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Debt and Financing Arrangements | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt and Financing Arrangements | Note 8. Debt and Financing Arrangements At December 31, 2016, our primary financing arrangement was the $400 million credit facility which provides us with the capital necessary to meet our working capital needs as well as the flexibility to continue with our strategic initiatives, including business acquisitions and share repurchases. A previous financing arrangement, the 4.875% 2010 Convertible Senior Subordinated Notes (the “2010 Notes”), matured on October 1, 2015, as is discussed more fully below. Bank Debt We have a $400 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 $191.4 million and $205.8 million at December 31, 2016 and December 31, 2015, respectively. Rates for the years ended December 31, 2016 and 2015 were as follows (includes bank debt and interest rate swaps):
|  | 2016 |  |  | 2015 |
Weighted average rates |  |  | 2.43% |  |  |  | 2.02% |
Range of effective rates |  | 1.82% - 3.75% |  |  | 1.65% - 3.50% |
We have approximately $137.5 million of available funds under the credit facility at December 31, 2016, based on the terms of the commitment.
| • | Available funds under the credit facility are based on a multiple of earnings before interest, taxes, depreciation and amortization as defined in the credit facility, and are reduced by letters of credit, performance guarantees, other indebtedness and outstanding borrowings under the credit facility.
| • | Under the credit facility, loans are charged an interest rate consisting of a base rate or Eurodollar rate plus an applicable margin, letters of credit are charged based on the same applicable margin, and a commitment fee is charged on the unused portion of the credit facility.
The credit facility provides us operating flexibility and funding to support seasonal working capital needs and other strategic initiatives such as acquisitions and share repurchases. Debt Covenant Compliance The credit facility is subject to certain financial covenants that may limit our ability to borrow up to the total commitment amount. Covenants require us to meet certain requirements with respect to (i) a total leverage ratio and (ii) minimum fixed charge coverage ratio. As of December 31, 2016, we were in compliance with these debt covenants. The credit facility also places restrictions on our ability to create liens or other encumbrances, to make certain payments, investments, loans and guarantees and to sell or otherwise dispose of a substantial portion of assets, or to merge or consolidate with an unaffiliated entity. According to the terms of the credit facility, we are not permitted to declare or make any dividend payments, other than dividend payments made by one of our wholly-owned subsidiaries to us. The credit facility contains a provision that, in the event of a defined change in control, the credit facility may be terminated. Amendments to Credit Agreement In 2015, we entered into two amendments to the Credit Agreement that governs the credit facility, dated as of July 28, 2014, by and among the Company and Bank of America, N.A., as administrative agent and bank, and other participating banks, to (i) remove certain events from the definition of Change of Control contained therein and (ii) to incorporate swap obligations in the Agreement. These amendments had no impact on the terms of the credit facility (other than as described above), the accompanying Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows. 2010 Notes As of December 31, 2016, no amounts related to the 2010 Notes were outstanding. The $48.4 million outstanding principal amount of the 2010 Notes matured on October 1, 2015. Holders received $1,000 in cash for each $1,000 principal amount of 2010 Notes along with the 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. Prior to the October 1, 2015 maturity date:
| • | We issued approximately 5.1 million shares of CBIZ common stock and paid cash consideration in exchange for $49.3 million of the Company’s 2010 Notes, in two privately negotiated transactions during the second quarter of 2015. Notes repurchased are deemed to be extinguished.
| • | During the nine months ended September 30, 2014, we issued 1.5 million shares of CBIZ common stock plus cash consideration in privately negotiated transactions in exchange for retiring $32.4 million of its 2010 Notes.
| • | We recorded non-operating charges of approximately $0.8 million and $1.5 million related to the privately negotiated transactions which are included in “Other income, net” in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2015 and 2014, respectively.
The common stock equivalents related to the 2010 Notes had no impact on diluted weighted average shares outstanding in 2016. The common stock equivalent impact during the year ended December 31, 2015 and 2014 was 1.2 million shares and 2.0 million shares, respectively. Interest Expense For the years ended December 31, 2016, 2015 and 2014, CBIZ recognized interest expense as follows (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Credit facility (1) |  | $ | 6,585 |  |  | $ | 4,320 |  |  | $ | 4,033 |
2010 Notes |  |  | — |  |  |  | 4,559 |  |  |  | 9,068 |
2006 Notes (2) |  |  | 8 |  |  |  | 23 |  |  |  | 23 |
Balance at December 31 |  | $ | 6,593 |  |  | $ | 8,902 |  |  | $ | 13,124 |
(1) | Components of interest expense related to the credit facility include amortization of deferred financing costs, commitment fees and line of credit fees.
(2) | During the second quarter of 2016, we redeemed the remaining 3.125% Convertible Senior Subordinated Notes (the “2006 Notes”) for $750 thousand in cash plus accrued interest under an optional early redemption provision.

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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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