Company Quick10K Filing
CDW
Price121.79 EPS5
Shares148 P/E25
MCap18,049 P/FCF26
Net Debt3,137 EBIT873
TEV21,186 TEV/EBIT24
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-06
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-02-27
10-Q 2018-09-30 Filed 2018-10-31
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-12
10-Q 2014-06-30 Filed 2014-08-13
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-05
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-12
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-03-08
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-10
10-Q 2012-03-31 Filed 2012-05-15
10-K 2011-12-31 Filed 2012-03-09
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-13
10-K 2010-12-31 Filed 2011-03-04
10-Q 2010-09-30 Filed 2010-11-15
8-K 2020-05-21
8-K 2020-05-06
8-K 2020-04-16
8-K 2020-04-16
8-K 2020-02-27
8-K 2020-02-06
8-K 2019-12-17
8-K 2019-10-31
8-K 2019-09-26
8-K 2019-09-12
8-K 2019-09-12
8-K 2019-07-31
8-K 2019-05-21
8-K 2019-05-01
8-K 2019-03-08
8-K 2019-02-07
8-K 2018-12-18
8-K 2018-10-31
8-K 2018-09-18
8-K 2018-08-02
8-K 2018-05-23
8-K 2018-05-02
8-K 2018-02-07

CDW 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 cdw-2020331x10qxex101.htm
EX-10.2 cdw-2020331x10qxex102.htm
EX-22.1 cdw-2020331x10qxex221.htm
EX-31.1 cdw-2020331x10qxex311.htm
EX-31.2 cdw-2020331x10qxex312.htm
EX-32.1 cdw-2020331x10qxex321.htm
EX-32.2 cdw-2020331x10qxex322.htm

CDW Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
5.04.03.02.01.00.02012201420172020
Rev, G Profit, Net Income
0.50.30.20.0-0.1-0.32012201420172020
Ops, Inv, Fin

Document
false--12-31Q1202000014020577900000351000001000000.2950.380.010.0110000000001000000000.01430000001423000001430000001423000001000000280000000014000000000.010.011000000001000000000000P1YP1YP1Y 0001402057 2020-01-01 2020-03-31 0001402057 2020-05-01 0001402057 2020-03-31 0001402057 2019-12-31 0001402057 2019-01-01 2019-03-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001402057 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001402057 2018-12-31 0001402057 us-gaap:CommonStockMember 2018-12-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001402057 us-gaap:CommonStockMember 2019-03-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001402057 us-gaap:RetainedEarningsMember 2019-03-31 0001402057 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001402057 2019-03-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001402057 us-gaap:RetainedEarningsMember 2018-12-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001402057 us-gaap:CommonStockMember 2020-03-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001402057 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001402057 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001402057 cdw:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2019-12-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001402057 us-gaap:CommonStockMember 2019-12-31 0001402057 us-gaap:RetainedEarningsMember 2019-12-31 0001402057 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001402057 cdw:CumulativeEffectPeriodofAdoptionAdjustmentMember 2019-12-31 0001402057 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001402057 us-gaap:RetainedEarningsMember 2020-03-31 0001402057 cdw:AccountsPayableInventoryFinancingMember 2020-03-31 0001402057 cdw:AccountsPayableInventoryFinancingMember 2019-12-31 0001402057 2020-04-01 2020-03-31 0001402057 2022-04-01 2020-03-31 0001402057 2023-04-01 2020-03-31 0001402057 2021-04-01 2020-03-31 0001402057 cdw:InterestRateCapAgreementEffectiveDecember312020ThroughDecember312022Member 2020-03-31 0001402057 us-gaap:DerivativeMember 2020-01-01 2020-03-31 0001402057 us-gaap:DerivativeMember 2019-01-01 2019-03-31 0001402057 us-gaap:InterestRateContractMember 2020-01-01 2020-03-31 0001402057 us-gaap:InterestRateCapMember 2020-03-31 0001402057 us-gaap:InterestRateContractMember 2019-01-01 2019-03-31 0001402057 cdw:InterestRateCapAgreementEffectiveDecember312018ThroughDecember312020Member 2020-03-31 0001402057 us-gaap:InterestRateCapMember 2019-12-31 0001402057 cdw:SeniorSecuredAssetBasedRevolvingCreditFacilityMember 2020-03-31 0001402057 cdw:AccountsPayableInventoryFinancingMember cdw:SeniorSecuredAssetBasedRevolvingCreditFacilityMember 2020-03-31 0001402057 cdw:CDWUKRevolvingCreditFacilityMember 2020-03-31 0001402057 cdw:CDWUKTermLoanMember 2020-03-31 0001402057 cdw:SeniorSecuredTermLoanFacilityMember 2020-03-31 0001402057 cdw:SeniorSecuredTermLoanFacilityMember 2020-01-01 2020-03-31 0001402057 cdw:CDWUKTermLoanMember 2020-01-01 2020-03-31 0001402057 cdw:SeniorSecuredTermLoanFacilityMember 2019-12-31 0001402057 cdw:UnsecuredSeniorNotesMember 2020-03-31 0001402057 cdw:SeniorNotesdue2025Member 2020-03-31 0001402057 cdw:SeniorNotesdue2028Member 2020-03-31 0001402057 cdw:SeniorNotesdue2024Member 2020-03-31 0001402057 cdw:SeniorNotesdue2024Member 2019-12-31 0001402057 cdw:TermLoanMember 2019-12-31 0001402057 cdw:UnsecuredSeniorNotesMember 2019-12-31 0001402057 us-gaap:RevolvingCreditFacilityMember 2020-03-31 0001402057 cdw:OtherlongtermobligationsDomain 2019-12-31 0001402057 cdw:TermLoanMember 2020-03-31 0001402057 cdw:SeniorSecuredAssetBasedRevolvingCreditFacilityMember 2019-12-31 0001402057 cdw:CDWUKRevolvingCreditFacilityMember 2019-12-31 0001402057 cdw:SeniorNotesdue2025Member 2019-12-31 0001402057 cdw:SeniorNotesdue2028Member 2019-12-31 0001402057 cdw:OtherlongtermobligationsDomain 2020-03-31 0001402057 cdw:CDWUKTermLoanMember 2019-12-31 0001402057 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001402057 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001402057 us-gaap:FairValueInputsLevel2Member 2020-03-31 0001402057 srt:MinimumMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-03-31 0001402057 srt:MaximumMember cdw:SmallBusinessMember 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelOtherMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredAtPointInTimeAgentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:TransferredAtPointInTimeAgentMember 2019-01-01 2019-03-31 0001402057 us-gaap:NonUsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:TransferredAtPointInTimePrincipalMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelCorporateMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredOverTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredAtPointInTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelSmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredAtPointInTimeAgentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredAtPointInTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredAtPointInTimeAgentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredAtPointInTimeAgentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelEducationMember 2019-01-01 2019-03-31 0001402057 cdw:SalesChannelGovernmentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredAtPointInTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 cdw:SoftwareProductsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredOverTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredOverTimePrincipalMember 2019-01-01 2019-03-31 0001402057 cdw:TransferredOverTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:TotalHardwareMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:OtherProductsAndServicesMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredAtPointInTimePrincipalMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredOverTimePrincipalMember 2019-01-01 2019-03-31 0001402057 cdw:ServicesMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:SmallBusinessMember 2019-01-01 2019-03-31 0001402057 country:US 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:CorporateSegmentPrivateSectorBusinessMember 2019-01-01 2019-03-31 0001402057 cdw:OtherHardwareMember 2020-01-01 2020-03-31 0001402057 cdw:ServicesMember 2020-01-01 2020-03-31 0001402057 cdw:NetcommProductsMember 2020-01-01 2020-03-31 0001402057 cdw:TotalHardwareMember 2020-01-01 2020-03-31 0001402057 cdw:VideoMember 2019-01-01 2019-03-31 0001402057 cdw:EnterpriseAndDataStorageIncludingDrivesMember 2019-01-01 2019-03-31 0001402057 cdw:OtherProductsAndServicesMember 2020-01-01 2020-03-31 0001402057 cdw:EnterpriseAndDataStorageIncludingDrivesMember 2020-01-01 2020-03-31 0001402057 cdw:NetcommProductsMember 2019-01-01 2019-03-31 0001402057 cdw:NotebooksMobileDevicesMember 2019-01-01 2019-03-31 0001402057 cdw:DesktopsMember 2020-01-01 2020-03-31 0001402057 cdw:SoftwareProductsMember 2020-01-01 2020-03-31 0001402057 cdw:NotebooksMobileDevicesMember 2020-01-01 2020-03-31 0001402057 cdw:OtherHardwareMember 2019-01-01 2019-03-31 0001402057 cdw:DesktopsMember 2019-01-01 2019-03-31 0001402057 cdw:VideoMember 2020-01-01 2020-03-31 0001402057 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 cdw:TransferredAtPointInTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:NonUsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 country:US 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 cdw:TransferredAtPointInTimeAgentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredAtPointInTimeAgentMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelGovernmentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredAtPointInTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredOverTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredAtPointInTimeAgentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelOtherMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredOverTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredAtPointInTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SoftwareProductsMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredOverTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelHealthcareMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelCorporateMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:NonUsMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:CorporateSegmentPrivateSectorBusinessMember cdw:TransferredAtPointInTimeAgentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SmallBusinessMember cdw:TransferredAtPointInTimePrincipalMember 2020-01-01 2020-03-31 0001402057 cdw:TransferredOverTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember cdw:TransferredOverTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredAtPointInTimePrincipalMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:ServicesMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelSmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelEducationMember 2020-01-01 2020-03-31 0001402057 cdw:SalesChannelCorporateMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:TotalHardwareMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelGovernmentMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelEducationMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:OtherProductsAndServicesMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember country:US cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelSmallBusinessMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:PublicSegmentGovernmentAgenciesEducationandHealthcareMember cdw:TransferredAtPointInTimeAgentMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:SmallBusinessMember 2020-01-01 2020-03-31 0001402057 us-gaap:OperatingSegmentsMember cdw:SalesChannelOtherMember cdw:CorporateSegmentPrivateSectorBusinessMember 2020-01-01 2020-03-31 0001402057 cdw:SeniorNotesFourPointOneTwoFiveDue2025Member us-gaap:SubsequentEventMember 2020-04-21 iso4217:USD xbrli:shares cdw:employee iso4217:GBP iso4217:USD xbrli:shares xbrli:pure cdw:segment cdw:subsidiary

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    

Commission File Number 001-35985
CDW CORPORATION
(Exact name of registrant as specified in its charter) 
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)
(847) 465-6000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:



 
Large accelerated filer
 
  
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated filer
 
☐ 
  
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth 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.
 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       Yes      No
As of May 1, 2020, there were 142,318,092 shares of common stock, $0.01 par value, outstanding.
 



CDW CORPORATION AND SUBSIDIARIES
FORM 10-Q

TABLE OF CONTENTS

 
 
Page
PART I
FINANCIAL INFORMATION
 
Item 1.
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
PART II
OTHER INFORMATION
 
Item 1.
Item 1A.  
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
SIGNATURES




PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in millions, except per share amounts)
 
March 31, 2020
 
December 31, 2019
Assets
(unaudited)
 

Current assets:
 
 
 
Cash and cash equivalents
$
214.4

 
$
154.0

Accounts receivable, net of allowance for credit losses of $35.1 and $7.9, respectively
3,149.4

 
3,002.2

Merchandise inventory
672.1

 
611.2

Miscellaneous receivables
442.5

 
395.1

Prepaid expenses and other
187.4

 
171.6

Total current assets
4,665.8

 
4,334.1

Operating lease right-of-use assets
129.5

 
131.8

Property and equipment, net
331.9

 
363.1

Goodwill
2,529.5

 
2,553.0

Other intangible assets, net
540.2

 
594.1

Other assets
25.5

 
23.3

Total Assets
$
8,222.4

 
$
7,999.4

Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable-trade
$
1,967.1

 
$
1,835.0

Accounts payable-inventory financing
345.5

 
429.9

Current maturities of long-term debt
33.7

 
34.1

Contract liabilities
257.6

 
252.2

Accrued expenses and other current liabilities:
 
 

Compensation
201.3

 
212.3

Advertising
158.6

 
147.9

Sales and income taxes
135.4

 
88.6

Other
548.0

 
491.4

Total current liabilities
3,647.2

 
3,491.4

Long-term liabilities:
 
 
 
Debt
3,438.5

 
3,283.2

Deferred income taxes
62.8

 
62.4

Operating lease liabilities
129.2

 
131.1

Other liabilities
55.0

 
71.0

Total long-term liabilities
3,685.5

 
3,547.7

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; 142.3 and 143.0 shares outstanding, respectively
1.4

 
1.4

Paid-in capital
3,114.9

 
3,095.3

Accumulated deficit
(2,067.3
)
 
(2,018.6
)
Accumulated other comprehensive loss
(159.3
)
 
(117.8
)
Total stockholders' equity
889.7

 
960.3

Total Liabilities and Stockholders' Equity
$
8,222.4

 
$
7,999.4


The accompanying notes are an integral part of the Consolidated Financial Statements.

3


CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per-share amounts)
(unaudited)
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Net sales
 
$
4,389.2

 
$
3,957.9

Cost of sales
 
3,632.7

 
3,285.8

Gross profit
 
756.5

 
672.1

Selling and administrative expenses
 
510.7

 
443.2

Operating income
 
245.8

 
228.9

Interest expense, net
 
(37.9
)
 
(38.3
)
Other income, net
 
3.9

 
1.0

Income before income taxes
 
211.8

 
191.6

Income tax expense
 
(43.9
)
 
(38.7
)
Net income
 
$
167.9

 
$
152.9

 
 
 
 
 
Net income per common share:
 
 
 
 
Basic
 
$
1.18

 
$
1.04

Diluted
 
$
1.16

 
$
1.02

 
 
 
 
 
Weighted-average common shares outstanding:
 
 
 
 
Basic
 
142.7

 
147.0

Diluted
 
144.9

 
149.2


The accompanying notes are an integral part of the Consolidated Financial Statements.

4


CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(dollars in millions)
(unaudited)
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Net income
 
$
167.9

 
$
152.9

Other comprehensive (loss) income:
 
 
 
 
Unrealized loss from hedge accounting, net of tax
 
(0.2
)
 
(8.3
)
Reclassification of hedge accounting gain to net income, net of tax
 
1.1

 
1.5

Foreign currency translation, net of tax
 
(42.4
)
 
9.9

Other comprehensive (loss) income
 
(41.5
)
 
3.1

Comprehensive income
 
$
126.4

 
$
156.0

The accompanying notes are an integral part of the Consolidated Financial Statements.

5


CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(dollars in millions)
(unaudited)
 
 
Three Months Ended March 31, 2020
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Paid-in
Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive Loss
 
Total
Stockholders' Equity
Balance as of December 31, 2019
 
143.0

 
$
1.4

 
$
3,095.3

 
$
(2,018.6
)
 
$
(117.8
)
 
$
960.3

Net income
 

 

 

 
167.9

 

 
167.9

Equity-based compensation expense
 

 

 
8.8

 

 

 
8.8

Stock option exercises
 
0.4

 

 
7.1

 

 

 
7.1

Coworker Stock Purchase Plan
 

 

 
3.5

 

 

 
3.5

Repurchases of common stock
 
(1.1
)
 

 

 
(140.8
)
 

 
(140.8
)
Dividends paid ($0.380 per share)
 

 

 
0.2

 
(54.4
)
 

 
(54.2
)
Incentive compensation plan stock withheld for taxes
 

 

 

 
(21.9
)
 

 
(21.9
)
Foreign currency translation
 

 

 

 

 
(42.4
)
 
(42.4
)
Unrealized loss from hedge accounting
 

 

 

 

 
(0.2
)
 
(0.2
)
Realized gain from hedge accounting
 

 

 

 

 
1.1

 
1.1

Impact of adoption of Topic 326
 

 

 

 
0.5

 

 
0.5

Balance as of March 31, 2020
 
142.3

 
$
1.4

 
$
3,114.9

 
$
(2,067.3
)
 
$
(159.3
)
 
$
889.7

 
 
Three Months Ended March 31, 2019
 
 
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
 

 

 

 
152.9

 

 
152.9

Equity-based compensation expense
 

 

 
12.2

 

 

 
12.2

Stock option exercises
 
0.5

 

 
13.0

 

 

 
13.0

Coworker Stock Purchase Plan
 

 

 
3.0

 

 

 
3.0

Repurchases of common stock
 
(1.9
)
 

 

 
(177.1
)
 

 
(177.1
)
Dividends paid ($0.295 per share)
 

 

 
0.2

 
(43.6
)
 

 
(43.4
)
Incentive compensation plan stock withheld for taxes
 

 

 

 
(11.6
)
 

 
(11.6
)
Foreign currency translation
 

 

 

 

 
9.9

 
9.9

Unrealized loss from hedge accounting
 

 

 

 

 
(8.3
)
 
(8.3
)
Realized gain from hedge accounting
 

 

 

 

 
1.5

 
1.5

Balance as of March 31, 2019
 
146.3

 
$
1.5

 
$
3,025.3

 
$
(1,972.0
)
 
$
(127.5
)
 
$
927.3

The accompanying notes are an integral part of the Consolidated Financial Statements.

6


CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
(unaudited)
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Cash flows from operating activities:
 
 
 
 
Net income
 
$
167.9

 
$
152.9

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
91.4

 
64.3

Equity-based compensation expense
 
8.8

 
12.7

Deferred income taxes
 
2.6

 
(13.7
)
Provision for credit losses
 
29.2

 
0.5

Other
 
1.4

 
2.3

Changes in assets and liabilities:
 
 
 
 
Accounts receivable
 
(209.0
)
 
11.9

Merchandise inventory
 
(66.4
)
 
(134.2
)
Other assets
 
(63.7
)
 
(31.9
)
Accounts payable-trade
 
157.4

 
116.0

Other liabilities
 
103.4

 
71.6

Net cash provided by operating activities
 
223.0

 
252.4

Cash flows used in investing activities:
 
 
 
 
Capital expenditures
 
(25.4
)
 
(19.4
)
Acquisition of business, net of cash acquired
 

 
(68.7
)
Net cash used in investing activities
 
(25.4
)
 
(88.1
)
Cash flows used in financing activities:
 
 
 
 
Proceeds from borrowings under revolving credit facility
 
781.0

 
88.5

Repayments of borrowings under revolving credit facility
 
(619.5
)
 
(12.5
)
Net change in accounts payable-inventory financing
 
(81.4
)
 
70.2

Repurchases of common stock
 
(140.8
)
 
(177.1
)
Payment of incentive compensation plan withholding taxes
 
(21.9
)
 
(11.6
)
Dividend payments
 
(54.2
)
 
(43.4
)
Other
 
6.8

 
5.7

Net cash used in financing activities
 
(130.0
)
 
(80.2
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(7.2
)
 
0.8

Net increase in cash, cash equivalents and restricted cash
 
60.4

 
84.9

Cash, cash equivalents and restricted cash—beginning of period
 
154.0

 
205.8

Cash, cash equivalents and restricted cash—end of period
 
$
214.4

 
$
290.7

Supplementary disclosure of cash flow information:
 
 
 
 
Interest paid
 
$
(28.6
)
 
$
(44.1
)
Taxes paid, net
 
$
(9.9
)
 
$
(11.4
)

The accompanying notes are an integral part of the Consolidated Financial Statements.

