CDW Corp
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
CDW$157.00-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0001402057-24-000088
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001402057-24-000138
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 137 current paragraphs.
79 unchanged; 31 reworded; 22 added; 19 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Three months ended June 30, 2024 compared with the three months ended June 30, 2023
Current report
Gross profit increased $2 million, or 0.1%. Gross profit margin, expressed as Gross profit as a percentage of Net sales, increased 80 basis points primarily due to a higher contribution of netted down revenue, primarily software as a service, partially offset by an increased mix into notebooks/mobile devices.
Current report
Selling and administrative expenses decreased $19 million, or 2.5%, primarily due to workplace optimization costs in the second quarter of 2023 with no similar activity in the current quarter, partially offset by increased transformation and other related costs.
Current report
Operating income increased $21 million, or 5.1%, primarily driven by a decrease in headquarters function costs associated with workplace optimization costs in the second quarter of 2023, partially offset by a decrease in Operating income by the Corporate, Other and Public operating segments.
Current report
Six months ended June 30, 2024 compared with the six months ended June 30, 2023
Current report
Gross profit decreased $25 million, or 1.1%. Gross profit margin, expressed as Gross profit as a percentage of Net sales, increased 60 basis points primarily driven by a higher contribution of netted down revenue, primarily software as a service, partially offset by an increased mix into notebooks/mobile devices.
Current report
Selling and administrative expenses decreased $18 million, or 1.2%, primarily due to lower workplace optimization costs, partially offset by increased transformation and other related costs.
Current report
Operating income decreased $6 million, or 0.8%, primarily driven by a decrease in headquarters function costs associated with workplace optimization costs in the second quarter of 2023, partially offset by a decrease in Operating income by the Corporate, Other and Public operating segments.
Current report
Income tax expense increased $2 million, or 1.3%. The effective tax rate was 24.2% for both the six months ended June 30, 2024 and 2023.
Current report
Three months ended June 30, 2024 compared with the three months ended June 30, 2023
Current report
Corporate segment Operating income decreased $10 million, or 4.6%, primarily due to lower Gross profit dollars and higher bad debt expense for expected credit losses, partially offset by lower integration expenses.
Current report
Small Business segment Net sales decreased $13 million, or 3.4%, primarily due to a decline across all hardware categories and software, partially offset by services. Despite this decrease in Net sales, Gross profit dollars were higher primarily due to increased netted down revenue.
Current report
Small Business segment Operating income increased $3 million, or 7.5%, primarily due to higher Gross profit dollars.
Current report
Public segment Net sales decreased $52 million, or 2.3%, with lower Net sales across various categories, primarily driven by a decrease in netcomm products across all sales channels and collaboration hardware within the Education sales channel, partially offset by an increase in notebooks/mobile devices within the Education sales channel and services within the Government sales channel. Despite this decrease in Net sales, Gross profit dollars were higher due to increased netted down revenue.
Current report
Public segment Operating income decreased $1 million, or 0.5%, primarily due to higher payroll expenses, partially offset by higher Gross profit dollars.
Current report
Six months ended June 30, 2024 compared with the six months ended June 30, 2023
Current report
Corporate segment Operating income decreased $25 million, or 6.2%, primarily due to lower Gross profit dollars and higher bad debt expense for expected credit losses, partially offset by lower integration expenses.
Current report
Small Business segment Net sales decreased $44 million, or 5.4%, primarily due to a decline across all hardware categories. Despite this decrease in Net sales, Gross profit dollars were higher primarily due to increased netted down revenue.
Current report
Public segment Operating income decreased $3 million, or 0.8%, primarily due to higher payroll expenses, partially offset by lower bad debt expense for reduced expected credit losses, lower integration expenses and higher Gross profit dollars.
Current report
Other Operating income decreased $19 million, or 28.2%, primarily due to lower Gross profit dollars, increased transformation initiative expense and less favorable bad debt expense for expected credit losses.
Current report
(3)The change is primarily due to strategic and customer-driven stocking positions.
Current report
(5)The change is primarily due to higher vendor receivables in 2024.
Removed paragraphs (19)
Previous report
Three Months Overview
Previous report
Net sales
Previous report
Gross profit
Previous report
Gross profit decreased $26 million, or 2.4%, to $1,063 million for the three months ended March 31, 2024, compared to $1,089 million for the three months ended March 31, 2023. Gross profit margin increased 50 basis points to 21.8% for the three months ended March 31, 2024, compared to the three months ended March 31, 2023. The increase in Gross profit margin was primarily driven by a more favorable contribution of netted down revenue, primarily software as a service, partially offset by lower product margin due to a higher mix of notebooks/mobile devices.
