CDW 2012 Annual Report Download - page 74

Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
of long-term debt of $9.2 million in the Company's consolidated statement of operations for the year ended December 31, 2010 related
to this repurchase. In May 2010, the $28.5 million in principal amount of senior subordinated debt that were repurchased were
exchanged for increasing rate notes and subsequently surrendered to the indenture trustee for cancellation.
CDW LLC and CDW Finance Corporation are the co-issuers of the Senior Subordinated Notes. Obligations under the Senior
Subordinated Notes are guaranteed on an unsecured senior basis by Parent and each of CDW LLC's direct and indirect, 100% owned,
domestic subsidiaries. The Senior Subordinated Notes contain negative covenants that, among other things, place restrictions and
limitations on the ability of Parent and each of CDW LLC's direct and indirect, 100% owned, domestic subsidiaries to dispose of assets,
incur additional indebtedness, incur guarantee obligations, prepay other indebtedness, make distributions or other restricted payments,
create liens, make equity or debt investments, make acquisitions, engage in mergers or consolidations, or engage in certain transactions
with affiliates. The Senior Subordinated Notes do not contain any financial covenants.
Long-Term Debt Maturities
As of December 31, 2012 , the maturities of long-term debt were as follows:
See Note 19 for a description of refinancing transactions entered into in 2013.
Fair Value
The fair value of the Company's long-term debt instruments at December 31, 2012 was $3,970.0 million . The fair value of the Senior
Secured Notes, Senior Notes and Senior Subordinated Notes is estimated using quoted market prices for identical assets or liabilities
that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan is estimated using
dealer quotes for identical assets or liabilities in markets that are not considered active. Consequently, the Company's long-term debt is
classified as Level 2 within the fair value hierarchy.
At December 31, 2012 , the carrying value of the Company's long-term debt was $3,766.0 million , excluding $5.0 million in
unamortized premium.
Deferred Financing Costs
The following table summarizes the deferred financing costs activity for the years ended December 31, 2012 and 2011:
As of December 31, 2012 and December 31, 2011 , the weighted-average remaining life of unamortized deferred financing costs was
5.1 and 5.9 years, respectively.
68
(in millions)
Years ending December 31,
2013
$
40.0
2014
408.7
2015
—
2016
—
2017
1,512.3
Thereafter
1,805.0
$
3,766.0
(in millions) December 31,
2012
2011
Beginning balance
$
68.5
$
79.7
Additional costs capitalized
2.1
26.3
Recognized in interest expense
(14.4
)
(15.7
)
Write-off of unamortized deferred financing costs
(3.0
)
(21.8
)
Ending balance
$
53.2
$
68.5