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Segment Information
 12 Months Ended
Dec. 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 business customers, and Public, which is comprised of government entities and education and healthcare institutions. The Company also has three other operating segments, CDW Advanced Services, Canada and Kelway, which do not meet the reportable segment quantitative thresholds and, accordingly, are combined together as “Other.” In November 2014, the Company acquired a 35% non-controlling equity interest in Kelway. See Note 15 for additional information on Kelway.
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.
IPO- and secondary-offering related expenses primarily relating to coworker compensation were included within operating segment results for the year ended December 31, 2013. See Note 9 for additional discussion of IPO- and secondary-offering related expenses.
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 years ended December 31, 2014, 2013 and 2012:
(in millions)
Corporate
 
Public
 
Other
 
Headquarters
 
Total
2014:
 
 
 
 
 
 
 
 
 
Net sales
$
6,475.5

 
$
4,879.4

 
$
719.6

 
$
—

 
$
12,074.5

Income (loss) from operations
439.8

 
313.2

 
32.9

 
(112.9
)
 
673.0

Depreciation and amortization expense
(96.3
)
 
(43.8
)
 
(8.8
)
 
(59.0
)
 
(207.9
)
 
 
 
 
 
 
 
 
 
 
2013:
 
 
 
 
 
 
 
 
 
Net sales
$
5,960.1

 
$
4,164.5

 
$
644.0

 
$
—

 
$
10,768.6

Income (loss) from operations(1)
363.3

 
246.5

 
27.2

 
(128.4
)
 
508.6

Depreciation and amortization expense
(97.3
)
 
(44.0
)
 
(8.6
)
 
(58.3
)
 
(208.2
)
 
 
 
 
 
 
 
 
 
 
2012:
 
 
 
 
 
 
 
 
 
Net sales
$
5,512.8

 
$
4,023.0

 
$
592.4

 
$
—

 
$
10,128.2

Income (loss) from operations
349.0

 
246.7

 
18.6

 
(103.7
)
 
510.6

Depreciation and amortization expense
(97.6
)
 
(44.0
)
 
(9.3
)
 
(59.3
)
 
(210.2
)
 
 
 
 
 
 
 
 
 
 

(1) Includes $75.0 million of IPO- and secondary-offering related expenses, as follows: Corporate $26.4 million; Public $14.4 million; Other $3.6 million; and Headquarters $30.6 million.
Major Customers, Geographic Areas, and Product Mix
Net sales to the federal government were $884.2 million, $764.4 million and $964.7 million and accounted for approximately 7%, 7% and 10% of total net sales in 2014, 2013 and 2012, respectively. Net sales to customers outside of the U.S., primarily in Canada, were approximately 4% of the Company's total net sales in 2014, 2013 and 2012. Approximately 1% of the Company’s long-lived assets were located outside of the U.S. as of December 31, 2014 and 2013.
The following table presents net sales by major category for the years ended December 31, 2014, 2013 and 2012. Categories are based upon internal classifications. Amounts for the years ended December 31, 2013 and 2012 have been reclassified for certain changes in individual product classifications to conform to the presentation for the year ended December 31, 2014.
 
Year Ended
December 31, 2014
 
Year Ended
December 31, 2013
 
Year Ended
December 31, 2012
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
Notebooks/Mobile Devices
$
2,352.3

 
19.5
%
 
$
1,698.4

 
15.8
%
 
$
1,462.8

 
14.4
%
NetComm Products
1,615.9

 
13.4

 
1,486.3

 
13.8

 
1,351.5

 
13.3

Enterprise and Data Storage (Including Drives)
1,024.3

 
8.5

 
999.2

 
9.3

 
981.5

 
9.7

Other Hardware
4,549.2

 
37.6

 
4,178.5

 
38.8

 
4,075.7

 
40.3

Software
2,076.7

 
17.2

 
1,993.1

 
18.5

 
1,877.7

 
18.5

Services
371.4

 
3.1

 
332.7

 
3.1

 
285.0

 
2.8

Other (1)
84.7

 
0.7

 
80.4

 
0.7

 
94.0

 
1.0

Total net sales
$
12,074.5

 
100.0
%
 
$
10,768.6

 
100.0
%
 
$
10,128.2

 
100.0
%
(1)
Includes items such as delivery charges to customers and certain commission revenue.