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Summary of Significant Accounting Policies

CBIZ, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Selected Terms Used in Notes to the Consolidated Financial Statements

ASA – Administrative Service Agreement.

ASC – Accounting Standards Codification.

ASU – Accounting Standards Update

CPA firm – Certified Public Accounting firm.

FASB – The Financial Accounting Standards Board.

GAAP – United States Generally Accepted Accounting Principles.

LIBOR – London Interbank Offered Rate.

Legacy ASC Topic 840 – ASC Topic 840, Leases.

New Lease Standard – ASU No. 2016-12, Leases.

ROU – Right-of-Use Asset.

SEC – United States Securities and Exchange Commission.

Tax Act – Tax Cuts and Jobs Act of 2017.

Topic 220 – ASU No. 2018-02, Income Statement – Reporting Comprehensive Income.

Topic 606 – ASU No. 2014-09, Revenue from Contracts with Customers.

Topic 815 – ASU No. 2017-12, Derivatives and Hedging.

Description of Business: CBIZ, Inc. is a diversified services company which, acting through its subsidiaries, has been providing professional business services since 1996, primarily to small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises throughout the United States and parts of Canada. CBIZ, Inc. manages and reports its operations along three practice groups; Financial Services, Benefits and Insurance Services and National Practices. A further description of products and services offered by each of the practice groups is provided in Note 16, Segment Disclosures, to the accompanying consolidated financial statements.

Basis of Consolidation: The accompanying unaudited condensed consolidated financial statements include the operations of CBIZ, Inc. and all of its wholly-owned subsidiaries (“CBIZ”, the “Company”, “we”, “us”, or “our”), after elimination of all intercompany balances and transactions. These condensed 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.

Unaudited Interim Financial Statements: The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial condition, results of operations, and cash flows for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2018.

Use of Estimates: The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Changes in circumstances could cause actual results to differ materially from these estimates.

Changes in Accounting Policies: We have consistently applied the accounting policies for the periods presented as described in Note 1, Basis of Presentation and Significant Accounting Policies, to the consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Effective January 1, 2019, we have changed our accounting policy for the New Lease Standard as described below in Note 2, New Accounting Pronouncements.

Revision of Previously Reported Financial Information: The Company has corrected an immaterial error related to the presentation of cash equivalents on the condensed Consolidated Statement of Cash Flows related to amounts included within funds held for clients. The correction resulted in a decrease of $57.2 million of cash used in investing activities for the period ended March 31, 2018, an increase of $148.8 million of cash, cash equivalents and restricted cash at January 1, 2018 and an increase of $91.6 million of cash, cash equivalents and restricted cash as of March 31, 2018 as reflected on the Consolidated Statement of Cash Flows.

New Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

NOTE 2. New Accounting Pronouncements

FASB ASC is the sole source of authoritative GAAP other than the SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an accounting standard to communicate changes to the FASB codification. We assess and review the impact of all accounting standards. Any accounting standards not listed below were reviewed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.

Accounting Standards Adopted in 2019

Leases: Effective January 1, 2019, we adopted the New Lease Standard using the modified retrospective method of applying the new standard at the adoption date. We elected the package of practical expedients permitted under the transition guidance which allowed us to carry forward historical lease classifications. The adoption of the New Lease Standard had a significant impact on our consolidated balance sheet and resulted in the recording of the operating lease ROU assets and corresponding operating lease liabilities. The consolidated balance sheet prior to January 1, 2019 was not restated and continues to be reported under the Legacy ASC Topic 840, which did not require the recognition of operating lease ROU assets and liabilities. The expense recognition for operating leases and finance leases under the New Lease Standard is consistent with the Legacy ASC Topic 840, therefore, as a result, there is no significant impact on our results of operations, liquidity or debt covenant compliance under our current credit agreements.

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Office facilities account for approximately 96% of our total leases. The lease liability for our office facilities is based on the present value of the remaining minimum lease payments, discounted utilizing our secured incremental borrowing rate at the effective date of January 1, 2019. Other leases consist primarily of information technology equipment and automobiles. The lease liability for our information technology equipment and automobiles is based on the present value of the remaining minimum lease payments, discounted utilizing our incremental borrowing rate at the effective date of January 1, 2019. For office facilities, technology equipment and automobiles, the Company has elected not to separate lease and non-lease components.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income: On January 1, 2019, we adopted ASU 2018-02 which provides the optional election for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The adoption of

Topic 220 resulted in a reclassification between accumulated other comprehensive income and retained earnings of $0.1 million, and had no impact on our consolidated results of operations.

Derivatives and Hedging: On January 1, 2019, we adopted Topic 815 which improved and simplified accounting rules for hedge accounting to better present the economic results of an entity’s risk management activities in its financial statements and improves the disclosures of hedging arrangements. The adoption of Topic 815 did not have a material impact on our consolidated financial position or results of operations.

Recently Issued Accounting Standards

Internal-Use Software: In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a service contract hosting arrangement with those of developing or obtaining internal-use software. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. We do not expect this guidance to have a material impact on our consolidated financial position or results of operations.

Fair Value Measurement: In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This standard amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. ASU No. 2018-13 will be effective for us as of January 1, 2020, with early adoption permitted. We are currently reviewing the effect of this new standard on our consolidated financial statements.

Revenue

3 Months Ended

Mar. 31, 2019

Revenue

Note 3. Revenue

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended March 31, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	185,144	$	—	$	—	$	185,144
Core Benefits and Insurance		—		73,538		—		73,538
Non-core Benefits and Insurance		—		2,717		—		2,717
Managed networking, hardware services		—		—		6,424		6,424
National Practices consulting		—		—		2,175		2,175
Total revenue	$	185,144	$	76,255	$	8,599	$	269,998

	Three Months Ended March 31, 2018
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	180,603	$	—	$	—	$	180,603
Core Benefits and Insurance		—		74,122		—		74,122
Non-core Benefits and Insurance		—		3,208		—		3,208
Managed networking, hardware services		—		—		5,958		5,958
National Practices consulting		—		—		1,969		1,969
Other		—		—		230		230
Total revenue	$	180,603	$	77,330	$	8,157	$	266,090

Financial Services

Revenue primarily consists of professional service fees derived from traditional accounting services, tax return preparation, administrative services, financial and risk advisory, consulting and valuation services. Clients are billed for these services based upon a fixed-fee, an hourly rate, or an outcome-based fee. Time related to the performance of all services is maintained in a time and billing system.

Revenue for fixed-fee arrangements is recognized over time with progress measured in hours worked and anticipated realization. Anticipated realization is defined as the fixed fee divided by the product of the hours anticipated to complete a performance obligation and the standard billing rate. Anticipated realization rates are applied to hours charged to a contract when recognizing revenue. At the end of each reporting period, we evaluate

the work performed to date to ensure that the amount of revenue recognized in each reporting period for the client arrangement is equal to the performance obligations met.

Time and expense arrangement revenue is recognized over time with progress measured towards completion with value being transferred through our hourly fee arrangement at expected net realizable rates per hour, plus agreed-upon out-of-pocket expenses. The cumulative impact on any subsequent revision in the estimated realizable value of unbilled fees for a particular client project is reflected in the period in which the change becomes known.

We applied the guidance of Topic 606 in determining the appropriate accounting for outcome-based arrangements. Prior to recognizing revenue, we estimate the transaction price, including variable consideration that is subject to a constraint based on risks specific to the arrangement. We evaluate the estimate in each reporting period and recognize revenue to the extent it is probable that a significant reversal of revenue will not occur. Revenue is recognized when the constraint is lifted at a point in time when the value is determined and verified by a third party.

Benefits and Insurance Services

Core Benefits and Insurance consists of group health benefits consulting, property and casualty, retirement plan services and payroll processing services. Revenue consists primarily of fee income for administering health and retirement plans and brokerage and agency commissions. Revenue also includes investment income related to client payroll funds that are held in CBIZ accounts, as is industry practice. Under the revenue recognition standard, the cost to obtain a contract must be capitalized unless the contract period is one year or less. We pay commissions monthly and require the recipient of the commission to be employed by us at the time of the payment. Failure to remain employed at the date the commission is payable results in the forfeiture of commissions that would otherwise be due. Therefore, we have determined that the requirement of continued employment is substantive and accordingly, do not consider the commissions to be incremental costs of obtaining the customer contract and consequently a contract acquisition cost is not recognized for those commissions.

Revenue related to group health benefits consulting consists of (i) commissions, (ii) fee income which can be fixed or variable based on a price per participant and (iii) contingent revenue.

•

Commission revenue and fee income are recognized over the contract period as these services are provided to clients continuously throughout the term of the arrangement. Our customers benefit from each month of service on its own and although volume and the number of participants may differ month to month, the obligation to perform substantially remains the same.

•

Contingent revenue arrangements are related to carrier-based performance targets. Due to the uncertainty of the outcome and the probability that a change in estimate would result in a significant reversal, we have applied a constraint on estimating revenue. Revenue is recognized when the constraint has been lifted which is the earlier of written notification that the target has been achieved or cash collection. Contingent revenue is not a significant revenue stream to our consolidated financial position or results of operations.

Revenue related to property and casualty consists of (i) commissions and (ii) contingent revenue.

•

Commissions relating to agency billing arrangements (pursuant to which we bill the insured, collect the funds and forward the premium to the insurance carrier less our commission) and direct billing arrangements (pursuant to which the insurance carrier bills the insured directly and forwards the commission to us) are both recognized on the effective date of the policy. Commission revenue is reported net of reserves for estimated policy cancellations and terminations. The cancellation and termination reserve is based upon estimates and assumptions using historical cancellation and termination experience and other current factors to project future experience.

•

Contingent revenue arrangements related to carrier-based performance targets include claim loss experience and other factors. Due to the uncertainty of the outcome and the probability that a change in estimate would result in a significant reversal, we have applied a constraint on estimating revenue. Revenue will be recognized when the constraint has been lifted which is the earlier of written notification that the target has been achieved or cash collection. Contingent revenue is not a significant revenue stream to our consolidated financial position or results of operations

Revenue related to retirement plan services consist of (i) advisory, (ii) third party administration, and (iii) actuarial services.

•

Advisory revenue is based on the value of assets under management, as provided by a third party, multiplied by an agreed upon rate. Advisory services revenue is calculated monthly or quarterly based on the estimated value of assets under management, as it is earned over the duration of the reporting period and relates to

performance obligations satisfied during that period. The variability related to the estimated asset values used to recognize revenue during the reporting period is resolved and the amount of related revenue recognized is adjusted when the actual value of assets under management is known.

•

Third party administration revenue is recognized over the contract period as these services are provided to clients continuously throughout the term of the arrangement. Our clients benefit from each month of service on its own and although volume may differ month to month, the obligation to perform substantially remains the same.

•

Actuarial revenue is recognized over the contract period with performance measured in hours in relation to the expected total hours. Under certain defined benefit plan administration arrangements, we charge new clients an initial, non-refundable, set-up fee as part of a multi-year service agreement. Revenue related to the set-up fees is deferred and recognized over the life of the contract or the expected customer relationship, whichever is longer.

Revenue related to payroll processing consists of a (i) fixed fee or (ii) variable fee based on a price per employee or check processed. Revenue is recognized when the actual payroll processing occurs. Our customers benefit from each month of service on its own and although volume and the variability may differ month to month, the obligation to perform substantially remains the same.

Non-core Benefits and Insurance Services consist of transactional businesses that tend to fluctuate. These include life insurance, wholesale agency benefits and talent and compensation services.

National Practices

Managed networking, hardware services revenue consists of installation, maintenance and repair of computer hardware. These services are charged to a single customer based on cost plus an agreed-upon markup percentage contract, which has existed since 1999.

National Practices consulting revenue is based upon a fixed fee, an hourly rate, or a percentage of savings. Revenue for fixed fee and time and expense arrangements is recognized over the performance period based upon actual hours incurred.

