Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CBZ | |
Entity Registrant Name | CBIZ, Inc. | |
Entity Central Index Key | 944,148 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,444,430 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 8,492 | $ 850 | |
Restricted cash | 31,859 | 24,860 | |
Accounts receivable, net | 193,155 | 153,608 | |
Income taxes refundable | 966 | ||
Deferred income taxes, net | 4,796 | ||
Other current assets | 18,701 | 15,903 | |
Current assets before funds held for clients | 252,207 | 200,983 | |
Funds held for clients | 205,867 | 171,497 | |
Total current assets | 458,074 | 372,480 | |
Non-current assets: | |||
Property and equipment, net | 19,727 | 20,162 | |
Goodwill and other intangible assets, net | 573,022 | 535,653 | |
Assets of deferred compensation plan | 68,040 | 64,245 | |
Notes receivable | 1,783 | 1,760 | |
Other non-current assets | 1,908 | 2,031 | |
Total non-current assets | 664,480 | 623,851 | |
Total assets | 1,122,554 | 996,331 | |
Current liabilities: | |||
Accounts payable | 54,823 | 35,555 | |
Income taxes payable | 5,950 | ||
Accrued personnel costs | 32,995 | 39,611 | |
Notes payable | 411 | ||
Contingent purchase price liability | 16,594 | 12,855 | |
Other current liabilities | 13,925 | 11,714 | |
Current liabilities before client fund obligations | 124,698 | 99,735 | |
Client fund obligations | 205,094 | 171,318 | |
Total current liabilities | 329,792 | 271,053 | |
Non-current liabilities: | |||
Convertible notes, net | 750 | ||
Bank debt | [1] | 235,500 | 205,800 |
Debt issuance costs | [1] | (1,613) | (1,869) |
Total long-term debt | 233,887 | 204,681 | |
Notes payable | 1,383 | ||
Income taxes payable | 4,259 | 4,084 | |
Deferred income taxes, net | [1] | 790 | 4,902 |
Deferred compensation plan obligations | 68,040 | 64,245 | |
Contingent purchase price liability | 16,354 | 11,962 | |
Other non-current liabilities | 7,624 | 7,456 | |
Total non-current liabilities | 332,337 | 297,330 | |
Total liabilities | 662,129 | 568,383 | |
STOCKHOLDERS' EQUITY | |||
Common stock | 1,275 | 1,262 | |
Additional paid in capital | 645,462 | 634,626 | |
Retained earnings | 284,757 | 254,860 | |
Treasury stock | (469,995) | (462,167) | |
Accumulated other comprehensive loss | (1,074) | (633) | |
Total stockholders’ equity | 460,425 | 427,948 | |
Total liabilities and stockholders’ equity | $ 1,122,554 | $ 996,331 | |
[1] | See Note 15 to accompanying consolidated financial statements for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 15). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Revenue | $ 197,015 | $ 185,042 | $ 421,253 | $ 398,908 |
Operating expenses | 173,996 | 163,117 | 352,113 | 333,981 |
Gross margin | 23,019 | 21,925 | 69,140 | 64,927 |
Corporate general and administrative expenses | 8,346 | 6,615 | 18,591 | 16,480 |
Operating income | 14,673 | 15,310 | 50,549 | 48,447 |
Other (expense) income: | ||||
Interest expense | (1,733) | (2,848) | (3,259) | (5,825) |
Gain on sale of operations, net | 50 | 45 | 151 | 101 |
Other income (expense), net | 703 | (1,126) | 2,850 | 1,733 |
Total other expense, net | (980) | (3,929) | (258) | (3,991) |
Income from continuing operations before income tax expense | 13,693 | 11,381 | 50,291 | 44,456 |
Income tax expense | 5,306 | 4,696 | 20,106 | 18,268 |
Income from continuing operations | 8,387 | 6,685 | 30,185 | 26,188 |
Loss from discontinued operations, net of tax | (258) | (330) | (288) | (665) |
Gain on disposal of discontinued operations, net of tax | 290 | 290 | ||
Net income | $ 8,129 | $ 6,645 | $ 29,897 | $ 25,813 |
Basic: | ||||
Continuing operations | $ 0.16 | $ 0.14 | $ 0.58 | $ 0.54 |
Discontinued operations | (0.01) | (0.01) | (0.01) | |
Net income | 0.16 | 0.13 | 0.57 | 0.53 |
Diluted: | ||||
Continuing operations | 0.16 | 0.13 | 0.57 | 0.51 |
Discontinued operations | (0.01) | (0.01) | ||
Net income | $ 0.16 | $ 0.13 | $ 0.56 | $ 0.50 |
Basic weighted average shares outstanding | 52,031 | 49,464 | 51,802 | 48,809 |
Diluted weighted average shares outstanding | 53,079 | 52,024 | 52,901 | 51,227 |
Comprehensive Income: | ||||
Net income | $ 8,129 | $ 6,645 | $ 29,897 | $ 25,813 |
Other comprehensive (loss) income, net of tax | (130) | (92) | (441) | 46 |
Comprehensive income | $ 7,999 | $ 6,553 | $ 29,456 | $ 25,859 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, Amount at Dec. 31, 2015 | $ 427,948 | $ 1,262 | $ (462,167) | $ 634,626 | $ 254,860 | $ (633) |
Balance, Shares at Dec. 31, 2015 | 126,182 | 73,228 | ||||
Net income | 29,897 | 29,897 | ||||
Other comprehensive loss | (441) | (441) | ||||
Share repurchases | (7,828) | $ (7,828) | ||||
Share repurchases, Shares | 799 | |||||
Restricted stock | $ 4 | (4) | ||||
Restricted stock, Shares | 302 | |||||
Stock options exercised | $ 3,529 | $ 5 | 3,524 | |||
Stock options exercised, Shares | 510 | 510 | ||||
Share-based compensation | $ 2,842 | 2,842 | ||||
Tax benefit from employee share plans | 663 | 663 | ||||
Business acquisitions | 3,815 | $ 4 | 3,811 | |||
Business acquisitions, Shares | 372 | |||||
Balance, Amount at Jun. 30, 2016 | $ 460,425 | $ 1,275 | $ (469,995) | $ 645,462 | $ 284,757 | $ (1,074) |
Balance, Shares at Jun. 30, 2016 | 127,366 | 74,027 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 29,897 | $ 25,813 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations, net of tax | 288 | 375 |
Gain on sale of operations, net | (151) | (101) |
Loss on early extinguishment of convertible debt | 833 | |
Depreciation and amortization expense | 10,682 | 10,051 |
Amortization of discount on notes and deferred financing costs | 262 | 1,639 |
Amortization of discount on contingent earnout liability | 106 | 80 |
Bad debt expense, net of recoveries | 2,205 | 2,799 |
Adjustment to contingent earnout liability | (714) | (1,525) |
Deferred income taxes | 894 | (916) |
Employee stock awards | 2,842 | 2,911 |
Excess tax benefits from share based payment arrangements | (673) | (443) |
Changes in assets and liabilities, net of acquisitions and divestitures: | ||
Restricted cash | (6,998) | (6,450) |
Accounts receivable, net | (36,439) | (37,287) |
Other assets | (2,950) | (12) |
Accounts payable | 19,268 | 11,791 |
Income taxes payable | 7,766 | 5,531 |
Accrued personnel costs | (6,616) | (9,745) |
Other liabilities | 2,163 | (824) |
Operating cash flows provided by continuing operations | 21,832 | 4,520 |
Operating cash flows provided by (used in) discontinued operations | 428 | (240) |
Net cash provided by operating activities | 22,260 | 4,280 |
Cash flows from investing activities: | ||
Business acquisitions and purchases of client lists, net of cash acquired | (34,004) | (7,184) |
Purchases of client fund investments | (4,963) | (6,661) |
Proceeds from the sales and maturities of client fund investments | 4,747 | 5,950 |
Proceeds from sales of divested operations | 93 | 101 |
Increase in funds held for clients | 3,649 | 70,664 |
Additions to property and equipment, net | (1,837) | (5,300) |
Collection of notes receivable | 119 | 104 |
Investing cash flows (used in) provided by continuing operations | (32,196) | 57,674 |
Investing cash flows provided by discontinued operations | 21 | |
Net cash (used in) provided by investing activities | (32,196) | 57,695 |
Cash flows from financing activities: | ||
Proceeds from bank debt | 278,000 | 188,900 |
Payment of bank debt | (248,300) | (143,300) |
Payment on early extinguishment of convertible debt | (760) | (17,173) |
Payment for acquisition of treasury stock | (7,828) | (18,498) |
Decrease in client funds obligations | (3,504) | (70,929) |
Proceeds from exercise of stock options | 3,529 | 4,669 |
Payment of contingent consideration of acquisitions | (4,110) | (4,816) |
Excess tax benefit from exercise of stock awards | 673 | 443 |
Payment of notes payable | (116) | |
Deferred financing costs | (6) | |
Net cash provided by (used in) financing activities | 17,578 | (60,704) |
Net increase in cash and cash equivalents | 7,642 | 1,271 |
Cash and cash equivalents at beginning of year | 850 | 979 |
Cash and cash equivalents at end of period | $ 8,492 | $ 2,250 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of CBIZ, Inc. and its subsidiaries (“CBIZ,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by the accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements do not reflect the operations or accounts of variable interest entities as the impact is not material to the financial condition, results of operations or cash flows of CBIZ. These interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management’s estimates and assumptions include, but are not limited to, estimates of collectability of accounts receivable and unbilled revenue, the realizability of goodwill and other intangible assets, the fair value of certain assets, the valuation of stock options in determining compensation expense, estimates of accrued liabilities (such as incentive compensation, self-funded health insurance accruals, legal reserves, income tax uncertainties and contingent purchase price obligations), the provision for income taxes, the realizability of deferred tax assets, and other factors. Management’s estimates and assumptions are derived from and are continually evaluated based upon available information, judgment and experience. Changes in circumstances could cause actual results to differ materially from those estimates. A description of revenue recognition policies is included in the Annual Report on Form 10-K for the year ended December 31, 2015. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 2. Accounts Receivable, Net Accounts receivable, net balances at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, 2016 2015 Trade accounts receivable $ 136,653 $ 118,916 Unbilled revenue 70,190 47,351 Total accounts receivable 206,843 166,267 Allowance for doubtful accounts (13,688 ) (12,659 ) Accounts receivable, net $ 193,155 $ 153,608 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | 3. Goodwill and Other Intangible Assets, Net The components of goodwill and other intangible assets, net at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, 2016 2015 Goodwill $ 474,095 $ 447,685 Intangible assets: Client lists 165,882 147,706 Other intangible assets 7,772 6,977 Total intangible assets 173,654 154,683 Total goodwill and intangibles assets 647,749 602,368 Accumulated amortization: Client lists (72,505 ) (65,037 ) Other intangible assets (2,222 ) (1,678 ) Total accumulated amortization (74,727 ) (66,715 ) Goodwill and other intangible assets, net $ 573,022 $ 535,653 |
Depreciation and Amortization
Depreciation and Amortization | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Depreciation and Amortization | 4. Depreciation and Amortization Depreciation and amortization expense for property and equipment and intangible assets for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Operating expenses $ 5,322 $ 4,956 $ 10,452 $ 9,847 Corporate general and administrative expenses 115 108 230 204 Total depreciation and amortization expense $ 5,437 $ 5,064 $ 10,682 $ 10,051 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | 5. Debt and Financing Arrangements At June 30, 2016, CBIZ’s primary financing arrangement was the $400.0 million unsecured credit facility discussed below, which provides the Company with the capital necessary to meet its working capital needs as well as the flexibility to continue with its strategic initiatives, including business acquisitions and share repurchases. In addition to the discussion below, refer to the Annual Report on Form 10-K for the year ended December 31, 2015 for additional details of CBIZ’s debt and financing arrangements. Bank Debt CBIZ has a $400.0 million unsecured credit facility with Bank of America as agent for a group of eight participating banks that matures in July 2019. The balance outstanding under the credit facility was $235.5 million and $205.8 million at June 30, 2016 and December 31, 2015, respectively. Rates for the six months ended June 30, 2016 and 2015 were as follows: Six Months Ended June 30, 2016 2015 Weighted average rates 2.38% 2.17% Range of effective rates 1.82% - 3.50% 1.88% - 3.25% CBIZ had approximately $84.5 million of available funds under the credit facility at June 30, 2016, net of outstanding letters of credit and performance guarantees of $2.3 million. The credit facility provides CBIZ with operating flexibility and funding to support seasonal working capital needs and other strategic initiatives such as acquisitions and share repurchases. As of June 30, 2016, CBIZ was in compliance with its debt covenants. 3.125% Convertible Senior Subordinated Notes (the “2006 Notes”) During the second quarter of 2016, CBIZ redeemed the remaining 2006 Notes for $750 thousand in cash plus accrued interest under an optional early redemption provision. Interest Expense During the three and six months ended June 30, 2016 and 2015, CBIZ recognized interest expense as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Credit facility (1) $ 1,731 $ 1,165 $ 3,251 $ 2,216 2010 Notes (2) — 1,677 — 3,597 2006 Notes 2 6 8 12 Total interest expense $ 1,733 $ 2,848 $ 3,259 $ 5,825 (1) Components of interest expense related to the credit facility include amortization of deferred financing costs, commitment fees and line of credit fees. (2) Components of interest expense related to the 4.875% Convertible Senior Subordinated Notes (the “2010 Notes”) include the contractual coupon interest, amortization of discount and amortization of deferred financing costs. The 2010 Notes matured on October 1, 2015. As previously disclosed, holders received $1,000 in cash for each $1,000 principal amount of 2010 Notes along with a premium of the conversion value over par value. The $71.8 million conversion value of the 2010 Notes was determined by a cash averaging period that began on October 5, 2015 and ended on October 30, 2015. Cash payments were settled on November 4, 2015 with funds available under the credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Letters of Credit and Guarantees CBIZ provides letters of credit to landlords (lessors) of its leased premises in lieu of cash security deposits, which totaled $2.3 million at both June 30, 2016 and December 31, 2015. In addition, CBIZ provides license bonds to various state agencies to meet certain licensing requirements. The amount of license bonds outstanding was $2.4 million and $2.3 million at June 30, 2016 and December 31, 2015, respectively. Legal Proceedings In 2010, CBIZ, Inc. and its subsidiary, CBIZ MHM, LLC (fka CBIZ Accounting, Tax & Advisory Services, LLC) (the “CBIZ Parties”), were named as defendants in lawsuits filed in the U.S. District Court for the District of Arizona and the Superior Court for Maricopa County, Arizona. The federal court case is captioned Robert Facciola, et al v. Greenberg Traurig LLP, et al, and the state court cases are captioned Victims Recovery, LLC v. Greenberg Traurig LLP, et al, Roger Ashkenazi, et al v. Greenberg Traurig LLP, et al, Mary Marsh, et al v. Greenberg Traurig LLP, et al; and ML Liquidating Trust v. Mayer Hoffman McCann PC, et al. Prior to these suits CBIZ MHM, LLC was named as a defendant in Jeffrey C. Stone v. Greenberg Traurig LLP, et al. These lawsuits arose out of the bankruptcy of Mortgages Ltd., a mortgage lender to developers in the Phoenix, Arizona area. Various other professional firms and individuals not related to the Company were also named defendants in these lawsuits. Mortgages Ltd. had been audited by Mayer Hoffman, a CPA firm that has an administrative services agreement with CBIZ. The lawsuits asserted claims against Mayer Hoffman for, among others things, violations of the Arizona Securities Act, common law fraud, and negligent misrepresentation, and sought to hold the CBIZ Parties vicariously liable for Mayer Hoffman’s conduct as either a statutory control person under the Arizona Securities Act or a joint venturer under Arizona common law. CBIZ is not a CPA firm, does not provide audits, and did not audit any of the entities at issue in these lawsuits, nor is CBIZ a control person of, or a joint venture with, Mayer Hoffman. With the exception of claims being pursued by two plaintiffs from the Ashkenazi lawsuit (“Baldino Group”), all other matters have been dismissed or settled without payment by the CBIZ Parties. The Baldino Group’s claims, which allege damages of approximately $16.0 million, are currently stayed as to the CBIZ Parties and Mayer Hoffman and no trial date has been set. The CBIZ Parties deny all allegations of wrongdoing made against them and are vigorously defending the remaining proceedings relating to the Baldino Group’s claims. In particular, the CBIZ Parties are not control persons under the Arizona Securities Act of, or in a joint venture with, Mayer Hoffman. The CBIZ Parties do not have, in any respects, the legal right to control Mayer Hoffman’s audits or any say in how the audits are conducted. The Company has been advised by Mayer Hoffman that it denies all allegations of wrongdoing made against it and that it intends to continue vigorously defending the matters. The Company cannot predict the outcome of the above matters or estimate the possible loss or range of loss, if any. Although the proceedings relating to the Baldino Group’s claims are subject to uncertainties inherent in the litigation process and the ultimate disposition of these proceedings is not presently determinable, management believes that the allegations are without merit and that the ultimate resolution of these matters will not have a material adverse effect on the consolidated financial condition, results of operations or cash flows of the Company. In addition to those items disclosed above, the Company is, from time to time, subject to claims and suits arising in the ordinary course of business. Although the ultimate disposition of such proceedings is not presently determinable, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the consolidated financial condition, results of operations or cash flows of the Company. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 7. Financial Instruments Bonds CBIZ held corporate and municipal bonds with par values totaling $41.6 million and $40.8 million at June 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 April 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 six months ended June 30, 2016 and the twelve months ended December 31, 2015 (in thousands): Six Months Ended Twelve Months Ended June 30, 2016 December 31, 2015 Fair value at beginning of period $ 43,142 $ 38,399 Purchases 4,963 15,429 Redemptions (1,490 ) (987 ) Maturities (3,257 ) (9,677 ) Increase in bond premium (205 ) 172 Fair market value adjustment 572 (194 ) Fair value at end of period $ 43,725 $ 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 June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Notional Fair Amount Value (1) Balance Sheet Location Interest rate swaps (2) $ 60,000 $ (972 ) 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 six months ended June 30, 2016 and 2015 (in thousands): Gain Recognized in AOCL, net of tax Loss Reclassified from AOCL into Expense Three Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Interest rate swap $ (231 ) $ 34 $ (110 ) $ 55 Six Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest rate swap $ (763 ) $ 79 $ 215 $ 128 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The following table summarizes CBIZ’s assets and liabilities at June 30, 2016 and December 31, 2015 that are measured at fair value on a recurring basis subsequent to initial recognition and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Level June 30, 2016 December 31, 2015 Deferred compensation plan assets 1 $ 68,040 $ 64,245 Corporate and municipal bonds 1 $ 43,725 $ 43,142 Interest rate swaps 2 $ (972 ) $ 240 Contingent purchase price liabilities 3 $ (32,948 ) $ (24,817 ) During the six months ended June 30, 2016 and 2015, there were no transfers between the valuation hierarchy Levels 1, 2 and 3. The