x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 94-1648752 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2884 Sand Hill Road, Menlo Park, California | 94025 | |
(Address of principal executive offices) | (Zip code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, Par Value $.001 per Share | New York Stock Exchange |
• | create additional regulations that prohibit or restrict the types of employment services that the Company currently provides; |
• | require new or additional benefits be paid to the Company’s employees; |
• | require the Company to obtain additional licensing to provide employment services; or |
• | increase taxes, such as sales or value-added taxes, payable by the providers of temporary workers. |
Sales Prices | ||||||||
2016 | High | Low | ||||||
4th Quarter | $ | 49.63 | $ | 34.42 | ||||
3rd Quarter | $ | 41.50 | $ | 35.67 | ||||
2nd Quarter | $ | 47.26 | $ | 34.34 | ||||
1st Quarter | $ | 46.75 | $ | 36.17 |
Sales Prices | ||||||||
2015 | High | Low | ||||||
4th Quarter | $ | 54.01 | $ | 44.95 | ||||
3rd Quarter | $ | 58.00 | $ | 49.18 | ||||
2nd Quarter | $ | 60.54 | $ | 54.58 | ||||
1st Quarter | $ | 63.27 | $ | 55.60 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under Publicly Announced Plans (b) | ||||||||||||
October 1, 2016 to October 31, 2016 | 100,000 | $ | 37.39 | 100,000 | 7,379,781 | ||||||||||
November 1, 2016 to November 30, 2016 | 347,179 | $ | 41.53 | 347,179 | 7,032,602 | ||||||||||
December 1, 2016 to December 31, 2016 | 757,563 | (a) | $ | 48.86 | 666,015 | 6,366,587 | |||||||||
Total October 1, 2016 to December 31, 2016 | 1,204,742 | 1,113,194 |
(a) | Includes 91,548 shares repurchased in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable withholding taxes and/or exercise price. |
(b) | Commencing in October 1997, the Company’s Board of Directors has, at various times, authorized the repurchase, from time to time, of the Company’s common stock on the open market or in privately negotiated transactions depending on market conditions. Since plan inception, a total of 108,000,000 shares have been authorized for repurchase of which 101,633,413 shares have been repurchased as of December 31, 2016. |
(a) | This index represents the cumulative total return of the Company and the following corporations providing temporary or permanent employment services: CDI Corp.; Kelly Services, Inc.; Kforce Inc.; ManpowerGroup; and Resources Connection Inc. |
Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Net service revenues | $ | 5,250,399 | $ | 5,094,933 | $ | 4,695,014 | $ | 4,245,895 | $ | 4,111,213 | ||||||||||
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses | 3,089,723 | 2,980,462 | 2,772,098 | 2,522,803 | 2,462,153 | |||||||||||||||
Gross margin | 2,160,676 | 2,114,471 | 1,922,916 | 1,723,092 | 1,649,060 | |||||||||||||||
Selling, general and administrative expenses | 1,606,217 | 1,533,799 | 1,425,734 | 1,324,815 | 1,305,614 | |||||||||||||||
Amortization of intangible assets | 1,237 | 192 | 557 | 1,700 | 398 | |||||||||||||||
Interest income, net | (888 | ) | (550 | ) | (724 | ) | (1,002 | ) | (1,197 | ) | ||||||||||
Income before income taxes | 554,110 | 581,030 | 497,349 | 397,579 | 344,245 | |||||||||||||||
Provision for income taxes | 210,721 | 223,234 | 191,421 | 145,384 | 134,303 | |||||||||||||||
Net income | $ | 343,389 | $ | 357,796 | $ | 305,928 | $ | 252,195 | $ | 209,942 | ||||||||||
Net income available to common stockholders—diluted | $ | 343,389 | $ | 357,796 | $ | 305,928 | $ | 252,192 | $ | 208,867 | ||||||||||
Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
Net Income Per Share: | ||||||||||||||||||||
Basic | $ | 2.68 | $ | 2.72 | $ | 2.28 | $ | 1.85 | $ | 1.51 | ||||||||||
Diluted | $ | 2.67 | $ | 2.69 | $ | 2.26 | $ | 1.83 | $ | 1.50 | ||||||||||
Shares: | ||||||||||||||||||||
Basic | 127,991 | 131,749 | 134,358 | 136,153 | 138,201 | |||||||||||||||
Diluted | 128,766 | 132,930 | 135,541 | 137,589 | 139,409 | |||||||||||||||
Cash Dividends Declared Per Share | $ | .88 | $ | .80 | $ | .72 | $ | .64 | $ | .60 | ||||||||||
