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Supplemental Guarantor Information (Tables)
6 Months Ended
Jun. 30, 2019
Supplemental Guarantor Information [Abstract]  
Condensed Consolidating Balance Sheets
The following tables set forth Condensed Consolidating Balance Sheets as of June 30, 2019 and December 31, 2018, Consolidating Statements of Operations for the three and six months ended June 30, 2019 and 2018, Condensed Consolidating Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2019 and 2018, 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 combined accounts of the Non-Guarantor Subsidiaries, and the accounts of CDW Finance Corporation (the "Co-Issuer") for the periods indicated. The information is prepared on the same basis as the Company's Consolidated Financial Statements.
Condensed Consolidating Balance Sheet
June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
97.6

 
$
23.8

 
$
73.1

 
$

 
$

 
$
194.5

Accounts receivable, net

 

 
2,584.9

 
382.4

 

 

 
2,967.3

Merchandise inventory

 

 
577.9

 
74.3

 

 

 
652.2

Miscellaneous receivables

 
107.4

 
276.4

 
22.2

 

 

 
406.0

Prepaid expenses and other

 
25.9

 
124.2

 
55.2

 

 

 
205.3

Total current assets

 
230.9

 
3,587.2

 
607.2

 

 

 
4,425.3

Operating lease right-of-use assets

 
21.8

 
65.2

 
30.3

 

 

 
117.3

Property and equipment, net

 
81.8

 
54.7

 
26.9

 

 

 
163.4

Goodwill

 
751.8

 
1,437.8

 
335.1

 

 

 
2,524.7

Other intangible assets, net

 
246.4

 
237.2

 
176.9

 

 

 
660.5

Other assets
0.6

 
43.0

 
7.8

 
178.9

 

 
(199.6
)
 
30.7

Investment in and advances to subsidiaries
935.5

 
3,178.7

 

 

 

 
(4,114.2
)
 

Total Assets
$
936.1

 
$
4,554.4

 
$
5,389.9

 
$
1,355.3

 
$

 
$
(4,313.8
)
 
$
7,921.9

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

 
$
38.4

 
$
1,771.6

 
$
245.8

 
$

 
$

 
$
2,055.8

Accounts payable-inventory financing

 
0.5

 
451.2

 
14.0

 

 

 
465.7

Current maturities of long-term debt

 
14.9

 
4.1

 
6.5

 

 

 
25.5

Contract liabilities

 

 
100.5

 
100.3

 

 

 
200.8

Accrued expenses and other current liabilities

 
251.8

 
378.8

 
81.9

 

 

 
712.5

Total current liabilities

 
305.6

 
2,706.2

 
448.5

 

 

 
3,460.3

Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt

 
3,191.4

 
4.3

 
57.6

 

 

 
3,253.3

Deferred income taxes

 
53.5

 
40.9

 
29.9

 

 
(1.2
)
 
123.1

Operating lease liabilities

 
32.6

 
27.8

 
26.2

 

 

 
86.6

Other liabilities

 
35.8

 
4.9

 
220.2

 

 
(198.4
)
 
62.5

Total long-term liabilities

 
3,313.3

 
77.9

 
333.9

 

 
(199.6
)
 
3,525.5

Total stockholders' equity
936.1

 
935.5

 
2,605.8

 
572.9

 

 
(4,114.2
)
 
936.1

Total Liabilities and Stockholders' Equity
$
936.1

 
$
4,554.4

 
$
5,389.9

 
$
1,355.3

 
$

 
$
(4,313.8
)
 
$
7,921.9




Condensed Consolidating Balance Sheet
December 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
$

 
$
176.0

 
$

 
$
46.7

 
$

 
$
(16.9
)
 
$
205.8

Accounts receivable, net

 

 
2,331.2

 
340.0

 

 

 
2,671.2

Merchandise inventory

 

 
387.4

 
66.9

 

 

 
454.3

Miscellaneous receivables

 
110.6

 
187.7

 
18.1

 

 

 
316.4

Prepaid expenses and other

 
17.1

 
93.8

 
38.2

 

 

 
149.1

Total current assets

 
303.7

 
3,000.1

 
509.9

 

 
(16.9
)
 
3,796.8

Property and equipment, net

 
82.3

 
52.0

 
21.8

 

 

