Segment Disclosures

9 Months Ended

Sep. 30, 2014

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 following table.

Financial Services	Employee Services	National Practices
•     Accounting •     Tax •     Financial Advisory •     Valuation •     Litigation Support •     Government Health Care Consulting •     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 gains or losses attributable to assets held in the Company’s deferred compensation plan, stock-based compensation, certain health care costs, 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, 2013. Upon consolidation, all 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 the “Corporate and Other” segment.

Segment information for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):

	Three Months Ended September 30, 2014
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	119,462	$	56,891		$	7,446	$	—		$	183,799
Operating expenses		102,789		47,194			6,583		2,460			159,026
Gross margin		16,673		9,697			863		(2,460	)		24,773
Corporate general & admin		—		—			—		8,889			8,889
Operating income (loss)		16,673		9,697			863		(11,349	)		15,884
Other income (expense):
Interest expense		—		(7	)		—		(3,116	)		(3,123	)
Gain on sale of operations, net		—		—			—		17			17
Other income (expense), net		193		97			4		(1,662	)		(1,368	)
Total other income (expense)		193		90			4		(4,761	)		(4,474	)
Income (loss) from continuing operations before income tax expense	$	16,866	$	9,787		$	867	$	(16,110	)	$	11,410

	Three Months Ended September 30, 2013
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	110,552	$	50,415		$	7,812	$	—		$	168,779
Operating expenses		96,999		42,055			6,617		4,587			150,258
Gross margin		13,553		8,360			1,195		(4,587	)		18,521
Corporate general & admin		—		—			—		8,944			8,944
Operating income (loss)		13,553		8,360			1,195		(13,531	)		9,577
Other income (expense):
Interest expense		—		(7	)		—		(3,808	)		(3,815	)
Gain on sale of operations, net		—		—			—		6			6
Other income, net		74		63			1		2,233			2,371
Total other income (expense)		74		56			1		(1,569	)		(1,438	)
Income (loss) from continuing operations before income tax expense	$	13,627	$	8,416		$	1,196	$	(15,100	)	$	8,139

	Nine Months Ended September 30, 2014
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	383,964	$	167,479		$	22,149	$	—		$	573,592
Operating expenses		317,402		138,865			19,901		11,352			487,520
Gross margin		66,562		28,614			2,248		(11,352	)		86,072
Corporate general & admin		—		—			—		27,454			27,454
Operating income (loss)		66,562		28,614			2,248		(38,806	)		58,618
Other income (expense):
Interest expense		—		(23	)		—		(10,110	)		(10,133	)
Gain on sale of operations, net		—		—			—		93			93
Other income, net		234		472			4		3,833			4,543
Total other income (expense)		234		449			4		(6,184	)		(5,497	)
Income (loss) from continuing operations before income tax expense	$	66,796	$	29,063		$	2,252	$	(44,990	)	$	53,121

	Nine Months Ended September 30, 2013
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	365,004	$	154,681		$	22,512	$	—		$	542,197
Operating expenses		300,602		127,545			20,442		12,149			460,738
Gross margin		64,402		27,136			2,070		(12,149	)		81,459
Corporate general & admin		—		—			—		26,577			26,577
Operating income (loss)		64,402		27,136			2,070		(38,726	)		54,882
Other income (expense):
Interest expense		—		(15	)		—		(12,001	)		(12,016	)
Gain on sale of operations, net		—		—			—		72			72
Other income, net		450		238			1		3,925			4,614
Total other income (expense)		450		223			1		(8,004	)		(7,330	)
Income (loss) from continuing operations before income tax expense	$	64,852	$	27,359		$	2,071	$	(46,730	)	$	47,552