CDW 2014 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2014 CDW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Table of Contents
Cash flows from operating, investing and financing activities were as follows:
Operating Activities
Net cash provided by operating activities for 2014 increased $68.7 million compared to 2013 . Net income adjusted for the impact of
non-cash items such as depreciation and amortization, equity-based compensation expense and net loss on extinguishments of long-term debt
was $476.8 million during 2014 , compared to $413.4 million during 2013 . The increase in cash of $63.4 million reflected stronger operating
results in 2014 compared to 2013 . Net changes in assets and liabilities reduced cash by $41.8 million in 2014 compared to a reduction of $47.1
million in 2013 , resulting in a change of $5.3 million between periods. The decrease in inventory balances year over year contributed to a
$111.7 million increase in cash flows which was primarily due to the timing of inventory receipts and earlier than expected inventory shipments
at the end of 2014 due to accelerated customer roll-outs. Partially offsetting the increase in cash flows from inventory was a decline in cash
inflows from accounts payable of $102.4 million driven by the timing of inventory receipts at the end of 2014 versus 2013.
Net cash provided by operating activities for 2013 increased $48.9 million compared to 2012. Net income adjusted for the impact of
non-cash items such as depreciation and amortization, equity-based compensation expense and net loss on extinguishments of long-term debt
was $413.4 million during 2013, compared to $326.8 million during 2012, an increase of $86.6 million. The increase in cash of $86.6 million
reflected stronger operating results in 2013 compared to 2012. Net changes in assets and liabilities reduced cash by $47.1 million in 2013
compared to a reduction of $9.4 million in 2012, resulting in a change of $37.7 million between periods. While changes in assets and liabilities
were relatively flat during 2012, during 2013, accounts receivable and accounts payable balances decreased and increased cash by $170.8
million and $146.1 million, respectively, primarily as a result of accelerated sales growth during the final month of 2013. Merchandise inventory
also increased during 2013 to support strong sales order volume near the end of 2013.
51
(in millions) Years Ended December 31,
2014
2013
2012
Net cash provided by (used in):
Operating activities
$
435.0
$
366.3
$
317.4
Investing activities
(164.8
)
(47.1
)
(41.7
)
Net change in accounts payable - inventory financing
75.5
7.4
(29.5
)
Other financing activities
(187.5
)
(175.7
)
(308.5
)
Financing activities
(112.0
)
(168.3
)
(338.0
)
Effect of exchange rate changes on cash and cash equivalents
(1.8
)
(0.7
)
0.3
Net increase (decrease) in cash and cash equivalents
$
156.4
$
150.2
$
(62.0
)