Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]



13.	Commitments and Contingencies

We enter into fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of, construction contract for the new facility, advertising commitments and service contracts. At December 31, 2015, future purchase and service obligations greater than $100,000 and one year were as follows (in thousands):



2016	$	20,554	⁽¹⁾
2017	6,245
2018	4,695
2019	1,774
2020	1,493
Thereafter	1,200
Total obligations	$	35,961

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⁽¹⁾	Includes $13 million related to the construction of a new facility on our corporate campus.

Worksite Employee 401(k) Retirement Plan Class Action Litigation

In December 2015, a class action lawsuit was filed against us and the Company’s third party discretionary trustee of the Worksite Employee Plan (the “Plan”) in the United States District Court for the Northern District of Georgia, Atlanta Division on behalf of participants in the Plan, which is the Insperity 401(k) retirement plan covering worksite employees. This suit generally alleges that the Company’s third party discretionary trustee of the Plan and Insperity breached their fiduciary duties to plan participants by selecting an Insperity subsidiary to serve as the recordkeeper for the Plan, by causing participants in the Plan to pay excessive recordkeeping fees to the Insperity subsidiary and by making imprudent investment choices. We believe the Company has meritorious defenses and we intend to vigorously defend this litigation. As a result of uncertainty regarding the outcome of this matter, no provision has been made in the accompanying consolidated financial statements.

Other Litigation

We are a defendant in various lawsuits and claims arising in the normal course of business. Management believes it has valid defenses in these cases and is defending them vigorously. While the results of litigation cannot be predicted with certainty, except as set forth below, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations.