Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35985 | |
Entity Registrant Name | CDW CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0273989 | |
Entity Address, Address Line One | 75 Tri-State International | |
Entity Address, City or Town | Lincolnshire | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60069 | |
City Area Code | 847 | |
Local Phone Number | 465-6000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CDW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 135,390,982 | |
Entity Central Index Key | 0001402057 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 384.6 | $ 258.1 |
Accounts receivable, net of allowance for credit losses of $24.0 and $20.4, respectively | 4,549.4 | 4,499.4 |
Merchandise inventory | 914.5 | 927.6 |
Miscellaneous receivables | 486.4 | 435.5 |
Prepaid expenses and other | 560.3 | 357.5 |
Total current assets | 6,895.2 | 6,478.1 |
Operating lease right-of-use assets | 153.8 | 155.6 |
Property and equipment, net | 188 | 195.8 |
Goodwill | 4,327.5 | 4,382.9 |
Other intangible assets, net | 1,525.5 | 1,628.1 |
Other assets | 385.6 | 358.9 |
Total Assets | 13,475.6 | 13,199.4 |
Current liabilities: | ||
Accounts payable-trade | 3,251.1 | 3,114.2 |
Accounts payable-inventory financing | 478.7 | 448.3 |
Current maturities of long-term debt | 57.8 | 102.7 |
Contract liabilities | 437.7 | 402.9 |
Accrued expenses and other current liabilities: | ||
Compensation | 359.1 | 361.7 |
Advertising | 169.8 | 145.5 |
Sales and income taxes | 58 | 65.9 |
Other | 546.6 | 454.8 |
Total current liabilities | 5,358.8 | 5,096 |
Long-term liabilities: | ||
Debt | 6,100 | 6,755.8 |
Deferred income taxes | 208.3 | 222.3 |
Operating lease liabilities | 180 | 184.2 |
Other liabilities | 302.5 | 235.4 |
Total long-term liabilities | 6,790.8 | 7,397.7 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 100.0 shares authorized; no shares issued or outstanding for both periods | 0 | 0 |
Common stock, $0.01 par value, 1,000.0 shares authorized; 135.3 and 134.8 shares outstanding, respectively | 1.4 | 1.3 |
Paid-in capital | 3,481.5 | 3,369.5 |
Accumulated deficit | (1,969.3) | (2,570.7) |
Accumulated other comprehensive loss | (187.6) | (94.4) |
Total stockholders’ equity | 1,326 | 705.7 |
Total Liabilities and Stockholders’ Equity | $ 13,475.6 | $ 13,199.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss, current | $ 24 | $ 20.4 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares outstanding (in shares) | 135,300,000 | 134,800,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,215.5 | $ 5,300 | $ 18,310.4 | $ 15,283.9 |
Cost of sales | 4,982.3 | 4,385.1 | 14,804.9 | 12,691 |
Gross profit | 1,233.2 | 914.9 | 3,505.5 | 2,592.9 |
Selling and administrative expenses | 766.8 | 528.5 | 2,216.9 | 1,513.2 |
Operating income | 466.4 | 386.4 | 1,288.6 | 1,079.7 |
Interest expense, net | (62.6) | (36.4) | (176.3) | (107.5) |
Other (expense) income, net | (4.8) | 0.4 | (5.7) | 38.3 |
Income before income taxes | 399 | 350.4 | 1,106.6 | 1,010.5 |
Income tax expense | (101.2) | (83.8) | (279.3) | (237.2) |
Net income | $ 297.8 | $ 266.6 | $ 827.3 | $ 773.3 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 2.20 | $ 1.94 | $ 6.12 | $ 5.54 |
Diluted (in dollars per share) | $ 2.17 | $ 1.91 | $ 6.04 | $ 5.47 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 135.3 | 137.3 | 135.1 | 139.5 |
Diluted (in shares) | 137.1 | 139.4 | 136.9 | 141.4 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 297.8 | $ 266.6 | $ 827.3 | $ 773.3 |
Other comprehensive income (loss): | ||||
Unrealized gain from cash flow hedge, net of tax | 0.7 | 0 | 2.1 | 0 |
Reclassification of cash flow hedge loss to net income, net of tax | 1 | 0.7 | 2.6 | 1.7 |
Foreign currency translation, net of tax | (50) | (15) | (97.9) | (3.4) |
Other comprehensive income (loss) | (48.3) | (14.3) | (93.2) | (1.7) |
Comprehensive income | $ 249.5 | $ 252.3 | $ 734.1 | $ 771.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 827.3 | $ 773.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 218.1 | 140 |
Equity-based compensation expense | 71.4 | 53.3 |
Deferred income taxes | (12.3) | (6.7) |
Provision for credit losses | 6.6 | (7.3) |
Other | 13.1 | (33.4) |
Changes in assets and liabilities: | ||
Accounts receivable | (156.2) | (323.5) |
Merchandise inventory | (16.1) | (87.5) |
Other assets | (273.9) | (92.6) |
Accounts payable-trade | 188.5 | 179.7 |
Other liabilities | 227.5 | 41.4 |
Net cash provided by operating activities | 1,094 | 636.7 |
Cash flows from investing activities: | ||
Capital expenditures | (97.2) | (66.2) |
Acquisitions of businesses, net of cash acquired | (28) | (339.7) |
Proceeds from the sale of equity method investment | 0 | 36 |
Net cash used in investing activities | (125.2) | (369.9) |
Cash flows from financing activities: | ||
Proceeds from borrowings under revolving credit facility | 1,854.6 | 548.3 |
Repayments of borrowings under revolving credit facility | (2,047.3) | (379.6) |
Repayments of debt | (435.5) | (11.2) |
Repayments of receivable financing liability | (58.9) | (2.1) |
Payments to extinguish debt | 0 | (56.5) |
Net change in accounts payable-inventory financing | 46.6 | (183.7) |
Financing payments for revenue generating assets | 0 | (46.1) |
Repurchases of common stock | 0 | (1,185.3) |
Proceeds from stock option exercises | 20.7 | 60.7 |
Payment of incentive compensation plan withholding taxes | (21.9) | (28.4) |
Dividend payments | (202.7) | (167.1) |
Other | 14 | 19.2 |
Net cash used in financing activities | (830.4) | (1,431.8) |
Effect of exchange rate changes on cash and cash equivalents | (11.9) | (0.1) |
Net increase (decrease) in cash and cash equivalents | 126.5 | (1,165.1) |
Cash and cash equivalents—beginning of period | 258.1 | 1,410.2 |
Cash and cash equivalents—end of period | 384.6 | 245.1 |
Supplementary disclosure of cash flow information: | ||
Interest paid | (131.6) | (85.1) |
Income taxes paid, net | $ (274.5) | $ (264.4) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 141,900,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,297.1 | $ 19.2 | $ 1.4 | $ 3,204.9 | $ (1,813.4) | $ 19.2 | $ (95.8) |
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 773.3 | 773.3 | |||||
Equity-based compensation expense | 53.3 | 53.3 | |||||
Stock option exercises (in shares) | 1,200,000 | ||||||
Stock option exercises | 60.7 | 60.7 | |||||
Coworker Stock Purchase Plan (in shares) | 100,000 | ||||||
Coworker Stock Purchase Plan | 15.9 | 15.9 | |||||
Repurchases of common stock (in shares) | (7,000,000) | ||||||
Repurchases of common stock | (1,185.3) | (1,185.3) | |||||
Dividends paid | (167.1) | 0.9 | (168) | ||||
Incentive compensation plan stock withheld for taxes | (28.4) | (28.4) | |||||
Unrealized gain from cash flow hedge, net of tax | 0 | ||||||
Reclassification of cash flow hedge loss to net income | 1.7 | 1.7 | |||||
Foreign currency translation | (3.4) | (3.4) | |||||
Ending balance (in shares) at Sep. 30, 2021 | 136,200,000 | ||||||
Ending balance at Sep. 30, 2021 | 837 | $ 1.4 | 3,335.7 | (2,402.6) | (97.5) | ||
Beginning balance (in shares) at Jun. 30, 2021 | 138,300,000 | ||||||
Beginning balance at Jun. 30, 2021 | 1,048.8 | $ 1.4 | 3,294.1 | (2,163.5) | (83.2) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 266.6 | 266.6 | |||||
Equity-based compensation expense | 16.9 | 16.9 | |||||
Stock option exercises (in shares) | 300,000 | ||||||
Stock option exercises | 18.9 | 18.9 | |||||
Coworker Stock Purchase Plan (in shares) | 0 | ||||||
Coworker Stock Purchase Plan | 5.5 | 5.5 | |||||
Repurchases of common stock (in shares) | (2,400,000) | ||||||
Repurchases of common stock | (450) | $ 0 | (450) | ||||
Dividends paid | (54.8) | 0.3 | (55.1) | ||||
Incentive compensation plan stock withheld for taxes | (0.6) | (0.6) | |||||
Unrealized gain from cash flow hedge, net of tax | 0 | ||||||
Reclassification of cash flow hedge loss to net income | 0.7 | 0.7 | |||||
Foreign currency translation | (15) | (15) | |||||
Ending balance (in shares) at Sep. 30, 2021 | 136,200,000 | ||||||
Ending balance at Sep. 30, 2021 | 837 | $ 1.4 | 3,335.7 | (2,402.6) | (97.5) | ||
Beginning balance (in shares) at Dec. 31, 2021 | 134,800,000 | ||||||
Beginning balance at Dec. 31, 2021 | 705.7 | $ 1.3 | 3,369.5 | (2,570.7) | (94.4) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 827.3 | 827.3 | |||||
Equity-based compensation expense | 71.4 | 71.4 | |||||
Stock option exercises (in shares) | 400,000 | ||||||
Stock option exercises | 20.7 | $ 0.1 | 20.6 | ||||
Coworker Stock Purchase Plan (in shares) | 100,000 | ||||||
Coworker Stock Purchase Plan | 18.7 | 18.7 | |||||
Dividends paid | (202.7) | 1.3 | (204) | ||||
Incentive compensation plan stock withheld for taxes | (21.9) | (21.9) | |||||
Unrealized gain from cash flow hedge, net of tax | 2.1 | 2.1 | |||||
Reclassification of cash flow hedge loss to net income | 2.6 | 2.6 | |||||
Foreign currency translation | (97.9) | (97.9) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 135,300,000 | ||||||
Ending balance at Sep. 30, 2022 | 1,326 | $ 1.4 | 3,481.5 | (1,969.3) | (187.6) | ||
Beginning balance (in shares) at Jun. 30, 2022 | 135,200,000 | ||||||
Beginning balance at Jun. 30, 2022 | 1,106.2 | $ 1.4 | 3,441.8 | (2,197.7) | (139.3) | ||
Shareholders' Equity (Deficit) [Roll Forward] | |||||||
Net income | 297.8 | 297.8 | |||||
Equity-based compensation expense | 26.8 | 26.8 | |||||
Stock option exercises (in shares) | 100,000 | ||||||
Stock option exercises | 5.6 | 5.6 | |||||
Coworker Stock Purchase Plan (in shares) | 0 | ||||||
Coworker Stock Purchase Plan | 6.9 | 6.9 | |||||
Dividends paid | (67.7) | 0.4 | (68.1) | ||||
Incentive compensation plan stock withheld for taxes | (1.3) | (1.3) | |||||
Unrealized gain from cash flow hedge, net of tax | 0.7 | 0.7 | |||||
Reclassification of cash flow hedge loss to net income | 1 | 1 | |||||
Foreign currency translation | (50) | (50) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 135,300,000 | ||||||
Ending balance at Sep. 30, 2022 | $ 1,326 | $ 1.4 | $ 3,481.5 | $ (1,969.3) | $ (187.6) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 0.50 | $ 0.40 | $ 1.50 | $ 1.20 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business CDW Corporation (“Parent”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of 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 broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience and security. 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 September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 (the “Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the US Securities and Exchange Commission (the “SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The presentation of the Consolidated Financial Statements requires the Company to make estimates and assumptions that affect reported amounts and related disclosures. 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. 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, 2021 (the “December 31, 2021 Consolidated Financial Statements”). The significant accounting policies and estimates used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2021 Consolidated Financial Statements. On December 1, 2021, the Company completed its acquisition of all issued and outstanding equity interests in Granite Parent, Inc., the parent company of Sirius Computer Solutions, Inc. (“Sirius”), a leading provider of secure, mission-critical technology-based solutions and one of the largest IT solutions integrators in the United States. The Company included the financial results of Sirius in its Consolidated Financial Statements from the date of the acquisition. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Sirius On December 1, 2021, the Company completed its acquisition of Sirius for an aggregate consideration paid, net of cash acquired, of approximately $2.4 billion. The purchase price allocation is preliminary and is subject to change during the measurement period, which is not to exceed 12 months from the close of the acquisition. During the nine months ended September 30, 2022, there have been no significant adjustments to the preliminary purchase price allocation from those disclosed in the Company’s December 31, 2021 Consolidated Financial Statements. At this time, the Company is in the process of finalizing the purchase price allocation, which includes finalizing the valuation assumptions for customer relationships, such as customer attrition rate, as well as the allocation of goodwill across the reporting units. Focal Point Data Risk LLC and certain affiliates (“Focal Point”) On July 30, 2021, the Company completed its acquisition of Focal Point through a purchase of all issued and outstanding equity interests. The purchase price allocation was final as of June 30, 2022. There were no adjustments to the preliminary purchase price allocation disclosed in the Company’s December 31, 2021 Consolidated Financial Statements. Amplified IT LLC (“Amplified IT”) On March 15, 2021, the Company completed its acquisition of Amplified IT through a purchase of all issued and outstanding membership interests. The purchase price allocation was final as of March 31, 2022. There were no adjustments to the preliminary purchase price allocation disclosed in the Company’s December 31, 2021 Consolidated Financial Statements. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Balances | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Accounts Receivable and Contract Balances | Accounts Receivable and Contract Balances Accounts Receivable The timing of revenue recognition may differ from the time of billing to customers. Accounts receivable presented on the Consolidated Balance Sheets represent an unconditional right to consideration, which includes unbilled receivables. Unbilled receivables represent revenues that are not currently billable but payment is unconditional and solely subject to the passage of time. These items are expected to be billed and collected in the normal course of business. The balance of the Company’s accounts receivable is classified as current for amounts expected to be collected within 12 months and noncurrent for amounts to be collected beyond 12 months. The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets: September 30, 2022 December 31, 2021 Accounts receivable, current (1) $ 4,549.4 $ 4,499.4 Accounts receivable, noncurrent (2) 199.6 197.4 Total accounts receivable $ 4,749.0 $ 4,696.8 (1) Accounts receivable, current are presented within Accounts receivable, net of allowance for credit losses on the Consolidated Balance Sheets. (2) Accounts receivable, noncurrent are presented within Other assets on the Consolidated Balance Sheets. From time to time, the Company transfers certain accounts receivable, without recourse, to third-party financial companies as a method to reduce the Company’s credit exposure and accelerate cash collections. Such transfers are recognized as a sale and the related accounts receivable is derecognized from the Consolidated Balance Sheet upon receipt of the third-party financing company’s payment. During the nine months ended September 30, 2022 and 2021, the Company sold approximately $445 million and $104 million of accounts receivable, respectively. Contract Balances Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from customers. Contract assets represent revenue recognized on performance obligations satisfied or partially satisfied for which the Company has no unconditional right to consideration. 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 following table details information about the Company’s contract balances recognized on the Consolidated Balance Sheets: September 30, 2022 December 31, 2021 Contract assets (1) $ 274.2 $ 134.7 Contract liabilities (2)(3) $ 460.5 $ 423.3 (1) Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets. (2) Includes $23 million and $20 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021, respectively. (3) During the nine months ended September 30, 2022 and 2021, the Company recognized revenue of $223 million and $156 million, respectively, related to its contract liabilities that were included in the beginning balance of the respective periods. 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 September 30, 2022, related to non-cancelable 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 $ 49.6 $ 22.7 $ 9.3 $ 1.3 |
