v2.3.0.15
Segment Disclosures
9 Months Ended
Sep. 30, 2011
Segment Disclosures [Abstract] 
Segment Disclosures
14. Segment Disclosures

CBIZ’s business units have been aggregated into four practice groups: Financial Services, Employee Services, Medical Management Professionals (“MMP”), and National Practices. The business units have been aggregated based on the following factors: similarity of the products and services provided to clients; similarity of the regulatory environment in which they operate; and similarity of economic conditions affecting long-term performance. The business units are managed along these segment lines. A general description of services provided by practice group, is provided in the following table.

 

             

Financial Services

  

Employee Services

  

MMP

  

National Practices
       

—   Accounting

—   Tax

—   Financial Advisory

—   Valuation

—   Litigation Support

—   Internal Audit

—   Family Office Services

—   Fraud Detection

—   Real Estate Advisory

  

—   Group Health

—   Property & Casualty

—   Retirement Plan Services

—   Payroll Services

—   Life Insurance

—   Human Capital Management

—   Compensation Consulting

—   Recruiting

—   Actuarial Services

  

—   Coding and Billing

—   Accounts Receivable Management

—   Full Practice Management Services

  

—   Managed Networking and Hardware Services

—   Health Care Consulting

—   Mergers & Acquisitions

Corporate and Other. Included in Corporate and Other are operating expenses that are not directly allocated to the individual business units. These expenses are primarily comprised of gains or losses attributable to assets held in the Company’s deferred compensation plan, stock-based compensation, certain health care costs, consolidation and integration charges, certain advertising costs and other various expenses.

Accounting policies of the practice groups are the same as those described in Note 1 to the Annual Report on Form 10-K for the year ended December 31, 2010. Upon consolidation, all intercompany accounts and transactions are eliminated; thus inter-segment revenue is not included in the measure of profit or loss for the practice groups. Performance of the practice groups is evaluated on operating income excluding the costs of certain infrastructure functions (such as information systems, finance and accounting, human resources, legal and marketing), which are reported in the “Corporate and Other” segment.

 

Segment information for the three and nine months ended September 30, 2011 and 2010 was as follows (in thousands):

 

                                                 
    THREE MONTHS ENDED SEPTEMBER 30, 2011  
    Financial
Services		     Employee
Services		     MMP     National
Practices		     Corporate
and
Other		     Total  

Revenue

   $ 92,535     $ 41,859     $ 35,352     $ 7,315     $ —       $ 177,061  

Operating expenses

     82,734       35,555       30,370       6,317       (1,015 )      153,961  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     9,801       6,304       4,982       998       1,015       23,100  

Corporate general & admin

     —         —         —         —         8,175       8,175  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

     9,801       6,304       4,982       998       (7,160 )      14,925  

Other income (expense):

                                                

Interest income (expense)

     3       (7 )      —         —         (4,045 )      (4,049 ) 

Gain on sale of operations, net

     —         —         —         —         87       87  

Other (expense) income, net

     (126 )      139       11       9       (4,543 )      (4,510 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other (expense) income

     (123 )      132       11       9       (8,501 )      (8,472 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before
income tax expense

   $ 9,678     $ 6,436     $ 4,993     $ 1,007     $ (15,661 )    $ 6,453  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                 
    THREE MONTHS ENDED SEPTEMBER 30, 2010  
    Financial
Services		     Employee
Services		     MMP     National
Practices		     Corporate
and
Other		     Total  

Revenue

   $ 89,010     $ 42,417     $ 37,423     $ 7,034     $ —       $ 175,884  

Operating expenses

     78,068       35,905       32,148       6,343       4,779       157,243  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     10,942       6,512       5,275       691       (4,779 )      18,641  

Corporate general & admin

     —         —         —         —         6,877       6,877  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

  

 

10,942

  

     6,512       5,275       691       (11,656 )      11,764  

Other income (expense):

                                                

Interest expense

     (1 )      (6 )      —         —         (3,728 )      (3,735 ) 

Gain on sale of operations, net

     —         —         —         —         89       89  

Other income (expense), net

     7       101       86       (2 )      823       1,015  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other income (expense)

     6       95       86       (2 )      (2,816 )      (2,631 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before
income tax expense

   $ 10,948     $ 6,607     $ 5,361     $ 689     $ (14,472 )    $ 9,133  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

                                                 
    NINE MONTHS ENDED SEPTEMBER 30, 2011  
    Financial
Services		     Employee
Services		     MMP     National
Practices		     Corporate
and
Other		     Total  

Revenue

   $ 310,896     $ 129,491     $ 106,417     $ 23,258     $ —       $ 570,062  

Operating expenses

     255,193       108,210       93,903       19,768       6,246       483,320  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     55,703       21,281       12,514       3,490       (6,246 )      86,742  

Corporate general & admin

     —         —         —         —         24,686       24,686  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

     55,703       21,281       12,514       3,490       (30,932 )      62,056  

Other income (expense):

                                                

Interest expense

     (2 )      (19 )      —         —         (13,350 )      (13,371 ) 

Gain on sale of operations, net

     —         —         —         —         2,832       2,832  

Other (expense) income, net

     (5 )      669       159       9       (2,234 )      (1,402 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other (expense) income

     (7 )      650       159       9       (12,752 )      (11,941 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before
income tax expense

   $ 55,696     $ 21,931     $ 12,673     $ 3,499     $ (43,684 )    $ 50,115  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 
  

 

                                                 
    NINE MONTHS ENDED SEPTEMBER 30, 2010  
    Financial
Services		     Employee
Services		     MMP     National
Practices		     Corporate
and
Other		     Total  

Revenue

   $ 300,957     $ 133,033     $ 110,759     $ 20,590     $ —       $ 565,339  

Operating expenses

     247,852       109,704       99,584       19,415       10,397       486,952  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     53,105       23,329       11,175       1,175       (10,397 )      78,387  

Corporate general & admin

     —         —         —         —         22,499       22,499  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

     53,105       23,329       11,175       1,175       (32,896 )      55,888  

Other income (expense):

                                                

Interest expense

     (6 )      (18 )      —         —         (10,290 )      (10,314 ) 

Gain on sale of operations, net

     —         —         —         —         465       465  

Other income (expense), net

     137       267       257       (2 )      482       1,141  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other income (expense)

     131       249       257       (2 )      (9,343 )      (8,708 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before
income tax expense

   $ 53,236     $ 23,578     $ 11,432     $ 1,173     $ (42,239 )    $ 47,180