Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | CDW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,786,680 | |
Entity Central Index Key | 0001402057 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 279.4 | $ 315.2 |
Accounts receivable, net of allowance for credit losses of $27.4 and $25.7, respectively | 4,262.3 | 4,461.3 |
Merchandise inventory | 781.1 | 800.2 |
Miscellaneous receivables | 469.4 | 489.1 |
Prepaid expenses and other | 487.7 | 498.2 |
Total current assets | 6,279.9 | 6,564 |
Operating lease right-of-use assets | 145.7 | 149.2 |
Property and equipment, net | 187.4 | 188.8 |
Goodwill | 4,365.5 | 4,342.7 |
Other intangible assets, net | 1,455 | 1,490.7 |
Other assets | 334.6 | 396.1 |
Total Assets | 12,768.1 | 13,131.5 |
Current liabilities: | ||
Accounts payable-trade | 2,644 | 2,821.3 |
Accounts payable-inventory financing | 532.2 | 519 |
Current maturities of long-term debt | 45.7 | 56.3 |
Contract liabilities | 495.7 | 485.5 |
Accrued expenses and other current liabilities: | ||
Compensation | 287.8 | 377.8 |
Advertising | 126.2 | 130.5 |
Sales and income taxes | 130.1 | 73.5 |
Other | 516.2 | 483.2 |
Total current liabilities | 4,777.9 | 4,947.1 |
Long-term liabilities: | ||
Debt | 5,749.9 | 5,866.4 |
Deferred income taxes | 193 | 203.4 |
Operating lease liabilities | 171 | 175.2 |
Other liabilities | 307.4 | 336.1 |
Total long-term liabilities | 6,421.3 | 6,581.1 |
Commitments and contingencies (Note 8) | ||
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; 135.0 and 135.5 shares outstanding, respectively | 1.4 | 1.4 |
Paid-in capital | 3,557.3 | 3,518.1 |
Accumulated deficit | (1,847) | (1,763.8) |
Accumulated other comprehensive loss | (142.8) | (152.4) |
Total stockholders’ equity | 1,568.9 | 1,603.3 |
Total Liabilities and Stockholders’ Equity | $ 12,768.1 | $ 13,131.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss, current | $ 27.4 | $ 25.7 |
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) | 135,000,000 | 135,500,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 5,103.1 | $ 5,949.1 |
Cost of sales | 4,013.7 | 4,845 |
Gross profit | 1,089.4 | 1,104.1 |
Selling and administrative expenses | 734.1 | 717.2 |
Operating income | 355.3 | 386.9 |
Interest expense, net | (57.7) | (56) |
Other expense, net | (1.3) | (0.5) |
Income before income taxes | 296.3 | 330.4 |
Income tax expense | (66.2) | (80.2) |
Net income | $ 230.1 | $ 250.2 |
Net income per common share: | ||
Basic (in dollars per share) | $ 1.70 | $ 1.85 |
Diluted (in dollars per share) | $ 1.68 | $ 1.83 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 135.6 | 134.9 |
Diluted (in shares) | 137.3 | 136.7 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 230.1 | $ 250.2 |
Other comprehensive income: | ||
Unrealized gain from cash flow hedge, net of tax | 0 | 0.4 |
Reclassification of cash flow hedge to net income, net of tax | 0 | 0.8 |
Foreign currency translation, net of tax | 9.6 | (9.9) |
Other comprehensive income (loss) | 9.6 | (8.7) |
Comprehensive income | $ 239.7 | $ 241.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 230.1 | $ 250.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 70.7 | 71.4 |
Equity-based compensation expense | 20.8 | 21.1 |
Deferred income taxes | (10.9) | (5) |
Provision for credit losses | 6.2 | 1.7 |
Other | 3.4 | 4.8 |
Changes in assets and liabilities: | ||
Accounts receivable | 208.9 | (125) |
Merchandise inventory | 22 | (130.3) |
Other assets | 102.5 | 24.3 |
Accounts payable-trade | (248.7) | 87.8 |
Other liabilities | (39.6) | 179.8 |
Net cash provided by operating activities | 365.4 | 380.8 |
Cash flows from investing activities: | ||
Capital expenditures | (31.7) | (41.3) |
Acquisitions of businesses, net of cash acquired | (22.5) | 0 |
Net cash used in investing activities | (54.2) | (41.3) |
Cash flows from financing activities: | ||
Proceeds from borrowings under revolving credit facility | 0 | 702.3 |
Repayments of borrowings under revolving credit facility | (49.1) | (895.2) |
Repayments of long-term debt | (50) | (35.5) |
Repayments of receivable financing liability | (31.5) | (28.7) |
Net change in accounts payable-inventory financing | 77.6 | 126.7 |
Repurchases of common stock | (200) | 0 |
Proceeds from stock option exercises | 12.8 | 8.3 |
