ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 26-0273989 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
75 Tri-State International Lincolnshire, Illinois | 60069 | |
(Address of principal executive offices) | (Zip Code) | |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Page | ||
PART I | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
SIGNATURES | ||
Exhibit Index | ||
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except per-share amounts) | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Assets | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 118.3 | $ | 37.6 | |||
Accounts receivable, net of allowance for doubtful accounts of $5.9 and $6.0, respectively | 2,019.8 | 2,017.4 | |||||
Merchandise inventory | 451.6 | 393.1 | |||||
Miscellaneous receivables | 269.4 | 198.4 | |||||
Prepaid expenses and other | 138.7 | 144.3 | |||||
Total current assets | 2,997.8 | 2,790.8 | |||||
Property and equipment, net | 162.5 | 175.4 | |||||
Goodwill | 2,467.9 | 2,500.4 | |||||
Other intangible assets, net | 1,110.6 | 1,276.4 | |||||
Other assets | 34.0 | 12.3 | |||||
Total assets | $ | 6,772.8 | $ | 6,755.3 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable-trade | $ | 997.7 | $ | 866.5 | |||
Accounts payable-inventory financing | 477.7 | 439.6 | |||||
Current maturities of long-term debt | 18.5 | 27.2 | |||||
Deferred revenue | 180.1 | 151.9 | |||||
Accrued expenses: | |||||||
Compensation | 164.8 | 120.4 | |||||
Interest | 17.5 | 25.1 | |||||
Sales taxes | 30.2 | 38.1 | |||||
Advertising | 68.6 | 52.3 | |||||
Income taxes | 12.7 | — | |||||
Other | 159.0 | 166.2 | |||||
Total current liabilities | 2,126.8 | 1,887.3 | |||||
Long-term liabilities: | |||||||
Debt | 3,222.9 | 3,232.5 | |||||
Deferred income taxes | 393.2 | 469.6 | |||||
Other liabilities | 39.4 | 70.0 | |||||
Total long-term liabilities | 3,655.5 | 3,772.1 | |||||
Commitments and contingencies (Note 7) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value, 100.0 shares authorized, no shares issued or outstanding for both periods | — | — | |||||
Common stock, $0.01 par value, 1,000.0 shares authorized; 160.5 and 168.2 shares issued and outstanding, respectively | 1.6 | 1.7 | |||||
Paid-in capital | 2,843.6 | 2,806.9 | |||||
Accumulated deficit | (1,738.9 | ) | (1,651.6 | ) | |||
Accumulated other comprehensive loss | (115.8 | ) | (61.1 | ) | |||
Total stockholders’ equity | 990.5 | 1,095.9 | |||||
Total liabilities and stockholders’ equity | $ | 6,772.8 | $ | 6,755.3 | |||
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per-share amounts) (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net sales | $ | 3,708.2 | $ | 3,501.1 | $ | 10,489.5 | $ | 9,570.3 | ||||||||
Cost of sales | 3,093.9 | 2,933.9 | 8,740.2 | 8,012.1 | ||||||||||||
Gross profit | 614.3 | 567.2 | 1,749.3 | 1,558.2 | ||||||||||||
Selling and administrative expenses | 334.9 | 321.4 | 1,009.0 | 887.5 | ||||||||||||
Advertising expense | 41.9 | 41.2 | 118.3 | 108.6 | ||||||||||||
Income from operations | 237.5 | 204.6 | 622.0 | 562.1 | ||||||||||||
Interest expense, net | (37.6 | ) | (38.5 | ) | (112.6 | ) | (121.1 | ) | ||||||||
Net loss on extinguishments of long-term debt | (2.1 | ) | — | (2.1 | ) | (24.3 | ) | |||||||||
Gain on remeasurement of equity investment | — | 98.1 | — | 98.1 | ||||||||||||
Other income (expense), net | 0.4 | (18.0 | ) | 2.3 | (9.5 | ) | ||||||||||
Income before income taxes | 198.2 | 246.2 | 509.6 | 505.3 | ||||||||||||
Income tax expense | (72.3 | ) | (95.3 | ) | (188.4 | ) | (191.5 | ) | ||||||||
Net income | $ | 125.9 | $ | 150.9 | $ | 321.2 | $ | 313.8 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.78 | $ | 0.89 | $ | 1.95 | $ | 1.84 | ||||||||
Diluted | $ | 0.76 | $ | 0.88 | $ | 1.93 | $ | 1.82 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 162.1 | 169.6 | 164.8 | 170.9 | ||||||||||||
Diluted | 164.9 | 171.0 | 166.9 | 172.3 | ||||||||||||
Cash dividends declared per common share | $ | 0.1075 | $ | 0.0675 | $ | 0.3225 | $ | 0.2025 | ||||||||
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 125.9 | $ | 150.9 | $ | 321.2 | $ | 313.8 | ||||||||
Foreign currency translation (net of tax (expense) benefit of ($0.1) and $0.2 million, and of $0.3 and $0.5 million, respectively) | (11.9 | ) | (22.4 | ) | (54.7 | ) | (28.7 | ) | ||||||||
Other comprehensive loss, net of tax | (11.9 | ) | (22.4 | ) | (54.7 | ) | (28.7 | ) | ||||||||
Comprehensive income | $ | 114.0 | $ | 128.5 | $ | 266.5 | $ | 285.1 | ||||||||
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (in millions) (unaudited) | ||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||
Balance as of December 31, 2015 | — | $ | — | 168.2 | $ | 1.7 | $ | 2,806.9 | $ | (1,651.6 | ) | $ | (61.1 | ) | $ | 1,095.9 | ||||||||||||||
Net income | — | — | — | — | — | 321.2 | — | 321.2 | ||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | 23.4 | — | — | 23.4 | ||||||||||||||||||||||
Stock option exercises | — | — | 0.3 | — | 6.0 | — | — | 6.0 | ||||||||||||||||||||||
Coworker Stock Purchase Plan | — | — | 0.2 | — | 6.9 | — | — | 6.9 | ||||||||||||||||||||||
Common stock issued for equity-based compensation | — | — | 0.2 | — | — | — | — | — | ||||||||||||||||||||||
Repurchases of common stock | — | — | (8.4 | ) | (0.1 | ) | — | (355.0 | ) | — | (355.1 | ) | ||||||||||||||||||
Dividends | — | — | — | — | 0.4 | (53.5 | ) | — | (53.1 | ) | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | (54.7 | ) | (54.7 | ) | ||||||||||||||||||||
Balance as of September 30, 2016 | — | $ | — | 160.5 | $ | 1.6 | $ | 2,843.6 | $ | (1,738.9 | ) | $ | (115.8 | ) | $ | 990.5 | ||||||||||||||
CDW CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 321.2 | $ | 313.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 190.7 | 165.0 | ||||||
Equity-based compensation expense | 28.1 | 20.0 | ||||||
Deferred income taxes | (74.8 | ) | (32.0 | ) | ||||
Amortization of deferred financing costs, debt premium and debt discount, net | 4.4 | 4.7 | ||||||
Net loss on extinguishments of long-term debt | 2.1 | 24.3 | ||||||
Income from equity investment | — | 11.2 | ||||||
Gain on remeasurement of equity investment | — | (98.1 | ) | |||||
Other | 0.5 | 3.1 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (17.9 | ) | (178.4 | ) | ||||
Merchandise inventory | (64.6 | ) | (54.8 | ) | ||||
Other assets | (101.2 | ) | (101.7 | ) | ||||
Accounts payable-trade | 141.5 | 226.0 | ||||||
Other current liabilities | 97.4 | (17.1 | ) | |||||
Long-term liabilities | (28.1 | ) | 8.9 | |||||
Net cash provided by operating activities | 499.3 | 294.9 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (41.4 | ) | (43.9 | ) | ||||
Premium payments on interest rate cap agreements | (2.1 | ) | (0.5 | ) | ||||
Acquisition of business, net of cash acquired | — | (263.8 | ) | |||||
Net cash used in investing activities | (43.5 | ) | (308.2 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from borrowings under revolving credit facility | 332.1 | 105.0 | ||||||
Repayments of borrowings under revolving credit facility | (332.1 | ) | (105.0 | ) | ||||
Repayments of long-term debt | (17.0 | ) | (26.1 | ) | ||||
Proceeds from issuance of long-term debt | 1,483.0 | 525.0 | ||||||
Payments to extinguish long-term debt | (1,490.4 | ) | (525.3 | ) | ||||
Net change in other long-term obligation | 15.7 | — | ||||||
Payments of debt financing costs | (5.9 | ) | (6.8 | ) | ||||
Net change in accounts payable-inventory financing | 39.2 | 22.6 | ||||||
Proceeds from stock option exercises | 6.0 | 1.7 | ||||||
Excess tax benefits from equity-based compensation | — | 0.4 | ||||||
Proceeds from Coworker Stock Purchase Plan | 6.9 | 6.5 | ||||||
Repurchases of common stock | (355.0 | ) | (193.3 | ) | ||||
Dividends | (53.1 | ) | (34.6 | ) | ||||
Principal payments under capital lease obligations | (0.3 | ) | — | |||||
Net cash used in financing activities | (370.9 | ) | (229.9 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (4.2 | ) | (3.8 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 80.7 | (247.0 | ) | |||||
Cash and cash equivalents—beginning of period | 37.6 | 344.5 | ||||||
Cash and cash equivalents—end of period | $ | 118.3 | $ | 97.5 | ||||
Supplementary disclosure of cash flow information: | ||||||||
Cash paid for Interest, net | $ | (117.4 | ) | $ | (125.4 | ) | ||
Cash paid for Income taxes, net | $ | (234.5 | ) | $ | (218.0 | ) | ||
1. | Description of Business and Summary of Significant Accounting Policies |
2. | Recent Accounting Pronouncements |
3. | Acquisition |
(in millions) | Acquisition-Date Fair Value | |||
Cash | $ | 291.6 | ||
Fair value of CDW common stock(1) | 33.2 | |||
Fair value of previously held equity investment on the date of acquisition(2) | 174.9 | |||
Total consideration | $ | 499.7 | ||
(1) | The Company issued 2 million shares of CDW common stock. The fair value of the common stock was based on the closing market price on July 31, 2015, adjusted for the lack of marketability as the shares of CDW common stock issued to the sellers are subject to a three-year lock up restriction from August 1, 2015. One of the sellers granted 1 million stock options to certain CDW UK coworkers over his shares of CDW common stock received in the transaction. The fair value of these stock options was $22 million, which has been accounted for as post-combination stock-based compensation and is being amortized over the weighted-average requisite service period of 3.2 years. Compensation expense for these options is included in Selling and administrative expenses in the Consolidated Statements of Operations. |
(2) | As a result of the Company obtaining control over CDW UK, the Company’s previously held 35% equity investment was remeasured to fair value, resulting in a gain of $98 million included in Gain on remeasurement of equity investment in the Consolidated Statements of Operations. The fair value of the previously held equity investment was determined by management with the assistance of a third party valuation firm, based on information available as of the acquisition date. |
(in millions) | Acquisition-Date Fair Value(1) | |||
Cash | $ | 27.8 | ||
Accounts receivable | 135.7 | |||
Merchandise inventory | 27.1 | |||
Property and equipment, net | 11.4 | |||
Identified intangible assets(2) | 289.8 | |||
Other assets | 53.5 | |||
Total assets acquired | 545.3 | |||
Accounts payable—trade | (86.1 | ) | ||
Deferred revenue | (57.2 | ) | ||
Other liabilities | (41.7 | ) | ||
Deferred tax liabilities | (55.1 | ) | ||
Debt | (111.5 | ) | ||
Total liabilities assumed | (351.6 | ) | ||
Total identifiable net assets | 193.7 | |||
Goodwill | 306.0 | |||
Total purchase price | $ | 499.7 | ||
(1) | The fair values assigned to the tangible and intangible assets acquired and liabilities assumed were based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. |
(2) | Details of the identified intangible assets are as follows: |
(in millions) | Acquisition-Date Fair Value | Weighted-Average Amortization Period (in years) | |||
Customer relationships | $ | 260.8 | 13 | ||
Customer contracts | 25.9 | 3 | |||
Developed technology | 1.7 | 2 | |||
Trade name | 1.4 | 1 | |||
Total identified intangible assets | $ | 289.8 | |||
(in millions) | Three months ended | Nine months ended | ||||||
Net sales | $ | 3,585.5 | $ | 10,099.2 | ||||
Net income | 101.8 | 273.5 | ||||||
(1) | Excludes acquisition and integration costs directly related to the transaction. |
(2) | Includes additional amortization expense related to the fair value of acquired intangibles. |
(3) | Excludes the Company's share of net income/loss from its previously held 35% equity investment prior to the completion of the acquisition. |
(4) | Includes additional non-cash equity-based compensation related to equity awards granted to CDW UK coworkers after the completion of the acquisition. |
4. | Inventory Financing Agreements |
(in millions) | September 30, 2016 | December 31, 2015 | ||||||
Revolving Loan inventory financing agreement(1) | $ | 468.2 | $ | 427.0 | ||||
Other inventory financing agreements(2) | 9.5 | 12.6 | ||||||
Accounts payable-inventory financing | $ | 477.7 | $ | 439.6 | ||||
(1) | The Senior Secured Asset-Based Revolving Credit Facility (“Revolving Loan”) includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary to facilitate the purchase of inventory from certain vendors on more favorable terms than offered directly by the vendors. |
(2) | As of September 30, 2016 and December 31, 2015, amounts owed under other inventory financing agreements of $1 million or less, for both periods, were collateralized by the inventory purchased under these financing agreements and a second lien on the related accounts receivable. |
5. | Long-Term Debt |
(dollars in millions) | Interest Rate | Principal | Unamortized Discount and Deferred Financing Costs | Total | |||||||||||
Senior secured asset-based revolving credit facility (1) | — | % | $ | — | $ | — | $ | — | |||||||
CDW UK revolving credit facility(2) | — | % | — | — | — | ||||||||||
Senior secured term loan facility | 3.00 | % | 1,486.7 | (15.5 | ) | 1,471.2 | |||||||||
CDW UK term loan | 1.79 | % | 72.6 | (0.6 | ) | 72.0 | |||||||||
