CDW CORP, 10-K filed on 2/26/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Feb. 20, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-35985    
Entity Registrant Name CDW CORP    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 26-0273989    
Entity Address, Address Line One 200 N. Milwaukee Avenue    
Entity Address, City or Town Vernon Hills    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60061    
City Area Code 847    
Local Phone Number 465-6000    
Title of 12(b) Security Common stock, par value $0.01 per share    
Trading Symbol CDW    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 24,542
Entity Common Stock, Shares Outstanding   134,215,119  
Documents Incorporated by Reference
Certain parts of the registrant’s definitive proxy statement for its 2024 annual meeting of stockholders to be held on May 21, 2024, which will be filed with the Securities and Exchange Commission on or before April 30, 2024, are incorporated by reference into Part III of this Annual Report on Form 10-K.
   
Entity Central Index Key 0001402057    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location Chicago, Illinois
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 588.7 $ 315.2
Accounts receivable, net of allowance for credit losses of $28.8 and $25.7, respectively 4,567.5 4,461.3
Merchandise inventory 668.1 800.2
Miscellaneous receivables 470.5 489.1
Prepaid expenses and other 410.2 498.2
Total current assets 6,705.0 6,564.0
Operating lease right-of-use assets 128.8 149.2
Property and equipment, net 195.5 188.8
Goodwill 4,413.4 4,342.7
Other intangible assets, net 1,369.7 1,490.7
Other assets 472.2 396.1
Total Assets 13,284.6 13,131.5
Current liabilities:    
Accounts payable-trade 2,881.0 2,821.3
Accounts payable-inventory financing 430.9 519.0
Current maturities of long-term debt 613.1 56.3
Contract liabilities 487.4 485.5
Accrued expenses and other current liabilities:    
Compensation 303.0 377.8
Advertising 119.9 130.5
Sales and income taxes 52.4 73.5
Other 554.3 483.2
Total current liabilities 5,442.0 4,947.1
Long-term liabilities:    
Debt 5,031.8 5,866.4
Deferred income taxes 171.4 203.4
Operating lease liabilities 164.0 175.2
Other liabilities 432.9 336.1
Total long-term liabilities 5,800.1 6,581.1
Commitments and contingencies (Note 16)
Stockholders’ equity:    
Preferred stock, $0.01 par value, 100.0 shares authorized; no shares issued or outstanding for both periods 0.0 0.0
Common stock, $0.01 par value, 1,000.0 shares authorized; 134.1 and 135.5 shares outstanding, respectively 1.3 1.4
Paid-in capital 3,691.3 3,518.1
Accumulated deficit (1,525.5) (1,763.8)
Accumulated other comprehensive loss (124.6) (152.4)
Total stockholders’ equity 2,042.5 1,603.3
Total Liabilities and Stockholders’ Equity $ 13,284.6 $ 13,131.5
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowance for credit loss, current $ 28.8 $ 25.7
Preferred shares, par value (in dollars per share) $ 0.01 $ 0.01
Preferred shares, authorized (in shares) 100,000,000.0 100,000,000.0
Preferred shares, issued (in shares) 0 0
Preferred shares, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common shares, authorized (in shares) 1,000,000,000 1,000,000,000
Common shares, outstanding (in shares) 134,100,000 135,500,000
v3.24.0.1
Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Net sales $ 21,376.0 $ 23,748.7 $ 20,820.8
Cost of sales 16,723.6 19,062.1 17,252.3
Gross profit 4,652.4 4,686.6 3,568.5
Selling and administrative expenses 2,971.5 2,951.4 2,149.5
Operating income 1,680.9 1,735.2 1,419.0
Interest expense, net (226.6) (235.7) (150.9)
Other (expense) income, net (4.1) (11.7) 29.7
Income before income taxes 1,450.2 1,487.8 1,297.8
Income tax expense (345.9) (373.3) (309.2)
Net income $ 1,104.3 $ 1,114.5 $ 988.6
Net income per common share:      
Basic (in dollars per share) $ 8.20 $ 8.24 $ 7.14
Diluted (in dollars per share) $ 8.10 $ 8.13 $ 7.04
Weighted-average common shares outstanding:      
Basic (in shares) 134.6 135.2 138.5
Diluted (in shares) 136.3 137.0 140.5
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 1,104.3 $ 1,114.5 $ 988.6
Other comprehensive income (loss):      
Unrealized loss from cash flow hedge, net of tax (1.9) (0.1) 0.0
Reclassification of cash flow hedge to net income, net of tax 0.0 3.6 2.5
Foreign currency translation, net of tax 29.7 (61.5) (1.1)
Other comprehensive income (loss) 27.8 (58.0) 1.4
Comprehensive income $ 1,132.1 $ 1,056.5 $ 990.0
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Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 1,104.3 $ 1,114.5 $ 988.6
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 270.7 290.6 191.2
Equity-based compensation expense 93.7 91.1 72.6
Deferred income taxes (32.7) (18.2) (6.7)
Provision for credit losses 14.9 8.3 (5.4)
Other 29.0 16.2 (24.1)
Changes in assets and liabilities:      
Accounts receivable (54.5) (34.8) (616.8)
Merchandise inventory 139.0 111.9 (151.0)
Other assets 183.3 (208.9) (134.8)
Accounts payable-trade (55.4) (260.0) 374.5
Other liabilities (93.6) 225.2 96.5
Net cash provided by operating activities 1,598.7 1,335.9 784.6
Cash flows from investing activities:      
Capital expenditures (148.2) (127.8) (100.0)
Acquisitions of businesses, net of cash acquired (76.4) (36.7) (2,705.6)
Proceeds from the sale of equity method investment 0.0 0.0 36.0
Other (5.0) 0.0 0.0
Net cash (used in) investing activities (229.6) (164.5) (2,769.6)
Cash flows from financing activities:      
Proceeds from borrowings under revolving credit facilities 207.6 2,301.4 1,619.7
Repayments of borrowings under revolving credit facilities (282.0) (2,531.2) (1,300.5)
Proceeds from issuance of long-term debt 0.0 0.0 3,917.5
Repayments of debt (150.0) (635.5) (11.2)
Repayments of receivable financing liability (61.1) (68.8) (15.8)
Payments to extinguish debt 0.0 0.0 (1,469.2)
Payments of debt financing fees 0.0 0.0 (38.1)
Net change in accounts payable-inventory financing (23.7) 84.6 (161.8)
Financing payments for revenue generating assets 0.0 0.0 (46.1)
Repurchases of common stock (500.0) 0.0 (1,500.4)
Proceeds from stock option exercises 49.3 30.2 69.9
Payment of incentive compensation plan withholding taxes (40.0) (23.1) (28.5)
Dividend payments (321.5) (282.6) (234.8)
Other 22.7 22.9 32.1
Net cash (used in) provided by financing activities (1,098.7) (1,102.1) 832.8
Effect of exchange rate changes on cash and cash equivalents 3.1 (12.2) 0.1
Net increase (decrease) in cash and cash equivalents 273.5 57.1 (1,152.1)
Cash and cash equivalents – beginning of period 315.2 258.1 1,410.2
Cash and cash equivalents – end of period 588.7 315.2 258.1
Supplementary disclosure of cash flow information:      
Interest paid (233.2) (224.3) (134.3)
Income taxes paid, net $ (401.4) $ (362.2) $ (351.0)
v3.24.0.1
Consolidated Statement Of Stockholders' Equity - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Paid-in Capital
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2020     141,900,000        
Beginning balance at Dec. 31, 2020 $ 1,297.1 $ 19.2 $ 1.4 $ 3,204.9 $ (1,813.4) $ 19.2 $ (95.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 988.6       988.6    
Equity-based compensation expense 72.6     72.6      
Stock option exercises (in shares)     1,500,000        
Stock option exercises 69.9     69.9      
Coworker Stock Purchase Plan (in shares)     100,000        
Coworker Stock Purchase Plan 20.6     20.6      
Repurchases of common stock (in shares)     (8,700,000)        
Repurchases of common stock (1,500.4)   $ (0.1)   (1,500.3)    
Dividend payments (234.8)     1.5 (236.3)    
Incentive compensation plan stock withheld for taxes (28.5)       (28.5)    
Unrealized loss on cash flow hedge 0.0            
Reclassification of cash flow hedge to net income 2.5           2.5
Foreign currency translation (1.1)           (1.1)
Ending balance (in shares) at Dec. 31, 2021     134,800,000        
Ending balance at Dec. 31, 2021 705.7   $ 1.3 3,369.5 (2,570.7)   (94.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,114.5       1,114.5    
Equity-based compensation expense 91.1     91.1      
Stock option exercises (in shares)     500,000        
Stock option exercises 30.2   $ 0.1 30.1      
Coworker Stock Purchase Plan (in shares)     200,000        
Coworker Stock Purchase Plan 25.5     25.5      
Dividend payments (282.6)     1.9 (284.5)    
Incentive compensation plan stock withheld for taxes (23.1)       (23.1)    
Unrealized loss on cash flow hedge (0.1)           (0.1)
Reclassification of cash flow hedge to net income 3.6           3.6
Foreign currency translation (61.5)           (61.5)
Ending balance (in shares) at Dec. 31, 2022     135,500,000        
Ending balance at Dec. 31, 2022 1,603.3   $ 1.4 3,518.1 (1,763.8)   (152.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,104.3       1,104.3    
Equity-based compensation expense $ 93.7     93.7      
Stock option exercises (in shares) 714,538   1,000,000.0        
Stock option exercises $ 49.3     49.3      
Coworker Stock Purchase Plan (in shares)     200,000        
Coworker Stock Purchase Plan 28.2     28.2      
Repurchases of common stock (in shares)     (2,600,000)        
Repurchases of common stock (500.0)   $ (0.1)   (499.9)    
Dividend payments (321.5)     2.0 (323.5)    
Incentive compensation plan stock withheld for taxes (40.0)       (40.0)    
Unrealized loss on cash flow hedge (1.9)           (1.9)
Reclassification of cash flow hedge to net income 0.0            
Foreign currency translation 27.1       (2.6)   29.7
Ending balance (in shares) at Dec. 31, 2023     134,100,000        
Ending balance at Dec. 31, 2023 $ 2,042.5   $ 1.3 $ 3,691.3 $ (1,525.5)   $ (124.6)
v3.24.0.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Dividends (in dollars per share) $ 2.390 $ 2.090 $ 1.700
v3.24.0.1
Description of Business and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2023
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”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of information technology (“IT”) solutions to small, medium and large business, government, education and healthcare customers in the United States (“US”), the United Kingdom (“UK”) and Canada. The Company’s broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience and security.
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.
Significant Accounting Policies
Basis of Presentation
The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the US Securities and Exchange Commission (“SEC”). The Company’s Consolidated Financial Statements are based on a fiscal year ended December 31.
On December 1, 2021, the Company completed its acquisition of all issued and outstanding equity interests in Granite Parent, Inc., the parent company of Sirius Computer Solutions, Inc. (“Sirius”), a leading provider of secure, mission-critical technology-based solutions and one of the largest IT solutions integrators in the US. The Company included the financial results of Sirius in its Consolidated Financial Statements from the date of the acquisition. For additional information on the acquisition of Sirius, see Note 3 (Acquisitions).
Principles of Consolidation
The 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 US GAAP requires management to make 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 and outcomes could differ from those estimates.
Business Combinations
The Company accounts for business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. The Company may utilize third-party valuation specialists to assist the Company in the allocation. Initial purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred.
Cash and Cash Equivalents
Cash and cash equivalents include deposits in banks and short-term (original maturities of three months or less at the time of purchase), highly liquid investments that are readily convertible to known amounts of cash and are so near maturity that there is insignificant risk of changes in value due to interest rate changes.
Accounts Receivable
The timing of revenue recognition may differ from the time of billing to customers. Accounts receivable presented on the Consolidated Balance Sheets represent an unconditional right to consideration, which includes unbilled receivables. Unbilled receivables represent revenues that are not currently billable where payment is unconditional and solely subject to the passage of time. These items are expected to be billed and collected in the normal course of business. Accounts receivable that are billed are recorded at the invoiced amount and include the taxes to be collected from the customer as part of the sale. Such billed amounts typically do not bear interest. The balance of the Company’s accounts receivable is classified as current for amounts expected to be collected within 12 months and noncurrent for amounts to be collected beyond 12 months.
The Company occasionally may transfer certain accounts receivable, without recourse, to third-party financial companies as a method to accelerate cash collections and reduce the Company’s credit exposure. Under these agreements, the Company may transfer certain accounts receivable in exchange for cash less a discount, as defined by the agreements. The Company’s ability to sell receivables is dependent on the financial institutions’ willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. Such transfers are recognized as a sale and the related accounts receivable is derecognized from the Consolidated Balance Sheet upon receipt of the third-party financing company’s payment.
The Company estimates an allowance for credit losses related to accounts receivable for future expected credit losses by using relevant information such as historical information, current conditions, and reasonable and supportable forecasts. The allowance is measured on a pool basis when similar risk characteristics exist, and a loss-rate for each pool is determined using historical credit loss experience as the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current conditions as well as changes in forecasted macroeconomic conditions, such as changes in the unemployment rate or gross domestic product growth rate. The Company has typically observed a higher loss-rate experience with customers in pools associated with the Company’s Corporate and Small Business segments, as compared to the pools associated with the Public segment.
For additional information on the Company’s accounts receivables, see Note 4 (Accounts Receivable and Contract Balances).
Merchandise Inventory
Inventory is valued at the lower of cost and net realizable value. Cost is determined using a weighted-average cost method. Price protection is recorded when earned as a reduction to the cost of inventory. The Company decreases the value of inventory for estimated obsolescence equal to the difference between the cost of inventory and the net realizable value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks and assumptions about future demand and market conditions.
Miscellaneous Receivables
Miscellaneous receivables primarily consist of amounts due from vendors. The Company receives incentives from vendors related to cooperative advertising, volume rebates, bid programs, price protection and other programs. These incentives generally relate to written vendor agreements with specified performance requirements and are generally recorded as adjustments to Cost of sales or Merchandise inventory, depending on the nature of the incentive. Funds received from vendors related to the reimbursement of specific, incremental and identifiable costs incurred by the Company are recorded as reduction of such costs, which may be within Selling and administrative expenses.
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of the assets. For revenue generating assets, the
Company calculates depreciation expense using the straight-line method to the estimated residual value over the estimated useful life of the assets. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.
Leases
The Company enters into operating lease contracts, as assessed at contract inception, primarily for real estate, data centers and equipment. On the lease commencement date, the Company records operating lease liabilities based on the present value of the future lease payments. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the commencement date. For real estate and data center contracts, the Company accounts for the lease and non-lease components as a single lease component. For certain equipment leases, the Company applies a portfolio approach to account for the right-of-use asset and operating lease liability. In assessing the lease term, the Company includes options to renew only when it is reasonably certain that it will be exercised, a determination which is at the sole discretion of the Company. For equipment leases used in revenue generating activities with an initial term of 12 months or less, the Company records a right-of-use asset and lease liability. For all remaining leases with an initial term of 12 months or less, the Company has elected to not record a right-of-use asset and lease liability. The Company records lease expense on a straight-line basis over the lease term beginning on the commencement date.
Goodwill
The Company performs an evaluation of goodwill at the reporting unit level, utilizing either a qualitative or quantitative impairment test. A qualitative assessment is performed at least on an annual basis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The Company performs a quantitative impairment test for each reporting unit every three years, or more frequently if circumstances indicate a potential impairment. The annual test for impairment is conducted during the fourth quarter. The Company’s reporting units included in the assessment of potential goodwill impairment are the same as its operating segments.
Under a qualitative assessment, the most recent quantitative assessment is used to determine if it is more likely than not that the reporting unit’s goodwill is impaired. As part of this qualitative assessment, the Company assesses relevant events and circumstances including macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, changes in share price and entity-specific events to determine if there is an indication of impairment.
Under a quantitative assessment, goodwill impairment is identified by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment charge is recognized in an amount equal to that excess, not to exceed the carrying amount of goodwill. Fair value of a reporting unit is determined by using a weighted combination of an income approach and a market approach, as this combination is considered the most indicative of the Company’s fair value in an orderly transaction between market participants.
Under the income approach, the Company determines fair value based on estimated future cash flows of a reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. The estimated future cash flows of each reporting unit are based on internally generated forecasts for the remainder of the respective reporting period and the next five years.
Under the market approach, the Company utilizes valuation multiples derived from publicly available information for guideline companies to provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. The valuation multiples are applied to the reporting units.
Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including Net sales growth rates, gross profit margins, operating margins, discount rates and future
market conditions, among others. Any changes in the judgments, estimates or assumptions used could produce significantly different results.
Intangible Assets
Intangible assets with determinable lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets include customer relationships, trade name and internally developed software. For internally developed software, the Company capitalizes external costs and directly attributable internal costs to acquire or create internal use software which are incurred during the application development stage. These costs relate to activities such as configuration, coding, testing and installation. Costs related to post-implementation activities such as training and maintenance are expensed as incurred. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software.
Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. In addition, each quarter, the Company evaluates whether events and circumstances warrant a revision to the remaining estimated useful life of each of these intangible assets. If the Company were to determine that a change to the remaining estimated useful life of an intangible asset was necessary, then the remaining carrying amount of the intangible asset would be amortized prospectively over that revised remaining useful life.
Cloud Computing Arrangements
The Company enters into certain cloud-based software hosting arrangements for internal use that are accounted for as service contracts. Costs incurred in implementing a cloud computing arrangement are deferred during the application development stage and presented within Prepaid expenses and other on the Consolidated Balance Sheets. Once a cloud computing arrangement is ready for its intended use, the implementation costs are amortized on a straight-line basis over the fixed term of the hosting arrangement plus any reasonably certain renewal periods.
Deferred Financing Costs
Deferred financing costs, such as underwriting, financial advisory, professional fees and other similar fees are capitalized and recognized in Interest expense, net over the estimated life of the related debt instrument using the effective interest method or straight-line method, as applicable. The Company classifies deferred financing costs as a direct deduction from the carrying value of the Long-term debt liability on the Consolidated Balance Sheets, except for deferred financing costs associated with revolving credit facilities which are presented as an asset, within Other assets on the Consolidated Balance Sheets.
