XML 50 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the chief operating decision-maker for making decisions and assessing performance as the source of the Company's reportable segments. The Company's segments are organized in a manner consistent with which separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.
The Company has two reportable segments: Corporate, which is comprised primarily of private sector business customers, and Public, which is comprised of government agencies and education and healthcare institutions. The Company also has two other operating segments, CDW Advanced Services and Canada, which do not meet the reportable segment quantitative thresholds and, accordingly, are combined together as “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 both the Corporate and Public segments. As a result, costs and intercompany charges associated with the logistics function are fully allocated to both of these segments based on a percent of 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. Depreciation expense is included in Headquarters as it is not allocated among segments or used in measuring segment performance.
The Company allocates resources to and evaluates performance of its segments based on net sales, income (loss) from operations and Adjusted EBITDA, a non-GAAP measure as defined in the Company's credit agreements. However, the Company has concluded that income (loss) from operations is the more useful measure in terms of discussion of operating results, as it is a GAAP measure.
Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources between segments. 
Selected Segment Financial Information
The following table presents information about the Company’s segments for the three months ended March 31, 2014 and 2013:
(in millions)
 
Corporate
 
Public
 
Other
 
Headquarters
 
Total
Three Months Ended March 31, 2014:
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,505.6

 
$
969.9

 
$
176.8

 
$
—

 
$
2,652.3

Income (loss) from operations
 
101.1

 
54.1

 
6.5

 
(25.9
)
 
135.8

Depreciation and amortization expense
 
(24.1
)
 
(10.9
)
 
(2.1
)
 
(14.9
)
 
(52.0
)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2013:
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,403.9

 
$
846.8

 
$
161.0

 
$
—

 
$
2,411.7

Income (loss) from operations
 
94.1

 
45.6

 
6.1

 
(25.7
)
 
120.1

Depreciation and amortization expense
 
(24.4
)
 
(11.0
)
 
(2.3
)
 
(14.3
)
 
(52.0
)