CDW 2014 Annual Report Download - page 40

Table of Contents
Net sales
The following table presents our net sales by segment, in dollars and as a percentage of total net sales, and the year-over-
year dollar and
percentage change in net sales for the years ended December 31, 2014 and 2013 :
The following table presents our net sales by customer channel for our Corporate and Public segments and the year-over-
year dollar and
percentage change in net sales for the years ended December 31, 2014 and 2013 . Net sales of $150.1 million for the year ended December 31,
2013 have been reclassified from the small business customer channel to the medium/large customer channel to conform to the current period
presentation.
Total net sales in 2014 increased $1,305.9 million , or 12.1% , to $12,074.5 million , compared to $10,768.6 million in 2013 . There
were 254 selling days for both the years ended December 31, 2014 and 2013 . The increase in total net sales was primarily the result of
continued growth in transactional products driven by notebooks/mobile devices and desktop computers as customers across all channels
refreshed their client devices and K-12 customers continued to prepare for digital testing requirements, and the addition of more than 140
customer-facing coworkers, the majority in pre- and post-sale technical positions such as technical specialists and service delivery roles. Growth
in solutions-focused products, including netcomm and software, also contributed to the increase in net sales during 2014 .
Corporate segment net sales in 2014 increased $515.4 million , or 8.6% , compared to 2013 , driven by sales growth in the
medium/large customer channel. Within our Corporate segment, net sales to medium/large customers increased $432.7 million , or 8.6% ,
between years primarily due to customers refreshing their client devices and making continued investments in technology infrastructure and a
continued focus on seller productivity. This increase was led by growth in notebooks/mobile devices, netcomm products, software, and desktop
computers. Net sales to small business customers increased $82.7 million , or 9.1% , between years, driven by growth in notebooks/mobile
devices and desktop computers due to customers refreshing their client devices.
Public segment net sales in 2014 increased $714.9 million , or 17.2%
, between years, driven by strong performance across all channels.
In 2013, and through the second quarter of 2014, Public segment results were impacted by the combined and residual negative effects of
sequestration, the partial shutdown of the federal government in 2013 and federal government budget uncertainty. However, with the finalization
of federal budget allocations in early 2014, we began to see improvement in federal sales in the second quarter of 2014 and saw continued
momentum through the third quarter of 2014 in conjunction with
36
Years Ended December 31,
2014
2013
Dollars in
Millions
Percentage of
Total Net Sales
Dollars in
Millions
Percentage of
Total Net Sales
Dollar Change
Percent
Change
(1)
Corporate
$
6,475.5
53.6
%
$
5,960.1
55.3
%
$
515.4
8.6
%
Public
4,879.4
40.4
4,164.5
38.7
714.9
17.2
Other
719.6
6.0
644.0
6.0
75.6
11.7
Total net sales
$
12,074.5
100.0
%
$
10,768.6
100.0
%
$
1,305.9
12.1
%
(1) There were 254 selling days in both the years ended December 31, 2014 and 2013
.
(dollars in millions)
Years Ended December 31,
2014 2013 Dollar Change Percent Change
Corporate:
Medium / Large
$
5,485.4
$
5,052.7
$
432.7
8.6
%
Small Business
990.1
907.4
82.7
9.1
Total Corporate
$
6,475.5
$
5,960.1
$
515.4
8.6
%
Public:
Government
$
1,449.4
$
1,250.6
$
198.8
15.9
%
Education
1,824.0
1,449.0
375.0
25.9
Healthcare
1,606.0
1,464.9
141.1
9.6
Total Public
$
4,879.4
$
4,164.5
$
714.9
17.2
%