following table summarizes the change in Level 3 fair values of the Company’s contingent purchase price liabilities for the six months ended June 30, 2016 and 2015 (pre-tax basis) (in thousands): 2016 2015 Beginning balance – January 1 $ (24,817 ) $ (33,368 ) Additions from business acquisitions (15,088 ) (4,186 ) Settlement of contingent purchase price liabilities 6,349 5,622 Change in fair value of contingencies 714 1,400 Change in net present value of contingencies (106 ) (79 ) Ending balance – June 30 $ (32,948 ) $ (30,611 ) Contingent purchase price liabilities arise from business acquisitions and are classified as Level 3 due to the utilization of a probability weighted discounted cash flow approach to determine the fair value of the contingency. A contingent liability is established for each acquisition that has a contingent purchase price component extending over a term of two to six years. The significant unobservable input used in the fair value measurement of the contingent purchase price liabilities is the future performance of the acquired business. The future performance of the acquired business directly impacts the contingent purchase price that is paid to the seller; thus, performance that exceeds estimates would result in a higher payout, and a performance under estimates would result in a lower payout. Changes in the expected amount of potential payouts are recorded as adjustments to the initial contingent purchase price liability, with the same amount being recorded in the accompanying Consolidated Statements of Comprehensive Income. These liabilities are reviewed quarterly and adjusted if necessary. See Note 12 for further discussion of contingent purchase price liabilities. The carrying amounts of CBIZ’s cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments, and the carrying value of bank debt approximates fair value as the interest rate on the bank debt is variable and approximates current market rates. As a result, the fair value measurement of CBIZ’s bank debt is considered to be Level 2. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income | 9. Other Comprehensive (Loss) Income The following table is a summary of other comprehensive (loss) income and discloses the tax impact of each component of other comprehensive (loss) income for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1) $ 112 $ (114 ) $ 343 $ (7 ) Net unrealized (loss) gain on interest rate swaps, net of income taxes (2) (231 ) 34 (763 ) 79 Foreign currency translation (11 ) (12 ) (21 ) (26 ) Total other comprehensive (loss) income $ (130 ) $ (92 ) $ (441 ) $ 46 (1) Net of income tax expense (benefit) of $75 and ($76) for the three months ended June 30, 2016 and 2015, respectively, and net of income tax expense (benefit) of $ 167 (2) Net of income tax (benefit) expense of ($136) and $20 for the three months ended June 30, 2016 and 2015, respectively, and net of income tax (benefit) expense of ($448) and $46 for the six months ended June 30, 2016 and 2015, respectively. Accumulated other comprehensive loss, net of tax, was approximately $1.1 million and $0.6 million at June 30, 2016 and December 31, 2015, respectively. Accumulated other comprehensive loss consisted of adjustments, net of tax, for unrealized gains and losses on available-for-sale securities and interest rate swaps, and foreign currency translation. |
Employer Share Plans
Employer Share Plans | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employer Share Plans | 10. Employer Share Plans Effective May 15, 2014, CBIZ shareholders approved a new plan, the CBIZ, Inc. 2014 Stock Incentive Plan (“2014 Plan”). Under the 2014 Plan, which expires in 2024, a maximum of 9.6 million stock options, shares of restricted stock or other stock-based compensation awards may be granted. Shares subject to award under the 2014 Plan may be either authorized but unissued shares of CBIZ common stock or treasury shares. Compensation expense for stock-based awards recognized during the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options $ 564 $ 534 $ 1,143 $ 1,375 Restricted stock awards 869 755 1,699 1,536 Total stock-based compensation expense $ 1,433 $ 1,289 $ 2,842 $ 2,911 Stock award activity during the six months ended June 30, 2016 was as follows (in thousands, except per share data): Stock Options Restricted Stock Awards Number of Options Weighted Average Exercise Per Share Number of Shares Weighted Grant-Date Fair Value (1) Outstanding at beginning of year 4,885 $ 7.50 962 $ 8.08 Granted 654 $ 10.35 305 $ 10.37 Exercised or released (510 ) $ 6.92 (426 ) $ 7.64 Expired or canceled (24 ) $ 7.47 (3 ) $ 7.66 Outstanding at June 30, 2016 5,005 $ 7.94 838 $ 9.13 Exercisable at June 30, 2016 2,810 $ 7.13 (1) Represents weighted average market value of the shares; awards are granted at no cost to the recipients. CBIZ utilized the Black-Scholes-Merton options-pricing model to determine the fair value of stock options on the date of grant. The fair value of stock options granted during the second quarter of 2016 was $2.40. The following weighted average assumptions were utilized: Six Months Ended June 30, Expected volatility (1) 24.88 % Expected option life (years) (2) 4.62 Risk-free interest rate (3) 1.12 % Expected dividend yield (4) 0.00 % (1) The expected volatility assumption was determined based upon the historical volatility of CBIZ’s stock price, using daily price intervals. (2) The expected option life was determined based upon CBIZ’s historical data using a midpoint scenario, which assumes all options are exercised halfway between the expirations date and the weighted average time it takes the option to vest. (3) The risk-free interest rate assumption was based upon zero-coupon U.S. Treasury bonds with a term approximating the expected life of the respective options. (4) The expected dividend yield assumption was determined in view of CBIZ’s historical and estimated dividend payouts. CBIZ does not expect to change its dividend payout policy in the foreseeable future. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the three and six months ended June 30, 2016 and 2015 (in thousands, except per share data). Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Income from continuing operations $ 8,387 $ 6,685 $ 30,185 $ 26,188 Denominator: Basic Weighted average common shares outstanding 52,031 49,464 51,802 48,809 Diluted Stock options (1) 814 868 811 829 Restricted stock awards (1) 229 224 283 290 Contingent shares (2) 5 118 5 118 Convertible senior subordinated notes (3) — 1,350 — 1,181 Diluted weighted average common shares outstanding 53,079 52,024 52,901 51,227 Basic earnings per share from continuing operations $ 0.16 $ 0.14 $ 0.58 $ 0.54 Diluted earnings per share from continuing operations $ 0.16 $ 0.13 $ 0.57 $ 0.51 (1) A total of 1.7 million and 1.5 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2016, respectively, and a total of 1.5 million and 1.2 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2015, respectively, as their effect would be anti-dilutive. (2) Contingent shares represent additional shares to be issued for purchase price earned by former owners of businesses acquired by CBIZ. (3) The dilutive impact of potential shares to be issued upon conversion of the 2010 Notes is not applicable to the six months ended June 30, 2016 due to the maturation of the 2010 Notes in the fourth quarter of 2015. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 12. Acquisitions The cost of an acquisition is measured at the fair value of the consideration transferred, including contingent consideration. Acquisition-related costs are recognized as an expense in the period in which they are incurred. The identifiable assets acquired, liabilities assumed and contingent consideration are measured at their fair values at the date of acquisition. Goodwill is measured as the excess of the aggregate of the consideration transferred over the net of the amounts of identifiable assets acquired and liabilities assumed. A significant portion of the goodwill is deductible for income tax purposes. The operating results of acquired businesses are included in the accompanying consolidated financial statements beginning on the date of acquisition. During the six months ended June 30, 2016, CBIZ acquired substantially all of the non-attest assets of three businesses: First quarter 2016 · Effective January 1, 2016, CBIZ acquired Millimaki Eggert, L.L.P., (“Millimaki”), located in San Diego, California. Millimaki provides professional tax, accounting, and financial services, with a specialty niche practice in the real estate sector, to closely held businesses, their owners, and mid-to-high net worth individuals. Annualized revenue attributable to Millimaki is estimated to be approximately $2.4 million. Operating results attributable to Millimaki are reported in the Financial Services practice group. Second quarter 2016 · Effective April 1, 2016, CBIZ acquired The Savitz Organization, (“Savitz”), headquartered in Philadelphia, Pennsylvania with offices in Atlanta, Georgia, and Newton, Massachusetts. Savitz is an employee retirement and health and welfare benefits firm that provides actuarial, consulting and administration outsourcing services. Annualized revenue attributable to Savitz is estimated to be approximately $20.0 million. Operating results attributable to Savitz are reported in the Employee Services practice group. · Effective June 1, 2016, CBIZ acquired Flex-Pay Business Services, Inc., (“Flex-Pay”), located in Winston-Salem, North Carolina. Flex-Pay provides payroll processing, Affordable Care Act fulfillment, and human resource solutions to more than 3,600 clients primarily in the Southeast. Annualized revenue attributable to Flex-Pay is estimated to be approximately $10.0 million. Operating results attributable to Flex-Pay are reported in the Employee Services practice group. Pro forma results of operations for these acquisitions have not been presented because the effects of the acquisitions, individually or in the aggregate, were not significant to the Company’s results. Aggregate consideration for these acquisitions consisted of approximately $33.0 million in cash consideration, $1.6 million in CBIZ common stock and $15.1 million in contingent consideration. The estimated fair values of the assets acquired and the liabilities assumed during the six months ended June 30, 2016 are as follows (in thousands): Six Months Ended June 30, 2016 Cash $ 6 Accounts receivable, net 5,313 Funds held for clients 37,230 Property and equipment, net 383 Other assets 172 Identifiable intangible assets 17,755 Current liabilities (378 ) Client fund obligations (37,230 ) Total identifiable net assets $ 23,251 Goodwill 26,471 Aggregate purchase price $ 49,722 · Under the terms of the acquisition agreements, a portion of the purchase price is contingent on future performance of the businesses acquired. · Utilizing a probability weighted income approach, CBIZ determined that the fair value of the contingent consideration arrangements for the acquisitions occurring in the first half of 2016 was $15.1 million, of which $4.4 million was recorded in “Contingent purchase price liability – current” and $10.7 million was recorded in “Contingent purchase price liability – non-current” in the accompanying Consolidated Balance Sheets at June 30, 2016. · The goodwill of $26.5 million arising from the acquisitions in the first half of 2016 consist largely of expected future earnings and cash flows from the existing management team, as well as the synergies created by the integration of the new businesses within the CBIZ organization, including cross-selling opportunities expected with the Company’s Financial Services group and the Employee Services group, to help strengthen the Company’s existing service offerings and expand the Company’s market position. · The goodwill of $26.5 million from acquisitions in the first half of 2016 is reported under the Employee Services operating segment ($25.5 million) and the Financial Services operating segment ($1.0 million). Client lists During the six months ended June 30, 2016, CBIZ purchased three clients lists, two of which are reported in the Employee Services practice group and one in the Financial Services practice group. Total consideration for these client lists was $0.2 million in cash consideration, $1.0 million of guaranteed future consideration and $0.7 million of contingent consideration. Change in contingent purchase price liability for previous acquisitions During the six months ended June 30, 2016, CBIZ decreased the fair value of the contingent purchase price liability related to prior acquisitions by $0.7 million due to lower than originally projected future results of the acquired businesses. This decrease is included in “Other income, net” in the accompanying Consolidated Statements of Comprehensive Income. Contingent earnouts for previous acquisitions CBIZ paid $4.1 million in cash and issued approximately 220,000 shares of CBIZ common stock during the six months ended June 30, 2016 for previous acquisitions. During the six months ended June 30, 2015, CBIZ acquired substantially all of the assets of one business: First quarter 2015 · Effective March 1, 2015, CBIZ acquired Model Consulting, Inc. (“Model”), located in Trevose, Pennsylvania. Model provides employee benefit consulting services to mid-sized companies in the Philadelphia and Southern New Jersey markets. Operating results attributable to Model are reported in the Employee Services practice group. Pro forma results of operations for these acquisitions have not been presented because the effects of the acquisitions, individually or in the aggregate, were not significant to the Company’s results. Aggregate consideration for this acquisition consisted of approximately $5.5 million in cash consideration and $4.2 million in contingent consideration. The estimated fair values of the assets acquired and the liabilities assumed during the six months ended June 30, 2015 are as follows (in thousands): Six Months Ended June 30, 2015 Cash $ — Accounts receivable, net — Work in process, net — Other assets — Identifiable intangible assets 2,844 Current liabilities — Total identifiable net assets $ 2,844 Goodwill 6,865 Aggregate purchase price $ 9,709 · Under the terms of the acquisition agreements, a portion of the purchase price is contingent on future performance of the businesses acquired. · The goodwill of $6.9 million arising from the acquisition in the first half of 2015 is reported under the Employee Services operating segment. Client lists During the first half of 2015, CBIZ purchased three client lists, all of which are reported in the Employee Services practice group. Total consideration for these client lists was $0.1 million in cash consideration, $0.3 million in guaranteed future consideration and $3.0 million in future consideration. Change in contingent purchase price liability for previous acquisitions During the six months ended June 30, 2015, CBIZ decreased the fair value of the contingent purchase price liability related to prior acquisitions by $1.5 million due to lower than originally projected future results of the acquired businesses. This decrease is included in “Other income, net” in the accompanying Consolidated Statements of Comprehensive Income. Contingent earnouts for previous acquisitions During the six months ended June 30, 2015, CBIZ paid $4.8 million in cash and issued approximately 91,000 shares of CBIZ common stock. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations and Divestitures | 13. Discontinued Operations and Divestitures CBIZ has divested, 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 Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of an Entity (Topic 360)” which was effective January 1, 2015. Discontinued Operations Revenue and results from operations of discontinued operations are separately reported as “Loss from operations of discontinued operations, net of tax” in the accompanying Consolidated Statements of Comprehensive Income. During the first half of 2016, CBIZ did not discontinue the operations of any of its businesses. During the same period in 2015, the loss on operations of discontinued operations represents the results from the operations of two small businesses under the Financial Services segment that were discontinued in December 2014, one of which was sold on June 1, 2015. Revenue and results from operations of discontinued operations for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue $ — $ 2,579 $ — $ 5,994 Loss from discontinued operations before income tax $ (437 ) $ (489 ) $ (488 ) $ (993 ) Income tax benefit (179 ) (159 ) (200 ) (328 ) Loss from discontinued operations, net of tax $ (258 ) $ (330 ) $ (288 ) $ (665 ) Divestitures Gains or losses from divested operations and assets that do not qualify for treatment as discontinued operations are recorded as “Gain on sale of operations, net” in the accompanying Consolidated Statements of Comprehensive Income. During the six months ended June 30, 2016 and 2015, CBIZ did not sell any operations. Gains totaling $0.1 million and $0.1 million for the six months ended June 30, 2016 and 2015, respectively, were recorded and relate to contingent consideration earned on sales made in previous periods. |
Segment Disclosures
Segment Disclosures | 6 Months Ended |
Jun. 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 June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended June 30, 2016 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 122,856 $ 66,484 $ 7,675 $ — $ 197,015 Operating expenses 106,987 56,344 7,005 3,660 173,996 Gross margin 15,869 10,140 670 (3,660 ) 23,019 Corporate general & admin — — — 8,346 8,346 Operating income (loss) 15,869 10,140 670 (12,006 ) 14,673 Other income (expense): Interest expense — (10 ) — (1,723 ) (1,733 ) Gain on sale of operations, net — — — 50 50 Other (expense) income, net (27 ) 84 1 645 703 Total other (expense) income (27 ) 74 1 (1,028 ) (980 ) Income (loss) from continuing operations before income tax expense $ 15,842 $ 10,214 $ 671 $ (13,034 ) $ 13,693 Three Months Ended June 30, 2015 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 116,671 $ 61,024 $ 7,347 $ — $ 185,042 Operating expenses 102,345 51,242 6,649 2,881 163,117 Gross margin 14,326 9,782 698 (2,881 ) 21,925 Corporate general & admin — — — 6,615 6,615 Operating income (loss) 14,326 9,782 698 (9,496 ) 15,310 Other income (expense): Interest expense — (11 ) — (2,837 ) (2,848 ) Gain on sale of operations, net — — — 45 45 Other income (expense), net 8 82 1 (1,217 ) (1,126 ) Total other income (expense) 8 71 1 (4,009 ) (3,929 ) Income (loss) from continuing operations before income tax expense $ 14,334 $ 9,853 $ 699 $ (13,505 ) $ 11,381 Segment information for the nine months ended June 30, 2016 and 2015 was as follows (in thousands): Six Months Ended June 30, 2016 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 275,063 $ 130,811 $ 15,379 $ — $ 421,253 Operating expenses 220,484 110,024 13,882 7,723 352,113 Gross margin 54,579 20,787 1,497 (7,723 ) 69,140 Corporate general & admin — — — 18,591 18,591 Operating income (loss) 54,579 20,787 1,497 (26,314 ) 50,549 Other income (expense): Interest expense — (20 ) — (3,239 ) (3,259 ) Gain on sale of operations, net — — — 151 151 Other income, net 227 158 1 2,464 2,850 Total other income (expense) 227 138 1 (624 ) (258 ) Income (loss) from continuing operations before income tax expense $ 54,806 $ 20,925 $ 1,498 $ (26,938 ) $ 50,291 Six Months Ended June 30, 2015 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 260,503 $ 123,675 $ 14,730 $ — $ 398,908 Operating expenses 210,963 102,770 13,250 6,998 333,981 Gross margin 49,540 20,905 1,480 (6,998 ) 64,927 Corporate general & admin — — — 16,480 16,480 Operating income (loss) 49,540 20,905 1,480 (23,478 ) 48,447 Other income (expense): Interest expense — (20 ) — (5,805 ) (5,825 ) Gain on sale of operations, net — — — 101 101 Other income, net 107 199 1 1,426 1,733 Total other income (expense) 107 179 1 (4,278 ) (3,991 ) Income (loss) from continuing operations before income tax expense $ 49,647 $ 21,084 $ 1,481 $ (27,756 ) $ 44,456 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 15. New Accounting Pronouncements Accounting Standards Adopted in 2016 In November 2015, the FASB issued ASU 2015-17 , “Income Taxes (Topic 740) – Balance Sheet Reclassification of Deferred Taxes” In April 2015, FASB issued ASU No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs” “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” In February 2015, FASB issued ASU No. 