Previous report
Selling and administrative expenses
Previous report
Selling and administrative expenses increased $1 million, or 0.2%, to $735 million for the three months ended March 31, 2024, compared to $734 million for the three months ended March 31, 2023, primarily due to workplace optimization costs, partially offset by lower performance-based compensation.
Previous report
Operating income
Previous report
Operating income decreased $27 million, or 7.7%, to $328 million for the three months ended March 31, 2024, compared to $355 million for the three months ended March 31, 2023.
Previous report
Interest expense, net
Previous report
Income tax expense
Previous report
The lower effective tax rate for the three months ended March 31, 2024 as compared to the same period of the prior year was primarily attributable to higher excess tax benefits on equity-based compensation.
Previous report
Corporate
Previous report
Corporate segment Operating income was $178 million for the three months ended March 31, 2024, a decrease of $15 million, or 7.9%, compared to $193 million for the three months ended March 31, 2023. Corporate segment Operating income decreased primarily due to lower Gross profit dollars, partially offset by lower performance-based compensation, lower amortization expense on acquired intangible assets and integration expenses.
Previous report
Small Business
Previous report
Small Business segment Net sales for the three months ended March 31, 2024 decreased $31 million, or 7.4%, compared to the three months ended March 31, 2023. This decrease in Net sales was across various hardware categories. Gross profit dollars were higher due to a higher contribution of netted down revenue.
Previous report
Public
Previous report
Public segment Operating income was $126 million for the three months ended March 31, 2024, which was a decrease of $2 million, or 1.2%, compared to $128 million for the three months ended March 31, 2023. Public segment Operating income remained relatively consistent primarily due to lower Gross profit dollars, partially offset by lower bad debt expense for reduced expected credit losses, amortization expense on acquired intangible assets and integration expenses.
Previous report
Other
Previous report
Net sales change on a constant currency basis
Reworded paragraphs (31)
Previous wording
We are vendor, technology and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual and cloud-based environments through approximately 10,900 customer-facing coworkers, including sellers, highly-skilled technology specialists and advanced service delivery engineers. We are a leading sales channel partner for many original equipment manufacturers, software publishers and cloud providers (collectively, our “vendor partners”), whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise and extensive customer access.
Current wording
We are vendor, technology and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual and cloud-based environments through approximately 11,000 customer-facing coworkers, including sellers, highly-skilled technology specialists and advanced service delivery engineers. We are a leading sales channel partner for many original equipment manufacturers, software publishers and cloud providers (collectively, our “vendor partners”), whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise and extensive customer access.
Previous wording
•Customers continue to balance priorities to focus on solutions that lead to business optimization, cost management and security risk management and in many cases are reassessing the timing of IT refresh cycles and pausing or deferring their IT spend. We have orchestrated solutions by leveraging security, software and hybrid and cloud offerings to help customers achieve their objectives.
Current wording
•Customers are evaluating the complex technology landscape in order to balance priorities and focus on solutions that lead to business optimization, cost management and security risk management, resulting in a more measured approach to their IT spending. We have orchestrated solutions by leveraging security, software and hybrid and cloud offerings to help customers achieve their objectives.
Previous wording
•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely. These trends are driving customer adoption of solutions such as cloud, generative artificial intelligence, software defined architectures and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” offerings, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve as customers prioritize spend that will produce the most important outcomes for their business.
Current wording
•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely. These trends are driving customer adoption of cloud, generative artificial intelligence, software defined architectures and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” offerings, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve as customers prioritize spend that will produce the most important outcomes for their business.
Previous wording
We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures include both US GAAP and Non-GAAP measures. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, average daily sales, change in Net sales on a constant currency basis, Adjusted free cash flow, Cash and cash equivalents, cash conversion cycle and debt levels including available credit. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.
Current wording
We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures include both US GAAP, the accounting principles generally accepted in the United States of America, and Non-GAAP, which excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with US GAAP. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, Average daily sales, Net cash provided by operating activities, Adjusted free cash flow, Cash conversion cycle, and Net debt. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.
Previous wording
The results of certain key business metrics are as follows:
Current wording
The results of certain key business metrics for the comparative periods are as follows:
Previous wording
(1) Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended March 31, 2024 and 2023.
Current wording
(1) Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended June 30, 2024 and 2023. There were 128 selling days for both the six months ended June 30, 2024 and 2023.
Previous wording
(3) Defined as days of sales outstanding in Accounts receivable and certain receivables due from vendors plus days of supply in Merchandise inventory minus days of purchases outstanding in Accounts payable and Accounts payable-inventory financing, based on a rolling three-month average.
Current wording
(2) Defined as days of sales outstanding in Accounts receivable and certain receivables due from vendors plus days of supply in Merchandise inventory minus days of purchases outstanding in Accounts payable-trade and Accounts payable-inventory financing, based on a rolling three-month average.
Previous wording
Results of operations, including as a percentage of Net sales, Gross profit margin and Operating income margin, for the three months ended March 31, 2024 and 2023 are as follows:
Current wording
Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three and six months ended June 30, 2024 and 2023 are below. For additional information on Net sales and Operating income by segment, see the “Segment Results of Operations.”
Previous wording
Total Net sales decreased $230 million, or 4.5%, to $4,873 million for the three months ended March 31, 2024, compared to $5,103 million for the three months ended March 31, 2023. The decline in Net sales occurred across all operating segments. Continued economic uncertainty has led customers to be cautious and measured in their approach to technology spending, resulting in a reduction or delay in their spend. For additional information, see the “Segment Results of Operations” below.
Current wording
Net sales decreased $203 million, or 3.6%, with lower Net sales across all operating segments. Continued economic uncertainty and the complex technology landscape has led customers to be cautious and measured in their approach to technology spending, leading to a decline in Net sales.
Previous wording
Income tax expense was $61 million and $66 million for the three months ended March 31, 2024 and 2023, respectively. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 21.9% and 22.3% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Income tax expense increased $8 million, or 8.6%. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 26.0% and 25.7% for the three months ended June 30, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to lower excess tax benefits on equity-based compensation.
Previous wording
Interest expense, net includes interest expense and interest income. Interest expense, net, decreased $6 million, or 11.1%, to $51 million for the three months ended March 31, 2024, compared to $58 million for the three months ended March 31, 2023. The decrease was primarily due to higher interest income earned on cash balances and lower debt levels, partially offset by a higher variable interest rate on the senior unsecured term loan.
Current wording
Interest expense, net, decreased $12 million, or 10.6%, primarily due to increased interest income earned on higher average cash balances and decreased interest expense on lower debt levels, partially offset by a higher variable interest rate on the senior unsecured term loan.
Previous wording
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 are as follows:
Current wording
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 by segment are as follows:
Previous wording
(1)There were 64 selling days for both the three months ended March 31, 2024 and 2023. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2024 and 2023. There were 128 selling days for both the six months ended June 30, 2024 and 2023. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
Operating income by segment, in dollars and as a percentage of total Net sales, and the year-over-year percentage change are as follows:
Current wording
Operating income by segment, in dollars and as a percentage of Net sales by segment, and the year-over-year percentage change are as follows:
Previous wording
(1)Segment operating income includes the segment’s direct operating income, allocations for certain Headquarters’ costs, allocations for income and expenses from logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors.
Current wording
(1)Segment operating income includes the segment’s direct operating income, allocations for certain headquarters function costs, allocations for income and expenses from logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors.
Previous wording
Corporate segment Net sales for the three months ended March 31, 2024 decreased $68 million, or 3.1%, compared to the three months ended March 31, 2023. This decrease in Net sales was primarily due to a decrease in sales of netcomm products, partially offset by an increase in sales of notebooks/mobile devices. As a result, Gross profit dollars also decreased although partially offset by a higher contribution of netted down revenue.
Current wording
Corporate segment Net sales decreased $50 million, or 2.2%, primarily due to a decrease in netcomm products, partially offset by an increase in notebooks/mobile devices. As a result, Gross profit dollars also decreased although partially offset by increased netted down revenue.
Previous wording
Other Operating income was $25 million for the three months ended March 31, 2024, which was a decrease of $11 million or 30.7%, compared to $37 million for the three months ended March 31, 2023. Other Operating income decreased primarily due to lower Gross profit dollars related to the UK operations, less favorable expected credit losses and increased transformation initiative expense, partially offset by lower performance-based compensation.
