CDW 2015 Annual Report Download - page 40

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Table of Contents
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Results of operations, in dollars and as a percentage of net sales, for the years ended December 31, 2014 and 2013 are as follows:
Year Ended December 31, 2014
Year Ended December 31, 2013
Dollars in
Millions
Percentage of
Net Sales
Dollars in
Millions
Percentage of
Net Sales
Net sales
$ 12,074.5
100.0 %
$ 10,768.6
100.0 %
Cost of sales
10,153.2
84.1
9,008.3
83.7
Gross profit
1,921.3
15.9
1,760.3
16.3
Selling and administrative expenses
1,110.3
9.2
1,120.9
10.4
Advertising expense
138.0
1.1
130.8
1.2
Income from operations
673.0
5.6
508.6
4.7
Interest expense, net
(197.3)
(1.6)
(250.1)
(2.3)
Net loss on extinguishments of long-term debt
(90.7)
(0.8)
(64.0)
(0.6)
Other income, net
2.7
—
1.0
—
Income before income taxes
387.7
3.2
195.5
1.8
Income tax expense
(142.8)
(1.2)
(62.7)
(0.6)
Net income
$ 244.9
2.0 %
$ 132.8
1.2 %
Netsales
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 are as follows:
Years Ended December 31,
2014
2013
(dollars in millions)
Net Sales
Percentage
of Total Net sales
Net Sales
Percentage
of Total Net Sales
Dollar
Change
Percent
Change (1)
Corporate:
Medium / Large
$ 5,485.4
45.4%
$ 5,052.7
46.9%
$ 432.7
8.6%
Small Business
990.1
8.2
907.4
8.4
82.7
9.1
Total Corporate
6,475.5
53.6
5,960.1
55.3
515.4
8.6
Public:
Government
1,449.4
12.0
1,250.6
11.6
198.8
15.9
Education
1,824.0
15.1
1,449.0
13.5
375.0
25.9
Healthcare
1,606.0
13.3
1,464.9
13.6
141.1
9.6
Total 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 for the years ended December 31, 2014 and 2013.
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. 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.
39