XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.19.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2019
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, 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"). Headquarters function costs that are not allocated to the segments are included under the heading of "Headquarters" in the tables below. During the first quarter of 2019, the Company evaluated its methodology for allocating certain depreciation and amortization expenses to each of its segments. The evaluation resulted in a revision to the allocation of depreciation and amortization expenses from Headquarters to the Company’s reportable segments, effective January 1, 2019. The prior period results have been recast to reflect these changes and present comparable information. Information about the Company's segments is as follows:
(in millions) |  | Corporate |  | Small Business |  | Public |  | Other |  | Headquarters |  | Total
Three Months Ended March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,736.2 |  |  | $ | 355.6 |  |  | $ | 1,330.7 |  |  | $ | 535.4 |  |  | $ | — |  |  | $ | 3,957.9 |
Operating income (loss) |  | 134.7 |  |  | 24.4 |  |  | 76.1 |  |  | 25.6 |  |  | (31.9 | ) |  | 228.9 |
Depreciation and amortization expense |  | (21.5 | ) |  | (5.6 | ) |  | (12.7 | ) |  | (7.4 | ) |  | (17.1 | ) |  | (64.3 | )
Three Months Ended March 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,565.8 |  |  | $ | 327.6 |  |  | $ | 1,230.0 |  |  | $ | 483.0 |  |  | $ | — |  |  | $ | 3,606.4 |
Operating income (loss) |  | 123.0 |  |  | 21.9 |  |  | 70.2 |  |  | 19.8 |  |  | (30.8 | ) |  | 204.1 |
Depreciation and amortization expense |  | (22.9 | ) |  | (5.6 | ) |  | (12.7 | ) |  | (8.8 | ) |  | (16.6 | ) |  | (66.6 | )
Geographic Areas and Revenue Mix
| Three Months Ended March 31, 2019
(in millions) | Corporate |  | Small Business |  | Public |  | Other |  | Total
Geography(1) |  |  |  |  |  |  |  |  |
United States | $ | 1,732.9 |  |  | $ | 355.6 |  |  | $ | 1,330.7 |  |  | $ | 8.4 |  |  | $ | 3,427.6 |
Rest of World | 3.3 |  |  | — |  |  | — |  |  | 527.0 |  |  | 530.3 |
Total Net sales | 1,736.2 |  |  | 355.6 |  |  | 1,330.7 |  |  | 535.4 |  |  | 3,957.9 |
Major Product and Services |  |  |  |  |  |  |  |  |
Hardware | 1,383.9 |  |  | 295.0 |  |  | 1,063.1 |  |  | 395.9 |  |  | 3,137.9 |
Software | 247.4 |  |  | 48.3 |  |  | 221.0 |  |  | 77.2 |  |  | 593.9 |
Services | 88.1 |  |  | 7.0 |  |  | 42.3 |  |  | 59.2 |  |  | 196.6 |
Other(2) | 16.8 |  |  | 5.3 |  |  | 4.3 |  |  | 3.1 |  |  | 29.5 |
Total Net sales | 1,736.2 |  |  | 355.6 |  |  | 1,330.7 |  |  | 535.4 |  |  | 3,957.9 |
Sales by Channel |  |  |  |  |  |  |  |  |
Corporate | 1,736.2 |  |  | — |  |  | — |  |  | — |  |  | 1,736.2 |
Small Business | — |  |  | 355.6 |  |  | — |  |  | — |  |  | 355.6 |
Government | — |  |  | — |  |  | 488.4 |  |  | — |  |  | 488.4 |
Education | — |  |  | — |  |  | 400.4 |  |  | — |  |  | 400.4 |
Healthcare | — |  |  | — |  |  | 441.9 |  |  | — |  |  | 441.9 |
Other | — |  |  | — |  |  | — |  |  | 535.4 |  |  | 535.4 |
Total Net sales | 1,736.2 |  |  | 355.6 |  |  | 1,330.7 |  |  | 535.4 |  |  | 3,957.9 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |
Transferred at a point in time where CDW is principal | 1,581.8 |  |  | 335.2 |  |  | 1,243.3 |  |  | 474.9 |  |  | 3,635.2 |
Transferred at a point in time where CDW is agent | 104.0 |  |  | 19.8 |  |  | 46.2 |  |  | 13.0 |  |  | 183.0 |
Transferred over time where CDW is principal | 50.4 |  |  | 0.6 |  |  | 41.2 |  |  | 47.5 |  |  | 139.7 |
Total Net sales | $ | 1,736.2 |  |  | $ | 355.6 |  |  | $ | 1,330.7 |  |  | $ | 535.4 |  |  | $ | 3,957.9 |
(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.
