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Financial Instruments | 6 Months Ended
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Jun. 30, 2016
Investments All Other Investments [Abstract] |
Financial Instruments |
7. | Financial Instruments
Bonds CBIZ held corporate and municipal bonds with par values totaling $41.6 million and $40.8 million at June 30, 2016 and December 31, 2015, respectively. All bonds are investment grade and are classified as available-for-sale. These bonds have maturity or callable dates ranging from April 2016 through October 2021, and are included in “Funds held for clients – current” in the accompanying Consolidated Balance Sheets based on the intent and ability of the Company to sell these investments at any time under favorable conditions. The following table summarizes CBIZ’s bond activity for the six months ended June 30, 2016 and the twelve months ended December 31, 2015 (in thousands):
|  | Six Months Ended |  |  | Twelve Months Ended |
|  | June 30, 2016 |  |  | December 31, 2015 |
Fair value at beginning of period |  | $ | 43,142 |  |  | $ | 38,399 |
Purchases |  |  | 4,963 |  |  |  | 15,429 |
Redemptions |  |  | (1,490 | ) |  |  | (987 | )
Maturities |  |  | (3,257 | ) |  |  | (9,677 | )
Increase in bond premium |  |  | (205 | ) |  |  | 172 |
Fair market value adjustment |  |  | 572 |  |  |  | (194 | )
Fair value at end of period |  | $ | 43,725 |  |  | $ | 43,142 |
Interest Rate Swaps CBIZ does not purchase or hold any derivative instruments for trading or speculative purposes. We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the credit facility. Under these interest rate swap contracts, we receive cash flows from counterparties at variable rates based on LIBOR and pay the counterparties a fixed rate. See the Annual Report on Form 10-K for the year ended December 31, 2015 for further discussion on CBIZ’s interest rate swaps. The following table summarizes CBIZ’s outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at June 30, 2016 and December 31, 2015 (in thousands):
|  | June 30, 2016
|  | Notional |  |  | Fair |  |  |
|  | Amount |  |  | Value (1) |  |  | Balance Sheet Location
Interest rate swaps (2) |  | $ | 60,000 |  |  | $ | (972 | ) |  | Other non-current liabilities
|  | December 31, 2015
|  | Notional |  |  | Fair |  |  |
|  | Amount |  |  | Value (1) |  |  | Balance Sheet Location
Interest rate swaps |  | $ | 50,000 |  |  | $ | 240 |  |  | Other non-current assets
| (1) | See additional disclosures regarding fair value measurements in Note 8.
| (2) | The notional value of each interest rate swap is $10.0 million, $15.0 million, $25.0 million, and $10.0 million with maturity tenors of 2, 3, 5 and 5 years, respectively. Under the terms of the interest rate swaps, CBIZ pays interest at a fixed rate of 0.885% (2-year), 1.155% (3-year), 1.300% (5-year) and 1.120% (5-year) plus applicable margin as stated in the agreement, and receives interest that varies with the one-month LIBOR.
The following table summarizes the effects of the interest rate swap on CBIZ’s accompanying Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015 (in thousands):
|  | Gain Recognized in AOCL, net of tax |  |  | Loss Reclassified from AOCL into Expense |
|  | Three Months Ended |  |  | Three Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Interest rate swap |  | $ | (231 | ) |  | $ | 34 |  |  | $ | (110 | ) |  | $ | 55 |
|  | Six Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Interest rate swap |  | $ | (763 | ) |  | $ | 79 |  |  | $ | 215 |  |  | $ | 128 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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- References No definition available. + Details
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