Senior notes due 2022 | 6.0 | % | 600.0 | (5.9 | ) | 594.1 | |||||||||
Senior notes due 2023 | 5.0 | % | 525.0 | (5.5 | ) | 519.5 | |||||||||
Senior notes due 2024 | 5.5 | % | 575.0 | (6.1 | ) | 568.9 | |||||||||
Other long-term obligations | 15.7 | — | 15.7 | ||||||||||||
Total debt | 3,275.0 | (33.6 | ) | 3,241.4 | |||||||||||
Less current maturities | (18.5 | ) | — | (18.5 | ) | ||||||||||
Long-term debt, excluding current maturities | $ | 3,256.5 | $ | (33.6 | ) | $ | 3,222.9 | ||||||||
(dollars in millions) | Interest Rate | Principal | Unamortized Discount and Deferred Financing Costs | Total | |||||||||||
Senior secured asset-based revolving credit facility (1) | — | % | $ | — | $ | — | $ | — | |||||||
CDW UK revolving credit facility (2) | — | % | — | — | — | ||||||||||
Senior secured term loan facility | 3.25 | % | 1,498.1 | (6.7 | ) | 1,491.4 | |||||||||
CDW UK Term Loan | 1.98 | % | 88.4 | (0.6 | ) | 87.8 | |||||||||
Senior notes due 2022 | 6.0 | % | 600.0 | (6.6 | ) | 593.4 | |||||||||
Senior notes due 2023 | 5.0 | % | 525.0 | (6.2 | ) | 518.8 | |||||||||
Senior notes due 2024 | 5.5 | % | 575.0 | (6.7 | ) | 568.3 | |||||||||
Total debt | 3,286.5 | (26.8 | ) | 3,259.7 | |||||||||||
Less current maturities | (27.2 | ) | — | (27.2 | ) | ||||||||||
Long-term debt, excluding current maturities | $ | 3,259.3 | $ | (26.8 | ) | $ | 3,232.5 | ||||||||
(1) | The Senior Secured Asset-Based Revolving Credit Facility includes an inventory floorplan sub-facility that enables the Company to maintain an inventory financing agreement with a financial intermediary to facilitate the purchase of inventory from certain vendors on more favorable terms than offered directly by the vendors. As of September 30, 2016, the Company had no outstanding borrowings under the Revolving Loan, $1 million of undrawn letters of credit and $446 million reserved related to the floorplan sub-facility. As of September 30, 2016, the borrowing base was $1,584 million based on the amount of eligible inventory and accounts receivable balances as of August 31, 2016. The Company could have borrowed up to an additional $802 million under the Revolving Loan as of September 30, 2016. |
(2) | The CDW UK Revolving Credit Facility is a multi-currency revolving credit facility expiring on August 1, 2021, under which CDW UK is permitted to borrow an aggregate amount of £50 million ($65 million as of September 30, 2016). |
(in millions) | September 30, 2016 | December 31, 2015 | ||||||
Fair value | $ | 3,376.2 | $ | 3,330.4 | ||||
Carrying value | 3,275.0 | 3,286.5 | ||||||
6. | Earnings per Share |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | |||||||
Basic weighted-average shares outstanding | 162.1 | 169.6 | 164.8 | 170.9 | |||||||
Effect of dilutive securities(1) | 2.8 | 1.4 | 2.1 | 1.4 | |||||||
Diluted weighted-average shares outstanding(2) | 164.9 | 171.0 | 166.9 | 172.3 | |||||||
(1) | The dilutive effect of outstanding stock options, restricted stock units, restricted stock, performance share units and Coworker Stock Purchase Plan units is reflected in the diluted weighted-average shares outstanding using the treasury stock method. |
(2) | There were less than 1 million potential common shares excluded from diluted weighted-average shares outstanding for the three and nine months ended September 30, 2016 and 2015, respectively, as their inclusion would have had an anti-dilutive effect. |
7. | Commitments and Contingencies |
8. | Segment Information |
(in millions) | Corporate | Public | Other | Headquarters | Total | |||||||||||||||
Three Months Ended September 30, 2016: | ||||||||||||||||||||
Net sales | $ | 1,748.9 | $ | 1,640.6 | $ | 318.7 | $ | — | $ | 3,708.2 | ||||||||||
Income (loss) from operations(1) | 138.0 | 120.0 | 10.0 | (30.5 | ) | 237.5 | ||||||||||||||
Depreciation and amortization expense | (25.8 | ) | (11.2 | ) | (7.6 | ) | (18.5 | ) | (63.1 | ) | ||||||||||
Three Months Ended September 30, 2015: | ||||||||||||||||||||
Net sales | $ | 1,764.7 | $ | 1,483.9 | $ | 252.5 | $ | — | $ | 3,501.1 | ||||||||||
Income (loss) from operations(1) | 124.0 | 104.2 | 5.0 | (28.6 | ) | 204.6 | ||||||||||||||
Depreciation and amortization expense | (25.8 | ) | (11.2 | ) | (7.5 | ) | (15.4 | ) | (59.9 | ) | ||||||||||
(in millions) | Corporate | Public | Other | Headquarters | Total | |||||||||||||||
Nine Months Ended September 30, 2016: | ||||||||||||||||||||
Net sales | $ | 5,220.3 | $ | 4,257.1 | $ | 1,012.1 | $ | — | $ | 10,489.5 | ||||||||||
Income (loss) from operations(1) | 391.4 | 287.0 | 27.4 | (83.8 | ) | 622.0 | ||||||||||||||
Depreciation and amortization expense | (77.6 | ) | (33.5 | ) | (24.6 | ) | (55.0 | ) | (190.7 | ) | ||||||||||
Nine Months Ended September 30, 2015: | ||||||||||||||||||||
Net sales | $ | 5,173.6 | $ | 3,889.7 | $ | 507.0 | $ | — | $ | 9,570.3 | ||||||||||
Income (loss) from operations(1) | 381.5 | 250.6 | 14.2 | (84.2 | ) | 562.1 | ||||||||||||||
Depreciation and amortization expense | (77.3 | ) | (33.5 | ) | (10.0 | ) | (44.2 | ) | (165.0 | ) | ||||||||||
(1) | Certain costs related to technology specialists have been reclassified between our Corporate and Public segments. Prior periods have been reclassified to conform to the current period presentation. |
9. | Supplemental Guarantor Information |
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 102.3 | $ | — | $ | 36.0 | $ | — | $ | (20.0 | ) | $ | 118.3 | ||||||||||||
Accounts receivable, net | — | — | 1,816.9 | 202.9 | — | — | 2,019.8 | ||||||||||||||||||||
Merchandise inventory | — | — | 400.3 | 51.3 | — | — | 451.6 | ||||||||||||||||||||
Miscellaneous receivables | — | 98.2 | 154.5 | 16.7 | — | — | 269.4 | ||||||||||||||||||||
Prepaid expenses and other | — | 14.1 | 91.1 | 33.5 | — | — | 138.7 | ||||||||||||||||||||
Total current assets | — | 214.6 | 2,462.8 | 340.4 | — | (20.0 | ) | 2,997.8 | |||||||||||||||||||
Property and equipment, net | — | 104.3 | 48.8 | 9.4 | — | — | 162.5 | ||||||||||||||||||||
Goodwill | — | 751.8 | 1,439.0 | 277.1 | — | — | 2,467.9 | ||||||||||||||||||||
Other intangible assets, net | — | 296.0 | 599.9 | 214.7 | — | — | 1,110.6 | ||||||||||||||||||||
Other assets | 3.3 | 16.3 | 248.1 | 1.5 | — | (235.2 | ) | 34.0 | |||||||||||||||||||
Investment in and advances to subsidiaries | 987.2 | 3,105.1 | — | — | — | (4,092.3 | ) | — | |||||||||||||||||||
Total assets | $ | 990.5 | $ | 4,488.1 | $ | 4,798.6 | $ | 843.1 | $ | — | $ | (4,347.5 | ) | $ | 6,772.8 | ||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable—trade | $ | — | $ | 21.0 | $ | 879.4 | $ | 117.3 | $ | — | $ | (20.0 | ) | $ | 997.7 | ||||||||||||
Accounts payable—inventory financing | — | 1.0 | 469.4 | 7.3 | — | — | 477.7 | ||||||||||||||||||||
Current maturities of long-term debt | — | 14.9 | 3.6 | — | — | — | 18.5 | ||||||||||||||||||||
Deferred revenue | — | — | 114.5 | 65.6 | — | — | 180.1 | ||||||||||||||||||||
Accrued expenses | — | 192.0 | 218.0 | 42.8 | — | — | 452.8 | ||||||||||||||||||||
Total current liabilities | — | 228.9 | 1,684.9 | 233.0 | — | (20.0 | ) | 2,126.8 | |||||||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||||||
Debt | — | 3,138.8 | 12.2 | 71.9 | — | — | 3,222.9 | ||||||||||||||||||||
Deferred income taxes | — | 100.6 | 225.7 | 70.2 | — | (3.3 | ) | 393.2 | |||||||||||||||||||
Other liabilities | — | 32.6 | 3.5 | 235.2 | — | (231.9 | ) | 39.4 | |||||||||||||||||||
Total long-term liabilities | — | 3,272.0 | 241.4 | 377.3 | — | (235.2 | ) | 3,655.5 | |||||||||||||||||||
Total stockholders’ equity | 990.5 | 987.2 | 2,872.3 | 232.8 | — | (4,092.3 | ) | 990.5 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 990.5 | $ | 4,488.1 | $ | 4,798.6 | $ | 843.1 | $ | — | $ | (4,347.5 | ) | $ | 6,772.8 | ||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 45.1 | $ | — | $ | 31.9 | $ | — | $ | (39.4 | ) | $ | 37.6 | ||||||||||||
Accounts receivable, net | — | — | 1,788.6 | 228.8 | — | — | 2,017.4 | ||||||||||||||||||||
Merchandise inventory | — | — | 340.3 | 52.8 | — | — | 393.1 | ||||||||||||||||||||
Miscellaneous receivables | — | 83.7 | 90.1 | 24.6 | — | — | 198.4 | ||||||||||||||||||||
Prepaid expenses and other | — | 13.0 | 50.4 | 84.0 | — | (3.1 | ) | 144.3 | |||||||||||||||||||
Total current assets | — | 141.8 | 2,269.4 | 422.1 | — | (42.5 | ) | 2,790.8 | |||||||||||||||||||
Property and equipment, net | — | 110.0 | 54.1 | 11.3 | — | — | 175.4 | ||||||||||||||||||||
Goodwill | — | 751.8 | 1,439.0 | 309.6 | — | — | 2,500.4 | ||||||||||||||||||||
Other intangible assets, net | — | 306.0 | 704.9 | 265.5 | — | — | 1,276.4 | ||||||||||||||||||||
Other assets | 3.8 | 17.3 | 263.0 | 3.0 | — | (274.8 | ) | 12.3 | |||||||||||||||||||
Investment in and advances to subsidiaries | 1,092.1 | 3,302.0 | — | — | — | (4,394.1 | ) | — | |||||||||||||||||||
Total assets | $ | 1,095.9 | $ | 4,628.9 | $ | 4,730.4 | $ | 1,011.5 | $ | — | $ | (4,711.4 | ) | $ | 6,755.3 | ||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable-trade | $ | — | $ | 31.0 | $ | 727.4 | $ | 147.5 | $ | — | $ | (39.4 | ) | $ | 866.5 | ||||||||||||
Accounts payable-inventory financing | — | — | 428.4 | 11.4 | — | (0.2 | ) | 439.6 | |||||||||||||||||||
Current maturities of long-term debt | — | 15.4 | — | 11.8 | — | — | 27.2 | ||||||||||||||||||||
Deferred revenue | — | — | 77.4 | 74.5 | — | — | 151.9 | ||||||||||||||||||||
Accrued expenses | — | 156.0 | 190.9 | 58.6 | — | (3.4 | ) | 402.1 | |||||||||||||||||||
Total current liabilities | — | 202.4 | 1,424.1 | 303.8 | — | (43.0 | ) | 1,887.3 | |||||||||||||||||||
Long-term liabilities: | |||||||||||||||||||||||||||
Debt | — | 3,156.5 | — | 76.0 | — | — | 3,232.5 | ||||||||||||||||||||
Deferred income taxes | — | 117.3 | 272.8 | 83.4 | — | (3.9 | ) | 469.6 | |||||||||||||||||||
Other liabilities | — | 60.7 | 2.9 | 276.8 | — | (270.4 | ) | 70.0 | |||||||||||||||||||
Total long-term liabilities | — | 3,334.5 | 275.7 | 436.2 | — | (274.3 | ) | 3,772.1 | |||||||||||||||||||
Total stockholders’ equity | 1,095.9 | 1,092.0 | 3,030.6 | 271.5 | — | (4,394.1 | ) | 1,095.9 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,095.9 | $ | 4,628.9 | $ | 4,730.4 | $ | 1,011.5 | $ | — | $ | (4,711.4 | ) | $ | 6,755.3 | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,389.6 | $ | 318.6 | $ | — | $ | — | $ | 3,708.2 | |||||||||||||
Cost of sales | — | — | 2,828.7 | 265.2 | — | — | 3,093.9 | ||||||||||||||||||||
Gross profit | — | — | 560.9 | 53.4 | — | — | 614.3 | ||||||||||||||||||||
Selling and administrative expenses | — | 30.0 | 262.1 | 42.8 | — | — | 334.9 | ||||||||||||||||||||
Advertising expense | — | — | 40.9 | 1.0 | — | — | 41.9 | ||||||||||||||||||||
Income (loss) from operations | — | (30.0 | ) | 257.9 | 9.6 | — | — | 237.5 | |||||||||||||||||||
Interest (expense) income, net | — | (37.6 | ) | 1.8 | (1.8 | ) | — | — | (37.6 | ) | |||||||||||||||||
Net loss on extinguishments of long-term debt | — | (2.1 | ) | — | — | — | — | (2.1 | ) | ||||||||||||||||||
Other income (expense), net | — | 0.7 | 0.3 | (0.6 | ) | — | — | 0.4 | |||||||||||||||||||
Income (loss) before income taxes | — | (69.0 | ) | 260.0 | 7.2 | — | — | 198.2 | |||||||||||||||||||
Income tax benefit (expense) | — | 27.6 | (99.4 | ) | (0.5 | ) | — | — | (72.3 | ) | |||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | — | (41.4 | ) | 160.6 | 6.7 | — | — | 125.9 | |||||||||||||||||||
Equity in earnings of subsidiaries | 125.9 | 167.3 | — | — | — | (293.2 | ) | — | |||||||||||||||||||
Net income | $ | 125.9 | $ | 125.9 | $ | 160.6 | $ | 6.7 | $ | — | $ | (293.2 | ) | $ | 125.9 | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Three Months Ended September 30, 2015 (1) | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 3,248.6 | $ | 252.5 | $ | — | $ | — | $ | 3,501.1 | |||||||||||||
Cost of sales | — | — | 2,720.4 | 213.5 | — | — | 2,933.9 | ||||||||||||||||||||
Gross profit | — | — | 528.2 | 39.0 | — | — | 567.2 | ||||||||||||||||||||
Selling and administrative expenses | — | 26.3 | 261.7 | 33.4 | — | — | 321.4 | ||||||||||||||||||||
Advertising expense | — | — | 39.8 | 1.4 | — | — | 41.2 | ||||||||||||||||||||
Income (loss) from operations | — | (26.3 | ) | 226.7 | 4.2 | — | — | 204.6 | |||||||||||||||||||
Interest (expense) income, net | — | (37.9 | ) | 0.9 | (1.5 | ) | — | — | (38.5 | ) | |||||||||||||||||
Gain on remeasurement of equity investment | — | — | — | 98.1 | — | — | 98.1 | ||||||||||||||||||||
Other income (expense), net | — | (18.8 | ) | 0.4 | 0.4 | — | — | (18.0 | ) | ||||||||||||||||||
Income (loss) before income taxes | — | (83.0 | ) | 228.0 | 101.2 | — | — | 246.2 | |||||||||||||||||||
Income tax benefit (expense) | — | 31.3 | (86.0 | ) | (40.6 | ) | — | — | (95.3 | ) | |||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | — | (51.7 | ) | 142.0 | 60.6 | — | — | 150.9 | |||||||||||||||||||
Equity in earnings of subsidiaries | 150.9 | 202.6 | — | — | — | (353.5 | ) | — | |||||||||||||||||||
Net income | $ | 150.9 | $ | 150.9 | $ | 142.0 | $ | 60.6 | $ | — | $ | (353.5 | ) | $ | 150.9 | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 9,477.4 | $ | 1,012.1 | $ | — | $ | — | $ | 10,489.5 | |||||||||||||
