XML 57 R40.htm IDEA: XBRL DOCUMENT v2.4.1.9
Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2014
Share-based Arrangements with Employees and Nonemployees [Abstract]  
Schedule Equity-Based Compensation Expense [Table Text Block]
The following table summarizes equity-based compensation expense, which is included in selling and administrative expenses, for the years ended December 31, 2014, 2013 and 2012:
(in millions)
 
Year Ended December 31,
 
 
2014
 
2013 (1)
 
2012 (2)
Equity-based compensation expense
 
$
16.4

 
$
46.6

 
$
22.1

Income tax benefit
 
(5.1
)
 
(16.5
)
 
(2.3
)
Total (net of tax)
 
$
11.3

 
$
30.1

 
$
19.8

(1)
Includes pre-tax expense of $36.7 million related to the accelerated vesting of certain equity awards granted prior to our IPO. All unvested awards granted pursuant to the MPK Coworker Incentive Plan II (the “MPK Plan”) vested in connection with the IPO as discussed further below in the section labeled "MPK II Units."
(2)
Includes pre-tax expense of $6.6 million in connection with the modification of Class B Common Unit awards granted pursuant to the CDW Holdings LLC 2007 Incentive Equity Plan to the Company’s former Chief Executive Officer, as discussed further below in the section labeled "Class B Common Units."
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The weighted-average assumptions used to value the stock options granted during the years ended December 31, 2014 and 2013 are presented below.
 
 
Year Ended December 31,
 
 
2014
 
2013
Weighted-average grant date fair value
 
$
7.23

 
$
4.75

Weighted-average volatility (1)
 
30.00
%
 
35.00
%
Weighted-average risk-free rate (2)
 
1.77
%
 
1.58
%
Dividend yield
 
0.70
%
 
1.00
%
Expected term (in years) (3)
 
6.0

 
5.4

(1)
Based upon an assessment of the two-year, five-year and implied volatility for the Company’s selected peer group, adjusted for the Company’s leverage.
(2)
Based on a composite U.S. Treasury rate.
(3)
Calculated using the simplified method. The simplified method defines the expected term as the average of the option’s contractual term and the option’s weighted-average vesting period. The Company utilizes this method as it has limited historical stock option data that is sufficient to derive a reasonable estimate of the expected stock option term.
Schedule of Stock Options Roll Forward [Table Text Block]
The following table summarizes the Company's stock option activity for the year ended December 31, 2014:
Options
 
Number of Options
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (millions)
Outstanding at January 1, 2014
 
1,280,255

 
$17.00
 
 
 
 
Granted
 
1,245,513

 
24.40

 
 
 
 
Forfeited/Expired
 
(31,209
)
 
21.33

 
 
 
 
Exercised
 
(73,487
)
 
17.00

 
 
 
 
Outstanding at December 31, 2014
 
2,421,072

 
$20.75
 
8.3
 
$34.9
 
 
 
 
 
 
 
 
 
Exercisable at December 31, 2014
 
576,963

 
$17.00
 
7.2
 
$10.5
Vested and expected to vest at December 31, 2014
 
2,378,364

 
$20.74
 
8.3
 
$34.3
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]
The following table summarizes the Company's RSU activity for the year ended December 31, 2014:
 
Number of Units
 
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2014
1,351,572

 
$
17.04

Granted
25,895

 
24.29

Vested/Settled
(5,984
)
 
17.00

Forfeited
(126,781
)
 
17.04

Nonvested at December 31, 2014
1,244,702

 
$
17.19
Schedule of Share-based Payment Award, Equity Investments other than Options, Valuation Assumptions [Table Text Block]
The following table summarizes the assumptions and resulting fair value of the Class B Common Unit grants for the years ended December 31, 2013 and 2012:
 
Years Ended December 31,
Assumptions
2013
 
2012
Weighted-average grant date fair value
$
119.00

 
$
125.65

Weighted-average volatility (1)
65.50
%
 
65.26
%
Weighted-average risk-free rate (2)
0.18
%
 
0.19
%
Dividend yield
0.00
%
 
0.00
%
(1)
Based upon an assessment of the two-year, five-year and implied volatility for the Company’s selected peer group, adjusted for the Company’s leverage.
(2)
Based on a composite U.S. Treasury rate.
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
The following table sets forth a summary of pre-IPO equity plan activity for the year ended December 31, 2013:
 
Class B
Common Units
 
MPK Plan
Units
Outstanding at January 1, 2013
216,483

 
66,137

Granted
400

 
—

Forfeited
(860
)
 
(2,228
)
Converted/Settled (1)
(216,023
)
 
(63,909
)
Outstanding at December 31, 2013
—

 
—

Vested at December 31, 2013
—

 
—

(1)
As discussed above, the Class B Common Units and MPK Plan Units were converted/settled into shares of the Company's common stock upon completion of the IPO. The converted Class B Common Units, to the extent unvested at the time of the IPO, relate to the grants of restricted stock disclosed above.