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Debt and Financing Arrangements | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Debt and Financing Arrangements |
5. | Debt and Financing Arrangements
At June 30, 2016, CBIZ’s primary financing arrangement was the $400.0 million unsecured credit facility discussed below, which provides the Company with the capital necessary to meet its working capital needs as well as the flexibility to continue with its strategic initiatives, including business acquisitions and share repurchases. In addition to the discussion below, refer to the Annual Report on Form 10-K for the year ended December 31, 2015 for additional details of CBIZ’s debt and financing arrangements. Bank Debt CBIZ has a $400.0 million unsecured credit facility with Bank of America as agent for a group of eight participating banks that matures in July 2019. The balance outstanding under the credit facility was $235.5 million and $205.8 million at June 30, 2016 and December 31, 2015, respectively. Rates for the six months ended June 30, 2016 and 2015 were as follows:
|  | Six Months Ended |
|  | June 30, |
|  | 2016 |  |  | 2015 |
Weighted average rates |  |  | 2.38% |  |  |  | 2.17% |
Range of effective rates |  | 1.82% - 3.50% |  |  | 1.88% - 3.25% |
CBIZ had approximately $84.5 million of available funds under the credit facility at June 30, 2016, net of outstanding letters of credit and performance guarantees of $2.3 million. The credit facility provides CBIZ with operating flexibility and funding to support seasonal working capital needs and other strategic initiatives such as acquisitions and share repurchases. As of June 30, 2016, CBIZ was in compliance with its debt covenants. 3.125% Convertible Senior Subordinated Notes (the “2006 Notes”) During the second quarter of 2016, CBIZ redeemed the remaining 2006 Notes for $750 thousand in cash plus accrued interest under an optional early redemption provision. Interest Expense During the three and six months ended June 30, 2016 and 2015, CBIZ recognized interest expense as follows (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Credit facility (1) |  | $ | 1,731 |  |  | $ | 1,165 |  |  | $ | 3,251 |  |  | $ | 2,216 |
2010 Notes (2) |  |  | — |  |  |  | 1,677 |  |  |  | — |  |  |  | 3,597 |
2006 Notes |  |  | 2 |  |  |  | 6 |  |  |  | 8 |  |  |  | 12 |
Total interest expense |  | $ | 1,733 |  |  | $ | 2,848 |  |  | $ | 3,259 |  |  | $ | 5,825 |
| (1) | Components of interest expense related to the credit facility include amortization of deferred financing costs, commitment fees and line of credit fees.
| (2) | Components of interest expense related to the 4.875% Convertible Senior Subordinated Notes (the “2010 Notes”) include the contractual coupon interest, amortization of discount and amortization of deferred financing costs.
The 2010 Notes matured on October 1, 2015. As previously disclosed, holders received $1,000 in cash for each $1,000 principal amount of 2010 Notes along with a premium of the conversion value over par value. The $71.8 million conversion value of the 2010 Notes was determined by a cash averaging period that began on October 5, 2015 and ended on October 30, 2015. Cash payments were settled on November 4, 2015 with funds available under the credit facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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