Payment of incentive compensation plan withholding taxes | (31.6) | (20.4) |
Dividend payments | (79.9) | (67.5) |
Other | 3.5 | 1.9 |
Net cash used in financing activities | (348.2) | (208.1) |
Effect of exchange rate changes on cash and cash equivalents | 1.2 | (2.6) |
Net (decrease) increase in cash and cash equivalents | (35.8) | 128.8 |
Cash and cash equivalents—beginning of period | 315.2 | 258.1 |
Cash and cash equivalents—end of period | 279.4 | 386.9 |
Supplementary disclosure of cash flow information: | ||
Interest paid | (24.9) | (17.5) |
Income taxes paid, net | $ 21.5 | $ (11.5) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2021 | 134.8 | ||||
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 | 250.2 | 250.2 | |||
Equity-based compensation expense | 21.1 | 21.1 | |||
Stock option exercises (in shares) | 0.3 | ||||
Stock option exercises | 8.3 | $ 0.1 | 8.2 | ||
Coworker Stock Purchase Plan | 4.4 | 4.4 | |||
Dividends paid | (67.5) | 0.5 | (68) | ||
Incentive compensation plan stock withheld for taxes | (20.4) | (20.4) | |||
Unrealized gain from hedge accounting | 0.4 | 0.4 | |||
Reclassification of cash flow hedge to net income | 0.8 | 0.8 | |||
Foreign currency translation and other | (9.9) | (9.9) | |||
Ending balance (in shares) at Mar. 31, 2022 | 135.1 | ||||
Ending balance at Mar. 31, 2022 | 893.1 | $ 1.4 | 3,403.7 | (2,408.9) | (103.1) |
Beginning balance (in shares) at Dec. 31, 2022 | 135.5 | ||||
Beginning balance at Dec. 31, 2022 | 1,603.3 | $ 1.4 | 3,518.1 | (1,763.8) | (152.4) |
Shareholders' Equity (Deficit) [Roll Forward] | |||||
Net income | 230.1 | 230.1 | |||
Equity-based compensation expense | 20.8 | 20.8 | |||
Stock option exercises (in shares) | 0.5 | ||||
Stock option exercises | 12.8 | 12.8 | |||
Coworker Stock Purchase Plan | 5 | 5 | |||
Repurchases of common stock (in shares) | (1) | ||||
Repurchases of common stock | (200) | (200) | |||
Dividends paid | (79.9) | 0.6 | (80.5) | ||
Incentive compensation plan stock withheld for taxes | (31.6) | (31.6) | |||
Unrealized gain from hedge accounting | 0 | ||||
Reclassification of cash flow hedge to net income | 0 | ||||
Foreign currency translation and other | 8.4 | (1.2) | 9.6 | ||
Ending balance (in shares) at Mar. 31, 2023 | 135 | ||||
Ending balance at Mar. 31, 2023 | $ 1,568.9 | $ 1.4 | $ 3,557.3 | $ (1,847) | $ (142.8) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in dollars per share) | $ 0.59 | $ 0.50 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and for the three months ended March 31, 2023 and 2022 (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, 2022 (the “December 31, 2022 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, 2022 Consolidated Financial Statements. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Accounts Receivable and Contrac
Accounts Receivable and Contract Balances | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Accounts Receivable and Contract Balances | Accounts Receivable and Contract Balances Accounts Receivable The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets: March 31, 2023 December 31, 2022 Accounts receivable, current (1) $ 4,262.3 $ 4,461.3 Accounts receivable, noncurrent (2) 154.5 203.0 Total accounts receivable $ 4,416.8 $ 4,664.3 (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 payment from the third-party financing company. During the three months ended March 31, 2023 and 2022, the Company sold approximately $124 million and $170 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: March 31, 2023 December 31, 2022 Contract assets (1) $ 198.1 $ 242.1 Contract liabilities (2)(3) $ 540.6 $ 525.3 (1) Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets. (2) Includes $45 million and $40 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, respectively. (3) During the three months ended March 31, 2023 and 2022, the Company recognized revenue of $190 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 March 31, 2023 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 $ 50.6 $ 23.9 $ 10.0 $ 1.2 |
Inventory Financing Agreements
Inventory Financing Agreements | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Financing Agreements [Abstract] | |