Cost of sales | — | — | 7,891.6 | 848.6 | — | — | 8,740.2 | ||||||||||||||||||||
Gross profit | — | — | 1,585.8 | 163.5 | — | — | 1,749.3 | ||||||||||||||||||||
Selling and administrative expenses | — | 83.1 | 793.2 | 132.7 | — | — | 1,009.0 | ||||||||||||||||||||
Advertising expense | — | — | 114.5 | 3.8 | — | — | 118.3 | ||||||||||||||||||||
Income (loss) from operations | — | (83.1 | ) | 678.1 | 27.0 | — | — | 622.0 | |||||||||||||||||||
Interest (expense) income, net | — | (112.4 | ) | 5.6 | (5.8 | ) | — | — | (112.6 | ) | |||||||||||||||||
Net loss on extinguishments of long-term debt | — | (2.1 | ) | — | — | — | — | (2.1 | ) | ||||||||||||||||||
Other income, net | — | 0.7 | 1.0 | 0.6 | — | — | 2.3 | ||||||||||||||||||||
Income (loss) before income taxes | — | (196.9 | ) | 684.7 | 21.8 | — | — | 509.6 | |||||||||||||||||||
Income tax benefit (expense) | — | 76.2 | (259.9 | ) | (4.7 | ) | — | — | (188.4 | ) | |||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | — | (120.7 | ) | 424.8 | 17.1 | — | — | 321.2 | |||||||||||||||||||
Equity in earnings of subsidiaries | 321.2 | 441.9 | — | — | — | (763.1 | ) | — | |||||||||||||||||||
Net income | $ | 321.2 | $ | 321.2 | $ | 424.8 | $ | 17.1 | $ | — | $ | (763.1 | ) | $ | 321.2 | ||||||||||||
Consolidating Statement of Operations | |||||||||||||||||||||||||||
Nine Months Ended September30, 2015 (1) | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 9,063.3 | $ | 507.0 | $ | — | $ | — | $ | 9,570.3 | |||||||||||||
Cost of sales | — | — | 7,574.6 | 437.5 | — | — | 8,012.1 | ||||||||||||||||||||
Gross profit | — | — | 1,488.7 | 69.5 | — | — | 1,558.2 | ||||||||||||||||||||
Selling and administrative expenses | — | 81.5 | 753.1 | 52.9 | — | — | 887.5 | ||||||||||||||||||||
Advertising expense | — | — | 105.4 | 3.2 | — | — | 108.6 | ||||||||||||||||||||
Income (loss) from operations | — | (81.5 | ) | 630.2 | 13.4 | — | — | 562.1 | |||||||||||||||||||
Interest (expense) income, net | — | (120.7 | ) | 0.9 | (1.3 | ) | — | — | (121.1 | ) | |||||||||||||||||
Net loss on extinguishments of long-term debt | — | (24.3 | ) | — | — | — | — | (24.3 | ) | ||||||||||||||||||
Gain on remeasurement of equity investment | — | — | — | 98.1 | — | — | 98.1 | ||||||||||||||||||||
Other income (expense), net | — | (10.9 | ) | 1.4 | — | — | — | (9.5 | ) | ||||||||||||||||||
Income (loss) before income taxes | — | (237.4 | ) | 632.5 | 110.2 | — | — | 505.3 | |||||||||||||||||||
Income tax benefit (expense) | — | 89.1 | (237.5 | ) | (43.1 | ) | — | — | (191.5 | ) | |||||||||||||||||
Income (loss) before equity in earnings of subsidiaries | — | (148.3 | ) | 395.0 | 67.1 | — | — | 313.8 | |||||||||||||||||||
Equity in earnings of subsidiaries | 313.8 | 462.1 | — | — | — | (775.9 | ) | — | |||||||||||||||||||
Net income | $ | 313.8 | $ | 313.8 | $ | 395.0 | $ | 67.1 | $ | — | $ | (775.9 | ) | $ | 313.8 | ||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Comprehensive income | $ | 114.0 | $ | 114.0 | $ | 160.6 | $ | (5.2 | ) | $ | — | $ | (269.4 | ) | $ | 114.0 | |||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Comprehensive income | $ | 128.5 | $ | 128.5 | $ | 142.0 | $ | 38.2 | $ | — | $ | (308.7 | ) | $ | 128.5 | ||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Comprehensive income | $ | 266.5 | $ | 266.5 | $ | 424.8 | $ | (37.6 | ) | $ | — | $ | (653.7 | ) | $ | 266.5 | |||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Comprehensive income | $ | 285.1 | $ | 285.1 | $ | 395.0 | $ | 38.4 | $ | — | $ | (718.5 | ) | $ | 285.1 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (91.9 | ) | $ | 495.7 | $ | 62.8 | $ | — | $ | 32.7 | $ | 499.3 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Capital expenditures | — | (35.4 | ) | (3.2 | ) | (2.8 | ) | — | — | (41.4 | ) | ||||||||||||||||
Premium payments on interest rate cap agreements | — | (2.1 | ) | — | — | — | — | (2.1 | ) | ||||||||||||||||||
Net cash used in investing activities | — | (37.5 | ) | (3.2 | ) | (2.8 | ) | — | — | (43.5 | ) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 329.7 | — | 2.4 | — | — | 332.1 | ||||||||||||||||||||
Repayments of borrowings under revolving credit facility | — | (329.7 | ) | — | (2.4 | ) | — | — | (332.1 | ) | |||||||||||||||||
Repayments of long-term debt | — | (11.4 | ) | — | (5.6 | ) | — | — | (17.0 | ) | |||||||||||||||||
Proceeds from the issuance of long-term debt | — | 1,483.0 | — | — | — | — | 1,483.0 | ||||||||||||||||||||
Payments to extinguish long-term debt | — | (1,490.4 | ) | — | — | — | — | (1,490.4 | ) | ||||||||||||||||||
Net change in other long-term obligation | — | — | 15.7 | — | — | — | 15.7 | ||||||||||||||||||||
Payments of debt financing costs | — | (4.5 | ) | — | (1.4 | ) | — | — | (5.9 | ) | |||||||||||||||||
Net change in accounts payable-inventory financing | — | 1.4 | 41.0 | (3.2 | ) | — | — | 39.2 | |||||||||||||||||||
Proceeds from stock option exercises | — | 6.0 | — | — | — | — | 6.0 | ||||||||||||||||||||
Proceeds from Coworker Stock Purchase Plan | — | 6.9 | — | — | — | — | 6.9 | ||||||||||||||||||||
Repurchases of common stock | (355.0 | ) | — | — | — | — | — | (355.0 | ) | ||||||||||||||||||
Dividends | (53.1 | ) | — | — | — | — | — | (53.1 | ) | ||||||||||||||||||
Principal payments under capital lease obligations | — | — | 0.8 | (1.1 | ) | — | — | (0.3 | ) | ||||||||||||||||||
Repayment of intercompany loan | — | — | 40.4 | (40.4 | ) | — | — | — | |||||||||||||||||||
Distributions and advances from (to) affiliates | 408.1 | 195.6 | (590.4 | ) | — | — | (13.3 | ) | — | ||||||||||||||||||
Net cash (used in) provided by financing activities | — | 186.6 | (492.5 | ) | (51.7 | ) | — | (13.3 | ) | (370.9 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (4.2 | ) | — | — | (4.2 | ) | ||||||||||||||||||
Net increase in cash and cash equivalents | — | 57.2 | — | 4.1 | — | 19.4 | 80.7 | ||||||||||||||||||||
Cash and cash equivalents—beginning of period | — | 45.1 | — | 31.9 | — | (39.4 | ) | 37.6 | |||||||||||||||||||
Cash and cash equivalents—end of period | $ | — | $ | 102.3 | $ | — | $ | 36.0 | $ | — | $ | (20.0 | ) | $ | 118.3 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||
(in millions) | Parent Guarantor | Subsidiary Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiary | Co-Issuer | Consolidating Adjustments | Consolidated | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (36.2 | ) | $ | 331.7 | $ | 47.1 | $ | — | $ | (47.7 | ) | $ | 294.9 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Capital expenditures | — | (35.2 | ) | (7.4 | ) | (1.3 | ) | — | — | (43.9 | ) | ||||||||||||||||
Premium payments on interest rate cap agreements | — | (0.5 | ) | — | — | — | — | (0.5 | ) | ||||||||||||||||||
Acquisition of business, net of cash acquired | — | — | — | (263.8 | ) | — | — | $ | (263.8 | ) | |||||||||||||||||
Net cash used in investing activities | — | (35.7 | ) | (7.4 | ) | (265.1 | ) | — | — | (308.2 | ) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 105.0 | — | — | — | — | $ | 105.0 | |||||||||||||||||||
Repayments of borrowings under revolving credit facility | — | (105.0 | ) | — | — | — | — | $ | (105.0 | ) | |||||||||||||||||
Repayments of long-term debt | — | (11.6 | ) | — | (14.5 | ) | — | — | (26.1 | ) | |||||||||||||||||
Proceeds from issuance of long-term debt | — | 525.0 | — | — | — | — | 525.0 | ||||||||||||||||||||
Payments to extinguish long-term debt | — | (525.3 | ) | — | — | — | — | (525.3 | ) | ||||||||||||||||||
Payment of debt financing costs | — | (6.8 | ) | — | — | — | — | (6.8 | ) | ||||||||||||||||||
Net change in accounts payable - inventory financing | — | — | 22.6 | — | — | — | 22.6 | ||||||||||||||||||||
Proceeds from stock option exercises | — | 1.7 | — | — | — | — | 1.7 | ||||||||||||||||||||
Excess tax benefits from equity-based compensation | — | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||||
Proceeds from Coworker Stock Purchase Plan | — | 6.5 | — | — | — | — | 6.5 | ||||||||||||||||||||
Repurchases of common stock | (193.3 | ) | — | — | — | — | — | (193.3 | ) | ||||||||||||||||||
Dividends | (34.6 | ) | — | — | — | — | — | (34.6 | ) | ||||||||||||||||||
Distributions and advances from (to) affiliates | 227.9 | (218.3 | ) | (346.9 | ) | 263.6 | — | 73.7 | — | ||||||||||||||||||
Net cash (used in) provided by financing activities | — | (228.4 | ) | (324.3 | ) | 249.1 | — | 73.7 | (229.9 | ) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3.8 | ) | — | — | (3.8 | ) | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (300.3 | ) | — | 27.3 | — | 26.0 | (247.0 | ) | ||||||||||||||||||
Cash and cash equivalents—beginning of period | — | 346.4 | — | 24.6 | — | (26.5 | ) | 344.5 | |||||||||||||||||||
Cash and cash equivalents—end of period | $ | — | $ | 46.1 | $ | — | $ | 51.9 | $ | — | $ | (0.5 | ) | $ | 97.5 | ||||||||||||
10. | Subsequent Events |
• | Our Public segment sales are impacted by government spending policies, budget priorities and revenue levels. An adverse change in any of these factors could cause our Public segment customers to reduce their purchases or to terminate or not renew contracts with us, which could adversely affect our business, results of operations or cash flows. Meeting public safety needs continues to drive our sales growth from our state and local customers and we continue to benefit from the strategic changes made to better align with federal government purchasing programs for our federal customers. Sales growth in our education sales channel continues to be benefited by the implementation of projects related to the U.S. Federal Communications Commission E-Rate program and schools developing digital testing and curriculum programs. Although the Healthcare industry continues to experience consolidation, some customers that have moved through the merger process began to implement projects that had been on hold previously. |
• | An important factor affecting our ability to generate sales and achieve our targeted operating results is the impact of general economic conditions on our customers’ willingness to spend on information technology. Global economic signals in 2016 continue to be mixed and the ongoing impact of economic uncertainty continued to cause many customers in our Medium/Large sales channel to put longer tail projects on hold and to extend decision cycles. Also, there continues to be substantial uncertainty regarding the impact of the Referendum on the United Kingdom’s (“UK”) Membership of the European Union (“EU”) (referred to as “Brexit”), advising for the exit of the UK from the EU. Potential adverse consequences of Brexit such as global market uncertainty, volatility in currency exchange rates, greater restrictions on imports and exports between UK and EU countries and increased regulatory complexities could have a negative impact on our business, financial condition and results of operations. In addition, uncertainties related to potential changes in tax and regulatory policy, potential interest rate increases, weakening consumer and business confidence or increased unemployment could result in reduced or deferred spending on information technology products and services by our customers and result in increased competitive pricing pressures. We continue to closely monitor macroeconomic conditions and adjust our operational plans, including hiring plans, appropriately. |
• | We believe that our customers’ transition to more complex technology solutions will continue to be an important growth area for us in the future. However, because the market for technology products and services is highly competitive, our success at capitalizing on this transition will be based on our ability to tailor specific solutions to customer needs, the quality and breadth of our product and service offerings, the knowledge and expertise of our sales force, price, product availability and speed of delivery. |
Three Months Ended September 30, | |||||||
(dollars in millions) | 2016 | 2015 | |||||
Net sales | $ | 3,708.2 | $ | 3,501.1 | |||
Gross profit | 614.3 | 567.2 | |||||
Income from operations | 237.5 | 204.6 | |||||
Net income | 125.9 | 150.9 | |||||
Non-GAAP net income | 160.3 | 143.2 | |||||
Adjusted EBITDA | 310.4 | 282.1 | |||||
Average daily sales | 57.9 | 54.7 | |||||
Net debt (defined as total debt minus cash and cash equivalents) (1) | 3,123.1 | 3,170.3 | |||||
Cash conversion cycle (in days) (2) | 18 | 18 | |||||
(1) | As a result of the adoption of Accounting Standards Update (ASU) 2015-15, which allows companies to present deferred financing costs for line-of-credit arrangements as an asset, we retrospectively adjusted the deferred financing costs and long-term debt liability presented in the September 30, 2015 Consolidated Balance Sheet to align it to the current period presentation. |
(2) | Cash conversion cycle is defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable, based on a rolling three-month average. |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | |||||||||||||
Dollars in Millions | Percentage of Net Sales | Dollars in Millions | Percentage of Net Sales | |||||||||||
Net sales | $ | 3,708.2 | 100.0 | % | $ | 3,501.1 | 100.0 | % | ||||||
