CDW 2015 Annual Report Download - page 49

Table of Contents
ended December 31, 2015 and 2014, respectively. The increase in cash provided by accounts payable-inventory financing was primarily due to a new vendor added to our
previously existing inventory financing agreement. For a description of the inventory financing transactions impacting each period, see Note 6 (Inventory Financing
Agreements) to the accompanying Consolidated Financial Statements. For a description of the debt transactions impacting each period, see Note 8 (Long-Term Debt) to the
accompanying Consolidated Financial Statements.
Net cash used in financing activities decreased $56.3 million in 2014 compared to 2013. The decrease was primarily driven by several debt refinancing transactions
during each period and our July 2013 IPO, which generated net proceeds of $424.7 million after deducting underwriting discounts, expenses and transaction costs. The net
impact of our debt transactions resulted in cash outflows of $145.9 million and $518.3 million during 2014 and 2013, respectively, as cash was used in each period to reduce
our total long-term debt. For a description of the debt transactions impacting each period, see Note 8 (Long-Term Debt) to the accompanying Consolidated Financial
Statements.
Long-Term Debt and Financing Arrangements
As of December 31, 2015, we had total indebtedness of $3.3 billion , of which $1.6 billion was secured indebtedness. At December 31, 2015, we were in
compliance with the covenants under our various credit agreements and indentures. The amount of CDW’s restricted payment capacity under the Senior Secured Term Loan
Facility was $679.7 million at December 31, 2015.
For further details regarding our debt and each of the transactions described below, see Note 8 (Long-Term Debt) to the accompanying Consolidated Financial
Statements.
During the year ended December 31, 2015, the following events occurred with respect to our debt structure:
• On August 1, 2015, we consolidated Kelway’s Term Loan and Kelway’s Revolving Credit Facility. Kelway’s Term Loan is denominated in British Pounds.
The Kelway Revolving Credit Facility is a multi-currency revolving credit facility under which Kelway is permitted to borrow an aggregate amount of £ 50.0
million ( $73.7 million ) as of December 31, 2015.
• On March 3, 2015, we completed the issuance of $525.0 million principal amount of 5.0% Senior Notes due 2023 which will mature on September 1, 2023.
•On March 3, 2015, we redeemed the remaining $503.9 million aggregate principal amount of the 8.5% Senior Notes due 2019, plus accrued and unpaid interest
through the date of redemption, April 2, 2015.
Inventory Financing Agreements
We have entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and
conditions. These amounts are classified separately as accounts payable-inventory financing on the Consolidated Balance Sheets. We do not incur any interest expense
associated with these agreements as balances are paid when they are due. For further details, see Note 6 (Inventory Financing Agreements) to the accompanying
Consolidated Financial Statements.
Contractual Obligations
We have future obligations under various contracts relating to debt and interest payments, operating leases and asset retirement obligations. Our estimated future
payments, based on undiscounted amounts, under contractual obligations that existed as of December 31, 2015, are as follows:
Payments Due by Period
(in millions) Total
< 1 year
1-3 years
4-5 years
> 5 years
Term Loan (1) $ 1,703.4
$ 63.9
$ 126.3
$ 1,513.2
$ —
Kelway Term Loan (1) 90.9
13.5
77.4
—
—
Senior Notes due 2022 (2) 852.0
36.0
72.0
72.0
672.0
Senior Notes due 2023 (2) 735.1
26.3
52.5
52.5
603.8
Senior Notes due 2024 (2) 859.7
31.6
63.3
63.3
701.5
Operating leases (3) 143.2
22.5
41.7
37.1
41.9
Asset retirement obligations (4) 1.8
0.8
0.5
0.3
0.2
Total $ 4,386.1
$ 194.6
$ 433.7
$ 1,738.4
$ 2,019.4
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