CDW 2012 Annual Report Download - page 48

Table of Contents
Recent Accounting Pronouncements
Testing Goodwill for Impairment
In September 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-
08 which
was intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a qualitative
assessment to determine whether further impairment testing is necessary. If an entity concludes that it is more likely than not that a reporting
unit's fair value is equal to or greater than its carrying amount using the qualitative assessment, the entity would not be required to perform the
two-step goodwill impairment test for that reporting unit. This update was effective for annual and interim goodwill impairment tests performed
in fiscal years beginning after December 15, 2011. The adoption of this guidance did not have a material impact on our consolidated financial
position, results of operations, or cash flows.
Presentation of Comprehensive Income
In June 2011, the FASB issued ASU 2011-05, which amended guidance on the presentation of comprehensive income. The new
guidance eliminated the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. It
required an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive
income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Subsequently, the FASB
issued ASU 2011-12 in December 2011, which deferred changes in ASU 2011-05 that relate to the presentation of reclassification adjustments
between other comprehensive income and net income. The guidance did not change the items which must be reported in other comprehensive
income, how such items are measured or when they must be reclassified to net income. These updates were to be applied retrospectively and
were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted ASU 2011-05 and ASU
2011-12 as of January 1, 2012. As this guidance impacts presentation only, the adoption did not have an impact on our consolidated financial
position, results of operations or cash flows.
Fair Value Measurements
In May 2011, the FASB issued ASU 2011-04. The new guidance resulted in common principles and requirements for measuring fair
value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards
(“IFRS”). The new guidance did not extend the use of fair value accounting, but provided guidance on how it should be applied where its use is
already required or permitted by other standards within GAAP or IFRS. This update was effective for interim and annual periods beginning after
December 15, 2011. The adoption of this guidance on January 1, 2012 did not have a material impact on our consolidated financial position,
results of operations or cash flows.
Subsequent Events
On January 30, 2013, we made an optional prepayment of $40.0 million aggregate principal amount of the Term Loan. The prepayment
was allocated on a pro rata basis between the extended and non-extended loans. The optional prepayment satisfied the excess cash flow payment
provision of the Term Loan with respect to the year ended December 31, 2012.
On February 6, 2013, we called for redemption $50.0 million aggregate principal amount of our outstanding Senior Subordinated Notes.
The redemption price of the Senior Subordinated Notes was 106.268% of the principal amount redeemed, plus accrued and unpaid interest to the
date of redemption, which was March 8, 2013. In connection with this redemption, we expect to record a loss on extinguishment of long-term
debt of $3.9 million in our consolidated statement of operations in the first quarter of 2013. This loss represents the redemption premium and the
write-off of a portion of the unamortized deferred financing costs related to the Senior Subordinated Notes.
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