 
156.1

Goodwill

 
751.8

 
1,437.8

 
273.2

 

 

 
2,462.8

Other intangible assets, net

 
252.5

 
300.0

 
159.7

 

 

 
712.2

Other assets
1.4

 
49.8

 
9.6

 
140.2

 

 
(161.2
)
 
39.8

Investment in and advances to subsidiaries
973.8

 
3,028.9

 

 

 

 
(4,002.7
)
 

Total Assets
$
975.2

 
$
4,469.0

 
$
4,799.5

 
$
1,104.8

 
$

 
$
(4,180.8
)
 
$
7,167.7

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

 
$
39.2

 
$
1,387.9

 
$
166.9

 
$

 
$
(16.9
)
 
$
1,577.1

Accounts payable-inventory financing

 
0.2

 
406.1

 
23.0

 

 

 
429.3

Current maturities of long-term debt

 
14.9

 
4.0

 
6.4

 

 

 
25.3

Contract liabilities

 

 
95.6

 
82.7

 

 

 
178.3

Accrued expenses and other current liabilities

 
217.6

 
306.7

 
68.8

 

 

 
593.1

Total current liabilities

 
271.9

 
2,200.3

 
347.8

 

 
(16.9
)
 
2,803.1

Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt

 
3,121.3

 
4.3

 
57.7

 

 

 
3,183.3

Deferred income taxes

 
55.9

 
60.5

 
26.9

 

 
(1.4
)
 
141.9

Other liabilities

 
46.1

 
5.7

 
172.2

 

 
(159.8
)
 
64.2

Total long-term liabilities

 
3,223.3

 
70.5

 
256.8

 

 
(161.2
)
 
3,389.4

Total stockholders' equity
975.2

 
973.8

 
2,528.7

 
500.2

 

 
(4,002.7
)
 
975.2

Total Liabilities and Stockholders' Equity
$
975.2

 
$
4,469.0

 
$
4,799.5

 
$
1,104.8

 
$

 
$
(4,180.8
)
 
$
7,167.7








Consolidating Statements of Operations


Consolidating Statement of Operations
Three Months Ended June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$

 
$
4,101.4

 
$
528.5

 
$

 
$

 
$
4,629.9

Cost of sales

 

 
3,414.0

 
442.1

 

 

 
3,856.1

Gross profit

 

 
687.4

 
86.4

 

 

 
773.8

Selling and administrative expenses

 
32.0

 
323.8

 
64.6

 

 

 
420.4

Advertising expense

 

 
50.4

 
2.7

 

 

 
53.1

Operating income (loss)

 
(32.0
)
 
313.2

 
19.1

 

 

 
300.3

Interest (expense) income, net

 
(40.2
)
 
0.1

 
(0.4
)
 

 

 
(40.5
)
Other income, net

 

 
0.4

 
1.0

 

 

 
1.4

Income (loss) before income taxes

 
(72.2
)
 
313.7

 
19.7

 

 

 
261.2

Income tax (expense) benefit
(0.1
)
 
18.5

 
(81.9
)
 
(1.1
)
 

 

 
(64.6
)
Income (loss) before equity in earnings of subsidiaries
(0.1
)
 
(53.7
)
 
231.8

 
18.6

 

 

 
196.6

Equity in earnings of subsidiaries
196.7

 
250.4

 

 

 

 
(447.1
)
 

Net income
$
196.6

 
$
196.7

 
$
231.8

 
$
18.6

 
$

 
$
(447.1
)
 
$
196.6











Consolidating Statement of Operations
Three Months Ended June 30, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$

 
$
3,698.7

 
$
487.4

 
$

 
$

 
$
4,186.1

Cost of sales

 

 
3,083.0

 
407.5

 

 

 
3,490.5

Gross profit

 

 
615.7

 
79.9

 

 

 
695.6

Selling and administrative expenses

 
35.1

 
289.6

 
56.7

 

 

 
381.4

Advertising expense

 

 
47.2

 
1.5

 

 

 
48.7

Operating income (loss)

 
(35.1
)
 
278.9

 
21.7

 

 

 
265.5

Interest (expense) income, net

 
(36.7
)
 
0.9

 
(1.4
)
 

 

 
(37.2
)
Other income, net

 

 
0.1

 
1.4

 

 

