CDW 2014 Annual Report Download - page 44

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Table of Contents
Income tax expense
Income tax expense was $142.8 million in 2014 , compared to $62.7 million in 2013 . The effective income tax rate, expressed by
calculating income tax expense or benefit as a percentage of income before income taxes, was 36.8% and 32.1% for 2014 and 2013 ,
respectively.
For 2014 , the effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, including current year
state income tax credits. For 2013 , the effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes,
including current year state income tax credits and an adjustment to deferred state income taxes due to changes in apportionment factors. The
higher effective tax rate for 2014 as compared to 2013 was primarily attributable to the favorable impact of changes in state tax apportionment
factors had on deferred state income taxes in 2013 and a lower rate impact of state income tax credits due to the increase in income before
income taxes in 2014.
Net income
Net income was $244.9 million in 2014 , compared to $132.8 million in 2013 . Significant factors and events causing the net changes
between the periods are discussed above.
Non
-GAAP net income
Non-GAAP net income was $409.9 million for the year ended December 31, 2014 , an increase of $95.6 million , or 30.4% , compared
to $314.3 million for the year ended December 31, 2013 .
We have included a reconciliation of Non-GAAP net income for the years ended December 31, 2014 and 2013 below. Non-GAAP net
income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, non-cash equity-based
compensation, and gains and losses from the early extinguishment of debt. Non-GAAP net income is considered a non-
GAAP financial measure.
Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either
excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in
accordance with GAAP. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when
similar terms are used to identify such measures. We believe that Non-GAAP net income provides helpful information with respect to our
operating performance and cash flows including our ability to meet our future debt service, capital expenditures and working capital
requirements.
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