CDW CDW · USD

Segment Information The Company has three reportable segments: “Corporate,” “Small Business,” and “Public.” In addition, there are two other operating segments: CDW UK and CDW Canada, both of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category (“Other”). The organizational structure of the Company’s segments is determined based on how the chief operating decision maker (“CODM”), who is the Chief Executive Officer, evaluates performance, allocates resources, and manages operations, which is primarily based on customer base. Specifically, the “Corporate” reportable segment is primarily comprised of private sector business customers with more than 250 employees in the US, the “Small Business” reportable segment is primarily comprised of private sector business customers with up to 250 employees in the US, and the “Public” reportable segment is comprised of government agencies and education and healthcare institutions in the US. The accounting policies used to determine profit and loss measures are consistent across all reportable segments and on a consolidated basis. Additionally, the CODM reviews key profit and loss measures for each reportable segment consistently based on both segment Gross profit and Operating income. Specifically, the CODM reviews Gross profit by segment to evaluate forecasting and overall profitability performance and Operating income by segment to make investment strategy and performance-based compensation decisions. Segment information for Total assets and capital expenditures is not presented given that such information is not used in measuring segment performance or allocating resources between segments.The Company has centralized logistics and headquarters functions that provide services to the segments. The logistics function includes purchasing, distribution, and fulfillment services to support the “Corporate,” “Small Business,” and “Public” segments. As a result, costs and intercompany charges associated with the logistics function are fully allocated to all of these segments based on a percent of Net sales. The centralized headquarters function provides services in areas such as accounting, information technology, marketing, legal, and coworker services. Headquarters function costs that are not allocated to the segments and are included under the heading of “Headquarters” in the tables below.

Commitments and Contingencies The Company is party to various legal proceedings that arise in the ordinary course of its business, which include commercial, intellectual property, employment, tort, and other litigation matters. The Company is also subject to audit by federal, state, international, national, provincial, and local authorities, and by various partners, group purchasing organizations, and customers, including government agencies, relating to purchases and sales under various contracts. In addition, the Company is subject to indemnification claims under various contracts. From time to time, certain customers of the Company file voluntary petitions for reorganization or liquidation under the US bankruptcy laws or similar laws of the jurisdictions for the Company’s business activities outside of the US. In such cases, certain pre-petition payments received by the Company could be considered preference items and subject to return to the bankruptcy administrator.As of December 31, 2025, the Company does not believe that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters, if any, has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, the Company’s Consolidated Financial Statements could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters.The Company received a Civil Investigative Demand, issued by Department of Justice (“DOJ”) on June 11, 2024, in connection with a False Claims Act investigation. The DOJ requested information relating to bids that the Company submitted for contracts funded in whole or in part by the Schools and Libraries Program (E-Rate Program). The Company provided information in response to the CID in November 2024. The Company is unaware of any further activity in the matter and therefore is unable to assess the probability of any particular outcome or financial impact at this time.

Debt As of December 31,Maturity DateInterest Rate20252024Credit FacilitySenior unsecured revolving loan facilityDecember 2026Variable$— $— Senior unsecured revolving loan facilityDecember 2030Variable— — Term LoanSenior unsecured term loan facilityDecember 2026Variable— 634.5 Senior unsecured term loan facilityDecember 2030Variable634.5 — Unsecured Senior NotesSenior notes due 2025May 20254.125 %— 211.1 Senior notes due 2026December 20262.670 %1,000.0 1,000.0 Senior notes due 2028April 20284.250 %600.0 600.0 Senior notes due 2028December 20283.276 %500.0 500.0 Senior notes due 2029February 20293.250 %700.0 700.0 Senior notes due 2030March 20305.100 %600.0 600.0 Senior notes due 2031December 20313.569 %1,000.0 1,000.0 Senior notes due 2034August 20345.550 %600.0 600.0 Total unsecured senior notes5,000.0 5,211.1 Receivable financing liability15.3 21.2 Other long-term obligations5.5 8.8 Unamortized debt issuance costs and discount(25.5)(32.8)Current maturities of long-term debt(1,007.5)(235.8)Total long-term debt$4,622.3 $5,607.0 As of December 31, 2025, the Company is in compliance with the covenants under its credit agreements and indentures.Senior Credit FacilityIn December 2025, the Company entered into a new credit agreement (the “Senior Credit Facility”) consisting of a five‑year $2.25 billion senior unsecured revolving loan facility (the “Revolving Loan Facility”) and a five‑year $634.5 million senior unsecured term loan facility (the “Term Loan Facility”) with a variable interest rate. The interest rate for the Senior Credit Facility is based on Secured Overnight Financing Rate (“SOFR”) plus a margin based on the Company’s senior unsecured rating.The Company can draw tranches from the Revolving Loan Facility denominated in US dollars, British pounds, Canadian dollars, or Euros. The Revolving Loan Facility is used by the Company for borrowings, issuances of letters of credit, and floorplan financing. The Revolving Loan Facility replaced the Company’s previous senior unsecured revolving loan facility and increased the borrowing capacity available to the Company by $650 million. As of December 31, 2025, the Company could have borrowed up to an additional $1.9 billion under the Revolving Loan Facility. As of December 31, 2025, the Revolving Loan Facility had $324 million reserved for the floorplan sub-facility.

Income TaxesIncome before income taxes was taxed under the following jurisdictions:Year Ended December 31,202520242023Domestic$1,261.8 $1,312.5 $1,298.1 Foreign165.6 122.9 152.1 Total$1,427.4 $1,435.4 $1,450.2 Components of Income tax expense (benefit) consist of the following:Year Ended December 31,202520242023Current:Federal$242.7 $267.4 $267.3 State70.5 72.8 69.7 Foreign46.3 31.5 41.6 Total current359.5 371.7 378.6 Deferred:Federal9.3 (13.1)(22.9)State(6.7)(0.9)(6.4)Foreign(1.3)(0.1)(3.4)Total deferred1.3 (14.1)(32.7)Income tax expense$360.8 $357.6 $345.9 The following table is a reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective income tax rate for the year ended December 31, 2025, based on the adoption of ASU 2023-09:Year Ended December 31,2025Statutory federal income tax rate$299.7 21.0 %State and local tax, net of federal income tax effect(1)50.5 3.5 Foreign tax effects10.0 0.7 Nontaxable or nondeductible items:Excess tax benefits on equity awards(3.1)(0.2)Other nontaxable or nondeductible items10.3 0.7 Total nontaxable or nondeductible items7.2 0.5 Other(6.6)(0.5)Effective income tax rate$360.8 25.3 %(1)The states that contribute the majority (greater than 50%) of the tax effect in this category include Illinois, California, New York, and New Jersey for the year-ended December 31, 2025.The following table is a reconciliation between the statutory tax rate expressed as a percentage of income before income taxes and the effective income tax rate for the years ended December 31, 2024 and 2023 prior to the adoption of ASU 2023-09.Year Ended December 31,20242023Statutory federal income tax rate$301.4 21.0 %$304.5 21.0 %State taxes, net of federal effect60.0 4.2 55.8 3.8 Excess tax benefit of equity awards(15.5)(1.1)(29.6)(2.0)Tax on foreign earnings5.8 0.4 8.5 0.6 Other5.9 0.4 6.7 0.5 Effective income tax rate$357.6 24.9 %$345.9 23.9 %The following table presents income taxes paid, net of refunds, for the year ended December 31, 2025, based on the adoption of ASU 2023-09:Year Ended December 31,2025Federal$212.4 State65.8 ForeignUK29.6 All other foreign18.2 Total$326.0 In 2025, the UK was the only jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid.The tax effect of temporary differences that give rise to net deferred income tax liabilities is presented below. December 31,20252024Deferred tax assets:Contract liabilities$45.8 $33.