December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Total assets | $ | 1,777,971 | $ | 1,671,044 | (a) | $ | 1,620,830 | (a) | $ | 1,479,670 | (a) | $ | 1,367,027 | (a) | ||||||
Notes payable and other indebtedness, less current portion | $ | 840 | $ | 1,007 | $ | 1,159 | $ | 1,300 | $ | 1,428 | ||||||||||
Stockholders’ equity | $ | 1,086,599 | $ | 1,003,781 | $ | 979,858 | $ | 919,643 | $ | 842,011 |
Global | United States | International | ||||||||||||
Temporary and consultant staffing | ||||||||||||||
As Reported | 2.4 | % | 2.0 | % | 4.2 | % | ||||||||
Billing Days Impact | -0.1 | % | -0.1 | % | -0.1 | % | ||||||||
Currency Impact | 0.5 | % | — | 2.8 | % | |||||||||
Same Billing Days and Constant Currency | 2.8 | % | 1.9 | % | 6.9 | % | ||||||||
Permanent placement staffing | ||||||||||||||
As Reported | -0.5 | % | 0.3 | % | -2.3 | % | ||||||||
Billing Days Impact | -0.1 | % | -0.2 | % | -0.1 | % | ||||||||
Currency Impact | 0.9 | % | — | 3.0 | % | |||||||||
Same Billing Days and Constant Currency | 0.3 | % | 0.1 | % | 0.6 | % | ||||||||
Risk consulting and internal audit services | ||||||||||||||
As Reported | 8.3 | % | 8.0 | % | 9.6 | % | ||||||||
Billing Days Impact | -0.2 | % | -0.1 | % | -0.2 | % | ||||||||
Currency Impact | 0.4 | % | — | 2.3 | % | |||||||||
Same Billing Days and Constant Currency | 8.5 | % | 7.9 | % | 11.7 | % |
Global | United States | International | ||||||||||||
Temporary and consultant staffing | ||||||||||||||
As Reported | 6.9 | % | 11.5 | % | -8.9 | % | ||||||||
Billing Days Impact | 0.0 | % | -0.1 | % | -0.1 | % | ||||||||
Currency Impact | 3.4 | % | — | 15.4 | % | |||||||||
Same Billing Days and Constant Currency | 10.3 | % | 11.4 | % | 6.4 | % | ||||||||
Permanent placement staffing | ||||||||||||||
As Reported | 6.8 | % | 15.5 | % | -9.3 | % | ||||||||
Billing Days Impact | -0.1 | % | -0.1 | % | 0.0 | % | ||||||||
Currency Impact | 5.0 | % | — | 14.2 | % | |||||||||
Same Billing Days and Constant Currency | 11.7 | % | 15.4 | % | 4.9 | % | ||||||||
Risk consulting and internal audit services | ||||||||||||||
As Reported | 19.0 | % | 22.3 | % | 4.0 | % | ||||||||
Billing Days Impact | 0.1 | % | 0.2 | % | 0.2 | % | ||||||||
Currency Impact | 2.7 | % | — | 14.5 | % | |||||||||
Same Billing Days and Constant Currency | 21.8 | % | 22.5 | % | 18.7 | % |
Payments due by period | ||||||||||||||||||||
Contractual Obligations | 2017 | 2018 and 2019 | 2020 and 2021 | Thereafter | Total | |||||||||||||||
Long-term debt obligations | $ | 252 | $ | 505 | $ | 505 | $ | — | $ | 1,262 | ||||||||||
Operating lease obligations | 85,143 | 126,554 | 81,304 | 66,939 | 359,940 | |||||||||||||||
Purchase obligations | 52,920 | 19,936 | 111 | — | 72,967 | |||||||||||||||
Other liabilities | 1,251 | 1,539 | 1,402 | 5,866 | 10,058 | |||||||||||||||
Total | $ | 139,566 | $ | 148,534 | $ | 83,322 | $ | 72,805 | $ | 444,227 |
December 31, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 260,201 | $ | 224,577 | ||||
Accounts receivable, less allowances of $33,133 and $35,087 | 703,228 | 704,640 | ||||||
Other current assets | 320,805 | 268,780 | ||||||
Total current assets | 1,284,234 | 1,197,997 | ||||||
Goodwill | 209,793 | 208,579 | ||||||
Other intangible assets, net | 3,671 | 4,508 | ||||||
Property and equipment, net | 161,509 | 142,906 | ||||||
Noncurrent deferred income taxes | 118,764 | 117,054 | ||||||
Total assets | $ | 1,777,971 | $ | 1,671,044 | ||||
LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 135,540 | $ | 148,108 | ||||
Accrued payroll and benefit costs | 539,048 | 504,782 | ||||||
Income taxes payable | 5,141 | 2,506 | ||||||
Current portion of notes payable and other indebtedness | 167 | 153 | ||||||
Total current liabilities | 679,896 | 655,549 | ||||||
Notes payable and other indebtedness, less current portion | 840 | 1,007 | ||||||
Other liabilities | 10,636 | 10,707 | ||||||
Total liabilities | 691,372 | 667,263 | ||||||
Commitments and Contingencies (Note I) | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock, $.001 par value authorized 5,000,000 shares; issued and outstanding zero shares | — | — | ||||||
