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Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company performed its annual evaluation of goodwill as of December 1, 2012 by utilizing a quantitative assessment for all
reporting units. All reporting units passed the first step of the goodwill evaluation (with the fair value exceeding the carrying value by
49% , 44% , 104% and 17% for the Corporate, Public, Canada and CDW Advanced Services reporting units, respectively) and,
accordingly, the Company was not required to perform the second step of the goodwill evaluation.
To determine the fair value of the reporting units, the Company used a 75% / 25% weighting of the income approach and market
approach, respectively. Under the income approach, the Company estimated future cash flows of each reporting unit based on internally
generated forecasts for the remainder of 2012 and the next six years. The Company used a 3.5% long-
term assumed consolidated annual
revenue growth rate for periods after the six-year forecast. The estimated future cash flows for the Corporate and Public reporting units
were discounted at 11.5% ; cash flows for the Canada and CDW Advanced Services reporting units were discounted at 11.8% and
12.0% , respectively, based on the future growth rates assumed in the discounted cash flows.
The following table presents the change in goodwill by segment for the years ended December 31, 2014 and 2013 :
72
(in millions) Corporate
Public
Other
(1)
Consolidated
Balances as of December 31, 2012:
Goodwill
$
2,794.4
$
1,261.4
$
107.3
$
4,163.1
Accumulated impairment charges
(1,571.4
)
(354.1
)
(28.3
)
(1,953.8
)
$
1,223.0
$
907.3
$
79.0
$
2,209.3
2013 Activity:
Translation adjustment
$
—
$
—
$
(
2.1
)
$
(2.1
)
Contingent consideration
(2)
8.8
4.0
0.3
13.1
$
8.8
$
4.0
$
(1.8
)
$
11.0
Balances as of December 31, 2013:
Goodwill
$
2,803.2
$
1,265.4
$
105.5
$
4,174.1
Accumulated impairment charges
(1,571.4
)
(354.1
)
(28.3
)
(1,953.8
)
$
1,231.8
$
911.3
$
77.2
$
2,220.3
2014 Activity:
Translation adjustment
$
—
$
—
$
(
2.7
)
$
(2.7
)
$
—
$
—
$
(
2.7
)
$
(2.7
)
Balances as of December 31, 2014:
Goodwill
$
2,803.2
$
1,265.4
$
102.8
$
4,171.4
Accumulated impairment charges
(1,571.4
)
(354.1
)
(28.3
)
(1,953.8
)
$
1,231.8
$
911.3
$
74.5
$
2,217.6
(1) Other is comprised of CDW Advanced Services, Canada, and Kelway reporting units. There is no goodwill attributable to the
Kelway reporting unit.
(2) During 2013, the Company recorded a $13.1 million net-of-tax addition to goodwill in connection with the settlement of the
MPK Coworker Incentive Plan II and related charitable contribution. The charitable contribution was accounted for as
additional purchase price (goodwill) in accordance with pre-
2009 business combinations accounting guidance. See Note 10 for
additional discussion of this transaction.