Inventory Financing Agreements
Inventory Financing Agreements | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Financing Agreements [Abstract] | |
Inventory Financing Agreements | Inventory Financing Agreements The Company has entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions, as described below. These amounts are classified separately as Accounts payable-inventory financing on the Consolidated Balance Sheets. The Company does not incur any interest expense associated with these agreements as balances are paid when they are due. Amounts included in Accounts payable-inventory financing are as follows: September 30, 2022 December 31, 2021 Revolving Loan inventory financing agreement (1) $ 434.6 $ 310.1 Other inventory financing agreements 44.1 138.2 Accounts payable-inventory financing $ 478.7 $ 448.3 (1) The revolving credit facility includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments The Company does not hold or issue derivative financial instruments for trading or speculative purposes. 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. For additional information, see Note 7 (Debt). The Company has interest rate cap agreements that entitle it to payments from the counterparty of the amount, if any, by which the 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 the nine months ended September 30, 2022, the Company did not enter into new interest rate cap agreements. As of September 30, 2022 and December 31, 2021, the Company had interest rate cap agreements with a fair value of $3 million and less than $1 million, respectively, which were classified within Other assets on the Consolidated Balance Sheets. The total notional amount of the interest rate cap agreements was $1.3 billion as of September 30, 2022 and December 31, 2021, which mature on December 31, 2022. The fair values of the Company’s interest rate cap agreements are classified as Level 2 in the fair value hierarchy. The valuation of the interest rate cap agreements is derived by using a discounted cash flow analysis on the expected cash receipts that would occur if variable interest rates rise above the strike rates of the caps. This analysis reflects the contractual terms of the interest rate cap agreements, including the period to maturity, and uses observable market-based inputs, including LIBOR curves and implied volatilities. The Company also incorporates insignificant credit valuation adjustments to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. The counterparty credit spreads are based on publicly available credit information obtained from a third-party credit data provider. Since inception, the total notional amount of $1.3 billion in interest rate cap agreements were designated as cash flow hedges. As a result of the prepayment on the senior unsecured term loan facility, the Company dedesignated a notional amount of $350 million, which did not result in a material impact to the Consolidated Financial Statements for the three and nine months ended September 30, 2022. For additional information on the prepayment, see Note 7 (Debt). The changes in the fair value of derivatives that qualify as cash flow hedges are recorded in Accumulated other comprehensive loss (“AOCL”) and are subsequently reclassified into Interest expense in the period when the hedged forecasted transaction affects earnings. The following table provides the activity in AOCL, net of tax, for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Change in fair value recorded to AOCL $ 0.7 $ — $ 2.1 $ — Reclassification from AOCL to Interest expense, net $ 1.0 $ 0.7 $ 2.6 $ 1.7 The Company expects to reclassify $1 million from AOCL to earnings within Interest expense, net within the next 12 months. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2022 As of December 31, 2021 Maturity Date Interest Rate Amount Interest Rate Amount Credit Facility Senior unsecured revolving loan facility December 2026 Variable $ 101.6 Variable $ 316.4 Term Loan Senior unsecured term loan facility December 2026 Variable 984.5 Variable 1,420.0 Unsecured Senior Notes Senior notes due 2024 December 2024 5.500 % 575.0 5.500 % 575.0 Senior notes due 2025 May 2025 4.125 % 600.0 4.125 % 600.0 Senior notes due 2028 April 2028 4.250 % 600.0 4.250 % 600.0 Senior notes due 2029 February 2029 3.250 % 700.0 3.250 % 700.0 Senior notes due 2026 December 2026 2.670 % 1,000.0 2.670 % 1,000.0 Senior notes due 2028 December 2028 3.276 % 500.0 3.276 % 500.0 Senior notes due 2031 December 2031 3.569 % 1,000.0 3.569 % 1,000.0 Total unsecured senior notes 4,975.0 4,975.0 Receivable financing liability 124.3 179.5 Other long-term obligations 12.2 13.6 Unamortized discounts and deferred financing fees (39.8) (46.0) Current maturities of long-term debt (57.8) (102.7) Total long-term debt $ 6,100.0 $ 6,755.8 As of September 30, 2022, the Company is in compliance with the covenants under its credit agreements and indentures. Credit Facility The Company has a variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”) from which it may draw tranches denominated in US dollars, British pounds or Euros. The interest rate is based on LIBOR plus a margin or an alternate base rate plus a margin, where the margin is based on the Company’s senior unsecured rating. The Revolving Loan Facility is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of September 30, 2022, the Company could have borrowed up to an additional $1.1 billion under the Revolving Loan Facility. As of September 30, 2022, the Revolving Loan Facility had less than $1 million of undrawn letters of credit and $429 million reserved for the floorplan sub-facility. Term Loan The senior unsecured term loan facility (the “Term Loan Facility”) has a variable interest rate, which has effectively been capped through the use of interest rate caps. The interest rate is based on LIBOR plus a margin, where the margin is determined by the Company’s senior unsecured credit rating. During the three months ended September 30, 2022, the Company prepaid $400 million on the Term Loan Facility without penalty. In total, the Company paid $436 million during the nine months ended September 30, 2022. As a result of the prepayment, no additional mandatory payments are required on the remaining principal amount until its maturity date. Unsecured Senior Notes The unsecured senior notes have a fixed interest rate, which is paid semi-annually. Receivable Financing As a result of the Sirius acquisition, the Company assumed liabilities related to receivable financing. Such amounts relate to certain accounts receivable transferred to third-party financial companies that did not qualify as a sale under the terms of the agreements. The proceeds from these arrangements are recognized as a liability and the associated accounts receivable remains on the Consolidated Balance Sheet until the liability is settled. The Company did not execute any transfers under these agreements during the nine months ended September 30, 2022. Fair Value The fair values of the unsecured senior notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets. The fair value of the Term Loan Facility was estimated using dealer quotes for identical liabilities in markets that are not considered active. The unsecured senior notes and Term Loan Facility were classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan Facility approximates fair value. 