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Segment Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Information
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 June 30, 2018


 
 








Net sales

$
1,733.8

 
$
329.5


$
1,635.4


$
487.4


$
—


$
4,186.1

Income (loss) from operations

141.3

 
24.6


113.0


21.7


(35.1
)

265.5

Depreciation and amortization expense

(20.4
)
 
(5.2
)

(11.3
)

(9.0
)

(20.4
)

(66.3
)



 
 








Three Months Ended June 30, 2017(1)


 
 








Net sales

$
1,580.1

 
$
315.0

 
$
1,632.8

 
$
363.8

 
$
—


$
3,891.7

Income (loss) from operations

126.9

 
19.4

 
104.6

 
12.5

 
(32.6
)

230.8

Depreciation and amortization expense

(20.8
)
 
(5.1
)
 
(11.2
)
 
(7.6
)
 
(20.7
)

(65.4
)

(in millions)
 
Corporate
 
Small Business
 
Public
 
Other
 
Headquarters
 
Total
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
3,299.6

 
$
657.1

 
$
2,865.4

 
$
970.4

 
$
—

 
$
7,792.5

Income (loss) from operations
 
266.1

 
46.9

 
184.7

 
41.5

 
(69.6
)
 
469.6

Depreciation and amortization expense
 
(41.5
)
 
(10.4
)
 
(22.5
)
 
(17.8
)
 
(40.7
)
 
(132.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017(1)
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
3,020.7

 
$
607.0

 
$
2,786.5

 
$
733.4

 
$
—

 
$
7,147.6

Income (loss) from operations
 
239.0

 
36.0

 
165.3

 
25.1

 
(63.9
)
 
401.5

Depreciation and amortization expense
 
(41.7
)
 
(10.3
)
 
(22.4
)
 
(14.6
)
 
(40.5
)
 
(129.5
)

(1)
Amounts for 2017 have been adjusted to reflect the adoption of Topic 606.
Geographic Areas and Revenue Mix
 
Three Months Ended June 30, 2018
 
Corporate
 
Small Business
 
Public
 
Other
 
Total
Geography(1)

 

 

 

 

United States
$
1,731.4

 
$
329.5

 
$
1,635.4

 
$
8.0

 
$
3,704.3

Rest of World
2.4

 
—

 
—

 
479.4

 
481.8

Total Net sales
1,733.8

 
329.5

 
1,635.4

 
487.4

 
4,186.1

 
 
 
 
 
 
 
 
 
 
Major Product and Services
 
 
 
 
 
 
 
 
 
Hardware
1,380.8

 
273.9

 
1,337.8

 
389.7

 
3,382.2

Software
254.2

 
42.6

 
255.8

 
53.1

 
605.7

Services
81.3

 
7.7

 
37.6

 
42.2

 
168.8

Other(2)
17.5

 
5.3

 
4.2

 
2.4

 
29.4

Total Net sales
1,733.8

 
329.5

 
1,635.4

 
487.4

 
4,186.1

 
 
 
 
 
 
 
 
 
 
Sales by Channel
 
 
 
 
 
 
 
 
 
Corporate
1,733.8

 
—

 
—

 
—

 
1,733.8

Small Business
—

 
329.5

 
—

 
—

 
329.5

Government
—

 
—

 
493.5

 
—

 
493.5

Education
—

 
—

 
712.1

 
—

 
712.1

Healthcare
—

 
—

 
429.8

 
—

 
429.8

Other
—

 
—

 
—

 
487.4

 
487.4

Total Net sales
1,733.8

 
329.5

 
1,635.4

 
487.4

 
4,186.1

 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
Transferred at a point in time where CDW is principal
1,583.4

 
309.6

 
1,537.3

 
441.6

 
3,871.9

Transferred at a point in time where CDW is agent
101.5

 
17.1

 
55.3

 
9.7

 
183.6

Transferred over time where CDW is principal
48.9

 
2.8

 
42.8

 
36.1

 
130.6

Total Net sales
$
1,733.8

 
$
329.5

 
$
1,635.4

 
$
487.4

 
$
4,186.1

(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 June 30, 2017(1)
 
Corporate
 
Small Business
 
Public
 
Other
 
Total
Geography(2)
 
 
 
 
 
 
 
 
 