Inventory Financing Agreements | Inventory Financing Agreements The Company has entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. Under these agreements, the Company receives extended payment terms and agrees to pay the financial institution a stated amount of confirmed invoices from its designated suppliers. The Company does not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. Additionally, the Company has no involvement in establishing the terms or conditions of the arrangements between its suppliers and the financial institution. The amounts outstanding under these agreements as of March 31, 2023 and December 31, 2022 were $532 million and $519 million, respectively, and are separately presented as Accounts payable-inventory financing on the Consolidated Balance Sheets. The majority of such outstanding amounts relates to a floorplan sub-facility that is incorporated in the Company’s Revolving Loan Facility (as defined below). A portion of the Company’s availability under the Revolving Loan Facility is reserved to cover the obligation to pay the financial institution. For additional information regarding the Revolving Loan Facility, see Note 5 (Debt). |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 31, 2023 As of December 31, 2022 Maturity Date Interest Rate Amount Interest Rate Amount Credit Facility Senior unsecured revolving loan facility December 2026 Variable $ 24.7 Variable $ 72.5 Term Loan Senior unsecured term loan facility December 2026 Variable 734.5 Variable 784.5 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 84.9 115.4 Other long-term obligations 10.8 11.6 Unamortized deferred financing fees (34.3) (36.3) Current maturities of long-term debt (45.7) (56.3) Total long-term debt $ 5,749.9 $ 5,866.4 As of March 31, 2023, 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 March 31, 2023, the Company could have borrowed up to an additional $1.1 billion under the Revolving Loan Facility. As of March 31, 2023, the Revolving Loan Facility had less than $1 million of undrawn letters of credit and $524 million reserved for the floorplan sub-facility. Term Loan The senior unsecured term loan facility (the “Term Loan Facility”) has a variable interest rate. 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 March 31, 2023, the Company prepaid $50 million on the Term Loan Facility without penalty. As a result of the prepayments made to date, no additional mandatory payments are required on the remaining principal amount until its maturity date on December 1, 2026. Unsecured Senior Notes The unsecured senior notes have a fixed interest rate, which is paid semi-annually. Receivable Financing The receivable financing liability relates to certain accounts receivable transferred to third-party financial institutions that did not qualify as a sale under the terms of the agreements. While the terms of such agreements are on a nonrecourse basis, the transfers of accounts receivable could not achieve certain criteria that would allow derecognition of the accounts receivable. 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 three months ended March 31, 2023. 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: March 31, 2023 December 31, 2022 Fair value $ 5,397.9 $ 5,412.6 Carrying value 5,829.9 5,959.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $66 million and $80 million for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 22.3% and 24.3% for the three months ended March 31, 2023 and 2022, respectively. The effective tax rate for both the three months ended March 31, 2023 and March 31, 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 Basic weighted-average shares outstanding 135.6 134.9 Effect of dilutive securities (1) 1.7 1.8 Diluted weighted-average shares outstanding (2) 137.3 136.7 (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 fewer than 0.2 million potential common shares excluded from diluted weighted-average shares outstanding for both the three months ended March 31, 2023 and 2022. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, 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 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 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 private sector business customers with more than 250 employees in the US, Small Business, primarily servicing private sector business customers with up to 250 employees in the US, 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 March 31, 2023 Net sales $ 2,203.7 $ 411.4 $ 1,812.8 $ 675.2 $ — $ 5,103.1 Operating income (loss) 193.3 41.5 127.5 36.5 (43.5) 355.3 Depreciation and amortization expense (22.8) (1.3) (16.2) (7.8) (22.6) (70.7) Three Months Ended March 31, 2022 Net sales $ 2,627.6 $ 524.0 $ 2,033.0 $ 764.5 $ — $ 5,949.1 Operating income (loss) 210.0 46.7 141.8 36.7 (48.3) 386.9 Depreciation and amortization expense (25.0) (1.4) (16.3) (8.4) (20.3) (71.4) Geographic Areas and Revenue Mix Three Months Ended March 31, 2023 Corporate Small Business Public Other Total Geography (1) United States $ 2,199.2 $ 409.6 $ 1,812.6 $ 8.5 $ 4,429.9 Rest of World 4.5 1.8 0.2 666.7 673.2 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Major Product and Services Hardware 1,519.4 334.7 1,362.5 471.6 3,688.2 Software 453.0 56.2 301.5 134.0 944.7 Services 215.5 15.7 144.4 66.5 442.1 Other (2) 15.8 4.8 4.4 3.1 28.1 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Sales by Channel Corporate 2,203.7 — — — 2,203.7 Small Business — 411.4 — — 411.4 Government — — 551.5 — 551.5 Education — — 665.7 — 665.7 Healthcare — — 595.6 — 595.6 Other — — — 675.2 675.2 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,861.4 365.3 1,608.6 590.5 4,425.8 Transferred at a point in time where CDW is agent 185.4 36.8 101.5 28.4 352.1 Transferred over time where CDW is principal 156.9 9.3 102.7 56.3 325.2 Total Net sales $ 2,203.7 $ 411.4 $ 1,812.8 $ 675.2 $ 5,103.1 (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 March 31, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 2,616.8 $ 524.0 $ 2,033.0 $ 4.6 $ 5,178.4 Rest of World 10.8 — — 759.9 770.7 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Major Product and Services Hardware 1,983.6 443.5 1,646.3 608.7 4,682.1 Software 399.8 59.8 253.2 85.6 798.4 Services 225.3 15.1 129.2 67.9 437.5 Other (2) 18.9 5.6 4.3 2.3 31.1 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Sales by Channel Corporate 2,627.6 — — — 2,627.6 Small Business — 524.0 — — 524.0 Government — — 543.9 — 543.9 Education — — 902.8 — 902.8 Healthcare — — 586.3 — 586.3 Other — — — 764.5 764.5 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 2,291.2 480.0 1,840.3 677.1 5,288.6 Transferred at a point in time where CDW is agent 180.6 34.3 96.3 29.5 340.7 Transferred over time where CDW is principal 155.8 9.7 96.4 57.9 319.8 Total Net sales $ 2,627.6 $ 524.0 $ 2,033.0 $ 764.5 $ 5,949.1 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following table presents Net sales by major category for the three months ended March 31, 2023 and 2022. Categories are based upon internal classifications. Three Months Ended March 31, 2023 2022 Net Sales Percentage Net Sales Percentage Hardware: Notebooks/Mobile Devices $ 1,064.6 20.9 % $ 1,713.8 28.8 % Netcomm Products (3) 744.5 14.6 567.7 9.5 Desktops 257.9 5.1 337.5 5.7 Collaboration (3) 476.0 9.3 629.3 10.6 Data Storage and Servers (3) 541.9 10.6 620.8 10.4 Other Hardware (3) 603.3 11.8 813.0 13.7 Total Hardware 3,688.2 72.3 4,682.1 78.7 Software (1) 944.7 18.5 798.4 13.4 Services (1) 442.1 8.7 437.5 7.4 Other (2) 28.1 0.5 31.1 0.5 Total Net sales $ 5,103.1 100.0 % $ 5,949.1 100.0 % (1) 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. (2) Includes items such as delivery charges to customers. (3) Prior period amounts have been reclassified to conform with current period presentation. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and for the three months ended March 31, 2023 and 2022 (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. |
