CDW 2012 Annual Report Download - page 65

Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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.
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 the Company's 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. The Company 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 the Company's 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 the Company’s consolidated financial position, results of operations or cash flows.
Property and equipment consisted of the following:
59
2.
Recent Accounting Pronouncements
3.
Property and Equipment
(in millions) December 31,
2012
2011
Land
$
27.7
$
27.7
Machinery and equipment
50.9
48.3
Building and leasehold improvements
104.0
102.1
Computer and data processing equipment
56.4
49.7
Computer software
30.2
29.2
Furniture and fixtures
21.6
20.3
Construction in progress
11.9
17.0
Total property and equipment
302.7
294.3
Less accumulated depreciation
160.0
140.0
Net property and equipment
$
142.7
$
154.3