|
Delaware
|
|
26-0273989
|
||
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
||
|
|
|
|
|
75 Tri-State International
|
|
|
||
Lincolnshire
|
,
|
Illinois
|
|
60069
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common stock, par value $0.01 per share
|
CDW
|
Nasdaq Global Select Market
|
|
|
|
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
|
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions, except per-share amounts)
|
|||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Assets
|
(unaudited)
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
166.9
|
|
|
$
|
205.8
|
|
Accounts receivable, net of allowance for doubtful accounts of $9.1 and $7.0, respectively
|
2,899.5
|
|
|
2,671.2
|
|
||
Merchandise inventory
|
603.6
|
|
|
454.3
|
|
||
Miscellaneous receivables
|
432.2
|
|
|
316.4
|
|
||
Prepaid expenses and other
|
193.1
|
|
|
149.1
|
|
||
Total current assets
|
4,295.3
|
|
|
3,796.8
|
|
||
Operating lease right-of-use assets
|
84.2
|
|
|
—
|
|
||
Property and equipment, net
|
171.1
|
|
|
156.1
|
|
||
Goodwill
|
2,515.9
|
|
|
2,462.8
|
|
||
Other intangible assets, net
|
616.1
|
|
|
712.2
|
|
||
Other assets
|
20.5
|
|
|
39.8
|
|
||
Total Assets
|
$
|
7,703.1
|
|
|
$
|
7,167.7
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable-trade
|
$
|
1,900.0
|
|
|
$
|
1,577.1
|
|
Accounts payable-inventory financing
|
411.7
|
|
|
429.3
|
|
||
Current maturities of long-term debt
|
25.4
|
|
|
25.3
|
|
||
Contract liabilities
|
212.1
|
|
|
178.3
|
|
||
Accrued expenses and other current liabilities:
|
|
|
|
||||
Compensation
|
191.4
|
|
|
186.4
|
|
||
Advertising
|
158.0
|
|
|
119.2
|
|
||
Sales and income taxes
|
51.4
|
|
|
55.5
|
|
||
Other
|
291.0
|
|
|
232.0
|
|
||
Total current liabilities
|
3,241.0
|
|
|
2,803.1
|
|
||
Long-term liabilities:
|
|
|
|
||||
Debt
|
3,259.0
|
|
|
3,183.3
|
|
||
Deferred income taxes
|
111.3
|
|
|
141.9
|
|
||
Operating lease liabilities
|
81.7
|
|
|
—
|
|
||
Other liabilities
|
75.0
|
|
|
64.2
|
|
||
Total long-term liabilities
|
3,527.0
|
|
|
3,389.4
|
|
||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $0.01 par value, 100.0 shares authorized; no shares issued or outstanding for both periods
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 1,000.0 shares authorized; 143.9 and 147.7 shares outstanding, respectively
|
1.4
|
|
|
1.5
|
|
||
Paid-in capital
|
3,073.2
|
|
|
2,996.9
|
|
||
Accumulated deficit
|
(1,985.4
|
)
|
|
(1,892.6
|
)
|
||
Accumulated other comprehensive loss
|
(154.1
|
)
|
|
(130.6
|
)
|
||
Total stockholders' equity
|
935.1
|
|
|
975.2
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
7,703.1
|
|
|
$
|
7,167.7
|
|
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per-share amounts)
(unaudited)
|
||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
|
$
|
4,907.7
|
|
|
$
|
4,373.2
|
|
|
$
|
13,495.5
|
|
|
$
|
12,165.7
|
|
Cost of sales
|
|
4,091.2
|
|
|
3,659.6
|
|
|
11,233.1
|
|
|
10,152.6
|
|
||||
Gross profit
|
|
816.5
|
|
|
713.6
|
|
|
2,262.4
|
|
|
2,013.1
|
|
||||
Selling and administrative expenses
|
|
444.9
|
|
|
390.7
|
|
|
1,269.3
|
|
|
1,134.8
|
|
||||
Advertising expense
|
|
51.0
|
|
|
48.1
|
|
|
143.3
|
|
|
133.9
|
|
||||
Operating income
|
|
320.6
|
|
|
274.8
|
|
|
849.8
|
|
|
744.4
|
|
||||
Interest expense, net
|
|
(42.3
|
)
|
|
(36.6
|
)
|
|
(121.1
|
)
|
|
(111.5
|
)
|
||||
Other (expense) income, net
|
|
(17.4
|
)
|
|
0.2
|
|
|
(15.0
|
)
|
|
1.0
|
|
||||
Income before income taxes
|
|
260.9
|
|
|
238.4
|
|
|
713.7
|
|
|
633.9
|
|
||||
Income tax expense
|
|
(59.2
|
)
|
|
(54.7
|
)
|
|
(162.5
|
)
|
|
(150.2
|
)
|
||||
Net income
|
|
$
|
201.7
|
|
|
$
|
183.7
|
|
|
$
|
551.2
|
|
|
$
|
483.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.39
|
|
|
$
|
1.22
|
|
|
$
|
3.78
|
|
|
$
|
3.19
|
|
Diluted
|
|
$
|
1.37
|
|
|
$
|
1.20
|
|
|
$
|
3.72
|
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
144.5
|
|
|
150.9
|
|
|
145.7
|
|
|
151.6
|
|
||||
Diluted
|
|
147.2
|
|
|
153.7
|
|
|
148.2
|
|
|
154.1
|
|
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
|
||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
|
$
|
201.7
|
|
|
$
|
183.7
|
|
|
$
|
551.2
|
|
|
$
|
483.7
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Unrealized (loss) gain from hedge accounting, net of tax
|
|
(0.4
|
)
|
|
(1.0
|
)
|
|
(12.8
|
)
|
|
3.1
|
|
||||
Reclassification of hedge accounting gain to net income, net of tax
|
|
0.3
|
|
|
1.1
|
|
|
2.0
|
|
|
2.5
|
|
||||
Foreign currency translation, net of tax
|
|
(14.6
|
)
|
|
(3.2
|
)
|
|
(12.7
|
)
|
|
(17.9
|
)
|
||||
Other comprehensive loss
|
|
(14.7
|
)
|
|
(3.1
|
)
|
|
(23.5
|
)
|
|
(12.3
|
)
|
||||
Comprehensive income
|
|
$
|
187.0
|
|
|
$
|
180.6
|
|
|
$
|
527.7
|
|
|
$
|
471.4
|
|
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions)
(unaudited)
|
|||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Paid-in
Capital |
|
Accumulated
Deficit |
|
Accumulated
Other Comprehensive Loss |
|
Total
Stockholders' Equity |
|||||||||||
Balance as of June 30, 2019
|
|
145.0
|
|
|
$
|
1.5
|
|
|
$
|
3,047.6
|
|
|
$
|
(1,973.6
|
)
|
|
$
|
(139.4
|
)
|
|
$
|
936.1
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201.7
|
|
|
—
|
|
|
201.7
|
|
|||||
Equity-based compensation expense
|
|
—
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
|||||
Stock option exercises
|
|
0.3
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|||||
Coworker stock purchase plan
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|||||
Repurchases of common stock
|
|
(1.4
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(161.0
|
)
|
|
—
|
|
|
(161.1
|
)
|
|||||
Dividends paid ($0.295 per share)
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(42.8
|
)
|
|
—
|
|
|
(42.6
|
)
|
|||||
Incentive compensation plan stock withheld for taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.7
|
)
|
|
—
|
|
|
(9.7
|
)
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.6
|
)
|
|
(14.6
|
)
|
|||||
Unrealized loss from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|||||
Realized gain from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Balance as of September 30, 2019
|
|
143.9
|
|
|
$
|
1.4
|
|
|
$
|
3,073.2
|
|
|
$
|
(1,985.4
|
)
|
|
$
|
(154.1
|
)
|
|
$
|
935.1
|
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Paid-in
Capital |
|
Accumulated
Deficit |
|
Accumulated
Other Comprehensive Loss |
|
Total
Stockholders' Equity |
|||||||||||
Balance as of June 30, 2018
|
|
151.5
|
|
|
$
|
1.5
|
|
|
$
|
2,953.3
|
|
|
$
|
(1,780.8
|
)
|
|
$
|
(105.1
|
)
|
|
$
|
1,068.9
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183.7
|
|
|
—
|
|
|
183.7
|
|
|||||
Equity-based compensation expense
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|||||
Stock option exercises
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|||||
Coworker stock purchase plan
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|||||
Repurchases of common stock
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(56.1
|
)
|
|
—
|
|
|
(56.1
|
)
|
|||||
Dividends paid ($0.210 per share)
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(31.9
|
)
|
|
—
|
|
|
(31.7
|
)
|
|||||
Incentive compensation plan stock withheld for taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.4
|
)
|
|
—
|
|
|
(18.4
|
)
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
|||||
Unrealized loss from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|||||
Realized gain from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
|||||
Balance as of September 30, 2018
|
|
150.9
|
|
|
$
|
1.5
|
|
|
$
|
2,970.9
|
|
|
$
|
(1,703.5
|
)
|
|
$
|
(108.2
|
)
|
|
$
|
1,160.7
|
|
|
Nine Months Ended September 30, 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
|
|
—
|
|
|
—
|
|
|
—
|
|
|
551.2
|
|
|
—
|
|
|
551.2
|
|
|||||
Equity-based compensation expense
|
|
—
|
|
|
—
|
|
|
36.9
|
|
|
—
|
|
|
—
|
|
|
36.9
|
|
|||||
Stock option exercises
|
|
1.0
|
|
|
—
|
|
|
27.6
|
|
|
—
|
|
|
—
|
|
|
27.6
|
|
|||||
Coworker stock purchase plan
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|||||
Repurchases of common stock
|
|
(4.8
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(493.2
|
)
|
|
—
|
|
|
(493.3
|
)
|
|||||
Dividends paid ($0.885 per share)
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
(129.5
|
)
|
|
—
|
|
|
(128.9
|
)
|
|||||
Incentive compensation plan stock withheld for taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21.3
|
)
|
|
—
|
|
|
(21.3
|
)
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.7
|
)
|
|
(12.7
|
)
|
|||||
Unrealized loss from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.8
|
)
|
|
(12.8
|
)
|
|||||
Realized gain from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
2.0
|
|
|||||
Balance as of September 30, 2019
|
|
143.9
|
|
|
$
|
1.4
|
|
|
$
|
3,073.2
|
|
|
$
|
(1,985.4
|
)
|
|
$
|
(154.1
|
)
|
|
$
|
935.1
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Paid-in
Capital |
|
Accumulated
Deficit |
|
Accumulated
Other Comprehensive Loss |
|
Total
Stockholders' Equity |
|||||||||||
Balance as of December 31, 2017
|
|
153.1
|
|
|
$
|
1.5
|
|
|
$
|
2,911.6
|
|
|
$
|
(1,831.6
|
)
|
|
$
|
(95.9
|
)
|
|
$
|
985.6
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
483.7
|
|
|
—
|
|
|
483.7
|
|
|||||
Equity-based compensation expense
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|||||
Stock option exercises
|
|
0.7
|
|
|
—
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
24.4
|
|
|||||
Coworker stock purchase plan
|
|
0.1
|
|
|
—
|
|
|
8.4
|
|
|
—
|
|
|
—
|
|
|
8.4
|
|
|||||
Repurchases of common stock
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
(232.5
|
)
|
|
—
|
|
|
(232.5
|
)
|
|||||
Dividends paid ($0.640 per share)
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(96.0
|
)
|
|
—
|
|
|
(95.5
|
)
|
|||||
Incentive compensation plan stock withheld for taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.1
|
)
|
|
—
|
|
|
(27.1
|
)
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.9
|
)
|
|
(17.9
|
)
|
|||||
Unrealized gain from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
|||||
Realized gain from hedge accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
2.5
|
|
|||||
Balance as of September 30, 2018
|
|
150.9
|
|
|
$
|
1.5
|
|
|
$
|
2,970.9
|
|
|
$
|
(1,703.5
|
)
|
|
$
|
(108.2
|
)
|
|
$
|
1,160.7
|
|
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
|
||||||||
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
551.2
|
|
|
$
|
483.7
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
197.5
|
|
|
198.7
|
|
||
Equity-based compensation expense
|
|
37.7
|
|
|
29.9
|
|
||
Deferred income taxes
|
|
(33.5
|
)
|
|
(39.2
|
)
|
||
Other
|
|
25.2
|
|
|
8.7
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||||
Accounts receivable
|
|
(171.8
|
)
|
|
(334.3
|
)
|
||
Merchandise inventory
|
|
(151.1
|
)
|
|
(72.1
|
)
|
||
Other assets
|
|
(82.2
|
)
|
|
(66.1
|
)
|
||
Accounts payable-trade
|
|
264.0
|
|
|
300.6
|
|
||
Other liabilities
|
|
45.3
|
|
|
92.4
|
|
||
Net cash provided by operating activities
|
|
682.3
|
|
|
602.3
|
|
||
Cash flows used in investing activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(75.0
|
)
|
|
(53.4
|
)
|
||
Acquisition of business, net of cash acquired
|
|
(75.0
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(150.0
|
)
|
|
(53.4
|
)
|
||
Cash flows used in financing activities:
|
|
|
|
|
||||
Proceeds from borrowings under revolving credit facility
|
|
1,860.5
|
|
|
688.9
|
|
||
Repayments of borrowings under revolving credit facility
|
|
(1,834.5
|
)
|
|
(681.9
|
)
|
||
Repayments of long-term debt
|
|
(19.7
|
)
|
|
(18.2
|
)
|
||
Proceeds from issuance of long-term debt
|
|
600.0
|
|
|
—
|
|
||
Payments to extinguish long-term debt
|
|
(538.1
|
)
|
|
—
|
|
||
Net change in accounts payable-inventory financing
|
|
(17.4
|
)
|
|
(90.1
|
)
|
||
Repurchases of common stock
|
|
(493.3
|
)
|
|
(232.5
|
)
|
||
Payment of incentive compensation plan withholding taxes
|
|
(21.3
|
)
|
|
(27.1
|
)
|
||
Dividend payments
|
|
(128.9
|
)
|
|
(95.5
|
)
|
||
Other
|
|
24.2
|
|
|
21.1
|
|
||
Net cash used in financing activities
|
|
(568.5
|
)
|
|
(435.3
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(2.7
|
)
|
|
(2.7
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(38.9
|
)
|
|
110.9
|
|
||
Cash and cash equivalents—beginning of period
|
|
205.8
|
|
|
144.2
|
|
||
Cash and cash equivalents—end of period
|
|
$
|
166.9
|
|
|
$
|
255.1
|
|
Supplementary disclosure of cash flow information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
(124.8
|
)
|
|
$
|
(117.4
|
)
|
Taxes paid, net
|
|
$
|
(203.0
|
)
|
|
$
|
(200.5
|
)
|
1.