Transaction Price Allocated to Future Obligations – We are required to disclose the aggregate amount of transaction price allocated to performance obligations that have not yet been satisfied as of the reporting date. The guidance provides certain practical expedients that limit this requirement, including performance obligations that are part of a contract that has the duration of one year or less. Since the majority of our contracts are one year or less in duration, we have applied this practical expedient related to quantifying remaining performance obligations. In regards to contracts with terms in excess of one year, certain contract periods related to our government healthcare consulting, group health and benefits consulting, and property and casualty insurance businesses have an original specified contract duration in excess of one year, however, the agreements provide CBIZ and the client with the right to cancel or terminate the contract with no substantial penalty. We have applied the provisions of Topic 606 and the FASB Transition Resource Group memo number 10-14, and note that the definition of contract duration does not extend beyond the goods and services already transferred for contracts that provide both the Company and the client with the right to cancel or terminate the contract with no substantial penalty.

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2019

Note 4. Accounts Receivable, Net

Accounts receivable, net balances at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Trade accounts receivable	$	167,624		$	159,992
Unbilled revenue		109,384			60,684
Total accounts receivable		277,008			220,676
Allowance for doubtful accounts		(12,574	)		(13,389	)
Accounts receivable, net	$	264,434		$	207,287

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2019

Goodwill and Other Intangible Assets, Net

Note 5. Goodwill and Other Intangible Assets, Net

The components of goodwill and other intangible assets, net at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Goodwill	$	566,009		$	564,300
Intangible assets:
Client lists		182,184			181,564
Other intangible assets		9,450			9,447
Total intangible assets		191,634			191,011
Total goodwill and intangibles assets		757,643			755,311
Accumulated amortization:
Client lists		(116,103	)		(112,905	)
Other intangible assets		(5,659	)		(5,397	)
Total accumulated amortization		(121,762	)		(118,302	)
Goodwill and other intangible assets, net	$	635,881		$	637,009

Depreciation and Amortization

3 Months Ended

Mar. 31, 2019

Depreciation and Amortization

Note 6. Depreciation and Amortization

Depreciation and amortization expense for property and equipment and intangible assets for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Operating expenses	$	5,624	$	5,682
Corporate general and administrative expenses		35		93
Total depreciation and amortization expense	$	5,659	$	5,775

Debt and Financing Arrangements

3 Months Ended

Mar. 31, 2019

Debt and Financing Arrangements

Note 7. Debt and Financing Arrangements

Our primary financing arrangement is the 2018 credit facility, which provides us with the capital necessary to meet our working capital needs as well as the flexibility to continue with our strategic initiatives, including business acquisitions and share repurchases. The 2018 credit facility will mature in 2023. We also have an unsecured $20 million line of credit used to support our short-term funding requirements of payroll client fund obligations due to the investment of client funds, rather than liquidating client funds that have already been invested in available-for-sale securities. The line of credit, which terminates August 16, 2019, did not have a balance outstanding at March 31, 2019. Refer to our Annual Report on Form 10-K for the year ended December 31, 2018 for additional details of our debt and financing arrangements.

The balance outstanding under the credit facility was $182.0 million and $135.5 million at March 31, 2019 and December 31, 2018, respectively. Interest expense for the three months ended March 31, 2019 and 2018 was $1.4 million and $1.8 million, respectively. We had approximately $210 million of available funds under the credit facility at March 31, 2019, net of outstanding letters of credit of $1.1 million. As of March 31, 2019, we were in compliance with our debt covenants.

Rates for the three months ended March 31, 2019 and 2018 were as follows:

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

Letters of Credit and Guarantees – We provide letters of credit to landlords (lessors) of our leased office facilities in lieu of cash security deposits which totaled $1.1 million at both March 31, 2019 and December 31, 2018. In addition, we provide license bonds to various state agencies to meet certain licensing requirements. The amount of license bonds outstanding was $2.9 million at both March 31, 2019 and December 31, 2018.

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, P.C. (“Mayer Hoffman”), 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. The lawsuits asserted claims 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 Mortgage Ltd.’s auditor, as either a statutory control person under the Arizona Securities Act or a joint venturer under Arizona common law.

With the exception of claims being pursued by two plaintiffs from the Ashkenazi lawsuit (“Baldino Group”), all other related 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 pending, though no trial date has been set.

On September 16, 2016, CBIZ, Inc. and its subsidiary CBIZ Benefits & Insurance Services, Inc. (“CBIZ Benefits”) were named as defendants in a lawsuit filed in the U.S. District Court for the Western District of Pennsylvania. The federal court case is brought by UPMC, d/b/a University of Pittsburgh Medical Center, and a health system it acquired, UPMC Altoona (formerly, Altoona Regional Health System). The lawsuit asserts professional negligence, breach of contract, and negligent misrepresentation claims against CBIZ, CBIZ Benefits and a former employee of CBIZ Benefits in connection with actuarial services provided by CBIZ Benefits to Altoona Regional Health System. The complaint seeks damages in an amount of no less than $142.0 million.

We cannot predict the outcome of the above matters or estimate the possible loss or range of possible loss, if any. Although the proceedings are subject to uncertainties inherent in the litigation process and the ultimate disposition of these proceedings is not presently determinable, we intend to vigorously defend these cases.

In addition to those items disclosed above, we are, from time to time, subject to claims and suits arising in the ordinary course of business.

Financial Instruments

3 Months Ended

Mar. 31, 2019

Financial Instruments

Note 9. Financial Instruments

Bonds – We held corporate and municipal bonds with par values totaling $58.3 million and $55.7 million at March 31, 2019 and December 31, 2018, respectively. All bonds are investment grade and are classified as available-for-sale. These bonds have maturity or callable dates ranging from April 2019 through February 2024, and are included in “Funds held for clients – current” in the accompanying Consolidated Balance Sheets based on our intent and ability to sell these investments at any time under favorable conditions. The following table summarizes our bond activity for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):

	Three Months Ended			Twelve Months Ended
	March 31, 2019			December 31, 2018
Fair value at beginning of period	$	56,556		$	51,101
Purchases		9,470			18,426
Redemptions		—			(1,793	)
Maturities and calls		(6,865	)		(10,445	)
Change in bond premium		(171	)		(377	)
Fair market value adjustment		697			(356	)
Fair value at end of period	$	59,687		$	56,556

Interest Rate Swaps – We do 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 the LIBOR and pay the counterparties a fixed rate. Refer to the Annual Report on Form 10-K for the year ended December 31, 2018 for further discussion on our interest rate swaps.

The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	533	Other non-current assets
	December 31, 2018
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	1,096	Other non-current assets

Under the terms of the interest rate swaps, we pay interest at a fixed rate of interest plus applicable margin as stated in the agreement, and receive interest that varies with the one-month LIBOR. The notional value, fixed rate of interest and expiration date of each interest rate swap as of March 31, 2019 was (i) $25 million – 1.300% - October 2020, (ii) $10 million – 1.120% - February 2021 and (iii) $20 million – 1.770% - May 2022 and (iv) $15 million – 2.640% - June 2023. Refer to Note 10, Fair Value Measurements, for additional disclosures regarding fair value measurements.

The following table summarizes the effects of the interest rate swap on our accompanying Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018 (in thousands):

	(Loss) Gain Recognized in AOCL, Net of Tax					Loss Reclassified from AOCL into Expense
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2019			2018		2019			2018
Interest rate swap	$	(427	)	$	450	$	(139	)	$	(38	)

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Note 10. Fair Value Measurements

The following table summarizes our assets and liabilities at March 31, 2019 and December 31, 2018 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 us to determine such fair value (in thousands):

	Level	March 31, 2019			December 31, 2018
Deferred compensation plan assets	1	$	95,983		$	84,435
Corporate and municipal bonds	1	$	59,687		$	56,556
Deferred compensation plan liabilities	1	$	(95,983	)	$	(84,435	)
Interest rate swaps	2	$	533		$	1,096
Contingent purchase price liabilities	3	$	(37,548	)	$	(39,708	)

During the three months ended March 31, 2019 and 2018, 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 our contingent purchase price liabilities for the three months ended March 31, 2019 and 2018 (pre-tax basis) (in thousands):

	2019			2018
Beginning balance – January 1	$	(39,708	)	$	(37,574	)
Additions from business acquisitions		(1,806	)		(8,320	)
Settlement of contingent purchase price liabilities		3,685			2,879
Change in fair value of contingencies		502			(1,370	)
Change in net present value of contingencies		(221	)		(239	)
Ending balance – March 31	$	(37,548	)	$	(44,624	)

Contingent Purchase Price Liabilities – Contingent purchase price liabilities result from our business acquisitions and are recorded at fair value at the time of acquisition and are recorded in “Contingent purchase price liability — current” and “Contingent purchase price liability — non-current” in the accompanying Consolidated Balance Sheets. We estimate the fair value of our contingent purchase price liabilities using a probability-weighted discounted cash flow model. This fair value measure is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Fair value measurements characterized within Level 3 of the fair value hierarchy are measured based on unobservable inputs that are supported by little or no market activity and reflect our own assumptions in measuring fair value.

We probability weight risk-adjusted estimates of future performance of acquired businesses, then calculate the contingent purchase price based on the estimates and discount them to present value representing management’s best estimate of fair value. The fair value of the contingent purchase price liabilities are reassessed on a quarterly basis based on assumptions provided by practice group leaders and business unit controllers together with our corporate finance department. Any change in the fair value estimate is recorded in the earnings of that period. Refer to Note 14, Acquisitions, for further discussion of our acquisitions and contingent purchase price liabilities.

The carrying amounts of our 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 our bank debt is considered to be Level 2.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Other Comprehensive Income

3 Months Ended

Mar. 31, 2019

Other Comprehensive Income

Note 11. Other Comprehensive Income

The following table is a summary of other comprehensive income and discloses the tax impact of each component of other comprehensive income for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended
	March 31,
	2019			2018
Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1)	$	510		$	(330	)
Net unrealized (loss) gain on interest rate swaps, net of income taxes (2)		(427	)		450
Foreign currency translation		(2	)		(6	)
Total other comprehensive income	$	81		$	114

(1)

Net of income tax expense (benefit) of $189 and $($122) for the three months ended March 31, 2019 and 2018, respectively.

(2)

Net of income tax (benefit) expense of ($132) and $138 for the three months ended March 31, 2019 and 2018, respectively.

Accumulated other comprehensive loss, net of tax, was approximately $0.3 million and $0.5 million at March 31, 2019 and December 31, 2018, 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.

Employee Share Plans

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Share Plans

Note 12. Employee Share Plans

The CBIZ, Inc. 2014 Stock Incentive Plan (the “2014 Plan”), which expires in 2024, provides for the grant of restricted stock awards, stock options and performance awards. The terms and vesting schedules for the share-based awards vary by type and date of grant. A maximum of 9.6 million stock-based compensation awards may be granted. Shares subject to award under the 2014 Plan may be either authorized but unissued shares of our common stock or treasury shares. Compensation expense for stock-based awards recognized during the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Stock options	$	519	$	518
Restricted stock awards		929		919
Performance share units		34		—
Total stock-based compensation expense	$	1,482	$	1,437

Stock Options and Restricted Stock Awards – The following table presents our stock options and restricted stock award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	Stock Options					Restricted Stock Awards
	Number of Options			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value (1)
Outstanding at beginning of year		3,622		$	11.97		632		$	15.35
Granted		—		$	—		173		$	19.82
Exercised / Vested		(189	)	$	7.40		(63	)	$	14.31
Expired or cancelled		—		$	—		—		$	—
Outstanding at March 31, 2019		3,433		$	12.22		742		$	16.48
Exercisable at March 31, 2019		1,882		$	9.40

(1)

Represents weighted average market value of the shares; awards are granted at no cost to the recipients.

Performance Share Units (“PSUs”) – PSUs are earned based on our financial performance over a contractual term of three years and the associated expense is recognized over that period based on the fair value of the award. A three-year cliff vesting schedule of the PSUs is dependent upon the Company’s performance relative to pre-established goals based on achievement of an earnings per share target (weighted 70%) and achievement of total growth in revenue (weighted 30%). The fair value of PSUs is calculated using the market value of a share of our common stock on the date of grant. For performance achieved above specified levels, the recipient may earn additional shares of stock, not to exceed 200% of the number of PSUs initially granted.

