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Discontinued Operations and Divestitures
 3 Months Ended
Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Divestitures
13. Discontinued Operations and Divestitures

CBIZ has divested, 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 Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of an Entity (Topic 360)” which was effective January 1, 2015. Discontinued operations through December 31, 2014 followed the criteria in FASB Accounting Standards Codification 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 from operations of discontinued operations, net of tax” in the accompanying Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2015, the loss on operations of discontinued operations represents the results from the operations of two small businesses under the Financial Services segment that were discontinued in December 2014. For the three months ended March, 31 2014, the loss on operations of discontinued operations represents the results from operations of the two businesses mentioned above as well as the Company’s property tax business located in Leawood, Kansas that was discontinued in December 2013 and subsequently sold on June 1, 2014.

Revenue and results from operations of discontinued operations for the three months ended March 31, 2015 and 2014 were as follows (in thousands):

 

     Three Months Ended
March 31,		  
     2015      2014  

Revenue

    $ 3,516       $ 4,145   
  

 

 

     

 

 

  

Loss from operations of discontinued operations, before income tax benefit

 $ (516 )  $ (536 ) 

Income tax benefit

   (181 )    (273 ) 
  

 

 

     

 

 

  

Loss from operations of discontinued operations, net of tax

 $ (335 )  $ (263 ) 
  

 

 

     

 

 

  

Losses from the sale of discontinued operations are recorded as “Loss 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 “Loss on disposal of discontinued operations, net of tax” in the period they are earned. During the three months ended March 31, 2015, CBIZ did not sell any operations.

During the first quarters of 2015 and 2014, CBIZ did not discontinue the operations of any of its businesses and did not sell any operations. For the three months ended March 31, 2014, the loss recorded in disposal of discontinued operations represented the finalization of the working capital adjustment related to the sale of CBIZ’s Medical Management Professionals’ practice group that was sold in August of 2013.

For the three months ended March 31, 2015 and 2014, losses on the disposal of discontinued operations were as follows (in thousands):

 

     Three Months Ended
March 31,		  
     2015      2014  

Loss on disposal of discontinued operations, before income tax benefit

    $ —         $ (874 ) 

Income tax benefit

      —           (400 ) 
  

 

 

     

 

 

  

Loss on disposal of discontinued operations, net of tax

 $ —      $ (474 ) 
  

 

 

     

 

 

  

 

At March 31, 2015 and December 31, 2014, 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):

 

     March 31,
2015		      December 31,
2014		  

Assets:

      

Accounts receivable, net

    $ 5,222       $ 4,699   

Other assets

      526         530   
  

 

 

     

 

 

  

Assets of discontinued operations

 $ 5,748    $ 5,229   
  

 

 

     

 

 

  

Liabilities:

Accounts payable

 $ 314    $ 388   

Accrued personnel

   498      591   

Accrued expenses

   319      324   
  

 

 

     

 

 

  

Liabilities of discontinued operations

 $ 1,131    $ 1,303   
  

 

 

     

 

 

  

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 accompanying Consolidated Statements of Comprehensive Income.