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Discontinued Operations and Divestitures
 9 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Divestitures

13. Discontinued Operations and Divestitures

CBIZ will divest (through sale or closure) business operations that do not contribute to the Company’s long-term objectives for growth or that are not complementary to its target service offerings and markets. Divestitures are classified as discontinued operations provided they meet the criteria as provided in FASB ASC 205 “Presentation of Financial Statements – Discontinued Operations – Other Presentation Matters.”

Discontinued Operations

Revenue and results from operations of discontinued operations are separately reported as “(Loss) income from operations of discontinued operations, net of tax” in the consolidated statements of comprehensive income. For the nine months ended September 30, 2014, the loss on operations of discontinued operations represents the results from the Company’s property tax business located in Leawood, Kansas that was discontinued in December 2013 and subsequently sold on June 1, 2014. For the nine months ended September 30, 2013, the income from operations of discontinued operations relates to the results of CBIZ’s Medical Management Professionals’ practice group (“MMP”) that was discontinued and sold in August 2013, as well as the results of the Leawood, Kansas property tax business.

Revenue and results from operations of discontinued operations for the three and nine months ended September 30, 2014 and 2013 were as follows (in thousands):

 

     Three Months
Ended September 30,		      Nine Months
Ended September 30,		  
     2014     2013      2014     2013  

Revenue

    $ —        $ 23,610       $ 298      $ 91,974   
  

 

 

    

 

 

     

 

 

    

 

 

  

(Loss) income from discontinued operations before income tax

    $ (104 )    $ 1,080       $ (642 )    $ 5,602   

Income tax expense (benefit)

      99        511         (114 )      2,252   
  

 

 

    

 

 

     

 

 

    

 

 

  

(Loss) income from discontinued operations, net of tax

    $ (203 )    $ 569       $ (528 )    $ 3,350   
  

 

 

    

 

 

     

 

 

    

 

 

  

Gains from the sale of discontinued operations are recorded as “Gain on disposal of discontinued operations, net of tax”, in the accompanying consolidated statements of comprehensive income. In addition, proceeds that are contingent upon a divested operation’s actual future performance are recorded as “Gain on disposal of discontinued operations, net of tax” in the period they are earned. During the nine months ended September 30, 2014, CBIZ sold its property tax business located in Leawood, Kansas and recorded a gain, which was partially offset by a loss that was recorded representing the finalization of the working capital adjustment related to the August 2013 sale of MMP. The gain recorded in the nine months ended September 30, 2013 related to contingent proceeds on sales of discontinued operations that occurred in prior periods. For the nine months ended September 30, 2013, the gain of disposal of discontinued operations was primarily the result of the sale of MMP.

 

For the three and nine months ended September 30, 2014 and 2013, gains on the disposal of discontinued operations were as follows (in thousands):

 

     Three Months
Ended September 30,		      Nine Months
Ended September 30,		  
     2014      2013      2014      2013  

Gain on disposal of discontinued operations, before income tax

    $ 1,010       $ 107,506       $ 125       $ 107,543   

Income tax expense

      403         51,191         19         49,300   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gain on disposal of discontinued operations, net of tax

    $ 607       $ 56,315       $ 106       $ 58,243   
  

 

 

     

 

 

     

 

 

     

 

 

  

At September 30, 2014 and December 31, 2013, the assets and liabilities of businesses classified as discontinued operations were reported separately in the accompanying consolidated financial statements and consisted of the following (in thousands):

 

     September 30,      December 31,  
     2014      2013  

Assets:

      

Accounts receivable, net

    $ 876       $ 1,068   

Other current assets

      —           24   
  

 

 

     

 

 

  

Assets of discontinued operations

    $ 876       $ 1,092   
  

 

 

     

 

 

  

Liabilities:

      

Accounts payable

    $ 32       $ 72   

Accrued personnel

      71         161   

Accrued expenses

      136         137   
  

 

 

     

 

 

  

Liabilities of discontinued operations

    $ 239       $ 370   
  

 

 

     

 

 

  

Divestitures

Gains and losses from divested operations and assets that do not qualify for treatment as discontinued operations are recorded as “Gain on sale of operations, net” in the consolidated statements of comprehensive income.