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis” Accounting Standards Not Yet Adopted In March 2016, FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” In February 2016, FASB issued ASU No. 2016-02, “Leases (Topic 842) – Amendments to the Financial Accounting Standards Board Accounting Standards Codification” In August 2015, FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date” “Revenue from Contracts with Customers (Topic 606)” |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Effective July 1, 2016, CBIZ acquired employee benefits consulting firm Ed Jacobs & Associates, Inc. (“EJ&A”), located in Cleveland, Tennessee. Annualized revenue is estimated to be approximately $2.1 million and will be recorded in the Employee Services practice group. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Accounting Standards Adopted in 2016 In November 2015, the FASB issued ASU 2015-17 , “Income Taxes (Topic 740) – Balance Sheet Reclassification of Deferred Taxes” In April 2015, FASB issued ASU No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs” “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” In February 2015, FASB issued ASU No. 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis” Accounting Standards Not Yet Adopted In March 2016, FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” In February 2016, FASB issued ASU No. 2016-02, “Leases (Topic 842) – Amendments to the Financial Accounting Standards Board Accounting Standards Codification” In August 2015, FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date” “Revenue from Contracts with Customers (Topic 606)” |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net balances at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, 2016 2015 Trade accounts receivable $ 136,653 $ 118,916 Unbilled revenue 70,190 47,351 Total accounts receivable 206,843 166,267 Allowance for doubtful accounts (13,688 ) (12,659 ) Accounts receivable, net $ 193,155 $ 153,608 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Goodwill and Other Intangible Assets, Net | The components of goodwill and other intangible assets, net at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, 2016 2015 Goodwill $ 474,095 $ 447,685 Intangible assets: Client lists 165,882 147,706 Other intangible assets 7,772 6,977 Total intangible assets 173,654 154,683 Total goodwill and intangibles assets 647,749 602,368 Accumulated amortization: Client lists (72,505 ) (65,037 ) Other intangible assets (2,222 ) (1,678 ) Total accumulated amortization (74,727 ) (66,715 ) Goodwill and other intangible assets, net $ 573,022 $ 535,653 |
Depreciation and Amortization (
Depreciation and Amortization (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Depreciation and Amortization Expense for Property and Equipment and Intangible Assets | Depreciation and amortization expense for property and equipment and intangible assets for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Operating expenses $ 5,322 $ 4,956 $ 10,452 $ 9,847 Corporate general and administrative expenses 115 108 230 204 Total depreciation and amortization expense $ 5,437 $ 5,064 $ 10,682 $ 10,051 |
Debt and Financing Arrangemen26
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Unsecured Credit Facility | Rates for the six months ended June 30, 2016 and 2015 were as follows: Six Months Ended June 30, 2016 2015 Weighted average rates 2.38% 2.17% Range of effective rates 1.82% - 3.50% 1.88% - 3.25% |
Summary of Recognized Interest Expense | During the three and six months ended June 30, 2016 and 2015, CBIZ recognized interest expense as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Credit facility (1) $ 1,731 $ 1,165 $ 3,251 $ 2,216 2010 Notes (2) — 1,677 — 3,597 2006 Notes 2 6 8 12 Total interest expense $ 1,733 $ 2,848 $ 3,259 $ 5,825 (1) Components of interest expense related to the credit facility include amortization of deferred financing costs, commitment fees and line of credit fees. (2) Components of interest expense related to the 4.875% Convertible Senior Subordinated Notes (the “2010 Notes”) include the contractual coupon interest, amortization of discount and amortization of deferred financing costs. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments All Other Investments [Abstract] | |
Summary of Bond Activity | The following table summarizes CBIZ’s bond activity for the six months ended June 30, 2016 and the twelve months ended December 31, 2015 (in thousands): Six Months Ended Twelve Months Ended June 30, 2016 December 31, 2015 Fair value at beginning of period $ 43,142 $ 38,399 Purchases 4,963 15,429 Redemptions (1,490 ) (987 ) Maturities (3,257 ) (9,677 ) Increase in bond premium (205 ) 172 Fair market value adjustment 572 (194 ) Fair value at end of period $ 43,725 $ 43,142 |
Summary of Outstanding Interest Rate Swaps | The following table summarizes CBIZ’s outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Notional Fair Amount Value (1) Balance Sheet Location Interest rate swaps (2) $ 60,000 $ (972 ) 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. |
Summary of Effects of Interest Rate Swap | The following table summarizes the effects of the interest rate swap on CBIZ’s accompanying Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015 (in thousands): Gain Recognized in AOCL, net of tax Loss Reclassified from AOCL into Expense Three Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Interest rate swap $ (231 ) $ 34 $ (110 ) $ 55 Six Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest rate swap $ (763 ) $ 79 $ 215 $ 128 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes CBIZ’s assets and liabilities at June 30, 2016 and December 31, 2015 that are measured at fair value on a recurring basis subsequent to initial recognition and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Level June 30, 2016 December 31, 2015 Deferred compensation plan assets 1 $ 68,040 $ 64,245 Corporate and municipal bonds 1 $ 43,725 $ 43,142 Interest rate swaps 2 $ (972 ) $ 240 Contingent purchase price liabilities 3 $ (32,948 ) $ (24,817 ) |
Change in Level 3 Fair Values of Contingent Purchase Price Liabilities | During the six months ended June 30, 2016 and 2015, there were no transfers between the valuation hierarchy Levels 1, 2 and 3. The following table summarizes the change in Level 3 fair values of the Company’s contingent purchase price liabilities for the six months ended June 30, 2016 and 2015 (pre-tax basis) (in thousands): 2016 2015 Beginning balance – January 1 $ (24,817 ) $ (33,368 ) Additions from business acquisitions (15,088 ) (4,186 ) Settlement of contingent purchase price liabilities 6,349 5,622 Change in fair value of contingencies 714 1,400 Change in net present value of contingencies (106 ) (79 ) Ending balance – June 30 $ (32,948 ) $ (30,611 ) |
Other Comprehensive (Loss) In29
Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Other Comprehensive (Loss) Income and Tax Impact | The following table is a summary of other comprehensive (loss) income and discloses the tax impact of each component of other comprehensive (loss) income for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1) $ 112 $ (114 ) $ 343 $ (7 ) Net unrealized (loss) gain on interest rate swaps, net of income taxes (2) (231 ) 34 (763 ) 79 Foreign currency translation (11 ) (12 ) (21 ) (26 ) Total other comprehensive (loss) income $ (130 ) $ (92 ) $ (441 ) $ 46 (1) Net of income tax expense (benefit) of $75 and ($76) for the three months ended June 30, 2016 and 2015, respectively, and net of income tax expense (benefit) of $ 167 (2) Net of income tax (benefit) expense of ($136) and $20 for the three months ended June 30, 2016 and 2015, respectively, and net of income tax (benefit) expense of ($448) and $46 for the six months ended June 30, 2016 and 2015, respectively. |
Employer Share Plans (Tables)
Employer Share Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation Awards | Compensation expense for stock-based awards recognized during the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options $ 564 $ 534 $ 1,143 $ 1,375 Restricted stock awards 869 755 1,699 1,536 Total stock-based compensation expense $ 1,433 $ 1,289 $ 2,842 $ 2,911 |
Stock Award Activity | Stock award activity during the six months ended June 30, 2016 was as follows (in thousands, except per share data): Stock Options Restricted Stock Awards Number of Options Weighted Average Exercise Per Share Number of Shares Weighted Grant-Date Fair Value (1) Outstanding at beginning of year 4,885 $ 7.50 962 $ 8.08 Granted 654 $ 10.35 305 $ 10.37 Exercised or released (510 ) $ 6.92 (426 ) $ 7.64 Expired or canceled (24 ) $ 7.47 (3 ) $ 7.66 Outstanding at June 30, 2016 5,005 $ 7.94 838 $ 9.13 Exercisable at June 30, 2016 2,810 $ 7.13 (1) Represents weighted average market value of the shares; awards are granted at no cost to the recipients. |
