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Supplemental Guarantor Information
3 Months Ended
Mar. 31, 2018
Supplemental Guarantor Information [Abstract]  
Supplemental Guarantor Information
Supplemental Guarantor Information
The 2023 Senior Notes, the 2024 Senior Notes and the 2025 Senior Notes are guaranteed by the Parent and each of CDW LLC’s direct and indirect, 100% owned, domestic subsidiaries (the "Guarantor Subsidiaries"). All guarantees by the Parent and the Guarantor Subsidiaries are and were joint and several, and full and unconditional; provided that guarantees by the Guarantor Subsidiaries are subject to certain customary release provisions contained in the indentures governing the 2023 Senior Notes, the 2024 Senior Notes and the 2025 Senior Notes. CDW LLC's 100% owned foreign subsidiaries, CDW International Holdings Limited, which is comprised of CDW UK and CDW Canada (together the "Non-Guarantor Subsidiaries"), do not guarantee the debt obligations. CDW LLC and CDW Finance Corporation, as co-issuers, are 100% owned by Parent and each of the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries are, directly or indirectly, 100% owned by CDW LLC.
The following tables set forth Condensed Consolidating Balance Sheets as of March 31, 2018 and December 31, 2017, Consolidating Statements of Operations for the three months ended March 31, 2018 and 2017, Condensed Consolidating Statements of Comprehensive Income for the three months ended March 31, 2018 and 2017 and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2018 and 2017, in accordance with Rule 3-10 of Regulation S-X. The consolidating financial information includes the accounts of CDW Corporation (the "Parent Guarantor"), which has no independent assets or operations, the accounts of CDW LLC (the "Subsidiary Issuer"), the combined accounts of the Guarantor Subsidiaries, the accounts of the Non-Guarantor Subsidiaries, and the accounts of CDW Finance Corporation (the "Co-Issuer") for the periods indicated. The information was prepared on the same basis as the Consolidated Financial Statements.
 
Condensed Consolidating Balance Sheet
March 31, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
173.3

 
$
—

 
$
65.9

 
$
—

 
$
(18.2
)
 
$
221.0

Accounts receivable, net
—

 
—

 
1,898.8

 
375.2

 
—

 
—

 
2,274.0

Merchandise inventory
—

 
—

 
401.0

 
84.8

 
—

 
—

 
485.8

Miscellaneous receivables
—

 
105.2

 
182.7

 
22.3

 
—

 
—

 
310.2

Prepaid expenses and other
—

 
21.5

 
119.9

 
47.5

 
—

 
—

 
188.9

Total current assets
—

 
300.0

 
2,602.4

 
595.7

 
—

 
(18.2
)
 
3,479.9

Property and equipment, net
—

 
87.7

 
42.1

 
23.3

 
—

 
—

 
153.1

Goodwill
—

 
751.8

 
1,439.0

 
298.0

 
—

 
—

 
2,488.8

Other intangible assets, net
—

 
277.4

 
388.6

 
193.0

 
—

 
—

 
859.0

Other assets
1.6

 
52.1

 
207.5

 
2.8

 
—

 
(216.9
)
 
47.1

Investment in and advances to subsidiaries
995.3

 
3,016.8

 
—

 
—

 
—

 
(4,012.1
)
 
—

Total Assets
$
996.9

 
$
4,485.8

 
$
4,679.6

 
$
1,112.8

 
$
—

 
$
(4,247.2
)
 
$
7,027.9

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable-trade
$
—

 
$
24.6

 
$
1,063.6

 
$
218.5

 
$
—

 
$
(18.2
)
 
$
1,288.5

Accounts payable-inventory financing
—

 
—

 
481.8

 
41.9

 
—

 
—

 
523.7

Current maturities of
long-term debt
—

 
14.9

 
3.8

 
7.1

 
—

 
—

 
25.8

Contract liabilities
—

 
—

 
100.4

 
93.2

 
—

 
—

 
193.6

Accrued expenses and other current liabilities
—

 
210.6

 
263.4

 
76.9

 
—

 
—

 
550.9

Total current liabilities
—

 
250.1

 
1,913.0

 
437.6

 
—

 
(18.2
)
 
2,582.5

Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt
—

 
3,131.2

 
8.3

 
70.2

 
—

 
—

 
3,209.7

Deferred income taxes
—

 
69.0

 
89.3

 
32.2

 
—

 
(1.6
)
 
188.9

Other liabilities
—

 
40.2

 
4.9

 
220.1

 
—

 
(215.3
)
 
49.9

Total long-term liabilities
—

 
3,240.4

 
102.5

 
322.5

 
—

 
(216.9
)
 
3,448.5

Total stockholders' equity
996.9

 
995.3

 
2,664.1

 
352.7

 
—

 
(4,012.1
)
 
996.9

Total Liabilities and Stockholders' Equity
$
996.9

 
$
4,485.8

 
$
4,679.6

 
$
1,112.8

 
$
—

 
$
(4,247.2
)
 
$
7,027.9




Condensed Consolidating Balance Sheet
December 31, 2017
 (as adjusted)
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
113.7

 
$
—

 
$
32.4

 
$
—

 
$
(1.9
)
 
$
144.2

Accounts receivable, net
—

 
—

 
2,015.7

 
313.6

 
—

 
—

 
2,329.3

Merchandise inventory
—

 
—

 
354.6

 
56.9

 
—

 
—

 
411.5

Miscellaneous receivables
—

 
103.9

 
211.1

 
28.0

 
—

 
—

 
343.0

Prepaid expenses and other
—

 
18.0

 
100.4

 
49.9

 
—

 
—

 
168.3

Total current assets
—

 
235.6

 
2,681.8

 
480.8

 
—

 
(1.9
)
 
3,396.3

Property and equipment, net
—

 
95.0

 
43.5

 
22.6

 
—

 
—

 
161.1

Goodwill
—

 
751.8

 
1,439.0

 
288.8

 
—

 
—

 
2,479.6

Other intangible assets, net
—

 
280.1

 
424.5

 
192.4

 
—

 
—

 
897.0

Other assets
1.7

 
30.7

 
209.3

 
2.6

 
—

 
(211.6
)
 
32.7

Investment in and advances to subsidiaries
983.9

 
3,066.1

 
—

 
—

 
—

 
(4,050.0
)
 
—

Total Assets
$
985.6

 
$
4,459.3

 
$
4,798.1

 
$
987.2

 
$
—

 
$
(4,263.5
)
 
$
6,966.7

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable-trade
$
—

 
$
42.5

 
$
1,112.1

 
$
165.0

 
$
—

 
$
(1.9
)
 
$
1,317.7

Accounts payable-inventory financing
—

 
1.0

 
480.9

 
16.1

 
—

 
—

 
498.0

Current maturities of long-term debt
—

 
14.9

 
3.8

 
6.8

 
—

 
—

 
25.5

Contract liabilities
—

 
—

 
87.5

 
71.3

 
—

 
—

 
158.8

Accrued expenses and other current liabilities
—

 
173.3

 
262.0

 
86.8

 
—

 
—

 
522.1

Total current liabilities
—

 
231.7

 
1,946.3

 
346.0

 
—

 
(1.9
)
 
2,522.1

Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt
—

 
3,134.2

 
8.3

 
67.5

 
—

 
—

 
3,210.0

Deferred income taxes
—

 
66.5

 
100.1

 
31.4

 
—

 
(1.7
)
 
196.3

Other liabilities
—

 
43.0

 
4.7

 
214.9

 
—

 
(209.9
)
 
52.7

Total long-term liabilities
—

 
3,243.7

 
113.1

 
313.8

 
—

 
(211.6
)
 
3,459.0

Total stockholders' equity
985.6

 
983.9

 
2,738.7

 
327.4

 
—

 
(4,050.0
)
 
985.6

Total Liabilities and Stockholders' Equity
$
985.6

 
$
4,459.3

 
$
4,798.1

 
$
987.2

 
$
—

 
$
(4,263.5
)
 
$
6,966.7







Consolidating Statement of Operations
Three Months Ended March 31, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$
—

 
$
—

 
$
3,123.4

 
$
483.0

 
$
—

 
$
—

 
$
3,606.4

Cost of sales
—

 
—

 
2,597.0

 
405.5

 
—

 
—

 
3,002.5

Gross profit
—

 
—

 
526.4

 
77.5

 
—

 
—

 
603.9

Selling and administrative expenses
—

 
34.5

 
272.4

 
55.8

 
—

 
—

 
362.7

Advertising expense
—

 
—

 
35.2

 
1.9

 
—

 
—

 
37.1

Income (loss) from operations
—

 
(34.5
)
 
