securities (1) 1.9 2.6 2.1 2.4 Diluted weighted-average shares outstanding (2) 144.3 148.3 144.6 148.7 (1) The dilutive effect of outstanding stock options, restricted stock units, restricted stock, performance share units and Coworker Stock Purchase Plan units is reflected in the diluted weighted-average shares outstanding using the treasury stock method. (2) There were fewer than 0.1 million potential common shares excluded from diluted weighted-average shares outstanding for both the three and six months ended June 30, 2020 and 2019 as their inclusion would have had an anti-dilutive effect. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to various legal proceedings that arise in the ordinary course of its business, which include commercial, intellectual property, employment, tort and other litigation matters. The Company is also subject to audit by federal, state, international, national, provincial and local authorities, and by various partners, group purchasing organizations and customers, including government agencies, relating to purchases and sales under various contracts. In addition, the Company is subject to indemnification claims under various contracts. From time to time, certain customers of the Company file voluntary petitions for reorganization or liquidation under the US bankruptcy laws or similar laws of the jurisdictions for the Company's business activities outside of the US. In such cases, certain pre-petition payments received by the Company could be considered preference items and subject to return to the bankruptcy administrator. As of June 30, 2020 , the Company does not believe that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters, if any, has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, the Company's consolidated financial statements could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has three reportable segments: Corporate, which is comprised primarily of US private sector business customers with more than 250 employees, Small Business, which primarily serves US private sector business customers with up to 250 employees, and Public, which is comprised of government agencies and education and healthcare institutions in the US. The Company has two other operating segments: CDW UK and CDW Canada, both of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category ("Other"). Headquarters function costs that are not allocated to the segments are included under the heading of "Headquarters" in the tables below. Information about the Company's segments is as follows: Corporate Small Business Public Other Headquarters Total Three Months Ended June 30, 2020 Net sales $ 1,557.5 $ 302.1 $ 2,022.1 $ 484.0 $ — $ 4,365.7 Operating income (loss) 123.0 21.0 159.9 16.5 (37.0 ) 283.4 Depreciation and amortization expense (22.1 ) (5.6 ) (69.1 ) (7.9 ) (20.5 ) (125.2 ) Three Months Ended June 30, 2019 Net sales $ 1,883.9 $ 377.4 $ 1,840.1 $ 528.5 $ — $ 4,629.9 Operating income (loss) 157.2 26.6 129.4 19.1 (32.0 ) 300.3 Depreciation and amortization expense (21.6 ) (5.6 ) (13.7 ) (7.8 ) (16.3 ) (65.0 ) Corporate Small Business Public Other Headquarters Total Six Months Ended June 30, 2020 Net sales $ 3,468.5 $ 693.6 $ 3,547.4 $ 1,045.4 $ — $ 8,754.9 Operating income (loss) 250.4 48.3 272.3 31.2 (73.0 ) 529.2 Depreciation and amortization expense (44.4 ) (11.4 ) (106.8 ) (15.9 ) (38.1 ) (216.6 ) Six Months Ended June 30, 2019 Net sales $ 3,620.1 $ 733.0 $ 3,170.8 $ 1,063.9 $ — $ 8,587.8 Operating income (loss) 291.9 51.0 205.5 44.7 (63.9 ) 529.2 Depreciation and amortization expense (43.1 ) (11.2 ) (26.4 ) (15.2 ) (33.4 ) (129.3 ) Geographic Areas and Revenue Mix Three Months Ended June 30, 2020 Corporate Small Business Public Other Total Geography (1) United States $ 1,542.9 $ 302.1 $ 2,022.1 $ 3.8 $ 3,870.9 Rest of World 14.6 — — 480.2 494.8 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Major Product and Services Hardware 1,207.5 247.0 1,719.6 364.9 3,539.0 Software 243.2 43.2 227.4 68.6 582.4 Services 92.8 7.1 66.4 48.3 214.6 Other (2) 14.0 4.8 8.7 2.2 29.7 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Sales by Channel Corporate 1,557.5 — — — 1,557.5 Small Business — 302.1 — — 302.1 Government — — 719.7 — 719.7 Education — — 876.8 — 876.8 Healthcare — — 425.6 — 425.6 Other — — — 484.0 484.0 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,387.2 280.7 1,854.2 426.2 3,948.3 Transferred at a point in time where CDW is agent 112.2 18.9 68.3 14.8 214.2 Transferred over time where CDW is principal 58.1 2.5 99.6 43.0 203.2 Total Net sales $ 1,557.5 $ 302.1 $ 2,022.1 $ 484.0 $ 4,365.7 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Three Months Ended June 30, 2019 Corporate Small Business Public Other Total Geography (1) United States $ 1,881.7 $ 377.4 $ 1,840.1 $ 8.9 $ 4,108.1 Rest of World 2.2 — — 519.6 521.8 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Major Product and Services Hardware 1,497.2 316.0 1,523.5 400.7 3,737.4 Software 269.2 49.1 262.6 69.7 650.6 Services 99.8 7.0 49.2 55.3 211.3 Other (2) 17.7 5.3 4.8 2.8 30.6 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Sales by Channel Corporate 1,883.9 — — — 1,883.9 Small Business — 377.4 — — 377.4 Government — — 578.4 — 578.4 Education — — 773.6 — 773.6 Healthcare — — 488.1 — 488.1 Other — — — 528.5 528.5 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,708.2 355.5 1,725.5 465.0 4,254.2 Transferred at a point in time where CDW is agent 118.7 20.0 65.0 13.5 217.2 Transferred over time where CDW is principal 57.0 1.9 49.6 50.0 158.5 Total Net sales $ 1,883.9 $ 377.4 $ 1,840.1 $ 528.5 $ 4,629.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Six Months Ended June 30, 2020 Corporate Small Business Public Other Total Geography (1) United States $ 3,450.7 $ 693.6 $ 3,547.4 $ 10.0 $ 7,701.7 Rest of World 17.8 — — 1,035.4 1,053.2 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Major Product and Services Hardware 2,722.6 571.8 2,930.3 772.4 6,997.1 Software 518.0 96.5 467.1 165.6 1,247.2 Services 192.9 15.3 134.2 102.7 445.1 Other (2) 35.0 10.0 15.8 4.7 65.5 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Sales by Channel Corporate 3,468.5 — — — 3,468.5 Small Business — 693.6 — — 693.6 Government — — 1,288.2 — 1,288.2 Education — — 1,353.0 — 1,353.0 Healthcare — — 906.2 — 906.2 Other — — — 1,045.4 1,045.4 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 3,128.2 647.4 3,258.8 925.2 7,959.6 Transferred at a point in time where CDW is agent 219.8 40.9 120.6 28.0 409.3 Transferred over time where CDW is principal 120.5 5.3 168.0 92.2 386.0 Total Net sales $ 3,468.5 $ 693.6 $ 3,547.4 $ 1,045.4 $ 8,754.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Six Months Ended June 30, 2019 Corporate Small Business Public Other Total Geography (1) United States $ 3,614.6 $ 733.0 $ 3,170.8 $ 17.2 $ 7,535.6 Rest of World 5.5 — — 1,046.7 1,052.2 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Major Product and Services Hardware 2,882.5 611.2 2,587.6 803.8 6,885.1 Software 515.2 97.2 482.8 146.9 1,242.1 Services 187.8 14.0 91.4 107.3 400.5 Other (2) 34.6 10.6 9.0 5.9 60.1 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Sales by Channel Corporate 3,620.1 — — — 3,620.1 Small Business — 733.0 — — 733.0 Government — — 1,066.8 — 1,066.8 Education — — 1,174.0 — 1,174.0 Healthcare — — 930.0 — 930.0 Other — — — 1,063.9 1,063.9 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 3,290.0 690.7 2,968.7 939.9 7,889.3 Transferred at a point in time where CDW is agent 222.7 39.8 111.3 26.5 400.3 Transferred over time where CDW is principal 107.4 2.5 90.8 97.5 298.2 Total Net sales $ 3,620.1 $ 733.0 $ 3,170.8 $ 1,063.9 $ 8,587.8 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following table presents Net sales by major category for the three and six months ended June 30, 2020 and 2019 . Categories are based upon internal classifications. Three Months Ended June 30, 2020 2019 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 1,428.2 32.7 % $ 1,164.6 25.2 % Netcomm Products 471.9 10.8 562.5 12.1 Desktops 253.6 5.8 418.3 9.0 Video 248.0 5.7 348.1 7.5 Enterprise and Data Storage (Including Drives) 199.9 4.6 273.1 5.9 Other Hardware 937.4 21.5 970.8 21.0 Total Hardware 3,539.0 81.1 3,737.4 80.7 Software (1) 582.4 13.3 650.6 14.1 Services (1) 214.6 4.9 211.3 4.6 Other (2) 29.7 0.7 30.6 0.6 Total Net sales $ 4,365.7 100.0 % $ 4,629.9 100.0 % Six Months Ended June 30, 2020 2019 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 2,539.3 29.0 % $ 2,080.6 24.2 % Netcomm Products 928.1 10.6 1,073.7 12.5 Desktops 635.6 7.3 715.5 8.3 Video 561.8 6.4 619.2 7.2 Enterprise and Data Storage (Including Drives) 440.3 5.0 566.2 6.6 Other Hardware 1,892.0 21.6 1,829.9 21.3 Total Hardware 6,997.1 79.9 6,885.1 80.1 Software (1) 1,247.2 14.2 1,242.1 14.5 Services (1) 445.1 5.1 400.5 4.7 Other (2) 65.5 0.8 60.1 0.7 Total Net sales $ 8,754.9 100.0 % $ 8,587.8 100.0 % (1) Certain software and services revenues are recorded on a net basis for accounting purposes. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits. (2) Includes items such as delivery charges to customers. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business CDW Corporation ("Parent"), a Fortune 500 company and member of the S&P 500 Index, is a market-leading provider of integrated information technology ("IT") solutions to small, medium and large business, government, education and healthcare customers in the United States ("US"), the United Kingdom ("UK") and Canada. The Company's offerings range from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization and collaboration. Throughout this report, the terms the "Company" and "CDW" refer to Parent and its 100% owned subsidiaries. Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of the Company. CDW Finance Corporation is a Delaware corporation formed for the sole purpose of acting as co-issuer of certain debt obligations and does not hold any material assets or engage in any business activities or operations. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 (the "Consolidated Financial Statements") have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the US Securities and Exchange Commission (the "SEC") for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the " December 31, 2019 Consolidated Financial Statements"). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2019 Consolidated Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for such interim periods reported are not necessarily indicative of results for the full year. |
Reclassification | Reclassifications Certain prior period amounts have been reclassified to conform with current period presentation. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances including management’s current assumptions with respect to implications of the COVID-19 pandemic, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and outcomes could differ from those estimates. |
Accounts Receivable | Accounts Receivable |
Advertising | Advertising |
Recent Accounting Pronouncements | Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU temporarily provides optional expedients and exceptions for applying existing guidance to contract modifications, hedging relationships and other transactions that are expected to be affected by reference rate reform. This ASU was effective upon its issuance and will remain in effect for all contract modifications and hedging relationships entered into through December 31, 2022. The adoption of this ASU along with the related expedients did not have an impact to the Company’s Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments On January 1, 2020, the Company adopted and applied Topic 326 using the modified retrospective approach. Topic 326 introduced a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables, which is reflected in the Company’s policies. The adoption of Topic 326, as well as the adjustment to retained earnings for the cumulative effect, was not significant to the Company's Consolidated Financial Statements. |
Inventory Financing Agreements
Inventory Financing Agreements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Financing Agreements [Abstract] | |
Inventory Financing Agreements | Amounts included in Accounts payable-inventory financing are as follows: June 30, 2020 December 31, 2019 Revolving Loan inventory financing agreement (1) $ 444.8 $ 379.1 Other inventory financing agreements 34.3 50.8 Accounts payable-inventory financing $ 479.1 $ 429.9 (1) The senior secured asset-based revolving credit facility includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary to facilitate the purchase of inventory from certain vendors on more favorable terms than offered directly by the vendors. |
Contract Liabilities and Perf_2
Contract Liabilities and Performance Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table represents the total transaction price for the remaining performance obligations as of June 30, 2020 related to noncancelable contracts longer than 12 months in duration that is expected to be recognized over future periods. Within 1 Year Years 1-2 Years 2-3 Thereafter Remaining performance obligations $ 37.2 $ 19.7 $ 7.3 $ 0.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Schedule of Cash Flow Hedges Included in AOCL | The following tables provide the activity in AOCL, net of tax, for the three and six months ended June 30, 2020 and 2019 . Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Change in fair value recorded to AOCL $ — $ (4.1 ) $ (0.2 ) $ (12.4 ) Reclassification from AOCL to Interest expense, net $ 1.4 $ 0.2 $ 2.5 $ 1.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of June 30, 2020 As of December 31, 2019 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 1.438 % 50.0 5.000 % 51.0 Total credit facilities 50.0 51.0 Term Loans CDW UK term loan (1) August 2021 1.622 % 57.0 2.190 % 61.0 Senior secured term loan facility October 2026 1.930 % 1,430.8 3.550 % 1,438.3 Total term loans 1,487.8 1,499.3 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 — % — Senior notes due 2025 September 2025 5.000 % 600.0 5.000 % 600.0 Senior notes due 2028 April 2028 4.250 % 600.0 4.250 % 600.0 Total unsecured senior notes 2,375.0 1,775.0 Other long-term obligations 12.7 12.6 Unamortized deferred financing fees (26.0 ) (20.6 ) Current maturities of long-term debt (37.9 ) (34.1 ) Total long-term debt $ 3,861.6 $ 3,283.2 (1) British pound-denominated debt facilities. |