Current wording
Other Operating income decreased $8 million, or 25.3%, primarily due to lower Gross profit dollars and increased transformation initiative expense related to the UK operations.
Previous wording
Small Business segment Operating income was $47 million for the three months ended March 31, 2024, an increase of $5 million, or 12.0%, compared to $42 million for the three months ended March 31, 2023. Small Business segment Operating income increased primarily due to higher Gross profit dollars and lower bad debt expense for reduced expected credit losses.
Current wording
Small Business segment Operating income increased $8 million, or 9.8%, primarily due to higher Gross profit dollars and lower bad debt expense for reduced expected credit losses.
Previous wording
Public segment Net sales for the three months ended March 31, 2024 decreased $88 million, or 4.9%, compared to the three months ended March 31, 2023. This decrease in Net sales was primarily due to a decrease in netcomm products across all sales channels and a decrease in collaboration within Education, partially offset by an increase in notebooks/mobile devices across all sales channels. As a result, Gross profit dollars also decreased although partially offset by a higher contribution of netted down revenue.
Current wording
Public segment Net sales decreased $140 million, or 3.4%, primarily due to a decrease in netcomm products across all sales channels and collaboration hardware within the Education sales channel, partially offset by increase in notebooks/mobile devices across all sales channels. Despite this decrease in Net sales, Gross profit dollars were higher due to increased netted down revenue.
Previous wording
Net sales in Other, which is comprised of results from our UK and Canadian operations, for the three months ended March 31, 2024 decreased $44 million, or 6.5%, compared to the three months ended March 31, 2023. This decrease in Net sales was driven by lower software sales within the UK operations, resulting in lower Gross profit dollars.
Current wording
Net sales in Other, which is comprised of results from our UK and Canadian operations, decreased $132 million, or 9.7%, primarily due to a decrease in software related to the UK operations and a decrease across various hardware categories within UK and Canadian operations, resulting in lower Gross profit dollars.
Previous wording
Non-GAAP operating income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and the associated payroll taxes, acquisition and integration expenses, transformation initiatives and workplace optimization. Non-GAAP operating income margin is defined as Non-GAAP operating income as a percentage of Net sales. Non-GAAP net income and Non-GAAP net income per diluted share excludes, among other things, charges related to acquisition-related intangible asset amortization, equity-based compensation, acquisition and integration expenses, transformation initiatives, workplace optimization and the associated tax effects of each. Net sales on a constant currency basis is defined as Net sales excluding the impact of foreign currency translation on Net sales. Free cash flow is defined as Net cash provided by operating activities less capital expenditures. Adjusted free cash flow is defined as Free cash flow adjusted to include certain cash flows from financing activities incurred in the normal course of operations or as capital expenditures.
Current wording
Non-GAAP operating income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and the associated payroll taxes, acquisition and integration expenses, transformation initiatives and workplace optimization. Non-GAAP operating income margin is defined as Non-GAAP operating income as a percentage of Net sales. Non-GAAP net income and Non-GAAP net income per diluted share exclude, among other things, charges related to acquisition-related intangible asset amortization, equity-based compensation, acquisition and integration expenses, transformation initiatives, workplace optimization and the associated tax effects of each. Net sales on a constant currency basis is defined as Net sales excluding the impact of foreign currency translation on Net sales. Free cash flow is defined as Net cash provided by operating activities less capital expenditures. Adjusted free cash flow is defined as Free cash flow adjusted to include certain cash flows from financing activities incurred in the normal course of operations or as capital expenditures.
Previous wording
We have included reconciliations of our non-GAAP financial measures for the three months ended March 31, 2024 and 2023 below.
Current wording
We have included reconciliations of our non-GAAP financial measures to the most comparable US GAAP financial measures for the three and six months ended June 30, 2024 and 2023 below.
Previous wording
(1)There were 64 selling days for both the three months ended March 31, 2024 and 2023. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2024 and 2023. There were 128 selling days for both the six months ended June 30, 2024 and 2023. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of March 31, 2024, we had $1.3 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next year; however, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions and working capital management.
Current wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of June 30, 2024, we had $1.2 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next year; however, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions and working capital management.
Previous wording
During the three months ended March 31, 2024, we repurchased 0.2 million shares of our common stock for $52 million under the previously announced share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Current wording
During the six months ended June 30, 2024, we repurchased 1.1 million shares of our common stock for $254 million under the previously announced share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Previous wording
(2)The change is primarily due to lower sales activity in 2024, partially offset by collection performance.