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 | Recent Accounting Pronouncements |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Balances (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Accounts receivable, current (1) $ 4,262.3 $ 4,461.3 Accounts receivable, noncurrent (2) 154.5 203.0 Total accounts receivable $ 4,416.8 $ 4,664.3 (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: March 31, 2023 December 31, 2022 Contract assets (1) $ 198.1 $ 242.1 Contract liabilities (2)(3) $ 540.6 $ 525.3 (1) Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets. (2) Includes $45 million and $40 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, respectively. (3) During the three months ended March 31, 2023 and 2022, the Company recognized revenue of $190 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 March 31, 2023 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 $ 50.6 $ 23.9 $ 10.0 $ 1.2 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of March 31, 2023 As of December 31, 2022 Maturity Date Interest Rate Amount Interest Rate Amount Credit Facility Senior unsecured revolving loan facility December 2026 Variable $ 24.7 Variable $ 72.5 Term Loan Senior unsecured term loan facility December 2026 Variable 734.5 Variable 784.5 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 84.9 115.4 Other long-term obligations 10.8 11.6 Unamortized deferred financing fees (34.3) (36.3) Current maturities of long-term debt (45.7) (56.3) Total long-term debt $ 5,749.9 $ 5,866.4 |
Schedule of 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: March 31, 2023 December 31, 2022 Fair value $ 5,397.9 $ 5,412.6 Carrying value 5,829.9 5,959.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 Basic weighted-average shares outstanding 135.6 134.9 Effect of dilutive securities (1) 1.7 1.8 Diluted weighted-average shares outstanding (2) 137.3 136.7 (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 fewer than 0.2 million potential common shares excluded from diluted weighted-average shares outstanding for both the three months ended March 31, 2023 and 2022. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect . |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Net sales $ 2,203.7 $ 411.4 $ 1,812.8 $ 675.2 $ — $ 5,103.1 Operating income (loss) 193.3 41.5 127.5 36.5 (43.5) 355.3 Depreciation and amortization expense (22.8) (1.3) (16.2) (7.8) (22.6) (70.7) Three Months Ended March 31, 2022 Net sales $ 2,627.6 $ 524.0 $ 2,033.0 $ 764.5 $ — $ 5,949.1 Operating income (loss) 210.0 46.7 141.8 36.7 (48.3) 386.9 Depreciation and amortization expense (25.0) (1.4) (16.3) (8.4) (20.3) (71.4) |
Schedule of Disaggregation of Revenue | Geographic Areas and Revenue Mix Three Months Ended March 31, 2023 Corporate Small Business Public Other Total Geography (1) United States $ 2,199.2 $ 409.6 $ 1,812.6 $ 8.5 $ 4,429.9 Rest of World 4.5 1.8 0.2 666.7 673.2 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Major Product and Services Hardware 1,519.4 334.7 1,362.5 471.6 3,688.2 Software 453.0 56.2 301.5 134.0 944.7 Services 215.5 15.7 144.4 66.5 442.1 Other (2) 15.8 4.8 4.4 3.1 28.1 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Sales by Channel Corporate 2,203.7 — — — 2,203.7 Small Business — 411.4 — — 411.4 Government — — 551.5 — 551.5 Education — — 665.7 — 665.7 Healthcare — — 595.6 — 595.6 Other — — — 675.2 675.2 Total Net sales 2,203.7 411.4 1,812.8 675.2 5,103.1 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 1,861.4 365.3 1,608.6 590.5 4,425.8 Transferred at a point in time where CDW is agent 185.4 36.8 101.5 28.4 352.1 Transferred over time where CDW is principal 156.9 9.3 102.7 56.3 325.2 Total Net sales $ 2,203.7 $ 411.4 $ 1,812.8 $ 675.2 $ 5,103.1 (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 March 31, 2022 Corporate Small Business Public Other Total Geography (1) United States $ 2,616.8 $ 524.0 $ 2,033.0 $ 4.6 $ 5,178.4 Rest of World 10.8 — — 759.9 770.7 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Major Product and Services Hardware 1,983.6 443.5 1,646.3 608.7 4,682.1 Software 399.8 59.8 253.2 85.6 798.4 Services 225.3 15.1 129.2 67.9 437.5 Other (2) 18.9 5.6 4.3 2.3 31.1 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Sales by Channel Corporate 2,627.6 — — — 2,627.6 Small Business — 524.0 — — 524.0 Government — — 543.9 — 543.9 Education — — 902.8 — 902.8 Healthcare — — 586.3 — 586.3 Other — — — 764.5 764.5 Total Net sales 2,627.6 524.0 2,033.0 764.5 5,949.1 Timing of Revenue Recognition Transferred at a point in time where CDW is principal 2,291.2 480.0 1,840.3 677.1 5,288.6 Transferred at a point in time where CDW is agent 180.6 34.3 96.3 29.5 340.7 Transferred over time where CDW is principal 155.8 9.7 96.4 57.9 319.8 Total Net sales $ 2,627.6 $ 524.0 $ 2,033.0 $ 764.5 $ 5,949.1 (1) Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address. (2) Includes items such as delivery charges