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Segment Disclosures
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Disclosures

21.    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 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 practice group is provided in the table below.

 

Financial Services

   

Employee Services

   

National Practices

•  Accounting

•  Tax

•  Government Health Care Consulting

•  Financial Advisory

•  Valuation

•  Litigation Support

•  Risk Advisory Services

•  Real Estate Advisory

   

•  Employee Benefits

•  Property & Casualty

•  Retirement Plan Services

•  Payroll Services

•  Life Insurance

•  Human Capital Services

•  Compensation Consulting

•  Executive Recruiting

•  Actuarial Services

   

•   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. 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 the “Corporate and Other” segment.

CBIZ operates in the United States and Canada and revenue generated from such operations during the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

 

     Year Ended December 31,  
     2015      2014      2013  

United States

    $ 748,971       $ 717,865       $ 675,467   

Canada

      1,451         1,618         1,704   
  

 

 

     

 

 

     

 

 

  

Total Revenue

    $ 750,422       $ 719,483       $ 677,171   
  

 

 

     

 

 

     

 

 

  

There is no one customer that represents a significant portion of CBIZ’s revenue.

 

Segment information for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

 

     Year Ended December 31, 2015  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and Other		     Total  

Revenue

    $ 476,396       $ 244,493      $ 29,533       $ —      $ 750,422   

Operating expenses

      412,211         202,787        26,417         12,529        653,944   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      64,185         41,706        3,116         (12,529 )      96,478   

Corporate general & admin

      —         —        —         32,594        32,594   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      64,185         41,706        3,116         (45,123 )      63,884   

Other income (expense):

             

Interest expense

      —         (35 )      —         (8,867 )      (8,902 ) 

Gain on sale of operations, net

      —         —        —         84        84   

Other income, net

      739         1,116        4         907        2,766   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      739         1,081        4         (7,876 )      (6,052 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 64,924       $ 42,787      $ 3,120       $ (52,999 )    $ 57,832   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Year Ended December 31, 2014  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and Other		     Total  

Revenue

    $ 465,130       $ 224,898      $ 29,455       $ —      $ 719,483   

Operating expenses

      399,783         186,002        26,798         17,221        629,804   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      65,347         38,896        2,657         (17,221 )      89,679   

Corporate general & admin

      —         —        —         34,183        34,183   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      65,347         38,896        2,657         (51,404 )      55,496   

Other income (expense):

             

Interest expense

      —         (31 )      —         (13,093 )      (13,124 ) 

Gain on sale of operations, net

      —         —        —         1,303        1,303   

Other income, net

      417         557        4         5,915        6,893   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      417         526        4         (5,875 )      (4,928 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 65,764       $ 39,422      $ 2,661       $ (57,279 )    $ 50,568   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Year Ended December 31, 2013  
     Financial
Services		      Employee
Services		     National
Practices		      Corporate
and Other		     Total  

Revenue

    $ 441,787       $ 204,863      $ 30,521       $ —      $ 677,171   

Operating expenses

      380,660         168,696        27,589         16,394        593,339   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Gross margin

      61,127         36,167        2,932         (16,394 )      83,832   

Corporate general & admin

      —         —        —         34,398        34,398   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Operating income (loss)

      61,127         36,167        2,932         (50,792 )      49,434   

Other income (expense):

             

Interest expense

      —         (24 )      —         (15,350 )      (15,374 ) 

Gain on sale of operations, net

      —         —        —         79        79   

Other income, net

      491         297        1         7,028        7,817   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total other income (expense)

      491         273        1         (8,243 )      (7,478 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (loss) from continuing operations before income tax expense

    $ 61,618       $ 36,440      $ 2,933       $ (59,035 )    $ 41,956