The following table presents our PSU award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	PSUs		Fair Value
Outstanding at beginning of year	$	—	$	—
Granted		173	$	19.82
Vested		—	$	—
Expired or cancelled		—	$	—
Outstanding at March 31, 2019	$	173	$	19.82

Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share

Note 13. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data).

	Three Months Ended
	March 31,
	2019		2018
Numerator:
Income from continuing operations	$	37,565	$	35,810
Denominator:
Basic
Weighted average common shares outstanding		54,287		54,071
Diluted
Stock options (1)		1,311		1,449
Restricted stock awards (1)		274		367
Contingent shares (2)		43		37
Diluted weighted average common shares outstanding (3)		55,915		55,924
Basic earnings per share from continuing operations	$	0.69	$	0.66
Diluted earnings per share from continuing operations	$	0.67	$	0.64

(1)

0.6 million share based awards were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2019 as their effect would be anti-dilutive whereas 0.5 million share based awards were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2018.

(2)

Contingent shares represent additional shares to be issued for purchase price earned by former owners of businesses acquired by us once future conditions have been met. Refer to Note 14, Acquisitions, for further details.

(3)

The denominator used in calculated diluted earnings per share did not include approximately 173 thousand restricted performance shares, as the performance targets for these awards had not yet been met.

Acquisitions

3 Months Ended

Mar. 31, 2019

Discontinued Operations And Disposal Groups [Abstract]

Acquisitions

Note 14. Acquisitions

Our acquisition strategy focuses on businesses with a leadership team that is committed to best in class culture, extraordinary client service and cross-serving potential. CBIZ has a long history of acquiring businesses that share common cultural values with us and provide value-added services to the small and midsize business market. The valuation of any business is a subjective process and includes industry, geography, profit margins, expected cash flows, client retention, nature of recurring or non-recurring project-based work, growth rate assumptions and competitive market conditions.

First Quarter 2019 – Effective January 1, 2019, we acquired substantially all of the assets of Wenner Group, LLC (“Wenner”), located in Denver, Colorado. Wenner is a full service accounting, tax, compliance and financial consulting firm. Operating results are reported in the Financial Services practice group.

Aggregate consideration for this acquisition consisted of approximately $1.3 million in cash consideration and $1.8 million in contingent consideration. Under the terms of the acquisition agreement, a portion of the purchase price is contingent on future performance of the business acquired. The maximum potential undiscounted amount of all future payments that we could be required to make under the contingent arrangements is $1.8 million, of which $0.6 million was recorded in “Contingent purchase price liability – current” and $1.2 million was recorded in “Contingent purchase price liability – non-current” in the accompanying Consolidated Balance Sheets at March 31, 2019. Refer to Note 10, Fair Value Measurements, for additional information regarding contingent purchase price liability fair value and fair value adjustments.

Annualized revenue attributable to Wenner is estimated to be approximately $2.4 million. Pro forma results of operations for this acquisition have not been presented because the effects of the acquisition were not material to our “Income from continuing operations before income taxes.”

First Quarter 2018 – Effective February 1, 2018, we acquired substantially all of the assets of Laurus Transaction Advisors, LLC (“Laurus”), located in Denver, Colorado. Laurus provides financial and accounting due diligence and advisory services with respect to mergers and acquisition transactions to private equity groups as well as public and private companies. Operating results are reported in the Financial Services practice group.

Aggregate consideration for this acquisition consisted of approximately $15.5 million in cash consideration and $8.3 million in contingent consideration. Under the terms of the acquisition agreement, a portion of the purchase price is contingent on future performance of the business acquired. The maximum potential undiscounted amount of all future payments that we could be required to make under the contingent arrangements is $8.3 million, of which $2.2 million was recorded in “Contingent purchase price liability – current” and $6.1 million was recorded in “Contingent purchase price liability – non-current” in the accompanying Consolidated Balance Sheets at March 31, 2018. Refer to Note 10, Fair Value Measurements, for additional information regarding contingent purchase price liability fair value and fair value adjustments.

Annualized revenue attributable to Laurus is estimated to be approximately $5.6 million. Pro forma results of operations for this acquisition have not been presented because the effects of the acquisition were not material to our “Income from continuing operations before income taxes.”

The following table summarizes the amounts of identifiable assets acquired, liabilities assumed and aggregate purchase price for the acquisitions for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended
	March 31,
	2019			2018
Accounts receivable, net	$	550		$	1,255
Identifiable intangible assets		654			457
Other current assets		5			—
Current liabilities		(288	)		(805	)
Total identifiable net assets	$	921		$	907
Goodwill		2,165			22,943
Aggregate purchase price	$	3,086		$	23,850

The goodwill of $2.2 million and $22.9 million arising from the acquisition in the first quarter of 2019 and 2018, respectively, primarily results from expected future earnings and cash flows from the existing management team, as well as the synergies created by the integration of the new business within our organization, including cross-selling opportunities expected with our Financial Services practice group and the Benefits and Insurance Services practice group, to help strengthen our existing service offerings and expand our market position. All of the goodwill is deductible for income tax purposes.

Client Lists – During the three months ended March 31, 2019 and 2018, we did not purchase any client lists.

Change in Contingent Purchase Price Liability for Previous Acquisitions – During the three months ended March 31, 2019 and 2018, the fair value of the contingent purchase price liability related to prior acquisitions decreased by $0.3 million and increased by $1.6 million, respectively. These changes in fair value are attributable to subsequent measurement adjustments based on projected future results of the acquired businesses, net present value adjustments and changes in stock price. These adjustments are included in “Other income (expense), net” in the accompanying Consolidated Statements of Comprehensive Income.

Contingent Earnouts for Previous Acquisitions – We paid $2.7 million in cash and issued no shares of our common stock during the three months ended March 31, 2019 for previous acquisitions. During the same period last year, we paid $2.9 million in cash and issued no shares of our common stock.

Discontinued Operations and Divestitures

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Divestitures

Note 15. Discontinued Operations and Divestitures

We divest (through sale or closure) business operations that do not contribute to our long-term objectives for growth, or that are not complementary to our target service offerings and markets. Divestitures are classified as discontinued operations provided they meet the criteria and treatment as discontinued operations. Discontinued operations primarily consist of one small businesses under the Financial Services segment that was sold in 2015. During the first quarter of 2019 and 2018, we did not discontinue the operations of any of our businesses.

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. We recorded a gain of $0.5 million for the three months ended March 31, 2019, mostly attributable to a small accounting firm in the Financial Services practice group. For the same period in 2018, we recorded a gain of $0.7 million related to a small book of business in the Benefits and Insurance Services practice group.

Segment Disclosures

3 Months Ended

Mar. 31, 2019

Segment Disclosures

Note 16. Segment Disclosures

Our business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance Services and National Practices. The business units have been aggregated based on the following factors: similarity of the products and services provided to clients; similarity of the regulatory environment 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

Benefits and Insurance Services

National Practices

• Accounting and Tax

• Government Healthcare Consulting

• Financial Advisory

• Valuation

• Risk & Advisory Services

• Group Health Benefits Consulting

• Payroll

• Property & Casualty

• Retirement Plan Services

• Managed Networking and Hardware Services

• Healthcare 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 non-qualified deferred compensation plan, share-based compensation, consolidation and integration charges, certain professional fees, certain advertising costs and other various expenses.

Accounting policies of the practice groups are the same as those described in Note 1, Organization and Summary of Significant Accounting Policies, to the Annual Report on Form 10-K for the year ended December 31, 2018, except for our lease policies. Refer to Note 1, Summary of Significant Accounting Policies – Changes in Accounting Policies, in this Quarterly Report on Form 10-Q. Upon consolidation, intercompany accounts and transactions are eliminated, thus inter-segment revenue is not included in the measure of profit or loss for the practice groups. Performance of the practice groups is evaluated on operating income excluding those costs listed above, which are reported in the Corporate and Other segment.

Segment information for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended March 31, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	185,144		$	76,255		$	8,599	$	—		$	269,998
Operating expenses		134,458			61,371			8,000		11,667			215,496
Gross margin		50,686			14,884			599		(11,667	)		54,502
Corporate general & administrative expenses		—			—			—		11,680			11,680
Operating income (loss)		50,686			14,884			599		(23,347	)		42,822
Other income (expense):
Interest expense		—			(10	)		—		(1,391	)		(1,401	)
Gain on sale of operations, net		497			—			—		—			497
Other (expense) income, net		(136	)		21			—		9,375			9,260
Total other (expense) income		361			11			—		7,984			8,356
Income (loss) from continuing operations before income tax expense	$	51,047		$	14,895		$	599	$	(15,363	)	$	51,178

	Three Months Ended March 31, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	180,603	$	77,330		$	8,157	$	—		$	266,090
Operating expenses		133,033		61,133			7,275		3,309			204,750
Gross margin		47,570		16,197			882		(3,309	)		61,340
Corporate general & administrative expenses		—		—			—		10,028			10,028
Operating income (loss)		47,570		16,197			882		(13,337	)		51,312
Other income (expense):
Interest expense		—		(75	)		—		(1,705	)		(1,780	)
Gain on sale of operations, net		—		663			—		—			663
Other income (expense), net		265		193			—		(1,687	)		(1,229	)
Total other income (expense)		265		781			—		(3,392	)		(2,346	)
Income (loss) from continuing operations before income tax expense	$	47,835	$	16,978		$	882	$	(16,729	)	$	48,966

Leases

3 Months Ended

Mar. 31, 2019

Leases

NOTE 17. LEASES

We have operating leases primarily for office facilities, automobiles and information technology equipment. Office facilities account for approximately 96% of our total lease liability.

Balance sheet information related to the Company’s operating leases as of March 31, 2019 was as follows (in thousands):



	March 31, 2019
Operating lease ROU assets	$	145,574
Current portion of operating lease liabilities		28,647
Noncurrent portion of operating lease liabilities		138,373
Total operating lease liabilities	$	167,020

		March 31, 2019
Weighted-average remaining lease term		7.1 years
Weighted-average discount rate		4.1%

The components of lease expense and other lease information as of and during the three-month period ended March 31, 2019 are as follows (in thousands):

	March 31, 2019
Operating lease cost	$	9,242
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	9,260

Our leases have remaining lease terms of 1 year to 11 years. These leases generally contain renewal options for periods ranging from two to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and associated potential option payments are excluded from lease payments. Expenses associated with operating leases was $38 million, $38.4 million and $37 million for the years ended December 31, 2018, 2017 and 2016, respectively.

A number of businesses acquired by us are located in properties owned indirectly by and leased from persons employed by the Company, none of whom are members of our senior management. In the aggregate, we made lease payments to those related parties of approximately $0.6 million and $0.9 million for the three months ended March 31, 2019 and 2018, respectively.

The following table summarizes the maturity of our operating lease liabilities as of March 31, 2019 (in thousands):

	Operating Leases
2019	$	25,975
2020		30,588
2021		26,243
2022		20,423
2023		19,097
Thereafter		66,194
Total undiscounted lease payments		188,520
Less: imputed interest		(21,500	)
Total lease liabilities	$	167,020

The following table summarizes the maturity of our operating lease commitments as of December 31, 2018 (in thousands):

	Operating Leases
2019	$	34,256
2020		30,419
2021		26,172
2022		20,358
2023		18,981
Thereafter		65,854
Total future minimum rental commitments	$	196,040

Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 18. Subsequent Events

Subsequent to March 31, 2019 and through April 30, 2019, we repurchased 179 thousand shares of our common stock in the open market at a cost of $3.5 million.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Unaudited Interim Financial Statements

Description of Business

Selected Terms Used in Notes to the Consolidated Financial Statements

ASA – Administrative Service Agreement.

ASC – Accounting Standards Codification.

ASU – Accounting Standards Update

CPA firm – Certified Public Accounting firm.