|
Description of Business and Summary of Significant Accounting Policies
|
2.
|
Recent Accounting Pronouncements
|
3.
|
Acquisition
|
(in millions)
|
|
Acquisition-Date Fair Value
|
||
Net assets acquired
|
|
$
|
5.7
|
|
Identified intangible assets(1)
|
|
20.3
|
|
|
Goodwill(2)
|
|
62.0
|
|
|
Total purchase price
|
|
$
|
88.0
|
|
(1)
|
Net of a related deferred tax liability of $7 million.
|
(2)
|
Goodwill in the amount of $62 million was recognized in connection with the acquisition of Scalar, primarily attributed to cross selling opportunities and overall corporate synergies. The full amount of goodwill recognized is not deductible for income tax purposes in Canada.
|
4.
|
Inventory Financing Agreements
|
(in millions)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Revolving Loan inventory financing agreement(1)
|
|
$
|
382.1
|
|
|
$
|
406.3
|
|
Other inventory financing agreements
|
|
29.6
|
|
|
23.0
|
|
||
Accounts payable-inventory financing
|
|
$
|
411.7
|
|
|
$
|
429.3
|
|
(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.
|
5.
|
Contract Liabilities and Performance Obligations
|
(in millions)
|
|
Within 1 Year
|
|
Years 1-2
|
|
Years 2-3
|
|
Thereafter
|
||||||||
Remaining performance obligations
|
|
$
|
40.2
|
|
|
$
|
17.6
|
|
|
$
|
5.1
|
|
|
$
|
0.3
|
|
6.
|
Financial Instruments
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||
Notional Value (in millions)
|
|
Effective Date
|
|
Maturity Date
|
|
Fair Value (in millions)
|
|
Fair Value (in millions)
|
||||||
$
|
1,400.0
|
|
|
December 31, 2018
|
|
December 31, 2020
|
|
$
|
0.1
|
|
|
$
|
10.6
|
|
1,400.0
|
|
|
December 31, 2020
|
|
December 31, 2022
|
|
1.0
|
|
|
1.5
|
|
|||
|
|
|
|
|
|
$
|
1.1
|
|
|
$
|
12.1
|
|
7.
|
Long-Term Debt
|
|
|
|
|
As of September 30, 2019
|
|
As of December 31, 2018
|
||||||||||
(dollars in millions)
|
|
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
|
|
3.31
|
%
|
|
26.0
|
|
|
—
|
%
|
|
—
|
|
||
Total credit facilities
|
|
|
|
|
|
26.0
|
|
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Term Loans
|
|
|
|
|
|
|
|
|
|
|
||||||
CDW UK term loan(1)
|
|
August 2021
|
|
2.16
|
%
|
|
56.5
|
|
|
2.29
|
%
|
|
65.0
|
|
||
Senior secured term loan facility(2)
|
|
August 2023
|
|
3.80
|
%
|
|
1,442.0
|
|
|
4.10
|
%
|
|
1,453.2
|
|
||
Total term loans
|
|
|
|
|
|
1,498.5
|
|
|
|
|
1,518.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Unsecured Senior Notes
|
|
|
|
|
|
|
|
|
|
|
||||||
Senior notes due 2023 ("2023 Senior Notes")
|
|
September 2023
|
|
—
|
%
|
|
—
|
|
|
5.00
|
%
|
|
525.0
|
|
||
Senior notes due 2024 ("2024 Senior Notes")
|
|
December 2024
|
|
5.50
|
%
|
|
575.0
|
|
|
5.50
|
%
|
|
575.0
|
|
||
Senior notes due 2025 ("2025 Senior Notes")
|
|
September 2025
|
|
5.00
|
%
|
|
600.0
|
|
|
5.00
|
%
|
|
600.0
|
|
||
Senior notes due 2028 ("2028 Senior Notes")
|
|
April 2028
|
|
4.25
|
%
|
|
600.0
|
|
|
—
|
%
|
|
—
|
|
||
Total unsecured senior notes
|
|
|
|
|
|
1,775.0
|
|
|
|
|
1,700.0
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Other long-term obligations
|
|
|
|
|
|
4.4
|
|
|
|
|
8.3
|
|
||||
Unamortized deferred financing fees
|
|
|
|
|
|
(19.5
|
)
|
|
|
|
(17.9
|
)
|
||||
Current maturities of long-term debt
|
|
|
|
|
|
(25.4
|
)
|
|
|
|
(25.3
|
)
|
||||
Total long-term debt
|
|
|
|
|
|
$
|
3,259.0
|
|
|
|
|
$
|
3,183.3
|
|
(1)
|
British pound-denominated debt facilities.
|
(2)
|
See Note 14 (Subsequent Events).
|
(in millions)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Fair value
|
|
$
|
3,412.3
|
|
|
$
|
3,145.8
|
|
Carrying value
|
|
3,303.9
|
|
|
3,226.5
|
|
8.
|
Income Taxes
|
9.
|
Leases
|
(in millions)
|
|
Classification on the Consolidated Balance Sheets
|
|
September 30, 2019
|
||
Assets
|
|
|
|
|
||
|
|
Operating lease right-of-use assets
|
|
$
|
84.2
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
||
Current
|
|
Accrued expenses and other current liabilities - Other
|
|
$
|
30.6
|
|
Long-term
|
|
Long-term operating lease liabilities
|
|
81.7
|
|
|
Total lease liabilities
|
|
|
|
$
|
112.3
|
|
|
|
|
|
|
||
Lease term and discount rate
|
|
September 30, 2019
|
||||
Weighted average remaining lease term (years)
|
|
5.8
|
|
|||
Weighted average discount rate
|
|
4.53
|
%
|
(in millions)
Financial statement line item
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Cost of sales
|
|
$
|
43.9
|
|
|
$
|
57.7
|
|
Selling and administrative expenses
|
|
7.0
|
|
|
21.9
|
|
||
Total lease cost
|
|
$
|
50.9
|
|
|
$
|
79.6
|
|
(in millions)
|
|
September 30, 2019
|
||
Remainder of 2019
|
|
$
|
8.2
|
|
2020
|
|
31.5
|
|
|
2021
|
|
22.2
|
|
|
2022
|
|
15.0
|
|
|
2023
|
|
11.7
|
|
|
Thereafter
|
|
38.3
|
|
|
Total lease payments
|
|
$
|
126.9
|
|
Less: Interest
|
|
(14.6
|
)
|
|
Present value of lease liabilities
|
|
$
|
112.3
|
|
(in millions)
|
|
Nine Months Ended September 30, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
79.5
|
|
Right-of-use assets obtained in exchange for lease obligations
|
|
|
||
Operating leases
|
|
$
|
56.0
|
|
10.
|
Earnings Per Share
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
(in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Basic weighted-average shares outstanding
|
144.5
|
|
|
150.9
|
|
|
145.7
|
|
|
151.6
|
|
Effect of dilutive securities(1)
|
2.7
|
|
|
2.8
|
|
|
2.5
|
|
|
2.5
|
|
Diluted weighted-average shares outstanding(2)
|
147.2
|
|
|
153.7
|
|
|
148.2
|
|
|
154.1
|
|
(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 nine months ended September 30, 2019 and 2018 as their inclusion would have had an anti-dilutive effect.
|
11.
|
Commitments and Contingencies
|
12.
|
Segment Information
|
(in millions)
|
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Headquarters
|
|
Total
|
||||||||||||
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
1,913.5
|
|
|
$
|
386.2
|
|
|
$
|
2,100.9
|
|
|
$
|
507.1
|
|
|
$
|
—
|
|
|
$
|
4,907.7
|
|
Operating income (loss)
|
|
138.9
|
|
|
27.2
|
|
|
168.4
|
|
|
21.9
|
|
|
(35.8
|
)
|
|
320.6
|
|
||||||
Depreciation and amortization expense
|
|
(21.7
|
)
|
|
(5.6
|
)
|
|
(15.0
|
)
|
|
(7.9
|
)
|
|
(18.0
|
)
|
|
(68.2
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
1,706.5
|
|
|
$
|
340.0
|
|
|
$
|
1,875.1
|
|
|
$
|
451.6
|
|
|
$
|
—
|
|
|
$
|
4,373.2
|
|
Operating income (loss)
|
|
125.7
|
|
|
23.8
|
|
|
136.6
|
|
|
19.2
|
|
|
(30.5
|
)
|
|
274.8
|
|
||||||
Depreciation and amortization expense
|
|
(21.8
|
)
|
|
(5.5
|
)
|
|
(12.9
|
)
|
|
(7.3
|
)
|
|
(18.3
|
)
|
|
(65.8
|
)
|
(in millions)
|
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Headquarters
|
|
Total
|
||||||||||||
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
5,533.6
|
|
|
$
|
1,119.2
|
|
|
$
|
5,271.7
|
|
|
$
|
1,571.0
|
|
|
$
|
—
|
|
|
$
|
13,495.5
|
|
Operating income (loss)
|
|
430.8
|
|
|
78.2
|
|
|
373.9
|
|
|
66.6
|
|
|
(99.7
|
)
|
|
849.8
|
|
||||||
Depreciation and amortization expense
|
|
(64.8
|
)
|
|
(16.8
|
)
|
|
(41.4
|
)
|
|
(23.1
|
)
|
|
(51.4
|
)
|
|
(197.5
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
5,006.1
|
|
|
$
|
997.1
|
|
|
$
|
4,740.5
|
|
|
$
|
1,422.0
|
|
|
$
|
—
|
|
|
$
|
12,165.7
|
|
Operating income (loss)
|
|
388.3
|
|
|
70.0
|
|
|
318.3
|
|
|
60.7
|
|
|
(92.9
|
)
|
|
744.4
|
|
||||||
Depreciation and amortization expense
|
|
(66.8
|
)
|
|
(16.6
|
)
|
|
(38.4
|
)
|
|
(25.1
|
)
|
|
(51.8
|
)
|
|
(198.7
|
)
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||
(in millions)
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Total
|
||||||||||
Geography(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
1,910.9
|
|
|
$
|
386.2
|
|
|
$
|
2,100.9
|
|
|
$
|
7.6
|
|
|
$
|
4,405.6
|
|
Rest of World
|
2.6
|
|
|
—
|
|
|
—
|
|
|
499.5
|
|
|
502.1
|
|
|||||
Total Net sales
|
1,913.5
|
|
|
386.2
|
|
|
2,100.9
|
|
|
507.1
|
|
|
4,907.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Major Product and Services
|
|
|
|
|
|
|
|
|
|
||||||||||
Hardware
|
1,528.0
|
|
|
326.6
|
|
|
1,711.3
|
|
|
358.3
|
|
|
3,924.2
|
|
|||||
Software
|
269.1
|
|
|
47.6
|
|
|
324.4
|
|
|
66.1
|
|
|
707.2
|
|
|||||
Services
|
97.9
|
|
|
6.7
|
|
|
59.0
|
|
|
80.2
|
|
|
243.8
|
|
|||||
Other(2)
|
18.5
|
|
|
5.3
|
|
|
6.2
|
|
|
2.5
|
|
|
32.5
|
|
|||||
Total Net sales
|
1,913.5
|
|
|
386.2
|
|
|
2,100.9
|
|
|
507.1
|
|
|
4,907.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales by Channel
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
1,913.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,913.5
|
|
|||||
Small Business
|
—
|
|
|
386.2
|
|
|
—
|
|
|
—
|
|
|
386.2
|
|
|||||
Government
|
—
|
|
|
—
|
|
|
793.4
|
|
|
—
|
|
|
793.4
|
|
|||||
Education
|
—
|
|
|
—
|
|
|
807.0
|
|
|
—
|
|
|
807.0
|
|
|||||
Healthcare
|
—
|
|
|
—
|
|
|
500.5
|
|
|
—
|
|
|
500.5
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
507.1
|
|
|
507.1
|
|
|||||
Total Net sales
|
1,913.5
|
|
|
386.2
|
|
|
2,100.9
|
|
|
507.1
|
|
|
4,907.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
||||||||||
Transferred at a point in time where CDW is principal
|
1,743.4
|
|
|
364.0
|
|
|
1,939.3
|
|
|
443.8
|
|
|
4,490.5
|
|
|||||
Transferred at a point in time where CDW is agent
|
111.0
|
|
|
19.6
|
|
|
79.6
|
|
|
15.5
|
|
|
225.7
|
|
|||||
Transferred over time where CDW is principal
|
59.1
|
|
|
2.6
|
|
|
82.0
|
|
|
47.8
|
|
|
191.5
|
|
|||||
Total Net sales
|
$
|
1,913.5
|
|
|
$
|
386.2
|
|
|
$
|
2,100.9
|
|
|
$
|
507.1
|
|
|
$
|
4,907.7
|
|
(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 September 30, 2018
|
||||||||||||||||||
(in millions)
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Total
|
||||||||||
Geography(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
1,704.1
|
|
|
$
|
340.0
|
|
|
$
|
1,875.1
|
|
|
$
|
6.8
|
|
|
$
|
3,926.0
|
|
Rest of World
|
2.4
|
|
|
—
|
|
|
—
|
|
|
444.8
|
|
|
447.2
|
|
|||||
Total Net sales
|
1,706.5
|
|
|
340.0
|
|
|
1,875.1
|
|
|
451.6
|
|
|
4,373.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Major Product and Services
|
|
|
|
|
|
|
|
|
|
||||||||||
Hardware
|
1,379.5
|
|
|
284.0
|
|
|
1,530.8
|
|
|
363.6
|
|
|
3,557.9
|
|
|||||
Software
|
227.5
|
|
|
44.3
|
|
|
291.0
|
|
|
45.6
|
|
|
608.4
|
|
|||||
Services
|
83.1
|
|
|
6.6
|
|
|
48.8
|
|
|
40.5
|
|
|
179.0
|
|
|||||
Other(2)
|
16.4
|
|
|
5.1
|
|
|
4.5
|
|
|
1.9
|
|
|
27.9
|
|
|||||
Total Net sales
|
1,706.5
|
|
|
340.0
|
|
|
1,875.1
|
|
|
451.6
|
|
|
4,373.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales by Channel
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
1,706.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,706.5
|
|
|||||
Small Business
|
—
|
|
|
340.0
|
|
|
—
|
|
|
—
|
|
|
340.0
|
|
|||||
Government
|
—
|
|
|
—
|
|
|
639.3
|
|
|
—
|
|
|
639.3
|
|
|||||
Education
|
—
|
|
|
—
|
|
|
793.1
|
|
|
—
|
|
|
793.1
|
|
|||||
Healthcare
|
—
|
|
|
—
|
|
|
442.7
|
|
|
—
|
|
|
442.7
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
451.6
|
|
|
451.6
|
|
|||||
Total Net sales
|
1,706.5
|
|
|
340.0
|
|
|
1,875.1
|
|
|
451.6
|
|
|
4,373.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
||||||||||
Transferred at a point in time where CDW is principal
|
1,571.6
|
|
|
321.0
|
|
|
1,764.6
|
|
|
402.8
|
|
|
4,060.0
|
|
|||||
Transferred at a point in time where CDW is agent
|
85.7
|
|
|
16.9
|
|
|
64.3
|
|
|
12.3
|
|
|
179.2
|
|
|||||
Transferred over time where CDW is principal
|
49.2
|
|
|
2.1
|
|
|
46.2
|
|
|
36.5
|
|
|
134.0
|
|
|||||
Total Net sales
|
$
|
1,706.5
|
|
|
$
|
340.0
|
|
|
$
|
1,875.1
|
|
|
$
|
451.6
|
|
|
$
|
4,373.2
|
|
(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.
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
(in millions)
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Total
|
||||||||||
Geography(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
5,525.5
|
|
|
$
|
1,119.2
|
|
|
$
|
5,271.7
|
|
|
$
|
24.8
|
|
|
$
|
11,941.2
|
|
Rest of World
|
8.1
|
|
|
—
|
|
|
—
|
|
|
1,546.2
|
|
|
1,554.3
|
|
|||||
Total Net sales
|
5,533.6
|
|
|
1,119.2
|
|
|
5,271.7
|
|
|
1,571.0
|
|
|
13,495.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Major Product and Services
|
|
|
|
|
|
|
|
|
|
||||||||||
Hardware
|
4,411.6
|
|
|
937.5
|
|
|
4,297.6
|
|
|
1,143.0
|
|
|
10,789.7
|
|
|||||
Software
|
784.8
|
|
|
145.0
|
|
|
808.0
|
|
|
213.3
|
|
|
1,951.1
|
|
|||||
Services
|
284.0
|
|
|
20.8
|
|
|
150.8
|
|
|
206.3
|
|
|
661.9
|
|
|||||
Other(2)
|
53.2
|
|
|
15.9
|
|
|
15.3
|
|
|
8.4
|
|
|
92.8
|
|
|||||
Total Net sales
|
5,533.6
|
|
|
1,119.2
|
|
|
5,271.7
|
|
|
1,571.0
|
|
|
13,495.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales by Channel
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
5,533.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,533.6
|
|
|||||
Small Business
|
—
|
|
|
1,119.2
|
|
|
—
|
|
|
—
|
|
|
1,119.2
|
|
|||||
Government
|
—
|
|
|
—
|
|
|
1,860.2
|
|
|
—
|
|
|
1,860.2
|
|
|||||
Education
|
—
|
|
|
—
|
|
|
1,981.0
|
|
|
—
|
|
|
1,981.0
|
|
|||||
Healthcare
|
—
|
|
|
—
|
|
|
1,430.5
|
|
|
—
|
|
|
1,430.5
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1,571.0
|
|
|
1,571.0
|
|
|||||
Total Net sales
|
5,533.6
|
|
|
1,119.2
|
|
|
5,271.7
|
|
|
1,571.0
|
|
|
13,495.5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
||||||||||
Transferred at a point in time where CDW is principal
|
5,033.4
|
|
|
1,054.7
|
|
|
4,908.0
|
|
|
1,383.7
|
|
|
12,379.8
|
|
|||||
Transferred at a point in time where CDW is agent
|
333.7
|
|
|
59.4
|
|
|
190.9
|
|
|
42.0
|
|
|
626.0
|
|
|||||
Transferred over time where CDW is principal
|
166.5
|
|
|
5.1
|
|
|
172.8
|
|
|
145.3
|
|
|
489.7
|
|
|||||
Total Net sales
|
$
|
5,533.6
|
|
|
$
|
1,119.2
|
|
|
$
|
5,271.7
|
|
|
$
|
1,571.0
|
|
|
$
|
13,495.5
|
|
(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.
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
(in millions)
|
Corporate
|
|
Small Business
|
|
Public
|
|
Other
|
|
Total
|
||||||||||
Geography(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
$
|
4,999.9
|
|
|
$
|
997.1
|
|
|
$
|
4,740.5
|
|
|
$
|
24.0
|
|
|
$
|
10,761.5
|
|
Rest of World
|
6.2
|
|
|
—
|
|
|
—
|
|
|
1,398.0
|
|
|
1,404.2
|
|
|||||
Total Net sales
|
5,006.1
|
|
|
997.1
|
|
|
4,740.5
|
|
|
1,422.0
|
|
|
12,165.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Major Product and Services
|
|
|
|
|
|
|
|
|
|
||||||||||
Hardware
|
4,013.4
|
|
|
829.4
|
|
|
3,876.7
|
|
|
1,136.9
|
|
|
9,856.4
|
|
|||||
Software
|
699.6
|
|
|
131.2
|
|
|
730.5
|
|
|
154.0
|
|
|
1,715.3
|
|
|||||
Services
|
242.3
|
|
|
20.6
|
|
|
120.5
|
|
|
124.8
|
|
|
508.2
|
|
|||||
Other(2)
|
50.8
|
|
|
15.9
|
|
|
12.8
|
|
|
6.3
|
|
|
85.8
|
|
|||||
Total Net sales
|
5,006.1
|
|
|
997.1
|
|
|
4,740.5
|
|
|
1,422.0
|
|
|
12,165.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales by Channel
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate
|
5,006.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,006.1
|
|
|||||
Small Business
|
—
|
|
|
997.1
|
|
|
—
|
|
|
—
|
|
|
997.1
|
|
|||||
Government
|
—
|
|
|
—
|
|
|
1,551.3
|
|
|
—
|
|
|
1,551.3
|
|
|||||
Education
|
—
|
|
|
—
|
|
|
1,902.4
|
|
|
—
|
|
|
1,902.4
|
|
|||||
Healthcare
|
—
|
|
|
—
|
|
|
1,286.8
|
|
|
—
|
|
|
1,286.8
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1,422.0
|
|
|
1,422.0
|
|
|||||
Total Net sales
|
5,006.1
|
|
|
997.1
|
|
|
4,740.5
|
|
|
1,422.0
|
|
|
12,165.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Timing of Revenue Recognition
|
|
|
|
|
|
|
|
|
|
||||||||||
Transferred at a point in time where CDW is principal
|
4,581.3
|
|
|
940.0
|
|
|
4,445.8
|
|
|
1,277.4
|
|
|
11,244.5
|
|
|||||
Transferred at a point in time where CDW is agent
|
279.9
|
|
|
50.5
|
|
|
160.7
|
|
|
37.1
|
|
|
528.2
|
|
|||||
Transferred over time where CDW is principal
|
144.9
|
|
|
6.6
|
|
|
134.0
|
|
|
107.5
|
|
|
393.0
|
|
|||||
Total Net sales
|
$
|
5,006.1
|
|
|
$
|
997.1
|
|
|
$
|
4,740.5
|
|
|
$
|
1,422.0
|
|
|
$
|
12,165.7
|
|
(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 September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
Dollars in
Millions |
|
Percentage
of Total Net Sales |
|
Dollars in
Millions |
|
Percentage
of Total Net Sales |
||||||
Notebooks/Mobile Devices
|
$
|
1,325.6
|
|
|
27.0
|
%
|
|
$
|
1,124.8
|
|
|
25.7
|
%
|
Netcomm Products
|
567.3
|
|
|
11.6
|
|
|
582.4
|
|
|
13.3
|
|
||
Desktops
|
448.4
|
|
|
9.1
|
|
|
349.0
|
|
|
8.0
|
|
||
Video
|
353.3
|
|
|
7.2
|
|
|
320.5
|
|
|
7.3
|
|
||
Enterprise and Data Storage (Including Drives)
|
283.6
|
|
|
5.8
|
|
|
297.4
|
|
|
6.8
|
|
||
Other Hardware
|
946.0
|
|
|
19.3
|
|
|
883.8
|
|
|
20.3
|
|
||
Total Hardware
|
3,924.2
|
|
|
80.0
|
|
|
3,557.9
|
|
|
81.4
|
|
||
|
|
|
|
|
|
|
|
||||||
Software(1)
|
707.2
|
|
|
14.3
|
|
|
608.4
|
|
|
13.9
|
|
||
Services(1)
|
243.8
|
|
|
5.0
|
|
|
179.0
|
|
|
4.1
|
|
||
Other(2)
|
32.5
|
|
|
0.7
|
|
|
27.9
|
|
|
0.6
|
|
||
Total Net sales
|
$
|
4,907.7
|
|
|
100.0
|
%
|
|
$
|
4,373.2
|
|
|
100.0
|
%
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
|
Dollars in
Millions |
|
Percentage
of Total Net Sales |
|
Dollars in
Millions |
|
Percentage
of Total Net Sales |
||||||
Notebooks/Mobile Devices
|
$
|
3,537.5
|
|
|
26.2
|
%
|
|
$
|
3,069.4
|
|
|
25.2
|
%
|
Netcomm Products
|
1,641.9
|
|
|
12.2
|
|
|
1,568.5
|
|
|
12.9
|
|
||
Desktops
|
1,183.6
|
|
|
8.8
|
|
|
1,013.2
|
|
|
8.3
|
|
||
Video
|
972.7
|
|
|
7.2
|
|
|
904.4
|
|
|
7.4
|
|
||
Enterprise and Data Storage (Including Drives)
|
849.2
|
|
|
6.3
|
|
|
816.2
|
|
|
6.7
|
|
||
Other Hardware
|
2,604.8
|
|
|
19.3
|
|
|
2,484.7
|
|
|
20.5
|
|
||
Total Hardware
|
10,789.7
|
|
|
80.0
|
|
|
9,856.4
|
|
|
81.0
|
|
||
|
|
|
|
|
|
|
|
||||||
Software(1)
|
1,951.1
|
|
|
14.4
|
|
|
1,715.3
|
|
|
14.1
|
|
||
Services(1)
|
661.9
|
|
|
4.9
|
|
|
508.2
|
|
|
4.2
|
|
||
Other(2)
|
92.8
|
|
|
0.7
|
|
|
85.8
|
|
|
0.7
|
|
||
Total Net sales
|
$
|
13,495.5
|
|
|
100.0
|
%
|
|
$
|
12,165.7
|
|
|
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.
|
13.
|
Supplemental Guarantor Information
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||||||||||
September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
124.1
|
|
|
$
|
—
|
|
|
$
|
78.5
|
|
|
$
|
—
|
|
|
$
|
(35.7
|
)
|
|
$
|
166.9
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
2,539.1
|
|
|
360.4
|
|
|
—
|
|
|
—
|
|
|
2,899.5
|
|
|||||||
Merchandise inventory
|
—
|
|
|
—
|
|
|
525.2
|
|
|
78.4
|
|
|
—
|
|
|
—
|
|
|
603.6
|
|
|||||||
Miscellaneous receivables
|
—
|
|
|
103.1
|
|
|
300.6
|
|
|
28.5
|
|
|
—
|
|
|
—
|
|
|
432.2
|
|
|||||||
Prepaid expenses and other
|
—
|
|
|
22.2
|
|
|
122.6
|
|
|
48.3
|
|
|
—
|
|
|
—
|
|
|
193.1
|
|
|||||||
Total current assets
|
—
|
|
|
249.4
|
|
|
3,487.5
|
|
|
594.1
|
|
|
—
|
|
|
(35.7
|
)
|
|
4,295.3
|
|
|||||||
Operating lease right-of-use assets
|
—
|
|
|
23.2
|
|
|
33.1
|
|
|
27.9
|
|
|
—
|
|
|
—
|
|
|
84.2
|
|
|||||||
Property and equipment, net
|
—
|
|
|
75.8
|
|
|
68.4
|
|
|
26.9
|
|
|
—
|
|
|
—
|
|
|
171.1
|
|
|||||||
Goodwill
|
—
|
|
|
751.8
|
|
|
1,437.9
|
|
|
326.2
|
|
|
—
|
|
|
—
|
|
|
2,515.9
|
|
|||||||
Other intangible assets, net
|
—
|
|
|
243.1
|
|
|
206.2
|
|
|
166.8
|
|
|
—
|
|
|
—
|
|
|
616.1
|
|
|||||||
Other assets
|
1.0
|
|
|
27.0
|
|
|
2.4
|
|
|
172.1
|
|
|
—
|
|
|
(182.0
|
)
|
|
20.5
|
|
|||||||
Investment in and advances to subsidiaries
|
934.1
|
|
|
3,189.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,123.7
|
)
|
|
—
|
|
|||||||
Total Assets
|
$
|
935.1
|
|
|
$
|
4,559.9
|
|
|
$
|
5,235.5
|
|
|
$
|
1,314.0
|
|
|
$
|
—
|
|
|
$
|
(4,341.4
|
)
|
|
$
|
7,703.1
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable-trade
|
$
|
—
|
|
|
$
|
26.2
|
|
|
$
|
1,701.9
|
|
|
$
|
207.6
|
|
|
$
|
—
|
|
|
$
|
(35.7
|
)
|
|
$
|
1,900.0
|
|
Accounts payable-inventory financing
|
—
|
|
|
0.1
|
|
|
382.0
|
|
|
29.6
|
|
|
—
|
|
|
—
|
|
|
411.7
|
|
|||||||
Current maturities of long-term debt
|
—
|
|
|
14.9
|
|
|
4.2
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|||||||
Contract liabilities
|
—
|
|
|
—
|
|
|
127.1
|
|
|
85.0
|
|
|
—
|
|
|
—
|
|
|
212.1
|
|
|||||||
Accrued expenses and other current liabilities
|
—
|
|
|
256.0
|
|
|
352.0
|
|
|
83.8
|
|
|
—
|
|
|
—
|
|
|
691.8
|
|
|||||||
Total current liabilities
|
—
|
|
|
297.2
|
|
|
2,567.2
|
|
|
412.3
|
|
|
—
|
|
|
(35.7
|
)
|
|
3,241.0
|
|
|||||||
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt
|
—
|
|
|
3,209.1
|
|
|
—
|
|
|
49.9
|
|
|
—
|
|
|
—
|
|
|
3,259.0
|
|
|||||||
Deferred income taxes
|
—
|
|
|
51.7
|
|
|
32.0
|
|
|
28.7
|
|
|
—
|
|
|
(1.1
|
)
|
|
111.3
|
|
|||||||
Operating lease liabilities
|
—
|
|
|
33.0
|
|
|
25.2
|
|
|
23.5
|
|
|
—
|
|
|
—
|
|
|
81.7
|
|
|||||||
Other liabilities
|
—
|
|
|
34.8
|
|
|
0.9
|
|
|
220.2
|
|
|
—
|
|
|
(180.9
|
)
|
|
75.0
|
|
|||||||
Total long-term liabilities
|
—
|
|
|
3,328.6
|
|
|
58.1
|
|
|
322.3
|
|
|
—
|
|
|
(182.0
|
)
|
|
3,527.0
|
|
|||||||
Total stockholders' equity
|
935.1
|
|
|
934.1
|
|
|
2,610.2
|
|
|
579.4
|
|
|
—
|
|
|
(4,123.7
|
)
|
|
935.1
|
|
|||||||
Total Liabilities and Stockholders' Equity
|
$
|
935.1
|
|
|
$
|
4,559.9
|
|
|
$
|
5,235.5
|
|
|
$
|
1,314.0
|
|
|
$
|
—
|
|
|
$
|
(4,341.4
|
)
|
|
$
|
7,703.1
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||||||||||
December 31, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
176.0
|
|
|
$
|
—
|
|
|
$
|
46.7
|
|
|
$
|
—
|
|
|
$
|
(16.9
|
)
|
|
$
|
205.8
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
2,331.2
|
|
|
340.0
|
|
|
—
|
|
|
—
|
|
|
2,671.2
|
|
|||||||
Merchandise inventory
|
—
|
|
|
—
|
|
|
387.4
|
|
|
66.9
|
|
|
—
|
|
|
—
|
|
|
454.3
|
|
|||||||
Miscellaneous receivables
|
—
|
|
|
110.6
|
|
|
187.7
|
|
|
18.1
|
|
|
—
|
|
|
—
|
|
|
316.4
|
|
|||||||
Prepaid expenses and other
|
—
|
|
|
17.1
|
|
|
93.8
|
|
|
38.2
|
|
|
—
|
|
|
—
|
|
|
149.1
|
|
|||||||
Total current assets
|
—
|
|
|
303.7
|
|
|
3,000.1
|
|
|
509.9
|
|
|
—
|
|
|
(16.9
|
)
|
|
3,796.8
|
|
|||||||
Property and equipment, net
|
—
|
|
|
82.3
|
|
|
52.0
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
156.1
|
|
|||||||
Goodwill
|
—
|
|
|
751.8
|
|
|
1,437.8
|
|
|
273.2
|
|
|
—
|
|
|
—
|
|
|
2,462.8
|
|
|||||||
Other intangible assets, net
|
—
|
|
|
252.5
|
|
|
300.0
|
|
|
159.7
|
|
|
—
|
|
|
—
|
|
|
712.2
|
|
|||||||
Other assets
|
1.4
|
|
|
49.8
|
|
|
9.6
|
|
|
140.2
|
|
|
—
|
|
|
(161.2
|
)
|
|
39.8
|
|
|||||||
Investment in and advances to subsidiaries
|
973.8
|
|
|
3,028.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,002.7
|
)
|
|
—
|
|
|||||||
Total Assets
|
$
|
975.2
|
|
|
$
|
4,469.0
|
|
|
$
|
4,799.5
|
