XML 19 R8.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Revenue | 6 Months Ended
--- | ---
Jun. 30, 2018
Revenue Recognition [Abstract] |
Revenue | Note 3. Revenue In accordance with the new revenue recognition standard requirements, the following table disaggregates our revenue by source (in thousands):
|  | Three Months Ended June 30, 2018 |
|  | Financial |  |  | Benefits & |  |  | National |  |  |  |  |
|  | Services |  |  | Insurance |  |  | Practices |  |  | Consolidated |
Accounting, tax, advisory and consulting |  | $ | 151,737 |  |  | $ | — |  |  | $ | — |  |  | $ | 151,737 |
Core Benefits and Insurance Services |  |  | — |  |  |  | 68,978 |  |  |  | — |  |  |  | 68,978 |
Non-core Benefits and Insurance Services |  |  | — |  |  |  | 3,775 |  |  |  | — |  |  |  | 3,775 |
Managed networking, hardware services |  |  | — |  |  |  | — |  |  |  | 6,121 |  |  |  | 6,121 |
National Practices consulting |  |  | — |  |  |  | — |  |  |  | 2,030 |  |  |  | 2,030 |
Total revenue |  | $ | 151,737 |  |  | $ | 72,753 |  |  | $ | 8,151 |  |  | $ | 232,641 |
|  | Six Months Ended June 30, 2018 |
|  | Financial |  |  | Benefits & |  |  | National |  |  |  |  |
|  | Services |  |  | Insurance |  |  | Practices |  |  | Consolidated |
Accounting, tax, advisory and consulting |  | $ | 332,340 |  |  | $ | — |  |  | $ | — |  |  | $ | 332,340 |
Core Benefits and Insurance Services |  |  | — |  |  |  | 143,100 |  |  |  | — |  |  |  | 143,100 |
Non-core Benefits and Insurance Services |  |  | — |  |  |  | 6,983 |  |  |  | — |  |  |  | 6,983 |
Managed networking, hardware services |  |  | — |  |  |  | — |  |  |  | 12,079 |  |  |  | 12,079 |
National Practices consulting |  |  | — |  |  |  | — |  |  |  | 3,999 |  |  |  | 3,999 |
Other |  |  | — |  |  |  | — |  |  |  | 230 |  |  |  | 230 |
Total revenue |  | $ | 332,340 |  |  | $ | 150,083 |  |  | $ | 16,308 |  |  | $ | 498,731 |
Financial Services Revenue primarily consists of professional service fees derived from traditional accounting services, tax return preparation, administrative services, financial and risk advisory, consulting and valuation services. Clients are billed for these services based upon a fixed-fee, an hourly rate, or an outcome-based fee. Time related to the performance of all services is maintained in a time and billing system. Revenue for fixed-fee arrangements is recognized over time with the performance obligation measured in hours worked and anticipated realization. Time and expense arrangement revenue is recognized over time with progress measured towards completion with value being transferred through our hourly fee arrangement at expected net realizable rates per hour, plus agreed-upon out-of-pocket expenses (in accordance with practical expedient ASC 606-10-55-18). The cumulative impact on any subsequent revision in the estimated realizable value of unbilled fees for a particular client project is reflected in the period in which the change becomes known. Outcome-based arrangement revenue is fully constrained and recognized when the constraint is lifted at a point in time when the value is determined and verified by a third party. Benefits and Insurance Services Core Benefits and Insurance Services consists of group health benefits consulting, property and casualty, retirement plan services and payroll processing services. Revenue consists primarily of fee income for administering health and retirement plans and brokerage and agency commissions. Revenue also includes investment income related to client payroll funds that are held in CBIZ accounts, as is industry practice. Under the new revenue recognition standard, the cost to obtain a contract must be capitalized unless the contract period is one year or less. We have applied a practical expedient related to commissions paid internally and continue to expense the commissions as incurred since the majority of our contract periods are one year or less. Revenue related to group health benefits consulting consists of (i) commissions, (ii) fee income which can be fixed or variable based on a price per participant and (iii) contingent revenue.
| • | Commission revenue and fee income are recognized over the contract period as these services are provided to clients continuously throughout the term of the arrangement. Our customers benefit from each month of service on its own and although volume and the number of participants may differ month to month, the obligation to perform substantially remains the same.
| • | Contingent revenue arrangements are related to carrier-based performance targets. Due to the uncertainty of the outcome and the probability that a change in estimate would result in a significant reversal of revenue, we have applied a constraint on recording contingent revenue. Revenue will be recognized when the constraint has been lifted which is the earlier of written notification that the target has been achieved or cash collection. Contingent revenue is not a significant revenue stream to our consolidated financial position or results of operations.
Revenue related to property and casualty consists of (i) commissions and (ii) contingent revenue.
| • | Commissions relating to agency billing arrangements (pursuant to which we bill the insured, collect the funds and forward the premium to the insurance carrier less our commission) and direct billing arrangements (pursuant to which the insurance carrier bills the insured directly and forwards the commission to us) are both recognized on the effective date of the policy. Commission revenue is reported net of reserves for estimated policy cancellations and terminations. The cancellation and termination reserve is based upon estimates and assumptions using historical cancellation and termination experience and other current factors to project future experience.
| • | Contingent revenue arrangements related to carrier-based performance targets include claim loss experience and other factors. Due to the uncertainty of the outcome and the probability that a change in estimate would result in a significant reversal of revenue, we have applied a constraint on recording contingent revenue. Revenue will be recognized when the constraint has been lifted which is the earlier of written notification that the target has been achieved or cash collection. Contingent revenue is not a significant revenue stream to our consolidated financial position or results of operations.
Revenue related to retirement plan services consist of advisory, third party administration, and actuarial services.
| • | Advisory revenue is based on the value of assets under management with fees recognized when the quarterly data becomes available.
| • | Third party administration revenue is recognized over the contract period as these services are provided to clients continuously throughout the term of the arrangement. Our clients benefit from each month of service on its own and although volume may differ month to month, the obligation to perform substantially remains the same.
| • | Actuarial revenue is recognized over the contract period with performance measured in hours in relation to the expected total hours. Under certain defined benefit plan administration arrangements, we charge new clients an initial, non-refundable, set-up fee as part of a multi-year service agreement. Revenue and costs related to the set-up fees are deferred and recognized over the life of the contract or the expected customer relationship, whichever is longer.
Revenue related to payroll processing consists of a (i) fixed fee or (ii) variable fee based on a price per employee or check processed. Revenue is recognized when the actual payroll processing occurs. Our customers benefit from each month of service on its own and although volume and the variability may differ month to month, the obligation to perform substantially remains the same. Non-core Benefits and Insurance Services consists of transactional businesses that tend to fluctuate. These include life insurance, wholesale agency benefits and talent and compensation services. National Practices Managed networking, hardware services revenue consists of installation, maintenance and repair of computer hardware. These services are charged to a single customer based on cost plus an agreed-upon markup percentage, which has existed since 1999. National Practices consulting revenue is based upon a fixed fee, an hourly rate, or a percentage of savings. Revenue for fixed fee and time and expense arrangements is recognized over the performance period based upon actual hours incurred. Transaction Price Allocated to Future Obligations The new revenue recognition standard requires us to disclose the aggregate amount of transaction price allocated to performance obligations that have not yet been satisfied as of June 30, 2018. The guidance provides certain practical expedients that limit this requirement, including performance obligations that are part of a contract that is one year or less. Since the majority of our contracts are one year or less, we have applied this practical expedient related to quantifying remaining performance obligations.

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RevenueRecognitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration