Segment Disclosures

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Disclosures

15. 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 table below.

Financial Services	Employee Services		National Practices
•  Accounting	•	Employee Benefits	•  Managed Networking and
•  Tax	•	Property & Casualty	Hardware Services
•  Government Health Care	•	Retirement Plan Services	•  Health Care Consulting
Consulting	•	Payroll Services
•  Financial Advisory	•	Life Insurance
•  Valuation	•	Human Capital Services
•  Litigation Support	•	Compensation Consulting
•  Risk Advisory Services	•	Executive Recruiting
•  Real Estate Advisory	•	Actuarial Services

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 certain health care costs, gains or losses attributable to assets held in the Company’s deferred compensation plan, share-based compensation, 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, 2014. Upon consolidation, 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 “Corporate and Other.”

Segment information for the three months ended September 30, 2015 and 2014 was as follows (in thousands):

	Three Months Ended September 30, 2015
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	118,354	$	61,293		$	7,455	$	—		$	187,102
Operating expenses (benefits)		101,979		51,043			6,644		(491	)		159,175
Gross margin		16,375		10,250			811		491			27,927
Corporate general & admin		—		—			—		8,043			8,043
Operating income (loss)		16,375		10,250			811		(7,552	)		19,884
Other income (expense):
Interest expense		—		(9	)		—		(1,831	)		(1,840	)
Gain on sale of operations, net		—		—			—		5			5
Other income (expense), net		475		462			2		(2,612	)		(1,673	)
Total other income (expense)		475		453			2		(4,438	)		(3,508	)
Income (loss) from continuing operations before income tax expense	$	16,850	$	10,703		$	813	$	(11,990	)	$	16,376

	Three Months Ended September 30, 2014
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	115,931	$	56,891		$	7,447	$	—		$	180,269
Operating expenses		98,987		47,194			6,585		2,467			155,233
Gross margin		16,944		9,697			862		(2,467	)		25,036
Corporate general & admin		—		—			—		8,889			8,889
Operating income (loss)		16,944		9,697			862		(11,356	)		16,147
Other income (expense):
Interest expense		—		(7	)		—		(3,116	)		(3,123	)
Gain on sale of operations, net		—		—			—		17			17
Other income (expense), net		191		97			4		(1,660	)		(1,368	)
Total other income (expense)		191		90			4		(4,759	)		(4,474	)
Income (loss) from continuing operations before income tax expense	$	17,135	$	9,787		$	866	$	(16,115	)	$	11,673

Segment information for the nine months ended September 30, 2015 and 2014 was as follows (in thousands):

	Nine Months Ended September 30, 2015
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	378,857	$	184,968		$	22,185	$	—		$	586,010
Operating expenses		312,942		153,813			19,894		6,507			493,156
Gross margin		65,915		31,155			2,291		(6,507	)		92,854
Corporate general & admin		—		—			—		24,523			24,523
Operating income (loss)		65,915		31,155			2,291		(31,030	)		68,331
Other income (expense):
Interest expense		—		(28	)		—		(7,637	)		(7,665	)
Gain on sale of operations, net		—		—			—		106			106
Other income (expense), net		575		660			3		(1,178	)		60
Total other income (expense)		575		632			3		(8,709	)		(7,499	)
Income (loss) from continuing operations before income tax expense	$	66,490	$	31,787		$	2,294	$	(39,739	)	$	60,832

	Nine Months Ended September 30, 2014
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	372,832	$	167,479		$	22,150	$	—		$	562,461
Operating expenses		305,333		138,865			19,902		11,388			475,488
Gross margin		67,499		28,614			2,248		(11,388	)		86,973
Corporate general & admin		—		—			—		27,393			27,393
Operating income (loss)		67,499		28,614			2,248		(38,781	)		59,580
Other income (expense):
Interest expense		—		(23	)		—		(10,110	)		(10,133	)
Gain on sale of operations, net		—		—			—		93			93
Other income, net		232		472			4		3,835			4,543
Total other income (expense)		232		449			4		(6,182	)		(5,497	)
Income (loss) from continuing operations before income tax expense	$	67,731	$	29,063		$	2,252	$	(44,963	)	$	54,083