|
|
$
|
1,104.8
|
|
|
$
|
—
|
|
|
$
|
(4,180.8
|
)
|
|
$
|
7,167.7
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable-trade
|
$
|
—
|
|
|
$
|
39.2
|
|
|
$
|
1,387.9
|
|
|
$
|
166.9
|
|
|
$
|
—
|
|
|
$
|
(16.9
|
)
|
|
$
|
1,577.1
|
|
Accounts payable-inventory financing
|
—
|
|
|
0.2
|
|
|
406.1
|
|
|
23.0
|
|
|
—
|
|
|
—
|
|
|
429.3
|
|
|||||||
Current maturities of long-term debt
|
—
|
|
|
14.9
|
|
|
4.0
|
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|||||||
Contract liabilities
|
—
|
|
|
—
|
|
|
95.6
|
|
|
82.7
|
|
|
—
|
|
|
—
|
|
|
178.3
|
|
|||||||
Accrued expenses and other current liabilities
|
—
|
|
|
217.6
|
|
|
306.7
|
|
|
68.8
|
|
|
—
|
|
|
—
|
|
|
593.1
|
|
|||||||
Total current liabilities
|
—
|
|
|
271.9
|
|
|
2,200.3
|
|
|
347.8
|
|
|
—
|
|
|
(16.9
|
)
|
|
2,803.1
|
|
|||||||
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Debt
|
—
|
|
|
3,121.3
|
|
|
4.3
|
|
|
57.7
|
|
|
—
|
|
|
—
|
|
|
3,183.3
|
|
|||||||
Deferred income taxes
|
—
|
|
|
55.9
|
|
|
60.5
|
|
|
26.9
|
|
|
—
|
|
|
(1.4
|
)
|
|
141.9
|
|
|||||||
Other liabilities
|
—
|
|
|
46.1
|
|
|
5.7
|
|
|
172.2
|
|
|
—
|
|
|
(159.8
|
)
|
|
64.2
|
|
|||||||
Total long-term liabilities
|
—
|
|
|
3,223.3
|
|
|
70.5
|
|
|
256.8
|
|
|
—
|
|
|
(161.2
|
)
|
|
3,389.4
|
|
|||||||
Total stockholders' equity
|
975.2
|
|
|
973.8
|
|
|
2,528.7
|
|
|
500.2
|
|
|
—
|
|
|
(4,002.7
|
)
|
|
975.2
|
|
|||||||
Total Liabilities and Stockholders' Equity
|
$
|
975.2
|
|
|
$
|
4,469.0
|
|
|
$
|
4,799.5
|
|
|
$
|
1,104.8
|
|
|
$
|
—
|
|
|
$
|
(4,180.8
|
)
|
|
$
|
7,167.7
|
|
Consolidating Statement of Operations
|
|||||||||||||||||||||||||||
Three Months Ended September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,400.6
|
|
|
$
|
507.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,907.7
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
3,671.5
|
|
|
419.7
|
|
|
—
|
|
|
—
|
|
|
4,091.2
|
|
|||||||
Gross profit
|
—
|
|
|
—
|
|
|
729.1
|
|
|
87.4
|
|
|
—
|
|
|
—
|
|
|
816.5
|
|
|||||||
Selling and administrative expenses
|
—
|
|
|
35.8
|
|
|
347.4
|
|
|
61.7
|
|
|
—
|
|
|
—
|
|
|
444.9
|
|
|||||||
Advertising expense
|
—
|
|
|
—
|
|
|
47.2
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
51.0
|
|
|||||||
Operating income (loss)
|
—
|
|
|
(35.8
|
)
|
|
334.5
|
|
|
21.9
|
|
|
—
|
|
|
—
|
|
|
320.6
|
|
|||||||
Interest (expense) income, net
|
—
|
|
|
(42.0
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(42.3
|
)
|
|||||||
Other income, net
|
—
|
|
|
(16.1
|
)
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
(17.4
|
)
|
|||||||
Income (loss) before income taxes
|
—
|
|
|
(93.9
|
)
|
|
334.6
|
|
|
20.2
|
|
|
—
|
|
|
—
|
|
|
260.9
|
|
|||||||
Income tax (expense) benefit
|
(0.1
|
)
|
|
30.3
|
|
|
(87.9
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(59.2
|
)
|
|||||||
Income (loss) before equity in earnings of subsidiaries
|
(0.1
|
)
|
|
(63.6
|
)
|
|
246.7
|
|
|
18.7
|
|
|
—
|
|
|
—
|
|
|
201.7
|
|
|||||||
Equity in earnings of subsidiaries
|
201.8
|
|
|
265.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(467.2
|
)
|
|
—
|
|
|||||||
Net income
|
$
|
201.7
|
|
|
$
|
201.8
|
|
|
$
|
246.7
|
|
|
$
|
18.7
|
|
|
$
|
—
|
|
|
$
|
(467.2
|
)
|
|
$
|
201.7
|
|
Consolidating Statement of Operations
|
|||||||||||||||||||||||||||
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor |
|
Subsidiary
Issuer |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Co-Issuer
|
|
Consolidating
Adjustments |
|
Consolidated
|
||||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,921.6
|
|
|
$
|
451.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,373.2
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
3,286.6
|
|
|
373.0
|
|
|
—
|
|
|
—
|
|
|
3,659.6
|
|
|||||||
Gross profit
|
—
|
|
|
—
|
|
|
635.0
|
|
|
78.6
|
|
|
—
|
|
|
—
|
|
|
713.6
|
|
|||||||
Selling and administrative expenses
|
—
|
|
|
33.7
|
|
|
299.8
|
|
|
57.2
|
|
|
—
|
|
|
—
|
|
|
390.7
|
|
|||||||
Advertising expense
|
—
|
|
|
—
|
|
|
45.9
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
48.1
|
|
|||||||
Operating income (loss)
|
—
|
|
|
(33.7
|
)
|
|
289.3
|
|
|
19.2
|
|
|
—
|
|
|
—
|
|
|
274.8
|
|
|||||||
Interest (expense) income, net
|
—
|
|
|
(36.1
|
)
|
|
0.9
|
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(36.6
|
)
|
|||||||
Other income, net
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||||
Income (loss) before income taxes
|
—
|
|
|
(69.8
|
)
|
|
290.3
|
|
|
17.9
|
|
|
—
|
|
|
—
|
|
|
238.4
|
|
|||||||
Income tax (expense) benefit
|
(0.1
|
)
|
|
20.5
|
|
|
(75.3
|
)
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(54.7
|
)
|
|||||||
Income (loss) before equity in earnings of subsidiaries
|
(0.1
|
)
|
|
(49.3
|
)
|
|
215.0
|
|
|
18.1
|
|
|
—
|
|
|
—
|
|
|
183.7
|
|
|||||||
Equity in earnings of subsidiaries
|
183.8
|
|
|
233.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(416.9
|
)
|
|
—
|
|
|||||||
Net income
|
$
|
183.7
|
|
|
$
|
183.8
|
|
|
$
|
215.0
|
|
|
$
|
18.1
|
|
|
$
|
—
|
|
|
$
|
(416.9
|
)
|
|
$
|
183.7
|
|
Consolidating Statement of Operations
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor |
|
Subsidiary
Issuer |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Co-Issuer
|
|
Consolidating
Adjustments |
|
Consolidated
|
||||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,924.5
|
|
|
$
|
1,571.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,495.5
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
9,926.3
|
|
|
1,306.8
|
|
|
—
|
|
|
—
|
|
|
11,233.1
|
|
|||||||
Gross profit
|
—
|
|
|
—
|
|
|
1,998.2
|
|
|
264.2
|
|
|
—
|
|
|
—
|
|
|
2,262.4
|
|
|||||||
Selling and administrative expenses
|
—
|
|
|
99.7
|
|
|
980.6
|
|
|
189.0
|
|
|
—
|
|
|
—
|
|
|
1,269.3
|
|
|||||||
Advertising expense
|
—
|
|
|
—
|
|
|
134.7
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
143.3
|
|
|||||||
Operating income (loss)
|
—
|
|
|
(99.7
|
)
|
|
882.9
|
|
|
66.6
|
|
|
—
|
|
|
—
|
|
|
849.8
|
|
|||||||
Interest (expense) income, net
|
—
|
|
|
(120.2
|
)
|
|
0.3
|
|
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
(121.1
|
)
|
|||||||
Other (expense) income, net
|
—
|
|
|
(16.1
|
)
|
|
2.1
|
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(15.0
|
)
|
|||||||
Income (loss) before income taxes
|
—
|
|
|
(236.0
|
)
|
|
885.3
|
|
|
64.4
|
|
|
—
|
|
|
—
|
|
|
713.7
|
|
|||||||
Income tax (expense) benefit
|
(0.3
|
)
|
|
75.2
|
|
|
(229.2
|
)
|
|
(8.2
|
)
|
|
—
|
|
|
—
|
|
|
(162.5
|
)
|
|||||||
Income (loss) before equity in earnings of subsidiaries
|
(0.3
|
)
|
|
(160.8
|
)
|
|
656.1
|
|
|
56.2
|
|
|
—
|
|
|
—
|
|
|
551.2
|
|
|||||||
Equity in earnings of subsidiaries
|
551.5
|
|
|
712.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,263.8
|
)
|
|
—
|
|
|||||||
Net income
|
$
|
551.2
|
|
|
$
|
551.5
|
|
|
$
|
656.1
|
|
|
$
|
56.2
|
|
|
$
|
—
|
|
|
$
|
(1,263.8
|
)
|
|
$
|
551.2
|
|
Consolidating Statement of Operations
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor |
|
Subsidiary
Issuer |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Co-Issuer
|
|
Consolidating
Adjustments |
|
Consolidated
|
||||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,743.7
|
|
|
$
|
1,422.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,165.7
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
8,966.6
|
|
|
1,186.0
|
|
|
—
|
|
|
—
|
|
|
10,152.6
|
|
|||||||
Gross profit
|
—
|
|
|
—
|
|
|
1,777.1
|
|
|
236.0
|
|
|
—
|
|
|
—
|
|
|
2,013.1
|
|
|||||||
Selling and administrative expenses
|
—
|
|
|
103.3
|
|
|
861.8
|
|
|
169.7
|
|
|
—
|
|
|
—
|
|
|
1,134.8
|
|
|||||||
Advertising expense
|
—
|
|
|
—
|
|
|
128.3
|
|
|
5.6
|
|
|
—
|
|
|
—
|
|
|
133.9
|
|
|||||||
Operating income (loss)
|
—
|
|
|
(103.3
|
)
|
|
787.0
|
|
|
60.7
|
|
|
—
|
|
|
—
|
|
|
744.4
|
|
|||||||
Interest (expense) income, net
|
—
|
|
|
(109.9
|
)
|
|
2.8
|
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
(111.5
|
)
|
|||||||
Other income, net
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||||
Income (loss) before income taxes
|
—
|
|
|
(213.2
|
)
|
|
790.4
|
|
|
56.7
|
|
|
—
|
|
|
—
|
|
|
633.9
|
|
|||||||
Income tax (expense) benefit
|
(0.3
|
)
|
|
61.5
|
|
|
(202.6
|
)
|
|
(8.8
|
)
|
|
—
|
|
|
—
|
|
|
(150.2
|
)
|
|||||||
Income (loss) before equity in earnings of subsidiaries
|
(0.3
|
)
|
|
(151.7
|
)
|
|
587.8
|
|
|
47.9
|
|
|
—
|
|
|
—
|
|
|
483.7
|
|
|||||||
Equity in earnings of subsidiaries
|
484.0
|
|
|
635.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,119.7
|
)
|
|
—
|
|
|||||||
Net income
|
$
|
483.7
|
|
|
$
|
484.0
|
|
|
$
|
587.8
|
|
|
$
|
47.9
|
|
|
$
|
—
|
|
|
$
|
(1,119.7
|
)
|
|
$
|
483.7
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||||||||||
Three Months Ended September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Comprehensive income
|
$
|
187.0
|
|
|
$
|
187.1
|
|
|
$
|
246.7
|
|
|
$
|
4.1
|
|
|
$
|
—
|
|
|
$
|
(437.9
|
)
|
|
$
|
187.0
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||||||||||
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Comprehensive income
|
$
|
180.6
|
|
|
$
|
180.7
|
|
|
$
|
215.0
|
|
|
$
|
14.9
|
|
|
$
|
—
|
|
|
$
|
(410.6
|
)
|
|
$
|
180.6
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Comprehensive income
|
$
|
527.7
|
|
|
$
|
528.0
|
|
|
$
|
656.1
|
|
|
$
|
43.5
|
|
|
$
|
—
|
|
|
$
|
(1,227.6
|
)
|
|
$
|
527.7
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Comprehensive income
|
$
|
471.4
|
|
|
$
|
471.7
|
|
|
$
|
587.8
|
|
|
$
|
30.0
|
|
|
$
|
—
|
|
|
$
|
(1,089.5
|
)
|
|
$
|
471.4
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
(6.3
|
)
|
|
$
|
620.6
|
|
|
$
|
95.4
|
|
|
$
|
—
|
|
|
$
|
(27.4
|
)
|
|
$
|
682.3
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditures
|
—
|
|
|
(46.4
|
)
|
|
(19.5
|
)
|
|
(9.1
|
)
|
|
—
|
|
|
—
|
|
|
(75.0
|
)
|
|||||||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(75.0
|
)
|
|
—
|
|
|
—
|
|
|
(75.0
|
)
|
|||||||
Net cash used in investing activities
|
—
|
|
|
(46.4
|
)
|
|
(19.5
|
)
|
|
(84.1
|
)
|
|
—
|
|
|
—
|
|
|
(150.0
|
)
|
|||||||
Cash flows (used in) provided by financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proceeds from borrowings under revolving credit facility
|
—
|
|
|
1,860.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,860.5
|
|
|||||||
Repayments of borrowings under revolving credit facility
|
—
|
|
|
(1,834.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,834.5
|
)
|
|||||||
Repayments of long-term debt
|
—
|
|
|
(11.0
|
)
|
|
—
|
|
|
(8.7
|
)
|
|
—
|
|
|
—
|
|
|
(19.7
|
)
|
|||||||
Proceeds from issuance of long-term debt
|
—
|
|
|
600.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600.0
|
|
|||||||
Payments to extinguish long-term debt
|
—
|
|
|
(538.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(538.1
|
)
|
|||||||
Net change in accounts payable-inventory financing
|
—
|
|
|
—
|
|
|
(24.2
|
)
|
|
6.8
|
|
|
—
|
|
|
—
|
|
|
(17.4
|
)
|
|||||||
Repurchases of common stock
|
(493.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(493.3
|
)
|
|||||||
Payment of incentive compensation plan withholding taxes
|
(21.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21.3
|
)
|
|||||||
Dividend payments
|
(128.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128.9
|
)
|
|||||||
Capital contributions
|
—
|
|
|
(76.0
|
)
|
|
—
|
|
|
76.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
—
|
|
|
28.8
|
|
|
(4.4
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
24.2
|
|
|||||||
Distributions and advances from (to) affiliates
|
643.5
|
|
|
(28.9
|
)
|
|
(572.5
|
)
|
|
(50.7
|
)
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|||||||
Net cash (used in) provided by financing activities
|
—
|
|
|
0.8
|
|
|
(601.1
|
)
|
|
23.2
|
|
|
—
|
|
|
8.6
|
|
|
(568.5
|
)
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|||||||
Net (decrease) increase in cash and cash equivalents
|
—
|
|
|
(51.9
|
)
|
|
—
|
|
|
31.8
|
|
|
—
|
|
|
(18.8
|
)
|
|
(38.9
|
)
|
|||||||
Cash and cash equivalents—beginning of period
|
—
|
|
|
176.0
|
|
|
—
|
|
|
46.7
|
|
|
—
|
|
|
(16.9
|
)
|
|
205.8
|
|
|||||||
Cash and cash equivalents—end of period
|
$
|
—
|
|
|
$
|
124.1
|
|
|
$
|
—
|
|
|
$
|
78.5
|
|
|
$
|
—
|
|
|
$
|
(35.7
|
)
|
|
$
|
166.9
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||||||||||
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
(in millions)
|
Parent
Guarantor
|
|
Subsidiary
Issuer
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Co-Issuer
|
|
Consolidating
Adjustments
|
|
Consolidated
|
||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
(78.9
|
)
|
|
$
|
608.4
|
|
|
$
|
80.2
|
|
|
$
|
—
|
|
|
$
|
(7.4
|
)
|
|
$
|
602.3
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditures
|
—
|
|
|
(40.9
|
)
|
|
(3.5
|
)
|
|
(9.0
|
)
|
|
—
|
|
|
—
|
|
|
(53.4
|
)
|
|||||||
Net cash used in investing activities
|
—
|
|
|
(40.9
|
)
|
|
(3.5
|
)
|
|
(9.0
|
)
|
|
—
|
|
|
—
|
|
|
(53.4
|
)
|
|||||||
Cash flows (used in) provided by financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proceeds from borrowings under revolving credit facility
|
—
|
|
|
640.0
|
|
|
—
|
|
|
48.9
|
|
|
—
|
|
|
—
|
|
|
688.9
|
|
|||||||
Repayments of borrowings under revolving credit facility
|
—
|
|
|
(640.0
|
)
|
|
—
|
|
|
(41.9
|
)
|
|
—
|
|
|
—
|
|
|
(681.9
|
)
|
|||||||
Repayments of long-term debt
|
—
|
|
|
(11.2
|
)
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
(18.2
|
)
|
|||||||
Net change in accounts payable-inventory financing
|
—
|
|
|
(0.8
|
)
|
|
(85.8
|
)
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
(90.1
|
)
|
|||||||
Repurchases of common stock
|
(232.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(232.5
|
)
|
|||||||
Payment of incentive compensation plan withholding taxes
|
(27.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.1
|
)
|
|||||||
Dividend payments
|
(95.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95.5
|
)
|
|||||||
Repayment of intercompany loan
|
—
|
|
|
—
|
|
|
47.5
|
|
|
(47.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
—
|
|
|
25.8
|
|
|
(4.3
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
21.1
|
|
|||||||
Distributions and advances from (to) affiliates
|
355.1
|
|
|
213.2
|
|
|
(562.3
|
)
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
—
|
|
|||||||
Net cash (used in) provided by financing activities
|
—
|
|
|
227.0
|
|
|
(604.9
|
)
|
|
(51.4
|
)
|
|
—
|
|
|
(6.0
|
)
|
|
(435.3
|
)
|
|||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
107.2
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
|
(13.4
|
)
|
|
110.9
|
|
|||||||
Cash and cash equivalents—beginning of period
|
—
|
|
|
113.7
|
|
|
—
|
|
|
32.4
|
|
|
—
|
|
|
(1.9
|
)
|
|
144.2
|
|
|||||||
Cash and cash equivalents—end of period
|
$
|
—
|
|
|
$
|
220.9
|
|
|
$
|
—
|
|
|
$
|
49.5
|
|
|
$
|
—
|
|
|
$
|
(15.3
|
)
|
|
$
|
255.1
|
|
14.
|
Subsequent Events
|
•
|
General economic conditions are a key factor affecting our results as they impact our customers' willingness to spend on information technology. This is particularly the case for our Corporate and Small Business customers, as their purchases tend to reflect confidence in their business prospects, which are driven by their discrete perceptions of business and general economic conditions. Additionally, changes in trade policy and product constraints from suppliers could have an adverse impact on our business. There continues to be substantial uncertainty regarding the impact of the UK's planned withdrawal from the European Union ("EU") (referred to as "Brexit"). Potential adverse consequences of Brexit such as global market uncertainty, volatility in currency exchange rates, greater restrictions on imports and exports between UK and EU countries and increased regulatory complexities could have a negative impact on our business, financial condition and results of operations. To date, CDW UK has not experienced significant changes in the buying behavior of its customers even with the uncertainty related to the timing and terms of Brexit. We have established a presence on the continent to support CDW UK's broader growth opportunities in the EU. This also serves as a contingency plan to address future developments as needed around Brexit.
|
•
|
Changes in spending policies, budget priorities and funding levels are a key factor influencing the purchasing levels of government, healthcare and education customers.
|
•
|
Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing IT securely. These trends are driving customer adoption of solutions such as those delivered via cloud, software defined architectures and hybrid on-premise and off-premise combinations, as well as the evolution of the IT consumption model to more "as a service" offerings, including Device as a Service ("DaaS") and managed services.
|
|
Three Months Ended September 30,
|
||||||
(dollars in millions)
|
2019
|
|
2018
|
||||
Net sales
|
$
|
4,907.7
|
|
|
$
|
4,373.2
|
|
Gross profit
|
816.5
|
|
|
713.6
|
|
||
Operating income
|
320.6
|
|
|
274.8
|
|
||
Net income
|
201.7
|
|
|
183.7
|
|
||
Non-GAAP operating income
|
380.4
|
|
|
333.9
|
|
||
Non-GAAP net income
|
249.9
|
|
|
217.6
|
|
||
Average daily sales(1)
|
76.7
|
|
|
69.4
|
|
||
Net debt(2)
|
3,117.5
|
|
|
2,964.3
|
|
||
Cash conversion cycle (in days)
|
17
|
|
|
18
|
|
(1)
|
There were 64 and 63 selling days for the three months ended September 30, 2019 and 2018, respectively.
|
(2)
|
Defined as Total debt minus Cash and cash equivalents.