to customers. The following table presents Net sales by major category for the three months ended March 31, 2023 and 2022. Categories are based upon internal classifications. Three Months Ended March 31, 2023 2022 Net Sales Percentage Net Sales Percentage Hardware: Notebooks/Mobile Devices $ 1,064.6 20.9 % $ 1,713.8 28.8 % Netcomm Products (3) 744.5 14.6 567.7 9.5 Desktops 257.9 5.1 337.5 5.7 Collaboration (3) 476.0 9.3 629.3 10.6 Data Storage and Servers (3) 541.9 10.6 620.8 10.4 Other Hardware (3) 603.3 11.8 813.0 13.7 Total Hardware 3,688.2 72.3 4,682.1 78.7 Software (1) 944.7 18.5 798.4 13.4 Services (1) 442.1 8.7 437.5 7.4 Other (2) 28.1 0.5 31.1 0.5 Total Net sales $ 5,103.1 100.0 % $ 5,949.1 100.0 % (1) 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. (2) Includes items such as delivery charges to customers. (3) Prior period amounts have been reclassified to conform with current period presentation. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | Mar. 31, 2023 subsidiary |
Accounting Policies [Abstract] | |
Number of owned subsidiaries | 2 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Balances - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, current | $ 4,262.3 | $ 4,461.3 |
Accounts receivable, noncurrent | 154.5 | 203 |
Total accounts receivable | $ 4,416.8 | $ 4,664.3 |
Accounts Receivable and Contr_4
Accounts Receivable and Contract Balances - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, sale | $ 124 | $ 170 |
Accounts Receivable and Contr_5
Accounts Receivable and Contract Balances - Schedule of Contract with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract assets | $ 198.1 | $ 242.1 | |
Contract liabilities | 540.6 | 525.3 | |
Revenue recognized from contract with customer | 190 | $ 156 | |
Long-term Contract with Customer | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract liabilities | $ 45 | $ 40 |
Accounts Receivable and Contr_6
Accounts Receivable and Contract Balances - Schedule of Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 50.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 23.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 10 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 1.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, expected timing of satisfaction, period |
Inventory Financing Agreements
Inventory Financing Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Financing Agreements [Abstract] | ||
Accounts payable-inventory financing | $ 532.2 | $ 519 |
Debt - Debt Balances and Intere
Debt - Debt Balances and Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,829.9 | $ 5,959 |
Unamortized deferred financing fees | (34.3) | (36.3) |
Current maturities of long-term debt | (45.7) | (56.3) |
Total long-term debt | 5,749.9 | 5,866.4 |
Senior unsecured revolving loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 24.7 | 72.5 |
Senior unsecured term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 734.5 | 784.5 |
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 | 84.9 | 115.4 |
Other long-term obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 10.8 | $ 11.6 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Senior unsecured revolving loan facility | |
Debt Instrument [Line Items] | |
Additional borrowing capacity | $ 1,100 |
Undrawn letters of credit | 1 |
Senior unsecured revolving loan facility | Accounts Payable, Inventory Financing | |
Debt Instrument [Line Items] | |
Amount owed under Revolving loan financing agreement | 524 |
Senior unsecured term loan facility | |
Debt Instrument [Line Items] | |
Debt instrument, annual principal payment | $ 50 |
Debt - Fair Value of Long-Term
Debt - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value | $ 5,829.9 | $ 5,959 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 5,397.9 | $ 5,412.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax (expense) benefit | $ (66.2) | $ (80.2) |
Effective income tax rate reconciliation, percent | 22.30% | 24.30% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares outstanding (in shares) | 135.6 | 134.9 |
Effect of dilutive securities (in shares) | 1.7 | 1.8 |
Diluted weighted-average shares outstanding (in shares) | 137.3 | 136.7 |
