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Segment Disclosures
 3 Months Ended
Mar. 31, 2015
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 table below.

 

Financial Services

 

  •   Accounting

 

  •   Tax

 

  •   Government Health Care Consulting

 

  •   Financial Advisory

 

  •   Valuation

 

  •   Litigation Support

 

  •   Risk Advisory Services

 

  •   Real Estate Advisory

Employee Services

 

  •   Employee Benefits

 

  •   Property & Casualty

 

  •   Retirement Plan Services

 

  •   Payroll Services

 

  •   Life Insurance

 

  •   Human Capital Services

 

  •   Compensation Consulting

 

  •   Executive Recruiting

 

  •   Actuarial Services

National Practices

 

  •   Managed Networking and Hardware Services

 

  •   Health Care Consulting

 

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 certain health care costs, gains or losses attributable to assets held in the Company’s deferred compensation plan, share-based compensation, 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, 2014. Upon consolidation, 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 “Corporate and Other.”

 

Segment information for the three months ended March 31, 2015 was as follows (in thousands):

 

     Three Months Ended March 31, 2015  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 143,832       $ 62,651      $ 7,383       $ —        $ 213,866   

Operating expenses

      108,618         51,528        6,601         4,117        170,864   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

   35,214      11,123      782      (4,117 )    43,002   

Corporate general & admin

   —        —        —        9,865      9,865   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

   35,214      11,123      782      (13,982 )    33,137   

Other income (expense):

Interest expense

   —        (9 )    —        (2,968 )    (2,977 ) 

Gain on sale of operations, net

   —        —        —        56      56   

Other income, net

   99      117      —        2,643      2,859   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (loss)

   99      108      —        (269 )    (62 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

 $ 35,313    $ 11,231    $ 782    $ (14,251 )  $ 33,075   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Three Months Ended March 31, 2014  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and
Other		     Total  

Revenue

    $ 141,238       $ 56,109      $ 7,379       $ —        $ 204,726   

Operating expenses

      105,762         45,735        6,634         3,807        161,938   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

   35,476      10,374      745      (3,807 )    42,788   

Corporate general & admin

   —        —        —        10,198      10,198   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

   35,476      10,374      745      (14,005 )    32,590   

Other income (expense):

Interest expense

   —        (8 )    —        (3,425 )    (3,433 ) 

Gain on sale of operations, net

   —        —        —        8      8   

Other income, net

   99      286      —        1,590      1,975   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

   99      278      —        (1,827 )    (1,450 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

 $ 35,575    $ 10,652    $ 745    $ (15,832 )  $ 31,140