Cost of sales | 3,093.9 | 83.4 | 2,933.9 | 83.8 | ||||||||||
Gross profit | 614.3 | 16.6 | 567.2 | 16.2 | ||||||||||
Selling and administrative expenses | 334.9 | 9.0 | 321.4 | 9.2 | ||||||||||
Advertising expense | 41.9 | 1.1 | 41.2 | 1.2 | ||||||||||
Income from operations | 237.5 | 6.4 | 204.6 | 5.8 | ||||||||||
Interest expense, net | (37.6 | ) | (1.0 | ) | (38.5 | ) | (1.1 | ) | ||||||
Net loss on extinguishments of long-term debt | (2.1 | ) | (0.1 | ) | — | — | ||||||||
Gain on remeasurement of equity investment | — | — | 98.1 | 2.8 | ||||||||||
Other income, net | 0.4 | — | (18.0 | ) | (0.5 | ) | ||||||||
Income before income taxes | 198.2 | 5.3 | 246.2 | 7.0 | ||||||||||
Income tax expense | (72.3 | ) | (1.9 | ) | (95.3 | ) | (2.7 | ) | ||||||
Net income | $ | 125.9 | 3.4 | % | $ | 150.9 | 4.3 | % | ||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
(dollars in millions) | Net Sales | Percentage of Total Net Sales | Net Sales(1) | Percentage of Total Net Sales | Dollar Change | Percent Change(2) | Average Daily Sales Percent Change(2) | |||||||||||||||||
Corporate: | ||||||||||||||||||||||||
Medium / Large | $ | 1,463.5 | 39.5 | % | $ | 1,490.6 | 42.6 | % | $ | (27.1 | ) | (1.8 | )% | (1.8 | )% | |||||||||
Small Business | 285.4 | 7.7 | 274.1 | 7.8 | 11.2 | 4.1 | 4.1 | |||||||||||||||||
Total Corporate | 1,748.9 | 47.2 | 1,764.7 | 50.4 | (15.8 | ) | (0.9 | ) | (0.9 | ) | ||||||||||||||
Public: | ||||||||||||||||||||||||
Government | 537.5 | 14.5 | 493.9 | 14.1 | 43.7 | 8.8 | 8.8 | |||||||||||||||||
Education | 671.4 | 18.1 | 583.3 | 16.7 | 88.1 | 15.1 | 15.1 | |||||||||||||||||
Healthcare | 431.7 | 11.6 | 406.7 | 11.6 | 24.9 | 6.1 | 6.1 | |||||||||||||||||
Total Public | 1,640.6 | 44.2 | 1,483.9 | 42.4 | 156.7 | 10.6 | 10.6 | |||||||||||||||||
Other | 318.7 | 8.6 | 252.5 | 7.2 | 66.2 | 26.2 | 26.2 | |||||||||||||||||
Total net sales | $ | 3,708.2 | 100.0 | % | $ | 3,501.1 | 100.0 | % | $ | 207.1 | 5.9 | % | 5.9 | % | ||||||||||
(1) | Effective January 1, 2016, CDW Advanced Services is included in our Corporate and Public segments and Other is comprised of CDW Canada and CDW UK. Prior periods have been reclassified to conform to the current period presentation. |
(2) | There were 64 selling days for both the three months ended September 30, 2016 and 2015. |
Three Months Ended September 30, | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
Dollars in Millions | Operating Margin Percentage | Dollars in Millions | Operating Margin Percentage | Percent Change in Income from Operations | |||||||||||||
Segments:(1) | |||||||||||||||||
Corporate(2) | $ | 138.0 | 7.9 | % | $ | 124.0 | 7.0 | % | 11.3 | % | |||||||
Public(2) | 120.0 | 7.3 | 104.2 | 7.0 | 15.2 | ||||||||||||
Other(3)(4) | 10.0 | 3.1 | 5.0 | 2.0 | 98.9 | ||||||||||||
Headquarters(5) | (30.5 | ) | nm* | (28.6 | ) | nm* | 6.7 | ||||||||||
Total income from operations | $ | 237.5 | 6.4 | % | $ | 204.6 | 5.8 | % | 16.1 | % | |||||||
(1) | Segment income from operations includes the segment’s direct operating income, allocations for Headquarters’ costs, allocations for income and expenses from logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors. |
(2) | Certain costs related to technology specialists have been reclassified between our Corporate and Public segments. The prior period has been reclassified to conform to the current period presentation. |
(3) | Effective January 1, 2016, CDW Advanced Services is included in our Corporate and Public segments and Other is comprised of CDW Canada and CDW UK. The prior period has been reclassified to conform to the current period presentation. |
(4) | Includes the financial results for our other operating segments, CDW Canada and CDW UK, which do not meet the reportable segment quantitative thresholds. |
(5) | Includes certain Headquarters’ function costs that are not allocated to the segments. Certain Headquarters expenses have been allocated to CDW Canada in 2016. The prior period has been reclassified to conform to the current period presentation. |
Three Months Ended September 30, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Net income | $ | 125.9 | $ | 150.9 | ||||
Amortization of intangibles(1) | 46.5 | 45.6 | ||||||
Non-cash equity-based compensation | 10.0 | 7.8 | ||||||
Net loss on extinguishments of long-term debt | 2.1 | — | ||||||
Non-cash equity-based compensation related to equity investment(2) | — | 20.0 | ||||||
Acquisition and integration expenses(3) | 2.4 | 7.0 | ||||||
Gain on remeasurement of equity investment(4) | — | (98.1 | ) | |||||
Other adjustments(5) | (3.3 | ) | 0.9 | |||||
Aggregate adjustment for income taxes(6) | (23.3 | ) | 9.1 | |||||
Non-GAAP net income(7) | $ | 160.3 | $ | 143.2 | ||||
(1) | Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names. |
(2) | Represents our 35% share of an expense related to certain equity awards granted by one of the sellers to CDW UK coworkers in July 2015 prior to our acquisition. |
(3) | Comprises expenses related to CDW UK. |
(4) | Represents the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK. |
(5) | Primarily includes our share of settlement payments received from the Dynamic Random Access Memory class action lawsuits during the three months ended September 30, 2016. Also includes expenses related to the consolidation of office locations north of Chicago during the three months ended September 30, 2016 and 2015. |
(6) | For the three months ended September 30, 2016, the aggregate adjustment for income taxes is based on applying a statutory effective tax rate of 36.0% to the amount of pre-tax adjustments. In addition, the aggregate adjustment for income taxes includes $2.7 million of discrete tax benefits recorded in the quarter: $1.5 million related to the adjustment to the deferred tax liability for the acquired intangibles due to a future tax rate reduction in the UK, and $1.2 million for the stock compensation tax benefit related to the adoption of ASU 2016-09. For the three months ended September 30, 2015, the adjustment was based on a statutory effective tax rate of 38.0% (39.0% prior to the CDW UK acquisition), except for the non-cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK, which were tax effected at a rate of 35.4%. Includes additional tax expense during the three months ended September 30, 2015 of $3.3 million as a result of recording withholding tax on the unremitted earnings of the Company's Canadian subsidiary. |
(7) | Includes the impact of consolidating two months of CDW UK's financial results for the three months ended September 30, 2015. |
Three Months Ended September 30, | |||||||||||||
(in millions) | 2016 | Percentage of Net Sales | 2015 | Percentage of Net Sales | |||||||||
Net income | $ | 125.9 | $ | 150.9 | |||||||||
Depreciation and amortization | 63.1 | 59.9 | |||||||||||
Income tax expense | 72.3 | 95.3 | |||||||||||
Interest expense, net | 37.6 | 38.5 | |||||||||||
EBITDA | 298.9 | 8.1 | % | 344.6 | 9.8% | ||||||||
Adjustments: | |||||||||||||
Non-cash equity-based compensation | 10.0 | 7.8 | |||||||||||
Net loss on extinguishments of long-term debt | 2.1 | — | |||||||||||
(Income) loss from equity investments(1) | (0.2 | ) | 18.8 | ||||||||||
Acquisition and integration expenses(2) | 2.4 | 7.0 | |||||||||||
Gain on remeasurement of equity investment(3) | — | (98.1 | ) | ||||||||||
Other adjustments(4) | (2.8 | ) | 2.0 | ||||||||||
Total adjustments | 11.5 | (62.5 | ) | ||||||||||
Adjusted EBITDA(5) | $ | 310.4 | 8.4 | % | $ | 282.1 | 8.1% | ||||||
(1) | Represents our share of net income/loss from our equity investments. Our 35% share of CDW UK's net loss includes our 35% share of an expense related to certain equity awards granted by one of the sellers to CDW UK coworkers in July 2015 prior to the acquisition. |
(2) | Comprises expenses related to CDW UK. |
(3) | Represents the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK. |
(4) | Primarily includes our share of the settlement payments received from the Dynamic Random Access Memory class action lawsuits during the three months ended September 30, 2016, and the favorable resolution of a local sales tax matter during the three months ended September 30, 2016. Also includes expenses related to the consolidation of office locations north of Chicago and historical retention costs during the three months ended September 30, 2016 and 2015. |
(5) | Includes the impact of consolidating two months of CDW UK's financial results for the three months ended September 30, 2015. |
Three Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | % Change | Average Daily % Change(1) | ||||||||||
Consolidated Net sales, as reported | $ | 3,708.2 | $ | 3,501.1 | 5.9 | % | 5.9 | % | ||||||
Foreign currency translation(2) | — | (20.4 | ) | |||||||||||
Consolidated Net sales, on a constant currency basis | $ | 3,708.2 | $ | 3,480.7 | 6.5 | % | 6.5 | % | ||||||
(1) | There were 64 selling days for both the three months ended September 30, 2016 and 2015. |
(2) | Represents the effect of translating the prior year results of CDW Canada and the two months of CDW UK's results at the average exchange rates applicable in the current year. |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | |||||||||||||
Dollars in Millions | Percentage of Net Sales | Dollars in Millions | Percentage of Net Sales | |||||||||||
Net sales | $ | 10,489.5 | 100.0 | % | $ | 9,570.3 | 100.0 | % | ||||||
Cost of sales | 8,740.2 | 83.3 | 8,012.1 | 83.7 | ||||||||||
Gross profit | 1,749.3 | 16.7 | 1,558.2 | 16.3 | ||||||||||
Selling and administrative expenses | 1,009.0 | 9.6 | 887.5 | 9.3 | ||||||||||
Advertising expense | 118.3 | 1.1 | 108.6 | 1.1 | ||||||||||
Income from operations | 622.0 | 5.9 | 562.1 | 5.9 | ||||||||||
Interest expense, net | (112.6 | ) | (1.1 | ) | (121.1 | ) | (1.3 | ) | ||||||
Net loss on extinguishments of long-term debt | (2.1 | ) | — | (24.3 | ) | (0.3 | ) | |||||||
Gain on remeasurement of equity investment | — | — | 98.1 | 1.0 | ||||||||||
Other income (expense), net | 2.3 | — | (9.5 | ) | (0.1 | ) | ||||||||
Income before income taxes | 509.6 | 4.9 | 505.3 | 5.3 | ||||||||||
Income tax expense | (188.4 | ) | (1.8 | ) | (191.5 | ) | (2.0 | ) | ||||||
Net income | $ | 321.2 | 3.1 | % | $ | 313.8 | 3.3 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
(in millions) | Net Sales | Percentage of Total Net Sales | Net Sales(1) | Percentage of Total Net Sales | Dollar Change | Percent Change(2) | Average Daily Sales Percent Change(2) | |||||||||||||||||
Corporate: | ||||||||||||||||||||||||
Medium / Large | $ | 4,363.1 | 41.6 | % | $ | 4,353.7 | 45.5 | % | $ | 9.4 | 0.2 | % | (0.3 | )% | ||||||||||
Small Business | 857.2 | 8.2 | 819.9 | 8.6 | 37.3 | 4.5 | 4.0 | |||||||||||||||||
Total Corporate | 5,220.3 | 49.8 | 5,173.6 | 54.1 | 46.7 | 0.9 | 0.4 | |||||||||||||||||
Public: | ||||||||||||||||||||||||
Government | 1,334.1 | 12.7 | 1,178.9 | 12.3 | 155.1 | 13.2 | 12.6 | |||||||||||||||||
Education | 1,652.4 | 15.8 | 1,477.6 | 15.4 | 174.9 | 11.8 | 11.3 | |||||||||||||||||
Healthcare | 1,270.6 | 12.1 | 1,233.2 | 12.9 | 37.4 | 3.0 | 2.5 | |||||||||||||||||
Total Public | 4,257.1 | 40.6 | 3,889.7 | 40.6 | 367.4 | 9.4 | 8.9 | |||||||||||||||||
Other | 1,012.1 | 9.6 | 507.0 | 5.3 | 505.1 | 99.6 | 98.6 | |||||||||||||||||
Total net sales | $ | 10,489.5 | 100.0 | % | $ | 9,570.3 | 100.0 | % | $ | 919.2 | 9.6 | % | 9.0 | % | ||||||||||
(1) | Effective January 1, 2016, CDW Advanced Services is included in our Corporate and Public segments and Other is comprised of CDW Canada and CDW UK. Prior periods have been reclassified to conform to the current period presentation. |
(2) | There were 192 and 191 selling days for the nine months ended September 30, 2016 and 2015, respectively. |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
Dollars in Millions | Operating Margin Percentage | Dollars in Millions | Operating Margin Percentage | Percent Change in Income (Loss) from Operations | ||||||||||||
Segments: (1) | ||||||||||||||||
Corporate(2) | $ | 391.4 | 7.5 | % | 381.5 | 7.4 | % | 2.6 | % | |||||||
Public(2) | 287.0 | 6.7 | 250.6 | 6.4 | 14.5 | |||||||||||
Other(3)(4) | 27.4 | 2.7 | 14.2 | 2.8 | 93.1 | |||||||||||
Headquarters (5) | (83.8 | ) | nm* | (84.2 | ) | nm* | (0.4 | ) | ||||||||
Total income from operations | $ | 622.0 | 5.9 | % | 562.1 | 5.9 | % | 10.6 | % | |||||||
(1) | Segment income from operations includes the segment’s direct operating income and allocations for Headquarters’ costs, allocations for logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors. |
(2) | Certain costs related to technology specialists have been reclassified between our Corporate and Public segments. The prior period has been reclassified to conform to the current period presentation. |
(3) | Effective January 1, 2016, CDW Advanced Services is included in our Corporate and Public segments and Other is comprised of CDW Canada and CDW UK. The prior period has been reclassified to conform to the current period presentation. |
(4) | Includes the financial results for our other operating segments, CDW Canada and CDW UK, which do not meet the reportable segment quantitative thresholds. |