218.8

 
19.8

 
—

 
—

 
204.1

Interest (expense) income, net
—

 
(37.1
)
 
1.0

 
(1.6
)
 
—

 
—

 
(37.7
)
Other (expense) income
—

 
—

 
0.4

 
(1.1
)
 
—

 
—

 
(0.7
)
Income (loss) before income taxes
—

 
(71.6
)
 
220.2

 
17.1

 
—

 
—

 
165.7

Income tax (expense) benefit
(0.1
)
 
20.8

 
(55.3
)
 
(4.1
)
 
—

 
—

 
(38.7
)
Income (loss) before equity in earnings of subsidiaries
(0.1
)
 
(50.8
)
 
164.9

 
13.0

 
—

 
—

 
127.0

Equity in earnings of subsidiaries
127.1

 
177.9

 
—

 
—

 
—

 
(305.0
)
 
—

Net income
$
127.0

 
$
127.1

 
$
164.9

 
$
13.0

 
$
—

 
$
(305.0
)
 
$
127.0


























Consolidating Statement of Operations
Three Months Ended March 31, 2017
(as adjusted)
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$
—

 
$
—

 
$
2,886.3

 
$
369.7

 
$
—

 
$
—

 
$
3,256.0

Cost of sales
—

 
—

 
2,393.0

 
309.5

 
—

 
—

 
2,702.5

Gross profit
—

 
—

 
493.3

 
60.2

 
—

 
—

 
553.5

Selling and administrative expenses
—

 
31.5

 
269.8

 
46.1

 
—

 
—

 
347.4

Advertising expense
—

 
—

 
34.0

 
1.4

 
—

 
—

 
35.4

Income (loss) from operations
—

 
(31.5
)
 
189.5

 
12.7

 
—

 
—

 
170.7

Interest (expense) income, net
—

 
(39.1
)
 
1.0

 
(1.6
)
 
—

 
—

 
(39.7
)
Net loss on extinguishments of long-term debt
—

 
(57.4
)
 
—

 
—

 
—

 
—

 
(57.4
)
Other income
—

 
—

 
0.2

 
0.7

 
—

 
—

 
0.9

Income (loss) before income taxes
—

 
(128.0
)
 
190.7

 
11.8

 
—

 
—

 
74.5

Income tax (expense) benefit
—

 
57.3

 
(70.6
)
 
(3.0
)
 
—

 
—

 
(16.3
)
Income (loss) before equity in earnings of subsidiaries
—

 
(70.7
)
 
120.1

 
8.8

 
—

 
—

 
58.2

Equity in earnings of subsidiaries
58.2

 
128.9

 
—

 
—

 
—

 
(187.1
)
 
—

Net income
$
58.2

 
$
58.2

 
$
120.1

 
$
8.8

 
$
—

 
$
(187.1
)
 
$
58.2




















Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income
$
144.4

 
$
144.5

 
$
164.9

 
$
27.2

 
$
—

 
$
(336.6
)
 
$
144.4


Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2017
 (as adjusted)
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income
$
64.3

 
$
64.3

 
$
120.1

 
$
15.3

 
$
—

 
$
(199.7
)
 
$
64.3


Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net cash provided by (used in) operating activities
$
—

 
$
(13.8
)
 
$
239.6

 
$
10.8

 
$
—

 
$
(14.4
)
 
$
222.2

Cash flows used in investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(11.1
)
 
(1.2
)
 
(3.6
)
 
—

 
—

 
(15.9
)
Net cash used in investing activities
—

 
(11.1
)
 
(1.2
)
 
(3.6
)
 
—

 
—

 
(15.9
)
Cash flows (used in) provided by financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from borrowings under revolving credit facilities
—

 
163.0

 
—

 
7.0

 
—

 
—

 
170.0

Repayments of borrowings under revolving credit facilities
—

 
(163.0
)
 
—

 
(7.0
)
 
—

 
—

 
(170.0
)
Repayments of long-term debt
—

 
(3.7
)
 
—

 
—

 
—

 
—

 
(3.7
)
Net change in accounts payable-inventory financing
—

 
(0.9
)
 
1.0

 
24.8

 
—

 
—

 
24.9

Premium payments on interest rate cap agreements
—

 
(12.6
)
 
