CDW 2004 Annual Report Download - page 15

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wide training program. CDW University provides specialized training in sales and relationship-building
techniques, technical certifications, leadership development skills and interpersonal and professional skills.
We strive to create a supportive and rewarding work environment. In 2005, we were named by FORTUNE
magazine as one of the “100 Best Companies to Work For” for the seventh consecutive year. For the third
consecutive year, we were the highest ranked FORTUNE 500 company on this list. Our Vernon Hills, Illinois
headquarters offers an on-site childcare and fitness center, on-site dry cleaning service, private rooms for
nursing mothers and a series of English language classes for coworkers who speak English as a second
language. CDW coworkers are encouraged to provide their thoughts and concerns regarding the Company
directly to management, including through our whistleblower hotline.
Incentive and Regular Compensation Arrangements
Compensation Arrangements. Our coworkers are compensated on a basis that rewards performance and
the achievement of identified goals. For example, account managers generally receive compensation pursuant
to a monthly commission schedule which is based on the gross profit they generate. Account managers have
the authority to negotiate and adjust prices for products, provided that the product is sold at a price which meets
established management guidelines and pursuant to various contracted prices, where applicable. Account
managers have the opportunity to achieve relatively high compensation levels and have historically shown
increased productivity as training and experience levels increase. In addition, most coworkers, excluding the
Company’s sales force, are eligible for monthly, quarterly or annual bonus programs that are tied to achieving
certain goals. We believe that these incentives positively impact the Company’s performance and profitability.
Coworker Bonus and Stock Incentive Plans. In addition to regular compensation, we provide coworkers
with additional long-term incentives designed to maximize performance and productivity. To this end, we have
adopted various stock-based compensation plans which enable coworkers to share in the Company’s success
through appreciation in the value of the Company’s stock. We have historically rewarded every coworker with
an annual stock option grant as a part of their compensation.
Trademarks and Trade Names
We conduct business under a number of trademarks, trade names and service marks including “CDW,”
“CDW. THE RIGHT TECHNOLOGY. RIGHT AWAY.,” “CDW@WORK,” “CDW-G,” “CDW-
G@WORK,” “CDW SOLUTIONEDGE,” and “CDW MACWAREHOUSE.” We have taken steps to protect
these marks, some of which are registered, and believe they have significant value and are important factors in
our marketing programs.
Certain Factors Affecting CDW’s Business
There are many factors that affect our business and the results of operations, some of which are beyond our
control. The following is a description of some important factors that may cause the actual results of operations
in future periods to differ materially from those currently expected or desired.
Our sales and profitability may be affected by changes in the economic environment and other factors.
There are many factors which could affect our business, including:
x the capital and technology spending patterns of existing and prospective customers;
x general economic trends;
x the addition of new customers and further penetration of our existing customer base;
x the productivity and retention of our sales force;
x the optimization of our product mix and pricing strategies;
x the availability of products from our vendors;
x the successful development of new technology and products by equipment manufacturers and software
developers; and