CDW 2012 Annual Report Download - page 44

Table of Contents
The following table presents the amounts included in accounts payable-inventory financing:
We maintain a senior secured asset-
based revolving credit facility as described in Note 7 to our consolidated financial statements, which
incorporates a $400.0 million floorplan sub-
facility to facilitate the purchase of inventory from a certain vendor. In connection with the floorplan
sub-facility, we maintain an inventory financing agreement on an unsecured basis with a financial intermediary to facilitate the purchase of
inventory from this vendor (the “Revolving Loan inventory financing agreement”). Amounts outstanding under the Revolving Loan inventory
financing agreement are unsecured and non-interest bearing. At December 31, 2012 and 2011, we reported $248.3 million $240.7 million,
respectively, for this agreement within accounts payable-inventory financing in the consolidated balance sheets.
We
also maintain other inventory financing agreements with financial intermediaries to facilitate the purchase of inventory from certain
vendors. During the first quarter of 2012, we terminated one of these agreements; amounts owed for subsequent purchases of this product line
are included in accounts payable-trade on the consolidated balance sheet. At December 31, 2011, $30.3 million owed under this agreement was
reported within accounts payable-inventory financing on the consolidated balance sheet.
Of the total amounts owed under other inventory financing agreements at December 31, 2012 and 2011, $0.9 million and $7.7 million,
respectively, were collateralized by the inventory purchased under these financing agreements and a second lien on the related accounts
receivable. The remaining amounts owed under other inventory financing agreements were not collateralized.
Contractual Obligations
We have future obligations under various contracts relating to debt and interest payments, operating leases and asset retirement
obligations. The following table presents our estimated future payments under contractual obligations that existed as of December 31, 2012,
based on undiscounted amounts.
40
(in millions)
December 31,
2012 2011
Revolving Loan inventory financing agreement
$
248.3
$
240.7
Other inventory financing agreements
0.9
38.0
Accounts payable-inventory financing
$
249.2
$
278.7
(in millions) Payments Due by Period
Total
< 1 year 1-3 years 4-5 years > 5 years
Revolving Loan
(1)
$
—
$
—
$
—
$
—
$
—
Term Loan
(2)
1,533.4
91.7
493.6
948.1
—
Senior Secured Notes
(3)
740.0
40.0
80.0
80.0
540.0
Senior Notes
(3)
2,026.1
110.9
221.9
221.9
1,471.4
Senior Subordinated Notes
(3)
1,010.4
77.9
155.8
776.7
—
Operating leases
(4)
106.2
18.3
35.9
23.7
28.3
Asset retirement obligations
(5)
0.5
—
—
0.5
—
Total
$
5,416.6
$
338.8
$
987.2
$
2,050.9
$
2,039.7
(1) Includes only principal payments. Excludes interest payments and fees related to this facility because of variability with respect to the
timing of advances and repayments.
(2) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates. Interest payments for
the variable rate debt were calculated using interest rates as of December 31, 2012. Excluded from these amounts are the amortization
of debt issuance and other costs related to indebtedness.
(3) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates. Interest on the Senior
Secured Notes, Senior Notes and Senior Subordinated Notes is calculated using the stated interest rate. Excluded from these amounts
are the amortization of debt issuance and other costs related to indebtedness. See "Subsequent Events" for a description of refinancing
transactions entered into in 2013.
(4) Includes the minimum lease payments for non-
cancelable leases for properties and equipment used in our operations.
(5)
Represent commitments to return property subject to operating leases to original condition upon lease termination.