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 costs, were as follows: September 30, 2022 December 31, 2021 Fair value $ 5,494.7 $ 6,996.0 Carrying value 6,197.6 6,904.5 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $101 million and $84 million for the three months ended September 30, 2022 and 2021, respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 25.4% and 23.9% for the three months ended September 30, 2022 and 2021, respectively. Income tax expense was $279 million and $237 million for the nine months ended September 30, 2022 and 2021, respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 25.2% and 23.5% for the nine months ended September 30, 2022 and 2021, respectively. The effective tax rate for both the three and nine months ended September 30, 2022 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation. The effective tax rate for the three months ended September 30, 2021 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes, partially offset by excess tax benefits on equity-based compensation. The effective tax rate for the nine months ended September 30, 2021 differed from the US federal statutory rate of 21.0% primarily due to state and local income taxes and a discrete deferred tax expense as a result of an increase in the UK corporate tax rate effective in 2023, partially offset by excess tax benefits on equity-based compensation. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The numerator for both basic and diluted earnings per share is Net income. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic weighted-average shares outstanding 135.3 137.3 135.1 139.5 Effect of dilutive securities (1) 1.8 2.1 1.8 1.9 Diluted weighted-average shares outstanding (2) 137.1 139.4 136.9 141.4 (1) The dilutive effect of outstanding stock options, restricted stock units, 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 0.1 million potential common shares excluded from diluted weighted-average shares outstanding for both the three and nine months ended September 30, 2022 and 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, 2021. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to various legal proceedings that arise in the ordinary course of its business, which include commercial, intellectual property, employment, tort and other litigation matters. The Company is also subject to audit by federal, state, international, national, provincial and local authorities, and by various partners, group purchasing organizations and customers, including government agencies, relating to purchases and sales under various contracts. In addition, the Company is subject to indemnification claims under various contracts. From time to time, certain customers of the Company file voluntary petitions for reorganization or liquidation under the US bankruptcy laws or similar laws of the jurisdictions for the Company’s business activities outside of the US. In such cases, certain pre-petition payments received by the Company could be considered preference items and subject to return to the bankruptcy administrator. As of September 30, 2022, 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. A subsidiary of the Company received a Civil Investigative Demand (“CID”) dated September 20, 2021 from the Department of Justice (“DOJ”) in connection with a False Claims Act investigation. The DOJ requested information related to teaming agreements with original equipment manufacturers (“OEMs”) and the Company is cooperating with the DOJ. At this stage of the matter, the Company is unable to assess the probability of any outcome or the range of possible loss, if any. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s segment information reflects the way the chief operating decision maker uses internal reporting to evaluate business performance, allocate resources and manage operations. 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”). The Company has centralized logistics and headquarters functions that provide services to the segments. The logistics function includes purchasing, distribution and fulfillment services to support the Corporate, Small Business and Public segments. As a result, costs and intercompany charges associated with the logistics function are fully allocated to all of these segments based on a percent of Net sales. The centralized headquarters function provides services in areas such as accounting, information technology, marketing, legal and coworker services. Headquarters function costs that are not allocated to the segments are included under the heading of “Headquarters” in the tables below. Information about the Company’s segments is as follows: Corporate Small Business Public Other Headquarters Total Three Months Ended September 30, 2022 Net sales $ 2,577.8 $ 491.2 $ 2,424.3 $ 722.2 $ — $ 6,215.5 Operating income (loss) 203.3 47.0 234.0 32.3 (50.2) 466.4 Depreciation and amortization expense (30.8) (3.1) (11.9) (7.7) (22.1) (75.6) Three Months Ended September 30, 2021 Net sales $ 2,067.3 $ 467.1 $ 2,153.9 $ 611.7 $ — $ 5,300.0 Operating income (loss) 186.0 41.4 178.7 21.9 (41.6) 386.4 Depreciation and amortization expense (4.1) (0.9) (16.9) (8.5) (17.8) (48.2) Nine Months Ended September 30, 2022 Net sales $ 7,866.1 $ 1,515.2 $ 6,700.3 $ 2,228.8 $ — $ 18,310.4 Operating income (loss) 644.5 140.7 553.0 96.8 (146.4) 1,288.6 Depreciation and amortization expense (79.4) (6.4) (44.7) (24.2) (63.4) (218.1) Nine Months Ended September 30, 2021 Net sales $ 5,856.2 $ 1,382.7 $ 6,156.3 $ 1,888.7 $ — $ 15,283.9 Operating income (loss) 522.6 128.2 468.7 73.3 (113.1) 1,079.7 Depreciation and amortization expense (11.9) (2.5) (46.4) (25.7) (53.5) (140.0) Geographic Areas and Revenue Mix Three Months Ended September 30, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 2,570.8 $ 491.2 $ 2,424.3 $ 5.6 $ 5,491.9 Rest of World 7.0 — — 716.6 723.6 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Major Product and Services Hardware 1,958.1 399.5 1,921.4 533.7 4,812.7 Software 355.1 62.4 346.8 119.9 884.2 Services 245.8 24.0 151.1 66.0 486.9 Other (2) 18.8 5.3 5.0 2.6 31.7 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Sales by Channel Corporate 2,577.8 — — — 2,577.8 Small Business — 491.2 — — 491.2 Government — — 788.4 — 788.4 Education — — 1,021.1 — 1,021.1 Healthcare — — 614.8 — 614.8 Other — — — 722.2 722.2 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 2,216.3 438.4 2,189.4 641.2 5,485.3 Transferred at a point in time where CDW is agent 194.3 36.3 129.5 22.2 382.3 Transferred over time where CDW is principal 167.2 16.5 105.4 58.8 347.9 Total Net sales $ 2,577.8 $ 491.2 $ 2,424.3 $ 722.2 $ 6,215.5 (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. Three Months Ended September 30, 2021 Corporate Small Business Public Other Total Geography (1) United States $ 2,064.6 $ 467.1 $ 2,153.9 $ 5.4 $ 4,691.0 Rest of World 2.7 — — 606.3 609.0 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Major Product and Services Hardware 1,641.2 400.7 1,747.3 474.5 4,263.7 Software 279.3 50.2 312.9 75.3 717.7 Services 128.5 10.4 89.2 58.8 286.9 Other (2) 18.3 5.8 4.5 3.1 31.7 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Sales by Channel Corporate 2,067.3 — — — 2,067.3 Small Business — 467.1 — — 467.1 Government — — 568.8 — 568.8 Education — — 1,103.6 — 1,103.6 Healthcare — — 481.5 — 481.5 Other — — — 611.7 611.7 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,851.0 434.6 1,984.8 542.6 4,813.0 Transferred at a point in time where CDW is agent 135.6 27.8 109.1 16.3 288.8 Transferred over time where CDW is principal 80.7 4.7 60.0 52.8 198.2 Total Net sales $ 2,067.3 $ 467.1 $ 2,153.9 $ 611.7 $ 5,300.0 (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, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 7,843.0 $ 1,515.2 $ 6,700.3 $ 14.3 $ 16,072.8 Rest of World 23.1 — — 2,214.5 2,237.6 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Major Product and Services Hardware 5,931.0 1,262.7 5,364.8 1,658.2 14,216.7 Software 1,177.9 177.2 888.8 359.7 2,603.6 Services 700.0 58.9 432.6 202.5 1,394.0 Other (2) 57.2 16.4 14.1 8.4 96.1 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Sales by Channel Corporate 7,866.1 — — — 7,866.1 Small Business — 1,515.2 — — 1,515.2 Government — — 1,941.8 — 1,941.8 Education — — 2,965.2 — 2,965.2 Healthcare — — 1,793.3 — 1,793.3 Other — — — 2,228.8 2,228.8 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 6,833.4 1,374.6 6,062.1 1,980.9 16,251.0 Transferred at a point in time where CDW is agent 547.2 104.0 329.3 71.0 1,051.5 Transferred over time where CDW is principal 485.5 36.6 308.9 176.9 1,007.9 Total Net sales $ 7,866.1 $ 1,515.2 $ 6,700.3 $ 2,228.8 $ 18,310.4 (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, 2021 Corporate Small Business Public Other Total Geography (1) United States $ 5,844.3 $ 1,382.7 $ 6,156.3 $ 14.7 $ 13,398.0 Rest of World 11.9 — — 1,874.0 1,885.9 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Major Product and Services Hardware 4,648.6 1,185.3 5,180.5 1,445.9 12,460.3 Software 813.9 148.7 745.4 251.2 1,959.2 Services 342.0 31.9 217.2 181.3 772.4 Other (2) 51.7 16.8 13.2 10.3 92.0 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Sales by Channel Corporate 5,856.2 — — — 5,856.2 Small Business — 1,382.7 — — 1,382.7 Government — — 1,598.3 — 1,598.3 Education — — 3,159.0 — 3,159.0 Healthcare — — 1,399.0 — 1,399.0 Other — — — 1,888.7 1,888.7 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 5,267.9 1,288.2 5,764.2 1,670.4 13,990.7 Transferred at a point in time where CDW is agent 368.6 80.6 252.2 59.5 760.9 Transferred over time where CDW is principal 219.7 13.9 139.9 158.8 532.3 Total Net sales $ 5,856.2 $ 1,382.7 $ 6,156.3 $ 1,888.7 $ 15,283.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following tables present Net sales by major category for the three and nine months ended September 30, 2022 and 2021. Categories are based upon internal classifications. Three Months Ended September 30, 2022 2021 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 1,592.6 25.6 % $ 1,641.6 31.0 % Netcomm Products 721.0 11.6 501.7 9.5 Desktops 333.9 5.4 316.1 6.0 Video 441.4 7.1 424.0 8.0 Enterprise and Data Storage (Including Drives) 376.9 6.1 228.1 4.3 Other Hardware 1,346.9 21.7 1,152.2 21.7 Total Hardware (1) 4,812.7 77.5 4,263.7 80.5 Software (2) 884.2 14.2 717.7 13.5 Services (2) 486.9 7.8 286.9 5.4 Other (3) 31.7 0.5 31.7 0.6 Total Net sales $ 6,215.5 100.0 % $ 5,300.0 100.0 % Nine Months Ended September 30, 2022 2021 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 5,070.0 27.7 % $ 4,944.3 32.3 % Netcomm Products 1,912.6 10.4 1,442.2 9.4 Desktops 1,021.5 5.6 873.5 5.7 Video 1,453.9 7.9 1,161.7 7.6 Enterprise and Data Storage (Including Drives) 1,053.9 5.8 730.2 4.8 Other Hardware 3,704.8 20.2 3,308.4 21.6 Total Hardware 14,216.7 77.6 12,460.3 81.4 Software (2) 2,603.6 14.2 1,959.2 12.8 Services (2) 1,394.0 7.6 772.4 5.1 Other (3) 96.1 0.6 92.0 0.7 Total Net sales $ 18,310.4 100.0 % $ 15,283.9 100.0 % (1) Net sales by hardware category for the three months ended September 30, 2022 include reclassifications to address consistent presentation on a year-to-date basis. (2) Certain software and services revenues are recorded on a net basis as the Company is acting as an agent in the transaction. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits. (3) Includes items such as delivery charges to customers. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business CDW Corporation (“Parent”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of 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 broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience and security. Throughout this report, the terms the “Company” and “CDW” refer to Parent and its 100% owned subsidiaries. Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of the Company. CDW Finance Corporation is a Delaware corporation formed for the sole purpose of acting as co-issuer of certain debt obligations and does not hold any material assets or engage in any business activities or operations. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 (the “Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the US Securities and Exchange Commission (the “SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The presentation of the Consolidated Financial Statements requires the Company to make estimates and assumptions that affect reported amounts and related disclosures. 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. 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, 2021 (the “December 31, 2021 Consolidated Financial Statements”). The significant accounting policies and estimates used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2021 Consolidated Financial Statements. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation. |
Recent Accounting Pronouncements | In September 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. This ASU requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs and information about the obligations that are outstanding at the end of the reporting period. This disclosure requirement is intended to provide information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. The ASU is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the rollforward requirement, which is effective for fiscal years beginning after December 15, 2023. The Company plans to adopt the standard during the first quarter of 2023, except for the rollforward requirement, which will be adopted during the first quarter of 2024. The standard does not affect the Company's recognition, measurement or financial statement presentation of supplier finance program obligations on the Consolidated Financial Statements. The Company is currently evaluating the impact the ASU will have on its disclosures. |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Balances (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Accounts Receivable | The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets: September 30, 2022 December 31, 2021 Accounts receivable, current (1) $ 4,549.4 $ 4,499.4 Accounts receivable, noncurrent (2) 199.6 197.4 Total accounts receivable $ 4,749.0 $ 4,696.8 (1) Accounts receivable, current are presented within Accounts receivable, net of allowance for credit losses on the Consolidated Balance Sheets. (2) Accounts receivable, noncurrent are presented within Other assets on the Consolidated Balance Sheets. |
Schedule of Contract with Customer | The following table details information about the Company’s contract balances recognized on the Consolidated Balance Sheets: September 30, 2022 December 31, 2021 Contract assets (1) $ 274.2 $ 134.7 Contract liabilities (2)(3) $ 460.5 $ 423.3 (1) Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets. (2) Includes $23 million and $20 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021, respectively. (3) During the nine months ended September 30, 2022 and 2021, the Company recognized revenue of $223 million and $156 million, respectively, related to its contract liabilities that were included in the beginning balance of the respective periods. |
Schedule of Remaining Performance Obligations | The following table represents the total transaction price for the remaining performance obligations as of September 30, 2022, related to non-cancelable 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 $ 49.6 $ 22.7 $ 9.3 $ 1.3 |
Inventory Financing Agreements
Inventory Financing Agreements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Financing Agreements [Abstract] | |
Inventory Financing Agreements | Amounts included in Accounts payable-inventory financing are as follows: September 30, 2022 December 31, 2021 Revolving Loan inventory financing agreement (1) $ 434.6 $ 310.1 Other inventory financing agreements 44.1 138.2 Accounts payable-inventory financing $ 478.7 $ 448.3 (1) The revolving credit facility includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Financial Instruments [Abstract] | |
Schedule of Cash Flow Hedges Included in AOCL | The following table provides the activity in AOCL, net of tax, for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Change in fair value recorded to AOCL $ 0.7 $ — $ 2.1 $ — Reclassification from AOCL to Interest expense, net $ 1.0 $ 0.7 $ 2.6 $ 1.7 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of September 30, 2022 As of December 31, 2021 Maturity Date Interest Rate Amount Interest Rate Amount Credit Facility Senior unsecured revolving loan facility December 2026 Variable $ 101.6 Variable $ 316.4 Term Loan Senior unsecured term loan facility December 2026 Variable 984.5 Variable 1,420.0 Unsecured Senior Notes Senior notes due 2024 December 2024 5.500 % 575.0 5.500 % 575.0 Senior notes due 2025 May 2025 4.125 % 600.0 4.125 % 600.0 Senior notes due 2028 April 2028 4.250 % 600.0 4.250 % 600.0 Senior notes due 2029 February 2029 3.250 % 700.0 3.250 % 700.0 Senior notes due 2026 December 2026 2.670 % 1,000.0 2.670 % 1,000.0 Senior notes due 2028 December 2028 3.276 % 500.0 3.276 % 500.0 Senior notes due 2031 December 2031 3.569 % 1,000.0 3.569 % 1,000.0 Total unsecured senior notes 4,975.0 4,975.0 Receivable financing liability 124.3 179.5 Other long-term obligations 12.2 13.6 Unamortized discounts and deferred financing fees (39.8) (46.0) Current maturities of long-term debt (57.8) (102.7) Total long-term debt $ 6,100.0 $ 6,755.8 |
Carrying Value of Long-Term Debt | The approximate fair values and related carrying values of the Company’s long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing costs, were as follows: September 30, 2022 December 31, 2021 Fair value $ 5,494.7 $ 6,996.0 Carrying value 6,197.6 6,904.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic weighted-average shares outstanding 135.3 137.3 135.1 139.5 Effect of dilutive securities (1) 1.8 2.1 1.8 1.9 Diluted weighted-average shares outstanding (2) 137.1 139.4 136.9 141.4 (1) The dilutive effect of outstanding stock options, restricted stock units, 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 0.1 million potential common shares excluded from diluted weighted-average shares outstanding for both the three and nine months ended September 30, 2022 and 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, 2021. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company’s segments is as follows: Corporate Small Business Public Other Headquarters Total Three Months Ended September 30, 2022 Net sales $ 2,577.8 $ 491.2 $ 2,424.3 $ 722.2 $ — $ 6,215.5 Operating income (loss) 203.3 47.0 234.0 32.3 (50.2) 466.4 Depreciation and amortization expense (30.8) (3.1) (11.9) (7.7) (22.1) (75.6) Three Months Ended September 30, 2021 Net sales $ 2,067.3 $ 467.1 $ 2,153.9 $ 611.7 $ — $ 5,300.0 Operating income (loss) 186.0 41.4 178.7 21.9 (41.6) 386.4 Depreciation and amortization expense (4.1) (0.9) (16.9) (8.5) (17.8) (48.2) Nine Months Ended September 30, 2022 Net sales $ 7,866.1 $ 1,515.2 $ 6,700.3 $ 2,228.8 $ — $ 18,310.4 Operating income (loss) 644.5 140.7 553.0 96.8 (146.4) 1,288.6 Depreciation and amortization expense (79.4) (6.4) (44.7) (24.2) (63.4) (218.1) Nine Months Ended September 30, 2021 Net sales $ 5,856.2 $ 1,382.7 $ 6,156.3 $ 1,888.7 $ — $ 15,283.9 Operating income (loss) 522.6 128.2 468.7 73.3 (113.1) 1,079.7 Depreciation and amortization expense (11.9) (2.5) (46.4) (25.7) (53.5) (140.0) |
Disaggregation of Revenue | Geographic Areas and Revenue Mix Three Months Ended September 30, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 2,570.8 $ 491.2 $ 2,424.3 $ 5.6 $ 5,491.9 Rest of World 7.0 — — 716.6 723.6 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Major Product and Services Hardware 1,958.1 399.5 1,921.4 533.7 4,812.7 Software 355.1 62.4 346.8 119.9 884.2 Services 245.8 24.0 151.1 66.0 486.9 Other (2) 18.8 5.3 5.0 2.6 31.7 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Sales by Channel Corporate 2,577.8 — — — 2,577.8 Small Business — 491.2 — — 491.2 Government — — 788.4 — 788.4 Education — — 1,021.1 — 1,021.1 Healthcare — — 614.8 — 614.8 Other — — — 722.2 722.2 Total Net sales 2,577.8 491.2 2,424.3 722.2 6,215.5 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 2,216.3 438.4 2,189.4 641.2 5,485.3 Transferred at a point in time where CDW is agent 194.3 36.3 129.5 22.2 382.3 Transferred over time where CDW is principal 167.2 16.5 105.4 58.8 347.9 Total Net sales $ 2,577.8 $ 491.2 $ 2,424.3 $ 722.2 $ 6,215.5 (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. Three Months Ended September 30, 2021 Corporate Small Business Public Other Total Geography (1) United States $ 2,064.6 $ 467.1 $ 2,153.9 $ 5.4 $ 4,691.0 Rest of World 2.7 — — 606.3 609.0 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Major Product and Services Hardware 1,641.2 400.7 1,747.3 474.5 4,263.7 Software 279.3 50.2 312.9 75.3 717.7 Services 128.5 10.4 89.2 58.8 286.9 Other (2) 18.3 5.8 4.5 3.1 31.7 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Sales by Channel Corporate 2,067.3 — — — 2,067.3 Small Business — 467.1 — — 467.1 Government — — 568.8 — 568.8 Education — — 1,103.6 — 1,103.6 Healthcare — — 481.5 — 481.5 Other — — — 611.7 611.7 Total Net sales 2,067.3 467.1 2,153.9 611.7 5,300.0 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,851.0 434.6 1,984.8 542.6 4,813.0 Transferred at a point in time where CDW is agent 135.6 27.8 109.1 16.3 288.8 Transferred over time where CDW is principal 80.7 4.7 60.0 52.8 198.2 Total Net sales $ 2,067.3 $ 467.1 $ 2,153.9 $ 611.7 $ 5,300.0 (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, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 7,843.0 $ 1,515.2 $ 6,700.3 $ 14.3 $ 16,072.8 Rest of World 23.1 — — 2,214.5 2,237.6 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Major Product and Services Hardware 5,931.0 1,262.7 5,364.8 1,658.2 14,216.7 Software 1,177.9 177.2 888.8 359.7 2,603.6 Services 700.0 58.9 432.6 202.5 1,394.0 Other (2) 57.2 16.4 14.1 8.4 96.1 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Sales by Channel Corporate 7,866.1 — — — 7,866.1 Small Business — 1,515.2 — — 1,515.2 Government — — 1,941.8 — 1,941.8 Education — — 2,965.2 — 2,965.2 Healthcare — — 1,793.3 — 1,793.3 Other — — — 2,228.8 2,228.8 Total Net sales 7,866.1 1,515.2 6,700.3 2,228.8 18,310.4 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 6,833.4 1,374.6 6,062.1 1,980.9 16,251.0 Transferred at a point in time where CDW is agent 547.2 104.0 329.3 71.0 1,051.5 Transferred over time where CDW is principal 485.5 36.6 308.9 176.9 1,007.9 Total Net sales $ 7,866.1 $ 1,515.2 $ 6,700.3 $ 2,228.8 $ 18,310.4 (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, 2021 Corporate Small Business Public Other Total Geography (1) United States $ 5,844.3 $ 1,382.7 $ 6,156.3 $ 14.7 $ 13,398.0 Rest of World 11.9 — — 1,874.0 1,885.9 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Major Product and Services Hardware 4,648.6 1,185.3 5,180.5 1,445.9 12,460.3 Software 813.9 148.7 745.4 251.2 1,959.2 Services 342.0 31.9 217.2 181.3 772.4 Other (2) 51.7 16.8 13.2 10.3 92.0 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Sales by Channel Corporate 5,856.2 — — — 5,856.2 Small Business — 1,382.7 — — 1,382.7 Government — — 1,598.3 — 1,598.3 Education — — 3,159.0 — 3,159.0 Healthcare — — 1,399.0 — 1,399.0 Other — — — 1,888.7 1,888.7 Total Net sales 5,856.2 1,382.7 6,156.3 1,888.7 15,283.9 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 5,267.9 1,288.2 5,764.2 1,670.4 13,990.7 Transferred at a point in time where CDW is agent 368.6 80.6 252.2 59.5 760.9 Transferred over time where CDW is principal 219.7 13.9 139.9 158.8 532.3 Total Net sales $ 5,856.2 $ 1,382.7 $ 6,156.3 $ 1,888.7 $ 15,283.9 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following tables present Net sales by major category for the three and nine months ended September 30, 2022 and 2021. Categories are based upon internal classifications. Three Months Ended September 30, 2022 2021 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 1,592.6 25.6 % $ 1,641.6 31.0 % Netcomm Products 721.0 11.6 501.7 9.5 Desktops 333.9 5.4 316.1 6.0 Video 441.4 7.1 424.0 8.0 Enterprise and Data Storage (Including Drives) 376.9 6.1 228.1 4.3 Other Hardware 1,346.9 21.7 1,152.2 21.7 Total Hardware (1) 4,812.7 77.5 4,263.7 80.5 Software (2) 884.2 14.2 717.7 13.5 Services (2) 486.9 7.8 286.9 5.4 Other (3) 31.7 0.5 31.7 0.6 Total Net sales $ 6,215.5 100.0 % $ 5,300.0 100.0 % Nine Months Ended September 30, 2022 2021 Net Sales Percentage Net Sales Percentage Notebooks/Mobile Devices $ 5,070.0 27.7 % $ 4,944.3 32.3 % Netcomm Products 1,912.6 10.4 1,442.2 9.4 Desktops 1,021.5 5.6 873.5 5.7 Video 1,453.9 7.9 1,161.7 7.6 Enterprise and Data Storage (Including Drives) 1,053.9 5.8 730.2 4.8 Other Hardware 3,704.8 20.2 3,308.4 21.6 Total Hardware 14,216.7 77.6 12,460.3 81.4 Software (2) 2,603.6 14.2 1,959.2 12.8 Services (2) 1,394.0 7.6 772.4 5.1 Other (3) 96.1 0.6 92.0 0.7 Total Net sales $ 18,310.4 100.0 % $ 15,283.9 100.0 % (1) Net sales by hardware category for the three months ended September 30, 2022 include reclassifications to address consistent presentation on a year-to-date basis. (2) Certain software and services revenues are recorded on a net basis as the Company is acting as an agent in the transaction. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits. (3) Includes items such as delivery charges to customers. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | Sep. 30, 2022 subsidiary |
Accounting Policies [Abstract] | |
Number of owned subsidiaries | 2 |
Acquisitions (Details)
Acquisitions (Details) $ in Billions | Dec. 01, 2021 USD ($) |
Sirius Computer Solutions Inc | |
Business Acquisition [Line Items] | |
Purchase price | $ 2.4 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Balances - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, current | $ 4,549.4 | $ 4,499.4 | |
Accounts receivable, noncurrent | 199.6 | 197.4 | |
Total accounts receivable | 4,749 | $ 4,696.8 | |
Accounts receivable, sold | $ 445 | $ 104 |
Accounts Receivable and Contr_4
Accounts Receivable and Contract Balances - Schedule of Contract with Customer (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract assets | $ 274.2 | $ 134.7 | |
Contract liabilities | 460.5 | 423.3 | |
Revenue recognized from contract with customer | 223 | $ 156 | |
Long-term Contract with Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract liabilities | $ 23 | $ 20 |
Accounts Receivable and Contr_5
Accounts Receivable and Contract Balances - Schedule of Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 49.6 |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 22.7 |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 9.3 |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1.3 |
Remaining performance obligations, expected timing of satisfaction, period |
Inventory Financing Agreement_2
Inventory Financing Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Financing Agreements [Line Items] | ||
Accounts payable-inventory financing | $ 478.7 | $ 448.3 |
Accounts Payable, Inventory Financing | ||
Inventory Financing Agreements [Line Items] | ||
Revolving Loan inventory financing agreement | 434.6 | 310.1 |
Other inventory financing agreements | $ 44.1 | $ 138.2 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Interest rate cap, fair value | $ 3 | $ 3 | $ 1 | ||
Dedesignated notional amount | 350 | 350 | |||
Unrealized (loss) gain from hedge accounting | (0.7) | $ 0 | (2.1) | $ 0 | |
Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Notional amount | 1,300 | 1,300 | $ 1,300 | ||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Unrealized (loss) gain from hedge accounting | 0.7 | 0 | 2.1 | 0 | |
Amount expected to be reclassified from AOCL to interest expense in next twelve months | 1 | ||||
Derivative | |||||
Derivative [Line Items] | |||||
Interest income (expense) reclassified into earnings | $ 1 | $ 0.7 | $ 2.6 | $ 1.7 |
Debt - Debt Balances and Intere
Debt - Debt Balances and Interest Rates (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,197.6 | $ 6,904.5 |
Unamortized discounts and deferred financing fees | (39.8) | (46) |
Current maturities of long-term debt | (57.8) | (102.7) |
Total long-term debt | 6,100 | 6,755.8 |
Senior unsecured revolving loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 101.6 | 316.4 |
Senior unsecured term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 984.5 | 1,420 |
Total unsecured senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,975 | $ 4,975 |
Senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 5.50% | 5.50% |
Long-term debt | $ 575 | $ 575 |
Senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 4.125% | 4.125% |
Long-term debt | $ 600 | $ 600 |
Senior notes due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 4.25% | 4.25% |
Long-term debt | $ 600 | $ 600 |
Senior notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 3.25% | 3.25% |
Long-term debt | $ 700 | $ 700 |
Senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 2.67% | 2.67% |
Long-term debt | $ 1,000 | $ 1,000 |
Senior notes due 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 3.276% | 3.276% |
Long-term debt | $ 500 | $ 500 |
Senior notes due 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate in effect | 3.569% | 3.569% |
Long-term debt | $ 1,000 | $ 1,000 |
Receivable financing liability | ||
Debt Instrument [Line Items] | ||
Long-term debt | 124.3 | 179.5 |
Other long-term obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 12.2 | $ 13.6 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Repayments of debt | $ 435.5 | $ 11.2 | |
Senior unsecured revolving loan facility | |||
Debt Instrument [Line Items] | |||
Additional borrowing capacity | $ 1,100 | 1,100 | |
Undrawn letters of credit | 1 | 1 | |
Senior unsecured revolving loan facility | Accounts Payable, Inventory Financing | |||
Debt Instrument [Line Items] | |||
Amount owed under Revolving loan financing agreement | 429 | 429 | |
Senior unsecured term loan facility | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 400 | $ 436 |
Debt - Fair Value of Long-Term
Debt - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 6,197.6 | $ 6,904.5 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 5,494.7 | $ 6,996 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ (101.2) | $ (83.8) | $ (279.3) | $ (237.2) |
Effective income tax rate reconciliation, percent | 25.40% | 23.90% | 25.20% | 23.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding (in shares) | 135.3 | 137.3 | 135.1 | 139.5 |
Effect of dilutive securities (in shares) | 1.8 | 2.1 | 1.8 | 1.9 |
Diluted weighted-average shares outstanding (in shares) | 137.1 | 139.4 | 136.9 | 141.4 |
Anti-dilutive shares (fewer than) (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment employee | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Number of operating segments which do not meet reportable unit quantitative threshold | segment | 2 |
Minimum | Corporate | |
Segment Reporting Information [Line Items] | |
Customer segments, customer employee headcount | employee | 250 |
Maximum | Small Business | |
Segment Reporting Information [Line Items] | |
Customer segments, customer employee headcount | employee | 250 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 6,215.5 | $ 5,300 | $ 18,310.4 | $ 15,283.9 |
Income (loss) from operations | 466.4 | 386.4 | 1,288.6 | 1,079.7 |
Depreciation and amortization expense | (75.6) | (48.2) | (218.1) | (140) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,577.8 | 2,067.3 | 7,866.1 | 5,856.2 |
Small Business | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
Public | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,424.3 | 2,153.9 | 6,700.3 | 6,156.3 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 722.2 | 611.7 | 2,228.8 | 1,888.7 |
Operating Segments | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,577.8 | 2,067.3 | 7,866.1 | 5,856.2 |
Income (loss) from operations | 203.3 | 186 | 644.5 | 522.6 |
Depreciation and amortization expense | (30.8) | (4.1) | (79.4) | (11.9) |
Operating Segments | Small Business | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
Income (loss) from operations | 47 | 41.4 | 140.7 | 128.2 |
Depreciation and amortization expense | (3.1) | (0.9) | (6.4) | (2.5) |
Operating Segments | Public | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,424.3 | 2,153.9 | 6,700.3 | 6,156.3 |
Income (loss) from operations | 234 | 178.7 | 553 | 468.7 |
Depreciation and amortization expense | (11.9) | (16.9) | (44.7) | (46.4) |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 722.2 | 611.7 | 2,228.8 | 1,888.7 |
Income (loss) from operations | 32.3 | 21.9 | 96.8 | 73.3 |
Depreciation and amortization expense | (7.7) | (8.5) | (24.2) | (25.7) |
Headquarters | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Income (loss) from operations | (50.2) | (41.6) | (146.4) | (113.1) |
