Discontinued Operations and Divestitures

12 Months Ended

Dec. 31, 2016

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Divestitures

Note 19. 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 Topic 205 “Presentation of Financial Statements — Discontinued Operations — Other Presentation Matters”.

Discontinued Operations

Discontinued operations primarily consist of two small businesses under the Financial Services segment. In 2014, we committed to a plan to sell these businesses and classified them as held for sale. In 2015, we completed the sale of these businesses for a total purchase price of $2.7 million and recorded a gain of $1.4 million in “Gain on disposal of discontinued operations, net of tax” in the accompanying Consolidated Statements of Comprehensive Income. Proceeds that are contingent upon a divested operation’s actual future performance are recorded as gain on sale of discontinued operations in the period in which they are earned.

Summarized financial information for discontinued operations is shown below (in thousands):

	2016			2015			2014
Revenue	$	—		$	6,248		$	14,589
Loss from operations of discontinued operations before    income tax expense	$	(917	)	$	(3,518	)	$	(925	)
Income tax benefit		(375	)		(1,195	)		(171	)
Loss from operations of discontinued operations, net of tax	$	(542	)	$	(2,323	)	$	(754	)
Gain on disposal of discontinued operations, before income    tax expense	$	—		$	1,510		$	133
Income tax expense		—			83			34
Gain on disposal of discontinued operations, net of tax	$	—		$	1,427		$	99

Divestitures

Gains or losses from divested operations and assets that do not qualify for treatment as discontinued operations under GAAP are recorded as “Gain on sale of operations, net” in the accompanying Consolidated Statements of Comprehensive Income. The $0.9 million net gain on sale of operations in 2016 was primarily due to the sale of two small books of business under the Benefits and Insurance Services practice group. The net gain on sale of operations of $1.3 million in 2014 was primarily due to the sale of the Miami, Florida office under the Financial Services practice group.