Fair Value Measurements
Fair value is defined under US GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established for valuation inputs to prioritize the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
Level 1 – observable inputs such as quoted prices for identical instruments traded in active markets.
Level 2 – inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques.
Revenue Recognition
The Company is a primary distribution channel for a large group of vendors and suppliers, including original equipment manufacturers (“OEMs”), software publishers and wholesale distributors. The Company may sell hardware, software and services on standalone basis or as a bundled solution arrangement. For additional information on the disaggregation of Net sales by major category, see Note 17 (Segment Information).
The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. The Company evaluates the following indicators amongst others when determining whether it is acting as a principal in the transaction and recording revenue on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified product or service, (ii) the Company has inventory risk before the specified product or service has been transferred to a customer or after transfer of control to the customer and (iii) the Company has discretion in establishing the price for the specified product or service. If the terms of a transaction do not indicate the Company is acting as a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis.
For performance obligations whereby the Company is acting as a principal, revenue is recognized when, or as, the customer obtains control of the specified product or service. The Company recognizes revenue in transactions for which it is acting as an agent once it has arranged for the third party to provide the product or service. Depending on the nature of the arrangement, this may occur at the time the Company executes the contract with the third party or at the time it invoices the customer.
Revenue Recognition for Hardware
Revenues from the sale of hardware are recognized on a gross basis as the Company is acting as a principal in these transactions, with the selling price to the customer recorded as Net sales and the acquisition cost of the product recorded as Cost of sales. The Company recognizes revenue from these transactions when control has passed to the customer, which is usually upon delivery of the product to the customer, which typically is based on the shipping terms in the contract with the customer. The Company may leverage drop-shipment arrangements with many of its vendors and suppliers to deliver hardware to its customers without having to physically hold the inventory at its warehouses. The Company is the principal in the transaction and recognizes revenue for drop-shipment arrangements on a gross basis.
In some instances, the customer agrees to buy the hardware from the Company but requests delivery at a later date, commonly known as bill-and-hold arrangements. For these transactions, the Company deems that control passes to the customer when the hardware is ready for delivery. The Company views hardware as ready for delivery when: (i) the customer has a signed agreement, (ii) significant risk and rewards have transferred to the customer, (iii) the customer has the ability to direct the use of the hardware, (iv) the hardware has been set aside specifically for the customer and cannot be redirected to another customer and (v) as applicable, the configuration services have been completed when ordered with the hardware.
The Company’s vendor partners may provide warranties on the hardware the Company sells. These manufacturer warranties are assurance-type warranties and are not considered separate performance obligations. The warranties are not sold separately and only provide assurance that the hardware will conform with the manufacturer’s specifications. In some transactions, the vendor partner will provide the customer with an extended warranty. These extended warranties are sold separately and provide the customer with a service in addition to assurance that the product will function as expected. The Company considers these warranties to be separate performance obligations from the underlying product. For additional information regarding the accounting for extended warranties, see “Revenue Recognition for Services” below.
Revenue Recognition for Software
Revenues from the sale of software include perpetual licenses, term licenses, software assurance and cloud computing solutions. Depending on the nature of the software, the Company may be acting as a principal or an agent.
For perpetual licenses and term licenses, the software is recognized as a single performance obligation on a gross basis as the Company is acting as a principal in these transactions at the point the software is delivered to the customer (i.e., via electronic delivery of keys). Generally, these licenses are sold with accompanying third-party delivered software
assurance, which is a product that allows customers to upgrade to the latest technology if new capabilities are introduced during the period that the software assurance is in effect. The Company evaluates whether the software assurance is a separate performance obligation by assessing if the third-party delivered software assurance is critical or essential to the core functionality of the software itself. If the Company determines that the accompanying third-party delivered software assurance is critical or essential to the core functionality of the software license, the software license and the accompanying third-party delivered software assurance are recognized as a single performance obligation. As a result, the value of the product is primarily the accompanying support delivered by a third party and, therefore, the Company is acting as an agent and recognizes the revenue on a net basis once its agency obligation is complete. This is common for security software where updates are critical to the core functionality of the software. For software licenses where the accompanying third-party delivered software assurance is not critical or essential to the core functionality, the software assurance is recognized as a separate performance obligation, with the associated revenue recognized on a net basis. For additional information regarding the accounting for bundled arrangements, see “Revenue Recognition for Bundled Arrangements” below.
The Company sells cloud computing solutions which include Software as a Service (“SaaS”) and Infrastructure as a Service (“IaaS”). SaaS solutions, commonly referred to as subscription licenses, utilize third-party partners to offer the Company’s customers access to software in the cloud that enhances office productivity, provides security or assists in collaboration. IaaS solutions utilize third-party partners to enable customers to access data center functionality in a cloud-based solution, including storage, computing and networking. In these transactions, the Company is acting as an agent and recognizes revenue once its agency performance obligation is complete.
The Company’s customers are offered the opportunity by certain of its vendors to purchase software licenses and software assurance under enterprise agreements (“EAs”). For most EA transactions, the Company’s obligation to the customer is that of a distributor or sales agent of the services, where all obligations for providing the services to customers are passed to the Company’s vendors. The Company’s performance obligations are satisfied at the time of the sale. With most EAs, the Company’s vendors will transfer the license and invoice the customer directly, paying resellers an agency fee or commission on these sales. The Company records these fees as a component of Net sales as earned and there is no corresponding Cost of sales amount.
Revenue Recognition for Services
Revenues from the sale of services include professional services, hosted and managed services and vendor partner delivered services. Depending on the nature of the service, the Company may be acting as a principal or an agent.
The Company provides professional services, which include project managers and consultants recommending, designing and implementing IT solutions. The Company is primarily responsible for the fulfillment and acceptability of the professional services and has control on how to provide the requested services. As a result, professional services revenue is recognized on a gross basis either on a time and materials basis for variable contracts or proportionally as costs are incurred relative to the total estimated costs to complete for fixed fee contracts (i.e., an input method).
The Company provides hosted and managed services which primarily includes IT support services and data center services, such as managed and remote managed services, server co-location, internet connectivity and data backup and storage. Similar to professional services revenue, the Company is the principal in providing these services. Generally, hosted and managed services represent stand ready obligations and, therefore, the Company recognizes the revenue on a gross basis, ratably over the contractual term.
The Company may resell vendor partner delivered services. A common example is extended warranties, which are considered to be separate performance obligations from the underlying product. For vendor partner delivered services, the Company is arranging for such services to be provided by the vendor partner and, therefore, is acting as an agent and records revenue on a net basis at the point of sale.
Revenue Recognition for Bundled Arrangements
The Company often sells hardware, software and/or services as part of a bundled solution arrangement containing multiple performance obligations. For each deliverable that represents a distinct performance obligation, total arrangement consideration is allocated based upon the standalone selling prices of each performance obligation.
Sales In-Transit
The Company performs an analysis of the estimated number of days of sales in-transit to customers at the end of each reporting period based on a weighted-average analysis of commercial delivery terms that include drop-shipment arrangements. This analysis is the basis upon which the Company estimates the amount of Net sales in-transit at the end of the period and adjusts revenue and the related costs to reflect only what has been delivered to the customer. Changes in delivery patterns may result in a different number of business days estimated to make this adjustment.
Freight Costs
The Company records freight billed to its customers as Net sales and the related freight costs as Cost of sales when the underlying product revenue is recognized. For freight not billed to its customers, the Company records the freight costs as Cost of sales. The Company’s typical shipping terms result in shipping being performed before the customer obtains control of the product. The Company considers shipping to be a fulfillment activity and not a separate performance obligation.
Other
The nature of the Company’s contracts give rise to variable consideration in the form of volume rebates and sales returns and allowances, which are estimated at contract inception. The Company estimates variable consideration at the most likely amount to which it is expected to be entitled. This estimated amount is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of the Company’s anticipated performance and all information that is reasonably available. At the time of sale, the Company records a liability for estimated sales returns and allowances and an associated right of return asset. The Company also records a provision for volume rebates based on the evaluation of contract terms and historical experience.
The Company excludes amounts collected on behalf of third parties, such as sales taxes, when determining the transaction price.
When a contract results in revenue being recognized in excess of the amount the Company has the right to invoice to the customer, a contract asset is recorded on the Consolidated Balance Sheets. Contract assets primarily arise due to partially fulfilled contracts with integrated solutions and professional services with fixed fee arrangements.
Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services. Contract liabilities primarily arise due to professional services with fixed fee arrangements, bill-and-hold transactions where control has not passed to the customer and certain governmental contracts.
Any incremental direct costs of obtaining a contract, primarily sales commissions, are deferred on the Consolidated Balance Sheets and amortized over the period of contract performance.
The Company has elected to use the practical expedient for its performance obligations table to include only those contracts that are longer than 12 months at the time of contract inception and those contracts that are non-cancelable. Additionally, for certain governmental contracts where there are annual renewals, the Company has excluded these contracts since there is only a one-year legal obligation. Contracts that are longer than 12 months in duration are primarily related to hosted and managed services. For additional information on performance obligations longer than 12 months, see Note 4 (Accounts Receivable and Contract Balances).
Sales Taxes
Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis in the Consolidated Statements of Operations.
Advertising
Advertising costs are generally charged to expense in the period incurred and are presented in Selling and administrative expenses in the Consolidated Statements of Operations. Cooperative reimbursements from vendors are recorded in the period the related advertising expenditure is incurred. The Company generally classifies vendor
consideration as a reduction to Cost of sales. During the years ended December 31, 2023, 2022 and 2021, the Company had advertising costs of $215 million, $211 million and $199 million, respectively.
Equity-Based Compensation
The Company measures all equity-based payments using a fair-value-based method and records compensation expense over the requisite service period using the straight-line method in its Consolidated Financial Statements. The expense calculation includes estimated forfeiture rates, which have been developed based upon historical experience.
Interest Expense, net
Interest expense, net includes interest expense and interest income. Interest expense, net is recognized in the period incurred at the applicable interest rate in effect.
Foreign Currency Translation
The Company’s reporting currency is the US dollar. The functional currency of the Company’s international operating subsidiaries is generally the same as the corresponding local currency. Assets and liabilities of the international operating subsidiaries are translated at the spot rate in effect at the applicable reporting date. Revenues and expenses of the international operating subsidiaries are translated at the average exchange rates in effect during the applicable period. The resulting foreign currency translation adjustment is recorded as Accumulated other comprehensive loss, which is reflected as a separate component of Stockholders’ equity.
Income Taxes
Deferred income taxes are provided to reflect the differences between the tax bases of assets and liabilities and their reported amounts in the Consolidated Financial Statements using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company performs an evaluation of the realizability of deferred tax assets on a quarterly basis. This evaluation requires management to make use of estimates and assumptions and considers all positive and negative evidence and factors, such as the scheduled reversal of temporary differences, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies.
The Company accounts for unrecognized tax benefits based upon its assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits resulting from unrecognized tax benefits taken or expected to be taken in a tax return and recognizes interest and penalties, if any, related to its unrecognized tax benefits in income tax expense.
v3.24.0.1
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances existing income tax disclosures primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The ASU is effective for all public entities for annual periods beginning after December 15, 2024, with early adoption permitted. Entities should apply the amendments on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the impact the ASU will have on its disclosures.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses included in a segment’s profit or loss measure on an annual and interim basis. The ASU is effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities are required to apply the amendments on a retrospective basis. The Company is currently evaluating the impact the ASU will have on its disclosures.
In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. This ASU requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs and information about the obligations that are outstanding at the end of the reporting period. This disclosure requirement is intended to provide information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. The ASU is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the rollforward requirement, which is effective for fiscal years
beginning after December 15, 2023. The Company adopted the standard during the first quarter of 2023 with the exception of the rollforward requirement, which will be adopted during the first quarter of 2024. The adoption of the standard only resulted in new disclosures for amounts presented within Accounts payable - inventory financing and did not affect the Company's recognition, measurement or financial statement presentation of supplier finance program obligations on the Consolidated Financial Statements. For additional information on the new disclosures, see Note 7 (Inventory Financing Agreements).
v3.24.0.1
Acquisitions
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
Sirius
On December 1, 2021, the Company completed its acquisition of all issued and outstanding equity interests of Sirius for an aggregate consideration paid, net of cash acquired, of approximately $2.4 billion. Transaction costs related to the acquisition were $35 million, which are included in Selling and administrative expenses for the year ended December 31, 2021. The Company used the net proceeds from the December 1, 2021 issuance of the $2.5 billion aggregate principal amount of senior unsecured notes to finance the acquisition and related transaction costs. For additional information on the issuance of the senior notes, see Note 9 (Debt).
Sirius is a leading provider of secure, mission-critical technology-based solutions and is one of the largest IT solutions integrators in the United States, leveraging its services-led approach, broad portfolio of hybrid infrastructure solutions, and deep technical expertise of its 2,600 coworkers to support corporate and public customers. This strategic acquisition enhances the Company’s breadth and depth of services and solutions offerings.
Following the close of the acquisition, the Company issued a mix of cash and equity-based retention awards to certain Sirius coworkers, which vest over a required service period and will be recorded as expense over the required service period. The results of operations of Sirius are included in the Consolidated Financial Statements of the Company beginning on the acquisition date. These amounts are presented within the Corporate, Small Business and Public reportable segments. For the year ended December 31, 2021, the Company’s Consolidated Financial Statements included $197 million of net sales and $9 million of net income from the results of operations of Sirius.
The Sirius acquisition has been accounted for as a business combination. During the fourth quarter of 2022, the Company finalized the purchase price and completed its identification and measurement of the assets acquired and liabilities assumed as of the date of the acquisition. There were no significant adjustments to the preliminary purchase price allocation disclosed in the December 31, 2021 Consolidated Financial Statements. The table below summarizes the final purchase price allocation to acquired assets, including goodwill and intangible assets.
Acquisition-Date
Fair Value
Cash and cash equivalents$52.8 
Accounts receivable634.1 
Intangible assets, net1,164.0 
Goodwill1,566.6 
Other assets438.1 
Total assets acquired3,855.6 
Accounts payable-trade633.8 
Debt170.1 
Deferred tax liabilities207.0 
Other liabilities389.7 
Total liabilities assumed1,400.6 
Total purchase price$2,455.0 
The Company used the income approach to value the intangible assets, consisting of acquired customer relationships and trade name. The fair value measurements were primarily based on significant inputs that are not observable, which are categorized as a Level 3 measurement in the fair value hierarchy. Significant inputs used to value these intangible assets include projection of all future cash flows, long-term growth rates, customer attrition rates, discount rates,
royalty rates and applicable income tax rates. The excess purchase price recorded to goodwill primarily represents the future economic benefits the Company expects to achieve as a result of combining operations and Sirius’ workforce. The Company finalized its allocation of goodwill to the reportable segments during the fourth quarter of 2022. For additional information on goodwill allocation, see Note 6 (Goodwill and Other Intangible Assets).
The amount of goodwill expected to be deductible for income tax purposes is estimated to be $160 million.
The table below summarizes the fair value of identifiable intangible assets acquired.
Useful Lives (Years)Acquisition-Date
Fair Value
Customer relationships12$1,140.0 
Trade name124.0 
$1,164.0 
The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of Sirius had been consummated on January 1, 2020. The pro forma adjustments are based on historical results of operations and financial condition of the Company and Sirius and do not include any anticipated synergies or other expected benefits of the acquisition. The unaudited pro forma financial information is not necessarily indicative of the actual consolidated results of operations had the acquisition actually consummated on January 1, 2020, nor are they indicative of future consolidated results of operations of the combined company.
Year Ended December 31,
20212020
Pro forma net sales$22,793.0 $20,659.0 
Pro forma net income977.4 771.1 
The pro forma adjustments include, among other things:
Estimated impact to conform Sirius’ classification to the Company’s financial statement presentation.
Estimated amortization expense of intangible assets acquired.
Estimated compensation expense for the cash and equity retention awards.
Interest expense for the additional indebtedness incurred to fund the acquisition.
Transaction costs that have been incurred in connection with the acquisition.
Focal Point Data Risk LLC and certain affiliates (“Focal Point”)
On July 30, 2021, the Company completed the acquisition of Focal Point through a purchase of all issued and outstanding equity interests. Focal Point is a leading US-based cybersecurity services firm that brings a team skilled in identity and access management as well as the ability to serve customers across the full cybersecurity landscape. This strategic acquisition expands the Company’s services and capabilities to help customers address risks posed by malicious cyber threats and cyber workforce shortages, while helping customers navigate shifting data protection laws. The acquisition of Focal Point was not material to the Company’s results of operations and financial condition. The financial results of Focal Point have been included in the Company’s Consolidated Financial Statements since the date of the acquisition. These amounts are presented within the Public reportable segment and are insignificant during the year ended December 31, 2021. The purchase price allocation was final during the second quarter of 2022 and there were no adjustments to the preliminary purchase price allocation. The Company recorded $36 million of intangible assets related to customer relationships.
Amplified IT LLC (“Amplified IT”)
On March 15, 2021, the Company completed the acquisition of Amplified IT through a purchase of all issued and outstanding membership interests. Amplified IT is a Google Premium education partner and leading provider of Google Cloud services, solutions and software for education partners. This strategic acquisition expands the
Company’s services and solutions capabilities to help schools leverage technology to achieve greater educational outcomes. The acquisition of Amplified IT was not material to the Company’s results of operations and financial condition. The financial results of Amplified IT have been included in the Company’s Consolidated Financial Statements since the date of the acquisition. These amounts are presented within the Public reportable segment and are insignificant during the year ended December 31, 2021. The purchase price allocation was final during the first quarter of 2022 and there were no adjustments to the preliminary purchase price allocation. The Company recorded approximately $88 million of intangible assets, which primarily consisted of customer relationships.
v3.24.0.1
Accounts Receivable and Contract Balances
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Accounts Receivable and Contract Balances Accounts Receivable and Contract Balances
Accounts Receivable
The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets:
December 31,
20232022
Accounts receivable, current(1)
$4,567.5 $4,461.3 
Accounts receivable, noncurrent(2)
337.5 203.0 
Total accounts receivable$4,905.0 $4,664.3 
(1)Accounts receivable, current are presented within Accounts receivable, net of allowance for credit losses on the Consolidated Balance Sheets.
