Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s segment information reflects the way the chief operating decision maker uses internal reporting to evaluate business performance, allocate resources and manage operations.

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

The Company has centralized logistics and headquarters functions that provide services to the segments. The logistics function includes purchasing, distribution and fulfillment services to support the Corporate, Small Business and Public segments. As a result, costs and intercompany charges associated with the logistics function are fully allocated to all of these segments based on a percent of Net sales. The centralized headquarters function provides services in areas such as accounting, information technology, marketing, legal and coworker services. Headquarters function costs that are not allocated to the segments are included under the heading of “Headquarters” in the tables below.

Information about the Company’s segments is as follows:

	Corporate		Small Business		Public		Other		Headquarters		Total
Three Months Ended June 30, 2022
Net sales	$	2,660.7	$	500.0	$	2,243.0	$	742.1	$	—	$	6,145.8
Operating income (loss)	231.2		47.0		177.2		27.8		(47.9)		435.3
Depreciation and amortization expense	(23.6)		(1.9)		(16.5)		(8.1)		(21.0)		(71.1)
Three Months Ended June 30, 2021
Net sales	$	1,983.3	$	482.9	$	2,080.7	$	599.5	$	—	$	5,146.4
Operating income (loss)	175.2		44.0		153.3		23.7		(26.3)		369.9
Depreciation and amortization expense	(3.8)		(0.8)		(16.1)		(8.6)		(17.3)		(46.6)
Six Months Ended June 30, 2022
Net sales	$	5,288.3	$	1,024.0	$	4,276.0	$	1,506.6	$	—	$	12,094.9
Operating income (loss)	441.2		93.7		319.0		64.5		(96.2)		822.2
Depreciation and amortization expense	(48.6)		(3.3)		(32.8)		(16.5)		(41.3)		(142.5)
Six Months Ended June 30, 2021
Net sales	$	3,788.9	$	915.6	$	4,002.4	$	1,277.0	$	—	$	9,983.9
Operating income (loss)	336.6		86.8		290.0		51.4		(71.5)		693.3
Depreciation and amortization expense	(7.8)		(1.6)		(29.5)		(17.2)		(35.7)		(91.8)

Geographic Areas and Revenue Mix

	Three Months Ended June 30, 2022
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	2,655.4	$	500.0	$	2,243.0	$	4.1	$	5,402.5
Rest of World	5.3		—		—		738.0		743.3
Total Net sales	2,660.7		500.0		2,243.0		742.1		6,145.8
Major Product and Services
Hardware	1,989.3		419.7		1,797.1		515.8		4,721.9
Software	423.0		55.0		288.7		154.2		920.9
Services	228.9		19.8		152.4		68.6		469.7
Other(2)	19.5		5.5		4.8		3.5		33.3
Total Net sales	2,660.7		500.0		2,243.0		742.1		6,145.8
Sales by Channel
Corporate	2,660.7		—		—		—		2,660.7
Small Business	—		500.0		—		—		500.0
Government	—		—		609.5		—		609.5
Education	—		—		1,041.3		—		1,041.3
Healthcare	—		—		592.2		—		592.2
Other	—		—		—		742.1		742.1
Total Net sales	2,660.7		500.0		2,243.0		742.1		6,145.8
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	2,325.9		456.2		2,032.4		662.6		5,477.1
Transferred at a point in time where CDW is agent	172.3		33.4		103.5		19.3		328.5
Transferred over time where CDW is principal	162.5		10.4		107.1		60.2		340.2
Total Net sales	$	2,660.7	$	500.0	$	2,243.0	$	742.1	$	6,145.8
(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, 2021
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	1,976.2	$	482.9	$	2,080.7	$	4.7	$	4,544.5
Rest of World	7.1		—		—		594.8		601.9
Total Net sales	1,983.3		482.9		2,080.7		599.5		5,146.4
Major Product and Services
Hardware	1,586.5		416.4		1,763.9		458.8		4,225.6
Software	267.6		49.4		242.5		78.3		637.8
Services	110.9		11.3		70.1		59.4		251.7
Other(2)	18.3		5.8		4.2		3.0		31.3
Total Net sales	1,983.3		482.9		2,080.7		599.5		5,146.4
Sales by Channel
Corporate	1,983.3		—		—		—		1,983.3
Small Business	—		482.9		—		—		482.9
Government	—		—		513.4		—		513.4
Education	—		—		1,112.1		—		1,112.1
Healthcare	—		—		455.2		—		455.2
Other	—		—		—		599.5		599.5
Total Net sales	1,983.3		482.9		2,080.7		599.5		5,146.4
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	1,789.2		451.6		1,953.5		527.2		4,721.5
Transferred at a point in time where CDW is agent	120.7		25.9		85.0		19.8		251.4
Transferred over time where CDW is principal	73.4		5.4		42.2		52.5		173.5
Total Net sales	$	1,983.3	$	482.9	$	2,080.7	$	599.5	$	5,146.4
(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.

