Segment Disclosures

9 Months Ended

Sep. 30, 2016

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 table below.

Financial Services	Employee Services	National Practices
•Accounting •Tax •Government Health Care Consulting •Financial Advisory •Valuation •Litigation Support •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 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, 2015. 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, 2016 and 2015 was as follows (in thousands):

	Three Months Ended September 30, 2016
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	123,049	$	68,979		$	7,766	$	—		$	199,794
Operating expenses		105,615		57,627			6,895		3,932			174,069
Gross margin		17,434		11,352			871		(3,932	)		25,725
Corporate general & admin		—		—			—		8,679			8,679
Operating income (loss)		17,434		11,352			871		(12,611	)		17,046
Other income (expense):
Interest expense		—		(12	)		—		(1,748	)		(1,760	)
Gain on sale of operations, net		—		—			—		329			329
Other income, net		10		62			1		2,559			2,632
Total other income		10		50			1		1,140			1,201
Income (loss) from continuing operations before    income tax expense	$	17,444	$	11,402		$	872	$	(11,471	)	$	18,247

	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		101,597		50,754			6,644		(499	)		158,496
Gross margin		16,757		10,539			811		499			28,606
Corporate general & admin		—		—			—		8,028			8,028
Operating income (loss)		16,757		10,539			811		(7,529	)		20,578
Other income (expense):
Interest expense		—		(9	)		—		(1,831	)		(1,840	)
Gain on sale of operations, net		—		—			—		5			5
Other income (expense), net		93		173			2		(2,635	)		(2,367	)
Total other income (expense)		93		164			2		(4,461	)		(4,202	)
Income (loss) from continuing operations before    income tax expense	$	16,850	$	10,703		$	813	$	(11,990	)	$	16,376

Segment information for the nine months ended September 30, 2016 and 2015 was as follows (in thousands):

	Nine Months Ended September 30, 2016
	Financial Services		Employee Services			National Practices		Corporate and Other			Total
Revenue	$	398,112	$	199,790		$	23,145	$	—		$	621,047
Operating expenses		326,099		167,651			20,777		11,655			526,182
Gross margin		72,013		32,139			2,368		(11,655	)		94,865
Corporate general & admin		—		—			—		27,270			27,270
Operating income (loss)		72,013		32,139			2,368		(38,925	)		67,595
Other income (expense):
Interest expense		—		(32	)		—		(4,987	)		(5,019	)
Gain on sale of operations, net		—		—			—		480			480
Other income, net		237		220			2		5,023			5,482
Total other income		237		188			2		516			943
Income (loss) from continuing operations before    income tax expense	$	72,250	$	32,327		$	2,370	$	(38,409	)	$	68,538

	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		312,560		153,524			19,894		6,499			492,477
Gross margin		66,297		31,444			2,291		(6,499	)		93,533
Corporate general & admin		—		—			—		24,508			24,508
Operating income (loss)		66,297		31,444			2,291		(31,007	)		69,025
Other income (expense):
Interest expense		—		(28	)		—		(7,637	)		(7,665	)
Gain on sale of operations, net		—		—			—		106			106
Other income (expense), net		193		371			3		(1,201	)		(634	)
Total other income (expense)		193		343			3		(8,732	)		(8,193	)
Income (loss) from continuing operations before    income tax expense	$	66,490	$	31,787		$	2,294	$	(39,739	)	$	60,832