 
1.5

Income (loss) before income taxes

 
(71.8
)
 
279.9

 
21.7

 

 

 
229.8

Income tax (expense) benefit
(0.1
)
 
20.2

 
(72.0
)
 
(4.9
)
 

 

 
(56.8
)
Income (loss) before equity in earnings of subsidiaries
(0.1
)
 
(51.6
)
 
207.9

 
16.8

 

 

 
173.0

Equity in earnings of subsidiaries
173.1

 
224.7

 

 

 

 
(397.8
)
 

Net income
$
173.0

 
$
173.1

 
$
207.9

 
$
16.8

 
$

 
$
(397.8
)
 
$
173.0









Consolidating Statement of Operations
Six Months Ended June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$

 
$
7,523.9

 
$
1,063.9

 
$

 
$

 
$
8,587.8

Cost of sales

 

 
6,254.8

 
887.1

 

 

 
7,141.9

Gross profit

 

 
1,269.1

 
176.8

 

 

 
1,445.9

Selling and administrative expenses

 
63.9

 
633.2

 
127.3

 

 

 
824.4

Advertising expense

 

 
87.5

 
4.8

 

 

 
92.3

Operating income (loss)

 
(63.9
)
 
548.4

 
44.7

 

 

 
529.2

Interest (expense) income, net

 
(78.2
)
 
0.2

 
(0.8
)
 

 

 
(78.8
)
Other income, net

 

 
2.1

 
0.3

 

 

 
2.4

Income (loss) before income taxes

 
(142.1
)
 
550.7

 
44.2

 

 

 
452.8

Income tax (expense) benefit
(0.2
)
 
44.9

 
(141.3
)
 
(6.7
)
 

 

 
(103.3
)
Income (loss) before equity in earnings of subsidiaries
(0.2
)
 
(97.2
)
 
409.4

 
37.5

 

 

 
349.5

Equity in earnings of subsidiaries
349.7

 
446.9

 

 

 

 
(796.6
)
 

Net income
$
349.5

 
$
349.7

 
$
409.4

 
$
37.5

 
$

 
$
(796.6
)
 
$
349.5

















Consolidating Statement of Operations
Six Months Ended June 30, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$

 
$
6,822.1

 
$
970.4

 
$

 
$

 
$
7,792.5

Cost of sales

 

 
5,680.0

 
813.0

 

 

 
6,493.0

Gross profit

 

 
1,142.1

 
157.4

 

 

 
1,299.5

Selling and administrative expenses

 
69.6

 
562.0

 
112.5

 

 

 
744.1

Advertising expense

 

 
82.4

 
3.4

 

 

 
85.8

Operating income (loss)

 
(69.6
)
 
497.7

 
41.5

 

 

 
469.6

Interest (expense) income, net

 
(73.8
)
 
1.9

 
(3.0
)
 

 

 
(74.9
)
Other income, net

 

 
0.5

 
0.3

 

 

 
0.8

Income (loss) before income taxes

 
(143.4
)
 
500.1

 
38.8

 

 

 
395.5

Income tax (expense) benefit
(0.2
)
 
41.0

 
(127.3
)
 
(9.0
)
 

 

 
(95.5
)
Income (loss) before equity in earnings of subsidiaries
(0.2
)
 
(102.4
)
 
372.8

 
29.8

 

 

 
300.0

Equity in earnings of subsidiaries
300.2

 
402.6

 

 

 

 
(702.8
)
 

Net income
$
300.0

 
$
300.2

 
$
372.8

 
$
29.8

 
$

 
$
(702.8
)
 
$
300.0





















Condensed Statement of Comprehensive Income



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income
$
184.7

 
$
184.8

 
$
231.8

 
$
10.6

 
$

 
$
(427.2
)
 
$
184.7

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income (loss)
$
146.4

 
$
146.5

 
$
207.9

 
$
(12.1
)
 
$

 
$
(342.3
)
 
$
146.4

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income
$
340.7

 
$
340.9

 
$
409.4

 
$
39.4

 
$

 
$
(789.7
)
 
$
340.7

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2018
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Comprehensive income
$
290.8

 
$
291.0

 
$
372.8

 
$
15.1

 
$

 
$
(678.9
)
 
$
290.8








Condensed Consolidating Statements Cash Flows
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2019
(in millions)
Parent
Guarantor
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Co-Issuer
 
