7.	Financial Instruments

Bonds

CBIZ held corporate and municipal bonds with par values totaling $41.4 million and $40.8 million at September 30, 2016 and December 31, 2015, respectively. All bonds are investment grade and are classified as available-for-sale. These bonds have maturity or callable dates ranging from October 2016 through October 2021, and are included in “Funds held for clients – current” in the accompanying Consolidated Balance Sheets based on the intent and ability of the Company to sell these investments at any time under favorable conditions. The following table summarizes CBIZ’s bond activity for the nine months ended September 30, 2016 and the twelve months ended December 31, 2015 (in thousands):

	Nine Months Ended			Twelve Months Ended
	September 30, 2016			December 31, 2015
Fair value at beginning of period	$	43,142		$	38,399
Purchases		7,300			15,429
Redemptions		(2,150	)		(987	)
Maturities		(4,982	)		(9,677	)
Change in bond premium		(299	)		172
Fair market value adjustment		416			(194	)
Fair value at end of period	$	43,427		$	43,142

Interest Rate Swaps

CBIZ does not purchase or hold any derivative instruments for trading or speculative purposes. We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the credit facility. Under these interest rate swap contracts, we receive cash flows from counterparties at variable rates based on LIBOR and pay the counterparties a fixed rate. See the Annual Report on Form 10-K for the year ended December 31, 2015 for further discussion on CBIZ’s interest rate swaps.

The following table summarizes CBIZ’s outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at September 30, 2016 and December 31, 2015 (in thousands):

	September 30, 2016
	Notional		Fair
	Amount		Value (1)			Balance Sheet Location
Interest rate swaps (2)	$	60,000	$	(579	)	Other non-current liabilities

	December 31, 2015
	Notional		Fair
	Amount		Value (1)			Balance Sheet Location
Interest rate swaps	$	50,000	$	240		Other non-current assets

(1)

See additional disclosures regarding fair value measurements in Note 8.

(2)

The notional value of each interest rate swap is $10.0 million, $15.0 million, $25.0 million, and $10.0 million with maturity tenors of 2, 3, 5 and 5 years, respectively. Under the terms of the interest rate swaps, CBIZ pays interest at a fixed rate of 0.885% (2-year), 1.155% (3-year), 1.300% (5-year) and 1.120% (5-year) plus applicable margin as stated in the agreement, and receives interest that varies with the one-month LIBOR.

The following table summarizes the effects of the interest rate swap on CBIZ’s accompanying Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCL, Net of Tax				Loss Reclassified from AOCL into Expense
	Three Months Ended				Three Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Interest rate swap	$	247	$	—	$	103	$	—

	Nine Months Ended					Nine Months Ended
	September 30,					September 30,
	2016			2015		2016		2015
Interest rate swap	$	(516	)	$	79	$	318	$	128