LeasesThe Company has operating leases primarily for real estate, data centers, and equipment. Remaining lease terms are up to 10 years.Supplemental Consolidated Balance Sheets information related to the Company’s operating leases is as follows:December 31,LeaseBalance Sheet Presentation20252024Operating lease right-of-use assetOperating lease right-of-use assets$136.7 $120.2 Current operating lease liabilitiesAccrued expenses and other current liabilities - Other$32.9 $32.2 Long-term operating lease liabilitiesLong-term liabilities - Operating lease liabilities157.8 149.1 Total lease liabilities$190.7 $181.3 December 31,Lease term and discount rate20252024Weighted average remaining lease term (years)7.27.9Weighted average discount rate4.19 %4.26 %Operating lease cost, inclusive of variable and short-term lease cost, for the years ended December 31, 2025, 2024, and 2023 was $59 million, $60 million, and $62 million, respectively. As of December 31, 2025, aggregate future maturities of operating lease liabilities are as follows for the years ending December 31:YearsOperating Lease Liabilities2026$40.8 202736.2 202831.3 202923.8 203020.9 Thereafter71.5 Total lease payments $224.5 Less: Interest(32.7)Less: Lease Incentives(1)(1.1)Present value of lease liabilities$190.7 (1)Includes lease incentives that will be realized in 2026. Supplemental cash flow information related to operating leases is as follows:Year Ended December 31,202520242023Cash paid for amounts included in the measurement of lease liabilitiesOperating cash flows from operating leases$46.0 $44.0 $41.7 Right-of-use assets obtained in exchange for lease obligationsOperating leases$41.6 $18.7 $24.

Acquisitions Mission Cloud Services, Inc. (“Mission”)On November 27, 2024, the Company completed its acquisition of Mission through a purchase of all the issued and outstanding equity interests for a base purchase price of $330 million. During the fourth quarter of 2025, the Company finalized the purchase price and completed its identification and measurement of the assets acquired and liabilities assumed as of the date of the acquisition. There were no significant adjustments to the preliminary purchase price allocation. The Company recorded $220 million of Goodwill and $137 million of other intangible assets, which primarily related to customer relationships.

We have a dedicated team of information security professionals who leads our enterprise-wide cyber security strategy, risk management, cyber defense, software security, security monitoring, and other related functions. This team is overseen by our Chief Information Security Officer (“CISO”), who reports to our Chief Technology Officer (“CTO”). The CISO has an extensive background in their role at an enterprise level and has over 20 years of experience in the field of cybersecurity. Additionally, the processes overseen by our global information security team are integrated with our enterprise risk management program, including routine reporting on cyber risk through the different levels of the enterprise risk management governance structure and alignment on risk management frameworks and processes. Our corporate information security management program is ISO 27001 certified, and we undergo routine audits by an independent, certified accreditation body to maintain this certification. Our program is designed to guide our practices which are based on relevant industry frameworks and laws. This program consists of policies, practices, and procedures designed to manage material risks from cybersecurity threats, including training requirements, threat monitoring and detection, and threat containment and risk assessments. Additionally, we leverage third-party firms to conduct routine external and internal penetration testing to emulate the common tactics and techniques of cyber threat actors and have processes to address identified vulnerabilities, although it may take time to mitigate or manage such vulnerabilities. We also have policies and procedures to oversee and identify the cybersecurity risks associated with our use of third-party service providers for both internal use and external use. These policies and procedures include onboarding risk assessments prior to engagement and, as appropriate based on identified risk, may include cybersecurity-related contractual terms and periodic risk assessments throughout the life cycle of the third-party relationship. Lastly, we maintain cybersecurity insurance coverage that we believe is appropriate for the size and complexity of our business to cover certain costs related to cybersecurity incidents. We refine our cybersecurity program by staying informed on security threats, leveraging third-party cybersecurity firms, and investing in enhancements to our preventive and defensive capabilities.

Subsequent Events As of December 31, 2025, the Company managed and reported its operating results through three reportable segments: “Corporate,” “Small Business,” and “Public.” CDW UK and CDW Canada, both of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category (“Other”).Effective January 1, 2026, the Company realigned its customer-facing organization to better align with the evolving needs of the Company’s customers and end markets. As a result of this realignment, the Company revised its internal reporting structure, which will change the manner in which the CODM evaluates performance, allocates resources, and manages operations. As a result, the Company will have three reportable segments in the US: “Commercial,” “Government,” and “Education.” The “Commercial” segment will have three customer channels representing corporate, financial services, and healthcare customers. CDW UK and CDW Canada will remain unchanged in this new reporting structure. The Company will reflect this change in segment presentation, including recast historical results, in its periodic and annual reports beginning with the period ending March 31, 2026.