(2)Accounts receivable, noncurrent are presented within Other assets on the Consolidated Balance Sheets.
From time to time, the Company transfers certain accounts receivable, without recourse, to third-party financial companies as a method to reduce the Company’s credit exposure and accelerate cash collections. Such transfers are recognized as a sale and the related accounts receivable is derecognized from the Consolidated Balance Sheets upon receipt of payment from the third-party financing company. During the years ended December 31, 2023 and 2022, the Company sold approximately $506 million and $539 million of accounts receivable, respectively.
The Company recognizes an allowance for credit losses at inception and reassesses quarterly on a pool basis based on expected collectability and forecasted macroeconomic conditions. The following table details the changes in the allowance for credit losses related to accounts receivable:
As of December 31,
20232022
Balance as of January 1$25.7 $20.4 
Increase to provision for credit losses14.9 8.3 
Write-offs charged against the allowance for credit losses(14.5)(6.0)
Other2.7 3.0 
Balance as of December 31$28.8 $25.7 
Contract Balances
Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from customers. Contract assets represent revenue recognized on performance obligations satisfied or partially satisfied for which the Company has no unconditional right to consideration. Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services.
The following table details information about the Company’s contract balances recognized on the Consolidated Balance Sheets:
December 31,
20232022
Contract assets(1)
$111.8 $242.1 
Contract liabilities(2)(3)
527.4 525.3 
(1)Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets.
(2)Includes $40 million and $40 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively.
(3)For the years ended December 31, 2023 and 2022, the Company recognized revenue of $329 million and $238 million, respectively, related to its contract liabilities that were included in the beginning balance of the respective periods.
A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For additional information regarding the Company’s performance obligations, see Note 1 (Description of Business and Summary of Significant Accounting Policies). The following table represents the total transaction price for the remaining performance obligations as of December 31, 2023 related to non-cancelable contracts longer than 12 months in duration that is expected to be recognized over future periods.
Within 1 YearYears 1-2Years 2-3Thereafter
Remaining performance obligations$90.9 $52.4 $25.0 $5.8 
v3.24.0.1
Property and Equipment
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consist of the following:
December 31,
Useful Lives (Years)20232022
Computer and data processing equipment
3 - 5
$204.7 $192.1 
Building and leasehold improvements
5 - 25
125.3 149.5 
Machinery and equipment
5 - 10
46.8 46.2 
Computer software
3 - 5
35.7 34.6 
Furniture and fixtures
5 - 10
23.5 30.5 
Land-*28.1 27.7 
Revenue generating assets
1 - 5
1.4 1.2 
Construction in progress-*38.7 16.9 
Property and equipment, gross504.2 498.7 
Less: Accumulated depreciation(308.7)(309.9)
Property and equipment, net$195.5 $188.8 
*Asset is not depreciated.
During 2023, 2022 and 2021, the Company recorded disposals of $56 million, $7 million and $20 million, respectively, to derecognize Property and equipment that were no longer in use.
Depreciation expense for the years ended December 31, 2023, 2022, and 2021 was $52 million, $58 million and $42 million, respectively.
v3.24.0.1
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill
The changes in Goodwill by reportable segment are as follows:
CorporateSmall BusinessPublic
Other(1)
Consolidated
Balances as of December 31, 2021(2)
$2,024.4 $266.1 $1,737.7 $354.7 $4,382.9 
Sirius measurement period adjustment(3)
109.0 (35.9)(78.9)— (5.8)
Foreign currency translation— — — (34.4)(34.4)
Balances as of December 31, 2022(2)
2,133.4 230.2 1,658.8 320.3 4,342.7 
Acquisition activity(4)
19.7 — 36.3 — 56.0 
Foreign currency translation— — — 14.7 14.7 
Balances as of December 31, 2023(2)
$2,153.1 $230.2 $1,695.1 $335.0 $4,413.4 
(1)Other is comprised of CDW UK and CDW Canada operating segments.
(2)Goodwill is net of accumulated impairment losses of $1,571 million, $354 million and $28 million related to the Corporate, Public and Other segments, respectively, recorded in 2008 and 2009.
(3)For additional information regarding the Sirius acquisition, see Note 3 (Acquisitions).
(4)Includes other immaterial acquisitions.
The Company performed a quantitative impairment assessment for all reporting units during the fourth quarter of 2023 and determined that the fair values of each reporting unit substantially exceeded their carrying values and, therefore, no impairment existed. The Company performed a qualitative impairment assessment for all reporting units during the fourth quarter of 2022 and concluded that it was more likely than not that the fair values of all reporting units exceeded their respective carrying values and, therefore, no impairment existed.
Other Intangible Assets
A summary of intangible assets is as follows:
December 31, 2023Useful Lives (Years)Gross Carrying AmountAccumulated
Amortization
Net Carrying Amount
Customer relationships
3 - 14
$3,379.7 $(2,236.6)$1,143.1 
Trade name
1 - 20
446.1 (366.6)79.5 
Internally developed software
3 - 5
474.9 (330.6)144.3 
Other
1 - 10
4.3 (1.5)2.8 
Total$4,305.0 $(2,935.3)$1,369.7 
December 31, 2022Useful Lives (Years)Gross Carrying AmountAccumulated
Amortization
Net Carrying Amount
Customer relationships
3 - 14
$3,352.4 $(2,100.6)$1,251.8 
Trade name
1 - 20
446.1 (341.0)105.1 
Internally developed software
3 - 5
429.8 (297.6)132.2 
Other
1 - 10
2.5 (0.9)1.6 
Total$4,230.8 $(2,740.1)$1,490.7 
During the years ended December 31, 2023, 2022 and 2021, the Company recorded disposals of $33 million, $8 million and $2 million, respectively, to derecognize intangible assets that were no longer in use.
During the years ended December 31, 2023, 2022 and 2021, the Company recorded amortization expense related to intangible assets of $219 million, $233 million and $149 million, respectively.
Estimated future amortization expense related to intangible assets is as follows:
Years ending December 31,Estimated Future Amortization Expense
2024$212.8 
2025197.2 
2026179.6 
2027152.3 
2028123.0 
Thereafter504.8 
Total future amortization expense $1,369.7 
v3.24.0.1
Inventory Financing Agreements
12 Months Ended
Dec. 31, 2023
Inventory Financing Agreements [Abstract]  
Inventory Financing Agreements Inventory Financing Agreements
The Company has entered into agreements with financial institutions to facilitate the purchase of inventory from designated suppliers under certain terms and conditions to enhance liquidity. Under these agreements, the Company receives extended payment terms and agrees to pay the financial institution a stated amount of confirmed invoices from its designated suppliers. The Company does not incur any interest or other incremental expenses associated with these agreements as balances are paid when they are due. Additionally, the Company has no involvement in establishing the terms or conditions of the arrangements between its suppliers and the financial institution.
The amounts outstanding under these agreements as of December 31, 2023 and December 31, 2022 were $431 million and $519 million, respectively, and are separately presented as Accounts payable-inventory financing on the Consolidated Balance Sheets. The majority of such outstanding amounts relates to a floorplan sub-facility that is incorporated in the Company’s Revolving Loan Facility, as defined within Note 9 (Debt). A portion of the Company’s availability under the Revolving Loan Facility is reserved to cover the obligation to pay the financial institution. For additional information regarding the Revolving Loan Facility, see Note 9 (Debt).
v3.24.0.1
Financial Instruments
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The Company’s indebtedness creates interest rate risk on its variable-rate debt. The Company may use derivative financial instruments to manage its exposure to interest rate risk. For additional information, see Note 9 (Debt).
During the year ended December 31, 2023, the Company executed interest rate collar agreements for a total notional value of $400 million. The terms of the agreements provide for a contractually specified interest rate cap and an interest rate floor based on a Secured Overnight Financing Rate (“SOFR”). The Company receives payment from the counterparty if SOFR is greater than the cap or pays the counterparty if SOFR is below the floor. If SOFR is between the floor and cap, no payment is due to either party.
As of December 31, 2023, the interest rate collar agreements were classified within Long-term liabilities - Other liabilities on the Consolidated Balance Sheets for which the fair value was not material. The total notional amount of the interest rate collar agreements was $400 million as of December 31, 2023, which mature on September 30, 2026. There were no outstanding derivative instruments as of December 31, 2022.
The fair value of the Company’s interest rate collar agreements is classified as Level 2 in the fair value hierarchy. The valuation of the interest rate collar agreements is derived using a discounted cash flow analysis on the expected cash receipts or cash disbursements that would occur if variable interest rates rise above or fall below the strike rates of the interest rate cap and interest rate floor, respectively. This analysis reflects the contractual terms of the interest rate collar agreements, including the period to maturity, and uses observable market-based inputs, including SOFR curves and implied volatilities. The Company also incorporates insignificant credit valuation adjustments to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. The counterparty credit spreads are based on publicly available credit information obtained from a third-party credit data provider.
The interest rate collars are designated as cash flow hedges. The changes in the fair value of derivatives that qualify as cash flow hedges are recorded in Accumulated other comprehensive loss (“AOCL”) and are subsequently reclassified into Interest expense, net in the period when the hedged forecasted transaction affects earnings. During the year ended December 31, 2023, the change in fair value for the effective portion of the derivative financial instruments and the reclassification from AOCL to Interest expense, net was not material.
v3.24.0.1
Debt
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
As of December 31,
Maturity DateInterest Rate20232022
Credit Facility
Senior unsecured revolving loan facilityDecember 2026Variable$— $72.5 
Term Loans
Senior unsecured term loan facilityDecember 2026Variable634.5 784.5 
Unsecured Senior Notes
Senior notes due 2024December 20245.500 %575.0 575.0 
Senior notes due 2025May 20254.125 %600.0 600.0 
Senior notes due 2026December 20262.670 %1,000.0 1,000.0 
Senior notes due 2028April 20284.250 %600.0 600.0 
Senior notes due 2028December 20283.276 %500.0 500.0 
Senior notes due 2029February 20293.250 %700.0 700.0 
Senior notes due 2031December 20313.569 %1,000.0 1,000.0 
Total unsecured senior notes4,975.0 4,975.0 
Receivable financing liability56.9115.4 
Other long-term obligations6.9 11.6 
Unamortized deferred financing fees(28.4)(36.3)
Current maturities of long-term debt(613.1)(56.3)
Total long-term debt$5,031.8 $5,866.4 
As of December 31, 2023, the Company is in compliance with the covenants under its credit agreements and indentures.
Credit Facility
The Company has a variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”) from which it may draw tranches denominated in US dollars, British pounds or Euros. On June 7, 2023, the Revolving Loan Facility was amended to replace the London Interbank Offered Rate (“LIBOR”) with SOFR as the interest rate benchmark, which was effective for the first interest rate period beginning after July 1, 2023. Under the amended agreement, the interest rate is based on SOFR plus a spread adjustment and a margin based on the Company’s senior unsecured rating. The Revolving Loan Facility is used by the Company for borrowings, issuances of letters of credit and floorplan financing. As of December 31, 2023, the Company could have borrowed up to an additional $1.2 billion under the Revolving Loan Facility. As of December 31, 2023, the Revolving Loan Facility had $392 million reserved for the floorplan sub-facility.
Term Loan
The senior unsecured term loan facility (the “Term Loan Facility”) has a variable interest rate. On June 7, 2023, the Term Loan Facility was amended to replace LIBOR with SOFR as the interest rate benchmark, which was effective for the first interest rate period beginning after July 1, 2023. Under the amended agreement, the interest rate is based on SOFR plus a spread adjustment and a margin based on the Company’s senior unsecured rating. During the year ended
December 31, 2023, the Company prepaid $150 million on the Term Loan Facility without penalty. As a result of the prepayments made to date, no additional mandatory payments are required on the remaining principal amount until its maturity date on December 1, 2026.
Unsecured Senior Notes
The unsecured senior notes have a fixed interest rate, which is paid semi-annually.
Receivable Financing
The receivable financing liability relates to certain accounts receivable transferred to third-party financial institutions that did not qualify as a sale under the terms of the agreements. While the terms of such agreements are on a nonrecourse basis, the transfers of accounts receivable could not achieve certain criteria that would allow derecognition of the accounts receivable. The proceeds from these arrangements are recognized as a liability and the associated accounts receivable remains on the Consolidated Balance Sheet until the liability is settled. The Company did not execute any transfers under these agreements during the years ended December 31, 2023 and 2022.
Total Debt Maturities
As of December 31, 2023, aggregate future maturities of debt, excluding unamortized deferred financing fees, are as follows for the years ending December 31:
YearsDebt Maturities
2024$613.8 
2025623.9 
20261,635.6 
2027— 
20281,100.0 
Thereafter1,700.0 
Total debt maturities$5,673.3 
Fair Value
The fair values of the unsecured senior notes were estimated using quoted market prices for identical liabilities that are traded in over-the-counter secondary markets. The fair value of the Term Loan Facility was estimated using dealer quotes and other market observable inputs for comparable liabilities. The unsecured senior notes and Term Loan Facility were classified as Level 2 within the fair value hierarchy. The carrying value of the Revolving Loan Facility approximates fair value.
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:
December 31,
20232022
Fair value$5,348.2 $5,412.6 
Carrying value5,673.3 5,959.0 
v3.24.0.1
Income Taxes
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes was taxed under the following jurisdictions:
Year Ended December 31,
202320222021
Domestic$1,298.1 $1,355.6 $1,186.7 
Foreign152.1 132.2 111.1 
Total$1,450.2 $1,487.8 $1,297.8 
Components of Income tax expense (benefit) consist of the following:
Year Ended December 31,
202320222021
Current:
Federal$267.3 $281.8 $235.6 
State69.7 75.8 52.9 
Foreign41.6 33.9 27.4 
Total current378.6 391.5 315.9 
Deferred:
Domestic(29.3)(15.0)(8.7)
Foreign(3.4)(3.2)2.0 
Total deferred(32.7)(18.2)(6.7)
Income tax expense$345.9 $373.3 $309.2 
The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective tax rate was as follows:
Year Ended December 31,
202320222021
Statutory federal income tax rate$304.5 21.0 %$312.4 21.0 %$272.5 21.0 %
State taxes, net of federal effect55.8 3.8 61.1 4.1 50.3 3.9 
Excess tax benefit of equity awards(29.6)(2.0)(12.0)(0.8)(30.1)(2.3)
Tax on foreign earnings8.5 0.6 3.0 0.2 1.7 0.1 
Effect of tax law changes— — — — 4.8 0.4 
Other6.7 0.5 8.8 0.6 10.0 0.7 
Effective tax rate$345.9 23.9 %$373.3 25.1 %$309.2 23.8 %
The tax effect of temporary differences that give rise to net deferred income tax liabilities is presented below.
December 31,
20232022
Deferred tax assets:
Contract liabilities$38.4 $46.3 
Equity compensation plans34.5 31.3 
Net operating loss and credit carryforwards, net17.0 17.0 
Payroll and benefits17.2 24.3 
Operating lease liabilities45.6 48.5 
Accounts receivable20.1 18.1 
Other19.9 19.5 
Total deferred tax assets192.7 205.0 
Deferred tax liabilities:
Acquisition-related intangibles269.8 293.3 
Property and equipment22.4 38.1 
Operating lease right-of-use assets27.6 32.9 
Other26.7 27.1 
Total deferred tax liabilities346.5 391.4 
Deferred tax asset valuation allowance17.0 17.0 
Net deferred tax liabilities$170.8 $203.4 
The Company has income tax net operating losses of $5 million that do not expire and international tax credit carryforwards of $16 million, which expire in 2027.
The Company is indefinitely reinvested in its UK business, and therefore did not provide for any US deferred taxes on the earnings of the UK business. The Company is not permanently reinvested in its Canadian business and therefore has recognized deferred tax liabilities of $6 million as of December 31, 2023 related to Canada withholding taxes on earnings of its Canadian business.
In the ordinary course of business, the Company is subject to review by domestic and foreign taxing authorities, including the Internal Revenue Service (“IRS”). In general, the Company is no longer subject to audit by the IRS or state, local, or foreign taxing authorities for tax years through 2014. Various taxing authorities are in the process of auditing income tax returns of the Company and its subsidiaries. The Company does not anticipate that any adjustments from the audits would have a material impact on its Consolidated Financial Statements.
Changes in the Company’s unrecognized tax benefits as of December 31, 2023, 2022 and 2021 were as follows:
Year Ended December 31,
202320222021
Balance as of January 1$18.7 $18.4 $18.3 
Additions for current year and prior year0.6 0.3 0.1 
Balance as of December 31$19.3 $18.7 $18.4 
As of December 31, 2023, the Company had $19 million of unrecognized tax benefits that, if recognized, would have decreased income taxes and the corresponding effective income tax rate and increased net income. The impact of recognizing these tax benefits, net of the federal income tax benefit related to unrecognized state income tax benefits, would be approximately $16 million.
v3.24.0.1
Leases
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company has operating leases primarily for real estate, data centers and equipment. Remaining lease terms are up to 12 years.
Supplemental Consolidated Balance Sheets information related to the Company’s operating leases is as follows:
December 31,
LeaseBalance Sheet Presentation20232022
Operating lease right-of-use assetOperating lease right-of-use assets$128.8 $149.2 
Current operating lease liabilitiesAccrued expenses and other current liabilities - Other$34.0 $31.9 
Long-term operating lease liabilitiesLong-term liabilities - Operating lease liabilities164.0 175.2 
Total lease liabilities$198.0 $207.1 
December 31,
Lease term and discount rate20232022
Weighted average remaining lease term (years)8.08.4
Weighted average discount rate4.03 %3.86 %
Operating lease expense for the years ended December 31, 2023, 2022 and 2021 was $62 million, $62 million and $50 million, respectively. During the year ended December 31, 2023, the Company initiated workplace optimization activities, which included the reduction of its real estate portfolio. As a result of the workplace optimization, the Company recognized an impairment charge of $13 million during the year ended December 31, 2023, which is presented in Selling and administrative expenses in the Consolidated Statements of Operations.
Maturities of operating lease liabilities are as follows:
December 31, 2023
2024$41.4 
202537.9 
202631.3 
202723.8 
202819.0 
Thereafter84.4 
Total lease payments $237.8 
Less: Interest(36.4)
Less: Lease Incentives(1)
(3.4)
Present value of lease liabilities$198.0 
(1)Includes lease incentives that will be realized in 2024.

Supplemental cash flow information related to operating leases is as follows:
Year Ended December 31,
202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$41.7 $42.8 $35.9 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$24.6 $43.6 $49.8 
v3.24.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share Repurchase Program
The Company has a share repurchase program under which it may repurchase shares of its common stock from time to time in privately negotiated transactions, open market purchases or other transactions as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other
factors including but not limited to share price, regulatory requirements and capital availability. The share repurchase program does not obligate the Company to repurchase any minimum dollar amount or number of shares and the program may be modified, suspended or discontinued at any time.
During 2023, the Company repurchased 2.6 million shares of its common stock for $500 million under the share repurchase program. As of December 31, 2023, the Company has $338 million remaining under the program. On February 7, 2024, the Company announced that its Board of Directors authorized a $750 million increase to the share repurchase program, which was incremental to the amount remaining under the $750 million authorization announced on February 8, 2023.
v3.24.0.1
Equity-Based Compensation
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Disclosure [Abstract]  
Equity-Based Compensation Equity-Based Compensation
Equity-based compensation expense, which is recorded in Selling and administrative expenses in the Consolidated Statements of Operations was as follows:
Year Ended December 31,
202320222021
Equity-based compensation expense$93.7 $91.1 $72.6 
Income tax benefit(1)
(17.3)(15.5)(12.2)
Equity-based compensation expense, net of tax$76.4 $75.6 $60.4 
(1)Represents equity-based compensation tax expense at the statutory tax rates. Excess tax benefits associated with equity awards are excluded from this disclosure and separately disclosed in Note 10 (Income Taxes).
The total unrecognized compensation cost related to non-vested awards was $92 million as of December 31, 2023 and is expected to be recognized over a weighted-average period of 1.8 years.
Long-Term Incentive Plan
During May 2021, the Company adopted the 2021 Long-Term Incentive Plan (“2021 LTIP”), which replaced the former 2013 Long-Term Incentive Plan in connection with the issuance of new equity awards (“2013 LTIP” and, together with the 2021 LTIP, the “LTIPs”). The 2021 LTIP provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, bonus stock and performance awards. The maximum aggregate number of shares of the Company’s common stock that may be issued under the 2021 LTIP is 22.1 million shares. As of December 31, 2023, 6.7 million shares were available for issuance under the 2021 LTIP. Authorized but unissued shares are reserved for issuance in connection with equity-based awards.
Stock Options
The exercise price of a stock option granted is equal to the fair value of the underlying stock on the date of the grant. Stock options granted under the LTIPs have a contractual term of ten years and generally vest ratably over three years. To estimate the fair value of options granted, the Company uses the Black-Scholes option pricing model.
The weighted-average assumptions used to value the stock options granted were as follows:
Year Ended December 31,
202320222021
Weighted average grant date fair value$64.77 $43.20 $40.83 
Expected volatility (1)
29.94 %27.50 %30.00 %
Risk-free rate (2)
3.80 %1.94 %0.93 %
Expected dividend yield1.24 %1.17 %1.03 %
Expected term (in years) (3)
5.56.05.6
(1)Based on a weighting of the historical volatility and implied volatility.
(2)Based on a composite US Treasury rate.
(3)Based on contractual term length and on historical experience of both exercised and unexercised options.
Stock option activity for the year ended December 31, 2023 was as follows:
OptionsNumber of OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (years)Aggregate Intrinsic Value
Outstanding at January 1, 2023
3,499,301 $104.23 
Granted460,767 212.08 
Forfeited/Expired(54,584)179.15 
Exercised(1)
(714,538)69.06 
Outstanding at December 31, 2023
3,190,946 126.40 5.96$322.0 
Vested and exercisable at December 31, 2023
2,185,919 $99.35 4.97$279.7 
Expected to vest after December 31, 2023
993,307 $185.15 8.11$41.9 
(1)The total intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $97 million, $40 million and $117 million, respectively.
Restricted Stock Units (“RSUs”)
Restricted stock units represent the right to receive unrestricted shares of the Company’s stock at the time of vesting. RSUs granted under the LTIPs vest either ratably over three years or cliff-vest at the end of three years. The fair value of RSUs is equal to the closing price of the Company’s common stock on date of grant.
RSU activity for the year ended December 31, 2023 was as follows:
Number of UnitsWeighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023
432,060 $166.92 
Granted (1)
172,048 189.30 
Vested (2)
(175,795)154.02 
Forfeited(29,700)172.49 
Non-vested at December 31, 2023
398,613 181.85 
(1)The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $189.30, $169.11 and $172.96, respectively.
(2)The aggregate fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $27 million, $16 million and $2 million, respectively.
Performance Share Units (“PSUs”)
Performance share units represent the right to receive unrestricted shares of the Company’s stock at the time of vesting. PSUs granted under the LTIPs cliff-vest at the end of three years. The majority of the PSUs will vest between 0% to 200% of the number of PSUs granted based on the Company’s performance against a cumulative adjusted free
cash flow measure and cumulative non-GAAP net income per diluted share measure over a three-year performance period.
PSU activity for the year ended December 31, 2023 was as follows:
Number of UnitsWeighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023
444,233 $165.11 
Granted (1)
147,425 210.30 
Attainment adjustment (2)
109,462 95.17 
Vested (3)
(275,334)125.60 
Forfeited(30,904)182.82 
Non-vested at December 31, 2023
394,882 188.76 
(1)The weighted-average grant date fair value of PSUs granted during the years ended December 31, 2023, 2022 and 2021 was $210.30, $176.14 and $154.37, respectively.
(2)During the year ended December 31, 2023, the PSUs that vested at December 31, 2022 were adjusted to reflect final attainment.
(3)The aggregate fair value of PSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $35 million, $28 million and $28 million, respectively.
v3.24.0.1
Earnings Per Share
12 Months Ended
Dec. 31, 2023
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:
Year Ended December 31,
202320222021
Basic weighted-average shares outstanding134.6 135.2 138.5 
Effect of dilutive securities (1)
1.7 1.8 2.0 
Diluted weighted-average shares outstanding (2)
136.3 137.0 140.5 
(1)The dilutive effect of outstanding stock options, restricted stock units, performance share units and Coworker Stock Purchase Plan (“CSPP”) units is reflected in the diluted weighted-average shares outstanding using the treasury stock method.
(2)There were fewer than 0.2 million potential common shares excluded from diluted weighted-average shares outstanding for the years ended December 31, 2023, 2022 and 2021, respectively. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect.
v3.24.0.1
Coworker Retirement and Other Compensation Benefits
12 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Coworker Retirement and Other Compensation Benefits Coworker Retirement and Other Compensation Benefits
Profit Sharing Plan and Other Savings Plans
The Company has a profit-sharing plan that includes a salary reduction feature established under the Internal Revenue Code Section 401(k) covering substantially all coworkers in the US. In addition, coworkers outside the US participate in other savings plans. Company contributions to the profit sharing and other savings plans are made in cash and determined at the discretion of the Board of Directors. For the years ended December 31, 2023, 2022 and 2021, the amounts expensed for these plans were $20 million, $43 million and $46 million, respectively.
CSPP
The Company has a CSPP that provides the opportunity for eligible coworkers to acquire shares of the Company’s common stock through accumulated payroll deductions at a 5% discount from the closing market price on the final day of the offering period. There is no additional compensation expense associated with the CSPP.
v3.24.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [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.
As of December 31, 2023, 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 Consolidated Financial Statements could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters.
A subsidiary of the Company received a Civil Investigative Demand dated September 20, 2021 from the US Department of Justice (“DOJ”) in connection with a False Claims Act investigation. The DOJ requested information related to teaming agreements with OEMs, and the Company is cooperating with the DOJ.
v3.24.0.1
Segment Information
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s segment information reflects the way the chief operating decision maker uses internal reporting to evaluate business performance, allocate resources and manage operations.
The Company has three reportable segments: Corporate, which is comprised primarily of private sector business customers with more than 250 employees in the US, Small Business, primarily servicing private sector business customers with up to 250 employees 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 UK and CDW Canada, both of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category (“Other”).
The Company has centralized logistics and headquarters functions that provide services to the segments. The logistics function includes purchasing, distribution and fulfillment services to support the Corporate, Small Business and Public segments. As a result, costs and intercompany charges associated with the logistics function are fully allocated to all of these segments based on a percent of Net sales. The centralized headquarters function provides services in areas such as accounting, information technology, marketing, legal and coworker services. Headquarters function costs that are not allocated to the segments are included under the heading of “Headquarters” in the tables below.
Segment information for Total assets and capital expenditures is not presented, as such information is not used in measuring segment performance or allocating resources between segments.
Selected Segment Financial Information
Information about the Company’s segments for the years ended December 31, 2023, 2022 and 2021 is as follows:
CorporateSmall BusinessPublicOtherHeadquartersTotal
2023:
Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $— $21,376.0 
Operating income (loss)846.8 177.3 735.0 142.1 (220.3)1,680.9 
Depreciation and amortization expense(82.1)(4.7)(58.4)(30.1)(95.4)(270.7)
2022:
Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $— $23,748.7 
Operating income (loss)931.7 186.8 681.7 130.7 (195.7)1,735.2 
Depreciation and amortization expense(98.0)(6.4)(67.9)(31.9)(86.4)(290.6)
2021:
Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $— $20,820.8 
Operating income (loss)697.3 167.7 606.7 115.8 (168.5)1,419.0 
Depreciation and amortization expense(22.9)(4.1)(57.2)(34.4)(72.6)(191.2)
    Geographic Areas and Revenue Mix
 Year Ended December 31, 2023
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$8,894.5 $1,534.5 $8,299.4 $26.5 $18,754.9 
Rest of World66.3 21.5 6.3 2,527.0 2,621.1 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Major Product and Services
Hardware$6,216.9 $1,242.3 $6,460.4 $1,783.0 $15,702.6 
Software1,772.3 232.8 1,295.4 498.8 3,799.3 
Services909.1 62.6 531.5 258.1 1,761.3 
Other(2)
62.5 18.3 18.4 13.6 112.8 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Sales by Channel
Corporate$8,960.8 $— $— $— $8,960.8 
Small Business— 1,556.0 — — 1,556.0 
Government— — 2,669.1 — 2,669.1 
Education— — 3,298.3 — 3,298.3 
Healthcare— — 2,338.3 — 2,338.3 
Other— — — 2,553.5 2,553.5 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$7,515.7 $1,374.1 $7,411.1 $2,212.0 $18,512.9 
Transferred at a point in time where CDW is agent778.0 145.3 480.6 117.9 1,521.8 
Transferred over time where CDW is principal667.1 36.6 414.0 223.6 1,341.3 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
Year Ended December 31, 2022
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$10,321.2 $1,934.8 $8,550.8 $21.8 $20,828.6 
Rest of World28.9 4.1 0.5 2,886.6 2,920.1 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Major Product and Services
Hardware$7,561.0 $1,610.7 $6,763.9 $2,155.4 $18,091.0 
Software1,781.5 232.9 1,196.9 473.6 3,684.9 
Services929.3 73.8 570.7 268.2 1,842.0 
Other(2)
78.3 21.5 19.8 11.2 130.8 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Sales by Channel
Corporate$10,350.1 $— $— $— $10,350.1 
Small Business— 1,938.9 — — 1,938.9 
Government— — 2,574.3 — 2,574.3 
Education— — 3,621.4 — 3,621.4 
Healthcare— — 2,355.6 — 2,355.6 
Other— — — 2,908.4 2,908.4 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$8,971.4 $1,751.1 $7,717.1 $2,576.5 $21,016.1 
Transferred at a point in time where CDW is agent749.3 140.1 426.9 97.7 1,414.0 
Transferred over time where CDW is principal629.4 47.7 407.3 234.2 1,318.6 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
Year Ended December 31, 2021
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$8,165.4 $1,870.1 $8,183.6 $19.7 $18,238.8 
Rest of World14.3 — — 2,567.7 2,582.0 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Major Product and Services
Hardware$6,427.9 $1,587.9 $6,827.1 $1,926.7 $16,769.6 
Software1,172.4 211.0 1,017.3 401.7 2,802.4 
Services510.1 49.1 321.5 245.4 1,126.1 
Other(2)
69.3 22.1 17.7 13.6 122.7 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Sales by Channel
Corporate$8,179.7 $— $— $— $8,179.7 
Small Business— 1,870.1 — — 1,870.1 
Government— — 2,155.6 — 2,155.6 
Education— — 4,108.7 — 4,108.7 
Healthcare— — 1,919.3 — 1,919.3 
Other— — — 2,587.4 2,587.4 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$7,332.3 $1,734.7 $7,634.3 $2,288.7 $18,990.0 
Transferred at a point in time where CDW is agent517.5 112.3 336.6 83.2 1,049.6 
Transferred over time where CDW is principal329.9 23.1 212.7 215.5 781.2 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
The following table presents Net sales by major category for the years ended December 31, 2023, 2022 and 2021. Categories are based upon internal classifications.
Year Ended December 31,
2023
2022
2021
Net SalesPercentage
of Total Net
Sales
Net SalesPercentage
of Total Net
Sales
Net SalesPercentage
of Total Net
Sales
Hardware:
Notebooks/Mobile Devices$4,690.5 21.9 %$6,179.7 26.0 %$6,659.4 32.0 %
Netcomm Products3,185.4 14.9 2,729.7 11.5 1,950.9 9.4 
Collaboration(3)
1,909.7 8.9 2,394.8 10.1 2,218.8 10.7 
Data Storage and Servers(3)
2,240.7 10.5 2,479.0 10.4 2,044.9 9.8 
Desktops1,069.1 5.0 1,284.9 5.4 1,203.6 5.8 
Other Hardware(3)
2,607.2 12.3 3,022.9 12.7 2,692.0 12.9 
Total Hardware15,702.6 73.5 18,091.0 76.1 16,769.6 80.6 
Software(1)
3,799.3 17.8 3,684.9 15.5 2,802.4 13.5 
Services(1)
1,761.3 8.2 1,842.0 7.8 1,126.1 5.4 
Other(2)
112.8 0.5 130.8 0.6 122.7 0.5 
Total Net sales$21,376.0 100.0 %$23,748.7 100.0 %$20,820.8 100.0 %
(1)Certain software and services revenues are recorded on a net basis for accounting purposes. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits.
(2)Includes items such as delivery charges to customers.
(3)Prior period amounts have been reclassified to conform with current period presentation.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income $ 1,104.3 $ 1,114.5 $ 988.6
v3.24.0.1
Insider Trading Arrangements
3 Months Ended 12 Months Ended
Dec. 31, 2023
shares
Dec. 31, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Christine Leahy [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On August 7, 2023, Christine Leahy, Chair, President, and Chief Executive Officer of the Company, adopted a Rule 10b5-1 trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. This plan provides for the exercise of stock options and sale of up to an aggregate of 51,437 underlying shares of common stock of the Company during the period from November 15, 2023 through April 30, 2024
Name Christine Leahy  
Title Chair, President, and Chief Executive Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date August 7, 2023  
Arrangement Duration 167 days  
Aggregate Available 51,437 51,437
v3.24.0.1
Description of Business and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Description of Business
Description of Business
CDW Corporation (“Parent”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of information technology (“IT”) solutions to small, medium and large business, government, education and healthcare customers in the United States (“US”), the United Kingdom (“UK”) and Canada. The Company’s broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience and security.
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.
Basis of Presentation
Basis of Presentation
The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules and regulations of the US Securities and Exchange Commission (“SEC”). The Company’s Consolidated Financial Statements are based on a fiscal year ended December 31.
On December 1, 2021, the Company completed its acquisition of all issued and outstanding equity interests in Granite Parent, Inc., the parent company of Sirius Computer Solutions, Inc. (“Sirius”), a leading provider of secure, mission-critical technology-based solutions and one of the largest IT solutions integrators in the US. The Company included the financial results of Sirius in its Consolidated Financial Statements from the date of the acquisition. For additional information on the acquisition of Sirius, see Note 3 (Acquisitions).
Principles of Consolidation
Principles of Consolidation
The 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
Use of Estimates
The preparation of the Consolidated Financial Statements in accordance with US GAAP requires management to make 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 and outcomes could differ from those estimates.
Business Combinations
Business Combinations
The Company accounts for business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. The Company may utilize third-party valuation specialists to assist the Company in the allocation. Initial purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include deposits in banks and short-term (original maturities of three months or less at the time of purchase), highly liquid investments that are readily convertible to known amounts of cash and are so near maturity that there is insignificant risk of changes in value due to interest rate changes.
Accounts Receivable
Accounts Receivable
The timing of revenue recognition may differ from the time of billing to customers. Accounts receivable presented on the Consolidated Balance Sheets represent an unconditional right to consideration, which includes unbilled receivables. Unbilled receivables represent revenues that are not currently billable where payment is unconditional and solely subject to the passage of time. These items are expected to be billed and collected in the normal course of business. Accounts receivable that are billed are recorded at the invoiced amount and include the taxes to be collected from the customer as part of the sale. Such billed amounts typically do not bear interest. The balance of the Company’s accounts receivable is classified as current for amounts expected to be collected within 12 months and noncurrent for amounts to be collected beyond 12 months.
The Company occasionally may transfer certain accounts receivable, without recourse, to third-party financial companies as a method to accelerate cash collections and reduce the Company’s credit exposure. Under these agreements, the Company may transfer certain accounts receivable in exchange for cash less a discount, as defined by the agreements. The Company’s ability to sell receivables is dependent on the financial institutions’ willingness to purchase such receivables. In addition, certain of these agreements also require that the Company continue to service, administer and collect the sold accounts receivable. Such transfers are recognized as a sale and the related accounts receivable is derecognized from the Consolidated Balance Sheet upon receipt of the third-party financing company’s payment.