7

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)


1.
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 March 31, 2020 and for the three months ended March 31, 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, 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

8

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

- 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 three months ended March 31, 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 unemployment rate or gross domestic product growth.
Cash, Cash Equivalents and Restricted Cash
Restricted cash represents funds that are restricted to satisfy designated current liabilities. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts in the Consolidated Statements of Cash Flows.
 
 
March 31, 2020
 
December 31, 2019
 
March 31, 2019
 
December 31, 2018
Cash and cash equivalents
 
$
214.4

 
$
154.0

 
$
285.0

 
$
205.8

Restricted cash:
 
 
 
 
 
 
 
 
   Prepaid expenses and other
 

 

 
5.7

 

Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows
 
$
214.4

 
$
154.0

 
$
290.7

 
$
205.8


Advertising
Advertising costs are generally charged to expense in the period incurred. During the three months ended March 31, 2020 and 2019, the Company had advertising costs of $45 million and $39 million, respectively, recorded in Selling and administrative expenses in the Consolidated Statements of Operations.

2.
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. The 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 Company elected the expedient for cash flow hedges to assert the probability of the hedged forecasted transaction under Topic 815: Derivatives and Hedging, regardless of any expected modification in terms related to reference rate reform. This election did not have an impact to the Company’s Consolidated Financial Statements. As the Company begins modifying contracts impacted by reference rate reform, the other optional expedients will be evaluated for impact on the Consolidated Financial Statements.
Measurement of Credit Losses on Financial Instruments
On January 1, 2020, the Company adopted and applied ASU 2016-13, Financial Instruments - Credit Losses (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.


9

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

3.
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:
 
 
March 31, 2020
 
December 31, 2019
Revolving Loan inventory financing agreement(1)
 
$
303.8

 
$
379.1

Other inventory financing agreements
 
41.7

 
50.8

Accounts payable-inventory financing
 
$
345.5

 
$
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.
4.
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 March 31, 2020 and December 31, 2019, the contract liability balance was $258 million and $252 million, respectively. During the three months ended March 31, 2020 and 2019, the Company recognized revenue of $123 million and $74 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 March 31, 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
 
$
42.7

 
$
20.6

 
$
8.6

 
$
0.5


5.
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 March 31, 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 March 31, 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.

10

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

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 and are subsequently reclassified into Interest expense in the period when the hedged forecasted transaction affects earnings. The Company recorded an insignificant loss and a $8 million loss, net of tax, into Accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019, respectively. During the three months ended March 31, 2020 and 2019, the Company reclassified $1 million and $2 million, net of tax, respectively, from Accumulated other comprehensive loss to earnings within Interest expense, net on the Consolidated Statements of Operations. The Company expects to reclassify $7 million from Accumulated other comprehensive loss to earnings within Interest expense, net during the next 12 months.
6.
Long-Term Debt
 
 
 
 
As of March 31, 2020
 
As of December 31, 2019
 
 
Maturity
 
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
 
2.62
%
 
212.5

 
5.00
%
 
51.0

Total credit facilities
 
 
 
 
 
212.5

 
 
 
51.0

 
 
 
 
 
 
 
 
 
 
 
Term Loans
 
 
 
 
 
 
 
 
 
 
CDW UK term loan(1)
 
August 2021
 
2.07
%
 
57.1

 
2.19
%
 
61.0

Senior secured term loan facility
 
October 2026
 
2.74
%
 
1,434.5

 
3.55
%
 
1,438.3

Total term loans
 
 
 
 
 
1,491.6

 
 
 
1,499.3

 
 
 
 
 
 
 
 
 
 
 
Unsecured Senior Notes
 
 
 
 
 
 
 
 
 
 
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

 
4.25
%
 
600.0

Total unsecured senior notes
 
 
 
 
 
1,775.0

 
 
 
1,775.0

 
 