Schedule of Fair Value Option Award Weighted Average Assumptions Used | CBIZ utilized the Black-Scholes-Merton options-pricing model to determine the fair value of stock options on the date of grant. The fair value of stock options granted during the second quarter of 2016 was $2.40. The following weighted average assumptions were utilized: Six Months Ended June 30, Expected volatility (1) 24.88 % Expected option life (years) (2) 4.62 Risk-free interest rate (3) 1.12 % Expected dividend yield (4) 0.00 % (1) The expected volatility assumption was determined based upon the historical volatility of CBIZ’s stock price, using daily price intervals. (2) The expected option life was determined based upon CBIZ’s historical data using a midpoint scenario, which assumes all options are exercised halfway between the expirations date and the weighted average time it takes the option to vest. (3) The risk-free interest rate assumption was based upon zero-coupon U.S. Treasury bonds with a term approximating the expected life of the respective options. (4) The expected dividend yield assumption was determined in view of CBIZ’s historical and estimated dividend payouts. CBIZ does not expect to change its dividend payout policy in the foreseeable future. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share from Continuing Operations | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the three and six months ended June 30, 2016 and 2015 (in thousands, except per share data). Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Income from continuing operations $ 8,387 $ 6,685 $ 30,185 $ 26,188 Denominator: Basic Weighted average common shares outstanding 52,031 49,464 51,802 48,809 Diluted Stock options (1) 814 868 811 829 Restricted stock awards (1) 229 224 283 290 Contingent shares (2) 5 118 5 118 Convertible senior subordinated notes (3) — 1,350 — 1,181 Diluted weighted average common shares outstanding 53,079 52,024 52,901 51,227 Basic earnings per share from continuing operations $ 0.16 $ 0.14 $ 0.58 $ 0.54 Diluted earnings per share from continuing operations $ 0.16 $ 0.13 $ 0.57 $ 0.51 (1) A total of 1.7 million and 1.5 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2016, respectively, and a total of 1.5 million and 1.2 million share based awards were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2015, respectively, as their effect would be anti-dilutive. (2) Contingent shares represent additional shares to be issued for purchase price earned by former owners of businesses acquired by CBIZ. (3) The dilutive impact of potential shares to be issued upon conversion of the 2010 Notes is not applicable to the six months ended June 30, 2016 due to the maturation of the 2010 Notes in the fourth quarter of 2015. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and the liabilities assumed during the six months ended June 30, 2015 are as follows (in thousands): Six Months Ended June 30, 2015 Cash $ — Accounts receivable, net — Work in process, net — Other assets — Identifiable intangible assets 2,844 Current liabilities — Total identifiable net assets $ 2,844 Goodwill 6,865 Aggregate purchase price $ 9,709 |
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The estimated fair values of the assets acquired and the liabilities assumed during the six months ended June 30, 2016 are as follows (in thousands): Six Months Ended June 30, 2016 Cash $ 6 Accounts receivable, net 5,313 Funds held for clients 37,230 Property and equipment, net 383 Other assets 172 Identifiable intangible assets 17,755 Current liabilities (378 ) Client fund obligations (37,230 ) Total identifiable net assets $ 23,251 Goodwill 26,471 Aggregate purchase price $ 49,722 |
Discontinued Operations and D33
Discontinued Operations and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Member] | |
Loss from Discontinued Operations, Net of Tax | Revenue and results from operations of discontinued operations for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue $ — $ 2,579 $ — $ 5,994 Loss from discontinued operations before income tax $ (437 ) $ (489 ) $ (488 ) $ (993 ) Income tax benefit (179 ) (159 ) (200 ) (328 ) Loss from discontinued operations, net of tax $ (258 ) $ (330 ) $ (288 ) $ (665 ) |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information for the three months ended June 30, 2016 and 2015 was as follows (in thousands): Three Months Ended June 30, 2016 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 122,856 $ 66,484 $ 7,675 $ — $ 197,015 Operating expenses 106,987 56,344 7,005 3,660 173,996 Gross margin 15,869 10,140 670 (3,660 ) 23,019 Corporate general & admin — — — 8,346 8,346 Operating income (loss) 15,869 10,140 670 (12,006 ) 14,673 Other income (expense): Interest expense — (10 ) — (1,723 ) (1,733 ) Gain on sale of operations, net — — — 50 50 Other (expense) income, net (27 ) 84 1 645 703 Total other (expense) income (27 ) 74 1 (1,028 ) (980 ) Income (loss) from continuing operations before income tax expense $ 15,842 $ 10,214 $ 671 $ (13,034 ) $ 13,693 Three Months Ended June 30, 2015 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 116,671 $ 61,024 $ 7,347 $ — $ 185,042 Operating expenses 102,345 51,242 6,649 2,881 163,117 Gross margin 14,326 9,782 698 (2,881 ) 21,925 Corporate general & admin — — — 6,615 6,615 Operating income (loss) 14,326 9,782 698 (9,496 ) 15,310 Other income (expense): Interest expense — (11 ) — (2,837 ) (2,848 ) Gain on sale of operations, net — — — 45 45 Other income (expense), net 8 82 1 (1,217 ) (1,126 ) Total other income (expense) 8 71 1 (4,009 ) (3,929 ) Income (loss) from continuing operations before income tax expense $ 14,334 $ 9,853 $ 699 $ (13,505 ) $ 11,381 Segment information for the nine months ended June 30, 2016 and 2015 was as follows (in thousands): Six Months Ended June 30, 2016 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 275,063 $ 130,811 $ 15,379 $ — $ 421,253 Operating expenses 220,484 110,024 13,882 7,723 352,113 Gross margin 54,579 20,787 1,497 (7,723 ) 69,140 Corporate general & admin — — — 18,591 18,591 Operating income (loss) 54,579 20,787 1,497 (26,314 ) 50,549 Other income (expense): Interest expense — (20 ) — (3,239 ) (3,259 ) Gain on sale of operations, net — — — 151 151 Other income, net 227 158 1 2,464 2,850 Total other income (expense) 227 138 1 (624 ) (258 ) Income (loss) from continuing operations before income tax expense $ 54,806 $ 20,925 $ 1,498 $ (26,938 ) $ 50,291 Six Months Ended June 30, 2015 Financial Services Employee Services National Practices Corporate and Other Total Revenue $ 260,503 $ 123,675 $ 14,730 $ — $ 398,908 Operating expenses 210,963 102,770 13,250 6,998 333,981 Gross margin 49,540 20,905 1,480 (6,998 ) 64,927 Corporate general & admin — — — 16,480 16,480 Operating income (loss) 49,540 20,905 1,480 (23,478 ) 48,447 Other income (expense): Interest expense — (20 ) — (5,805 ) (5,825 ) Gain on sale of operations, net — — — 101 101 Other income, net 107 199 1 1,426 1,733 Total other income (expense) 107 179 1 (4,278 ) (3,991 ) Income (loss) from continuing operations before income tax expense $ 49,647 $ 21,084 $ 1,481 $ (27,756 ) $ 44,456 |
Other Comprehensive (Loss) In35
Other Comprehensive (Loss) Income - Summary of Other Comprehensive (Loss) Income and Tax Impact (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | ||||
Net unrealized gain (loss) on available-for-sale securities, net of income taxes | $ 112 | $ (114) | $ 343 | $ (7) |
Net unrealized (loss) gain on interest rate swaps, net of income taxes | (231) | 34 | (763) | 79 |
Foreign currency translation | (11) | (12) | (21) | (26) |
Total other comprehensive income (loss) | $ (130) | $ (92) | $ (441) | $ 46 |
Accounts Receivable, Net - Acco
Accounts Receivable, Net - Accounts Receivables Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Receivable Net Current [Abstract] | ||
Trade accounts receivable | $ 136,653 | $ 118,916 |
Unbilled revenue | 70,190 | 47,351 |
Total accounts receivable | 206,843 | 166,267 |
Allowance for doubtful accounts | (13,688) | (12,659) |
Accounts receivable, net | $ 193,155 | $ 153,608 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets, Net - Components of Goodwill and Other Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 474,095 | $ 447,685 |
Intangible assets: | ||
Total intangible assets | 173,654 | 154,683 |
Total goodwill and intangibles assets | 647,749 | 602,368 |
Accumulated amortization: | ||
Total accumulated amortization | (74,727) | (66,715) |
Goodwill and other intangible assets, net | 573,022 | 535,653 |
Client Lists [Member] | ||
Intangible assets: | ||
Total intangible assets | 165,882 | 147,706 |
Accumulated amortization: | ||
Total accumulated amortization | (72,505) | (65,037) |
Other Intangible Assets [Member] | ||
Intangible assets: | ||
Total intangible assets | 7,772 | 6,977 |
Accumulated amortization: | ||
Total accumulated amortization | $ (2,222) | $ (1,678) |
Depreciation and Amortization -
Depreciation and Amortization - Depreciation and Amortization Expense for Property and Equipment and Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | $ 5,437 | $ 5,064 | $ 10,682 | $ 10,051 |
Operating Expenses [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | 5,322 | 4,956 | 10,452 | 9,847 |
Corporate General and Administrative Expenses [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | $ 115 | $ 108 | $ 230 | $ 204 |
Debt and Financing Arrangemen39
Debt and Financing Arrangements - Additional Information (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Unsecured credit facility | $ 400 |
Debt and Financing Arrangemen40
Debt and Financing Arrangements (Bank Debt) - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)Bank | Dec. 31, 2015USD ($) | ||
Debt Instrument [Line Items] | |||
Unsecured credit facility | $ 400,000 | ||
Group of participating banks | Bank | 8 | ||
Outstanding balance under applicable credit facility | [1] | $ 235,500 | $ 205,800 |
Approximately available funds under credit facility | 84,500 | ||
Letter of Credit and Performance Guarantee [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit and performance guarantees | 2,300 | ||
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured credit facility | $ 400,000 | ||
[1] | See Note 15 to accompanying consolidated financial statements for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 15). |
Debt and Financing Arrangemen41
Debt and Financing Arrangements - Summary of Unsecured Credit Facility (Detail) | Jun. 30, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