Anti-dilutive shares (fewer than) (in shares) | 0.2 | 0.2 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 5,103.1 | $ 5,949.1 |
Operating income (loss) | 355.3 | 386.9 |
Depreciation and amortization expense | (70.7) | (71.4) |
Operating Segments | Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,203.7 | 2,627.6 |
Operating income (loss) | 193.3 | 210 |
Depreciation and amortization expense | (22.8) | (25) |
Operating Segments | Small Business | ||
Segment Reporting Information [Line Items] | ||
Net sales | 411.4 | 524 |
Operating income (loss) | 41.5 | 46.7 |
Depreciation and amortization expense | (1.3) | (1.4) |
Operating Segments | Public | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,812.8 | 2,033 |
Operating income (loss) | 127.5 | 141.8 |
Depreciation and amortization expense | (16.2) | (16.3) |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 675.2 | 764.5 |
Operating income (loss) | 36.5 | 36.7 |
Depreciation and amortization expense | (7.8) | (8.4) |
Headquarters | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Operating income (loss) | (43.5) | (48.3) |
Depreciation and amortization expense | $ (22.6) | $ (20.3) |
Segment Information - Schedul_2
Segment Information - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5,103.1 | $ 5,949.1 |
Percentage of Total Net Sales | 100% | 100% |
Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,203.7 | $ 2,627.6 |
Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 411.4 | 524 |
Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,812.8 | 2,033 |
Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 675.2 | 764.5 |
Transferred at a point in time where CDW is principal | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,425.8 | 5,288.6 |
Transferred at a point in time where CDW is principal | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,861.4 | 2,291.2 |
Transferred at a point in time where CDW is principal | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 365.3 | 480 |
Transferred at a point in time where CDW is principal | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,608.6 | 1,840.3 |
Transferred at a point in time where CDW is principal | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 590.5 | 677.1 |
Transferred at a point in time where CDW is agent | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 352.1 | 340.7 |
Transferred at a point in time where CDW is agent | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 185.4 | 180.6 |
Transferred at a point in time where CDW is agent | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36.8 | 34.3 |
Transferred at a point in time where CDW is agent | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 101.5 | 96.3 |
Transferred at a point in time where CDW is agent | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 28.4 | 29.5 |
Transferred over time where CDW is principal | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 325.2 | 319.8 |
Transferred over time where CDW is principal | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 156.9 | 155.8 |
Transferred over time where CDW is principal | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9.3 | 9.7 |
Transferred over time where CDW is principal | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 102.7 | 96.4 |
Transferred over time where CDW is principal | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 56.3 | 57.9 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,203.7 | 2,627.6 |
Corporate | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,203.7 | 2,627.6 |
Corporate | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Corporate | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Corporate | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Small Business | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 411.4 | 524 |
Small Business | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Small Business | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 411.4 | 524 |
Small Business | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Small Business | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Government | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 551.5 | 543.9 |
Government | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Government | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Government | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 551.5 | 543.9 |
