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Segment Disclosures
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Disclosures
14. Segment Disclosures

CBIZ’s business units have been aggregated into three practice groups: Financial Services, Employee Services 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 each practice group is provided in the following table.

 

Financial Services

   

Employee Services

   

National Practices

•    Accounting

•    Tax

•    Financial Advisory

•    Valuation

•    Litigation Support

•    Government Health Care Consulting

•    Risk Advisory Services

•    Real Estate Advisory

   

•    Employee Benefits

•    Property & Casualty

•    Retirement Plan Services

•    Payroll Services

•    Life Insurance

•    Human Capital Services

•    Compensation Consulting

•    Recruiting

•    Actuarial 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 professional fees, 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, 2012. 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 those costs listed above, which are reported in the “Corporate and Other” segment.

Segment information for the three and six months ended June 30, 2013 and 2012 was as follows (in thousands):

 

     Three Months Ended June 30, 2013  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 113,808       $ 51,489      $ 7,214       $ —        $ 172,511   

Operating expenses

      99,229         42,868        6,875         2,655        151,627   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      14,579         8,621        339         (2,655 )      20,884   

Corporate general & admin

      —           —          —           7,649        7,649   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      14,579         8,621        339         (10,304 )      13,235   

Other income (expense):

             

Interest expense

      —           (1 )      —           (4,144 )      (4,145 ) 

Gain on sale of operations, net

      —           —          —           48        48   

Other income, net

      339         74        —           102        515   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      339         73        —           (3,994 )      (3,582 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 14,918       $ 8,694      $ 339       $ (14,298 )    $ 9,653   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Three Months Ended June 30, 2012  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 101,336       $ 45,609      $ 7,261       $ —        $ 154,206   

Operating expenses

      89,131         38,520        6,659         1,703        136,013   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      12,205         7,089        602         (1,703 )      18,193   

Corporate general & admin

      —           —          —           7,575        7,575   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      12,205         7,089        602         (9,278 )      10,618   

Other income (expense):

             

Interest expense

      —           (6 )      —           (3,825 )      (3,831 ) 

Gain on sale of operations, net

      —           —          —           50        50   

Other income (expense), net

      66         77        —           (1,027 )      (884 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      66         71        —           (4,802 )      (4,665 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 12,271       $ 7,160      $ 602       $ (14,080 )    $ 5,953   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
     Six Months Ended June 30, 2013  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 254,978       $ 104,267      $ 14,700       $ —        $ 373,945   

Operating expenses

      204,744         85,490        13,825         7,566        311,625   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      50,234         18,777        875         (7,566 )      62,320   

Corporate general & admin

      —           —          —           17,633        17,633   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      50,234         18,777        875         (25,199 )      44,687   

Other income (expense):

             

Interest expense

      —           (8 )      —           (8,193 )      (8,201 ) 

Gain on sale of operations, net

      —           —          —           66        66   

Other income, net

      376         175        —           1,692        2,243   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      376         167        —           (6,435 )      (5,892 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 50,610       $ 18,944      $ 875       $ (31,634 )    $ 38,795   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Six Months Ended June 30, 2012  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 233,500       $ 93,668      $ 14,594       $ —        $ 341,762   

Operating expenses

      186,364         77,968        13,381         7,866        285,579   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      47,136         15,700        1,213         (7,866 )      56,183   

Corporate general & admin

      —           —          —           18,119        18,119   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      47,136         15,700        1,213         (25,985 )      38,064   

Other income (expense):

             

Interest expense

      —           (12 )      —           (7,610 )      (7,622 ) 

Gain on sale of operations, net

      —           —          —           2,639        2,639   

Other income, net

      96         193        —           2,192        2,481   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      96         181        —           (2,779 )      (2,502 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 47,232       $ 15,881      $ 1,213       $ (28,764 )    $ 35,562