(5) | Includes certain Headquarters' function costs that are not allocated to the segments. Certain Headquarters expenses have been allocated to CDW Canada in 2016. The prior period has been reclassified to conform to the current period presentation. |
Month of Extinguishment | Debt Instrument | (in millions) | ||||||||
Amount Extinguished | Loss Recognized | |||||||||
August 2016 | Senior Secured Term Loan Facility | $ | 1,490.4 | $ | (2.1 | ) | ||||
Total Loss Recognized | $ | (2.1 | ) | |||||||
March 2015 | 2019 Senior Notes | $ | 503.9 | $ | (24.3 | ) | (1) | |||
Total Loss Recognized | $ | (24.3 | ) | |||||||
(1) | We repaid all of the remaining aggregate principal amount outstanding. The loss recognized represents the difference between the aggregate principal amount and the net carrying amount of the purchased debt, adjusted for the remaining unamortized deferred financing costs and premium. |
Nine Months Ended September 30, | ||||||||
(in millions) | 2016 | 2015 | ||||||
Net income | $ | 321.2 | $ | 313.8 | ||||
Amortization of intangibles(1) | 141.0 | 126.1 | ||||||
Non-cash equity-based compensation | 28.1 | 20.0 | ||||||
Non-cash equity-based compensation related to equity investment(2) | — | 20.0 | ||||||
Net loss on extinguishments of long-term debt | 2.1 | 24.3 | ||||||
Acquisition and integration expenses(3) | 6.2 | 8.7 | ||||||
Gain on remeasurement of equity investment(4) | — | (98.1 | ) | |||||
Other adjustments(5) | (6.0 | ) | 2.5 | |||||
Aggregate adjustment for income taxes(6) | (64.0 | ) | (37.5 | ) | ||||
Non-GAAP net income(7) | $ | 428.6 | $ | 379.8 | ||||
(1) | Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts and trade names. |
(2) | Represents our 35% share of an expense related to certain equity awards granted by one of the sellers to CDW UK coworkers in July 2015 prior to our acquisition. |
(3) | Comprises expenses related to CDW UK. |
(4) | Represents the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK. |
(5) | Primarily includes our share of settlement payments received from the Dynamic Random Access Memory class action lawsuits during the nine months ended September 30, 2016 and the favorable resolution of a local sales tax matter. Also includes expenses related to the consolidation of office locations north of Chicago during the nine months ended September 30, 2016 and 2015. |
(6) | For the nine months ended September 30, 2016, the aggregate adjustment for income taxes is based on applying a statutory effective tax rate of 36.0% to the amount of pre-tax adjustments. In addition, the aggregate adjustment for income taxes includes $2.7 million of discrete tax benefits recorded in the quarter: $1.5 million related to the adjustment to the deferred tax liability for the acquired intangibles due to a future tax rate reduction in the UK, and $1.2 million for the stock compensation tax benefit related to the adoption of ASU 2016-09. For the nine months ended September 30, 2015, the adjustment was based on a statutory effective tax rate of 38.0% (39.0% prior to the CDW UK acquisition), except for the non-cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK, which were tax effected at a rate of 35.4%. Includes additional tax expense during the nine months ended September 30, 2015 of $3.3 million as a result of recording withholding tax on the unremitted earnings of our Canadian subsidiary. |
(7) | Includes the impact of consolidating two months of CDW UK's financial results for the nine months ended September 30, 2015. |
Nine Months Ended September 30, | ||||||||||||
(in millions) | 2016 | Percentage of Net Sales | 2015 | Percentage of Net Sales | ||||||||
Net income | $ | 321.2 | $ | 313.8 | ||||||||
Depreciation and amortization | 190.7 | 165.0 | ||||||||||
Income tax expense | 188.4 | 191.5 | ||||||||||
Interest expense, net | 112.6 | 121.1 | ||||||||||
EBITDA | 812.9 | 7.8% | 791.4 | 8.3% | ||||||||
Adjustments: | ||||||||||||
Non-cash equity-based compensation | 28.1 | 20.0 | ||||||||||
Net loss on extinguishments of long-term debt | 2.1 | 24.3 | ||||||||||
(Income) loss from equity investments(1) | (0.9 | ) | 10.3 | |||||||||
Acquisition and integration expenses(2) | 6.2 | 8.7 | ||||||||||
Gain on remeasurement of equity investment(3) | — | (98.1 | ) | |||||||||
Other adjustments(4) | (4.8 | ) | 4.4 | |||||||||
Total adjustments | 30.7 | (30.4 | ) | |||||||||
Adjusted EBITDA(5) | $ | 843.6 | 8.0% | $ | 761.0 | 8.0% | ||||||
(1) | Represents our share of net income/loss from our equity investments. Our 35% share of CDW UK's net loss includes our 35% share of an expense related to certain equity awards granted by one of the sellers to CDW UK coworkers in July 2015 prior to the acquisition. |
(2) | Comprises expenses related to CDW UK. |
(3) | Represents the gain resulting from the remeasurement of our previously held 35% equity investment to fair value upon the completion of the acquisition of CDW UK. |
(4) | Primarily includes our share of the settlement payments received from the Dynamic Random Access Memory class action lawsuits during the nine months ended September 30, 2016, and the favorable resolution of a local sales tax matter during the nine months ended September 30, 2016. Also includes expenses related to the consolidation of office locations north of Chicago and historical retention costs during the nine months ended September 30, 2016 and 2015. |
(5) | Includes the impact of consolidating two months of CDW UK's financial results for the nine months ended September 30, 2015. |
Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2015 | % Change | Average Daily % Change(1) | ||||||||||
Consolidated Net sales, as reported | $ | 10,489.5 | $ | 9,570.3 | 9.6 | % | 9.0 | % | ||||||
Foreign currency translation(2) | — | (37.9 | ) | |||||||||||
Consolidated net sales, on a constant currency basis | $ | 10,489.5 | $ | 9,532.4 | 10.0 | % | 9.5 | % | ||||||
(1) | There were 192 and 191 selling days for the nine months ended September 30, 2016 and 2015, respectively. |
(2) | Represents the effect of translating the prior year results of CDW Canada and the two months of CDW UK's results at the average exchange rates applicable in the current year. |
Dividend Amount | Declaration Date | Record Date | Payment Date | |||
$0.1075 | February 9, 2016 | February 25, 2016 | March 10, 2016 | |||
$0.1075 | May 4, 2016 | May 25, 2016 | June 10, 2016 | |||
$0.1075 | August 2, 2016 | August 25, 2016 | September 12, 2016 | |||
Nine Months Ended September 30, | |||||||
(in millions) | 2016 | 2015 | |||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 499.3 | $ | 294.9 | |||
Investing activities | (43.5 | ) | (308.2 | ) | |||
Net change in accounts payable-inventory financing | 39.2 | 22.6 | |||||
Other financing activities | (410.1 | ) | (252.5 | ) | |||
Financing activities | (370.9 | ) | (229.9 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (4.2 | ) | (3.8 | ) | |||
Net increase (decrease) in cash and cash equivalents | $ | 80.7 | $ | (247.0 | ) | ||
Nine Months Ended September 30, | |||||||||||
(in millions) | 2016 | 2015 | Dollar Change | ||||||||
Net income | $ | 321.2 | $ | 313.8 | $ | 7.4 | |||||
Adjustments for the impact of non-cash items(1) | 151.0 | 98.2 | 52.8 | ||||||||
Net income adjusted for the impact of non-cash items(2) | 472.2 | 412.0 | 60.2 | ||||||||
Changes in assets and liabilities: | — | ||||||||||
Accounts receivable(3) | (17.9 | ) | (178.4 | ) | 160.5 | ||||||
Merchandise inventory | (64.6 | ) | (54.8 | ) | (9.8 | ) | |||||
Accounts payable-trade(4) | 141.5 | 226.0 | (84.5 | ) | |||||||
Other (5) | (31.9 | ) | (109.9 | ) | 78.0 | ||||||
Net cash provided by operating activities | $ | 499.3 | $ | 294.9 | $ | 204.4 | |||||
(1) | Includes items such as Deferred income taxes, Depreciation and amortization, Equity-based compensation expense, Income from equity method investment and Net loss on extinguishments of long-term debt. |
(2) | The change is primarily due to stronger operating results driven by Net sales growth and the impact of consolidating nine months of CDW UK financial results in 2016, compared to two months in 2015. |
(3) | The change was primarily due to an increase in collections during 2016 due to the higher accounts receivable balance as of December 31, 2015 driven by higher sales in our Public segment where customers generally take longer to pay than customers in our Corporate segment. In addition, the lower accounts receivable balances as of December 31, 2014, driven by early payments from certain customers, resulted in lower cash flows in the prior year period. |
(4) | The change was primarily due to the timing of payments to vendors during the current period and longer payment terms with certain vendors. |
(5) | The change was primarily due to an increase in Deferred revenue and Miscellaneous receivables. |
September 30, | |||||
(in days) | 2016 | 2015 | |||
Days of sales outstanding (DSO)(1) | 49 | 45 | |||
Days of supply in inventory (DIO)(2) | 13 | 13 | |||
Days of purchases outstanding (DPO)(3) | (44 | ) | (40 | ) | |
Cash conversion cycle | 18 | 18 | |||
(1) | Represents the rolling three-month average of the balance of Accounts receivable, net at the end of the period, divided by average daily net sales for the same three-month period. Also incorporates components of other miscellaneous receivables. |
(2) | Represents the rolling three-month average of the balance of Merchandise inventory at the end of the period divided by average daily cost of sales for the same three-month period. |
(3) | Represents the rolling three-month average of the combined balance of Accounts payable-trade, excluding cash overdrafts, and Accounts payable-inventory financing at the end of the period divided by average daily cost of sales for the same three-month period. |
Period | Total Number of Shares Purchased (in millions) | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program (in millions) | Maximum Dollar Value of Shares that May Yet be Purchased Under the Program (1) (in millions) | ||||||||||
July 1 through July 31, 2016 | — | $ | — | — | $ | 785.5 | ||||||||
August 1 through August 31, 2016 | 1.6 | $ | 44.85 | 1.6 | $ | 712.4 | ||||||||
September 1 through September 30, 2016 | 1.3 | $ | 44.63 | 1.3 | $ | 654.3 | ||||||||
Total | 2.9 | 2.9 | ||||||||||||
(1) | On November 6, 2014, the Company announced that the Board of Directors approved a $500 million share repurchase program, which became effective immediately, under which the Company may repurchase shares of its common stock in the open market or through privately negotiated or other transactions, depending on share price, market conditions and other factors. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and repurchases may be commenced or suspended from time to time without prior notice. On May 4, 2016, the Company announced that its Board of Directors authorized a $750 million increase to the Company's share repurchase program, which became effective immediately. |
CDW CORPORATION | |||||
Date: | November 2, 2016 | By: | /s/ Ann E. Ziegler | ||
Ann E. Ziegler | |||||
Senior Vice President and Chief Financial Officer | |||||
(Duly authorized officer and principal financial officer) | |||||
Exhibit | Description | |
10.1*,§ | Amended and Restated CDW Corporation Coworker Stock Purchase Plan. | |
10.2 | Amended and Restated Term Loan Agreement, dated as of August 17, 2016, by and among CDW LLC, the lenders from time to time party thereto, Barclays Bank PLC, as administrative agent and collateral agent, and the joint lead arrangers, joint bookrunners, syndication agent and co-documentation agents party thereto, previously filed as Exhibit 10.1 with CDW Corporation's Form 8-K filed on August 18, 2016 and incorporated herein by reference. | |
31.1* | Certification of Chief Executive Officer Pursuant to Rule 15d-14(a) under the Securities Exchange Act of 1934. | |
31.2* | Certification of Chief Financial Officer Pursuant to Rule 15d-14(a) under the Securities Exchange Act of 1934. | |
32.1*, ** | Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350. | |
32.2*, ** | Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350. | |
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |
* | Filed herewith |
§ | A management contract or compensatory arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S-K. |
** | These items are furnished and not filed. |
1. | I have reviewed this quarterly report on Form 10-Q of the registrant; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Thomas E. Richards |
Thomas E. Richards |
Chairman, President and Chief Executive Officer |
CDW Corporation |
November 2, 2016 |
1. | I have reviewed this quarterly report on Form 10-Q of the registrant; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Ann E. Ziegler |
Ann E. Ziegler |
Senior Vice President and Chief Financial Officer |
CDW Corporation |
November 2, 2016 |
/s/ Thomas E. Richards |
Thomas E. Richards |
Chairman, President and Chief Executive Officer |
CDW Corporation |
November 2, 2016 |
/s/ Ann E. Ziegler |
Ann E. Ziegler |
Senior Vice President and Chief Financial Officer |
CDW Corporation |
November 2, 2016 |
Document and Entity Information Document - shares |