—

 
—

 
—

 
—

 
(12.6
)
Proceeds from stock option exercises
—

 
7.3

 
—

 
—

 
—

 
—

 
7.3

Proceeds from Coworker Stock Purchase Plan
—

 
2.4

 
—

 
—

 
—

 
—

 
2.4

Repurchases of common stock
(109.2
)
 
—

 
—

 
—

 
—

 
—

 
(109.2
)
Payment of incentive compensation plan withholding taxes
(8.7
)
 
—

 
—

 
—

 
—

 
—

 
(8.7
)
Dividends
(32.0
)
 
—

 
—

 
—

 
—

 
—

 
(32.0
)
Other
—

 
0.7

 
(0.1
)
 
(0.2
)
 
—

 
—

 
0.4

Distributions and advances from (to) affiliates
149.9

 
91.3

 
(239.3
)
 
—

 
—

 
(1.9
)
 
—

Net cash (used in) provided by financing activities
—

 
84.5

 
(238.4
)
 
24.6

 
—

 
(1.9
)
 
(131.2
)
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
1.7

 
—

 
—

 
1.7

Net increase in cash and cash equivalents
—

 
59.6

 
—

 
33.5

 
—

 
(16.3
)
 
76.8

Cash and cash equivalents—beginning of period
—

 
113.7

 
—

 
32.4

 
—

 
(1.9
)
 
144.2

Cash and cash equivalents—end of period
$
—

 
$
173.3

 
$
—

 
$
65.9

 
$
—

 
$
(18.2
)
 
$
221.0


Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
(as adjusted)
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net cash provided by operating activities
$
—

 
$
24.5

 
$
333.2

 
$
38.2

 
$
—

 
$
(26.0
)
 
$
369.9

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(14.6
)
 
(2.4
)
 
(2.6
)
 
—

 
—

 
(19.6
)
Net cash used in investing activities
—

 
(14.6
)
 
(2.4
)
 
(2.6
)
 
—

 
—

 
(19.6
)
Cash flows (used in) provided by financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from borrowings under revolving credit facilities
—

 
38.0

 
—

 
6.1

 
—

 
—

 
44.1

Repayments of borrowings under revolving credit facilities
—

 
—

 
—

 
(6.1
)
 
—

 
—

 
(6.1
)
Repayments of long-term debt
—

 
(3.7
)
 
—

 
—

 
—

 
—

 
(3.7
)
Proceeds from issuance of long-term debt
—

 
2,083.0

 
—

 
—

 
—

 
—

 
2,083.0

Payments to extinguish long-term debt
—

 
(2,121.3
)
 
—

 
—

 
—

 
—

 
(2,121.3
)
Payment of debt financing fees
—

 
(9.6
)
 
—

 
—

 
—

 
—

 
(9.6
)
Net change in accounts payable-inventory financing
—

 
(0.9
)
 
(132.2
)
 
(2.6
)
 
—

 
—

 
(135.7
)
Proceeds from stock option exercises
—

 
4.4

 
—

 
—

 
—

 
—

 
4.4

Proceeds from Coworker Stock Purchase Plan
—

 
2.1

 
—

 
—

 
—

 
—

 
2.1

Repurchases of common stock
(175.4
)
 
—

 
—

 
—

 
—

 
—

 
(175.4
)
Payment of incentive compensation plan withholding taxes
—

 
(10.4
)
 
(7.7
)
 
(0.2
)
 
—

 
—

 
(18.3
)
Dividends
(25.5
)
 
—

 
—

 
—

 
—

 
—

 
(25.5
)
Other
—

 
—

 
—

 
(0.2
)
 
—

 
—

 
(0.2
)
Distributions and advances from (to) affiliates
200.9

 
(9.3
)
 
(194.0
)
 
—

 
—

 
2.4

 
—

Net cash used in financing activities
—

 
(27.7
)
 
(333.9
)
 
(3.0
)
 
—

 
2.4

 
(362.2
)
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
(0.1
)
 
—

 
—

 
(0.1
)
Net (decrease) increase in cash and cash equivalents
—

 
(17.8
)
 
(3.1
)
 
32.5

 
—

 
(23.6
)
 
(12.0
)
Cash and cash equivalents—beginning of period
—

 
222.7

 
3.1

 
37.9

 
—

 
—

 
263.7

Cash and cash equivalents—end of period
$
—

 
$
204.9

 
$
—

 
$
70.4

 
$
—

 
$
(23.6
)
 
$
251.7