CDW 2006 Annual Report Download - page 35

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Net cash used in financing activities in 2006 was $170.2 million. The primary factors that
affected our cash flow from financing activities were the repurchase of shares of our common stock at
a total cost of $227.7 million and the payment of cash dividends totaling $40.7 million, partially offset
by proceeds of $78.3 million from the issuance of common stock under share-based compensation
plans.
Aggregate Contractual Obligations
We are obligated under various operating lease agreements for office facilities that generally
provide for minimum rent payments and a proportionate share of operating expenses and property
taxes and include certain renewal and expansion options. For the years ended December 31, 2006,
2005 and 2004, rent expense was $14.9 million, $11.4 million and $13.8 million, respectively.
In connection with the acquisition of Berbee, we assumed certain capital lease obligations for
office equipment.
The following table summarizes our contractual commitments under capital and operating lease
agreements as of December 31, 2006 (in thousands). We expect to fulfill these commitments from
our working capital.
Total
Less than
1 year 1-3 years 3-5 years
Over 5
years
Operating leases $ 103,187 $ 11,888 $ 25,172 $ 20,079 $ 46,048
Capital leases 830 562 268 - -
Total $ 104,017 $ 12,450 $ 25,440 $ 20,079 $ 46,048
Any statements in this report that are forward-looking (that is, not historical in nature) are made
pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, for example, statements concerning the Company’s sales
growth, cooperative advertising reimbursements, vendor incentives, gross profit as a percentage of
sales, selling and administrative expenses, advertising expense, operating income as a percentage
of sales, and effective tax rate. In addition, words such as “likely,” “may,” “would,” “could,” “should,”
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “objective,” and similar expressions, may
identify forward-looking statements in this report. Forward-looking statements in this report are
based on the Company’s beliefs and expectations as of the date of this report and are subject to risks
and uncertainties, including those outlined in detail in this report in Item 1A – Risk Factors and other
factors identified from time to time in the Company’s filings with the Securities and Exchange
Commission. Such risks and uncertainties may have a significant impact on the Company’s
business, operating results or financial condition. Investors are cautioned that these forward-looking
statements are inherently uncertain. Should one or more of the risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results or outcomes may vary materially from
those described herein.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company’s investments in marketable securities as of December 31, 2006 all mature before
December 31, 2008 and are concentrated in U.S. Government and Government agency securities,
municipal bonds and corporate fixed income securities. As such, the risk of significant changes in the
value of these securities as a result of a change in market interest rates is minimal.