FASB – The Financial Accounting Standards Board.

GAAP – United States Generally Accepted Accounting Principles.

LIBOR – London Interbank Offered Rate.

Legacy ASC Topic 840 – ASC Topic 840, Leases.

New Lease Standard – ASU No. 2016-12, Leases.

ROU – Right-of-Use Asset.

SEC – United States Securities and Exchange Commission.

Tax Act – Tax Cuts and Jobs Act of 2017.

Topic 220 – ASU No. 2018-02, Income Statement – Reporting Comprehensive Income.

Topic 606 – ASU No. 2014-09, Revenue from Contracts with Customers.

Topic 815 – ASU No. 2017-12, Derivatives and Hedging.

Basis of Consolidation

Use Of Estimates

Changes In Accounting Policy

Revision of Previously Reported Financial Information

Accounting Changes And Error Corrections [Abstract]

Accounting Standards Adopted in 2019

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Topic 220 resulted in a reclassification between accumulated other comprehensive income and retained earnings of $0.1 million, and had no impact on our consolidated results of operations.

Recently Issued Accounting Standards

New Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Impact of Adopting New Lease Standards on Consolidated Balance Sheet

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Disaggregation of Revenue by Source

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended March 31, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	185,144	$	—	$	—	$	185,144
Core Benefits and Insurance		—		73,538		—		73,538
Non-core Benefits and Insurance		—		2,717		—		2,717
Managed networking, hardware services		—		—		6,424		6,424
National Practices consulting		—		—		2,175		2,175
Total revenue	$	185,144	$	76,255	$	8,599	$	269,998

	Three Months Ended March 31, 2018
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	180,603	$	—	$	—	$	180,603
Core Benefits and Insurance		—		74,122		—		74,122
Non-core Benefits and Insurance		—		3,208		—		3,208
Managed networking, hardware services		—		—		5,958		5,958
National Practices consulting		—		—		1,969		1,969
Other		—		—		230		230
Total revenue	$	180,603	$	77,330	$	8,157	$	266,090

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Accounts receivable, net balances at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Trade accounts receivable	$	167,624		$	159,992
Unbilled revenue		109,384			60,684
Total accounts receivable		277,008			220,676
Allowance for doubtful accounts		(12,574	)		(13,389	)
Accounts receivable, net	$	264,434		$	207,287

Goodwill and Other Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2019

Components of Goodwill and Other Intangible Assets, Net

The components of goodwill and other intangible assets, net at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Goodwill	$	566,009		$	564,300
Intangible assets:
Client lists		182,184			181,564
Other intangible assets		9,450			9,447
Total intangible assets		191,634			191,011
Total goodwill and intangibles assets		757,643			755,311
Accumulated amortization:
Client lists		(116,103	)		(112,905	)
Other intangible assets		(5,659	)		(5,397	)
Total accumulated amortization		(121,762	)		(118,302	)
Goodwill and other intangible assets, net	$	635,881		$	637,009

Depreciation and Amortization (Tables)

3 Months Ended

Mar. 31, 2019

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 months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Operating expenses	$	5,624	$	5,682
Corporate general and administrative expenses		35		93
Total depreciation and amortization expense	$	5,659	$	5,775

Debt and Financing Arrangements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Unsecured Credit Facility

Rates for the three months ended March 31, 2019 and 2018 were as follows:

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Outstanding Interest Rate Swaps

Summary of Bond Activity

The following table summarizes our bond activity for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):

	Three Months Ended			Twelve Months Ended
	March 31, 2019			December 31, 2018
Fair value at beginning of period	$	56,556		$	51,101
Purchases		9,470			18,426
Redemptions		—			(1,793	)
Maturities and calls		(6,865	)		(10,445	)
Change in bond premium		(171	)		(377	)
Fair market value adjustment		697			(356	)
Fair value at end of period	$	59,687		$	56,556

The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	533	Other non-current assets
	December 31, 2018
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	1,096	Other non-current assets

Summary of Effects of Interest Rate Swap

	(Loss) Gain Recognized in AOCL, Net of Tax					Loss Reclassified from AOCL into Expense
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2019			2018		2019			2018
Interest rate swap	$	(427	)	$	450	$	(139	)	$	(38	)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Level	March 31, 2019			December 31, 2018
Deferred compensation plan assets	1	$	95,983		$	84,435
Corporate and municipal bonds	1	$	59,687		$	56,556
Deferred compensation plan liabilities	1	$	(95,983	)	$	(84,435	)
Interest rate swaps	2	$	533		$	1,096
Contingent purchase price liabilities	3	$	(37,548	)	$	(39,708	)

Change in Level 3 Fair Values of Contingent Purchase Price Liabilities

	2019			2018
Beginning balance – January 1	$	(39,708	)	$	(37,574	)
Additions from business acquisitions		(1,806	)		(8,320	)
Settlement of contingent purchase price liabilities		3,685			2,879
Change in fair value of contingencies		502			(1,370	)
Change in net present value of contingencies		(221	)		(239	)
Ending balance – March 31	$	(37,548	)	$	(44,624	)

Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Other Comprehensive Income and Tax Impact

	Three Months Ended
	March 31,
	2019			2018
Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1)	$	510		$	(330	)
Net unrealized (loss) gain on interest rate swaps, net of income taxes (2)		(427	)		450
Foreign currency translation		(2	)		(6	)
Total other comprehensive income	$	81		$	114

(1)

Net of income tax expense (benefit) of $189 and $($122) for the three months ended March 31, 2019 and 2018, respectively.

(2)

Net of income tax (benefit) expense of ($132) and $138 for the three months ended March 31, 2019 and 2018, respectively.

Employee Share Plans (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Share-Based Compensation Awards

Compensation expense for stock-based awards recognized during the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Stock options	$	519	$	518
Restricted stock awards		929		919
Performance share units		34		—
Total stock-based compensation expense	$	1,482	$	1,437

Performance Shares [Member]

	Stock Options					Restricted Stock Awards
	Number of Options			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value (1)
Outstanding at beginning of year		3,622		$	11.97		632		$	15.35
Granted		—		$	—		173		$	19.82
Exercised / Vested		(189	)	$	7.40		(63	)	$	14.31
Expired or cancelled		—		$	—		—		$	—
Outstanding at March 31, 2019		3,433		$	12.22		742		$	16.48
Exercisable at March 31, 2019		1,882		$	9.40

(1)

Represents weighted average market value of the shares; awards are granted at no cost to the recipients.

The following table presents our PSU award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	PSUs		Fair Value
Outstanding at beginning of year	$	—	$	—
Granted		173	$	19.82
Vested		—	$	—
Expired or cancelled		—	$	—
Outstanding at March 31, 2019	$	173	$	19.82

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Computation of Basic and Diluted Earnings Per Share from Continuing Operations

	Three Months Ended
	March 31,
	2019		2018
Numerator:
Income from continuing operations	$	37,565	$	35,810
Denominator:
Basic
Weighted average common shares outstanding		54,287		54,071
Diluted
Stock options (1)		1,311		1,449
Restricted stock awards (1)		274		367
Contingent shares (2)		43		37
Diluted weighted average common shares outstanding (3)		55,915		55,924
Basic earnings per share from continuing operations	$	0.69	$	0.66
Diluted earnings per share from continuing operations	$	0.67	$	0.64

(1)

(2)

(3)

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed

	Three Months Ended
	March 31,
	2019			2018
Accounts receivable, net	$	550		$	1,255
Identifiable intangible assets		654			457
Other current assets		5			—
Current liabilities		(288	)		(805	)
Total identifiable net assets	$	921		$	907
Goodwill		2,165			22,943
Aggregate purchase price	$	3,086		$	23,850

Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Segment Information

Segment information for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended March 31, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	185,144		$	76,255		$	8,599	$	—		$	269,998
Operating expenses		134,458			61,371			8,000		11,667			215,496
Gross margin		50,686			14,884			599		(11,667	)		54,502
Corporate general & administrative expenses		—			—			—		11,680			11,680
Operating income (loss)		50,686			14,884			599		(23,347	)		42,822
Other income (expense):
Interest expense		—			(10	)		—		(1,391	)		(1,401	)
Gain on sale of operations, net		497			—			—		—			497
Other (expense) income, net		(136	)		21			—		9,375			9,260
Total other (expense) income		361			11			—		7,984			8,356
Income (loss) from continuing operations before income tax expense	$	51,047		$	14,895		$	599	$	(15,363	)	$	51,178

	Three Months Ended March 31, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	180,603	$	77,330		$	8,157	$	—		$	266,090
Operating expenses		133,033		61,133			7,275		3,309			204,750
Gross margin		47,570		16,197			882		(3,309	)		61,340
Corporate general & administrative expenses		—		—			—		10,028			10,028
Operating income (loss)		47,570		16,197			882		(13,337	)		51,312
Other income (expense):
Interest expense		—		(75	)		—		(1,705	)		(1,780	)
Gain on sale of operations, net		—		663			—		—			663
Other income (expense), net		265		193			—		(1,687	)		(1,229	)
Total other income (expense)		265		781			—		(3,392	)		(2,346	)
Income (loss) from continuing operations before income tax expense	$	47,835	$	16,978		$	882	$	(16,729	)	$	48,966

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Balance Sheet Information Related to Operating Leases

Balance sheet information related to the Company’s operating leases as of March 31, 2019 was as follows (in thousands):



	March 31, 2019
Operating lease ROU assets	$	145,574
Current portion of operating lease liabilities		28,647
Noncurrent portion of operating lease liabilities		138,373
Total operating lease liabilities	$	167,020

		March 31, 2019
Weighted-average remaining lease term		7.1 years
Weighted-average discount rate		4.1%

Schedule of Lease Expense and Other Lease Information

The components of lease expense and other lease information as of and during the three-month period ended March 31, 2019 are as follows (in thousands):

	March 31, 2019
Operating lease cost	$	9,242
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	9,260

Schedule of Maturity of Operating Lease Liabilities

The following table summarizes the maturity of our operating lease liabilities as of March 31, 2019 (in thousands):

	Operating Leases
2019	$	25,975
2020		30,588
2021		26,243
2022		20,423
2023		19,097
Thereafter		66,194
Total undiscounted lease payments		188,520
Less: imputed interest		(21,500	)
Total lease liabilities	$	167,020

Schedule of Maturity of Operating Lease Commitments

The following table summarizes the maturity of our operating lease commitments as of December 31, 2018 (in thousands):

	Operating Leases
2019	$	34,256
2020		30,419
2021		26,172
2022		20,358
2023		18,981
Thereafter		65,854
Total future minimum rental commitments	$	196,040

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands		3 Months Ended
	Jan. 02, 2018 USD ($)	Mar. 31, 2019 USD ($) Practice_Groups	Mar. 31, 2018 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of practice groups \| Practice_Groups		3
New accounting pronouncements or adoption of new standard resulted a (decrease) increase in net cash provided by investing activities		$ 9,736	$ 19,756
Accounting Standards Update 2016-02 [Member]
Summary Of Significant Accounting Policies [Line Items]
New accounting pronouncements or adoption of new standard resulted a (decrease) increase in net cash provided by investing activities			57,200
New accounting pronouncements or adoption of new standard resulted a (decrease) increase in cash, cash equivalents and restricted cash	$ 148,800		$ 91,600

New Accounting Pronouncements - Summary of Impact of Adopting New Lease Standards on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease right-of-use asset, net	$ 145,574
Total assets	1,377,319		$ 1,183,031
Operating lease liability - current	28,647
Total current liabilities	311,122		321,314
Operating lease liability - non-current	138,373
Total non-current liabilities	442,710		268,054
Total liabilities and stockholders' equity	$ 1,377,319		$ 1,183,031
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease right-of-use asset, net		$ 148,884
Total assets		1,331,915
Operating lease liability - current		28,407
Total current liabilities		349,721
Operating lease liability - non-current		120,477
Total non-current liabilities		388,531
Total liabilities and stockholders' equity		1,331,915
Accounting Standards Update 2016-02 [Member] \| New Lease Standard [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease right-of-use asset, net		148,884
Total assets		148,884
Operating lease liability - current		28,407
Total current liabilities		28,407
Operating lease liability - non-current		120,477
Total non-current liabilities		120,477
Total liabilities and stockholders' equity		$ 148,884