Weighted average rates | 2.38% | 2.17% |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Range of effective rates | 1.82% | 1.88% |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Range of effective rates | 3.50% | 3.25% |
Debt and Financing Arrangemen42
Debt and Financing Arrangements (2006 Notes) - Additional Information (Detail) - 2006 Convertible Senior Subordinated Notes [Member] $ in Thousands | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Aggregate outstanding principal amount | $ 750 |
Interest rate on Notes | 3.125% |
Debt and Financing Arrangemen43
Debt and Financing Arrangements - Summary of Recognized Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Total interest expense | $ 1,733 | $ 2,848 | $ 3,259 | $ 5,825 |
Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | 1,731 | 1,165 | 3,251 | 2,216 |
2010 Convertible Senior Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | 1,677 | 3,597 | ||
2006 Convertible Senior Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | $ 2 | $ 6 | $ 8 | $ 12 |
Debt and Financing Arrangemen44
Debt and Financing Arrangements - Summary of Recognized Interest Expense (Parenthetical) (Detail) | Jun. 30, 2016 |
2010 Convertible Senior Subordinated Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate on Notes | 4.875% |
Debt and Financing Arrangemen45
Debt and Financing Arrangements (2010 Notes) - Additional Information (Detail) - 2010 Convertible Senior Subordinated Notes [Member] - USD ($) | Oct. 01, 2015 | Oct. 30, 2015 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Conversion rate per $ 1,000 principal of convertible notes | $ 1,000 | ||
Conversion value of Notes | $ 71,800,000 | ||
Maturity date of notes | Oct. 1, 2015 |
Commitments and Contingencies (
Commitments and Contingencies (Letters of Credit and Guarantees) - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments And Contingencies [Line Items] | ||
License bonds outstanding amount | $ 2.4 | $ 2.3 |
Letters of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Letters of credit outstanding | $ 2.3 | $ 2.3 |
Commitments and Contingencies47
Commitments and Contingencies (Legal Proceedings) - Additional Information (Detail) - Baldino Group [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)Plaintiff | |
Commitments And Contingencies [Line Items] | |
Number of Plaintiffs | Plaintiff | 2 |
Damages sought amount | $ | $ 16 |
Financial Instruments (Bonds) -
Financial Instruments (Bonds) - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Corporate and municipal bonds | $ 41.6 | $ 40.8 |
Maturity dates of bonds, start date | 2016-04 | |
Maturity dates of bonds, end date | 2021-10 |
Financial Instruments - Summary
Financial Instruments - Summary of Bond Activity (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Fair value at beginning of period | $ 43,142 | $ 38,399 |
Purchases | 4,963 | 15,429 |
Redemptions | (1,490) | (987) |
Maturities | (3,257) | (9,677) |
Increase in bond premium | (205) | 172 |
Fair market value adjustment | 572 | (194) |
Fair value at end of period | $ 43,725 | $ 43,142 |
Financial Instruments - Summa50
Financial Instruments - Summary of Outstanding Interest Rate Swaps (Detail) - Interest Rate Swap [Member] - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 60,000,000 | |
Fair Value | $ (972,000) | |
Other Non-current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 50,000,000 | |
Fair Value | $ 240,000 |
Financial Instruments - Summa51
Financial Instruments - Summary of Outstanding Interest Rate Swaps (Parenthetical) (Detail) - Interest Rate Swap [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Interest rate swap, description of interest received | Interest that varies with the one-month LIBOR | |
Derivative, Type of Interest Rate Paid on Swap | Fixed | |
Maturity Tenure Two Years [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | $ 10,000,000 | |
Interest rate swap, fixed interest rate | 0.885% | |
Maturity Tenure Three Years [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | $ 15,000,000 | |
Interest rate swap, fixed interest rate | 1.155% | |
Maturity Tenure Five Years [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | $ 10,000,000 | $ 25,000,000 |
Interest rate swap, fixed interest rate | 1.12% | 1.30% |
Derivative, Type of Interest Rate Paid on Swap | Fixed |
Financial Instruments - Summa52
Financial Instruments - Summary of Effects of Interest Rate Swaps (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives, Fair Value [Line Items] | ||||
Gain Recognized in AOCL, net of tax | $ (231) | $ 34 | $ (763) | $ 79 |
Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain Recognized in AOCL, net of tax | (231) | 34 | (763) | 79 |
Loss Reclassified from AOCL into Expense | $ (110) | $ 55 | $ 215 | $ 128 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Corporate and municipal bonds | $ 43,725 | $ 43,142 | $ 38,399 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | 68,040 | 64,245 | |
Corporate and municipal bonds | 43,725 | 43,142 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | (972) | 240 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent purchase price liabilities | $ (32,948) | $ (24,817) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Measurements, Inter-transfers between Levels | $ 0 | $ 0 |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Business Combination Contingent Consideration Liability Extended Term | 2 years | |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Business Combination Contingent Consideration Liability Extended Term | 6 years |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Level 3 Fair Values of Contingent Purchase Price Liabilities (Detail) - Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ (24,817) | |
Ending balance | (32,948) | |
Contingent Purchase Price Liabilities [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | (24,817) | $ (33,368) |
Additions from business acquisitions | (15,088) | (4,186) |
Settlement of contingent purchase price liabilities | 6,349 | 5,622 |
Change in fair value of contingencies | 714 | 1,400 |
Change in net present value of contingencies | (106) | (79) |
Ending balance | $ (32,948) | $ (30,611) |
Other Comprehensive (Loss) In56
Other Comprehensive (Loss) Income - Summary of Other Comprehensive (Loss) Income and Tax Impact (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | ||||
Unrealized gain(loss)on available for sale securities, income tax expense (benefit) | $ 75 | $ (76) | $ 167 | $ (5) |
Unrealized gain (loss) on interest rate swaps, income tax expense | $ (136) | $ 20 | $ (448) | $ 46 |
Other Comprehensive (Loss) In57
Other Comprehensive (Loss) Income - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Accumulated other comprehensive loss | $ (1,074) | $ (633) |
Employer Share Plans - Addition
Employer Share Plans - Additional Information (Detail) shares in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | Jun. 30, 2016shares | |
Compensation And Retirement Disclosure [Abstract] | ||
Maximum stock based compensation awards granted under the plan | shares | 9.6 | 9.6 |
Stock awards expiry | 2,024 | |
Fair value of stock options granted | $ / shares | $ 2.40 |
Employer Share Plans - Schedule
Employer Share Plans - Schedule of Share-Based Compensation Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Stock options | $ 564 | $ 534 | $ 1,143 | $ 1,375 |
Restricted stock awards | 869 | 755 | 1,699 | 1,536 |
Total stock-based compensation expense | $ 1,433 | $ 1,289 | $ 2,842 | $ 2,911 |
Employer Share Plans - Stock Aw
Employer Share Plans - Stock Award Activity (Detail) shares in Thousands | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding Beginning balance, Number of Options | shares | 4,885 |
Granted, Number of Options | shares | 654 |
Exercised or released, Number of Options | shares | (510) |
Expired or canceled, Number of Options | shares | (24) |
Outstanding Ending balance, Number of Options | shares | 5,005 |
Exercisable Ending balance, Number of Options | shares | 2,810 |
Outstanding Beginning balance, Weighted Average Exercise Price Per Share | $ / shares | $ 7.50 |
Granted, Weighted Average Exercise Price Per Share | $ / shares | 10.35 |
Exercised or released, Weighted Average Exercise Price Per Share | $ / shares | 6.92 |
Expired or canceled, Weighted Average Exercise Price Per Share | $ / shares | 7.47 |
Outstanding Ending balance, Weighted Average Exercise Price Per Share | $ / shares | 7.94 |
Exercisable Ending balance, Weighted Average Exercise Price | $ / shares | $ 7.13 |
Restricted Stock Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding Beginning balance, Number of shares | shares | 962 |
Granted, Number of shares | shares | 305 |
Exercised or released, Number of shares | shares | (426) |
Expired or canceled, Number of Shares | shares | (3) |
Outstanding Ending balance, Number of shares | shares | 838 |
Outstanding Beginning balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 8.08 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 10.37 |
Exercised or Released, Weighted Average Grant-Date Fair Value | $ / shares | 7.64 |
Expired or Canceled, Weighted Average Grant-Date Fair Value | $ / shares | 7.66 |
Outstanding Ending balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 9.13 |
Employer Share Plans - Schedu61
Employer Share Plans - Schedule of Fair Value Option Award Weighted Average Assumptions Used (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |
Expected volatility | 24.88% |
Expected option life (years) | 4 years 7 months 13 days |
Risk-free interest rate | 1.12% |
Expected dividend yield | 0.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share for Continuing Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Income from continuing operations | $ 8,387 | $ 6,685 | $ 30,185 | $ 26,188 |
Basic | ||||
Weighted average common shares outstanding | 52,031 | 49,464 | 51,802 | 48,809 |
Diluted | ||||
Stock options | 814 | 868 | 811 | 829 |
Restricted stock awards | 229 | 224 | 283 | 290 |
Contingent shares | 5 | 118 | 5 | 118 |
Convertible senior subordinated notes | 1,350 | 1,181 | ||