United States
$
1,578.5

 
$
315.0

 
$
1,632.8

 
$
7.1

 
$
3,533.4

Rest of World
1.6

 
—

 
—

 
356.7

 
358.3

Total Net sales
1,580.1

 
315.0

 
1,632.8

 
363.8

 
3,891.7

 
 
 
 
 
 
 
 
 
 
Major Product and Services
 
 
 
 
 
 
 
 
 
Hardware
1,238.5

 
261.0

 
1,329.7

 
291.4

 
3,120.6

Software
243.5

 
42.5

 
263.9

 
39.8

 
589.7

Services
81.3

 
6.2

 
34.7

 
30.6

 
152.8

Other(3)
16.8

 
5.3

 
4.5

 
2.0

 
28.6

Total Net sales
1,580.1

 
315.0

 
1,632.8

 
363.8

 
3,891.7

 
 
 
 
 
 
 
 
 
 
Sales by Channel
 
 
 
 
 
 
 
 
 
Corporate
1,580.1

 
—

 
—

 
—

 
1,580.1

Small Business
—

 
315.0

 
—

 
—

 
315.0

Government
—

 
—

 
523.4

 
—

 
523.4

Education
—

 
—

 
704.9

 
—

 
704.9

Healthcare
—

 
—

 
404.5

 
—

 
404.5

Other
—

 
—

 
—

 
363.8

 
363.8

Total Net sales
1,580.1

 
315.0

 
1,632.8

 
363.8

 
3,891.7

 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
Transferred at a point in time where CDW is principal
1,437.9

 
296.7

 
1,539.3

 
325.6

 
3,599.5

Transferred at a point in time where CDW is agent
92.6

 
16.0

 
52.1

 
6.9

 
167.6

Transferred over time where CDW is principal
49.6

 
2.3

 
41.4

 
31.3

 
124.6

Total Net sales
$
1,580.1

 
$
315.0

 
$
1,632.8

 
$
363.8

 
$
3,891.7

(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.

 
Six Months Ended June 30, 2018
 
Corporate
 
Small Business
 
Public
 
Other
 
Total
Geography(1)
 
 
 
 
 
 
 
 
 
United States
$
3,295.8

 
$
657.1

 
$
2,865.4

 
$
17.2

 
$
6,835.5

Rest of World
3.8

 
—

 
—

 
953.2

 
957.0

Total Net sales
3,299.6

 
657.1

 
2,865.4

 
970.4

 
7,792.5

 
 
 
 
 
 
 
 
 

Major Product and Services
 
 
 
 
 
 
 
 

Hardware
2,632.4

 
546.7

 
2,346.0

 
769.2

 
6,294.3

Software
473.8

 
85.7

 
438.9

 
112.4

 
1,110.8

Services
159.4

 
14.0

 
72.2

 
84.4

 
330.0

Other(2)
34.0

 
10.7

 
8.3

 
4.4

 
57.4

Total Net sales
3,299.6

 
657.1

 
2,865.4

 
970.4

 
7,792.5

 
 
 
 
 
 
 
 
 

Sales by Channel
 
 
 
 
 
 
 
 

Corporate
3,299.6

 
—

 
—

 
—

 
3,299.6

Small Business
—

 
657.1

 
—

 
—

 
657.1

Government
—

 
—

 
912.0

 
—

 
912.0

Education
—

 
—

 
1,109.3

 
—

 
1,109.3

Healthcare
—

 
—

 
844.1

 
—

 
844.1

Other
—

 
—

 
—

 
970.4

 
970.4

Total Net sales
3,299.6

 
657.1

 
2,865.4

 
970.4

 
7,792.5

 
 
 
 
 
 
 
 
 

Timing of Revenue Recognition
 
 
 
 
 
 
 
 

Transferred at a point in time where CDW is principal
3,009.7

 
619.0

 
2,681.2

 
874.6

 
7,184.5

Transferred at a point in time where CDW is agent
194.2

 
33.6

 
96.4

 
24.8

 
349.0

Transferred over time where CDW is principal
95.7

 
4.5

 
87.8

 
71.0

 
259.0

Total Net sales
$
3,299.6

 
$
657.1

 
$
2,865.4

 
$
970.4

 
$
7,792.5

(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.


 
Six Months Ended June 30, 2017 (1)
 
Corporate
 
Small Business
 
Public
 
Other
 
Total
Geography(2)
 
 
 
 
 
 
 
 
 
United States
3,018.1

 
$
607.0

 
$
2,786.5

 
$
13.2

 
$
6,424.8

Rest of World
2.6

 
—

 
—

 
720.2

 
$
722.8

Total Net sales
3,020.7

 
607.0

 
2,786.5

 
733.4

 
7,147.6

 
 
 
 
 
 
 
 
 
 
Major Product and Services
 
 
 
 
 
 
 
 
 
Hardware
2,385.9

 
501.7

 
2,288.3

 
584.8

 
5,760.7

Software
444.5

 
82.5

 
426.7

 
82.9

 
1,036.6

Services
157.1

 
12.5

 
62.7

 
61.9

 
294.2

Other(3)
33.2

 
10.3

 
8.8

 
3.8

 
56.1

Total Net sales
3,020.7

 
607.0

 
2,786.5

 
733.4

 
7,147.6

 
 
 
 
 
 
 
 
 
 
Sales by Channel
 
 
 
 
 
 
 
 
 
Corporate
3,020.7

 
—

 
—

 
—

 
3,020.7

Small Business
—

 
607.0

 
—

 
—

 
607.0

Government
—

 
—

 
898.1

 
—

 
898.1

Education
—

 
—

 
1,098.1

 
—

 
1,098.1

Healthcare
—

 
—

 
790.3

 
—

 
790.3

Other
—

 
—

 
—

 
733.4

 
733.4

Total Net sales
3,020.7

 
607.0

 
2,786.5

 
733.4

 
7,147.6

 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
Transferred at a point in time where CDW is principal
2,752.2

 
572.4

 
2,619.7

 
656.9

 
6,601.2

Transferred at a point in time where CDW is agent
173.8

 
29.9

 
89.6

 
15.1

 
308.4

Transferred over time where CDW is principal
94.7

 
4.7

 
77.2

 
61.4

 
238.0

Total Net sales
$
3,020.7

 
$
607.0

 
$
2,786.5

 
$
733.4

 
$
7,147.6

(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 and six months ended June 30, 2018 and 2017. Categories are based upon internal classifications.

 
Three Months Ended June 30,
 
2018
 
2017(1)
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
Notebooks/Mobile Devices
$
1,068.3

 
25.5
%
 
$
912.8

 
23.5
%
Netcomm Products
498.6

 
11.9

 
540.3

 
13.9

Desktops
345.3

 
8.2

 
308.6

 
7.9

Video
325.8

 
7.8

 
289.5

 
7.4

Enterprise and Data Storage (Including Drives)
264.5

 
6.3

 
291.3

 
7.5

Other Hardware
879.7

 
21.1

 
778.1

 
20.0

Total Hardware
3,382.2

 
80.8

 
3,120.6

 
80.2

 
 
 
 
 
 
 
 
Software(2)
605.7

 
14.5

 
589.7

 
15.2

Services(2)
168.8

 
4.0

 
152.8

 
3.9

Other(3)
29.4

 
0.7

 
28.6

 
0.7

Total Net sales
$
4,186.1

 
100.0
%
 
$
3,891.7

 
100.0
%

 
Six Months Ended June 30,
 
2018
 
2017(1)
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
 
Dollars in
Millions
 
Percentage
of Total Net
Sales
Notebooks/Mobile Devices
$
1,927.0

 
24.7
%
 
$
1,647.1

 
23.0
%
Netcomm Products
981.5

 
12.6

 
999.2

 
14.0

Desktops
648.8

 
8.3

 
571.5

 
8.0

Video
585.0

 
7.5

 
525.0

 
7.3

Enterprise and Data Storage (Including Drives)
520.5

 
6.7

 
525.7

 
7.4

Other Hardware
1,631.5

 
21.0

 
1,492.2

 
20.9

Total Hardware
6,294.3

 
80.8

 
5,760.7

 
80.6

 
 
 
 
 
 
 
 
Software(2)
1,110.8

 
14.3

 
1,036.6

 
14.5

Services(2)
330.0

 
4.2

 
294.2

 
4.1

Other(3)
57.4

 
0.7

 
56.1

 
0.8

Total Net sales
$
7,792.5


100.0
%

$
7,147.6


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.