Discontinued Operations and Divestitures

3 Months Ended

Mar. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Divestitures

13. Discontinued Operations and Divestitures

CBIZ will divest (through sale or closure) business operations that do not contribute to the Company’s long-term objectives for growth, or that are not complementary to its target service offerings and markets. Divestitures are classified as discontinued operations provided they meet the criteria as provided in FASB ASC 205 “Presentation of Financial Statements – Discontinued Operations – Other Presentation Matters.”

Discontinued Operations

Revenue and results from operations of discontinued operations are separately reported as “(Loss) income from operations of discontinued operations, net of tax” in the consolidated statements of comprehensive income. For the first quarter of 2014, the loss on operations of discontinued operations represents the results from the Company’s property tax business located in Leawood, Kansas that was discontinued in December of 2013 and is currently held for sale. For the first quarter of 2013, the income from operations of discontinued operations relates to the results of CBIZ’s Medical Management Professionals’ practice group that was discontinued and sold in August of 2013, as well as the results of the Leawood, Kansas property tax business.

For the three months ended March 31, 2014 and 2013, revenue and results from operations of discontinued operations were as follows (in thousands):

	Three Months Ended March 31,
	2014			2013
Revenue	$	54		$	33,592
(Loss) income from operations of discontinued operations, before income tax (benefit) expense	$	(351	)	$	1,870
Income tax (benefit) expense		(132	)		711
(Loss) income from operations of discontinued operations, net of tax	$	(219	)	$	1,159

Losses and gains from the sale of discontinued operations are recorded as “(Loss) gain on disposal of discontinued operations, net of tax”, in the accompanying consolidated statements of comprehensive income. In addition, proceeds that are contingent upon a divested operation’s actual future performance are recorded as “(Loss) gain on disposal of discontinued operations, net of tax” in the period they are earned. During the first quarters of 2014 and 2013, CBIZ did not discontinue the operations of any of its businesses and did not sell any operations. For the first quarter of 2014, the loss recorded in disposal of discontinued operations represented the finalization of the working capital adjustment related to the sale of CBIZ’s Medical Management Professionals’ practice group that was sold in August of 2013. The gains recorded in the first quarter of 2013 related to contingent proceeds on sales of discontinued operations that occurred in prior periods.

For the three months ended March 31, 2014 and 2013, losses and gains on the disposal of discontinued operations were as follows (in thousands):

	Three Months Ended March 31,
	2014			2013
(Loss) gain on disposal of discontinued operations, before income tax (benefit) expense	$	(874	)	$	36
Income tax (benefit) expense		(400	)		13
(Loss) gain on disposal of discontinued operations, net of tax	$	(474	)	$	23

At March 31, 2014 and December 31, 2013, the assets and liabilities of businesses classified as discontinued operations consisted of the following (in thousands):

	March 31, 2014		December 31, 2013
Assets:
Accounts receivable, net	$	835	$	1,068
Other current assets		25		24
Assets of discontinued operations	$	860	$	1,092
Liabilities:
Accounts payable	$	41	$	72
Accrued personnel		71		161
Accrued expenses		138		137
Liabilities of discontinued operations	$	250	$	370

Divestitures

Gains and losses from divested operations and assets that do not qualify for treatment as discontinued operations are recorded as “Gain on sale of operations, net” in the consolidated statements of comprehensive income.