Diluted weighted average common shares outstanding | 53,079 | 52,024 | 52,901 | 51,227 |
Basic earnings per share from continuing operations | $ 0.16 | $ 0.14 | $ 0.58 | $ 0.54 |
Diluted earnings per share from continuing operations | $ 0.16 | $ 0.13 | $ 0.57 | $ 0.51 |
Earnings Per Share - Computat63
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share for Continuing Operations (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock Compensation Plan [Member] | ||||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share based awards excluded from the calculation of diluted earnings per share | 1.7 | 1.5 | 1.5 | 1.2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)BusinessClient_Listshares | Jun. 30, 2015USD ($)Client_Listshares | Dec. 31, 2015USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Number of businesses acquired | Business | 3 | ||
Consideration paid in cash | $ 100 | ||
Contingent consideration | $ 15,100 | 3,000 | |
Goodwill | 474,095 | $ 447,685 | |
Guaranteed future consideration | 300 | ||
Fair value of contingent consideration | 700 | 1,500 | |
Consideration paid in cash | $ 4,100 | $ 4,800 | |
Number of common stock issued | shares | 220,000 | 91,000 | |
Employee Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 6,900 | ||
Number of client list purchased | Client_List | 3 | ||
Contingent Purchase Price Liability Current [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration | $ 4,400 | ||
Contingent Purchase Price Liability Non-current [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration | 10,700 | ||
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Consideration paid in cash | 33,000 | ||
Consideration paid in common stock | 1,600 | ||
Contingent consideration | 15,100 | ||
Goodwill | 26,500 | ||
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | Employee Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 25,500 | ||
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | Financial Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 1,000 | ||
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 26,471 | ||
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | Employee Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 26,500 | ||
Acquisition of Client Lists [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Consideration paid in cash | 200 | ||
Contingent consideration | $ 700 | ||
Number of client list purchased | Client_List | 3 | ||
Guaranteed future consideration | $ 1,000 | ||
Acquisition of Client Lists [Member] | Employee Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Number of client list purchased | Client_List | 2 | ||
Acquisition of Client Lists [Member] | Financial Services [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Number of client list purchased | Client_List | 1 | ||
Model Consulting, Inc [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Consideration paid in cash | $ 5,500 | ||
Contingent consideration | $ 4,200 | ||
Goodwill | $ 6,865 |
Acquisitions (First Quarter 201
Acquisitions (First Quarter 2016) - Additional Information (Detail) - Millimaki Eggert, L.L.P [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | |
Effective date of acquisition | Jan. 1, 2016 |
Acquired entity, name | Millimaki Eggert, L.L.P. |
Annual revenue | $ 2.4 |
Acquisitions (Second Quarter 20
Acquisitions (Second Quarter 2016) - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)Client | |
Savitz Organization [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Effective date of acquisition | Apr. 1, 2016 |
Acquired entity, name | Savitz Organization |
Annual revenue | $ 20 |
Flex-Pay Business Services, Inc. [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Effective date of acquisition | Jun. 1, 2016 |
Acquired entity, name | Flex-Pay Business Services, Inc |
Estimated revenue | $ 10 |
Flex-Pay Business Services, Inc. [Member] | Minimum [Member] | |
Business Acquisition, Contingent Consideration [Line Items] | |
Number of clients of acquired entity | Client | 3,600 |
Acquisitions - Schedule of Esti
Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||
Funds held for clients | $ 205,867 | $ 171,497 | |
Goodwill | 474,095 | $ 447,685 | |
Millimaki Eggert, L.L.P., (“Millimaki”), The Savitz Organization, (“Savitz”) and Flex-Pay Business Services, Inc., (“Flex-Pay”) [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 6 | ||
Accounts receivable, net | 5,313 | ||
Funds held for clients | 37,230 | ||
Property and equipment, net | 383 | ||
Other assets | 172 | ||
Identifiable intangible assets | 17,755 | ||
Current liabilities | (378) | ||
Client fund obligations | (37,230) | ||
Total identifiable net assets | 23,251 | ||
Goodwill | 26,471 | ||
Aggregate purchase price | $ 49,722 | ||
Model Consulting, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 2,844 | ||
Total identifiable net assets | 2,844 | ||
Goodwill | 6,865 | ||
Aggregate purchase price | $ 9,709 |
Acquisitions (First Quarter 268
Acquisitions (First Quarter 2015) - Additional Information (Detail) - Model Consulting, Inc [Member] | 6 Months Ended |
Jun. 30, 2016 | |
Business Acquisition, Contingent Consideration [Line Items] | |
Effective date of acquisition | Mar. 1, 2015 |
Acquired entity, name | Model Consulting, Inc. |
Discontinued Operations and D69
Discontinued Operations and Divestitures - Additional Information (Detail) $ in Millions | Jun. 01, 2015Business | Dec. 31, 2014Office | Jun. 30, 2016USD ($)Office | Jun. 30, 2015USD ($)Office |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Number of business divestiture | 0 | 0 | ||
Gain from the sale of its individual wealth management business | $ | $ 0.1 | $ 0.1 | ||
Financial Services [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Number of business divestiture | 2 | |||
Number of businesses sold | Business | 1 |
Discontinued Operations and D70
Discontinued Operations and Divestitures - Loss from Discontinued Operations, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Revenue | $ 2,579 | $ 5,994 | ||
Loss from discontinued operations before income tax | $ (437) | (489) | $ (488) | (993) |
Income tax benefit | (179) | (159) | (200) | (328) |
Loss from discontinued operations, net of tax | $ (258) | $ (330) | $ (288) | $ (665) |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Practice_Groups | |
Segment Reporting [Abstract] | |
Number of business units of the company | 3 |
Segment Disclosures - Summary o
Segment Disclosures - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 197,015 | $ 185,042 | $ 421,253 | $ 398,908 |
Operating expenses | 173,996 | 163,117 | 352,113 | 333,981 |
Gross margin | 23,019 | 21,925 | 69,140 | 64,927 |
Corporate general & admin | 8,346 | 6,615 | 18,591 | 16,480 |
Operating income | 14,673 | 15,310 | 50,549 | 48,447 |
Other income (expense): | ||||
Interest expense | (1,733) | (2,848) | (3,259) | (5,825) |
Gain on sale of operations, net | 50 | 45 | 151 | 101 |
Other (expense) income, net | 703 | (1,126) | 2,850 | 1,733 |
Total other expense, net | (980) | (3,929) | (258) | (3,991) |
Income from continuing operations before income tax expense | 13,693 | 11,381 | 50,291 | 44,456 |
Operating Segments [Member] | Financial Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 122,856 | 116,671 | 275,063 | 260,503 |
Operating expenses | 106,987 | 102,345 | 220,484 | 210,963 |
Gross margin | 15,869 | 14,326 | 54,579 | 49,540 |
Operating income | 15,869 | 14,326 | 54,579 | 49,540 |
Other income (expense): | ||||
Other (expense) income, net | (27) | 8 | 227 | 107 |
Total other expense, net | (27) | 8 | 227 | 107 |
Income from continuing operations before income tax expense | 15,842 | 14,334 | 54,806 | 49,647 |
Operating Segments [Member] | Employee Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,484 | 61,024 | 130,811 | 123,675 |
Operating expenses | 56,344 | 51,242 | 110,024 | 102,770 |
Gross margin | 10,140 | 9,782 | 20,787 | 20,905 |
Operating income | 10,140 | 9,782 | 20,787 | 20,905 |
Other income (expense): | ||||
Interest expense | (10) | (11) | (20) | (20) |
Other (expense) income, net | 84 | 82 | 158 | 199 |
Total other expense, net | 74 | 71 | 138 | 179 |
Income from continuing operations before income tax expense | 10,214 | 9,853 | 20,925 | 21,084 |
Operating Segments [Member] | National Practices [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,675 | 7,347 | 15,379 | 14,730 |
Operating expenses | 7,005 | 6,649 | 13,882 | 13,250 |
Gross margin | 670 | 698 | 1,497 | 1,480 |
Operating income | 670 | 698 | 1,497 | 1,480 |
Other income (expense): | ||||
Other (expense) income, net | 1 | 1 | 1 | 1 |
Total other expense, net | 1 | 1 | 1 | 1 |
Income from continuing operations before income tax expense | 671 | 699 | 1,498 | 1,481 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating expenses | 3,660 | 2,881 | 7,723 | 6,998 |
Gross margin | (3,660) | (2,881) | (7,723) | (6,998) |
Corporate general & admin | 8,346 | 6,615 | 18,591 | 16,480 |
Operating income | (12,006) | (9,496) | (26,314) | (23,478) |
Other income (expense): | ||||
Interest expense | (1,723) | (2,837) | (3,239) | (5,805) |
Gain on sale of operations, net | 50 | 45 | 151 | 101 |
Other (expense) income, net | 645 | (1,217) | 2,464 | 1,426 |
Total other expense, net | (1,028) | (4,009) | (624) | (4,278) |
Income from continuing operations before income tax expense | $ (13,034) | $ (13,505) | $ (26,938) | $ (27,756) |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Deferred income taxes, net | $ 4,796 |
Debt issuance costs reclassified to bank debt to retrospectively apply new accounting standard | 1,900 |
Accounting Standards Update 2015-17 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Net non-current deferred income tax liability that would have been recorded had a new standard been adopted | 100 |
Deferred income taxes, net | $ 4,700 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Jul. 01, 2016USD ($) |
Subsequent Event [Member] | Ed Jacobs & Associates Inc [Member] | |
Subsequent Event [Line Items] | |
Estimated revenue | $ 2.1 |