| Three Months Ended March 31, 2018
(in millions) | Corporate |  | Small Business |  | Public |  | Other |  | Total
Geography(1) |  |  |  |  |  |  |  |  |
United States | $ | 1,564.4 |  |  | $ | 327.6 |  |  | $ | 1,230.0 |  |  | $ | 9.2 |  |  | $ | 3,131.2 |
Rest of World | 1.4 |  |  | — |  |  | — |  |  | 473.8 |  |  | 475.2 |
Total Net sales | 1,565.8 |  |  | 327.6 |  |  | 1,230.0 |  |  | 483.0 |  |  | 3,606.4 |
Major Product and Services |  |  |  |  |  |  |  |  |
Hardware | 1,250.3 |  |  | 273.1 |  |  | 1,007.0 |  |  | 381.1 |  |  | 2,911.5 |
Software | 219.6 |  |  | 42.8 |  |  | 184.3 |  |  | 57.3 |  |  | 504.0 |
Services | 79.3 |  |  | 6.3 |  |  | 34.6 |  |  | 42.7 |  |  | 162.9 |
Other(2) | 16.6 |  |  | 5.4 |  |  | 4.1 |  |  | 1.9 |  |  | 28.0 |
Total Net sales | 1,565.8 |  |  | 327.6 |  |  | 1,230.0 |  |  | 483.0 |  |  | 3,606.4 |
Sales by Channel |  |  |  |  |  |  |  |  |
Corporate | 1,565.8 |  |  | — |  |  | — |  |  | — |  |  | 1,565.8 |
Small Business | — |  |  | 327.6 |  |  | — |  |  | — |  |  | 327.6 |
Government | — |  |  | — |  |  | 418.5 |  |  | — |  |  | 418.5 |
Education | — |  |  | — |  |  | 397.2 |  |  | — |  |  | 397.2 |
Healthcare | — |  |  | — |  |  | 414.3 |  |  | — |  |  | 414.3 |
Other | — |  |  | — |  |  | — |  |  | 483.0 |  |  | 483.0 |
Total Net sales | 1,565.8 |  |  | 327.6 |  |  | 1,230.0 |  |  | 483.0 |  |  | 3,606.4 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |
Transferred at a point in time where CDW is principal | 1,426.3 |  |  | 309.4 |  |  | 1,171.4 |  |  | 433.0 |  |  | 3,340.1 |
Transferred at a point in time where CDW is agent | 92.7 |  |  | 16.5 |  |  | 41.1 |  |  | 15.1 |  |  | 165.4 |
Transferred over time where CDW is principal | 46.8 |  |  | 1.7 |  |  | 17.5 |  |  | 34.9 |  |  | 100.9 |
Total Net sales | $ | 1,565.8 |  |  | $ | 327.6 |  |  | $ | 1,230.0 |  |  | $ | 483.0 |  |  | $ | 3,606.4 |
(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.
The following table presents Net sales by major category for the three months ended March 31, 2019 and 2018. Categories are based upon internal classifications.
| Three Months Ended March 31,
| 2019 |  | 2018
| Dollars in Millions |  | Percentage of Total Net Sales |  | Dollars in Millions |  | Percentage of Total Net Sales
Notebooks/Mobile Devices | $ | 977.1 |  |  | 24.7 | % |  | $ | 865.9 |  |  | 24.0 | %
Netcomm Products | 512.3 |  |  | 12.9 |  |  | 487.3 |  |  | 13.5 |
Desktops | 303.7 |  |  | 7.7 |  |  | 310.8 |  |  | 8.6 |
Enterprise and Data Storage (Including Drives) | 290.6 |  |  | 7.3 |  |  | 250.1 |  |  | 7.0 |
Video | 271.8 |  |  | 6.9 |  |  | 260.8 |  |  | 7.2 |
Other Hardware | 782.4 |  |  | 19.8 |  |  | 736.6 |  |  | 20.4 |
Total Hardware | 3,137.9 |  |  | 79.3 |  |  | 2,911.5 |  |  | 80.7 |
Software(1) | 593.9 |  |  | 15.0 |  |  | 504.0 |  |  | 14.0 |
Services(1) | 196.6 |  |  | 5.0 |  |  | 162.9 |  |  | 4.5 |
Other(2) | 29.5 |  |  | 0.7 |  |  | 28.0 |  |  | 0.8 |
Total Net sales | $ | 3,957.9 |  |  | 100.0 | % |  | $ | 3,606.4 |  |  | 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration