CDW 2012 Annual Report Download - page 60

Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Description of Business
CDW is a Fortune 500 company and a leading provider of integrated information technology (“IT”) solutions to small, medium and
large business, government, education and healthcare customers in the U.S. and Canada. The Company's offerings range from discrete
hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing,
virtualization and collaboration.
Basis of Presentation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in
the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).
On October 12, 2007, CDW Corporation, an Illinois corporation, was acquired through a merger transaction by an entity controlled by
investment funds affiliated with Madison Dearborn Partners, LLC and Providence Equity Partners L.L.C. (the “Acquisition”). CDW
Corporation continued as the surviving corporation and same legal entity after the Acquisition, but became a wholly owned subsidiary
of VH Holdings, Inc., a Delaware corporation.
On December 31, 2009, CDW Corporation merged into CDWC LLC, an Illinois limited liability company owned by VH Holdings,
Inc., with CDWC LLC as the surviving entity. This change had no impact on the operations or management of the Company. On
December 31, 2009, CDWC LLC was renamed CDW LLC (“CDW LLC”).
On August 17, 2010, VH Holdings, Inc. was renamed CDW
Corporation (“Parent”).
Parent is owned directly by CDW Holdings LLC, a company controlled by investment funds affiliated with Madison Dearborn Partners,
LLC and Providence Equity Partners L.L.C. (the “Equity Sponsors”), certain other co-investors and certain members of CDW
management.
On August 6, 2010, CDW Finance Corporation, a Delaware corporation, was formed for the sole purpose of acting as a co-issuer of
certain debt obligations as described in Note 7. CDW Finance Corporation is 100% owned by Parent and does not hold any material
assets or engage in any business activities or operations.
Throughout this report, the terms “the Company” and “CDW” refer to Parent and its 100% owned subsidiaries.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Parent and its 100% owned subsidiaries. All intercompany
transactions and accounts are eliminated in consolidation.
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make use of certain estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. The Company
bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the
circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results could differ from those estimates.
Reclassifications
Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period
presentation.
Cash and Cash Equivalents
Cash and cash equivalents include all deposits in banks and short-term (original maturities of three months or less), 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.
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Description of Business and Summary of Significant Accounting Policies