9 Months Ended | |
|---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | CDW Corp | |
| Entity Central Index Key | 0001402057 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Large Accelerated Filer | |
| Document Type | 10-Q | |
| Document Period End Date | Sep. 30, 2016 | |
| Document Fiscal Year Focus | 2016 | |
| Document Fiscal Period Focus | Q3 | |
| Amendment Flag | false | |
| Entity Common Stock, Shares Outstanding | 160,506,730 |
Consolidated Balance Sheets Parenthetical (Parentheticals) - USD ($) shares in Millions, $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for doubtful accounts | $ 5.9 | $ 6.0 |
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, authorized | 100.0 | 100.0 |
| Preferred stock, issued | 0.0 | 0.0 |
| Preferred stock, outstanding | 0.0 | 0.0 |
| Common stock, par value | $ 0.01 | $ 0.01 |
| Common stock, shares authorized | 1,000.0 | 1,000.0 |
| Common stock, shares issued | 160.5 | 168.2 |
| Common stock, shares outstanding | 160.5 | 168.2 |
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
| Income Statement [Abstract] | ||||
| Net Sales | $ 3,708.2 | $ 3,501.1 | $ 10,489.5 | $ 9,570.3 |
| Cost of sales | 3,093.9 | 2,933.9 | 8,740.2 | 8,012.1 |
| Gross profit | 614.3 | 567.2 | 1,749.3 | 1,558.2 |
| Selling and administrative expenses | 334.9 | 321.4 | 1,009.0 | 887.5 |
| Advertising expense | 41.9 | 41.2 | 118.3 | 108.6 |
| Income from operations | 237.5 | 204.6 | 622.0 | 562.1 |
| Interest Income (Expense), Net | (37.6) | (38.5) | (112.6) | (121.1) |
| Net loss on extinguishments of long-term debt | (2.1) | 0.0 | (2.1) | (24.3) |
| Gain on remeasurement of equity investment | 0.0 | 98.1 | 0.0 | 98.1 |
| Other income (loss), net | 0.4 | (18.0) | 2.3 | (9.5) |
| Income (loss) before income taxes | 198.2 | 246.2 | 509.6 | 505.3 |
| Income tax (expense) benefit | (72.3) | (95.3) | (188.4) | (191.5) |
| Net income (loss) | $ 125.9 | $ 150.9 | $ 321.2 | $ 313.8 |
| Income Per Share - Basic | $ 0.78 | $ 0.89 | $ 1.95 | $ 1.84 |
| Income Per Share - Diluted | $ 0.76 | $ 0.88 | $ 1.93 | $ 1.82 |
| Weighted Average Shares - Basic | 162.1 | 169.6 | 164.8 | 170.9 |
| Weighted Average Shares - Diluted | 164.9 | 171.0 | 166.9 | 172.3 |
| Common Stock, Dividends, Per Share, Cash Paid | $ 0.1075 | $ 0.0675 | $ 0.3225 | $ 0.2025 |
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income (loss) | $ 125.9 | $ 150.9 | $ 321.2 | $ 313.8 |
| Foreign currency translation adjustment | (11.9) | (22.4) | (54.7) | (28.7) |
| Other Comprehensive Income (Loss), Net of Tax | (11.9) | (22.4) | (54.7) | (28.7) |
| Comprehensive income (loss) | $ 114.0 | $ 128.5 | $ 266.5 | $ 285.1 |
Consolidated Statements of Comprehensive Income (Loss) Parenthetical (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
| Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ (0.1) | $ 0.2 | $ 0.3 | $ 0.5 |
Description Of Business And Summary Of Significant Accounting Policies |
9 Months Ended |
|---|---|
Sep. 30, 2016 | |
| Description of Business and Summary of Significant Accounting Policies [Abstract] | |
| Description Of Business And Summary Of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business CDW Corporation (“Parent”) is a Fortune 500 company with multi-national capabilities and a leading provider of integrated information technology (“IT”) solutions to small, medium and large business, government, education and healthcare customers in the United States, Canada and the United Kingdom. The Company's offerings range from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization and collaboration. Throughout this report, the terms the “Company” and “CDW” refer to Parent and its 100% owned subsidiaries. Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of the Company. CDW Finance Corporation is a Delaware corporation formed for the sole purpose of acting as co-issuer of certain debt obligations and does not hold any material assets or engage in any business activities or operations. On August 1, 2015, the Company completed the acquisition of Kelway TopCo Limited (“Kelway”) by purchasing the remaining 65% of its outstanding common stock, which increased the Company’s ownership interest from 35% to 100%, and provided the Company control. On April 4, 2016, Kelway was rebranded CDW UK. Throughout this report, the term "CDW UK" refers to Kelway. For further details regarding the acquisition, see Note 3 (Acquisition). Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 (the “Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 (the “December 31, 2015 Consolidated Financial Statements”). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2015 Consolidated Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for such interim periods reported are not necessarily indicative of results for the full year. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. The notes to the Consolidated Financial Statements contained in the December 31, 2015 Consolidated Financial Statements include an additional discussion of the significant accounting policies and estimates used in the preparation of the Company's Consolidated Financial Statements. There have been no material changes to the Company's significant accounting policies and estimates during the nine months ended September 30, 2016. |
Recent Accounting Pronouncements |
9 Months Ended |
|---|---|
Sep. 30, 2016 | |
| Recent Accounting Pronouncements [Abstract] | |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements Classification of Certain Cash Receipts and Cash Payments In August 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), providing guidance for eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU 2016-15 is effective for the Company beginning in the first quarter of 2018 and allows for early adoption. The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the assumptions, models and methods for estimating expected credit losses. This ASU is effective for the Company beginning in the first quarter of 2020 and allows for early adoption beginning in the first quarter of 2019. The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, requiring the recognition of the excess tax benefits of stock awards in the provision for income taxes in the income statement when the awards are settled and allowing the Company to repurchase more of an employee's shares for tax withholding purposes than allowed under current guidance, without triggering liability accounting. This ASU also addresses simplifications related to statement of cash flows classification and accounting for forfeitures. This ASU is effective for the Company beginning in the first quarter of 2017 and allows for early adoption. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, requiring the Company to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. As a result of the adoption of this ASU, the Company recorded a $1.2 million tax benefit in its Consolidated Financial Statements. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU is effective for the Company beginning in the first quarter of 2019 and allows for early adoption. Although the Company is currently evaluating the provisions of the ASU to determine how it will be affected, the primary impact of the new ASU will be to record assets and liabilities for current operating leases. Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, simplifying the presentation of deferred income taxes by requiring all deferred taxes to be presented as noncurrent in the balance sheet. In the first quarter of 2016, the Company elected to early adopt ASU 2015-17 on a prospective basis. The adoption of this ASU did not have a material impact on the Company's Consolidated Financial Statements. Simplifying the Measurement of Inventory In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, amending the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value instead of the lower of cost or market value. This ASU is effective for the Company beginning in the first quarter of 2017, allows for early adoption and must be applied prospectively after the date of adoption. The adoption of this ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), replacing most existing revenue recognition guidance under GAAP and eliminating industry specific guidance. The core principle of the new guidance is that an entity should recognize revenue for the transfer of goods and services equal to an amount it expects to be entitled to receive for those goods and services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, deferring the effective date by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Gross versus Net), clarifying the principal versus agent guidance in the new revenue recognition standard, by revising the indicators to focus on evidence that the company is a principal. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, reducing the complexity when applying the guidance for identifying performance obligations and clarifying how to determine whether revenue related to a performance obligation for an intellectual property license is recognized over time or at a point in time. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, clarifying certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition. These ASUs are effective for the Company beginning in the first quarter of 2018, allow for early adoption in the first quarter of 2017 and may be applied using either a full retrospective approach or a modified retrospective approach. The Company is currently evaluating the method of adoption and the impact these ASUs will have on its Consolidated Financial Statements. |
Acquisition |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition | Acquisition On August 1, 2015, the Company completed the acquisition of CDW UK by purchasing the remaining 65% of its outstanding common stock, which increased the Company's ownership interest from 35% to 100%, and provided the Company control. A summary of the total consideration transferred is as follows:
The recognized amounts of identifiable assets acquired and liabilities assumed, translated using the foreign currency exchange rates on the date of acquisition, are as follows:
Goodwill in the amount of $306 million was recognized in the acquisition of CDW UK and is attributable to the business from new customers and the value of the acquired assembled workforce. The goodwill was allocated to the CDW UK operating segment which is included with CDW Canada in an all other category (“Other”). The full amount of goodwill recognized is not deductible for income tax purposes in the United Kingdom. The unaudited pro forma Consolidated Statements of Operations in the table below summarizes the combined results of operations of the Company and CDW UK, using historical foreign currency exchange rates, as if the acquisition had been completed on January 1, 2015, and gives effect to pro forma events that are factually supportable and directly attributable to the transaction. The unaudited pro forma results reflect adjustments for equity-based compensation, acquisition and integration costs, incremental intangible asset amortization based on the fair values of each identifiable intangible asset, which are subject to change within the measurement period, pre-acquisition equity earnings, the gain on the remeasurement of the Company’s previously held 35% equity method investment, elimination of pre-acquisition intercompany sales transactions and the impacts of certain other pre-acquisition transactions. Pro forma adjustments were tax-effected at the statutory rates within the applicable jurisdictions. This unaudited pro forma information is presented for informational purposes only and may not be indicative of the historical results of operations that would have been obtained if the acquisition had taken place on January 1, 2015, nor the results that may be obtained in the future. This unaudited pro forma information does not reflect future synergies, integration costs, or other such costs or savings. The unaudited pro forma Consolidated Statements of Operations for the three and nine months ended September 30, 2015 is as follows:
The unaudited pro forma information above reflects the following adjustments:
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Inventory Financing Agreements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Financing Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Financing Agreements | Inventory Financing Agreements The Company has entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions. These amounts are classified separately as Accounts payable-inventory financing on the Consolidated Balance Sheets. The Company does not incur any interest expense associated with these agreements as balances are paid when they are due. Amounts included in Accounts payable-inventory financing are as follows:
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Long-Term Debt |
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| Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt | Long-Term Debt Long-term debt as of September 30, 2016 is as follows:
Long-term debt as of December 31, 2015 is as follows:
Debt Covenants As of September 30, 2016, the Company remained in compliance with the covenants under its various credit agreements, the most restrictive of which is under the credit agreement governing the Senior Secured Term Loan Facility ("Term Loan"). Under the Term Loan, there are restrictions on the ability of CDW to pay dividends, make share repurchases, redeem subordinated debt and engage in certain other transactions. As of September 30, 2016, the amount of CDW’s restricted payment capacity under the Term Loan was $680 million. However, the Company is separately permitted to make restricted payments, so long as the total net leverage ratio is less than 3.25 on a pro forma basis. The total net leverage ratio was 2.9 as of September 30, 2016. The CDW UK Term Loan Agreement imposes restrictions on CDW UK's ability to transfer funds to the Company through the payment of dividends, intercompany loans, advances or the repayment of subordinated debt that require, among other things, the maintenance of a minimum net leverage ratio. As of September 30, 2016, the amount of CDW UK's restricted payment capacity under the CDW UK Term Loan was $120 million. Senior Secured Term Loan Facility (“Term Loan”) On August 17, 2016, the Company entered into a new seven-year $1,490 million aggregate principal amount senior secured term loan facility ("Term Loan"). The Term Loan was issued at a price that was 99.5% of par, which resulted in a discount of $7 million. Fees of $5 million were capitalized as deferred financing costs and are being amortized over the seven-year term on a straight-line basis. The Term Loan replaced the prior senior secured term loan facility (the “Prior Term Loan Facility”) that had an outstanding aggregate principal amount of $1,490 million. In connection with this refinancing, the Company recorded a loss on extinguishment of long-term debt of $2 million in the Consolidated Statement of Operations for the three months ended September 30, 2016. This loss represented the write-off of a portion of the unamortized deferred financing costs and unamortized discount related to the Prior Term Loan Facility. The Company is required to pay quarterly principal installments equal to 0.25% of the original principal amount of the Term Loan, with the remaining principal amount payable on the maturity date of August 17, 2023. The quarterly principal installment payments of $4 million commenced during the quarter ended September 30, 2016. At September 30, 2016, the outstanding principal amount of the Term Loan was $1,487 million, excluding $16 million of unamortized discount and deferred financing costs. Borrowings under the Term Loan bear interest at either (a) the alternate base rate (“ABR”) plus a margin or (b) LIBOR plus a margin; provided that for the purposes of the Term Loan, LIBOR shall not be less than 0.75% per annum at any time (“LIBOR Floor”), payable quarterly on the last day of each March, June, September and December. The margin is based upon a net leverage ratio as defined in the agreement governing the Term Loan which is 1.25% for ABR borrowings and 2.25% for LIBOR borrowings. As of September 30, 2016, an interest rate of 3.0% was in effect, which represents the LIBOR Floor plus a 2.25% margin. CDW UK Term Loan On August 1, 2016, the Company entered into a new five-year £56 million ($72 million as of September 30, 2016) aggregate principal amount term loan facility ("CDW UK Term Loan"). The CDW UK Term Loan replaced the prior senior secured term loan facility (the “Prior CDW UK Term Loan Facility”) that had an outstanding aggregate principal amount of £56 million. The Company is required to pay annual principal installments of £5 million, with the remaining principal amount payable on the maturity date of August 1, 2021. The annual principal installment payments will commence during the quarter ended September 30, 2018. At September 30, 2016, the outstanding principal amount of the CDW UK Term Loan was £56 million, excluding £0.5 million ($0.6 million as of September 30, 2016) of unamortized deferred financing costs. Borrowings under the CDW UK Term Loan bear interest at LIBOR plus a margin, payable quarterly on the last day of each March, June, September and December. As of September 30, 2016, an interest rate of 1.79% was in effect, which represents LIBOR plus a 0.39% margin. In connection with this refinancing, the Prior CDW UK Term Loan Facility was amended to include both the CDW UK Term Loan and a £50.0 million revolving credit facility ("CDW UK Revolving Credit Facility"). The CDW UK Revolving Credit Facility replaced the prior £50 million revolving credit facility and expires on August 1, 2021. As of September 30, 2016, there were no outstanding borrowings under the CDW UK Revolving Credit Facility. Fair Value The fair values of the 2022, 2023 and 2024 Senior Notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan was estimated using dealer quotes for identical liabilities in markets that are not considered active. Consequently, the Company's long-term debt is classified as Level 2 within the fair value hierarchy. The fair value of the CDW UK Term Loan was estimated using a discounted cash flow analysis based on current incremental borrowing rates for similar arrangements. The approximate fair values and related carrying values of the Company's long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing costs, were as follows:
Interest Rate Cap Agreements In order to manage the risk associated with changes in interest rates on borrowings under the Term Loan, the Company maintains interest rate cap agreements. As of September 30, 2016 the interest rate cap agreements had a combined notional amount of $1,400 million and are effective from January 14, 2015 through January 14, 2017. Under these agreements, the Company has the right to receive payments equal to the amount, if any, by which the three-month LIBOR exceeds 2.0% during the agreement period. The fair value of the Company's interest rate cap agreements was less than $1 million as of September 30, 2016 and December 31, 2015. In connection with the upcoming expiration of the interest rate cap agreements noted above in the first quarter of 2017, during the quarter ended September 30, 2016, the Company entered into eleven additional interest rate cap agreements for a combined notional amount of $1,200 million. Under these agreements, the Company made premium payments totaling $2 million to the counterparties in exchange for the right to receive payments equal to the amount, if any, by which three-month LIBOR exceeds 1.5% during the agreement period. These interest rate cap agreements are effective from January 14, 2017 through December 31, 2018. The fair value of these interest rate cap agreements was $2 million at September 30, 2016. The Company’s interest rate cap agreements have not been designated as cash flow hedges for interest rate risk for GAAP accounting purposes. The interest rate cap agreements are recorded at fair value on the Company’s consolidated balance sheet in Other Assets each period, with changes in fair value recorded directly to interest expense in the Company’s Consolidated Statements of Operations. The fair value of the Company’s interest rate cap agreements is classified as Level 2 in the fair value hierarchy. The valuation of the interest rate cap agreements is derived by using a discounted cash flow analysis on the expected cash receipts that would occur if variable interest rates rise above the strike rates of the caps. This analysis reflects the contractual terms of the interest rate cap agreements, including the period to maturity, and uses observable market-based inputs, including LIBOR curves and implied volatilities. The Company also incorporates insignificant credit valuation adjustments to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. The counterparty credit spreads are based on publicly available credit information obtained from a third party credit data provider. |
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Earnings per Share |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | Earnings per Share The numerator for both basic and diluted earnings per share is Net income. The denominator for basic earnings per share is the weighted-average shares outstanding during the period. A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2016 | |
| Commitments and Contingencies [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies The Company is party to various legal proceedings that arise in the ordinary course of its business, which include commercial, intellectual property, employment, tort and other litigation matters. The Company is also subject to audit by federal, state, international, national, provincial and local authorities, and by various partners, group purchasing organizations and customers, including government agencies, relating to purchases and sales under various contracts. In addition, the Company is subject to indemnification claims under various contracts. From time to time, certain customers of the Company file voluntary petitions for reorganization or liquidation under the US bankruptcy laws or similar laws of the jurisdictions for the Company’s business activities outside of the US. In such cases, certain pre-petition payments received by the Company could be considered preference items and subject to return to the bankruptcy administrator. On October 29, 2015, the Company learned of an investigation by the SEC of the Company’s vendor partner program incentives. The SEC’s investigation is ongoing, and the Company is continuing to cooperate with the SEC in this matter. As of September 30, 2016, the Company does not believe that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters, if any, has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, the Company's financial condition and results of operations could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters. |
Segment Information |
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| Segment Information | Segment Information The Company has two reportable segments: Corporate, which is comprised primarily of private sector business customers in the US, and Public, which is comprised of government agencies and education and healthcare institutions in the US. The Company has two other operating segments: CDW Canada and CDW UK, both of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category (“Other”). Effective January 1, 2016, CDW Advanced Services is no longer an operating segment. Its results have been allocated to the Corporate and Public segments to align the Company's financial reporting with the manner in which the Chief Operating Decision Maker assesses performance and makes resource allocation decisions. Segment information reported in prior periods has been reclassified to conform to the current period presentation. Information about the Company’s segments for the three and nine months ended September 30, 2016 and 2015 is as follows:
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Supplemental Guarantor Information |
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| Supplemental Guarantor Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Guarantor Information [Text Block] |
The 2022 Senior Notes, the 2023 Senior Notes and the 2024 Senior Notes are, and, prior to being redeemed in full, the 2019 Senior Notes were, guaranteed by Parent and each of CDW LLC’s direct and indirect, 100% owned, domestic subsidiaries (the “Guarantor Subsidiaries”). All guarantees by Parent and the Guarantor Subsidiaries are and were joint and several, and full and unconditional; provided that guarantees by the Guarantor Subsidiaries (i) are subject to certain customary release provisions contained in the indentures governing the 2022 Senior Notes, the 2023 Senior Notes and the 2024 Senior Notes and (ii) were subject to certain customary release provisions contained in the indentures governing the 2019 Senior Notes until such indentures were satisfied and discharged in the first quarter of 2015. CDW LLC's 100% owned foreign subsidiaries, CDW International Holdings Limited, which is comprised of CDW UK and Canada (together the “Non-Guarantor Subsidiaries”), do not guarantee the debt obligations. CDW LLC and CDW Finance Corporation, as co-issuers, are 100% owned by Parent and each of the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries are, directly or indirectly, 100% owned by CDW LLC. The following tables set forth condensed Consolidating Balance Sheets as of September 30, 2016 and December 31, 2015, Consolidating Statements of Operations for the three and nine months ended September 30, 2016 and 2015, condensed Consolidating Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015 and condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2016 and 2015, 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 accounts of the Non-Guarantor Subsidiaries, and the accounts of CDW Finance Corporation (the “Co-Issuer”) for the periods indicated. The information was prepared on the same basis as the Consolidated Financial Statements.