Carrying Value of Long-Term Debt | The approximate fair values and related carrying values of the Company's long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing fees, are as follows: June 30, 2020 December 31, 2019 Fair value $ 3,965.2 $ 3,447.5 Carrying value 3,925.5 3,337.9 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted-average shares outstanding 142.4 145.7 142.5 146.3 Effect of dilutive securities (1) 1.9 2.6 2.1 2.4 Diluted weighted-average shares outstanding (2) 144.3 148.3 144.6 148.7 (1) The dilutive effect of outstanding stock options, restricted stock units, restricted stock, performance share units and Coworker Stock Purchase Plan units is reflected in the diluted weighted-average shares outstanding using the treasury stock method. (2) There were fewer than 0.1 million potential common shares excluded from diluted weighted-average shares outstanding for both the three and six months ended June 30, 2020 and 2019 as their inclusion would have had an anti-dilutive effect. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company's segments is as follows: Corporate Small Business Public Other Headquarters Total Three Months Ended June 30, 2020 Net sales $ 1,557.5 $ 302.1 $ 2,022.1 $ 484.0 $ — $ 4,365.7 Operating income (loss) 123.0 21.0 159.9 16.5 (37.0 ) 283.4 Depreciation and amortization expense (22.1 ) (5.6 ) (69.1 ) (7.9 ) (20.5 ) (125.2 ) Three Months Ended June 30, 2019 Net sales $ 1,883.9 $ 377.4 $ 1,840.1 $ 528.5 $ — $ 4,629.9 Operating income (loss) 157.2 26.6 129.4 19.1 (32.0 ) 300.3 Depreciation and amortization expense (21.6 ) (5.6 ) (13.7 ) (7.8 ) (16.3 ) (65.0 ) Corporate Small Business Public Other Headquarters Total Six Months Ended June 30, 2020 Net sales $ 3,468.5 $ 693.6 $ 3,547.4 $ 1,045.4 $ — $ 8,754.9 Operating income (loss) 250.4 48.3 272.3 31.2 (73.0 ) 529.2 Depreciation and amortization expense (44.4 ) (11.4 ) (106.8 ) (15.9 ) (38.1 ) (216.6 ) Six Months Ended June 30, 2019 Net sales $ 3,620.1 $ 733.0 $ 3,170.8 $ 1,063.9 $ — $ 8,587.8 Operating income (loss) 291.9 51.0 205.5 44.7 (63.9 ) 529.2 Depreciation and amortization expense (43.1 ) (11.2 ) (26.4 ) (15.2 ) (33.4 ) (129.3 ) |
Disaggregation of Revenue | Geographic Areas and Revenue Mix Three Months Ended June 30, 2020 Corporate Small Business Public Other Total Geography (1) United States $ 1,542.9 $ 302.1 $ 2,022.1 $ 3.8 $ 3,870.9 Rest of World 14.6 — — 480.2 494.8 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Major Product and Services Hardware 1,207.5 247.0 1,719.6 364.9 3,539.0 Software 243.2 43.2 227.4 68.6 582.4 Services 92.8 7.1 66.4 48.3 214.6 Other (2) 14.0 4.8 8.7 2.2 29.7 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Sales by Channel Corporate 1,557.5 — — — 1,557.5 Small Business — 302.1 — — 302.1 Government — — 719.7 — 719.7 Education — — 876.8 — 876.8 Healthcare — — 425.6 — 425.6 Other — — — 484.0 484.0 Total Net sales 1,557.5 302.1 2,022.1 484.0 4,365.7 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,387.2 280.7 1,854.2 426.2 3,948.3 Transferred at a point in time where CDW is agent 112.2 18.9 68.3 14.8 214.2 Transferred over time where CDW is principal 58.1 2.5 99.6 43.0 203.2 Total Net sales $ 1,557.5 $ 302.1 $ 2,022.1 $ 484.0 $ 4,365.7 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Three Months Ended June 30, 2019 Corporate Small Business Public Other Total Geography (1) United States $ 1,881.7 $ 377.4 $ 1,840.1 $ 8.9 $ 4,108.1 Rest of World 2.2 — — 519.6 521.8 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Major Product and Services Hardware 1,497.2 316.0 1,523.5 400.7 3,737.4 Software 269.2 49.1 262.6 69.7 650.6 Services 99.8 7.0 49.2 55.3 211.3 Other (2) 17.7 5.3 4.8 2.8 30.6 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Sales by Channel Corporate 1,883.9 — — — 1,883.9 Small Business — 377.4 — — 377.4 Government — — 578.4 — 578.4 Education — — 773.6 — 773.6 Healthcare — — 488.1 — 488.1 Other — — — 528.5 528.5 Total Net sales 1,883.9 377.4 1,840.1 528.5 4,629.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,708.2 355.5 1,725.5 465.0 4,254.2 Transferred at a point in time where CDW is agent 118.7 20.0 65.0 13.5 217.2 Transferred over time where CDW is principal 57.0 1.9 49.6 50.0 158.5 Total Net sales $ 1,883.9 $ 377.4 $ 1,840.1 $ 528.5 $ 4,629.