Segment Information

The Company has three reportable segments: Corporate, which is comprised primarily of US private sector business customers with more than 250 employees, Small Business, primarily servicing 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").

Information about the Company's segments is as follows:



(in millions)	Corporate			Small Business			Public			Other			Headquarters			Total
Three Months Ended March 31, 2018
Net sales	$	1,565.8		$	327.6		$	1,230.0		$	483.0		$	—		$	3,606.4
Income (loss) from operations	124.8			22.3			71.7			19.8			(34.5		)	204.1
Depreciation and amortization expense	(21.1		)	(5.2		)	(11.2		)	(8.8		)	(20.3		)	(66.6		)

Three Months Ended March 31, 2017⁽¹⁾
Net sales	$	1,440.6		$	292.0		$	1,153.7		$	369.7		$	—		$	3,256.0
Income (loss) from operations	112.1			16.6			60.8			12.7			(31.5		)	170.7
Depreciation and amortization expense	(20.8		)	(5.1		)	(11.2		)	(7.2		)	(19.9		)	(64.2		)


(1)	Amounts for 2017 have been adjusted to reflect the adoption of Topic 606.

Geographic Areas and Revenue Mix



	Three Months Ended March 31, 2018
	Corporate		Small Business		Public		Other		Total
Geography⁽¹⁾
United States	$	1,564.4	$	327.6	$	1,230.0	$	9.2	$	3,131.2
Rest of World	1.4		—		—		473.8		475.2
Total Net sales	1,565.8		327.6		1,230.0		483.0		3,606.4

Major Product and Services
Hardware	1,251.6		272.8		1,008.2		379.5		2,912.1
Software	219.6		43.1		183.1		59.3		505.1
Services	78.1		6.3		34.6		42.2		161.2
Other⁽²⁾	16.5		5.4		4.1		2.0		28.0
Total Net sales	1,565.8		327.6		1,230.0		483.0		3,606.4

Sales by Channel
Corporate	1,565.8		—		—		—		1,565.8
Small Business	—		327.6		—		—		327.6
Government	—		—		418.5		—		418.5
Education	—		—		397.2		—		397.2
Healthcare	—		—		414.3		—		414.3
Other	—		—		—		483.0		483.0
Total Net sales	1,565.8		327.6		1,230.0		483.0		3,606.4

Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	1,426.3		309.4		1,171.4		433.0		3,340.1
Transferred at a point in time where CDW is agent	92.7		16.5		41.1		15.1		165.4
Transferred over time where CDW is principal	46.8		1.7		17.5		34.9		100.9
Total Net sales	$	1,565.8	$	327.6	$	1,230.0	$	483.0	$	3,606.4


(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.



	Three Months Ended March 31, 2017⁽¹⁾
	Corporate		Small Business		Public		Other		Total
Geography⁽²⁾
United States	$	1,439.5	$	292.0	$	1,153.7	$	6.1	$	2,891.3
Rest of World	1.1		—		—		363.6		364.7
Total Net sales	1,440.6		292.0		1,153.7		369.7		3,256.0

Major Product and Services
Hardware	1,146.5		240.8		958.6		293.5		2,639.4
Software	202.0		39.9		162.8		43.2		447.9
Services	75.8		6.2		28.0		31.3		141.3
Other⁽³⁾	16.3		5.1		4.3		1.7		27.4
Total Net sales	1,440.6		292.0		1,153.7		369.7		3,256.0

Sales by Channel
Corporate	1,440.6		—		—		—		1,440.6
Small Business	—		292.0		—		—		292.0
Government	—		—		374.6		—		374.6
Education	—		—		393.2		—		393.2
Healthcare	—		—		385.9		—		385.9
Other	—		—		—		369.7		369.7
Total Net sales	1,440.6		292.0		1,153.7		369.7		3,256.0

Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	1,314.2		275.7		1,105.8		331.5		3,027.2
Transferred at a point in time where CDW is agent	81.3		14.0		37.5		8.2		141.0
Transferred over time where CDW is principal	45.1		2.3		10.4		30.0		87.8
Total Net sales	$	1,440.6	$	292.0	$	1,153.7	$	369.7	$	3,256.0


(1)	Amounts for 2017 have been adjusted to reflect the adoption of Topic 606.


(2)	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.


(3)	Includes items such as delivery charges to customers.

The following table presents Net sales by major category for the three months ended March 31, 2018 and 2017. Categories are based upon internal classifications.



	Three Months Ended March 31,
	2018				2017⁽¹⁾
	Dollars in Millions		Percentage of Total Net Sales		Dollars in Millions		Percentage of Total Net Sales
Notebooks/Mobile Devices	$	858.7	23.8	%	$	735.5	22.6	%
Netcomm Products	482.9		13.4		458.6		14.1
Desktops	303.5		8.4		263.2		8.1
Video	259.2		7.2		235.7		7.2
Enterprise and Data Storage (Including Drives)	256.0		7.1		234.8		7.2
Other Hardware	751.8		20.8		711.6		21.9
Total Hardware	2,912.1		80.7		2,639.4		81.1

Software⁽²⁾	505.1		14.0		447.9		13.8
Services⁽²⁾	161.2		4.5		141.3		4.3
Other⁽³⁾	28.0		0.8		27.4		0.8
Total Net sales	$	3,606.4	100.0	%	$	3,256.0	100.0	%


(1)	Amounts for 2017 have been adjusted to reflect the adoption of Topic 606.


(2)	Certain software and services revenues are recorded on a net basis for accounting purposes. 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.