|
|
|
Three Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
|
|
Dollars in
Millions
|
|
Percentage of
Net Sales
|
|
Dollars in
Millions
|
|
Percentage of
Net Sales
|
||||||
Net sales
|
|
$
|
4,907.7
|
|
|
100.0
|
%
|
|
$
|
4,373.2
|
|
|
100.0
|
%
|
Cost of sales
|
|
4,091.2
|
|
|
83.4
|
|
|
3,659.6
|
|
|
83.7
|
|
||
Gross profit
|
|
816.5
|
|
|
16.6
|
|
|
713.6
|
|
|
16.3
|
|
||
Selling and administrative expenses
|
|
444.9
|
|
|
9.1
|
|
|
390.7
|
|
|
8.9
|
|
||
Advertising expense
|
|
51.0
|
|
|
1.0
|
|
|
48.1
|
|
|
1.1
|
|
||
Operating income
|
|
320.6
|
|
|
6.5
|
|
|
274.8
|
|
|
6.3
|
|
||
Interest expense, net
|
|
(42.3
|
)
|
|
(0.9
|
)
|
|
(36.6
|
)
|
|
(0.8
|
)
|
||
Other (expense) income, net
|
|
(17.4
|
)
|
|
(0.3
|
)
|
|
0.2
|
|
|
—
|
|
||
Income before income taxes
|
|
260.9
|
|
|
5.3
|
|
|
238.4
|
|
|
5.5
|
|
||
Income tax expense
|
|
(59.2
|
)
|
|
(1.2
|
)
|
|
(54.7
|
)
|
|
(1.2
|
)
|
||
Net income
|
|
$
|
201.7
|
|
|
4.1
|
%
|
|
$
|
183.7
|
|
|
4.2
|
%
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
|
|
|
|
|
||||||||||||||
(dollars in millions)
|
|
Net Sales
|
|
Percentage
of Total Net Sales
|
|
Net Sales
|
|
Percentage
of Total Net Sales
|
|
Dollar
Change
|
|
Percent
Change
|
|
Average Daily Sales Percent Change(1)
|
||||||||||
Corporate
|
|
$
|
1,913.5
|
|
|
39.0
|
%
|
|
$
|
1,706.5
|
|
|
39.1
|
%
|
|
$
|
207.0
|
|
|
12.1
|
%
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Small Business
|
|
386.2
|
|
|
7.9
|
|
|
340.0
|
|
|
7.8
|
|
|
46.2
|
|
|
13.6
|
|
|
11.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Public:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government
|
|
793.4
|
|
|
16.2
|
|
|
639.3
|
|
|
14.6
|
|
|
154.1
|
|
|
24.1
|
|
|
22.2
|
|
|||
Education
|
|
807.0
|
|
|
16.4
|
|
|
793.1
|
|
|
18.1
|
|
|
13.9
|
|
|
1.8
|
|
|
0.2
|
|
|||
Healthcare
|
|
500.5
|
|
|
10.2
|
|
|
442.7
|
|
|
10.1
|
|
|
57.8
|
|
|
13.1
|
|
|
11.3
|
|
|||
Total Public
|
|
2,100.9
|
|
|
42.8
|
|
|
1,875.1
|
|
|
42.8
|
|
|
225.8
|
|
|
12.0
|
|
|
10.3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
507.1
|
|
|
10.3
|
|
|
451.6
|
|
|
10.3
|
|
|
55.5
|
|
|
12.3
|
|
|
10.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Net sales
|
|
$
|
4,907.7
|
|
|
100.0
|
%
|
|
$
|
4,373.2
|
|
|
100.0
|
%
|
|
$
|
534.5
|
|
|
12.2
|
%
|
|
10.5
|
%
|
(1)
|
There were 64 and 63 selling days for the three months ended September 30, 2019 and 2018, respectively.
|
|
|
Three Months Ended September 30,
|
|
|
|||||||||||||
|
|
2019
|
|
2018
|
|
|
|||||||||||
|
|
Dollars in
Millions
|
|
Operating
Margin
|
|
Dollars in
Millions
|
|
Operating
Margin
|
|
Percent Change
in Operating Income
|
|||||||
Segments:(1)
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate
|
|
$
|
138.9
|
|
|
7.3
|
%
|
|
$
|
125.7
|
|
|
7.4
|
%
|
|
10.5
|
%
|
Small Business
|
|
27.2
|
|
|
7.0
|
|
|
23.8
|
|
|
7.0
|
|
|
14.3
|
|
||
Public
|
|
168.4
|
|
|
8.0
|
|
|
136.6
|
|
|
7.3
|
|
|
23.3
|
|
||
Other(2)
|
|
21.9
|
|
|
4.3
|
|
|
19.2
|
|
|
4.3
|
|
|
14.1
|
|
||
Headquarters(3)
|
|
(35.8
|
)
|
|
nm*
|
|
|
(30.5
|
)
|
|
nm*
|
|
|
(17.4
|
)
|
||
Total Operating income
|
|
$
|
320.6
|
|
|
6.5
|
%
|
|
$
|
274.8
|
|
|
6.3
|
%
|
|
16.7
|
%
|
(1)
|
Segment operating income includes the segment's direct operating income, allocations for Headquarters' costs, allocations for income and expenses from logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors.
|
(2)
|
Includes the financial results for our other operating segments, CDW UK and CDW Canada, which do not meet the reportable segment quantitative thresholds.
|
(3)
|
Includes certain Headquarters' function costs that are not allocated to the segments.
|
|
|
Three Months Ended September 30,
|
||||||
(dollars in millions)
|
|
2019
|
|
2018
|
||||
Operating income
|
|
$
|
320.6
|
|
|
$
|
274.8
|
|
Amortization of intangibles(1)
|
|
44.6
|
|
|
45.3
|
|
||
Equity-based compensation
|
|
12.8
|
|
|
10.8
|
|
||
Scalar acquisition and integration expenses
|
|
0.9
|
|
|
—
|
|
||
Other adjustments(2)
|
|
1.5
|
|
|
3.0
|
|
||
Non-GAAP operating income
|
|
$
|
380.4
|
|
|
$
|
333.9
|
|
Non-GAAP operating income margin
|
|
7.8
|
%
|
|
7.6
|
%
|
(1)
|
Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
|
(2)
|
Includes other expenses such as payroll taxes on equity-based compensation.
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
(in millions)
|
|
Income before income taxes
|
|
Income tax expense(1)
|
|
Net income
|
|
Income before income taxes
|
|
Income tax expense(1)
|
|
Net income
|
||||||||||||
GAAP (as reported)
|
|
$
|
260.9
|
|
|
$
|
(59.2
|
)
|
|
$
|
201.7
|
|
|
$
|
238.4
|
|
|
$
|
(54.7
|
)
|
|
$
|
183.7
|
|
Amortization of intangibles(2)
|
|
44.6
|
|
|
(11.3
|
)
|
|
33.3
|
|
|
45.3
|
|
|
(12.0
|
)
|
|
33.3
|
|
||||||
Equity-based compensation
|
|
12.8
|
|
|
(11.8
|
)
|
|
1.0
|
|
|
10.8
|
|
|
(10.5
|
)
|
|
0.3
|
|
||||||
Net loss on extinguishment of long-term debt
|
|
16.1
|
|
|
(4.0
|
)
|
|
12.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Scalar acquisition and integration expenses
|
|
0.9
|
|
|
(0.2
|
)
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other adjustments(3)
|
|
1.5
|
|
|
(0.4
|
)
|
|
1.1
|
|
|
3.0
|
|
|
(2.7
|
)
|
|
0.3
|
|
||||||
Non-GAAP
|
|
$
|
336.8
|
|
|
$
|
(86.9
|
)
|
|
$
|
249.9
|
|
|
$
|
297.5
|
|
|
$
|
(79.9
|
)
|
|
$
|
217.6
|
|
(1)
|
Income tax on non-GAAP adjustments includes excess tax benefits associated with equity-based compensation and the impact of global intangible low tax income ("GILTI") due to equity-based compensation and amortization of intangibles.
|
(2)
|
Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
|
(3)
|
Includes other expenses such as payroll taxes on equity-based compensation.
|
|
|
Three Months Ended September 30,
|
||||||||||||
(dollars in millions)
|
|
2019
|
|
2018
|
|
% Change
|
|
Average Daily % Change(1)
|
||||||
Net sales, as reported
|
|
$
|
4,907.7
|
|
|
$
|
4,373.2
|
|
|
12.2
|
%
|
|
10.5
|
%
|
Foreign currency translation(2)
|
|
—
|
|
|
(18.1
|
)
|
|
|
|
|
||||
Net sales, on a constant currency basis
|
|
$
|
4,907.7
|
|
|
$
|
4,355.1
|
|
|
12.7
|
%
|
|
10.9
|
%
|
(1)
|
There were 64 and 63 selling days for the three months ended September 30, 2019 and 2018, respectively.
|
(2)
|
Represents the effect of translating the prior year results of CDW UK and CDW Canada at the average exchange rates applicable in the current year.
|
|
Nine Months Ended September 30,
|
||||||
(dollars in millions)
|
2019
|
|
2018
|
||||
Net sales
|
$
|
13,495.5
|
|
|
$
|
12,165.7
|
|
Gross profit
|
2,262.4
|
|
|
2,013.1
|
|
||
Operating income
|
849.8
|
|
|
744.4
|
|
||
Net income
|
551.2
|
|
|
483.7
|
|
||
Non-GAAP operating income
|
1,026.1
|
|
|
917.1
|
|
||
Non-GAAP net income
|
673.0
|
|
|
593.6
|
|
||
Average daily sales(1)
|
70.7
|
|
|
63.7
|
|
||
Net debt(2)
|
3,117.5
|
|
|
2,964.3
|
|
||
Cash conversion cycle (in days)(3)
|
17
|
|
|
18
|
|
(1)
|
There were 191 selling days for both the nine months ended September 30, 2019 and 2018.
|
(2)
|
Defined as Total debt minus Cash and cash equivalents.
|
(3)
|
Cash conversion cycle is defined as days of sales outstanding in Accounts receivable and certain receivables due from vendors plus days of supply in Merchandise inventory minus days of purchases outstanding in Accounts payable and Accounts payable-inventory financing, based on a rolling three-month average.
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
|
|
Dollars in
Millions
|
|
Percentage of
Net Sales
|
|
Dollars in
Millions
|
|
Percentage of
Net Sales
|
||||||
Net sales
|
|
$
|
13,495.5
|
|
|
100.0
|
%
|
|
$
|
12,165.7
|
|
|
100.0
|
%
|
Cost of sales
|
|
11,233.1
|
|
|
83.2
|
|
|
10,152.6
|
|
|
83.5
|
|
||
Gross profit
|
|
2,262.4
|
|
|
16.8
|
|
|
2,013.1
|
|
|
16.5
|
|
||
Selling and administrative expenses
|
|
1,269.3
|
|
|
9.4
|
|
|
1,134.8
|
|
|
9.3
|
|
||
Advertising expense
|
|
143.3
|
|
|
1.1
|
|
|
133.9
|
|
|
1.1
|
|
||
Operating income
|
|
849.8
|
|
|
6.3
|
|
|
744.4
|
|
|
6.1
|
|
||
Interest expense, net
|
|
(121.1
|
)
|
|
(0.9
|
)
|
|
(111.5
|
)
|
|
(0.9
|
)
|
||
Other (expense) income, net
|
|
(15.0
|
)
|
|
(0.1
|
)
|
|
1.0
|
|
|
—
|
|
||
Income before income taxes
|
|
713.7
|
|
|
5.3
|
|
|
633.9
|
|
|
5.2
|
|
||
Income tax expense
|
|
(162.5
|
)
|
|
(1.2
|
)
|
|
(150.2
|
)
|
|
(1.2
|
)
|
||
Net income
|
|
$
|
551.2
|
|
|
4.1
|
%
|
|
$
|
483.7
|
|
|
4.0
|
%
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||||||||
|
|
2019
|
|
2018
|
|
|
|
|
|||||||||||||
(dollars in millions)
|
|
Net Sales
|
|
Percentage
of Total Net Sales
|
|
Net Sales
|
|
Percentage
of Total Net Sales
|
|
Dollar
Change
|
|
Percent
Change(1)
|
|||||||||
Corporate
|
|
$
|
5,533.6
|
|
|
41.0
|
%
|
|
$
|
5,006.1
|
|
|
41.1
|
%
|
|
$
|
527.5
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Small Business
|
|
1,119.2
|
|
|
8.3
|
|
|
997.1
|
|
|
8.2
|
|
|
122.1
|
|
|
12.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Public:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Government
|
|
1,860.2
|
|
|
13.8
|
|
|
1,551.3
|
|
|
12.8
|
|
|
308.9
|
|
|
19.9
|
|
|||
Education
|
|
1,981.0
|
|
|
14.7
|
|
|
1,902.4
|
|
|
15.6
|
|
|
78.6
|
|
|
4.1
|
|
|||
Healthcare
|
|
1,430.5
|
|
|
10.6
|
|
|
1,286.8
|
|
|
10.6
|
|
|
143.7
|
|
|
11.2
|
|
|||
Total Public
|
|
5,271.7
|
|
|
39.1
|
|
|
4,740.5
|
|
|
39.0
|
|
|
531.2
|
|
|
11.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other
|
|
1,571.0
|
|
|
11.6
|
|
|
1,422.0
|
|
|
11.7
|
|
|
149.0
|
|
|
10.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Net sales
|
|
$
|
13,495.5
|
|
|
100.0
|
%
|
|
$
|
12,165.7
|
|
|
100.0
|
%
|
|
$
|
1,329.8
|
|
|
10.9
|
%
|
(1)
|
There were 191 selling days for both the nine months ended September 30, 2019 and 2018.