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Six Months Ended June 30, 2020 Corporate Small Business Public Other Total Geography (1) United States $ 3,450.7 $ 693.6 $ 3,547.4 $ 10.0 $ 7,701.7 Rest of World 17.8 — — 1,035.4 1,053.2 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Major Product and Services Hardware 2,722.6 571.8 2,930.3 772.4 6,997.1 Software 518.0 96.5 467.1 165.6 1,247.2 Services 192.9 15.3 134.2 102.7 445.1 Other (2) 35.0 10.0 15.8 4.7 65.5 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Sales by Channel Corporate 3,468.5 — — — 3,468.5 Small Business — 693.6 — — 693.6 Government — — 1,288.2 — 1,288.2 Education — — 1,353.0 — 1,353.0 Healthcare — — 906.2 — 906.2 Other — — — 1,045.4 1,045.4 Total Net sales 3,468.5 693.6 3,547.4 1,045.4 8,754.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 3,128.2 647.4 3,258.8 925.2 7,959.6 Transferred at a point in time where CDW is agent 219.8 40.9 120.6 28.0 409.3 Transferred over time where CDW is principal 120.5 5.3 168.0 92.2 386.0 Total Net sales $ 3,468.5 $ 693.6 $ 3,547.4 $ 1,045.4 $ 8,754.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. Six Months Ended June 30, 2019 Corporate Small Business Public Other Total Geography (1) United States $ 3,614.6 $ 733.0 $ 3,170.8 $ 17.2 $ 7,535.6 Rest of World 5.5 — — 1,046.7 1,052.2 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Major Product and Services Hardware 2,882.5 611.2 2,587.6 803.8 6,885.1 Software 515.2 97.2 482.8 146.9 1,242.1 Services 187.8 14.0 91.4 107.3 400.5 Other (2) 34.6 10.6 9.0 5.9 60.1 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Sales by Channel Corporate 3,620.1 — — — 3,620.1 Small Business — 733.0 — — 733.0 Government — — 1,066.8 — 1,066.8 Education — — 1,174.0 — 1,174.0 Healthcare — — 930.0 — 930.0 Other — — — 1,063.9 1,063.9 Total Net sales 3,620.1 733.0 3,170.8 1,063.9 8,587.8 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 3,290.0 690.7 2,968.7 939.9 7,889.3 Transferred at a point in time where CDW is agent 222.7 39.8 111.3 26.5 400.3 Transferred over time where CDW is principal 107.4 2.5 90.8 97.5 298.2 Total Net sales $ 3,620.1 $ 733.0 $ 3,170.8 $ 1,063.9 $ 8,587.8 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following table presents Net sales by major category for the three and six months ended June 30, 2020 and 2019 . Categories are based upon internal classifications. Three Months Ended June 30, 2020 2019 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 1,428.2 32.7 % $ 1,164.6 25.2 % Netcomm Products 471.9 10.8 562.5 12.1 Desktops 253.6 5.8 418.3 9.0 Video 248.0 5.7 348.1 7.5 Enterprise and Data Storage (Including Drives) 199.9 4.6 273.1 5.9 Other Hardware 937.4 21.5 970.8 21.0 Total Hardware 3,539.0 81.1 3,737.4 80.7 Software (1) 582.4 13.3 650.6 14.1 Services (1) 214.6 4.9 211.3 4.6 Other (2) 29.7 0.7 30.6 0.6 Total Net sales $ 4,365.7 100.0 % $ 4,629.9 100.0 % Six Months Ended June 30, 2020 2019 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 2,539.3 29.0 % $ 2,080.6 24.2 % Netcomm Products 928.1 10.6 1,073.7 12.5 Desktops 635.6 7.3 715.5 8.3 Video 561.8 6.4 619.2 7.2 Enterprise and Data Storage (Including Drives) 440.3 5.0 566.2 6.6 Other Hardware 1,892.0 21.6 1,829.9 21.3 Total Hardware 6,997.1 79.9 6,885.1 80.1 Software (1) 1,247.2 14.2 1,242.1 14.5 Services (1) 445.1 5.1 400.5 4.7 Other (2) 65.5 0.8 60.1 0.7 Total Net sales $ 8,754.9 100.0 % $ 8,587.8 100.0 % (1) Certain software and services revenues are recorded on a net basis for accounting purposes. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits. (2) Includes items such as delivery charges to customers. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)subsidiary | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)subsidiary | Jun. 30, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of owned subsidiaries | subsidiary | 2 | 2 | ||
Advertising costs | $ 48 | $ 53 | $ 93 | $ 92 |
COVID- 19 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable, allowance for credit loss | $ 27 |
Inventory Financing Agreement_2
Inventory Financing Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Financing Agreements [Line Items] | ||
Accounts payable-inventory financing | $ 479.1 | $ 429.9 |
Accounts Payable, Inventory Financing | ||
Inventory Financing Agreements [Line Items] | ||
Revolving Loan inventory financing agreement | 444.8 | 379.1 |
Other inventory financing agreements | $ 34.3 | $ 50.8 |
Contract Liabilities and Perf_3
Contract Liabilities and Performance Obligations - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | $ 275 | $ 252 | |
Revenue recognized from contract with customer | $ 210 | $ 113 |
Contract Liabilities and Perf_4
Contract Liabilities and Performance Obligations - Schedule of Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 37.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 19.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 7.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 0.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period |
Financial Instruments - (Detail
Financial Instruments - (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Interest rate cap, fair value | $ 1 | $ 1 | $ 1 | ||
Unrealized (loss) gain from hedge accounting | 0 | $ 4.1 | 0.2 | $ 12.4 | |
Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Notional amount | 2,800 | 2,800 | $ 2,800 | ||
Interest Rate Cap Agreement Maturity Date December 31, 2020 | |||||
Derivative [Line Items] | |||||
Notional amount | 1,400 | 1,400 | |||
Interest Rate Cap Agreement Maturity Date December 31, 2022 | |||||
Derivative [Line Items] | |||||
Notional amount | 1,400 | 1,400 | |||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Unrealized (loss) gain from hedge accounting | 0 | (4.1) | (0.2) | (12.4) | |
Amount expected to be reclassified from AOCL to interest expense in next twelve months | 6 | ||||
Derivative | |||||
Derivative [Line Items] | |||||
Interest income (expense) reclassified into earnings | $ 1.4 | $ 0.2 | $ 2.5 | $ 1.7 |
Long-Term Debt - Debt Balances
Long-Term Debt - Debt Balances and Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,925.5 | $ 3,337.9 |
Unamortized deferred financing fees | (26) | (20.6) |
Current maturities of long-term debt | (37.9) | (34.1) |
Total long-term debt | 3,861.6 | 3,283.2 |
Total credit facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50 | $ 51 |
CDW UK revolving credit facility | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 0.00% | 0.00% |
Long-term debt | $ 0 | $ 0 |
Senior secured asset-based revolving credit facility | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 1.438% | 5.00% |
Long-term debt | $ 50 | $ 51 |
Total term loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,487.8 | $ 1,499.3 |
CDW UK term loan | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 1.622% | 2.19% |
Long-term debt | $ 57 | $ 61 |
Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 1.93% | 3.55% |
Long-term debt | $ 1,430.8 | $ 1,438.3 |
Total unsecured senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,375 | $ 1,775 |
Senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 5.50% | 5.50% |
Long-term debt | $ 575 | $ 575 |
Senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 4.125% | 0.00% |
Long-term debt | $ 600 | $ 0 |
Senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 5.00% | 5.00% |
Long-term debt | $ 600 | $ 600 |
Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 4.25% | 4.25% |
Long-term debt | $ 600 | $ 600 |
Other long-term obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 12.7 | $ 12.6 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 6 Months Ended | ||||
Jun. 30, 2020GBP (£) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Apr. 21, 2020USD ($) | Dec. 31, 2019 | |
CDW UK revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity of the Revolving Loan | £ 50,000,000 | $ 62,000,000 | |||
Interest rate in effect | 0.00% | 0.00% | 0.00% | ||
Senior secured asset-based revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Undrawn letters of credit | $ 1,000,000 | ||||
Borrowing base | 2,200,000,000 | ||||
Additional borrowing capacity | $ 1,000,000,000 | ||||
Interest rate in effect | 1.438% | 1.438% | 5.00% | ||
CDW UK term loan | |||||
Debt Instrument [Line Items] | |||||
Annual principal repayment installments | £ 5,000,000 | $ 6,000,000 | |||
Amount of restricted payment capacity under the loan | £ 160,000,000 | $ 198,000,000 | |||
Interest rate in effect | 1.622% | 1.622% | 2.19% | ||
Senior secured term loan facility | |||||
Debt Instrument [Line Items] | |||||
Amount of restricted payment capacity under the loan | $ 2,000,000,000 | ||||
Periodic payment, principal | $ 4,000,000 | ||||
Interest rate in effect | 1.93% | 1.93% | 3.55% | ||
Accounts Payable, Inventory Financing | Senior secured asset-based revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Amount owed under Revolving loan financing agreement | $ 432,000,000 | ||||
Senior notes due 2025 | Unsecured senior debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 600,000,000 | ||||
Interest rate in effect | 4.125% |
Long-Term Debt - Fair Value of
Long-Term Debt - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 3,925.5 | $ 3,337.9 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 3,965.2 | $ 3,447.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ 56.3 | $ 64.6 | $ 100.2 | $ 103.3 |
Effective income tax rate reconciliation, percent | 22.90% | 24.70% | 21.90% | 22.80% |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding (in shares) | 142.4 | 145.7 | 142.5 | 146.3 |
Effect of dilutive securities (in shares) | 1.9 | 2.6 | 2.1 | 2.4 |
Diluted weighted-average shares outstanding (in shares) | 144.3 | 148.3 | 144.6 | 148.7 |
Anti-dilutive shares (fewer than) (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020employeesegment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Number of operating segments which do not meet reportable unit quantitative threshold | segment | 2 |
Minimum | Corporate | |
Segment Reporting Information [Line Items] | |
Customer segments, customer employee headcount | employee | 250 |
Maximum | Small Business | |
Segment Reporting Information [Line Items] | |
Customer segments, customer employee headcount | employee | 250 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,365.7 | $ 4,629.9 | $ 8,754.9 | $ 8,587.8 |
Income (loss) from operations | 283.4 | 300.3 | 529.2 | 529.2 |
Depreciation and amortization expense | (125.2) | (65) | (216.6) | (129.3) |
Operating Segments | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,557.5 | 1,883.9 | 3,468.5 | 3,620.1 |
Income (loss) from operations | 123 | 157.2 | 250.4 | 291.9 |
Depreciation and amortization expense | (22.1) | (21.6) | (44.4) | (43.1) |
Operating Segments | Small Business | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 302.1 | 377.4 | 693.6 | 733 |
Income (loss) from operations | 21 | 26.6 | 48.3 | 51 |
Depreciation and amortization expense | (5.6) | (5.6) | (11.4) | (11.2) |
Operating Segments | Public | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,022.1 | 1,840.1 | 3,547.4 | 3,170.8 |
Income (loss) from operations | 159.9 | 129.4 | 272.3 | 205.5 |
Depreciation and amortization expense | (69.1) | (13.7) | (106.8) | (26.4) |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 484 | 528.5 | 1,045.4 | 1,063.9 |
Income (loss) from operations | 16.5 | 19.1 | 31.2 | 44.7 |
Depreciation and amortization expense | (7.9) | (7.8) | (15.9) | (15.2) |
Headquarters | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Income (loss) from operations | (37) | (32) | (73) | (63.9) |
Depreciation and amortization expense | $ (20.5) | $ (16.3) | $ (38.1) | $ (33.4) |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,365.7 | $ 4,629.9 | $ 8,754.9 | $ 8,587.8 |
Percentage of Total Net Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,557.5 | $ 1,883.9 | $ 3,468.5 | $ 3,620.1 |
Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 302.1 | 377.4 | 693.6 | 733 |
Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,022.1 | 1,840.1 | 3,547.4 | 3,170.8 |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 484 | 528.5 | 1,045.4 | 1,063.9 |
Transferred at a point in time where CDW is principal | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,948.3 | 4,254.2 | 7,959.6 | 7,889.3 |
Transferred at a point in time where CDW is principal | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,387.2 | 1,708.2 | 3,128.2 | 3,290 |
Transferred at a point in time where CDW is principal | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 280.7 | 355.5 | 647.4 | 690.7 |
Transferred at a point in time where CDW is principal | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,854.2 | 1,725.5 | 3,258.8 | 2,968.7 |
Transferred at a point in time where CDW is principal | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 426.2 | 465 | 925.2 | 939.9 |
Transferred at a point in time where CDW is agent | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 214.2 | 217.2 | 409.3 | 400.3 |
Transferred at a point in time where CDW is agent | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 112.2 | 118.7 | 219.8 | 222.7 |
Transferred at a point in time where CDW is agent | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 18.9 | 20 | 40.9 | 39.8 |
Transferred at a point in time where CDW is agent | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 68.3 | 65 | 120.6 | 111.3 |
Transferred at a point in time where CDW is agent | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14.8 | 13.5 | 28 | 26.5 |
Transferred over time where CDW is principal | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 203.2 | 158.5 | 386 | 298.2 |
Transferred over time where CDW is principal | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 58.1 | 57 | 120.5 | 107.4 |
Transferred over time where CDW is principal | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2.5 | 1.9 | 5.3 | 2.5 |
Transferred over time where CDW is principal | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 99.6 | 49.6 | 168 | 90.8 |
Transferred over time where CDW is principal | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 43 | 50 | 92.2 | 97.5 |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,557.5 | 1,883.9 | 3,468.5 | 3,620.1 |
Corporate | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,557.5 | 1,883.9 | 3,468.5 | 3,620.1 |
Corporate | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 302.1 | 377.4 | 693.6 | 733 |
Small Business | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 302.1 | 377.4 | 693.6 | 733 |
Small Business | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 719.7 | 578.4 | 1,288.2 | 1,066.8 |
Government | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 719.7 | 578.4 | 1,288.2 | 1,066.8 |
Government | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 876.8 | 773.6 | 1,353 | 1,174 |
Education | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 876.8 | 773.6 | 1,353 | 1,174 |
Education | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 425.6 | 488.1 | 906.2 | 930 |
Healthcare | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 425.6 | 488.1 | 906.2 | 930 |
Healthcare | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 484 | 528.5 | 1,045.4 | 1,063.9 |
Other | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 484 | 528.5 | 1,045.4 | 1,063.9 |
Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,539 | $ 3,737.4 | $ 6,997.1 | $ 6,885.1 |
Percentage of Total Net Sales | 81.10% | 80.70% | 79.90% | 80.10% |
Hardware | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,207.5 | $ 1,497.2 | $ 2,722.6 | $ 2,882.5 |
Hardware | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 247 | 316 | 571.8 | 611.2 |
Hardware | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,719.6 | 1,523.5 | 2,930.3 | 2,587.6 |
Hardware | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 364.9 | 400.7 | 772.4 | 803.8 |
Notebooks/Mobile Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,428.2 | $ 1,164.6 | $ 2,539.3 | $ 2,080.6 |
Percentage of Total Net Sales | 32.70% | 25.20% | 29.00% | 24.20% |
Netcomm Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 471.9 | $ 562.5 | $ 928.1 | $ 1,073.7 |
Percentage of Total Net Sales | 10.80% | 12.10% | 10.60% | 12.50% |
Desktops | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 253.6 | $ 418.3 | $ 635.6 | $ 715.5 |
Percentage of Total Net Sales | 5.80% | 9.00% | 7.30% | 8.30% |
Video | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 248 | $ 348.1 | $ 561.8 | $ 619.2 |
Percentage of Total Net Sales | 5.70% | 7.50% | 6.40% | 7.20% |
Enterprise and Data Storage (Including Drives) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 199.9 | $ 273.1 | $ 440.3 | $ 566.2 |
Percentage of Total Net Sales | 4.60% | 5.90% | 5.00% | 6.60% |
Other Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 937.4 | $ 970.8 | $ 1,892 | $ 1,829.9 |
Percentage of Total Net Sales | 21.50% | 21.00% | 21.60% | 21.30% |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 582.4 | $ 650.6 | $ 1,247.2 | $ 1,242.1 |
Percentage of Total Net Sales | 13.30% | 14.10% | 14.20% | 14.50% |
Software | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 243.2 | $ 269.2 | $ 518 | $ 515.2 |
Software | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 43.2 | 49.1 | 96.5 | 97.2 |
Software | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 227.4 | 262.6 | 467.1 | 482.8 |
Software | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 68.6 | 69.7 | 165.6 | 146.9 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 214.6 | $ 211.3 | $ 445.1 | $ 400.5 |
Percentage of Total Net Sales | 4.90% | 4.60% | 5.10% | 4.70% |
Services | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 92.8 | $ 99.8 | $ 192.9 | $ 187.8 |
Services | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7.1 | 7 | 15.3 | 14 |
Services | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 66.4 | 49.2 | 134.2 | 91.4 |
Services | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 48.3 | 55.3 | 102.7 | 107.3 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 29.7 | $ 30.6 | $ 65.5 | $ 60.1 |
Percentage of Total Net Sales | 0.70% | 0.60% | 0.80% | 0.70% |
Other | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 14 | $ 17.7 | $ 35 | $ 34.6 |
Other | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4.8 | 5.3 | 10 | 10.6 |
Other | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8.7 | 4.8 | 15.8 | 9 |
Other | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2.2 | 2.8 | 4.7 | 5.9 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,870.9 | 4,108.1 | 7,701.7 | 7,535.6 |
United States | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,542.9 | 1,881.7 | 3,450.7 | 3,614.6 |
United States | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 302.1 | 377.4 | 693.6 | 733 |
United States | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,022.1 | 1,840.1 | 3,547.4 | 3,170.8 |
United States | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3.8 | 8.9 | 10 | 17.2 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 494.8 | 521.8 | 1,053.2 | 1,052.2 |
Rest of World | Operating Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14.6 | 2.2 | 17.8 | 5.5 |
Rest of World | Operating Segments | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Rest of World | Operating Segments | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Rest of World | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 480.2 | $ 519.6 | $ 1,035.4 | $ 1,046.7 |