Depreciation and amortization expense | $ (22.1) | $ (17.8) | $ (63.4) | $ (53.5) |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 6,215.5 | $ 5,300 | $ 18,310.4 | $ 15,283.9 |
Percentage of Total Net Sales | 100% | 100% | 100% | 100% |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,577.8 | $ 2,067.3 | $ 7,866.1 | $ 5,856.2 |
Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,424.3 | 2,153.9 | 6,700.3 | 6,156.3 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 722.2 | 611.7 | 2,228.8 | 1,888.7 |
Transferred at a point in time where CDW is principal | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,485.3 | 4,813 | 16,251 | 13,990.7 |
Transferred at a point in time where CDW is principal | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,216.3 | 1,851 | 6,833.4 | 5,267.9 |
Transferred at a point in time where CDW is principal | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 438.4 | 434.6 | 1,374.6 | 1,288.2 |
Transferred at a point in time where CDW is principal | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,189.4 | 1,984.8 | 6,062.1 | 5,764.2 |
Transferred at a point in time where CDW is principal | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 641.2 | 542.6 | 1,980.9 | 1,670.4 |
Transferred at a point in time where CDW is agent | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 382.3 | 288.8 | 1,051.5 | 760.9 |
Transferred at a point in time where CDW is agent | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 194.3 | 135.6 | 547.2 | 368.6 |
Transferred at a point in time where CDW is agent | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 36.3 | 27.8 | 104 | 80.6 |
Transferred at a point in time where CDW is agent | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 129.5 | 109.1 | 329.3 | 252.2 |
Transferred at a point in time where CDW is agent | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22.2 | 16.3 | 71 | 59.5 |
Transferred over time where CDW is principal | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 347.9 | 198.2 | 1,007.9 | 532.3 |
Transferred over time where CDW is principal | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 167.2 | 80.7 | 485.5 | 219.7 |
Transferred over time where CDW is principal | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16.5 | 4.7 | 36.6 | 13.9 |
Transferred over time where CDW is principal | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 105.4 | 60 | 308.9 | 139.9 |
Transferred over time where CDW is principal | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 58.8 | 52.8 | 176.9 | 158.8 |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,577.8 | 2,067.3 | 7,866.1 | 5,856.2 |
Corporate | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,577.8 | 2,067.3 | 7,866.1 | 5,856.2 |
Corporate | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
Small Business | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
Small Business | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Small Business | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 788.4 | 568.8 | 1,941.8 | 1,598.3 |
Government | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Government | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 788.4 | 568.8 | 1,941.8 | 1,598.3 |
Government | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,021.1 | 1,103.6 | 2,965.2 | 3,159 |
Education | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Education | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,021.1 | 1,103.6 | 2,965.2 | 3,159 |
Education | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 614.8 | 481.5 | 1,793.3 | 1,399 |
Healthcare | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Healthcare | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 614.8 | 481.5 | 1,793.3 | 1,399 |
Healthcare | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 722.2 | 611.7 | 2,228.8 | 1,888.7 |
Other | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 722.2 | 611.7 | 2,228.8 | 1,888.7 |
Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,812.7 | $ 4,263.7 | $ 14,216.7 | $ 12,460.3 |
Percentage of Total Net Sales | 77.50% | 80.50% | 77.60% | 81.40% |
Hardware | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,958.1 | $ 1,641.2 | $ 5,931 | $ 4,648.6 |
Hardware | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 399.5 | 400.7 | 1,262.7 | 1,185.3 |
Hardware | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,921.4 | 1,747.3 | 5,364.8 | 5,180.5 |
Hardware | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 533.7 | 474.5 | 1,658.2 | 1,445.9 |
Notebooks/Mobile Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,592.6 | $ 1,641.6 | $ 5,070 | $ 4,944.3 |
Percentage of Total Net Sales | 25.60% | 31% | 27.70% | 32.30% |
Netcomm Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 721 | $ 501.7 | $ 1,912.6 | $ 1,442.2 |
Percentage of Total Net Sales | 11.60% | 9.50% | 10.40% | 9.40% |
Desktops | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 333.9 | $ 316.1 | $ 1,021.5 | $ 873.5 |
Percentage of Total Net Sales | 5.40% | 6% | 5.60% | 5.70% |
Video | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 441.4 | $ 424 | $ 1,453.9 | $ 1,161.7 |
Percentage of Total Net Sales | 7.10% | 8% | 7.90% | 7.60% |
Enterprise and Data Storage (Including Drives) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 376.9 | $ 228.1 | $ 1,053.9 | $ 730.2 |
Percentage of Total Net Sales | 6.10% | 4.30% | 5.80% | 4.80% |
Other Hardware | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,346.9 | $ 1,152.2 | $ 3,704.8 | $ 3,308.4 |
Percentage of Total Net Sales | 21.70% | 21.70% | 20.20% | 21.60% |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 884.2 | $ 717.7 | $ 2,603.6 | $ 1,959.2 |
Percentage of Total Net Sales | 14.20% | 13.50% | 14.20% | 12.80% |
Software | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 355.1 | $ 279.3 | $ 1,177.9 | $ 813.9 |
Software | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 62.4 | 50.2 | 177.2 | 148.7 |
Software | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 346.8 | 312.9 | 888.8 | 745.4 |
Software | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 119.9 | 75.3 | 359.7 | 251.2 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 486.9 | $ 286.9 | $ 1,394 | $ 772.4 |
Percentage of Total Net Sales | 7.80% | 5.40% | 7.60% | 5.10% |
Services | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 245.8 | $ 128.5 | $ 700 | $ 342 |
Services | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 24 | 10.4 | 58.9 | 31.9 |
Services | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 151.1 | 89.2 | 432.6 | 217.2 |
Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 66 | 58.8 | 202.5 | 181.3 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 31.7 | $ 31.7 | $ 96.1 | $ 92 |
Percentage of Total Net Sales | 0.50% | 0.60% | 0.60% | 0.70% |
Other | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 18.8 | $ 18.3 | $ 57.2 | $ 51.7 |
Other | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5.3 | 5.8 | 16.4 | 16.8 |
Other | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5 | 4.5 | 14.1 | 13.2 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2.6 | 3.1 | 8.4 | 10.3 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,491.9 | 4,691 | 16,072.8 | 13,398 |
United States | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,570.8 | 2,064.6 | 7,843 | 5,844.3 |
United States | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 491.2 | 467.1 | 1,515.2 | 1,382.7 |
United States | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,424.3 | 2,153.9 | 6,700.3 | 6,156.3 |
United States | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5.6 | 5.4 | 14.3 | 14.7 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 723.6 | 609 | 2,237.6 | 1,885.9 |
Rest of World | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7 | 2.7 | 23.1 | 11.9 |
Rest of World | Small Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Rest of World | Public | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Rest of World | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 716.6 | $ 606.3 | $ 2,214.5 | $ 1,874 |
Uncategorized Items - cdw-20220
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2019-12 [Member] |