|
|
|
Nine Months Ended September 30,
|
|
|
|||||||||||||
|
|
2019
|
|
2018
|
|
|
|||||||||||
|
|
Dollars in
Millions
|
|
Operating
Margin
|
|
Dollars in
Millions
|
|
Operating
Margin
|
|
Percent Change
in Operating
Income
|
|||||||
Segments:(1)
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate
|
|
$
|
430.8
|
|
|
7.8
|
%
|
|
$
|
388.3
|
|
|
7.8
|
%
|
|
10.9
|
%
|
Small Business
|
|
78.2
|
|
|
7.0
|
|
|
70.0
|
|
|
7.0
|
|
|
11.7
|
|
||
Public
|
|
373.9
|
|
|
7.1
|
|
|
318.3
|
|
|
6.7
|
|
|
17.5
|
|
||
Other(2)
|
|
66.6
|
|
|
4.2
|
|
|
60.7
|
|
|
4.3
|
|
|
9.7
|
|
||
Headquarters(3)
|
|
(99.7
|
)
|
|
nm*
|
|
|
(92.9
|
)
|
|
nm*
|
|
|
(7.3
|
)
|
||
Total Operating income
|
|
$
|
849.8
|
|
|
6.3
|
%
|
|
$
|
744.4
|
|
|
6.1
|
%
|
|
14.2
|
%
|
(1)
|
Segment operating income includes the segment's direct operating income, allocations for Headquarters' costs, allocations for income and expenses from logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors.
|
(2)
|
Includes the financial results for our other operating segments, CDW UK and CDW Canada, which do not meet the reportable segment quantitative thresholds.
|
(3)
|
Includes certain Headquarters' function costs that are not allocated to the segments.
|
|
|
Nine Months Ended September 30,
|
||||||
(dollars in millions)
|
|
2019
|
|
2018
|
||||
Operating income
|
|
$
|
849.8
|
|
|
$
|
744.4
|
|
Amortization of intangibles(1)
|
|
133.7
|
|
|
138.6
|
|
||
Equity-based compensation
|
|
37.7
|
|
|
29.9
|
|
||
Scalar acquisition and integration expenses
|
|
2.0
|
|
|
—
|
|
||
Other adjustments(2)
|
|
2.9
|
|
|
4.2
|
|
||
Non-GAAP operating income
|
|
$
|
1,026.1
|
|
|
$
|
917.1
|
|
Non-GAAP operating income margin
|
|
7.6
|
%
|
|
7.5
|
%
|
(1)
|
Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
|
(2)
|
Includes other expenses such as payroll taxes on equity-based compensation.
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||||
(in millions)
|
|
Income before income taxes
|
|
Income tax expense(1)
|
|
Net income
|
|
Income before income taxes
|
|
Income tax expense(1)
|
|
Net income
|
||||||||||||
GAAP (as reported)
|
|
$
|
713.7
|
|
|
$
|
(162.5
|
)
|
|
$
|
551.2
|
|
|
$
|
633.9
|
|
|
$
|
(150.2
|
)
|
|
$
|
483.7
|
|
Amortization of intangibles(2)
|
|
133.7
|
|
|
(33.8
|
)
|
|
99.9
|
|
|
138.6
|
|
|
(36.0
|
)
|
|
102.6
|
|
||||||
Equity-based compensation
|
|
37.7
|
|
|
(28.7
|
)
|
|
9.0
|
|
|
29.9
|
|
|
(23.8
|
)
|
|
6.1
|
|
||||||
Net loss on extinguishment of long-term debt
|
|
16.1
|
|
|
(4.0
|
)
|
|
12.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Scalar acquisition and integration expenses(3)
|
|
2.0
|
|
|
(3.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other adjustments(4)
|
|
2.9
|
|
|
(0.7
|
)
|
|
2.2
|
|
|
4.2
|
|
|
(3.0
|
)
|
|
1.2
|
|
||||||
Non-GAAP
|
|
$
|
906.1
|
|
|
$
|
(233.1
|
)
|
|
$
|
673.0
|
|
|
$
|
806.6
|
|
|
$
|
(213.0
|
)
|
|
$
|
593.6
|
|
(1)
|
Income tax on non-GAAP adjustments includes excess tax benefits associated with equity-based compensation and the impact of GILTI due to equity-based compensation and amortization of intangibles.
|
(2)
|
Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names.
|
(3)
|
Includes a $3 million discrete tax benefit related to CDW Canada's acquisition of Scalar.
|
(4)
|
Includes other expenses such as payroll taxes on equity-based compensation.
|
|
|
Nine Months Ended September 30,
|
|||||||||
(dollars in millions)
|
|
2019
|
|
2018
|
|
% Change
|
|||||
Net sales, as reported
|
|
$
|
13,495.5
|
|
|
$
|
12,165.7
|
|
|
10.9
|
%
|
Foreign currency translation(2)
|
|
—
|
|
|
(68.9
|
)
|
|
|
|||
Net sales, on a constant currency basis
|
|
$
|
13,495.5
|
|
|
$
|
12,096.8
|
|
|
11.6
|
%
|
(1)
|
There were 191 selling days for both the nine months ended September 30, 2019 and 2018.
|
(2)
|
Represents the effect of translating the prior year results of CDW UK and CDW Canada at the average exchange rates applicable in the current year.
|
Dividend Amount
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
$0.295
|
|
February 7, 2019
|
|
February 25, 2019
|
|
March 12, 2019
|
$0.295
|
|
May 1, 2019
|
|
May 24, 2019
|
|
June 11, 2019
|
$0.295
|
|
July 31, 2019
|
|
August 26, 2019
|
|
September 10, 2019
|
|
Nine Months Ended September 30,
|
||||||
(in millions)
|
2019
|
|
2018
|
||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
682.3
|
|
|
$
|
602.3
|
|
Investing activities
|
(150.0
|
)
|
|
(53.4
|
)
|
||
Net change in accounts payable-inventory financing
|
(17.4
|
)
|
|
(90.1
|
)
|
||
Other financing activities
|
(551.1
|
)
|
|
(345.2
|
)
|
||
Financing activities
|
(568.5
|
)
|
|
(435.3
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(2.7
|
)
|
|
(2.7
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(38.9
|
)
|
|
$
|
110.9
|
|
|
Nine Months Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
Change
|
||||||
Net income
|
$
|
551.2
|
|
|
$
|
483.7
|
|
|
$
|
67.5
|
|
Adjustments for the impact of non-cash items(1)
|
226.9
|
|
|
198.1
|
|
|
28.8
|
|
|||
Net income adjusted for the impact of non-cash items(2)
|
778.1
|
|
|
681.8
|
|
|
96.3
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable(3)
|
(171.8
|
)
|
|
(334.3
|
)
|
|
162.5
|
|
|||
Merchandise inventory(4)
|
(151.1
|
)
|
|
(72.1
|
)
|
|
(79.0
|
)
|
|||
Accounts payable-trade(5)
|
264.0
|
|
|
300.6
|
|
|
(36.6
|
)
|
|||
Other(6)
|
(36.9
|
)
|
|
26.3
|
|
|
(63.2
|
)
|
|||
Net cash provided by operating activities
|
$
|
682.3
|
|
|
$
|
602.3
|
|
|
$
|
80.0
|
|
(1)
|
Includes items such as deferred income taxes, depreciation and amortization, and equity-based compensation expense.
|
(2)
|
The change is primarily due to stronger operating results driven by Net sales and Gross profit growth.
|
(3)
|
The change is due to favorable timing of collections.
|
(4)
|
The change is due to higher customer-driven stocking positions.
|
(5)
|
The change is due to timing of payments, partially offset by increased sales in 2019.
|
(6)
|
The change is due to a higher increase in the receivables from vendors due to the growth in business and a lower increase in accrued compensation expense.
|
|
September 30,
|
||||
(in days)
|
2019
|
|
2018
|
||
Days of sales outstanding ("DSO")(1)
|
56
|
|
|
55
|
|
Days of supply in inventory ("DIO")(2)
|
13
|
|
|
12
|
|
Days of purchases outstanding ("DPO")(3)
|
(52
|
)
|
|
(49
|
)
|
Cash conversion cycle
|
17
|
|
|
18
|
|
(1)
|
Represents the rolling three-month average of the balance of Accounts receivable, net at the end of the period, divided by average daily Net sales for the same three-month period. Also incorporates components of other miscellaneous receivables.
|
(2)
|
Represents the rolling three-month average of the balance of Merchandise inventory at the end of the period divided by average daily Cost of sales for the same three-month period.
|
(3)
|
Represents the rolling three-month average of the combined balance of Accounts payable-trade, excluding cash overdrafts, and Accounts payable-inventory financing at the end of the period divided by average daily Cost of sales for the same three-month period.
|
Period
|
|
Total Number of Shares Purchased (in millions)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of a Publicly Announced Program (in millions)
|
|
Maximum Dollar Value of Shares that May Yet be Purchased Under the Program(1)
(in millions)
|
||||||
July 1 through July 31, 2019
|
|
0.5
|
|
|
$
|
113.12
|
|
|
0.5
|
|
|
$
|
946.4
|
|
August 1 through August 31, 2019
|
|
0.5
|
|
|
$
|
112.96
|
|
|
0.5
|
|
|
$
|
884.6
|
|
September 1 through September 30, 2019
|
|
0.4
|
|
|
$
|
117.72
|
|
|
0.4
|
|
|
$
|
842.3
|
|
Total
|
|
1.4
|
|
|
|
|
1.4
|
|
|
|
(1)
|
The amounts presented in this column are the remaining total authorized value to be spent after each month's repurchases. On August 3, 2017, the Company announced that its Board of Directors authorized a $750 million increase to the share repurchase program under which the Company may repurchase shares of its common stock in the open market through privately negotiated or other transactions, depending on share price, market conditions and other factors. On February 7, 2019, the Company announced that its Board of Directors authorized a $1.0 billion increase to the share repurchase program.
|
Exhibit
|
|
Description
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
10.1*
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1**
|
|
|
|
|
|
32.2**
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH*
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF*
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
104*
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
*
|
Filed herewith
|
**
|
These items are furnished and not filed.
|
|
|
|
|
|
|
|
|
|
CDW CORPORATION
|
||
|
|
|
|
|
|
Date:
|
October 31, 2019
|
|
By:
|
|
/s/ Collin B. Kebo
|
|
|
|
|
|
Collin B. Kebo
|
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
|
|
(Duly authorized officer and principal financial officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of the registrant;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Christine A. Leahy
|
Christine A. Leahy
|
President and Chief Executive Officer
|
CDW Corporation
|
October 31, 2019
|
1.
|
I have reviewed this quarterly report on Form 10-Q of the registrant;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Collin B. Kebo
|
Collin B. Kebo
|
Senior Vice President and Chief Financial Officer
|
CDW Corporation
|
October 31, 2019
|
/s/ Christine A. Leahy
|
Christine A. Leahy
|
President and Chief Executive Officer
|
CDW Corporation
|
October 31, 2019
|
/s/ Collin B. Kebo
|
Collin B. Kebo
|
Senior Vice President and Chief Financial Officer
|
CDW Corporation
|
October 31, 2019
|