Current wording
(2)The change is primarily due to timing of collections, including multi-year transactions, partially offset by lower sales activity.
Previous wording
(3)The change is primarily due to lower sales activity in 2024, partially offset by timing of payments.
Current wording
(4)The change is primarily due to timing of payments, partially offset by lower sales activity.
Previous wording
The cash conversion cycle decreased to 16 days at March 31, 2024, compared to 18 days at March 31, 2023. The overall decrease was primarily driven by a reduction in DIO resulting from lower stocking positions. In addition, netted down revenue has an unfavorable impact to DSO and a favorable impact to DPO as the corresponding receivables and payables reflect the gross amounts due from customers and due to vendors while the corresponding sales and cost of sales are reflected on a net basis within Net sales. The change in DPO was further impacted by the timing of payments.
Current wording
The cash conversion cycle increased to 17 days at June 30, 2024, compared to 14 days at June 30, 2023. The overall increase was primarily driven by an increase in DSO due to timing of collections, including multi-year transactions. In addition, netted down revenue has an unfavorable impact to DSO and a favorable impact to DPO as the corresponding receivables and payables reflect the gross amounts due from customers and due to vendors while the corresponding sales and cost of sales are reflected on a net basis within Net sales.
Previous wording
Net cash used in investing activities decreased $25 million for the three months ended March 31, 2024 compared to March 31, 2023. This decrease was primarily due to higher acquisition activity in 2023.
Current wording
Net cash used in investing activities decreased $86 million for the six months ended June 30, 2024 compared to June 30, 2023. This decrease was primarily due to cash flows for acquisitions in 2023.
Previous wording
Net cash used in financing activities decreased $156 million for the three months ended March 31, 2024 compared to March 31, 2023. This decrease was primarily driven by lower share repurchases and lower repayments on long term debt in 2024, partially offset by decreased activity associated with inventory financing arrangements. For additional information regarding the inventory financing agreements and debt activities, see Note 4 (Inventory Financing Agreements) and Note 6 (Debt) to the accompanying Consolidated Financial Statements.
Current wording
Net cash used in financing activities decreased $110 million for the six months ended June 30, 2024 compared to June 30, 2023. This decrease was primarily driven by lower share repurchases and lower repayments on debt, partially offset by decreased activity associated with inventory financing arrangements. For additional information regarding the inventory financing agreements and debt activities, see Note 4 (Inventory Financing Agreements) and Note 6 (Debt) to the accompanying Consolidated Financial Statements.
Previous wording
The following tables set forth Balance Sheet information as of March 31, 2024 and December 31, 2023, and Statement of Operations information for the three months ended March 31, 2024 and for the year ended December 31, 2023. The financial information includes the accounts of the Issuers and the accounts of the Guarantors (the “Obligor Group”). The financial information of the Obligor Group is presented on a combined basis and the intercompany balances and transactions between the Obligor Group have been eliminated.
Current wording
The following tables set forth Balance Sheet information as of June 30, 2024 and December 31, 2023, and Statement of Operations information for the six months ended June 30, 2024 and for the year ended December 31, 2023. The financial information includes the accounts of the Issuers and the accounts of the Guarantors (the “Obligor Group”). The financial information of the Obligor Group is presented on a combined basis and the intercompany balances and transactions between the Obligor Group have been eliminated.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Interest expense, net includes interest expense and interest income. Interest expense, net decreased $6 million, or 10.1%, primarily due to increased interest income earned on higher average cash balances and decreased interest expense on lower debt levels.
Current report — wording carried from elsewhere
Net sales decreased $433 million, or 4.0%, with lower Net sales across all operating segments. Continued economic uncertainty and the complex technology landscape has led customers to be cautious and measured in their approach to technology spending, leading to a decline in Net sales.
Current report — wording carried from elsewhere
Net sales in Other, which is comprised of results from our UK and Canadian operations, decreased $88 million, or 12.7%, primarily due to a decrease across various hardware categories and software related to UK operations, resulting in a decrease in Gross profit dollars.
Current report — wording carried from elsewhere
Corporate segment Net sales decreased $118 million, or 2.6%, primarily due to a decrease in netcomm products, partially offset by an increase in notebooks/mobile devices. As a result, Gross profit dollars also decreased although partially offset by increased netted down revenue.
Current report — wording carried from elsewhere
Net sales on a constant currency basis