CDW 2015 Annual Report Download - page 43

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Table of Contents
Net loss on extinguishments of long-term debt for the year ended December 31, 2014 is as follows:
Month of Extinguishment Debt Instrument
(in millions)
Amount Extinguished
Loss Recognized
For the Year Ended December 31, 2014
December 2014 2019 Senior Notes
$ 541.4
$ (36.9) (1)
September 2014 2019 Senior Notes
234.7
(22.1) (1)
August 2014 8.0% Senior Secured Notes due 2018
325.0
(23.7) (1)
June 2014 Revolving Loan
—
(0.4) (2)
May 2014 12.535% Senior Subordinated Exchange Notes due 2017
42.5
(2.2) (1)
March 2014 2019 Senior Notes
25.0
(2.7) (1)
January and February 2014 12.535% Senior Subordinated Exchange Notes due 2017
50.0
(2.7) (1)
Total Loss Recognized
$ (90.7)
For the Year Ended December 31, 2013
October 2013 12.535% Senior Subordinated Exchange Notes due 2017
$ 155.0
$ (8.5) (1)
August 2013 12.535% Senior Subordinated Exchange Notes due 2017
324.0
(24.6) (1)
July 2013 8.0% Senior Secured Notes due 2018
175.0
(16.7) (1)
April 2013 Senior Secured Term Loan
—
(10.3) (3)
March 2013 12.535% Senior Subordinated Exchange Notes due 2017
50.0
(3.9) (1)
Total Loss Recognized
$ (64.0)
(1) We redeemed or repurchased all or a portion of the aggregate principal amount outstanding. The loss recognized represents the difference between the redemption
price and the net carrying amount of the purchased debt, adjusted for a portion of the unamortized deferred financing costs and/or unamortized premium.
(2) We entered into the Revolving Loan, a new $1,250 million five-year senior secured asset-based revolving credit facility. The Revolving Loan replaced our previous
revolving loan credit facility that was to mature on June 24, 2016. The loss recognized represents the write-off of a portion of unamortized deferred financing costs.
(3) We entered into the Term Loan, a new $1,350 million seven-year Senior Secured Term Loan Facility. Substantially all of the proceeds were used to repay the
$1,299.5 million outstanding aggregate principal amount of the prior senior secured term loan facility. The loss recognized represents the write-off of a portion of
unamortized deferred financing costs.
Incometaxexpense
Income tax expense was $142.8 million in 2014, compared to $62.7 million in 2013. The effective income tax rate, expressed by calculating income tax expense or
benefit as a percentage of income before income taxes, was 36.8% and 32.1% for 2014 and 2013, respectively.
For 2014, the effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, including current year state income tax credits. For
2013, the effective tax rate differed from the U.S. federal statutory rate primarily due to state income taxes, including current year state income tax credits and an adjustment
to deferred state income taxes due to changes in apportionment factors. The higher effective tax rate for 2014 as compared to 2013 was primarily attributable to the favorable
impact of changes in state tax apportionment factors had on deferred state income taxes in 2013 and a lower rate impact of state income tax credits due to the increase in
income before income taxes in 2014.
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