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Segment Disclosures
 6 Months Ended
Jun. 30, 2014
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  

•     

   Employee Benefits  

•     

   Managed Networking and

•     

   Tax  

•     

   Property & Casualty     Hardware Services

•     

   Financial Advisory  

•     

   Retirement Plan Services  

•     

   Health Care Consulting

•     

   Valuation  

•     

   Payroll Services    

•     

   Litigation Support  

•     

   Life Insurance    

•     

   Government Health Care Consulting  

•     

   Human Capital Services    

•     

   Risk Advisory Services  

•     

   Compensation Consulting    

•     

   Real Estate Advisory  

•     

   Executive Recruiting    
   

•     

   Actuarial Services    

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, 2013. 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, 2014 and 2013 was as follows (in thousands):

 

     Three Months Ended June 30, 2014  
     Financial
Services		     Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 119,082      $   54,479      $   7,324       $ —        $ 180,885   

Operating expenses

      104,591        45,936        6,685         5,095        162,307   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      14,491        8,543        639         (5,095 )      18,578   

Corporate general & admin

      —          —          —           8,306        8,306   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      14,491        8,543        639         (13,401 )      10,272   

Other income (expense):

            

Interest expense

      —          (8 )      —           (3,569 )      (3,577 ) 

Gain on sale of operations, net

      —          —          —           68        68   

Other (expense) income, net

      (58 )      89        —           3,905        3,936   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total other (expense) income

      (58 )      81        —           404        427   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 14,433      $ 8,624      $ 639       $ (12,997 )    $ 10,699   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

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

Revenue

    $ 113,527       $   51,488       $   7,214       $ —        $ 172,229   

Operating expenses

      98,721         42,868         6,875         2,627        151,091   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Gross margin

      14,806         8,620         339         (2,627 )      21,138   

Corporate general & admin

      —           —           —           7,649        7,649   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Operating income (loss)

      14,806         8,620         339         (10,276 )      13,489   

Other income (expense):

              

Interest expense

      —           —           —           (4,145 )      (4,145 ) 

Gain on sale of operations, net

      —           —           —           48        48   

Other income (expense), net

      339         74         —           102        515   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total other income (expense)

      339         74         —           (3,995 )      (3,582 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 15,145       $ 8,694       $ 339       $ (14,271 )    $ 9,907   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

     Six Months Ended June 30, 2014  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 264,502       $ 110,588      $ 14,703       $ —        $ 389,793   

Operating expenses

      214,613         91,671        13,318         8,892        328,494   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      49,889         18,917        1,385         (8,892 )      61,299   

Corporate general & admin

      —           —          —           18,565        18,565   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      49,889         18,917        1,385         (27,457 )      42,734   

Other income (expense):

             

Interest expense

      —           (16 )      —           (6,994 )      (7,010 ) 

Gain on sale of operations, net

      —           —          —           76        76   

Other income, net

      41         375        —           5,495        5,911   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      41         359        —           (1,423 )      (1,023 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 49,930       $ 19,276      $ 1,385       $ (28,880 )    $ 41,711   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

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

Revenue

    $ 254,452       $ 104,266      $ 14,700       $ —        $ 373,418   

Operating expenses

      203,603         85,490        13,825         7,562        310,480   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      50,849         18,776        875         (7,562 )      62,938   

Corporate general & admin

      —           —          —           17,633        17,633   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      50,849         18,776        875         (25,195 )      45,305   

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

    $ 51,225       $ 18,943      $ 875       $ (31,630 )    $ 39,413