Government | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Education | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 665.7 | 902.8 |
Education | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Education | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Education | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 665.7 | 902.8 |
Education | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 595.6 | 586.3 |
Healthcare | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Healthcare | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Healthcare | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 595.6 | 586.3 |
Healthcare | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 675.2 | 764.5 |
Other | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 675.2 | 764.5 |
Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,688.2 | $ 4,682.1 |
Percentage of Total Net Sales | 72.30% | 78.70% |
Hardware | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,519.4 | $ 1,983.6 |
Hardware | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 334.7 | 443.5 |
Hardware | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,362.5 | 1,646.3 |
Hardware | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 471.6 | 608.7 |
Notebooks/Mobile Devices | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,064.6 | $ 1,713.8 |
Percentage of Total Net Sales | 20.90% | 28.80% |
Netcomm Products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 744.5 | $ 567.7 |
Percentage of Total Net Sales | 14.60% | 9.50% |
Desktops | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 257.9 | $ 337.5 |
Percentage of Total Net Sales | 5.10% | 5.70% |
Collaboration | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 476 | $ 629.3 |
Percentage of Total Net Sales | 9.30% | 10.60% |
Data Storage and Servers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 541.9 | $ 620.8 |
Percentage of Total Net Sales | 10.60% | 10.40% |
Other Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 603.3 | $ 813 |
Percentage of Total Net Sales | 11.80% | 13.70% |
Software | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 944.7 | $ 798.4 |
Percentage of Total Net Sales | 18.50% | 13.40% |
Software | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 453 | $ 399.8 |
Software | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 56.2 | 59.8 |
Software | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 301.5 | 253.2 |
Software | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 134 | 85.6 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 442.1 | $ 437.5 |
Percentage of Total Net Sales | 8.70% | 7.40% |
Services | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 215.5 | $ 225.3 |
Services | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 15.7 | 15.1 |
Services | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 144.4 | 129.2 |
Services | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 66.5 | 67.9 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 28.1 | $ 31.1 |
Percentage of Total Net Sales | 0.50% | 0.50% |
Other | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 15.8 | $ 18.9 |
Other | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.8 | 5.6 |
Other | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.4 | 4.3 |
Other | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3.1 | 2.3 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,429.9 | 5,178.4 |
United States | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,199.2 | 2,616.8 |
United States | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 409.6 | 524 |
United States | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,812.6 | 2,033 |
United States | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8.5 | 4.6 |
Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 673.2 | 770.7 |
Rest of World | Corporate | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.5 | 10.8 |
Rest of World | Small Business | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1.8 | 0 |
Rest of World | Public | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0.2 | 0 |
Rest of World | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 666.7 | $ 759.9 |