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Segment Disclosures
 6 Months Ended
Jun. 30, 2016
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

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 to the Annual Report on Form 10-K for the year ended December 31, 2015. 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 June 30, 2016 and 2015 was as follows (in thousands):

 

 

 

Three Months Ended June 30, 2016

 

 

 

Financial

Services

 

 

Employee

Services

 

 

National

Practices

 

 

Corporate

and

Other

 

 

Total

 

Revenue

 

$

122,856

 

 

$

66,484

 

 

$

7,675

 

 

$

—

 

 

$

197,015

 

Operating expenses

 

 

106,987

 

 

 

56,344

 

 

 

7,005

 

 

 

3,660

 

 

 

173,996

 

Gross margin

 

 

15,869

 

 

 

10,140

 

 

 

670

 

 

 

(3,660

)

 

 

23,019

 

Corporate general & admin

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,346

 

 

 

8,346

 

Operating income (loss)

 

 

15,869

 

 

 

10,140

 

 

 

670

 

 

 

(12,006

)

 

 

14,673

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

—

 

 

 

(10

)

 

 

—

 

 

 

(1,723

)

 

 

(1,733

)

Gain on sale of operations, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50

 

 

 

50

 

Other (expense) income, net

 

 

(27

)

 

 

84

 

 

 

1

 

 

 

645

 

 

 

703

 

Total other (expense) income

 

 

(27

)

 

 

74

 

 

 

1

 

 

 

(1,028

)

 

 

(980

)

Income (loss) from continuing operations before

   income tax expense

 

$

15,842

 

 

$

10,214

 

 

$

671

 

 

$

(13,034

)

 

$

13,693

 

 

 

 

Three Months Ended June 30, 2015

 

 

 

Financial

Services

 

 

Employee

Services

 

 

National

Practices

 

 

Corporate

and

Other

 

 

Total

 

Revenue

 

$

116,671

 

 

$

61,024

 

 

$

7,347

 

 

$

—

 

 

$

185,042

 

Operating expenses

 

 

102,345

 

 

 

51,242

 

 

 

6,649

 

 

 

2,881

 

 

 

163,117

 

Gross margin

 

 

14,326

 

 

 

9,782

 

 

 

698

 

 

 

(2,881

)

 

 

21,925

 

Corporate general & admin

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,615

 

 

 

6,615

 

Operating income (loss)

 

 

14,326

 

 

 

9,782

 

 

 

698

 

 

 

(9,496

)

 

 

15,310

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

—

 

 

 

(11

)

 

 

—

 

 

 

(2,837

)

 

 

(2,848

)

Gain on sale of operations, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

45

 

 

 

45

 

Other income (expense), net

 

 

8

 

 

 

82

 

 

 

1

 

 

 

(1,217

)

 

 

(1,126

)

Total other income (expense)

 

 

8

 

 

 

71

 

 

 

1

 

 

 

(4,009

)

 

 

(3,929

)

Income (loss) from continuing operations before

   income tax expense

 

$

14,334

 

 

$

9,853

 

 

$

699

 

 

$

(13,505

)

 

$

11,381

 

 

Segment information for the nine months ended June 30, 2016 and 2015 was as follows (in thousands):

 

 

 

Six Months Ended June 30, 2016

 

 

 

Financial

Services

 

 

Employee

Services

 

 

National

Practices

 

 

Corporate

and

Other

 

 

Total

 

Revenue

 

$

275,063

 

 

$

130,811

 

 

$

15,379

 

 

$

—

 

 

$

421,253

 

Operating expenses

 

 

220,484

 

 

 

110,024

 

 

 

13,882

 

 

 

7,723

 

 

 

352,113

 

Gross margin

 

 

54,579

 

 

 

20,787

 

 

 

1,497

 

 

 

(7,723

)

 

 

69,140

 

Corporate general & admin

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,591

 

 

 

18,591

 

Operating income (loss)

 

 

54,579

 

 

 

20,787

 

 

 

1,497

 

 

 

(26,314

)

 

 

50,549

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

—

 

 

 

(20

)

 

 

—

 

 

 

(3,239

)

 

 

(3,259

)

Gain on sale of operations, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

151

 

 

 

151

 

Other income, net

 

 

227

 

 

 

158

 

 

 

1

 

 

 

2,464

 

 

 

2,850

 

Total other income (expense)

 

 

227

 

 

 

138

 

 

 

1

 

 

 

(624

)

 

 

(258

)

Income (loss) from continuing operations before

   income tax expense

 

$

54,806

 

 

$

20,925

 

 

$

1,498

 

 

$

(26,938

)

 

$

50,291

 

 

 

 

Six Months Ended June 30, 2015

 

 

 

Financial

Services

 

 

Employee

Services

 

 

National

Practices

 

 

Corporate

and

Other

 

 

Total

 

Revenue

 

$

260,503

 

 

$

123,675

 

 

$

14,730

 

 

$

—

 

 

$

398,908

 

Operating expenses

 

 

210,963

 

 

 

102,770

 

 

 

13,250

 

 

 

6,998

 

 

 

333,981

 

Gross margin

 

 

49,540

 

 

 

20,905

 

 

 

1,480

 

 

 

(6,998

)

 

 

64,927

 

Corporate general & admin

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,480

 

 

 

16,480

 

Operating income (loss)

 

 

49,540

 

 

 

20,905

 

 

 

1,480

 

 

 

(23,478

)

 

 

48,447

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

—

 

 

 

(20

)

 

 

—

 

 

 

(5,805

)

 

 

(5,825

)

Gain on sale of operations, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

101

 

 

 

101

 

Other income, net

 

 

107

 

 

 

199

 

 

 

1

 

 

 

1,426

 

 

 

1,733

 

Total other income (expense)

 

 

107

 

 

 

179

 

 

 

1

 

 

 

(4,278

)

 

 

(3,991

)

Income (loss) from continuing operations before

   income tax expense

 

$

49,647

 

 

$

21,084

 

 

$

1,481

 

 

$

(27,756

)

 

$

44,456