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Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Description of Business
CDW Corporation ("Parent") 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.
Throughout this report, the terms “the Company” and “CDW” refer to Parent and its 100% owned subsidiaries.
Parent has two 100% owned subsidiaries, CDW LLC and CDW Finance Corporation. CDW LLC is an Illinois limited liability
company that, together with its 100% owned subsidiaries, holds all material assets and conducts all business activities and operations of
the Company. On August 6, 2010, CDW Finance Corporation, a Delaware corporation, was formed for the sole purpose of acting as co-
issuer of certain debt obligations as described in Note 18 and does not hold any material assets or engage in any business activities or
operations.
CDW Corporation was previously owned directly by CDW Holdings LLC ("CDW Holdings"), a company controlled by investment
funds affiliated with Madison Dearborn Partners, LLC ("Madison Dearborn") and Providence Equity Partners L.L.C. ("Providence
Equity," and together with Madison Dearborn, the "Sponsors"), certain other co-investors and certain members of CDW management.
On July 2, 2013, Parent completed an initial public offering ("IPO") of its common stock. In connection with the IPO, CDW Holdings
distributed all of its shares of Parent's common stock to its members in June 2013 in accordance with the members’ respective
membership interests and was subsequently dissolved in August 2013. See Note 9 for additional discussion of the IPO.
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”).
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 the 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.
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.
Accounts Receivable
Trade accounts receivable are recorded at the invoiced amount and typically do not bear interest. The Company provides allowances for
doubtful accounts related to accounts receivable for estimated losses resulting from the inability of its customers to make required
payments. The Company takes into consideration the overall quality of the receivable portfolio along with specifically-identified
customer risks.
65
1.
Description of Business and Summary of Significant Accounting Policies