Segment Disclosures

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Disclosures

Note 21. Segment Disclosures

CBIZ’s business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance 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 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 practice group is provided in the table below.

Financial Services	Benefits and Insurance Services	National Practices
•  Accounting and Tax	•  Group Health Benefits Consulting	•   Managed Networking and Hardware Services
•  Government Healthcare Consulting •  Financial Advisory	•  Payroll •  Property & Casualty	•   Healthcare Consulting
•  Valuation	•  Retirement Plan Services
•  Risk & Advisory 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 healthcare costs, gains or losses attributable to assets held in the Company’s non-qualified 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. 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 the “Corporate and Other” segment.

CBIZ operates in the United States and Canada and revenue generated from such operations during the years ended December 31, 2016, 2015 and 2014 was as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
United States	$	798,420	$	748,971	$	717,865
Canada		1,412		1,451		1,618
Total revenue	$	799,832	$	750,422	$	719,483

There is no one customer that represents a significant portion of CBIZ’s revenue.

Segment information for the years ended December 31, 2016, 2015 and 2014 was as follows (in thousands):

	For the Year Ended December 31, 2016
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	501,307	$	267,606		$	30,919	$	—		$	799,832
Operating expenses		432,254		223,487			27,697		14,288			697,726
Gross margin		69,053		44,119			3,222		(14,288	)		102,106
Corporate general and administrative expenses		—		—			—		36,319			36,319
Operating income (loss)		69,053		44,119			3,222		(50,607	)		65,787
Other income (expense):
Interest expense		—		(39	)		—		(6,554	)		(6,593	)
Gain on sale of operations, net		—		—			—		855			855
Other income, net		209		367			3		6,378			6,957
Total other income		209		328			3		679			1,219
Income (loss) from continuing operations before income    tax expense	$	69,262	$	44,447		$	3,225	$	(49,928	)	$	67,006

	For the Year Ended December 31, 2015
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	476,396		$	244,493		$	29,533	$	—		$	750,422
Operating expenses (1)		411,325			202,138			26,417		12,511			652,391
Gross margin		65,071			42,355			3,116		(12,511	)		98,031
Corporate general and administrative expenses (1)		—			—			—		32,527			32,527
Operating income (loss)		65,071			42,355			3,116		(45,038	)		65,504
Other income (expense):
Interest expense		—			(35	)		—		(8,867	)		(8,902	)
Gain on sale of operations, net		—			—			—		84			84
Other (expense) income, net (1)		(147	)		467			4		822			1,146
Total other (expense) income		(147	)		432			4		(7,961	)		(7,672	)
Income (loss) from continuing operations before income    tax expense	$	64,924		$	42,787		$	3,120	$	(52,999	)	$	57,832

(1) “Operating expenses” under the Financial Services and Benefits and Insurance Services practice groups include a reduction of $0.9 million and $0.6 million related to a state payroll tax incentive associated with an office relocation. “Corporate general and administrative expenses” include a reduction of less than $0.1 million related to the office relocation as discussed above. The reductions was recorded in “Other (expense) income, net” in 2015 but was reclassified to “Operating expenses” and “Corporate general and administrative expenses” to align the incentives with the expenses associated with the office relocation. The reclassification had no impact on “Income from continuing operations” or diluted earnings per share from continuing operations.

	For the Year Ended December 31, 2014
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	465,130	$	224,898		$	29,455	$	—		$	719,483
Operating expenses		399,783		186,002			26,798		17,221			629,804
Gross margin		65,347		38,896			2,657		(17,221	)		89,679
Corporate general and administrative expenses		—		—			—		34,183			34,183
Operating income (loss)		65,347		38,896			2,657		(51,404	)		55,496
Other income (expense):
Interest expense		—		(31	)		—		(13,093	)		(13,124	)
Gain on sale of operations, net		—		—			—		1,303			1,303
Other income, net		417		557			4		5,915			6,893
Total other income (expense)		417		526			4		(5,875	)		(4,928	)
Income (loss) from continuing operations before income    tax expense	$	65,764	$	39,422		$	2,661	$	(57,279	)	$	50,568