New Accounting Pronouncements - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease, Percentage of office facilities	96.00%
ASU 2018-02 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification between AOCI and retained earnings	$ 0.1

Revenue - Summary of Disaggregation of Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 269,998	$ 266,090
Accounting, Tax, Advisory and Consulting [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	185,144	180,603
Core Benefits and Insurance [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	73,538	74,122
Non-core Benefits and Insurance [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	2,717	3,208
Managed Networking, Hardware Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	6,424	5,958
National Practices Consulting [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	2,175	1,969
Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		230
Financial Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	185,144	180,603
Financial Services [Member] \| Accounting, Tax, Advisory and Consulting [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	185,144	180,603
Benefits and Insurance Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	76,255	77,330
Benefits and Insurance Services [Member] \| Core Benefits and Insurance [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	73,538	74,122
Benefits and Insurance Services [Member] \| Non-core Benefits and Insurance [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	2,717	3,208
National Practices [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	8,599	8,157
National Practices [Member] \| Managed Networking, Hardware Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	6,424	5,958
National Practices [Member] \| National Practices Consulting [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 2,175	1,969
National Practices [Member] \| Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue		$ 230

Revenue - Additional Information (Detail)	3 Months Ended
Revenue - Additional Information (Detail)	Mar. 31, 2019
Revenue Recognition And Deferred Revenue [Abstract]
Capitalized contract period	one year or less
Performance obligations period	one year or less

Accounts Receivable, Net - Accounts Receivables Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable Net Current [Abstract]
Trade accounts receivable	$ 167,624	$ 159,992
Unbilled revenue	109,384	60,684
Total accounts receivable	277,008	220,676
Allowance for doubtful accounts	(12,574)	(13,389)
Accounts receivable, net	$ 264,434	$ 207,287

Goodwill and Other Intangible Assets, Net - Components of Goodwill and Other Intangible Assets, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 566,009	$ 564,300
Intangible assets:
Total intangible assets	191,634	191,011
Total goodwill and intangibles assets	757,643	755,311
Accumulated amortization:
Total accumulated amortization	(121,762)	(118,302)
Goodwill and other intangible assets, net	635,881	637,009
Client Lists [Member]
Intangible assets:
Total intangible assets	182,184	181,564
Accumulated amortization:
Total accumulated amortization	(116,103)	(112,905)
Other Intangible Assets [Member]
Intangible assets:
Total intangible assets	9,450	9,447
Accumulated amortization:
Total accumulated amortization	$ (5,659)	$ (5,397)

Depreciation and Amortization - Depreciation and Amortization Expense for Property and Equipment and Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 5,659	$ 5,775
Operating Expenses [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	5,624	5,682
Corporate General and Administrative Expenses [Member]
Property, Plant and Equipment [Line Items]
Total depreciation and amortization expense	$ 35	$ 93

Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Outstanding balance under applicable credit facility	$ 182,000		$ 135,500
Interest expense	1,401	$ 1,780
Available funds under credit facility	210,000
Outstanding letters of credit	$ 1,100		$ 1,100
2018 Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility maturity year	2023
Line of Credit [Member]
Debt Instrument [Line Items]
Revolving loan commitment	$ 20,000
Line of credit facility, termination date	Aug. 16, 2019
Outstanding line of credit	$ 0

Debt and Financing Arrangements - Summary of Unsecured Credit Facility (Detail)	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Weighted average rates	3.18%	2.98%
Minimum [Member]
Debt Instrument [Line Items]
Range of effective rates	2.12%	2.37%
Maximum [Member]
Debt Instrument [Line Items]
Range of effective rates	5.50%	5.50%

Commitments and Contingencies (Letters of Credit and Guarantees) - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Letters of credit outstanding	$ 1.1	$ 1.1
License bonds outstanding amount	$ 2.9	$ 2.9

Commitments and Contingencies (Legal Proceedings) - Additional Information (Detail) $ in Millions		3 Months Ended
	Sep. 16, 2016 USD ($)	Mar. 31, 2019 USD ($) Plaintiff
Baldino Group [Member]
Commitments And Contingencies [Line Items]
Number of Plaintiffs \| Plaintiff		2
Damages sought amount		$ 16.0
Altoona Regional Health System [Member] \| Minimum [Member]
Commitments And Contingencies [Line Items]
Damages sought amount	$ 142.0

Financial Instruments (Bonds) - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]
Corporate and municipal bonds	$ 58.3	$ 55.7
Maturity dates of bonds, start date	2019-04
Maturity dates of bonds, end date	2024-02

Financial Instruments - Summary of Bond Activity (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Fair value at beginning of period	$ 56,556	$ 51,101
Purchases	9,470	18,426
Redemptions		(1,793)
Maturities and calls	(6,865)	(10,445)
Change in bond premium	(171)	(377)
Fair market value adjustment	697	(356)
Fair value at end of period	$ 59,687	$ 56,556

Financial Instruments - Summary of Outstanding Interest Rate Swaps (Detail) - Interest Rate Swaps [Member] - Other Non-current Assets [Member] - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Notional Amount	$ 70,000,000	$ 70,000,000
Fair Value	$ 533,000	$ 1,096,000

Financial Instruments (Interest Rate Swaps) - Additional Information (Detail) - Interest Rate Swap [Member]	3 Months Ended
	Mar. 31, 2019 USD ($)
Schedule Of Available For Sale Securities [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
October 2020 [Member]
Schedule Of Available For Sale Securities [Line Items]
Notional value	$ 25,000,000
Interest rate swap, fixed interest rate	1.30%
February 2021 [Member]
Schedule Of Available For Sale Securities [Line Items]
Notional value	$ 10,000,000
Interest rate swap, fixed interest rate	1.12%
May 2022 [Member]
Schedule Of Available For Sale Securities [Line Items]
Notional value	$ 20,000,000
Interest rate swap, fixed interest rate	1.77%
June 2023 [Member]
Schedule Of Available For Sale Securities [Line Items]
Notional value	$ 15,000,000
Interest rate swap, fixed interest rate	2.64%

Financial Instruments - Summary of Effects of Interest Rate Swaps (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivatives, Fair Value [Line Items]
(Loss) Gain Recognized in AOCL, Net of Tax	$ (427)	$ 450
Interest Rate Swap [Member] \| Interest Expense [Member]
Derivatives, Fair Value [Line Items]
(Loss) Gain Recognized in AOCL, Net of Tax	(427)	450
Loss Reclassified from AOCL into Expense	$ (139)	$ (38)

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate and municipal bonds	$ 59,687	$ 56,556	$ 51,101
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan assets	95,983	84,435
Corporate and municipal bonds	59,687	56,556
Deferred compensation plan liabilities	(95,983)	(84,435)
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	533	1,096
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent purchase price liabilities	$ (37,548)	$ (39,708)

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements, Inter-transfers between Levels	$ 0	$ 0

Fair Value Measurements - Change in Level 3 Fair Values of Contingent Purchase Price Liabilities (Detail) - Contingent Purchase Price Liabilities [Member] - Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ (39,708)	$ (37,574)
Additions from business acquisitions	(1,806)	(8,320)
Settlement of contingent purchase price liabilities	3,685	2,879
Change in fair value of contingencies	502	(1,370)
Change in net present value of contingencies	(221)	(239)
Ending balance	$ (37,548)	$ (44,624)

Other Comprehensive Income - Summary of Other Comprehensive Income and Tax Impact (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Net unrealized gain (loss) on available-for-sale securities, net of income taxes	$ 510	$ (330)
Net unrealized (loss) gain on interest rate swaps, net of income taxes	(427)	450
Foreign currency translation	(2)	(6)
Total other comprehensive income	$ 81	$ 114

Other Comprehensive Income - Summary of Other Comprehensive Income and Tax Impact (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Unrealized gain (loss) on available for sale securities, income tax expense (benefit)	$ 189	$ (122)
Unrealized gain on interest rate swaps, income tax (benefit) expense	$ (132)	$ 138

Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Accumulated other comprehensive loss, net of tax	$ (300)	$ (482)	$ (500)

Employee Share Plans - Additional Information (Detail) shares in Millions	3 Months Ended
	Mar. 31, 2019 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum stock based compensation awards granted under the plan	9.6
Stock awards expiry	2024
Performance Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, remaining contractual terms	3 years
Performance share units, vesting period	3 years
Achievement of an earnings per share target	70.00%
Achievement of total growth in revenue	30.00%
Percentage of initial grant	200.00%

Employee Share Plans - Schedule of Share-Based Compensation Awards (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Compensation And Retirement Disclosure [Abstract]
Stock options	$ 519	$ 518
Restricted stock awards	929	919
Performance share units	34
Total stock-based compensation expense	$ 1,482	$ 1,437

Employee Share Plans - Stock Award Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding Beginning balance, Number of Options \| shares	3,622
Exercised / Vested, Number of Options \| shares	(189)
Outstanding Ending balance, Number of Options \| shares	3,433
Exercisable Ending balance, Number of Options \| shares	1,882
Outstanding Beginning balance, Weighted Average Exercise Price Per Share \| $ / shares	$ 11.97
Exercised / Vested, Weighted Average Exercise Price Per Share \| $ / shares	7.40
Outstanding Ending balance, Weighted Average Exercise Price Per Share \| $ / shares	12.22
Exercisable Ending balance, Weighted Average Exercise Price \| $ / shares	$ 9.40
Restricted Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding Beginning balance, Number of Shares \| shares	632
Granted, Number of Shares \| shares	173
Exercised / Vested, Number of Shares \| shares	(63)
Outstanding Ending balance, Number of Shares \| shares	742
Outstanding Beginning balance, Weighted Average Grant-Date Fair Value \| $ / shares	$ 15.35
Granted, Weighted Average Grant-Date Fair Value \| $ / shares	19.82
Exercised / Vested, Weighted Average Grant-Date Fair Value \| $ / shares	14.31
Outstanding Ending balance, Weighted Average Grant-Date Fair Value \| $ / shares	$ 16.48

Employee Share Plans - Performance Share Units Award Activity (Detail) - Performance Shares [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Number of Shares \| shares	173
Outstanding Ending balance, Number of Shares \| shares	173
Granted, Price Per Share \| $ / shares	$ 19.82
Balance at end of period \| $ / shares	$ 19.82

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
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Income from continuing operations	$ 37,565	$ 35,810
Basic
Weighted average common shares outstanding	54,287	54,071
Diluted
Stock options	1,311	1,449
Restricted stock awards	274	367
Contingent shares	43	37
Diluted weighted average common shares outstanding	55,915	55,924
Basic earnings per share from continuing operations	$ 0.69	$ 0.66
Diluted earnings per share from continuing operations	$ 0.67	$ 0.64

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share for Continuing Operations (Parenthetical) (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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	600	500
Restricted Performance Shares [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	173

Acquisitions (First Quarter 2019) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration, current	$ 21,737	$ 22,538
Contingent consideration, non-current	$ 15,811	$ 17,170
Wenner Group, LLC [Member]
Business Acquisition, Contingent Consideration [Line Items]
Effective date of acquisition	Jan. 01, 2019
Acquired entity, name	Wenner Group, LLC
Consideration paid in cash	$ 1,300
Contingent consideration	1,800
Contingent arrangements arising from acquisitions	1,800
Contingent consideration, current	600
Contingent consideration, non-current	1,200
Annual revenue	$ 2,400

Acquisitions (First Quarter 2018) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration, current		$ 21,737	$ 22,538
Contingent consideration, non-current		$ 15,811	$ 17,170
Laurus Transaction Advisors, LLC [Member]
Business Acquisition, Contingent Consideration [Line Items]
Effective date of acquisition	Feb. 01, 2018
Acquired entity, name	Laurus Transaction Advisors, LLC
Consideration paid in cash	$ 15,500
Contingent consideration	8,300
Contingent arrangements arising from acquisitions	8,300
Contingent consideration, current	2,200
Contingent consideration, non-current	6,100
Annual revenue	$ 5,600

Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 566,009	$ 564,300
Wenner Group, LLC [Member]
Business Acquisition [Line Items]
Accounts receivable, net	550
Identifiable intangible assets	654
Other current assets	5
Current liabilities	(288)
Total identifiable net assets	921
Goodwill	2,165
Aggregate purchase price	$ 3,086
Laurus Transaction Advisors, LLC [Member]
Business Acquisition [Line Items]
Accounts receivable, net			$ 1,255
Identifiable intangible assets			457
Current liabilities			(805)
Total identifiable net assets			907
Goodwill			22,943
Aggregate purchase price			$ 23,850

Acquisitions - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) Client_List shares	Mar. 31, 2018 USD ($) Client_List shares	Dec. 31, 2018 USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Goodwill	$ 566,009		$ 564,300
Changes in fair value of contingent consideration	(300)	$ 1,600
Consideration paid in cash	$ 2,700	$ 2,900
Number of common stock issued \| shares	0	0
Wenner Group, LLC [Member]
Business Acquisition, Contingent Consideration [Line Items]
Goodwill	$ 2,165
Laurus Transaction Advisors, LLC [Member]
Business Acquisition, Contingent Consideration [Line Items]
Goodwill		$ 22,943
Acquisition of Client Lists [Member]
Business Acquisition, Contingent Consideration [Line Items]
Number of client list purchased \| Client_List	0	0

Discontinued Operations and Divestitures - Additional Information (Detail) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) Business	Mar. 31, 2018 USD ($) Business	Dec. 31, 2015 Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of businesses sold \| Business	0	0
Financial Services [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of businesses sold \| Business			1
Financial Services Practice Group [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain from the sale of its individual wealth management business \| $	$ 0.5
Benefit and Insurance Services Practice Group [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain from the sale of its individual wealth management business \| $		$ 0.7

Segment Disclosures - Additional Information (Detail)	3 Months Ended
Segment Disclosures - Additional Information (Detail)	Mar. 31, 2019 Practice_Groups
Segment Reporting [Abstract]
Number of business units of the company	3

Segment Disclosures - Summary of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 269,998	$ 266,090
Operating expenses	215,496	204,750
Gross margin	54,502	61,340
Corporate general & administrative expenses	11,680	10,028
Operating income	42,822	51,312
Other income (expense):
Interest expense	(1,401)	(1,780)
Gain on sale of operations, net	497	663
Other (expense) income, net	9,260	(1,229)
Total other income (expense), net	8,356	(2,346)
Income from continuing operations before income tax expense	51,178	48,966
Operating Segments [Member] \| Financial Services [Member]
Segment Reporting Information [Line Items]
Revenue	185,144	180,603
Operating expenses	134,458	133,033
Gross margin	50,686	47,570
Operating income	50,686	47,570
Other income (expense):
Gain on sale of operations, net	497
Other (expense) income, net	(136)	265
Total other income (expense), net	361	265
Income from continuing operations before income tax expense	51,047	47,835
Operating Segments [Member] \| Benefits and Insurance Services [Member]
Segment Reporting Information [Line Items]
Revenue	76,255	77,330
Operating expenses	61,371	61,133
Gross margin	14,884	16,197
Operating income	14,884	16,197
Other income (expense):
Interest expense	(10)	(75)
Gain on sale of operations, net		663
Other (expense) income, net	21	193
Total other income (expense), net	11	781
Income from continuing operations before income tax expense	14,895	16,978
Operating Segments [Member] \| National Practices [Member]
Segment Reporting Information [Line Items]
Revenue	8,599	8,157
Operating expenses	8,000	7,275
Gross margin	599	882
Operating income	599	882
Other income (expense):
Income from continuing operations before income tax expense	599	882
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Operating expenses	11,667	3,309
Gross margin	(11,667)	(3,309)
Corporate general & administrative expenses	11,680	10,028
Operating income	(23,347)	(13,337)
Other income (expense):
Interest expense	(1,391)	(1,705)
Other (expense) income, net	9,375	(1,687)
Total other income (expense), net	7,984	(3,392)
Income from continuing operations before income tax expense	$ (15,363)	$ (16,729)

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Lessee Lease Description [Line Items]
Operating lease, Percentage of office facilities	96.00%
Operating lease, option to extend	Our leases have remaining lease terms of 1 year to 11 years. These leases generally contain renewal options for periods ranging from two to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and associated potential option payments are excluded from lease payments.
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Operating lease expense			$ 38.0	$ 38.4	$ 37.0
Operating lease payments to related parties	$ 0.6	$ 0.9
Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease, Remaining lease term	1 year
Operating lease, renewal term	2 years
Maximum [Member]
Lessee Lease Description [Line Items]
Operating lease, Remaining lease term	11 years
Operating lease, renewal term	5 years

Leases - Schedule of Balance Sheet Information Related to Operating Leases (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease ROU assets	$ 145,574
Current portion of operating lease liabilities	28,647
Noncurrent portion of operating lease liabilities	138,373
Total operating lease liabilities	$ 167,020
Weighted-average remaining lease term	7 years 1 month 6 days
Weighted-average discount rate	4.10%

Leases - Schedule of Lease Expense and Other Lease Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 9,242
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$ 9,260

Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
2019	$ 25,975
2020	30,588
2021	26,243
2022	20,423
2023	19,097
Thereafter	66,194
Total undiscounted lease payments	188,520
Less: imputed interest	(21,500)
Total lease liabilities	$ 167,020

Leases - Schedule of Maturity of Operating Lease Commitments (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 34,256
2020	30,419
2021	26,172
2022	20,358
2023	18,981
Thereafter	65,854
Total future minimum rental commitments	$ 196,040

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] shares in Thousands, $ in Millions	1 Months Ended
	Apr. 30, 2019 USD ($) shares
Subsequent Event [Line Items]
Repurchase of common stock, shares \| shares	179
Repurchase of common stock, value \| $	$ 3.5

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2019 shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	CBZ
Entity Registrant Name	CBIZ, Inc.
Entity Central Index Key	0000944148
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	54,901,288

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,143	$ 640
Restricted cash	27,721	27,481
Accounts receivable, net	264,434	207,287
Other current assets	24,784	26,841
Current assets before funds held for clients	319,082	262,249
Funds held for clients	138,779	161,289
Total current assets	457,861	423,538
Non-current assets:
Property and equipment, net	37,328	34,205
Goodwill and other intangible assets, net	635,881	637,009
Assets of deferred compensation plan	95,983	84,435
Operating lease right-of-use asset, net	145,574
Other non-current assets	4,692	3,844
Total non-current assets	919,458	759,493
Total assets	1,377,319	1,183,031
Current liabilities:
Accounts payable	61,541	58,630
Income taxes payable	13,864	464
Accrued personnel costs	33,975	63,953
Contingent purchase price liability	21,737	22,538
Operating lease liability	28,647
Other current liabilities	12,492	13,656
Current liabilities before client fund obligations	172,256	159,241
Client fund obligations	138,866	162,073
Total current liabilities	311,122	321,314
Non-current liabilities:
Bank debt	182,000	135,500
Debt issuance costs	(1,436)	(1,526)
Total long-term debt	180,564	133,974
Income taxes payable	3,524	3,402
Deferred income taxes, net	6,834	6,764
Deferred compensation plan obligations	95,983	84,435
Contingent purchase price liability	15,811	17,170
Operating lease liability	138,373
Other non-current liabilities	1,621	22,309
Total non-current liabilities	442,710	268,054
Total liabilities	753,832	589,368
STOCKHOLDERS' EQUITY
Common stock	1,318	1,314
Additional paid in capital	696,226	692,398
Retained earnings	446,331	408,963
Treasury stock	(520,088)	(508,530)
Accumulated other comprehensive loss	(300)	(482)
Total stockholders’ equity	623,487	593,663
Total liabilities and stockholders’ equity	$ 1,377,319	$ 1,183,031

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Revenue	$ 269,998	$ 266,090
Operating expenses	215,496	204,750
Gross margin	54,502	61,340
Corporate general and administrative expenses	11,680	10,028
Operating income	42,822	51,312
Other income (expense):
Interest expense	(1,401)	(1,780)
Gain on sale of operations, net	497	663
Other income (expense), net	9,260	(1,229)
Total other income (expense), net	8,356	(2,346)
Income from continuing operations before income tax expense	51,178	48,966
Income tax expense	13,613	13,156
Income from continuing operations	37,565	35,810
(Loss) income from discontinued operations, net of tax	(96)	41
Net income	$ 37,469	$ 35,851
Earnings per share - basic	$ 0.69	$ 0.66
Earnings per share - diluted	$ 0.67	$ 0.64
Basic weighted average shares outstanding	54,287	54,071
Diluted weighted average shares outstanding	55,915	55,924
Comprehensive income:
Net income	$ 37,469	$ 35,851
Other comprehensive income, net of tax	81	114
Comprehensive income	$ 37,550	$ 35,965

Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2017	$ 530,879	$ 1,301	$ (491,046)	$ 675,504	$ 345,302	$ (182)
Balance, Shares at Dec. 31, 2017		130,075	75,484
Cumulative-effect of accounting changes adjustment	1,622				1,622
Net income	35,851				35,851
Other comprehensive income	114					114
Share repurchases	(558)		$ (558)
Share repurchases, Shares			31
Stock options exercised	2,271	$ 4		2,267
Stock options exercised, Shares		339
Share-based compensation	1,437			1,437
Share-based compensation, Shares		56
Balance, Amount at Mar. 31, 2018	571,616	$ 1,305	$ (491,604)	679,208	382,775	(68)
Balance, Shares at Mar. 31, 2018		130,470	75,515
Balance, Amount at Dec. 31, 2018	593,663	$ 1,314	$ (508,530)	692,398	408,963	(482)
Balance, Shares at Dec. 31, 2018		131,404	76,332
Cumulative-effect of accounting changes adjustment \| ASU 2018-02 [Member]					(101)	101
Net income	37,469				37,469
Other comprehensive income	81					81
Share repurchases	(11,558)		$ (11,558)
Share repurchases, Shares			580
Restricted Stock		$ 1		(1)
Restricted Stock, Shares		173
Stock options exercised	$ 1,400	$ 2		1,398
Stock options exercised, Shares	189	189
Share-based compensation	$ 1,482			1,482
Business acquisitions	950	$ 1		949
Business acquisitions, Shares		47
Balance, Amount at Mar. 31, 2019	$ 623,487	$ 1,318	$ (520,088)	$ 696,226	$ 446,331	$ (300)
Balance, Shares at Mar. 31, 2019		131,813	76,912

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 37,469	$ 35,851
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	5,659	5,775
Bad debt expense, net of recoveries	1,054	1,766
Adjustment to contingent earnout liability	(281)	1,609
Stock-based compensation expense	809	525
Other	(298)	(1,769)
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net	(57,886)	(64,111)
Other assets	1,778	(2,571)
Accounts payable	2,860	5,501
Income taxes payable	14,195	15,413
Accrued personnel costs	(29,978)	(15,262)
Other liabilities	(43)	(3,366)
Operating cash flows used in continuing operations	(24,662)	(20,639)
Operating cash flows (used in) provided by discontinued operations	(91)	139
Net cash used in operating activities	(24,753)	(20,500)
Cash flows from investing activities:
Business acquisitions and purchases of client lists, net of cash acquired	(1,291)	(15,568)
Purchases of client fund investments	(9,470)	(6,170)
Proceeds from the sales and maturities of client fund investments	6,865	3,345
(Decrease) increase in funds held for clients	(395)	616
Additions to property and equipment	(5,452)	(2,641)
Other	7	662
Net cash used in investing activities	(9,736)	(19,756)
Cash flows from financing activities:
Proceeds from bank debt	141,800	274,900
Payment of bank debt	(95,300)	(238,700)
Payment for acquisition of treasury stock	(11,558)	(558)
Decrease in client funds obligations	(23,207)	(54,928)
Proceeds from exercise of stock options	1,400	2,271
Payment of contingent consideration of acquisitions	(2,999)	(3,223)
Other	(111)	(58)
Net cash provided by (used in) financing activities	10,025	(20,296)
Net decrease in cash, cash equivalents and restricted cash	(24,464)	(60,552)
Cash, cash equivalents and restricted cash at beginning of year	130,554	182,262
Cash, cash equivalents and restricted cash at end of period	106,090	121,710
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets:
Cash and cash equivalents	2,143	295
Restricted cash	27,721	29,773
Cash equivalents included in funds held for clients	76,226	91,642
Cash, cash equivalents and restricted cash at end of period	$ 106,090	$ 121,710

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Summary of Significant Accounting Policies

CBIZ, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Selected Terms Used in Notes to the Consolidated Financial Statements

ASA – Administrative Service Agreement.

ASC – Accounting Standards Codification.

ASU – Accounting Standards Update

CPA firm – Certified Public Accounting firm.

FASB – The Financial Accounting Standards Board.

GAAP – United States Generally Accepted Accounting Principles.

LIBOR – London Interbank Offered Rate.

Legacy ASC Topic 840 – ASC Topic 840, Leases.

New Lease Standard – ASU No. 2016-12, Leases.

ROU – Right-of-Use Asset.

SEC – United States Securities and Exchange Commission.

Tax Act – Tax Cuts and Jobs Act of 2017.

Topic 220 – ASU No. 2018-02, Income Statement – Reporting Comprehensive Income.

Topic 606 – ASU No. 2014-09, Revenue from Contracts with Customers.

Topic 815 – ASU No. 2017-12, Derivatives and Hedging.

New Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

NOTE 2. New Accounting Pronouncements

Accounting Standards Adopted in 2019

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Topic 220 resulted in a reclassification between accumulated other comprehensive income and retained earnings of $0.1 million, and had no impact on our consolidated results of operations.

Recently Issued Accounting Standards

Revenue

3 Months Ended

Mar. 31, 2019

Revenue

Note 3. Revenue

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended March 31, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	185,144	$	—	$	—	$	185,144
Core Benefits and Insurance		—		73,538		—		73,538
Non-core Benefits and Insurance		—		2,717		—		2,717
Managed networking, hardware services		—		—		6,424		6,424
National Practices consulting		—		—		2,175		2,175
Total revenue	$	185,144	$	76,255	$	8,599	$	269,998

	Three Months Ended March 31, 2018
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	180,603	$	—	$	—	$	180,603
Core Benefits and Insurance		—		74,122		—		74,122
Non-core Benefits and Insurance		—		3,208		—		3,208
Managed networking, hardware services		—		—		5,958		5,958
National Practices consulting		—		—		1,969		1,969
Other		—		—		230		230
Total revenue	$	180,603	$	77,330	$	8,157	$	266,090

Financial Services

the work performed to date to ensure that the amount of revenue recognized in each reporting period for the client arrangement is equal to the performance obligations met.

Benefits and Insurance Services

Revenue related to group health benefits consulting consists of (i) commissions, (ii) fee income which can be fixed or variable based on a price per participant and (iii) contingent revenue.

•

Revenue related to property and casualty consists of (i) commissions and (ii) contingent revenue.

•

Revenue related to retirement plan services consist of (i) advisory, (ii) third party administration, and (iii) actuarial services.

•

Non-core Benefits and Insurance Services consist of transactional businesses that tend to fluctuate. These include life insurance, wholesale agency benefits and talent and compensation services.

National Practices

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2019

Note 4. Accounts Receivable, Net

Accounts receivable, net balances at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Trade accounts receivable	$	167,624		$	159,992
Unbilled revenue		109,384			60,684
Total accounts receivable		277,008			220,676
Allowance for doubtful accounts		(12,574	)		(13,389	)
Accounts receivable, net	$	264,434		$	207,287

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2019

Goodwill and Other Intangible Assets, Net

Note 5. Goodwill and Other Intangible Assets, Net

The components of goodwill and other intangible assets, net at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Goodwill	$	566,009		$	564,300
Intangible assets:
Client lists		182,184			181,564
Other intangible assets		9,450			9,447
Total intangible assets		191,634			191,011
Total goodwill and intangibles assets		757,643			755,311
Accumulated amortization:
Client lists		(116,103	)		(112,905	)
Other intangible assets		(5,659	)		(5,397	)
Total accumulated amortization		(121,762	)		(118,302	)
Goodwill and other intangible assets, net	$	635,881		$	637,009

Depreciation and Amortization

3 Months Ended

Mar. 31, 2019

Depreciation and Amortization

Note 6. Depreciation and Amortization

Depreciation and amortization expense for property and equipment and intangible assets for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Operating expenses	$	5,624	$	5,682
Corporate general and administrative expenses		35		93
Total depreciation and amortization expense	$	5,659	$	5,775

Debt and Financing Arrangements

3 Months Ended

Mar. 31, 2019

Debt and Financing Arrangements

Note 7. Debt and Financing Arrangements

Rates for the three months ended March 31, 2019 and 2018 were as follows:

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

In addition to those items disclosed above, we are, from time to time, subject to claims and suits arising in the ordinary course of business.

Financial Instruments

3 Months Ended

Mar. 31, 2019

Financial Instruments

Note 9. Financial Instruments

	Three Months Ended			Twelve Months Ended
	March 31, 2019			December 31, 2018
Fair value at beginning of period	$	56,556		$	51,101
Purchases		9,470			18,426
Redemptions		—			(1,793	)
Maturities and calls		(6,865	)		(10,445	)
Change in bond premium		(171	)		(377	)
Fair market value adjustment		697			(356	)
Fair value at end of period	$	59,687		$	56,556

The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	533	Other non-current assets
	December 31, 2018
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	1,096	Other non-current assets

	(Loss) Gain Recognized in AOCL, Net of Tax					Loss Reclassified from AOCL into Expense
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2019			2018		2019			2018
Interest rate swap	$	(427	)	$	450	$	(139	)	$	(38	)

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Note 10. Fair Value Measurements

	Level	March 31, 2019			December 31, 2018
Deferred compensation plan assets	1	$	95,983		$	84,435
Corporate and municipal bonds	1	$	59,687		$	56,556
Deferred compensation plan liabilities	1	$	(95,983	)	$	(84,435	)
Interest rate swaps	2	$	533		$	1,096
Contingent purchase price liabilities	3	$	(37,548	)	$	(39,708	)

	2019			2018
Beginning balance – January 1	$	(39,708	)	$	(37,574	)
Additions from business acquisitions		(1,806	)		(8,320	)
Settlement of contingent purchase price liabilities		3,685			2,879
Change in fair value of contingencies		502			(1,370	)
Change in net present value of contingencies		(221	)		(239	)
Ending balance – March 31	$	(37,548	)	$	(44,624	)

Other Comprehensive Income

3 Months Ended

Mar. 31, 2019

Other Comprehensive Income

Note 11. Other Comprehensive Income

	Three Months Ended
	March 31,
	2019			2018
Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1)	$	510		$	(330	)
Net unrealized (loss) gain on interest rate swaps, net of income taxes (2)		(427	)		450
Foreign currency translation		(2	)		(6	)
Total other comprehensive income	$	81		$	114

(1)

Net of income tax expense (benefit) of $189 and $($122) for the three months ended March 31, 2019 and 2018, respectively.

(2)

Net of income tax (benefit) expense of ($132) and $138 for the three months ended March 31, 2019 and 2018, respectively.

Employee Share Plans

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Share Plans

Note 12. Employee Share Plans

	Three Months Ended
	March 31,
	2019		2018
Stock options	$	519	$	518
Restricted stock awards		929		919
Performance share units		34		—
Total stock-based compensation expense	$	1,482	$	1,437

	Stock Options					Restricted Stock Awards
	Number of Options			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value (1)
Outstanding at beginning of year		3,622		$	11.97		632		$	15.35
Granted		—		$	—		173		$	19.82
Exercised / Vested		(189	)	$	7.40		(63	)	$	14.31
Expired or cancelled		—		$	—		—		$	—
Outstanding at March 31, 2019		3,433		$	12.22		742		$	16.48
Exercisable at March 31, 2019		1,882		$	9.40

(1)

Represents weighted average market value of the shares; awards are granted at no cost to the recipients.

The following table presents our PSU award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	PSUs		Fair Value
Outstanding at beginning of year	$	—	$	—
Granted		173	$	19.82
Vested		—	$	—
Expired or cancelled		—	$	—
Outstanding at March 31, 2019	$	173	$	19.82

Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share

Note 13. Earnings Per Share

	Three Months Ended
	March 31,
	2019		2018
Numerator:
Income from continuing operations	$	37,565	$	35,810
Denominator:
Basic
Weighted average common shares outstanding		54,287		54,071
Diluted
Stock options (1)		1,311		1,449
Restricted stock awards (1)		274		367
Contingent shares (2)		43		37
Diluted weighted average common shares outstanding (3)		55,915		55,924
Basic earnings per share from continuing operations	$	0.69	$	0.66
Diluted earnings per share from continuing operations	$	0.67	$	0.64

(1)

(2)

(3)

Acquisitions

3 Months Ended

Mar. 31, 2019

Discontinued Operations And Disposal Groups [Abstract]

Acquisitions

Note 14. Acquisitions

	Three Months Ended
	March 31,
	2019			2018
Accounts receivable, net	$	550		$	1,255
Identifiable intangible assets		654			457
Other current assets		5			—
Current liabilities		(288	)		(805	)
Total identifiable net assets	$	921		$	907
Goodwill		2,165			22,943
Aggregate purchase price	$	3,086		$	23,850

Client Lists – During the three months ended March 31, 2019 and 2018, we did not purchase any client lists.

Discontinued Operations and Divestitures

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Divestitures

Note 15. Discontinued Operations and Divestitures

Segment Disclosures

3 Months Ended

Mar. 31, 2019

Segment Disclosures

Note 16. Segment Disclosures

Financial Services

Benefits and Insurance Services

National Practices

• Accounting and Tax

• Government Healthcare Consulting

• Financial Advisory

• Valuation

• Risk & Advisory Services

• Group Health Benefits Consulting

• Payroll

• Property & Casualty

• Retirement Plan Services

• Managed Networking and Hardware Services

• Healthcare Consulting

Segment information for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended March 31, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	185,144		$	76,255		$	8,599	$	—		$	269,998
Operating expenses		134,458			61,371			8,000		11,667			215,496
Gross margin		50,686			14,884			599		(11,667	)		54,502
Corporate general & administrative expenses		—			—			—		11,680			11,680
Operating income (loss)		50,686			14,884			599		(23,347	)		42,822
Other income (expense):
Interest expense		—			(10	)		—		(1,391	)		(1,401	)
Gain on sale of operations, net		497			—			—		—			497
Other (expense) income, net		(136	)		21			—		9,375			9,260
Total other (expense) income		361			11			—		7,984			8,356
Income (loss) from continuing operations before income tax expense	$	51,047		$	14,895		$	599	$	(15,363	)	$	51,178

	Three Months Ended March 31, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	180,603	$	77,330		$	8,157	$	—		$	266,090
Operating expenses		133,033		61,133			7,275		3,309			204,750
Gross margin		47,570		16,197			882		(3,309	)		61,340
Corporate general & administrative expenses		—		—			—		10,028			10,028
Operating income (loss)		47,570		16,197			882		(13,337	)		51,312
Other income (expense):
Interest expense		—		(75	)		—		(1,705	)		(1,780	)
Gain on sale of operations, net		—		663			—		—			663
Other income (expense), net		265		193			—		(1,687	)		(1,229	)
Total other income (expense)		265		781			—		(3,392	)		(2,346	)
Income (loss) from continuing operations before income tax expense	$	47,835	$	16,978		$	882	$	(16,729	)	$	48,966

Leases

3 Months Ended

Mar. 31, 2019

Leases

NOTE 17. LEASES

We have operating leases primarily for office facilities, automobiles and information technology equipment. Office facilities account for approximately 96% of our total lease liability.

Balance sheet information related to the Company’s operating leases as of March 31, 2019 was as follows (in thousands):



	March 31, 2019
Operating lease ROU assets	$	145,574
Current portion of operating lease liabilities		28,647
Noncurrent portion of operating lease liabilities		138,373
Total operating lease liabilities	$	167,020

		March 31, 2019
Weighted-average remaining lease term		7.1 years
Weighted-average discount rate		4.1%

The components of lease expense and other lease information as of and during the three-month period ended March 31, 2019 are as follows (in thousands):

	March 31, 2019
Operating lease cost	$	9,242
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	9,260

The following table summarizes the maturity of our operating lease liabilities as of March 31, 2019 (in thousands):

	Operating Leases
2019	$	25,975
2020		30,588
2021		26,243
2022		20,423
2023		19,097
Thereafter		66,194
Total undiscounted lease payments		188,520
Less: imputed interest		(21,500	)
Total lease liabilities	$	167,020

The following table summarizes the maturity of our operating lease commitments as of December 31, 2018 (in thousands):

	Operating Leases
2019	$	34,256
2020		30,419
2021		26,172
2022		20,358
2023		18,981
Thereafter		65,854
Total future minimum rental commitments	$	196,040

Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 18. Subsequent Events

Subsequent to March 31, 2019 and through April 30, 2019, we repurchased 179 thousand shares of our common stock in the open market at a cost of $3.5 million.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Unaudited Interim Financial Statements

Description of Business

Selected Terms Used in Notes to the Consolidated Financial Statements

ASA – Administrative Service Agreement.

ASC – Accounting Standards Codification.

ASU – Accounting Standards Update

CPA firm – Certified Public Accounting firm.

FASB – The Financial Accounting Standards Board.

GAAP – United States Generally Accepted Accounting Principles.

LIBOR – London Interbank Offered Rate.

Legacy ASC Topic 840 – ASC Topic 840, Leases.

New Lease Standard – ASU No. 2016-12, Leases.

ROU – Right-of-Use Asset.

SEC – United States Securities and Exchange Commission.

Tax Act – Tax Cuts and Jobs Act of 2017.

Topic 220 – ASU No. 2018-02, Income Statement – Reporting Comprehensive Income.

Topic 606 – ASU No. 2014-09, Revenue from Contracts with Customers.

Topic 815 – ASU No. 2017-12, Derivatives and Hedging.

Basis of Consolidation

Use Of Estimates

Changes In Accounting Policy

Revision of Previously Reported Financial Information

Accounting Changes And Error Corrections [Abstract]

Accounting Standards Adopted in 2019

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Topic 220 resulted in a reclassification between accumulated other comprehensive income and retained earnings of $0.1 million, and had no impact on our consolidated results of operations.

Recently Issued Accounting Standards

New Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Impact of Adopting New Lease Standards on Consolidated Balance Sheet

The following table presents the impact of adopting the New Lease Standard on our consolidated balance sheet.

	Balance at				Balance at
	December 31, 2018		New Lease Standard		January 1, 2019
Operating lease right-of-use asset, net	$	—	$	148,884	$	148,884
Total assets		1,183,031		148,884		1,331,915
Operating lease liability - current		—		28,407		28,407
Total current liabilities		321,314		28,407		349,721
Operating lease liability - non-current		—		120,477		120,477
Total non-current liabilities		268,054		120,477		388,531
Total liabilities and stockholders' equity		1,183,031		148,884		1,331,915

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Disaggregation of Revenue by Source

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended March 31, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	185,144	$	—	$	—	$	185,144
Core Benefits and Insurance		—		73,538		—		73,538
Non-core Benefits and Insurance		—		2,717		—		2,717
Managed networking, hardware services		—		—		6,424		6,424
National Practices consulting		—		—		2,175		2,175
Total revenue	$	185,144	$	76,255	$	8,599	$	269,998

	Three Months Ended March 31, 2018
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	180,603	$	—	$	—	$	180,603
Core Benefits and Insurance		—		74,122		—		74,122
Non-core Benefits and Insurance		—		3,208		—		3,208
Managed networking, hardware services		—		—		5,958		5,958
National Practices consulting		—		—		1,969		1,969
Other		—		—		230		230
Total revenue	$	180,603	$	77,330	$	8,157	$	266,090

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Accounts receivable, net balances at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Trade accounts receivable	$	167,624		$	159,992
Unbilled revenue		109,384			60,684
Total accounts receivable		277,008			220,676
Allowance for doubtful accounts		(12,574	)		(13,389	)
Accounts receivable, net	$	264,434		$	207,287

Goodwill and Other Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2019

Components of Goodwill and Other Intangible Assets, Net

The components of goodwill and other intangible assets, net at March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Goodwill	$	566,009		$	564,300
Intangible assets:
Client lists		182,184			181,564
Other intangible assets		9,450			9,447
Total intangible assets		191,634			191,011
Total goodwill and intangibles assets		757,643			755,311
Accumulated amortization:
Client lists		(116,103	)		(112,905	)
Other intangible assets		(5,659	)		(5,397	)
Total accumulated amortization		(121,762	)		(118,302	)
Goodwill and other intangible assets, net	$	635,881		$	637,009

Depreciation and Amortization (Tables)

3 Months Ended

Mar. 31, 2019

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 months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Operating expenses	$	5,624	$	5,682
Corporate general and administrative expenses		35		93
Total depreciation and amortization expense	$	5,659	$	5,775

Debt and Financing Arrangements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Unsecured Credit Facility

Rates for the three months ended March 31, 2019 and 2018 were as follows:

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Outstanding Interest Rate Swaps

Summary of Bond Activity

The following table summarizes our bond activity for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):

	Three Months Ended			Twelve Months Ended
	March 31, 2019			December 31, 2018
Fair value at beginning of period	$	56,556		$	51,101
Purchases		9,470			18,426
Redemptions		—			(1,793	)
Maturities and calls		(6,865	)		(10,445	)
Change in bond premium		(171	)		(377	)
Fair market value adjustment		697			(356	)
Fair value at end of period	$	59,687		$	56,556

The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at March 31, 2019 and December 31, 2018 (in thousands):

	March 31, 2019
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	533	Other non-current assets
	December 31, 2018
	Notional		Fair
	Amount		Value		Balance Sheet Location
Interest rate swaps	$	70,000	$	1,096	Other non-current assets

Summary of Effects of Interest Rate Swap

	(Loss) Gain Recognized in AOCL, Net of Tax					Loss Reclassified from AOCL into Expense
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2019			2018		2019			2018
Interest rate swap	$	(427	)	$	450	$	(139	)	$	(38	)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Level	March 31, 2019			December 31, 2018
Deferred compensation plan assets	1	$	95,983		$	84,435
Corporate and municipal bonds	1	$	59,687		$	56,556
Deferred compensation plan liabilities	1	$	(95,983	)	$	(84,435	)
Interest rate swaps	2	$	533		$	1,096
Contingent purchase price liabilities	3	$	(37,548	)	$	(39,708	)

Change in Level 3 Fair Values of Contingent Purchase Price Liabilities

	2019			2018
Beginning balance – January 1	$	(39,708	)	$	(37,574	)
Additions from business acquisitions		(1,806	)		(8,320	)
Settlement of contingent purchase price liabilities		3,685			2,879
Change in fair value of contingencies		502			(1,370	)
Change in net present value of contingencies		(221	)		(239	)
Ending balance – March 31	$	(37,548	)	$	(44,624	)

Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Other Comprehensive Income and Tax Impact

	Three Months Ended
	March 31,
	2019			2018
Net unrealized gain (loss) on available-for-sale securities, net of income taxes (1)	$	510		$	(330	)
Net unrealized (loss) gain on interest rate swaps, net of income taxes (2)		(427	)		450
Foreign currency translation		(2	)		(6	)
Total other comprehensive income	$	81		$	114

(1)

Net of income tax expense (benefit) of $189 and $($122) for the three months ended March 31, 2019 and 2018, respectively.

(2)

Net of income tax (benefit) expense of ($132) and $138 for the three months ended March 31, 2019 and 2018, respectively.

Employee Share Plans (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Share-Based Compensation Awards

Compensation expense for stock-based awards recognized during the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Stock options	$	519	$	518
Restricted stock awards		929		919
Performance share units		34		—
Total stock-based compensation expense	$	1,482	$	1,437

Performance Shares [Member]

	Stock Options					Restricted Stock Awards
	Number of Options			Weighted Average Exercise Price Per Share		Number of Shares			Weighted Average Grant-Date Fair Value (1)
Outstanding at beginning of year		3,622		$	11.97		632		$	15.35
Granted		—		$	—		173		$	19.82
Exercised / Vested		(189	)	$	7.40		(63	)	$	14.31
Expired or cancelled		—		$	—		—		$	—
Outstanding at March 31, 2019		3,433		$	12.22		742		$	16.48
Exercisable at March 31, 2019		1,882		$	9.40

(1)

Represents weighted average market value of the shares; awards are granted at no cost to the recipients.

The following table presents our PSU award activity during the three months ended March 31, 2019 (in thousands, except per share data):

	PSUs		Fair Value
Outstanding at beginning of year	$	—	$	—
Granted		173	$	19.82
Vested		—	$	—
Expired or cancelled		—	$	—
Outstanding at March 31, 2019	$	173	$	19.82

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Computation of Basic and Diluted Earnings Per Share from Continuing Operations

	Three Months Ended
	March 31,
	2019		2018
Numerator:
Income from continuing operations	$	37,565	$	35,810
Denominator:
Basic
Weighted average common shares outstanding		54,287		54,071
Diluted
Stock options (1)		1,311		1,449
Restricted stock awards (1)		274		367
Contingent shares (2)		43		37
Diluted weighted average common shares outstanding (3)		55,915		55,924
Basic earnings per share from continuing operations	$	0.69	$	0.66
Diluted earnings per share from continuing operations	$	0.67	$	0.64

(1)

(2)

(3)

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed

	Three Months Ended
	March 31,
	2019			2018
Accounts receivable, net	$	550		$	1,255
Identifiable intangible assets		654			457
Other current assets		5			—
Current liabilities		(288	)		(805	)
Total identifiable net assets	$	921		$	907
Goodwill		2,165			22,943
Aggregate purchase price	$	3,086		$	23,850

Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Segment Information

Segment information for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended March 31, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	185,144		$	76,255		$	8,599	$	—		$	269,998
Operating expenses		134,458			61,371			8,000		11,667			215,496
Gross margin		50,686			14,884			599		(11,667	)		54,502
Corporate general & administrative expenses		—			—			—		11,680			11,680
Operating income (loss)		50,686			14,884			599		(23,347	)		42,822
Other income (expense):
Interest expense		—			(10	)		—		(1,391	)		(1,401	)
Gain on sale of operations, net		497			—			—		—			497
Other (expense) income, net		(136	)		21			—		9,375			9,260
Total other (expense) income		361			11			—		7,984			8,356
Income (loss) from continuing operations before income tax expense	$	51,047		$	14,895		$	599	$	(15,363	)	$	51,178

	Three Months Ended March 31, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	180,603	$	77,330		$	8,157	$	—		$	266,090
Operating expenses		133,033		61,133			7,275		3,309			204,750
Gross margin		47,570		16,197			882		(3,309	)		61,340
Corporate general & administrative expenses		—		—			—		10,028			10,028
Operating income (loss)		47,570		16,197			882		(13,337	)		51,312
Other income (expense):
Interest expense		—		(75	)		—		(1,705	)		(1,780	)
Gain on sale of operations, net		—		663			—		—			663
Other income (expense), net		265		193			—		(1,687	)		(1,229	)
Total other income (expense)		265		781			—		(3,392	)		(2,346	)
Income (loss) from continuing operations before income tax expense	$	47,835	$	16,978		$	882	$	(16,729	)	$	48,966

Leases (Tables)

3 Months Ended

Mar. 31, 2019