The Company estimates an allowance for credit losses related to accounts receivable for future expected credit losses by using relevant information such as historical information, current conditions, and reasonable and supportable forecasts. The allowance is measured on a pool basis when similar risk characteristics exist, and a loss-rate for each pool is determined using historical credit loss experience as the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current conditions as well as changes in forecasted macroeconomic conditions, such as changes in the unemployment rate or gross domestic product growth rate. The Company has typically observed a higher loss-rate experience with customers in pools associated with the Company’s Corporate and Small Business segments, as compared to the pools associated with the Public segment.
For additional information on the Company’s accounts receivables, see Note 4 (Accounts Receivable and Contract Balances).
Merchandise Inventory
Merchandise Inventory
Inventory is valued at the lower of cost and net realizable value. Cost is determined using a weighted-average cost method. Price protection is recorded when earned as a reduction to the cost of inventory. The Company decreases the value of inventory for estimated obsolescence equal to the difference between the cost of inventory and the net realizable value, based upon an aging analysis of the inventory on hand, specifically known inventory-related risks and assumptions about future demand and market conditions.
Miscellaneous Receivables
Miscellaneous Receivables
Miscellaneous receivables primarily consist of amounts due from vendors. The Company receives incentives from vendors related to cooperative advertising, volume rebates, bid programs, price protection and other programs. These incentives generally relate to written vendor agreements with specified performance requirements and are generally recorded as adjustments to Cost of sales or Merchandise inventory, depending on the nature of the incentive. Funds received from vendors related to the reimbursement of specific, incremental and identifiable costs incurred by the Company are recorded as reduction of such costs, which may be within Selling and administrative expenses.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of the assets. For revenue generating assets, the
Company calculates depreciation expense using the straight-line method to the estimated residual value over the estimated useful life of the assets. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining lease term. Expenditures for major renewals and improvements that extend the useful life of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.
Leases
Leases
The Company enters into operating lease contracts, as assessed at contract inception, primarily for real estate, data centers and equipment. On the lease commencement date, the Company records operating lease liabilities based on the present value of the future lease payments. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the commencement date. For real estate and data center contracts, the Company accounts for the lease and non-lease components as a single lease component. For certain equipment leases, the Company applies a portfolio approach to account for the right-of-use asset and operating lease liability. In assessing the lease term, the Company includes options to renew only when it is reasonably certain that it will be exercised, a determination which is at the sole discretion of the Company. For equipment leases used in revenue generating activities with an initial term of 12 months or less, the Company records a right-of-use asset and lease liability. For all remaining leases with an initial term of 12 months or less, the Company has elected to not record a right-of-use asset and lease liability. The Company records lease expense on a straight-line basis over the lease term beginning on the commencement date.
Goodwill
Goodwill
The Company performs an evaluation of goodwill at the reporting unit level, utilizing either a qualitative or quantitative impairment test. A qualitative assessment is performed at least on an annual basis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The Company performs a quantitative impairment test for each reporting unit every three years, or more frequently if circumstances indicate a potential impairment. The annual test for impairment is conducted during the fourth quarter. The Company’s reporting units included in the assessment of potential goodwill impairment are the same as its operating segments.
Under a qualitative assessment, the most recent quantitative assessment is used to determine if it is more likely than not that the reporting unit’s goodwill is impaired. As part of this qualitative assessment, the Company assesses relevant events and circumstances including macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, changes in share price and entity-specific events to determine if there is an indication of impairment.
Under a quantitative assessment, goodwill impairment is identified by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment charge is recognized in an amount equal to that excess, not to exceed the carrying amount of goodwill. Fair value of a reporting unit is determined by using a weighted combination of an income approach and a market approach, as this combination is considered the most indicative of the Company’s fair value in an orderly transaction between market participants.
Under the income approach, the Company determines fair value based on estimated future cash flows of a reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. The estimated future cash flows of each reporting unit are based on internally generated forecasts for the remainder of the respective reporting period and the next five years.
Under the market approach, the Company utilizes valuation multiples derived from publicly available information for guideline companies to provide an indication of how much a knowledgeable investor in the marketplace would be willing to pay for a company. The valuation multiples are applied to the reporting units.
Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including Net sales growth rates, gross profit margins, operating margins, discount rates and future
market conditions, among others. Any changes in the judgments, estimates or assumptions used could produce significantly different results.
Intangible Assets
Intangible Assets
Intangible assets with determinable lives are amortized on a straight-line basis over their respective estimated useful lives. Intangible assets include customer relationships, trade name and internally developed software. For internally developed software, the Company capitalizes external costs and directly attributable internal costs to acquire or create internal use software which are incurred during the application development stage. These costs relate to activities such as configuration, coding, testing and installation. Costs related to post-implementation activities such as training and maintenance are expensed as incurred. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software.
Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recorded for the excess of the asset’s carrying amount over its fair value. In addition, each quarter, the Company evaluates whether events and circumstances warrant a revision to the remaining estimated useful life of each of these intangible assets. If the Company were to determine that a change to the remaining estimated useful life of an intangible asset was necessary, then the remaining carrying amount of the intangible asset would be amortized prospectively over that revised remaining useful life.
Cloud Computing Arrangements
The Company enters into certain cloud-based software hosting arrangements for internal use that are accounted for as service contracts. Costs incurred in implementing a cloud computing arrangement are deferred during the application development stage and presented within Prepaid expenses and other on the Consolidated Balance Sheets. Once a cloud computing arrangement is ready for its intended use, the implementation costs are amortized on a straight-line basis over the fixed term of the hosting arrangement plus any reasonably certain renewal periods.
Deferred Financing Costs
Deferred Financing Costs
Deferred financing costs, such as underwriting, financial advisory, professional fees and other similar fees are capitalized and recognized in Interest expense, net over the estimated life of the related debt instrument using the effective interest method or straight-line method, as applicable. The Company classifies deferred financing costs as a direct deduction from the carrying value of the Long-term debt liability on the Consolidated Balance Sheets, except for deferred financing costs associated with revolving credit facilities which are presented as an asset, within Other assets on the Consolidated Balance Sheets.
Fair Value Measurements
Fair Value Measurements
Fair value is defined under US GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established for valuation inputs to prioritize the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
Level 1 – observable inputs such as quoted prices for identical instruments traded in active markets.
Level 2 – inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques.
Revenue Recognition
Revenue Recognition
The Company is a primary distribution channel for a large group of vendors and suppliers, including original equipment manufacturers (“OEMs”), software publishers and wholesale distributors. The Company may sell hardware, software and services on standalone basis or as a bundled solution arrangement. For additional information on the disaggregation of Net sales by major category, see Note 17 (Segment Information).
The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. The Company evaluates the following indicators amongst others when determining whether it is acting as a principal in the transaction and recording revenue on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified product or service, (ii) the Company has inventory risk before the specified product or service has been transferred to a customer or after transfer of control to the customer and (iii) the Company has discretion in establishing the price for the specified product or service. If the terms of a transaction do not indicate the Company is acting as a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis.
For performance obligations whereby the Company is acting as a principal, revenue is recognized when, or as, the customer obtains control of the specified product or service. The Company recognizes revenue in transactions for which it is acting as an agent once it has arranged for the third party to provide the product or service. Depending on the nature of the arrangement, this may occur at the time the Company executes the contract with the third party or at the time it invoices the customer.
Revenue Recognition for Hardware
Revenues from the sale of hardware are recognized on a gross basis as the Company is acting as a principal in these transactions, with the selling price to the customer recorded as Net sales and the acquisition cost of the product recorded as Cost of sales. The Company recognizes revenue from these transactions when control has passed to the customer, which is usually upon delivery of the product to the customer, which typically is based on the shipping terms in the contract with the customer. The Company may leverage drop-shipment arrangements with many of its vendors and suppliers to deliver hardware to its customers without having to physically hold the inventory at its warehouses. The Company is the principal in the transaction and recognizes revenue for drop-shipment arrangements on a gross basis.
In some instances, the customer agrees to buy the hardware from the Company but requests delivery at a later date, commonly known as bill-and-hold arrangements. For these transactions, the Company deems that control passes to the customer when the hardware is ready for delivery. The Company views hardware as ready for delivery when: (i) the customer has a signed agreement, (ii) significant risk and rewards have transferred to the customer, (iii) the customer has the ability to direct the use of the hardware, (iv) the hardware has been set aside specifically for the customer and cannot be redirected to another customer and (v) as applicable, the configuration services have been completed when ordered with the hardware.
The Company’s vendor partners may provide warranties on the hardware the Company sells. These manufacturer warranties are assurance-type warranties and are not considered separate performance obligations. The warranties are not sold separately and only provide assurance that the hardware will conform with the manufacturer’s specifications. In some transactions, the vendor partner will provide the customer with an extended warranty. These extended warranties are sold separately and provide the customer with a service in addition to assurance that the product will function as expected. The Company considers these warranties to be separate performance obligations from the underlying product. For additional information regarding the accounting for extended warranties, see “Revenue Recognition for Services” below.
Revenue Recognition for Software
Revenues from the sale of software include perpetual licenses, term licenses, software assurance and cloud computing solutions. Depending on the nature of the software, the Company may be acting as a principal or an agent.
For perpetual licenses and term licenses, the software is recognized as a single performance obligation on a gross basis as the Company is acting as a principal in these transactions at the point the software is delivered to the customer (i.e., via electronic delivery of keys). Generally, these licenses are sold with accompanying third-party delivered software
assurance, which is a product that allows customers to upgrade to the latest technology if new capabilities are introduced during the period that the software assurance is in effect. The Company evaluates whether the software assurance is a separate performance obligation by assessing if the third-party delivered software assurance is critical or essential to the core functionality of the software itself. If the Company determines that the accompanying third-party delivered software assurance is critical or essential to the core functionality of the software license, the software license and the accompanying third-party delivered software assurance are recognized as a single performance obligation. As a result, the value of the product is primarily the accompanying support delivered by a third party and, therefore, the Company is acting as an agent and recognizes the revenue on a net basis once its agency obligation is complete. This is common for security software where updates are critical to the core functionality of the software. For software licenses where the accompanying third-party delivered software assurance is not critical or essential to the core functionality, the software assurance is recognized as a separate performance obligation, with the associated revenue recognized on a net basis. For additional information regarding the accounting for bundled arrangements, see “Revenue Recognition for Bundled Arrangements” below.
The Company sells cloud computing solutions which include Software as a Service (“SaaS”) and Infrastructure as a Service (“IaaS”). SaaS solutions, commonly referred to as subscription licenses, utilize third-party partners to offer the Company’s customers access to software in the cloud that enhances office productivity, provides security or assists in collaboration. IaaS solutions utilize third-party partners to enable customers to access data center functionality in a cloud-based solution, including storage, computing and networking. In these transactions, the Company is acting as an agent and recognizes revenue once its agency performance obligation is complete.
The Company’s customers are offered the opportunity by certain of its vendors to purchase software licenses and software assurance under enterprise agreements (“EAs”). For most EA transactions, the Company’s obligation to the customer is that of a distributor or sales agent of the services, where all obligations for providing the services to customers are passed to the Company’s vendors. The Company’s performance obligations are satisfied at the time of the sale. With most EAs, the Company’s vendors will transfer the license and invoice the customer directly, paying resellers an agency fee or commission on these sales. The Company records these fees as a component of Net sales as earned and there is no corresponding Cost of sales amount.
Revenue Recognition for Services
Revenues from the sale of services include professional services, hosted and managed services and vendor partner delivered services. Depending on the nature of the service, the Company may be acting as a principal or an agent.
The Company provides professional services, which include project managers and consultants recommending, designing and implementing IT solutions. The Company is primarily responsible for the fulfillment and acceptability of the professional services and has control on how to provide the requested services. As a result, professional services revenue is recognized on a gross basis either on a time and materials basis for variable contracts or proportionally as costs are incurred relative to the total estimated costs to complete for fixed fee contracts (i.e., an input method).
The Company provides hosted and managed services which primarily includes IT support services and data center services, such as managed and remote managed services, server co-location, internet connectivity and data backup and storage. Similar to professional services revenue, the Company is the principal in providing these services. Generally, hosted and managed services represent stand ready obligations and, therefore, the Company recognizes the revenue on a gross basis, ratably over the contractual term.
The Company may resell vendor partner delivered services. A common example is extended warranties, which are considered to be separate performance obligations from the underlying product. For vendor partner delivered services, the Company is arranging for such services to be provided by the vendor partner and, therefore, is acting as an agent and records revenue on a net basis at the point of sale.
Revenue Recognition for Bundled Arrangements
The Company often sells hardware, software and/or services as part of a bundled solution arrangement containing multiple performance obligations. For each deliverable that represents a distinct performance obligation, total arrangement consideration is allocated based upon the standalone selling prices of each performance obligation.
Sales In-Transit
The Company performs an analysis of the estimated number of days of sales in-transit to customers at the end of each reporting period based on a weighted-average analysis of commercial delivery terms that include drop-shipment arrangements. This analysis is the basis upon which the Company estimates the amount of Net sales in-transit at the end of the period and adjusts revenue and the related costs to reflect only what has been delivered to the customer. Changes in delivery patterns may result in a different number of business days estimated to make this adjustment.
Freight Costs
The Company records freight billed to its customers as Net sales and the related freight costs as Cost of sales when the underlying product revenue is recognized. For freight not billed to its customers, the Company records the freight costs as Cost of sales. The Company’s typical shipping terms result in shipping being performed before the customer obtains control of the product. The Company considers shipping to be a fulfillment activity and not a separate performance obligation.
Other
The nature of the Company’s contracts give rise to variable consideration in the form of volume rebates and sales returns and allowances, which are estimated at contract inception. The Company estimates variable consideration at the most likely amount to which it is expected to be entitled. This estimated amount is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of the Company’s anticipated performance and all information that is reasonably available. At the time of sale, the Company records a liability for estimated sales returns and allowances and an associated right of return asset. The Company also records a provision for volume rebates based on the evaluation of contract terms and historical experience.
The Company excludes amounts collected on behalf of third parties, such as sales taxes, when determining the transaction price.
When a contract results in revenue being recognized in excess of the amount the Company has the right to invoice to the customer, a contract asset is recorded on the Consolidated Balance Sheets. Contract assets primarily arise due to partially fulfilled contracts with integrated solutions and professional services with fixed fee arrangements.
Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services. Contract liabilities primarily arise due to professional services with fixed fee arrangements, bill-and-hold transactions where control has not passed to the customer and certain governmental contracts.
Any incremental direct costs of obtaining a contract, primarily sales commissions, are deferred on the Consolidated Balance Sheets and amortized over the period of contract performance.
The Company has elected to use the practical expedient for its performance obligations table to include only those contracts that are longer than 12 months at the time of contract inception and those contracts that are non-cancelable. Additionally, for certain governmental contracts where there are annual renewals, the Company has excluded these contracts since there is only a one-year legal obligation. Contracts that are longer than 12 months in duration are primarily related to hosted and managed services. For additional information on performance obligations longer than 12 months, see Note 4 (Accounts Receivable and Contract Balances).
Sales Taxes
Sales Taxes
Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis in the Consolidated Statements of Operations.
Advertising
Advertising
Advertising costs are generally charged to expense in the period incurred and are presented in Selling and administrative expenses in the Consolidated Statements of Operations. Cooperative reimbursements from vendors are recorded in the period the related advertising expenditure is incurred. The Company generally classifies vendor
consideration as a reduction to Cost of sales. During the years ended December 31, 2023, 2022 and 2021, the Company had advertising costs of $215 million, $211 million and $199 million, respectively.
Equity-Based Compensation
Equity-Based Compensation
The Company measures all equity-based payments using a fair-value-based method and records compensation expense over the requisite service period using the straight-line method in its Consolidated Financial Statements. The expense calculation includes estimated forfeiture rates, which have been developed based upon historical experience.
Interest Expense, net
Interest Expense, net
Interest expense, net includes interest expense and interest income. Interest expense, net is recognized in the period incurred at the applicable interest rate in effect.
Foreign Currency Translation
Foreign Currency Translation
The Company’s reporting currency is the US dollar. The functional currency of the Company’s international operating subsidiaries is generally the same as the corresponding local currency. Assets and liabilities of the international operating subsidiaries are translated at the spot rate in effect at the applicable reporting date. Revenues and expenses of the international operating subsidiaries are translated at the average exchange rates in effect during the applicable period. The resulting foreign currency translation adjustment is recorded as Accumulated other comprehensive loss, which is reflected as a separate component of Stockholders’ equity.
Income Taxes
Income Taxes
Deferred income taxes are provided to reflect the differences between the tax bases of assets and liabilities and their reported amounts in the Consolidated Financial Statements using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company performs an evaluation of the realizability of deferred tax assets on a quarterly basis. This evaluation requires management to make use of estimates and assumptions and considers all positive and negative evidence and factors, such as the scheduled reversal of temporary differences, the mix of earnings in the jurisdictions in which the Company operates, and prudent and feasible tax planning strategies.
The Company accounts for unrecognized tax benefits based upon its assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company reports a liability for unrecognized tax benefits resulting from unrecognized tax benefits taken or expected to be taken in a tax return and recognizes interest and penalties, if any, related to its unrecognized tax benefits in income tax expense.
Recent Accounting Pronouncements Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances existing income tax disclosures primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The ASU is effective for all public entities for annual periods beginning after December 15, 2024, with early adoption permitted. Entities should apply the amendments on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the impact the ASU will have on its disclosures.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses included in a segment’s profit or loss measure on an annual and interim basis. The ASU is effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities are required to apply the amendments on a retrospective basis. The Company is currently evaluating the impact the ASU will have on its disclosures.
In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. This ASU requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs and information about the obligations that are outstanding at the end of the reporting period. This disclosure requirement is intended to provide information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity and cash flows. The ASU is effective for all entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the rollforward requirement, which is effective for fiscal years
beginning after December 15, 2023. The Company adopted the standard during the first quarter of 2023 with the exception of the rollforward requirement, which will be adopted during the first quarter of 2024. The adoption of the standard only resulted in new disclosures for amounts presented within Accounts payable - inventory financing and did not affect the Company's recognition, measurement or financial statement presentation of supplier finance program obligations on the Consolidated Financial Statements. For additional information on the new disclosures, see Note 7 (Inventory Financing Agreements).
v3.24.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisitions, by Acquisition The table below summarizes the final purchase price allocation to acquired assets, including goodwill and intangible assets.