	Six Months Ended June 30, 2022
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	5,272.2	$	1,024.0	$	4,276.0	$	8.7	$	10,580.9
Rest of World	16.1		—		—		1,497.9		1,514.0
Total Net sales	5,288.3		1,024.0		4,276.0		1,506.6		12,094.9
Major Product and Services
Hardware	3,972.9		863.2		3,443.4		1,124.5		9,404.0
Software	822.8		114.8		542.0		239.8		1,719.4
Services	454.2		34.9		281.5		136.5		907.1
Other(2)	38.4		11.1		9.1		5.8		64.4
Total Net sales	5,288.3		1,024.0		4,276.0		1,506.6		12,094.9
Sales by Channel
Corporate	5,288.3		—		—		—		5,288.3
Small Business	—		1,024.0		—		—		1,024.0
Government	—		—		1,153.4		—		1,153.4
Education	—		—		1,944.1		—		1,944.1
Healthcare	—		—		1,178.5		—		1,178.5
Other	—		—		—		1,506.6		1,506.6
Total Net sales	5,288.3		1,024.0		4,276.0		1,506.6		12,094.9
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	4,617.1		936.2		3,872.7		1,339.7		10,765.7
Transferred at a point in time where CDW is agent	352.9		67.7		199.8		48.8		669.2
Transferred over time where CDW is principal	318.3		20.1		203.5		118.1		660.0
Total Net sales	$	5,288.3	$	1,024.0	$	4,276.0	$	1,506.6	$	12,094.9
(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, 2021
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	3,779.7	$	915.6	$	4,002.4	$	9.3	$	8,707.0
Rest of World	9.2		—		—		1,267.7		1,276.9
Total Net sales	3,788.9		915.6		4,002.4		1,277.0		9,983.9
Major Product and Services
Hardware	3,007.3		784.6		3,431.8		971.5		8,195.2
Software	534.6		98.5		433.9		176.3		1,243.3
Services	213.5		21.5		128.0		122.6		485.6
Other(2)	33.5		11.0		8.7		6.6		59.8
Total Net sales	3,788.9		915.6		4,002.4		1,277.0		9,983.9
Sales by Channel
Corporate	3,788.9		—		—		—		3,788.9
Small Business	—		915.6		—		—		915.6
Government	—		—		1,029.5		—		1,029.5
Education	—		—		2,055.4		—		2,055.4
Healthcare	—		—		917.5		—		917.5
Other	—		—		—		1,277.0		1,277.0
Total Net sales	3,788.9		915.6		4,002.4		1,277.0		9,983.9
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	3,416.9		853.6		3,779.4		1,127.8		9,177.7
Transferred at a point in time where CDW is agent	233.0		52.8		143.1		43.2		472.1
Transferred over time where CDW is principal	139.0		9.2		79.9		106.0		334.1
Total Net sales	$	3,788.9	$	915.6	$	4,002.4	$	1,277.0	$	9,983.9
(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.

The following tables present Net sales by major category for the three and six months ended June 30, 2022 and 2021. Categories are based upon internal classifications.

	Three Months Ended June 30,
	2022				2021
	Net Sales		Percentage of Total Net Sales		Net Sales		Percentage of Total Net Sales
Notebooks/Mobile Devices	$	1,763.6	28.7	%	$	1,710.1	33.2	%
Netcomm Products	705.2		11.5		483.8		9.4
Desktops	350.2		5.7		293.7		5.7
Video	526.5		8.6		410.5		8.0
Enterprise and Data Storage (Including Drives)	323.3		5.3		242.5		4.7
Other Hardware	1,053.1		17.1		1,085.0		21.1
Total Hardware(1)	4,721.9		76.9		4,225.6		82.1
Software(2)	920.9		15.0		637.8		12.4
Services(2)	469.7		7.6		251.7		4.9
Other(3)	33.3		0.5		31.3		0.6
Total Net sales	$	6,145.8	100.0	%	$	5,146.4	100.0	%
	Six Months Ended June 30,
	2022				2021
	Net Sales		Percentage of Total Net Sales		Net Sales		Percentage of Total Net Sales
Notebooks/Mobile Devices	$	3,477.4	28.8	%	$	3,302.8	33.1	%
Netcomm Products	1,191.6		9.9		938.4		9.4
Desktops	687.6		5.7		558.9		5.6
Video	1,012.5		8.4		736.5		7.4
Enterprise and Data Storage (Including Drives)	677.0		5.6		502.1		5.0
Other Hardware	2,357.9		19.5		2,156.5		21.6
Total Hardware	9,404.0		77.9		8,195.2		82.1
Software(2)	1,719.4		14.2		1,243.3		12.5
Services(2)	907.1		7.5		485.6		4.9
Other(3)	64.4		0.4		59.8		0.5
Total Net sales	$	12,094.9	100.0	%	$	9,983.9	100.0	%

(1)Net sales by hardware category for the three months ended June 30, 2022 include reclassifications to address consistent presentation on a year-to-date basis.

(2)Certain software and services revenues are recorded on a net basis as the Company is acting as an agent in the transaction. 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.