XML 26 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2022
Investments, All Other Investments [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTS Available-For-Sale Debt Securities - In connection with certain services provided by our payroll operations, we collect funds from our clients’ accounts in advance of paying client obligations. These funds held for clients are segregated and invested in accordance with our investment policy, which requires all investments carry an investment grade rating at the time of initial investment. These investments, primarily consisting of corporate and municipal bonds, are classified as available-for-sale and are included in the “Funds held for clients” line item on the accompanying unaudited Condensed Consolidated Balance Sheets. The par value of these investments totaled $45.3 million and $37.0 million at September 30, 2022 and December 31, 2021, respectively, and had maturity or callable dates ranging from October 2022 through November 2025. At September 30, 2022, unrealized losses on the securities were not material and have not been recognized as a credit loss because the bonds are investment grade quality and management is not required or does not intend to sell prior to an expected recovery in value. The bond issuers continue to make timely principal and interest payments. The following table summarizes activities related to these investments for the nine months ended September 30, 2022 and the twelve months ended December 31, 2021 (in thousands):
| Nine Months Ended September 30, 2022 |  | Twelve Months Ended December 31, 2021 |
Fair value at beginning of period | $ | 38,670 |  |  | $ | 25,708 |  |
Purchases | 19,771 |  |  | 26,980 |  |
Redemptions | (5,630) |  |  | (6,530) |  |
Maturities | (5,870) |  |  | (8,347) |  |
Change in bond premium | (350) |  |  | 1,517 |  |
Fair market value adjustment | (2,218) |  |  | (658) |  |
Fair value at end of period | $ | 44,373 |  |  | $ | 38,670 |  |
In addition to the available-for-sale debt securities discussed above, we also held other depository assets in the amount of $1.7 million and $1.1 million at September 30, 2022 and December 31, 2021, respectively. Those depository assets are classified as Level 1 in the fair value hierarchy. Interest Rate Swaps - We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under our credit facility, or the forecasted acquisition of such liability. We do not purchase or hold any derivative instruments for trading or speculative purposes. Refer to the Annual Report on Form 10-K for the year ended December 31, 2021 for further discussion on our interest rate swaps. As a result of the 2022 credit facility, CBIZ amended the interest rate swap agreements with respect to the existing swaps. Effective May 16, 2022, the scheduled reset date, the interest rate of the swaps are set to one-month Term SOFR to align the swaps to Term SOFR in the 2022 credit facility as a result of reference rate reform. No other terms under the swap agreements were amended. During the third quarter of 2022, we entered into a new 5-year interest rate swap with a notional value of $20 million and fixed rate of 2.45% Under the terms of the interest rate swaps, we pay interest at a fixed rate of interest plus applicable margin as stated in the amended agreements, and receive interest that varies with the one-month Term SOFR. The following table summarizes our outstanding interest rate swaps and their classification in the accompanying unaudited Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021 (amounts in thousands):
| September 30, 2022
| Notional Amount |  | Fixed Rate |  | Expiration |  | Fair Value |  | Balance Sheet Location
Interest rate swap | $ | 15,000 |  |  | 2.571 | % |  | 6/1/2023 |  | $ | 130 |  |  | Other current asset
Interest rate swap | $ | 50,000 |  |  | 0.834 | % |  | 4/14/2025 |  | $ | 3,820 |  |  | Other non-current asset
Interest rate swap | $ | 30,000 |  |  | 1.186 | % |  | 12/14/2026 |  | $ | 3,020 |  |  | Other non-current asset
Interest rate swap | $ | 20,000 |  |  | 2.450 | % |  | 8/14/2027 |  | $ | 1,147 |  |  | Other non-current asset
| December 31, 2021
| Notional Amount |  | Fixed Rate |  | Expiration |  | Fair Value |  | Balance Sheet Location
Interest rate swap | $ | 20,000 |  |  | 1.770 | % |  | 5/14/2022 |  | $ | (120) |  |  | Other current liability
Interest rate swap | $ | 15,000 |  |  | 2.640 | % |  | 6/1/2023 |  | $ | (432) |  |  | Other non-current liability
Interest rate swap | $ | 50,000 |  |  | 0.885 | % |  | 4/14/2025 |  | $ | 405 |  |  | Other non-current asset
Interest rate swap | $ | 30,000 |  |  | 1.249 | % |  | 12/14/2026 |  | $ | (64) |  |  | Other non-current liability
Refer to Note 7, Fair Value Measurements, for additional disclosures regarding fair value measurements. The following table summarizes the effects of the interest rate swaps on the accompanying unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021 (in thousands):
| Gain Recognized in AOCI, net of tax |  | Gain (Loss) Reclassified from AOCL into Expense |
| Three Months Ended September 30, |  | Three Months Ended September 30, |
| 2022 |  | 2021 |  | 2022 |  | 2021 |
Interest rate swaps | $ | 2,815 |  |  | $ | 66 |  |  | $ | 220 |  |  | $ | (285) |  |
| Nine Months Ended September 30, |  | Nine Months Ended September 30, |
| 2022 |  | 2021 |  | 2022 |  | 2021 |
Interest rate swaps | $ | 6,009 |  |  | $ | 718 |  |  | $ | (278) |  |  | $ | (850) |  |

X
- 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
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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