 
 
 
 
 
 
 
 
 
Other long-term obligations
 
 
 
 
 
12.8

 
 
 
12.6

Unamortized deferred financing fees
 
 
 
 
 
(19.7
)
 
 
 
(20.6
)
Current maturities of long-term debt
 
 
 
 
 
(33.7
)
 
 
 
(34.1
)
Total long-term debt
 
 
 
 
 
$
3,438.5

 
 
 
$
3,283.2

(1)
British pound-denominated debt facilities.
As of March 31, 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 March 31, 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 March 31, 2020, the Revolving Loan had less than $1 million of undrawn letters of credit, $301 million reserved for the floorplan sub-facility and a borrowing base of $1.9 billion, which is based on the

11

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

amount of eligible inventory and accounts receivable balances as of February 29, 2020. As of March 31, 2020, the Company could have borrowed up to an additional $0.9 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 March 31, 2020, the amount of restricted payment capacity under the CDW UK term loan was £204 million ($253 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 March 31, 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 March 31, 2020, the amount of CDW's restricted payment capacity under the Term Loan was $1.9 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.
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:
 
 
March 31, 2020
 
December 31, 2019
Fair value
 
$
3,429.4

 
$
3,447.5

Carrying value
 
3,491.9

 
3,337.9


7.
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 will be 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 $44 million and $39 million for the three months ended March 31, 2020 and 2019, respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 20.7% for the three months ended March 31, 2020 and differed from the US federal statutory rate of 21.0% primarily due to excess tax benefits on equity-based compensation, partially offset by state and local income taxes. The effective tax rate for the three months ended March 31, 2019 was 20.2% and differed from the US federal statutory rate of 21.0%

12

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

primarily due to excess tax benefits on equity-based compensation and a discrete tax benefit related to CDW Canada’s acquisition of Scalar Decisions Inc., partially offset by state and local income taxes.
8.
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 March 31,
 
2020
 
2019
Basic weighted-average shares outstanding
142.7

 
147.0

Effect of dilutive securities(1)
2.2

 
2.2

Diluted weighted-average shares outstanding(2)
144.9

 
149.2


(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 months ended March 31, 2020 and 2019 as their inclusion would have had an anti-dilutive effect.
9.
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 March 31, 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.
10.
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.

13

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

Information about the Company's segments is as follows:
 
 
Corporate
 
Small Business
 
Public
 
Other
 
Headquarters
 
Total
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,911.0

 
$
391.5

 
$
1,525.3

 
$
561.4

 
$

 
$
4,389.2

Operating income (loss)
 
127.4

 
27.3

 
112.4

 
14.7

 
(36.0
)
 
245.8

Depreciation and amortization expense
 
(22.3
)
 
(5.8
)
 
(37.7
)
 
(8.0
)
 
(17.6
)
 
(91.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,736.2

 
$
355.6

 
$
1,330.7

 
$
535.4

 
$

 
$
3,957.9

Operating income (loss)
 
134.7

 
24.4

 
76.1

 
25.6

 
(31.9
)
 
228.9

Depreciation and amortization expense
 
(21.5
)
 
(5.6
)
 
(12.7
)
 
(7.4
)
 
(17.1
)
 
(64.3
)

14

CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in millions, except per share data, unless otherwise noted)

Geographic Areas and Revenue Mix

 
Three Months Ended March 31, 2020
 
Corporate
 
Small Business
 
Public
 
Other
 
Total
Geography(1)
 
 
 
 
 
 
 
 
 
United States
$
1,907.8

 
$
391.5

 
$
1,525.3

 
$
6.2

 
$
3,830.8

Rest of World
3.2

 

 

 
555.2

 
558.4

Total Net sales
1,911.0

 
391.5

 
1,525.3

 
561.4

 
4,389.2

 
 
 
 
 
 
 
 
 

Major Product and Services
 
 
 
 
 
 
 
 

Hardware
1,513.9

 
324.4

 
1,210.8

 
407.4

 
3,456.5