Acquisition-Date
Fair Value
Cash and cash equivalents$52.8 
Accounts receivable634.1 
Intangible assets, net1,164.0 
Goodwill1,566.6 
Other assets438.1 
Total assets acquired3,855.6 
Accounts payable-trade633.8 
Debt170.1 
Deferred tax liabilities207.0 
Other liabilities389.7 
Total liabilities assumed1,400.6 
Total purchase price$2,455.0 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The table below summarizes the fair value of identifiable intangible assets acquired.
Useful Lives (Years)Acquisition-Date
Fair Value
Customer relationships12$1,140.0 
Trade name124.0 
$1,164.0 
Schedule of Business Acquisition Pro Forma Information
The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of Sirius had been consummated on January 1, 2020. The pro forma adjustments are based on historical results of operations and financial condition of the Company and Sirius and do not include any anticipated synergies or other expected benefits of the acquisition. The unaudited pro forma financial information is not necessarily indicative of the actual consolidated results of operations had the acquisition actually consummated on January 1, 2020, nor are they indicative of future consolidated results of operations of the combined company.
Year Ended December 31,
20212020
Pro forma net sales$22,793.0 $20,659.0 
Pro forma net income977.4 771.1 
v3.24.0.1
Accounts Receivable and Contract Balances (Tables)
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Accounts Receivable
The following table details the total accounts receivable recognized and the related classification on the Consolidated Balance Sheets:
December 31,
20232022
Accounts receivable, current(1)
$4,567.5 $4,461.3 
Accounts receivable, noncurrent(2)
337.5 203.0 
Total accounts receivable$4,905.0 $4,664.3 
(1)Accounts receivable, current are presented within Accounts receivable, net of allowance for credit losses on the Consolidated Balance Sheets.
(2)Accounts receivable, noncurrent are presented within Other assets on the Consolidated Balance Sheets.
Accounts Receivable, Allowance for Credit Loss The following table details the changes in the allowance for credit losses related to accounts receivable:
As of December 31,
20232022
Balance as of January 1$25.7 $20.4 
Increase to provision for credit losses14.9 8.3 
Write-offs charged against the allowance for credit losses(14.5)(6.0)
Other2.7 3.0 
Balance as of December 31$28.8 $25.7 
Contract with Customer, Contract Asset, Contract Liability, and Receivable
The following table details information about the Company’s contract balances recognized on the Consolidated Balance Sheets:
December 31,
20232022
Contract assets(1)
$111.8 $242.1 
Contract liabilities(2)(3)
527.4 525.3 
(1)Contract assets are presented within Prepaid expenses and other on the Consolidated Balance Sheets.
(2)Includes $40 million and $40 million of long-term contract liabilities that are presented within Other liabilities on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively.
(3)For the years ended December 31, 2023 and 2022, the Company recognized revenue of $329 million and $238 million, respectively, related to its contract liabilities that were included in the beginning balance of the respective periods.
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction The following table represents the total transaction price for the remaining performance obligations as of December 31, 2023 related to non-cancelable contracts longer than 12 months in duration that is expected to be recognized over future periods.
Within 1 YearYears 1-2Years 2-3Thereafter
Remaining performance obligations$90.9 $52.4 $25.0 $5.8 
v3.24.0.1
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property and equipment consist of the following:
December 31,
Useful Lives (Years)20232022
Computer and data processing equipment
3 - 5
$204.7 $192.1 
Building and leasehold improvements
5 - 25
125.3 149.5 
Machinery and equipment
5 - 10
46.8 46.2 
Computer software
3 - 5
35.7 34.6 
Furniture and fixtures
5 - 10
23.5 30.5 
Land-*28.1 27.7 
Revenue generating assets
1 - 5
1.4 1.2 
Construction in progress-*38.7 16.9 
Property and equipment, gross504.2 498.7 
Less: Accumulated depreciation(308.7)(309.9)
Property and equipment, net$195.5 $188.8 
*Asset is not depreciated.
v3.24.0.1
Goodwill and Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in Goodwill by reportable segment are as follows:
CorporateSmall BusinessPublic
Other(1)
Consolidated
Balances as of December 31, 2021(2)
$2,024.4 $266.1 $1,737.7 $354.7 $4,382.9 
Sirius measurement period adjustment(3)
109.0 (35.9)(78.9)— (5.8)
Foreign currency translation— — — (34.4)(34.4)
Balances as of December 31, 2022(2)
2,133.4 230.2 1,658.8 320.3 4,342.7 
Acquisition activity(4)
19.7 — 36.3 — 56.0 
Foreign currency translation— — — 14.7 14.7 
Balances as of December 31, 2023(2)
$2,153.1 $230.2 $1,695.1 $335.0 $4,413.4 
(1)Other is comprised of CDW UK and CDW Canada operating segments.
(2)Goodwill is net of accumulated impairment losses of $1,571 million, $354 million and $28 million related to the Corporate, Public and Other segments, respectively, recorded in 2008 and 2009.
(3)For additional information regarding the Sirius acquisition, see Note 3 (Acquisitions).
(4)Includes other immaterial acquisitions.
Schedule of Finite-Lived Intangible Assets
A summary of intangible assets is as follows:
December 31, 2023Useful Lives (Years)Gross Carrying AmountAccumulated
Amortization
Net Carrying Amount
Customer relationships
3 - 14
$3,379.7 $(2,236.6)$1,143.1 
Trade name
1 - 20
446.1 (366.6)79.5 
Internally developed software
3 - 5
474.9 (330.6)144.3 
Other
1 - 10
4.3 (1.5)2.8 
Total$4,305.0 $(2,935.3)$1,369.7 
December 31, 2022Useful Lives (Years)Gross Carrying AmountAccumulated
Amortization
Net Carrying Amount
Customer relationships
3 - 14
$3,352.4 $(2,100.6)$1,251.8 
Trade name
1 - 20
446.1 (341.0)105.1 
Internally developed software
3 - 5
429.8 (297.6)132.2 
Other
1 - 10
2.5 (0.9)1.6 
Total$4,230.8 $(2,740.1)$1,490.7 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated future amortization expense related to intangible assets is as follows:
Years ending December 31,Estimated Future Amortization Expense
2024$212.8 
2025197.2 
2026179.6 
2027152.3 
2028123.0 
Thereafter504.8 
Total future amortization expense $1,369.7 
v3.24.0.1
Debt (Tables)
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Carrying Value of Long-Term Debt
As of December 31,
Maturity DateInterest Rate20232022
Credit Facility
Senior unsecured revolving loan facilityDecember 2026Variable$— $72.5 
Term Loans
Senior unsecured term loan facilityDecember 2026Variable634.5 784.5 
Unsecured Senior Notes
Senior notes due 2024December 20245.500 %575.0 575.0 
Senior notes due 2025May 20254.125 %600.0 600.0 
Senior notes due 2026December 20262.670 %1,000.0 1,000.0 
Senior notes due 2028April 20284.250 %600.0 600.0 
Senior notes due 2028December 20283.276 %500.0 500.0 
Senior notes due 2029February 20293.250 %700.0 700.0 
Senior notes due 2031December 20313.569 %1,000.0 1,000.0 
Total unsecured senior notes4,975.0 4,975.0 
Receivable financing liability56.9115.4 
Other long-term obligations6.9 11.6 
Unamortized deferred financing fees(28.4)(36.3)
Current maturities of long-term debt(613.1)(56.3)
Total long-term debt$5,031.8 $5,866.4 
Schedule of Long-term Debt Maturities
As of December 31, 2023, aggregate future maturities of debt, excluding unamortized deferred financing fees, are as follows for the years ending December 31:
YearsDebt Maturities
2024$613.8 
2025623.9 
20261,635.6 
2027— 
20281,100.0 
Thereafter1,700.0 
Total debt maturities$5,673.3 
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
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:
December 31,
20232022
Fair value$5,348.2 $5,412.6 
Carrying value5,673.3 5,959.0 
v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes was taxed under the following jurisdictions:
Year Ended December 31,
202320222021
Domestic$1,298.1 $1,355.6 $1,186.7 
Foreign152.1 132.2 111.1 
Total$1,450.2 $1,487.8 $1,297.8 
Schedule of Components of Income Tax Expense (Benefit)
Components of Income tax expense (benefit) consist of the following:
Year Ended December 31,
202320222021
Current:
Federal$267.3 $281.8 $235.6 
State69.7 75.8 52.9 
Foreign41.6 33.9 27.4 
Total current378.6 391.5 315.9 
Deferred:
Domestic(29.3)(15.0)(8.7)
Foreign(3.4)(3.2)2.0 
Total deferred(32.7)(18.2)(6.7)
Income tax expense$345.9 $373.3 $309.2 
Schedule of Effective Income Tax Rate Reconciliation
The reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective tax rate was as follows:
Year Ended December 31,
202320222021
Statutory federal income tax rate$304.5 21.0 %$312.4 21.0 %$272.5 21.0 %
State taxes, net of federal effect55.8 3.8 61.1 4.1 50.3 3.9 
Excess tax benefit of equity awards(29.6)(2.0)(12.0)(0.8)(30.1)(2.3)
Tax on foreign earnings8.5 0.6 3.0 0.2 1.7 0.1 
Effect of tax law changes— — — — 4.8 0.4 
Other6.7 0.5 8.8 0.6 10.0 0.7 
Effective tax rate$345.9 23.9 %$373.3 25.1 %$309.2 23.8 %
Schedule of Deferred Tax Assets and Liabilities
The tax effect of temporary differences that give rise to net deferred income tax liabilities is presented below.
December 31,
20232022
Deferred tax assets:
Contract liabilities$38.4 $46.3 
Equity compensation plans34.5 31.3 
Net operating loss and credit carryforwards, net17.0 17.0 
Payroll and benefits17.2 24.3 
Operating lease liabilities45.6 48.5 
Accounts receivable20.1 18.1 
Other19.9 19.5 
Total deferred tax assets192.7 205.0 
Deferred tax liabilities:
Acquisition-related intangibles269.8 293.3 
Property and equipment22.4 38.1 
Operating lease right-of-use assets27.6 32.9 
Other26.7 27.1 
Total deferred tax liabilities346.5 391.4 
Deferred tax asset valuation allowance17.0 17.0 
Net deferred tax liabilities$170.8 $203.4 
Schedule of Unrecognized Tax Benefits Roll Forward
Changes in the Company’s unrecognized tax benefits as of December 31, 2023, 2022 and 2021 were as follows:
Year Ended December 31,
202320222021
Balance as of January 1$18.7 $18.4 $18.3 
Additions for current year and prior year0.6 0.3 0.1 
Balance as of December 31$19.3 $18.7 $18.4 
v3.24.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Assets And Liabilities, Lessee
Supplemental Consolidated Balance Sheets information related to the Company’s operating leases is as follows:
December 31,
LeaseBalance Sheet Presentation20232022
Operating lease right-of-use assetOperating lease right-of-use assets$128.8 $149.2 
Current operating lease liabilitiesAccrued expenses and other current liabilities - Other$34.0 $31.9 
Long-term operating lease liabilitiesLong-term liabilities - Operating lease liabilities164.0 175.2 
Total lease liabilities$198.0 $207.1 
December 31,
Lease term and discount rate20232022
Weighted average remaining lease term (years)8.08.4
Weighted average discount rate4.03 %3.86 %
Lessee, Operating Lease, Liability, Maturity
Maturities of operating lease liabilities are as follows:
December 31, 2023
2024$41.4 
202537.9 
202631.3 
202723.8 
202819.0 
Thereafter84.4 
Total lease payments $237.8 
Less: Interest(36.4)
Less: Lease Incentives(1)
(3.4)
Present value of lease liabilities$198.0 
(1)Includes lease incentives that will be realized in 2024.
Lease, Cost
Supplemental cash flow information related to operating leases is as follows:
Year Ended December 31,
202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$41.7 $42.8 $35.9 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$24.6 $43.6 $49.8 
v3.24.0.1
Equity-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Disclosure [Abstract]  
Schedule Equity-Based Compensation Expense
Equity-based compensation expense, which is recorded in Selling and administrative expenses in the Consolidated Statements of Operations was as follows:
Year Ended December 31,
202320222021
Equity-based compensation expense$93.7 $91.1 $72.6 
Income tax benefit(1)
(17.3)(15.5)(12.2)
Equity-based compensation expense, net of tax$76.4 $75.6 $60.4 
(1)Represents equity-based compensation tax expense at the statutory tax rates. Excess tax benefits associated with equity awards are excluded from this disclosure and separately disclosed in Note 10 (Income Taxes).
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The weighted-average assumptions used to value the stock options granted were as follows:
Year Ended December 31,
202320222021
Weighted average grant date fair value$64.77 $43.20 $40.83 
Expected volatility (1)
29.94 %27.50 %30.00 %
Risk-free rate (2)
3.80 %1.94 %0.93 %
Expected dividend yield1.24 %1.17 %1.03 %
Expected term (in years) (3)
5.56.05.6
(1)Based on a weighting of the historical volatility and implied volatility.
(2)Based on a composite US Treasury rate.
(3)Based on contractual term length and on historical experience of both exercised and unexercised options.
Schedule of Stock Options Roll Forward
Stock option activity for the year ended December 31, 2023 was as follows:
OptionsNumber of OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (years)Aggregate Intrinsic Value
Outstanding at January 1, 2023
3,499,301 $104.23 
Granted460,767 212.08 
Forfeited/Expired(54,584)179.15 
Exercised(1)
(714,538)69.06 
Outstanding at December 31, 2023
3,190,946 126.40 5.96$322.0 
Vested and exercisable at December 31, 2023
2,185,919 $99.35 4.97$279.7 
Expected to vest after December 31, 2023
993,307 $185.15 8.11$41.9 
(1)The total intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $97 million, $40 million and $117 million, respectively.
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
RSU activity for the year ended December 31, 2023 was as follows:
Number of UnitsWeighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023
432,060 $166.92 
Granted (1)
172,048 189.30 
Vested (2)
(175,795)154.02 
Forfeited(29,700)172.49 
Non-vested at December 31, 2023
398,613 181.85 
(1)The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $189.30, $169.11 and $172.96, respectively.
(2)The aggregate fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $27 million, $16 million and $2 million, respectively.
Schedule of Nonvested Performance-based Units Activity
PSU activity for the year ended December 31, 2023 was as follows:
Number of UnitsWeighted-Average Grant-Date Fair Value
Non-vested at January 1, 2023
444,233 $165.11 
Granted (1)
147,425 210.30 
Attainment adjustment (2)
109,462 95.17 
Vested (3)
(275,334)125.60 
Forfeited(30,904)182.82 
Non-vested at December 31, 2023
394,882 188.76 
(1)The weighted-average grant date fair value of PSUs granted during the years ended December 31, 2023, 2022 and 2021 was $210.30, $176.14 and $154.37, respectively.
(2)During the year ended December 31, 2023, the PSUs that vested at December 31, 2022 were adjusted to reflect final attainment.
(3)The aggregate fair value of PSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $35 million, $28 million and $28 million, respectively.
v3.24.0.1
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2023
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:
Year Ended December 31,
202320222021
Basic weighted-average shares outstanding134.6 135.2 138.5 
Effect of dilutive securities (1)
1.7 1.8 2.0 
Diluted weighted-average shares outstanding (2)
136.3 137.0 140.5 
(1)The dilutive effect of outstanding stock options, restricted stock units, performance share units and Coworker Stock Purchase Plan (“CSPP”) units is reflected in the diluted weighted-average shares outstanding using the treasury stock method.
(2)There were fewer than 0.2 million potential common shares excluded from diluted weighted-average shares outstanding for the years ended December 31, 2023, 2022 and 2021, respectively. Inclusion of these common shares in diluted weighted average shares outstanding would have had an anti-dilutive effect.
v3.24.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Information about the Company’s segments for the years ended December 31, 2023, 2022 and 2021 is as follows:
CorporateSmall BusinessPublicOtherHeadquartersTotal
2023:
Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $— $21,376.0 
Operating income (loss)846.8 177.3 735.0 142.1 (220.3)1,680.9 
Depreciation and amortization expense(82.1)(4.7)(58.4)(30.1)(95.4)(270.7)
2022:
Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $— $23,748.7 
Operating income (loss)931.7 186.8 681.7 130.7 (195.7)1,735.2 
Depreciation and amortization expense(98.0)(6.4)(67.9)(31.9)(86.4)(290.6)
2021:
Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $— $20,820.8 
Operating income (loss)697.3 167.7 606.7 115.8 (168.5)1,419.0 
Depreciation and amortization expense(22.9)(4.1)(57.2)(34.4)(72.6)(191.2)
Disaggregation of Revenue
 Year Ended December 31, 2023
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$8,894.5 $1,534.5 $8,299.4 $26.5 $18,754.9 
Rest of World66.3 21.5 6.3 2,527.0 2,621.1 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Major Product and Services
Hardware$6,216.9 $1,242.3 $6,460.4 $1,783.0 $15,702.6 
Software1,772.3 232.8 1,295.4 498.8 3,799.3 
Services909.1 62.6 531.5 258.1 1,761.3 
Other(2)
62.5 18.3 18.4 13.6 112.8 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Sales by Channel
Corporate$8,960.8 $— $— $— $8,960.8 
Small Business— 1,556.0 — — 1,556.0 
Government— — 2,669.1 — 2,669.1 
Education— — 3,298.3 — 3,298.3 
Healthcare— — 2,338.3 — 2,338.3 
Other— — — 2,553.5 2,553.5 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$7,515.7 $1,374.1 $7,411.1 $2,212.0 $18,512.9 
Transferred at a point in time where CDW is agent778.0 145.3 480.6 117.9 1,521.8 
Transferred over time where CDW is principal667.1 36.6 414.0 223.6 1,341.3 
Total Net sales$8,960.8 $1,556.0 $8,305.7 $2,553.5 $21,376.0 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
Year Ended December 31, 2022
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$10,321.2 $1,934.8 $8,550.8 $21.8 $20,828.6 
Rest of World28.9 4.1 0.5 2,886.6 2,920.1 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Major Product and Services
Hardware$7,561.0 $1,610.7 $6,763.9 $2,155.4 $18,091.0 
Software1,781.5 232.9 1,196.9 473.6 3,684.9 
Services929.3 73.8 570.7 268.2 1,842.0 
Other(2)
78.3 21.5 19.8 11.2 130.8 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Sales by Channel
Corporate$10,350.1 $— $— $— $10,350.1 
Small Business— 1,938.9 — — 1,938.9 
Government— — 2,574.3 — 2,574.3 
Education— — 3,621.4 — 3,621.4 
Healthcare— — 2,355.6 — 2,355.6 
Other— — — 2,908.4 2,908.4 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$8,971.4 $1,751.1 $7,717.1 $2,576.5 $21,016.1 
Transferred at a point in time where CDW is agent749.3 140.1 426.9 97.7 1,414.0 
Transferred over time where CDW is principal629.4 47.7 407.3 234.2 1,318.6 
Total Net sales$10,350.1 $1,938.9 $8,551.3 $2,908.4 $23,748.7 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
Year Ended December 31, 2021
CorporateSmall BusinessPublicOtherTotal
Geography(1)
United States$8,165.4 $1,870.1 $8,183.6 $19.7 $18,238.8 
Rest of World14.3 — — 2,567.7 2,582.0 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Major Product and Services
Hardware$6,427.9 $1,587.9 $6,827.1 $1,926.7 $16,769.6 
Software1,172.4 211.0 1,017.3 401.7 2,802.4 
Services510.1 49.1 321.5 245.4 1,126.1 
Other(2)
69.3 22.1 17.7 13.6 122.7 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Sales by Channel
Corporate$8,179.7 $— $— $— $8,179.7 
Small Business— 1,870.1 — — 1,870.1 
Government— — 2,155.6 — 2,155.6 
Education— — 4,108.7 — 4,108.7 
Healthcare— — 1,919.3 — 1,919.3 
Other— — — 2,587.4 2,587.4 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
Timing of Revenue Recognition
Transferred at a point in time where CDW is principal$7,332.3 $1,734.7 $7,634.3 $2,288.7 $18,990.0 
Transferred at a point in time where CDW is agent517.5 112.3 336.6 83.2 1,049.6 
Transferred over time where CDW is principal329.9 23.1 212.7 215.5 781.2 
Total Net sales$8,179.7 $1,870.1 $8,183.6 $2,587.4 $20,820.8 
(1)Net sales by geography is generally based on the ship-to address with the exception of certain services that may be performed at, or on behalf of, multiple locations. Such service arrangements are categorized based on the bill-to address.
