Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Corporate, Small Business, and Public. In addition, there are 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 organizational structure of the Company’s segments is determined based on how the chief operating decision maker (“CODM”), who is the Chief Executive Officer, evaluates performance, allocates resources and manages operations, which is primarily based on customer base. Specifically, the Corporate reportable segment is primarily comprised of private sector business customers with more than 250 employees in the US, the Small Business reportable segment is primarily comprised of private sector business customers with up to 250 employees in the US, and the Public reportable segment is comprised of government agencies and education and healthcare institutions in the US.

The accounting policies used to determine profit and loss measures are consistent across all reportable segments and on a consolidated basis. Additionally, the CODM reviews key profit and loss measures for each reportable segment consistently based on both segment Gross profit and Operating income. Specifically, the CODM reviews Gross profit by segment to develop forecasting and evaluate overall profitability performance and Operating income by segment to make investment strategy and performance-based compensation decisions. Segment information for Total assets and capital expenditures is not presented given that such information is not used in measuring segment performance or allocating resources between segments.

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 for the years ended December 31, 2024, 2023 and 2022 is as follows:

	Corporate		Small Business		Public		Other		Headquarters		Total
2024:
Net sales	$	8,837.2	$	1,523.5	$	8,157.7	$	2,480.3	$	—	$	20,998.7
Cost of sales	6,737.7		1,170.6		6,498.5		1,989.5		—		16,396.3
Gross profit	2,099.5		352.9		1,659.2		490.8		—		4,602.4
Other segment items(1)	1,220.0		171.9		913.3		378.7		267.2		2,951.1
Operating income (loss)	$	879.5	$	181.0	$	745.9	$	112.1	$	(267.2)	$	1,651.3
Other Segment Information(2)
Depreciation and amortization expense	$	76.5	$	3.4	$	55.4	$	28.1	$	111.9	$	275.3
2023:
Net sales	$	8,960.8	$	1,556.0	$	8,305.7	$	2,553.5	$	—	$	21,376.0
Cost of sales	6,833.0		1,194.3		6,638.2		2,058.1		—		16,723.6
Gross profit	2,127.8		361.7		1,667.5		495.4		—		4,652.4
Other segment items(1)	1,281.0		184.4		932.5		353.3		220.3		2,971.5
Operating income (loss)	$	846.8	$	177.3	$	735.0	$	142.1	$	(220.3)	$	1,680.9
Other Segment Information(2)
Depreciation and amortization expense	$	82.1	$	4.7	$	58.4	$	30.1	$	95.4	$	270.7
2022:
Net sales	$	10,350.1	$	1,938.9	$	8,551.3	$	2,908.4	$	—	$	23,748.7
Cost of sales	8,170.8		1,544.9		6,918.0		2,428.4		—		19,062.1
Gross profit	2,179.3		394.0		1,633.3		480.0		—		4,686.6
Other segment items(1)	1,247.6		207.2		951.6		349.3		195.7		2,951.4
Operating income (loss)	$	931.7	$	186.8	$	681.7	$	130.7	$	(195.7)	$	1,735.2
Other Segment Information(2)
Depreciation and amortization expense	$	98.0	$	6.4	$	67.9	$	31.9	$	86.4	$	290.6

(1)Primarily includes payroll and other coworker costs, advertising expense and other selling and administrative costs.

(2)Depreciation and amortization expense is primarily included within Other segment items.

    Geographic Areas and Revenue Mix

	Year Ended December 31, 2024
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	8,779.4	$	1,499.8	$	8,150.4	$	27.3	$	18,456.9
Rest of World	57.8		23.7		7.3		2,453.0		2,541.8
Total Net sales	$	8,837.2	$	1,523.5	$	8,157.7	$	2,480.3	$	20,998.7
Major Product and Services
Hardware	$	6,015.5	$	1,201.6	$	6,225.1	$	1,776.9	$	15,219.1
Software	1,863.0		228.7		1,320.5		392.2		3,804.4
Services	898.5		75.8		593.6		299.4		1,867.3
Other(2)	60.2		17.4		18.5		11.8		107.9
Total Net sales	$	8,837.2	$	1,523.5	$	8,157.7	$	2,480.3	$	20,998.7
Sales by Channel
Corporate	$	8,837.2	$	—	$	—	$	—	$	8,837.2
Small Business	—		1,523.5		—		—		1,523.5
Government	—		—		2,486.9		—		2,486.9
Education	—		—		3,167.3		—		3,167.3
Healthcare	—		—		2,503.5		—		2,503.5
Other	—		—		—		2,480.3		2,480.3
Total Net sales	$	8,837.2	$	1,523.5	$	8,157.7	$	2,480.3	$	20,998.7
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	$	7,369.0	$	1,325.6	$	7,176.7	$	2,101.7	$	17,973.0
Transferred at a point in time where CDW is agent	807.1		146.7		526.9		126.9		1,607.6
Transferred over time where CDW is principal	661.1		51.2		454.1		251.7		1,418.1
Total Net sales	$	8,837.2	$	1,523.5	$	8,157.7	$	2,480.3	$	20,998.7

(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.