Consolidating
Adjustments
 
Consolidated
Net cash provided by operating activities
$

 
$
(7.0
)
 
$
317.0

 
$
93.8

 
$

 
$
10.7

 
$
414.5

Cash flows used in investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(31.2
)
 
(8.0
)
 
(4.7
)
 

 

 
(43.9
)
Acquisition of business, net of cash acquired

 

 

 
(75.0
)
 

 

 
(75.0
)
Net cash used in investing activities

 
(31.2
)
 
(8.0
)
 
(79.7
)
 

 

 
(118.9
)
Cash flows (used in) provided by financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from borrowings under revolving credit facility

 
891.0

 

 

 

 

 
891.0

Repayments of borrowings under revolving credit facility

 
(815.0
)
 

 

 

 

 
(815.0
)
Repayments of long-term debt

 
(7.5
)
 

 
(2.1
)
 

 

 
(9.6
)
Net change in accounts payable-inventory financing

 
0.3

 
45.1

 
(9.1
)
 

 

 
36.3

Repurchases of common stock
(332.2
)
 

 

 

 

 

 
(332.2
)
Payment of incentive compensation plan withholding taxes
(11.6
)
 

 

 

 

 

 
(11.6
)
Dividend payments
(86.3
)
 

 

 

 

 

 
(86.3
)
Capital contributions

 
(76.0
)
 

 
76.0

 

 

 

Other

 
22.4

 
(0.2
)
 

 

 

 
22.2

Distributions and advances from (to) affiliates
430.1

 
(55.4
)
 
(330.1
)
 
(50.8
)
 

 
6.2

 

Net cash (used in) provided by financing activities

 
(40.2
)
 
(285.2
)
 
14.0

 

 
6.2

 
(305.2
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(1.7
)
 

 

 
(1.7
)
Net (decrease) increase in cash and cash equivalents

 
(78.4
)
 
23.8

 
26.4

 

 
16.9

 
(11.3
)
Cash and cash equivalents—beginning of period

 
176.0

 

 
46.7

 

 
(16.9
)
 
205.8

Cash and cash equivalents—end of period
$

 
$
97.6

 
$
23.8

 
$
73.1

 
$

 
$

 
$
194.5


Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 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
$

 
$
(71.8
)
 
$
343.9

 
$
74.2

 
$

 
$
(14.0
)
 
$
332.3

Cash flows used in investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(24.2
)
 
(1.9
)
 
(7.5
)
 

 

 
(33.6
)
Net cash used in investing activities

 
(24.2
)
 
(1.9
)
 
(7.5
)
 

 

 
(33.6
)
Cash flows (used in) provided by financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from borrowings under revolving credit facility

 
467.5

 

 
20.6

 

 

 
488.1

Repayments of borrowings under revolving credit facility

 
(467.5
)
 

 
(6.9
)
 

 

 
(474.4
)
Repayments of long-term debt

 
(7.5
)
 

 

 

 

 
(7.5
)
Net change in accounts payable-inventory financing

 
(0.9
)
 
(100.8
)
 
(8.7
)
 

 

 
(110.4
)
Repurchases of common stock
(176.4
)
 

 

 

 

 

 
(176.4
)
Payment of incentive compensation plan withholding taxes
(8.7
)
 

 

 

 

 

 
(8.7
)
Dividend payments
(63.8
)
 

 

 

 

 

 
(63.8
)
Repayment of intercompany loan

 

 
47.5

 
(47.5
)
 

 

 

Other

 
15.3

 
(0.2
)
 
(0.2
)
 

 

 
14.9

Distributions and advances from (to) affiliates
248.9

 
46.3

 
(288.5
)
 

 

 
(6.7
)
 

Net cash (used in) provided by financing activities

 
53.2

 
(342.0
)
 
(42.7
)
 

 
(6.7
)
 
(338.2
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(4.0
)
 

 

 
(4.0
)
Net (decrease) increase in cash and cash equivalents


(42.8
)



20.0




(20.7
)

(43.5
)
Cash and cash equivalents—beginning of period

 
113.7

 

 
32.4

 

 
(1.9
)
 
144.2

Cash and cash equivalents—end of period
$


$
70.9


$


$
52.4


$


$
(22.6
)
 
$
100.7