(2)Includes items such as delivery charges to customers.
The following table presents Net sales by major category for the years ended December 31, 2023, 2022 and 2021. Categories are based upon internal classifications.
Year Ended December 31,
2023
2022
2021
Net SalesPercentage
of Total Net
Sales
Net SalesPercentage
of Total Net
Sales
Net SalesPercentage
of Total Net
Sales
Hardware:
Notebooks/Mobile Devices$4,690.5 21.9 %$6,179.7 26.0 %$6,659.4 32.0 %
Netcomm Products3,185.4 14.9 2,729.7 11.5 1,950.9 9.4 
Collaboration(3)
1,909.7 8.9 2,394.8 10.1 2,218.8 10.7 
Data Storage and Servers(3)
2,240.7 10.5 2,479.0 10.4 2,044.9 9.8 
Desktops1,069.1 5.0 1,284.9 5.4 1,203.6 5.8 
Other Hardware(3)
2,607.2 12.3 3,022.9 12.7 2,692.0 12.9 
Total Hardware15,702.6 73.5 18,091.0 76.1 16,769.6 80.6 
Software(1)
3,799.3 17.8 3,684.9 15.5 2,802.4 13.5 
Services(1)
1,761.3 8.2 1,842.0 7.8 1,126.1 5.4 
Other(2)
112.8 0.5 130.8 0.6 122.7 0.5 
Total Net sales$21,376.0 100.0 %$23,748.7 100.0 %$20,820.8 100.0 %
(1)Certain software and services revenues are recorded on a net basis for accounting purposes. As a result, the category percentage of net revenues is not representative of the category percentage of gross profits.
(2)Includes items such as delivery charges to customers.
(3)Prior period amounts have been reclassified to conform with current period presentation.
v3.24.0.1
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
subsidiary
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Accounting Policies [Abstract]      
Number of owned subsidiaries | subsidiary 2    
Accounts receivable, sale $ 506 $ 539  
Quantitative impairment test frequency 3 years    
Years forecasted in goodwill impairment income approach 5 years    
Advertising expense $ 215 $ 211 $ 199
v3.24.0.1
Acquisitions - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 01, 2021
USD ($)
coworker
Dec. 31, 2021
USD ($)
Jul. 30, 2021
USD ($)
Mar. 15, 2021
USD ($)
Sirius Computer Solutions, Inc.        
Business Acquisition [Line Items]        
Total purchase price $ 2,400.0      
Number of coworkers | coworker 2,600      
Net sales   $ 197.0    
Net income   $ 9.0    
Goodwill, expected tax deductible amount $ 160.0      
Intangible assets, net 1,164.0      
Sirius Computer Solutions, Inc. | Senior Notes        
Business Acquisition [Line Items]        
Proceeds from issuance of unsecured debt 2,500.0      
Sirius Computer Solutions, Inc. | Selling and administrative expenses        
Business Acquisition [Line Items]        
Transaction costs $ 35.0      
Focal Point Data Risk LLC | Customer relationships        
Business Acquisition [Line Items]        
Intangible assets, net     $ 36.0  
Amplified IT LLC | Customer relationships        
Business Acquisition [Line Items]        
Intangible assets, net       $ 88.0
v3.24.0.1
Acquisitions - Purchase Price Allocation (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 01, 2021
Business Acquisition [Line Items]        
Goodwill $ 4,413.4 $ 4,342.7 $ 4,382.9  
Sirius Computer Solutions, Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents       $ 52.8
Accounts receivable       634.1
Intangible assets, net       1,164.0
Goodwill       1,566.6
Other assets       438.1
Total assets acquired       3,855.6
Accounts payable-trade       633.8
Debt       170.1
Deferred tax liabilities       207.0
Other liabilities       389.7
Total liabilities assumed       1,400.6
Total purchase price       $ 2,455.0
v3.24.0.1
Acquisitions - Fair Value of Identifiable Intangible Assets Acquired (Details) - Sirius Computer Solutions, Inc.
$ in Millions
Dec. 01, 2021
USD ($)
Business Acquisition [Line Items]  
Acquisition-Date Fair Value $ 1,164.0
Customer relationships  
Business Acquisition [Line Items]  
Useful Lives (Years) 12 years
Acquisition-Date Fair Value $ 1,140.0
Trade name  
Business Acquisition [Line Items]  
Useful Lives (Years) 1 year
Acquisition-Date Fair Value $ 24.0
v3.24.0.1
Acquisitions - Pro Forma Information (Details) - Sirius Computer Solutions, Inc. - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]    
Pro forma net sales $ 22,793.0 $ 20,659.0
Pro forma net income $ 977.4 $ 771.1
v3.24.0.1
Accounts Receivable and Contract Balances - Accounts Receivable (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Accounts receivable, current $ 4,567.5 $ 4,461.3
Accounts receivable, noncurrent 337.5 203.0
Total accounts receivable $ 4,905.0 $ 4,664.3
v3.24.0.1
Accounts Receivable and Contract Balances - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Accounts receivable, sale $ 506 $ 539
v3.24.0.1
Accounts Receivable and Contract Balances - Allowance for Credit Losses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance, allowance for credit losses $ 25.7 $ 20.4  
Increase to provision for credit losses 14.9 8.3 $ (5.4)
Write-offs charged against the allowance for credit losses (14.5) (6.0)  
Other 2.7 3.0  
Ending balance, allowance for credit losses $ 28.8 $ 25.7 $ 20.4
v3.24.0.1
Accounts Receivable and Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Contract assets $ 111.8 $ 242.1
Contract liabilities 527.4 525.3
Revenue recognized from contract with customer 329.0 238.0
Long-term Contract with Customer    
Disaggregation of Revenue [Line Items]    
Contract liabilities $ 40.0 $ 40.0
v3.24.0.1
Accounts Receivable and Contract Balances - Schedule of Remaining Performance Obligations (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 90.9
Remaining performance obligations, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 52.4
Remaining performance obligations, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 25.0
Remaining performance obligations, expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 5.8
Remaining performance obligations, expected timing of satisfaction, period
v3.24.0.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 504.2 $ 498.7
Less: Accumulated depreciation (308.7) (309.9)
Property and equipment, net 195.5 188.8
Computer and data processing equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 204.7 192.1
Building and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 125.3 149.5
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 46.8 46.2
Computer software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 35.7 34.6
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 23.5 30.5
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 28.1 27.7
Revenue generating assets    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 1.4 1.2
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 38.7 $ 16.9
Minimum | Computer and data processing equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 3 years  
Minimum | Building and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
Minimum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
Minimum | Computer software    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 3 years  
Minimum | Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
Minimum | Revenue generating assets    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 1 year  
Maximum | Computer and data processing equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
Maximum | Building and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 25 years  
Maximum | Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 10 years  
Maximum | Computer software    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
Maximum | Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 10 years  
Maximum | Revenue generating assets    
Property, Plant and Equipment [Line Items]    
Useful Lives (Years) 5 years  
v3.24.0.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Property and equipment, disposals recorded $ 56 $ 7 $ 20
Depreciation expense $ 52 $ 58 $ 42
v3.24.0.1
Goodwill and Other Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]    
Beginning balance $ 4,342.7 $ 4,382.9
Acquisition activity 56.0  
Sirius measurement period adjustment   (5.8)
Foreign currency translation 14.7 (34.4)
Ending balance 4,413.4 4,342.7
Corporate    
Goodwill [Roll Forward]    
Beginning balance 2,133.4 2,024.4
Acquisition activity 19.7  
Sirius measurement period adjustment   109.0
Foreign currency translation 0.0 0.0
Ending balance 2,153.1 2,133.4
Accumulated impairment losses 1,571.0  
Small Business    
Goodwill [Roll Forward]    
Beginning balance 230.2 266.1
Acquisition activity 0.0  
Sirius measurement period adjustment   (35.9)
Foreign currency translation 0.0 0.0
Ending balance 230.2 230.2
Public    
Goodwill [Roll Forward]    
Beginning balance 1,658.8 1,737.7
Acquisition activity 36.3  
Sirius measurement period adjustment   (78.9)
Foreign currency translation 0.0 0.0
Ending balance 1,695.1 1,658.8
Accumulated impairment losses 354.0  
Other    
Goodwill [Roll Forward]    
Beginning balance 320.3 354.7
Acquisition activity 0.0  
Sirius measurement period adjustment   0.0
Foreign currency translation 14.7 (34.4)
Ending balance 335.0 $ 320.3
Accumulated impairment losses $ 28.0  
v3.24.0.1
Goodwill and Other Intangible Assets - Intangible Assets by Asset Type (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Intangible Assets [Line Items]    
Gross Carrying Amount $ 4,305.0 $ 4,230.8
Accumulated Amortization (2,935.3) (2,740.1)
Net Carrying Amount 1,369.7 1,490.7
Customer relationships    
Intangible Assets [Line Items]    
Gross Carrying Amount 3,379.7 3,352.4
Accumulated Amortization (2,236.6) (2,100.6)
Net Carrying Amount 1,143.1 $ 1,251.8
Trade name    
Intangible Assets [Line Items]    
Useful Life (Years)   20 years
Gross Carrying Amount 446.1 $ 446.1
Accumulated Amortization (366.6) (341.0)
Net Carrying Amount 79.5 105.1
Internally developed software    
Intangible Assets [Line Items]    
Gross Carrying Amount 474.9 429.8
Accumulated Amortization (330.6) (297.6)
Net Carrying Amount 144.3 132.2
Other    
Intangible Assets [Line Items]    
Gross Carrying Amount 4.3 2.5
Accumulated Amortization (1.5) (0.9)
Net Carrying Amount $ 2.8 $ 1.6
Minimum | Customer relationships    
Intangible Assets [Line Items]    
Useful Life (Years) 3 years 3 years
Minimum | Trade name    
Intangible Assets [Line Items]    
Useful Life (Years) 1 year 1 year
Minimum | Internally developed software    
Intangible Assets [Line Items]    
Useful Life (Years) 3 years 3 years
Minimum | Other    
Intangible Assets [Line Items]    
Useful Life (Years) 1 year 1 year
Maximum | Customer relationships    
Intangible Assets [Line Items]    
Useful Life (Years) 14 years 14 years
Maximum | Trade name    
Intangible Assets [Line Items]    
Useful Life (Years) 20 years  
Maximum | Internally developed software    
Intangible Assets [Line Items]    
Useful Life (Years) 5 years 5 years
Maximum | Other    
Intangible Assets [Line Items]    
Useful Life (Years) 10 years 10 years
v3.24.0.1
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 219 $ 233 $ 149
Internally developed software      
Acquired Finite-Lived Intangible Assets [Line Items]      
Disposal of fully amortized definite-lived intangible assets $ 33 $ 8 $ 2
v3.24.0.1
Goodwill and Other Intangible Assets - Amortization of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 212.8  
2025 197.2  
2026 179.6  
2027 152.3  
2028 123.0  
Thereafter 504.8  
Net Carrying Amount $ 1,369.7 $ 1,490.7
v3.24.0.1
Inventory Financing Agreements (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accounts Payable, Inventory Financing    
Inventory Financing Agreements [Line Items]    
Other inventory financing agreements $ 431 $ 519
v3.24.0.1
Financial Instruments (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Interest Rate Contract    
Derivative [Line Items]    
Notional amount $ 400,000,000 $ 0
Interest Rate Cap    
Derivative [Line Items]    
Notional amount $ 400,000,000  
v3.24.0.1
Debt - Debt Balances and Interest Rates (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Long-term debt $ 5,673.3 $ 5,959.0
Unamortized deferred financing fees (28.4) (36.3)
Current maturities of long-term debt (613.1) (56.3)
Total long-term debt 5,031.8 5,866.4
Senior unsecured revolving loan facility    
Debt Instrument [Line Items]    
Long-term debt 0.0 72.5
Senior unsecured term loan facility    
Debt Instrument [Line Items]    
Long-term debt $ 634.5 784.5
Senior notes due 2024    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 5.50%  
Long-term debt $ 575.0 575.0
Senior notes due 2025    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 4.125%  
Long-term debt $ 600.0 600.0
Senior notes due 2026    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 2.67%  
Long-term debt $ 1,000.0 1,000.0
Senior notes due April 2028    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 4.25%  
Long-term debt $ 600.0 600.0
Senior notes due December 2028    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 3.276%  
Long-term debt $ 500.0 500.0
Senior notes due 2029    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 3.25%  
Long-term debt $ 700.0 700.0
Senior notes due 2031    
Debt Instrument [Line Items]    
Long-term debt, weighted average interest rate, at point in time 3.569%  
Long-term debt $ 1,000.0 1,000.0
Total unsecured senior notes    
Debt Instrument [Line Items]    
Long-term debt 4,975.0 4,975.0
Receivable financing liability    
Debt Instrument [Line Items]    
Long-term debt 56.9 115.4
Other long-term obligations    
Debt Instrument [Line Items]    
Long-term debt $ 6.9 $ 11.6
v3.24.0.1
Debt - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Debt prepayment $ 0.0 $ 0.0 $ 1,469.2
Senior unsecured revolving loan facility      
Debt Instrument [Line Items]      
Additional borrowing capacity 1,200.0    
Senior unsecured revolving loan facility | Accounts Payable, Inventory Financing      
Debt Instrument [Line Items]      
Amount owed under Revolving loan financing agreement 392.0    
Senior Secured Term Loan Facility      
Debt Instrument [Line Items]      
Debt prepayment $ 150.0    
v3.24.0.1
Debt - Long-Term Debt Maturities (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Debt Disclosure [Abstract]  
2024 $ 613.8
2025 623.9
2026 1,635.6
2027 0.0
2028 1,100.0
Thereafter 1,700.0
Total debt maturities $ 5,673.3
v3.24.0.1
Debt - Fair Value of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Carrying value $ 5,673.3 $ 5,959.0
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value $ 5,348.2 $ 5,412.6
v3.24.0.1
Income Taxes - Income Before Income Tax (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ 1,298.1 $ 1,355.6 $ 1,186.7
Foreign 152.1 132.2 111.1
Income before income taxes $ 1,450.2 $ 1,487.8 $ 1,297.8
v3.24.0.1
Income Taxes - Income Tax Expense by Component (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Federal $ 267.3 $ 281.8 $ 235.6
State 69.7 75.8 52.9
Foreign 41.6 33.9 27.4
Total current 378.6 391.5 315.9
Deferred:      
Domestic (29.3) (15.0) (8.7)
Foreign (3.4) (3.2) 2.0
Total deferred (32.7) (18.2) (6.7)
Income tax expense $ 345.9 $ 373.3 $ 309.2
v3.24.0.1
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Statutory federal income tax rate $ 304.5 $ 312.4 $ 272.5
State taxes, net of federal effect 55.8 61.1 50.3
Excess tax benefit of equity awards (29.6) (12.0) (30.1)
Tax on foreign earnings 8.5 3.0 1.7
Effect of tax law changes 0.0 0.0 4.8
Other 6.7 8.8 10.0
Income tax expense $ 345.9 $ 373.3 $ 309.2
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Statutory federal income tax rate, percent 21.00% 21.00% 21.00%
State taxes, net of federal effect, percent 3.80% 4.10% 3.90%
Excess tax benefit of equity awards, percent (2.00%) (0.80%) (2.30%)
Tax on foreign earnings, percent 0.60% 0.20% 0.10%
Effect of tax law changes, percent 0.00% 0.00% 0.40%
Other, percent 0.50% 0.60% 0.70%
Effective tax rate, percent 23.90% 25.10% 23.80%
v3.24.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Contract liabilities $ 38.4 $ 46.3
Equity compensation plans 34.5 31.3
Net operating loss and credit carryforwards, net 17.0 17.0
Payroll and benefits 17.2 24.3
Operating lease liabilities 45.6 48.5
Accounts receivable 20.1 18.1
Other 19.9 19.5
Total deferred tax assets 192.7 205.0
Deferred tax liabilities:    
Acquisition-related intangibles 269.8 293.3
Property and equipment 22.4 38.1
Operating lease right-of-use assets 27.6 32.9
Other 26.7 27.1
Total deferred tax liabilities 346.5 391.4
Deferred tax asset valuation allowance 17.0 17.0
Net deferred tax liabilities $ 170.8 $ 203.4
v3.24.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]        
Deferred tax liability on unremitted CDW UK earnings $ 6.0      
Unrecognized tax benefits 19.3 $ 18.7 $ 18.4 $ 18.3
State and Local Jurisdiction        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards 5.0      
State tax credit carryforwards 16.0      
Unrecognized tax benefits, impact on effective tax rate, net of tax rate $ 16.0      
v3.24.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance as of January 1 $ 18.7 $ 18.4 $ 18.3
Additions for current year and prior year 0.6 0.3 0.1
Balance as of December 31 $ 19.3 $ 18.7 $ 18.4
v3.24.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description [Line Items]      
Operating lease expense $ 62 $ 62 $ 50
Impairment charges $ 13    
Maximum      
Lessee, Lease, Description [Line Items]      
Lease terms of contract 12 years    
v3.24.0.1
Leases - Supplemental Consolidated Balance Sheet information Related Operating Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease right-of-use assets $ 128.8 $ 149.2
Current operating lease liabilities 34.0 31.9
Long-term operating lease liabilities 164.0 175.2
Total lease liabilities $ 198.0 $ 207.1
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Other
Weighted average remaining lease term (years) 8 years 8 years 4 months 24 days
Weighted average discount rate 4.03% 3.86%
v3.24.0.1
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2024 $ 41.4  
2025 37.9  
2026 31.3  
2027 23.8  
2028 19.0  
Thereafter 84.4  
Total lease payments 237.8  
Less: Interest (36.4)  
Less: Lease Incentives (3.4)  
Present value of lease liabilities $ 198.0 $ 207.1
v3.24.0.1
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from operating leases $ 41.7 $ 42.8 $ 35.9
Right-of-use assets obtained in exchange for lease obligations      
Operating leases $ 24.6 $ 43.6 $ 49.8
v3.24.0.1
Stockholders' Equity - Narrative (Details) - USD ($)
shares in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2021
Feb. 07, 2024
Feb. 08, 2023
Class of Stock [Line Items]        
Amount remaining under repurchase program $ 338,000,000      
Stock repurchase program, authorized amount       $ 750,000,000
Subsequent Event        
Class of Stock [Line Items]        
Additional amount authorized under repurchase program     $ 750,000,000  
Common Stock        
Class of Stock [Line Items]        
Repurchases of common stock (in shares) 2.6 8.7    
Repurchases of common stock $ 500,000,000      
v3.24.0.1
Equity-Based Compensation (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Equity-based compensation [Abstract]      
Equity-based compensation expense $ 93.7 $ 91.1 $ 72.6
Income tax benefit (17.3) (15.5) (12.2)
Equity-based compensation expense, net of tax 76.4 $ 75.6 60.4
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Compensation cost not yet recognized $ 92.0    
Compensation cost not yet recognized, period for recognition 1 year 9 months 18 days    
Number of Options (in shares):      
Options outstanding, beginning (in shares) 3,499,301    
Granted (in shares) 460,767    
Forfeitures/Expired (in shares) (54,584)    
Exercised (in shares) (714,538)    
Options outstanding, ending (in shares) 3,190,946 3,499,301  
Options Weighted Average Exercise Price (in dollars per share):      
Options outstanding, beginning weighted-average exercise price (in dollars per share) $ 104.23    
Grants, weighted average exercise price (in dollars per share) 212.08    
Forfeitures and Expirations, weighted average exercise price (in dollars per share) 179.15    
Exercises, weighted average exercise price (in dollars per share) 69.06    
Options outstanding, ending weighted-average exercise price (in dollars per share) $ 126.40 $ 104.23  
Options, Additional Disclosures:      
Options, Vested and exercisable (in shares) 2,185,919    
Options, Expected to vest (in shares) 993,307    
Options, exercisable, weighted average exercise price (in dollars per share) $ 99.35    
Options, vested and expected to vest, weighted average exercise price (in dollars per share) $ 185.15    
Options, outstanding, weighted average remaining contractual term 5 years 11 months 15 days    
Options, exercisable, weighted average remaining contractual term (years) 4 years 11 months 19 days    
Options, vested and expected to vest, outstanding, weighted average remaining contractual term (in years) 8 years 1 month 9 days    
Options, outstanding intrinsic value $ 322.0    
Options, exercisable, Intrinsic Value 279.7    
Options, vested and expected to vest, aggregate intrinsic value 41.9    
Total intrinsic value of stock options exercised $ 97.0 $ 40.0 $ 117.0
Employee Stock Option      
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Award expiration period 10 years    
Award vesting period 3 years    
Fair Value Assumptions:      
Weighted average grant date fair value (in dollars per share) $ 64.77 $ 43.20 $ 40.83
Expected volatility (as percent) 29.94% 27.50% 30.00%
Risk-free rate (as percent) 3.80% 1.94% 0.93%
Expected dividend yield (as percent) 1.24% 1.17% 1.03%
Expected term (in years) 5 years 6 months 6 years 5 years 7 months 6 days
Restricted Stock Units (RSUs)      
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Award vesting period 3 years    
Performance Share Units (PSUs)      
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Award vesting period 3 years    
Minimum | Performance Share Units (PSUs)      
Options, Additional Disclosures:      
Potential vesting percentage range of shares 0.00%    
Maximum | Performance Share Units (PSUs)      
Options, Additional Disclosures:      
Potential vesting percentage range of shares 200.00%    
2021 Long Term Incentive Plan      
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Number of shares authorized (in shares) 22,100,000    
Number of share available for grant (in shares) 6,700,000    
2013 Long Term Incentive Plan | Performance Share Units (PSUs)      
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]      
Award vesting period 3 years    
v3.24.0.1
Equity-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Units (in shares):      
Nonvested beginning of period (in shares) 432,060    
Grants (in shares) 172,048    
Vested (in shares) (175,795)    
Forfeited (in shares) (29,700)    
Nonvested end of period (in shares) 398,613 432,060  
Equity Instruments Other Than Options, Weighted Average Grant Date Fair Value (in dollars per share):      
Beginning nonvested, weighted average grant date fair value (in dollars per share) $ 166.92    
Granted, weighted average grant date fair value (in dollars per share) 189.30 $ 169.11 $ 172.96
Vested, weighted average grant date fair value (in dollars per share 154.02    
Forfeited, weighted average grant date fair value (in dollars per share 172.49    
Ending nonvested, weighted average grant date fair value (in dollars per share) $ 181.85 $ 166.92  
Vested in period, fair value (less than) $ 27 $ 16 $ 2
v3.24.0.1
Equity-Based Compensation - Performance Share Unit Activity (Details) - Performance Share Units (PSUs) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Units (in shares):      
Nonvested beginning of period (in shares) 444,233    
Grants (in shares) 147,425    
Attainment adjustment (in shares) 109,462    
Vested (in shares) (275,334)    
Forfeited (in shares) (30,904)    
Nonvested end of period (in shares) 394,882 444,233  
Equity Instruments Other Than Options, Weighted Average Grant Date Fair Value (in dollars per share):      
Beginning nonvested, weighted average grant date fair value (in dollars per share) $ 165.11    
Granted, weighted average grant date fair value (in dollars per share) 210.30 $ 176.14 $ 154.37
Attainment Adjustment, weighted average grant date fair value (in dollars per share) 95.17    
Vested, weighted average grant date fair value (in dollars per share 125.60    
Forfeited, weighted average grant date fair value (in dollars per share 182.82    
Ending nonvested, weighted average grant date fair value (in dollars per share) $ 188.76 $ 165.11  
Vested in period, fair value (less than) $ 35 $ 28 $ 28
v3.24.0.1
Earnings Per Share (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Basic weighted-average shares outstanding (in shares) 134.6 135.2 138.5
Effect of diluted securities (in shares) 1.7 1.8 2.0
Diluted weighted-average shares outstanding (in shares) 136.3 137.0 140.5
Anti-dilutive shares (fewer than) (in shares) 0.2 0.2 0.2
v3.24.0.1
Coworker Retirement and Other Compensation Benefits - Profit Sharing and 401(K) Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
401(k) Plan      
Coworker Retirement and Other Compensation Benefits [Line Items]      
Defined contribution plan expense $ 20 $ 43 $ 46
v3.24.0.1
Coworker Retirement and Other Compensation Benefits - Coworker Stock Purchase Plan (Details) - Coworker Stock Purchase Plan
$ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
Coworker Retirement and Other Compensation Benefits [Line Items]  
Employee stock purchase plan discount to market price (as percent) 5.00%
Defined contribution plan expense $ 0
v3.24.0.1
Segment Information - Narrative (Details)
12 Months Ended
Dec. 31, 2023
employee
segment
Segment Reporting Information [Line Items]  
Number of reportable segments | segment 3
Number of operating segments which do not meet reportable unit quantitative threshold | segment 2
Minimum | Corporate  
Segment Reporting Information [Line Items]  
Customer segments, customer employee headcount | employee 250
Maximum | Small Business  
Segment Reporting Information [Line Items]  
Customer segments, customer employee headcount | employee 250
v3.24.0.1
Segment Information - Schedule of Segment Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Net sales $ 21,376.0 $ 23,748.7 $ 20,820.8
Operating income (loss) 1,680.9 1,735.2 1,419.0
Depreciation and amortization expense (270.7) (290.6) (191.2)
Operating Segments | Corporate      
Segment Reporting Information [Line Items]      
Net sales 8,960.8 10,350.1 8,179.7
Operating income (loss) 846.8 931.7 697.3
Depreciation and amortization expense (82.1) (98.0) (22.9)
Operating Segments | Small Business      
Segment Reporting Information [Line Items]      
Net sales 1,556.0 1,938.9 1,870.1
Operating income (loss) 177.3 186.8 167.7
Depreciation and amortization expense (4.7) (6.4) (4.1)
Operating Segments | Public      
Segment Reporting Information [Line Items]      
Net sales 8,305.7 8,551.3 8,183.6
Operating income (loss) 735.0 681.7 606.7
Depreciation and amortization expense (58.4) (67.9) (57.2)
Operating Segments | Other      
Segment Reporting Information [Line Items]      
Net sales 2,553.5 2,908.4 2,587.4
Operating income (loss) 142.1 130.7 115.8
Depreciation and amortization expense (30.1) (31.9) (34.4)
Headquarters      
Segment Reporting Information [Line Items]      
Net sales 0.0 0.0 0.0
Operating income (loss) (220.3) (195.7) (168.5)
Depreciation and amortization expense $ (95.4) $ (86.4) $ (72.6)
v3.24.0.1
Segment Information - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Net sales $ 21,376.0 $ 23,748.7 $ 20,820.8
Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 8,960.8 10,350.1 8,179.7
Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,556.0 1,938.9 1,870.1
Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 8,305.7 8,551.3 8,183.6
Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 2,553.5 2,908.4 2,587.4
Transferred at a point in time where CDW is principal      
Disaggregation of Revenue [Line Items]      
Net sales 18,512.9 21,016.1 18,990.0
Transferred at a point in time where CDW is principal | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 7,515.7 8,971.4 7,332.3
Transferred at a point in time where CDW is principal | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,374.1 1,751.1 1,734.7
Transferred at a point in time where CDW is principal | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 7,411.1 7,717.1 7,634.3
Transferred at a point in time where CDW is principal | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 2,212.0 2,576.5 2,288.7
Transferred at a point in time where CDW is agent      
Disaggregation of Revenue [Line Items]      
Net sales 1,521.8 1,414.0 1,049.6
Transferred at a point in time where CDW is agent | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 778.0 749.3 517.5
Transferred at a point in time where CDW is agent | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 145.3 140.1 112.3
Transferred at a point in time where CDW is agent | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 480.6 426.9 336.6
Transferred at a point in time where CDW is agent | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 117.9 97.7 83.2
Transferred over time where CDW is principal      
Disaggregation of Revenue [Line Items]      
Net sales 1,341.3 1,318.6 781.2
Transferred over time where CDW is principal | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 667.1 629.4 329.9
Transferred over time where CDW is principal | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 36.6 47.7 23.1
Transferred over time where CDW is principal | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 414.0 407.3 212.7
Transferred over time where CDW is principal | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 223.6 234.2 215.5
Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 8,960.8 10,350.1 8,179.7
Corporate | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 8,960.8 10,350.1 8,179.7
Corporate | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Corporate | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Corporate | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,556.0 1,938.9 1,870.1
Small Business | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Small Business | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,556.0 1,938.9 1,870.1
Small Business | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Small Business | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Government      
Disaggregation of Revenue [Line Items]      
Net sales 2,669.1 2,574.3 2,155.6
Government | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Government | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Government | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 2,669.1 2,574.3 2,155.6
Government | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Education      
Disaggregation of Revenue [Line Items]      
Net sales 3,298.3 3,621.4 4,108.7
Education | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Education | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Education | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 3,298.3 3,621.4 4,108.7
Education | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Healthcare      
Disaggregation of Revenue [Line Items]      
Net sales 2,338.3 2,355.6 1,919.3
Healthcare | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Healthcare | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Healthcare | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 2,338.3 2,355.6 1,919.3
Healthcare | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Other      
Disaggregation of Revenue [Line Items]      
Net sales 2,553.5 2,908.4 2,587.4
Other | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Other | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Other | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 0.0 0.0 0.0
Other | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 2,553.5 2,908.4 2,587.4
Hardware      
Disaggregation of Revenue [Line Items]      
Net sales 15,702.6 18,091.0 16,769.6
Hardware | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 6,216.9 7,561.0 6,427.9
Hardware | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,242.3 1,610.7 1,587.9
Hardware | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 6,460.4 6,763.9 6,827.1
Hardware | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 1,783.0 2,155.4 1,926.7
Software      
Disaggregation of Revenue [Line Items]      
Net sales 3,799.3 3,684.9 2,802.4
Software | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 1,772.3 1,781.5 1,172.4
Software | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 232.8 232.9 211.0
Software | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 1,295.4 1,196.9 1,017.3
Software | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 498.8 473.6 401.7
Services      
Disaggregation of Revenue [Line Items]      
Net sales 1,761.3 1,842.0 1,126.1
Services | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 909.1 929.3 510.1
Services | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 62.6 73.8 49.1
Services | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 531.5 570.7 321.5
Services | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 258.1 268.2 245.4
Other      
Disaggregation of Revenue [Line Items]      
Net sales 112.8 130.8 122.7
Other | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 62.5 78.3 69.3
Other | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 18.3 21.5 22.1
Other | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 18.4 19.8 17.7
Other | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 13.6 11.2 13.6
United States      
Disaggregation of Revenue [Line Items]      
Net sales 18,754.9 20,828.6 18,238.8
United States | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 8,894.5 10,321.2 8,165.4
United States | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 1,534.5 1,934.8 1,870.1
United States | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 8,299.4 8,550.8 8,183.6
United States | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales 26.5 21.8 19.7
Rest of World      
Disaggregation of Revenue [Line Items]      
Net sales 2,621.1 2,920.1 2,582.0
Rest of World | Operating Segments | Corporate      
Disaggregation of Revenue [Line Items]      
Net sales 66.3 28.9 14.3
Rest of World | Operating Segments | Small Business      
Disaggregation of Revenue [Line Items]      
Net sales 21.5 4.1 0.0
Rest of World | Operating Segments | Public      
Disaggregation of Revenue [Line Items]      
Net sales 6.3 0.5 0.0
Rest of World | Operating Segments | Other      
Disaggregation of Revenue [Line Items]      
Net sales $ 2,527.0 $ 2,886.6 $ 2,567.7
v3.24.0.1
Segment Information - Products and Services (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net Sales from External Customer [Line Items]      
Net sales $ 21,376.0 $ 23,748.7 $ 20,820.8
Percentage of Total Net Sales 100.00% 100.00% 100.00%
Notebooks/Mobile Devices      
Net Sales from External Customer [Line Items]      
Net sales $ 4,690.5 $ 6,179.7 $ 6,659.4
Percentage of Total Net Sales 21.90% 26.00% 32.00%
Netcomm Products      
Net Sales from External Customer [Line Items]      
Net sales $ 3,185.4 $ 2,729.7 $ 1,950.9
Percentage of Total Net Sales 14.90% 11.50% 9.40%
Collaboration      
Net Sales from External Customer [Line Items]      
Net sales $ 1,909.7 $ 2,394.8 $ 2,218.8
Percentage of Total Net Sales 8.90% 10.10% 10.70%
Data Storage and Servers      
Net Sales from External Customer [Line Items]      
Net sales $ 2,240.7 $ 2,479.0 $ 2,044.9
Percentage of Total Net Sales 10.50% 10.40% 9.80%
Desktops      
Net Sales from External Customer [Line Items]      
Net sales $ 1,069.1 $ 1,284.9 $ 1,203.6
Percentage of Total Net Sales 5.00% 5.40% 5.80%
Other Hardware      
Net Sales from External Customer [Line Items]      
Net sales $ 2,607.2 $ 3,022.9 $ 2,692.0
Percentage of Total Net Sales 12.30% 12.70% 12.90%
Total Hardware      
Net Sales from External Customer [Line Items]      
Net sales $ 15,702.6 $ 18,091.0 $ 16,769.6
Percentage of Total Net Sales 73.50% 76.10% 80.60%
Software      
Net Sales from External Customer [Line Items]      
Net sales $ 3,799.3 $ 3,684.9 $ 2,802.4
Percentage of Total Net Sales 17.80% 15.50% 13.50%
Services      
Net Sales from External Customer [Line Items]      
Net sales $ 1,761.3 $ 1,842.0 $ 1,126.1
Percentage of Total Net Sales 8.20% 7.80% 5.40%
Other      
Net Sales from External Customer [Line Items]      
Net sales $ 112.8 $ 130.8 $ 122.7
Percentage of Total Net Sales 0.50% 0.60% 0.50%
v3.24.0.1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-13 [Member]