	Year Ended December 31, 2023
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	8,894.5	$	1,534.5	$	8,299.4	$	26.5	$	18,754.9
Rest of World	66.3		21.5		6.3		2,527.0		2,621.1
Total Net sales	$	8,960.8	$	1,556.0	$	8,305.7	$	2,553.5	$	21,376.0
Major Product and Services
Hardware	$	6,216.9	$	1,242.3	$	6,460.4	$	1,783.0	$	15,702.6
Software	1,772.3		232.8		1,295.4		498.8		3,799.3
Services	909.1		62.6		531.5		258.1		1,761.3
Other(2)	62.5		18.3		18.4		13.6		112.8
Total Net sales	$	8,960.8	$	1,556.0	$	8,305.7	$	2,553.5	$	21,376.0
Sales by Channel
Corporate	$	8,960.8	$	—	$	—	$	—	$	8,960.8
Small Business	—		1,556.0		—		—		1,556.0
Government	—		—		2,669.1		—		2,669.1
Education	—		—		3,298.3		—		3,298.3
Healthcare	—		—		2,338.3		—		2,338.3
Other	—		—		—		2,553.5		2,553.5
Total Net sales	$	8,960.8	$	1,556.0	$	8,305.7	$	2,553.5	$	21,376.0
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	$	7,515.7	$	1,374.1	$	7,411.1	$	2,212.0	$	18,512.9
Transferred at a point in time where CDW is agent	778.0		145.3		480.6		117.9		1,521.8
Transferred over time where CDW is principal	667.1		36.6		414.0		223.6		1,341.3
Total Net sales	$	8,960.8	$	1,556.0	$	8,305.7	$	2,553.5	$	21,376.0

(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.

	Year Ended December 31, 2022
	Corporate		Small Business		Public		Other		Total
Geography(1)
United States	$	10,321.2	$	1,934.8	$	8,550.8	$	21.8	$	20,828.6
Rest of World	28.9		4.1		0.5		2,886.6		2,920.1
Total Net sales	$	10,350.1	$	1,938.9	$	8,551.3	$	2,908.4	$	23,748.7
Major Product and Services
Hardware	$	7,561.0	$	1,610.7	$	6,763.9	$	2,155.4	$	18,091.0
Software	1,781.5		232.9		1,196.9		473.6		3,684.9
Services	929.3		73.8		570.7		268.2		1,842.0
Other(2)	78.3		21.5		19.8		11.2		130.8
Total Net sales	$	10,350.1	$	1,938.9	$	8,551.3	$	2,908.4	$	23,748.7
Sales by Channel
Corporate	$	10,350.1	$	—	$	—	$	—	$	10,350.1
Small Business	—		1,938.9		—		—		1,938.9
Government	—		—		2,574.3		—		2,574.3
Education	—		—		3,621.4		—		3,621.4
Healthcare	—		—		2,355.6		—		2,355.6
Other	—		—		—		2,908.4		2,908.4
Total Net sales	$	10,350.1	$	1,938.9	$	8,551.3	$	2,908.4	$	23,748.7
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal	$	8,971.4	$	1,751.1	$	7,717.1	$	2,576.5	$	21,016.1
Transferred at a point in time where CDW is agent	749.3		140.1		426.9		97.7		1,414.0
Transferred over time where CDW is principal	629.4		47.7		407.3		234.2		1,318.6
Total Net sales	$	10,350.1	$	1,938.9	$	8,551.3	$	2,908.4	$	23,748.7

(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 table presents Net sales by major category for the years ended December 31, 2024, 2023 and 2022. Categories are based upon internal classifications.

	Year Ended December 31,
	2024				2023				2022
	Net Sales		Percentage of Total Net Sales		Net Sales		Percentage of Total Net Sales		Net Sales		Percentage of Total Net Sales
Hardware:
Notebooks/Mobile Devices	$	5,089.9	24.2	%	$	4,690.5	21.9	%	$	6,179.7	26.0	%
Netcomm Products	2,538.2		12.1		3,185.4		14.9		2,729.7		11.5
Collaboration	1,770.6		8.4		1,909.7		8.9		2,394.8		10.1
Data Storage and Servers	2,133.8		10.2		2,240.7		10.5		2,479.0		10.4
Desktops	1,111.2		5.3		1,069.1		5.0		1,284.9		5.4
Other Hardware	2,575.4		12.3		2,607.2		12.3		3,022.9		12.7
Total Hardware	15,219.1		72.5		15,702.6		73.5		18,091.0		76.1
Software(1)	3,804.4		18.1		3,799.3		17.8		3,684.9		15.5
Services(1)	1,867.3		8.9		1,761.3		8.2		1,842.0		7.8
Other(2)	107.9		0.5		112.8		0.5		130.8		0.6
Total Net sales	$	20,998.7	100.0	%	$	21,376.0	100.0	%	$	23,748.7	100.0	%

(1)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.

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