CDW 2014 Annual Report Download - page 53
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Table of Contents
The following table sets forth a reconciliation of EBITDA to net cash provided by operating activities for the years ended December 31,
2013 and 2012.
Seasonality
While we have not historically experienced significant seasonality throughout the year, sales in our Corporate segment, which primarily
serves private sector business customers, are typically higher in the fourth quarter than in other quarters due to customers spending their
remaining technology budget dollars at the end of the year. Additionally, sales in our Public segment have historically been higher in the third
quarter than in other quarters primarily due to the buying patterns of the federal government and education customers.
(in millions) Years Ended December 31,
2013
2012
Net income
$
132.8
$
119.0
Depreciation and amortization
208.2
210.2
Income tax expense
62.7
67.1
Interest expense, net
250.1
307.4
EBITDA
653.8
703.7
Adjustments:
Non-cash equity-based compensation
8.6
22.1
Sponsor fee
2.5
5.0
Consulting and debt-related professional fees
0.1
0.6
Net loss on extinguishments of long-term debt
64.0
17.2
Litigation, net
(1)
(4.1
)
4.3
IPO- and secondary-offering related expenses
(2)
75.0
—
Other adjustments
(3)
8.6
13.7
Total adjustments
154.7
62.9
Adjusted EBITDA
$
808.5
$
766.6
(1) Relates to unusual, non-
recurring litigation matters.
(2) As defined under Non-GAAP net income
above.
(3)
Other adjustments primarily include certain retention costs and equity investment income.
Years Ended December 31,
(in millions)
2013
2012
EBITDA
$
653.8
$
703.7
Depreciation and amortization
(208.2
)
(210.2
)
Income tax expense
(62.7
)
(67.1
)
Interest expense, net
(250.1
)
(307.4
)
Net income
132.8
119.0
Depreciation and amortization
208.2
210.2
Equity-based compensation expense
46.6
22.1
Deferred income taxes
(48.7
)
(56.3
)
Amortization of deferred financing costs, debt premium, and debt
discount, net
8.8
13.6
Net loss on extinguishments of long-term debt
64.0
17.2
Other
1.7
1.0
Changes in assets and liabilities
(47.1
)
(9.4
)
Net cash provided by operating activities
$
366.3
$
317.4