(1) Certain amounts have been reclassified to conform to the current period presentation.
(1) Certain amounts have been reclassified to conform to the current period presentation.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2016 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On November 2, 2016, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per common share to be paid on December 12, 2016 to all stockholders of record as of the close of business on November 25, 2016. Future dividends will be subject to Board of Directors approval. |
Description Of Business And Summary Of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
| Description of Business and Summary of Significant Accounting Policies [Abstract] | |
| Description of Business, Policy | Description of Business CDW Corporation (“Parent”) is a Fortune 500 company with multi-national capabilities and a leading provider of integrated information technology (“IT”) solutions to small, medium and large business, government, education and healthcare customers in the United States, Canada and the United Kingdom. The Company's offerings range from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization and collaboration. Throughout this report, the terms the “Company” and “CDW” refer to Parent and its 100% owned subsidiaries. Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of the Company. CDW Finance Corporation is a Delaware corporation formed for the sole purpose of acting as co-issuer of certain debt obligations and does not hold any material assets or engage in any business activities or operations. On August 1, 2015, the Company completed the acquisition of Kelway TopCo Limited (“Kelway”) by purchasing the remaining 65% of its outstanding common stock, which increased the Company’s ownership interest from 35% to 100%, and provided the Company control. On April 4, 2016, Kelway was rebranded CDW UK. Throughout this report, the term "CDW UK" refers to Kelway. For further details regarding the acquisition, see Note 3 (Acquisition). |
| Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 (the “Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 (the “December 31, 2015 Consolidated Financial Statements”). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2015 Consolidated Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for such interim periods reported are not necessarily indicative of results for the full year. |
| Principles of Consolidation, Policy | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation. |
| Use of Estimates, Policy | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. The Company bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. The notes to the Consolidated Financial Statements contained in the December 31, 2015 Consolidated Financial Statements include an additional discussion of the significant accounting policies and estimates used in the preparation of the Company's Consolidated Financial Statements. There have been no material changes to the Company's significant accounting policies and estimates during the nine months ended September 30, 2016. |
Acquisition (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Consideration Transferred | A summary of the total consideration transferred is as follows:
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The recognized amounts of identifiable assets acquired and liabilities assumed, translated using the foreign currency exchange rates on the date of acquisition, are as follows:
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| Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Details of the identified intangible assets are as follows:
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| Business Acquisition, Pro Forma Information | The unaudited pro forma Consolidated Statements of Operations for the three and nine months ended September 30, 2015 is as follows:
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Inventory Financing Agreements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Financing Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Financing Agreements |
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-term Debt Instruments [Table Text Block] | Fair Value The fair values of the 2022, 2023 and 2024 Senior Notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan was estimated using dealer quotes for identical liabilities in markets that are not considered active. Consequently, the Company's long-term debt is classified as Level 2 within the fair value hierarchy. The fair value of the CDW UK Term Loan was estimated using a discounted cash flow analysis based on current incremental borrowing rates for similar arrangements. The approximate fair values and related carrying values of the Company's long-term debt, including current maturities and excluding unamortized discount and unamortized deferred financing costs, were as follows:
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| Carrying Value of Long-Term Debt | Long-term debt as of September 30, 2016 is as follows:
Long-term debt as of December 31, 2015 is as follows:
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Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Weighted Average Number of Shares | A reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment | Information about the Company’s segments for the three and nine months ended September 30, 2016 and 2015 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidating Balance Sheets |
|
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| Consolidating Statements of Operations |
|
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| Condensed Statement of Comprehensive Income [Table Text Block] |
|
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| Condensed Consolidating Statements Cash Flows |
|
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Description Of Business And Summary Of Significant Accounting Policies Description of Business (Details) - Kelway TopCo Limited [Member] |
Aug. 01, 2015 |
|---|---|
| Business Acquisition [Line Items] | |
| Business Acquisition, Percentage of Voting Interests Acquired | 65.00% |
| Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 35.00% |
| Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% |
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Income Tax Benefit from Adoption of ASU | $ (72.3) | $ (95.3) | $ (188.4) | $ (191.5) |
| Accounting Standards Update 2016-09 [Member] | ||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
| Income Tax Benefit from Adoption of ASU | $ (1.2) | |||
Acquisition (Details) - Kelway TopCo Limited [Member] $ in Millions |
Aug. 01, 2015
USD ($)
|
|---|---|
| Business Acquisition [Line Items] | |
| Goodwill, Acquired During Period | $ 306.0 |
| Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0.0 |
| Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 35.00% |
Acquisition Ownership Acquired (Details) - Kelway TopCo Limited [Member] $ in Millions |
Aug. 01, 2015
USD ($)
|
|---|---|
| Business Acquisition [Line Items] | |
| Business Acquisition, Percentage of Voting Interests Acquired | 65.00% |
| Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 35.00% |
| Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% |
| Equity Awards Granted by Seller of Kelway [Member] | |
| Business Acquisition [Line Items] | |
| Fair value of options issued by one of the sellers to certain coworkers over shares of the seller's common stock received as part of consideration from acquisition | $ 21.8 |
Acquisition Fair Value of Consideration Transferred (Details) - Kelway TopCo Limited [Member] $ in Millions |
Aug. 01, 2015
USD ($)
|
|---|---|
| Business Acquisition [Line Items] | |
| Cash | $ 291.6 |
| Fair value of CDW common stock | 33.2 |
| Fair value of previously held equity investment on the date of acquisition | 174.9 |
| Total consideration | $ 499.7 |
Acquisition Fair Value Recognized Assets and Liabilities Assumed (Details) - Kelway TopCo Limited [Member] $ in Millions |
Aug. 01, 2015
USD ($)
|
|---|---|
| Business Acquisition [Line Items] | |
| Cash | $ 27.8 |
| Accounts receivable | 135.7 |
| Merchandise inventory | 27.1 |
| Property and equipment, net | 11.4 |
| Identified intangible assets | 289.8 |
| Other assets | 53.5 |
| Total assets acquired | 545.3 |
| Accounts payable - trade | (86.1) |
| Deferred revenue | (57.2) |
| Other liabilities | (41.7) |
| Deferred tax liabilities | (55.1) |
| Debt | (111.5) |
| Total liabilities assumed | (351.6) |
| Total identifiable net assets | 193.7 |
| Goodwill | 306.0 |
| Total purchase price | $ 499.7 |
Acquisition Pro Forma Information (Details) - Kelway TopCo Limited [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2015 |
|
| Pro Forma Information [Line Items] | ||
| Business Acquisition, Pro Forma Revenue | $ 3,585.5 | $ 10,099.2 |
| Business Acquisition, Pro Forma Net Income (Loss) | $ 101.8 | $ 273.5 |
Inventory Financing Agreements (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|---|---|---|
| Inventory Financing Agreements [Line Items] | ||
| Accounts payable-inventory financing | $ 477.7 | $ 439.6 |
| Accounts Payable, Inventory Financing Collateralized [Member] | ||
| Inventory Financing Agreements [Line Items] | ||
| Other inventory financing agreements | 1.2 | 1.0 |
| Accounts Payable, Inventory Financing [Member] | ||
| Inventory Financing Agreements [Line Items] | ||
| Revolving Loan inventory financing agreement | 468.2 | 427.0 |
| Other inventory financing agreements | 9.5 | 12.6 |
| Accounts payable-inventory financing | $ 477.7 | $ 439.6 |
Long-Term Debt -Revolving Loan (Details) £ in Millions, $ in Millions |
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
GBP (£)
|
Dec. 31, 2015
USD ($)
|
|---|---|---|---|
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | $ 3,256.5 | $ 3,259.3 | |
| Revolving Loan [Member] | |||
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | 0.0 | 0.0 | |
| Undrawn letters of credit | 1.0 | ||
| Borrowing Base | 1,584.0 | ||
| Availability under Revolving Loan | 802.0 | ||
| CDW UK Revolving Credit Facility [Member] | |||
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | 0.0 | 0.0 | |
| Availability under Revolving Loan | 65.0 | £ 50.0 | |
| Accounts Payable, Inventory Financing [Member] | |||
| Debt Instrument [Line Items] | |||
| Revolving Loan inventory financing agreement | 468.2 | $ 427.0 | |
| Accounts Payable, Inventory Financing [Member] | Revolving Loan [Member] | |||
| Debt Instrument [Line Items] | |||
| Amount owed under Revolving loan financing agreement | $ 446.5 |
Long-Term Debt -Interest Rate Caps (Details) £ in Millions, $ in Millions |
9 Months Ended | |||
|---|---|---|---|---|
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
GBP (£)
|
Dec. 31, 2015
USD ($)
|
|
| Derivative [Line Items] | ||||
| Deferred Finance Costs, Net | £ | £ 0.5 | |||
| Payments for Derivative Instrument | $ 2.1 | $ 0.5 | ||
| Cap agreement effective January 14, 2015-2017 [Member] | ||||
| Derivative [Line Items] | ||||
| Derivative, Notional Amount | $ 1,400.0 | |||
| Interest Rate Cap, cap rate | 2.00% | 2.00% | ||
| Interest Rate Cap, fair value | $ 1.0 | $ 1.0 | ||
| Cap agreement effective 1/1/17-12/31/18 [Member] | ||||
| Derivative [Line Items] | ||||
| Derivative, Notional Amount | 1,200.0 | |||
| Payments for Derivative Instrument | $ 2.1 | |||
| Interest Rate Cap, cap rate | 1.50% | 1.50% | ||
| Interest Rate Cap, fair value | $ 1.8 | |||
Long-Term Debt -Senior Notes (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Aug. 17, 2016 |
Dec. 31, 2015 |
|---|---|---|---|
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | $ 3,256.5 | $ 3,259.3 | |
| Deferred financing costs, net | 33.6 | 26.8 | |
| Deferred Finance Costs, Net | 33.6 | 26.8 | |
| Senior Notes due 2023 [Member] | |||
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | $ 525.0 | $ 525.0 | |
| Long-term Debt, Weighted Average Interest Rate | 5.00% | 5.00% | |
| Deferred Finance Costs, Net | $ 5.5 | $ 6.2 | |
| Term Loan [Member] | |||
| Debt Instrument [Line Items] | |||
| Debt, short-term and long-term | $ 1,486.7 | $ 1,490.4 | $ 1,498.1 |
| Long-term Debt, Weighted Average Interest Rate | 3.00% | 3.25% |
Long-Term Debt Senior Subordinated Notes (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Debt, short-term and long-term | $ 3,256.5 | $ 3,259.3 |
Long-Term Debt -Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|---|---|---|
| Fair Value [Line Items] | ||
| Debt, Long-term and Short-term, Combined Amount | $ 3,286.5 | |
| Fair Value, Inputs, Level 2 [Member] | ||
| Fair Value [Line Items] | ||
| Long-term Debt, fair value disclosures | $ 3,376.2 | $ 3,330.4 |
Earnings per Share (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Weighted Average Shares - Basic | 162.1 | 169.6 | 164.8 | 170.9 |
| Effect of dilutive securities | 2.8 | 1.4 | 2.1 | 1.4 |
| Weighted Average Shares - Diluted | 164.9 | 171.0 | 166.9 | 172.3 |
| Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.1 | 0.2 | 0.5 |
Subsequent Events (Details) |
3 Months Ended |
|---|---|
|
Dec. 31, 2016
$ / shares
| |
| Subsequent Event [Member] | |
| Subsequent Event [Line Items] | |
| Common Stock, Dividends, Per Share, Declared | $ 0.1600 |
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