Common stock, $.001 par value authorized 260,000,000 shares; issued and outstanding 127,796,558 and 131,156,043 shares | 128 | 131 | ||||||
Capital surplus | 1,022,411 | 979,477 | ||||||
Accumulated other comprehensive loss | (20,502 | ) | (10,294 | ) | ||||
Retained earnings | 84,562 | 34,467 | ||||||
Total stockholders’ equity | 1,086,599 | 1,003,781 | ||||||
Total liabilities and stockholders’ equity | $ | 1,777,971 | $ | 1,671,044 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net service revenues | $ | 5,250,399 | $ | 5,094,933 | $ | 4,695,014 | ||||||
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses | 3,089,723 | 2,980,462 | 2,772,098 | |||||||||
Gross margin | 2,160,676 | 2,114,471 | 1,922,916 | |||||||||
Selling, general and administrative expenses | 1,606,217 | 1,533,799 | 1,425,734 | |||||||||
Amortization of intangible assets | 1,237 | 192 | 557 | |||||||||
Interest income, net | (888 | ) | (550 | ) | (724 | ) | ||||||
Income before income taxes | 554,110 | 581,030 | 497,349 | |||||||||
Provision for income taxes | 210,721 | 223,234 | 191,421 | |||||||||
Net income | $ | 343,389 | $ | 357,796 | $ | 305,928 | ||||||
Net income per share : | ||||||||||||
Basic | $ | 2.68 | $ | 2.72 | $ | 2.28 | ||||||
Diluted | $ | 2.67 | $ | 2.69 | $ | 2.26 | ||||||
Shares: | ||||||||||||
Basic | 127,991 | 131,749 | 134,358 | |||||||||
Diluted | 128,766 | 132,930 | 135,541 | |||||||||
Cash dividends declared per share | $ | .88 | $ | .80 | $ | .72 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
COMPREHENSIVE INCOME: | ||||||||||||
Net income | $ | 343,389 | $ | 357,796 | $ | 305,928 | ||||||
Foreign currency translation adjustments, net of tax | (10,208 | ) | (25,024 | ) | (23,341 | ) | ||||||
Total comprehensive income | $ | 333,181 | $ | 332,772 | $ | 282,587 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
COMMON STOCK—SHARES: | ||||||||||||
Balance at beginning of period | 131,156 | 135,134 | 137,466 | |||||||||
Net issuances of restricted stock | 1,039 | 785 | 938 | |||||||||
Repurchases of common stock | (4,405 | ) | (4,817 | ) | (3,798 | ) | ||||||
Exercises of stock options | 7 | 54 | 528 | |||||||||
Balance at end of period | 127,797 | 131,156 | 135,134 | |||||||||
COMMON STOCK—PAR VALUE: | ||||||||||||
Balance at beginning of period | $ | 131 | $ | 135 | $ | 137 | ||||||
Net issuances of restricted stock | 1 | 1 | 1 | |||||||||
Repurchases of common stock | (4 | ) | (5 | ) | (4 | ) | ||||||
Exercises of stock options | — | — | 1 | |||||||||
Balance at end of period | $ | 128 | $ | 131 | $ | 135 | ||||||
CAPITAL SURPLUS: | ||||||||||||
Balance at beginning of period | $ | 979,477 | $ | 928,157 | $ | 868,120 | ||||||
Net issuances of restricted stock at par value | (1 | ) | (1 | ) | (1 | ) | ||||||
Stock-based compensation expense | 42,699 | 41,292 | 40,821 | |||||||||
Exercises of stock options—excess over par value | 223 | 1,529 | 14,323 | |||||||||
Tax impact of equity incentive plans | 13 | 8,500 | 4,894 | |||||||||
Balance at end of period | $ | 1,022,411 | $ | 979,477 | $ | 928,157 | ||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME: | ||||||||||||
Balance at beginning of period | $ | (10,294 | ) | $ | 14,730 | $ | 38,071 | |||||
Foreign currency translation adjustments, net of tax | (10,208 | ) | (25,024 | ) | (23,341 | ) | ||||||
Balance at end of period | $ | (20,502 | ) | $ | (10,294 | ) | $ | 14,730 | ||||
RETAINED EARNINGS: | ||||||||||||
Balance at beginning of period | $ | 34,467 | $ | 36,836 | $ | 13,315 | ||||||
Net income | 343,389 | 357,796 | 305,928 | |||||||||
Repurchases of common stock—excess over par value | (178,780 | ) | (252,916 | ) | (183,969 | ) | ||||||
Cash dividends ($.88 per share, $.80 per share and $.72 per share) | (114,514 | ) | (107,249 | ) | (98,438 | ) | ||||||
Balance at end of period | $ | 84,562 | $ | 34,467 | $ | 36,836 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 343,389 | $ | 357,796 | $ | 305,928 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Amortization of intangible assets | 1,237 | 192 | 557 | |||||||||
Depreciation expense | 63,078 | 53,273 | 49,124 | |||||||||
Stock-based compensation expense—restricted stock and stock units | 42,699 | 41,292 | 40,821 | |||||||||
Excess tax benefits from stock-based compensation | (1,822 | ) | (8,762 | ) | (7,174 | ) | ||||||
Deferred income taxes | (1,868 | ) | (8,579 | ) | (3,643 | ) | ||||||
Provision for doubtful accounts | 9,192 | 12,005 | 9,825 | |||||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||||||
Increase in accounts receivable | (15,888 | ) | (75,745 | ) | (134,917 | ) | ||||||
Increase in accounts payable, accrued expenses, accrued payroll and benefit costs | 19,726 | 60,232 | 71,740 | |||||||||
(Decrease) increase in income taxes payable | (8,246 | ) | 19,948 | 16,359 | ||||||||
Change in other assets, net of change in other liabilities | (9,416 | ) | (13,416 | ) | (7,922 | ) | ||||||
Net cash flows provided by operating activities | 442,081 | 438,236 | 340,698 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Payments for acquisitions, net of cash acquired | (2,200 | ) | (14,668 | ) | — | |||||||
Capital expenditures | (82,956 | ) | (75,057 | ) | (62,830 | ) | ||||||
Payments to trusts for employee deferred compensation plans | (27,079 | ) | (28,225 | ) | (25,811 | ) | ||||||
Net cash flows used in investing activities | (112,235 | ) | (117,950 | ) | (88,641 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Repurchases of common stock | (176,031 | ) | (271,138 | ) | (153,821 | ) | ||||||
Cash dividends paid | (114,164 | ) | (107,561 | ) | (97,604 | ) | ||||||
Decrease in notes payable and other indebtedness | (154 | ) | (140 | ) | (128 | ) | ||||||
Excess tax benefits from stock-based compensation | 1,822 | 8,762 | 7,174 | |||||||||
Proceeds from exercises of stock options | 223 | 1,529 | 14,324 | |||||||||
Net cash flows used in financing activities | (288,304 | ) | (368,548 | ) | (230,055 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (5,918 | ) | (14,280 | ) | (10,647 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 35,624 | (62,542 | ) | 11,355 | ||||||||
Cash and cash equivalents at beginning of period | 224,577 | 287,119 | 275,764 | |||||||||
Cash and cash equivalents at end of period | $ | 260,201 | $ | 224,577 | $ | 287,119 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 266 | $ | 285 | $ | 330 | ||||||
Income taxes, net of refunds | $ | 219,415 | $ | 212,668 | $ | 178,375 | ||||||
Non-cash items: | ||||||||||||
Stock repurchases awaiting settlement | $ | 14,688 | $ | 11,935 | $ | 30,152 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Advertising Costs | $ | 47,312 | $ | 44,015 | $ | 42,335 |
Computer hardware | 2 to 3 years |
Computer software | 2 to 5 years |
Furniture and equipment | 5 years |
Leasehold improvements | Term of lease, 5 years maximum |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Internal-use software development costs | $ | 33,753 | $ | 31,964 | $ | 24,367 |
December 31, | ||||||||
2016 | 2015 | |||||||
Deposits in trusts for employee deferred compensation plans | $ | 236,371 | $ | 198,256 | ||||
Other | 84,434 | 70,524 | ||||||
$ | 320,805 | $ | 268,780 |
Goodwill | |||||||||||||||
Temporary and consultant staffing | Permanent placement staffing | Risk consulting and internal audit services | Total | ||||||||||||
Balance as of December 31, 2014 | $ | 133,964 | $ | 26,450 | $ | 39,074 | $ | 199,488 | |||||||
Acquisitions (a) | — | — | 10,988 | 10,988 | |||||||||||
Foreign currency translation adjustments | (791 | ) | (199 | ) | (907 | ) | (1,897 | ) | |||||||
Balance as of December 31, 2015 | $ | 133,173 | $ | 26,251 | $ | 49,155 | $ | 208,579 | |||||||
Acquisitions | 1,248 | — | 299 | 1,547 | |||||||||||
Foreign currency translation adjustments | (546 | ) | (236 | ) | 449 | (333 | ) | ||||||||
Balance as of December 31, 2016 | $ | 133,875 | $ | 26,015 | $ | 49,903 | $ | 209,793 |
December 31, | ||||||||
2016 | 2015 | |||||||
Computer hardware | $ | 170,746 | $ | 162,346 | ||||
Computer software | 374,490 | 339,634 | ||||||
Furniture and equipment | 100,472 | 96,536 | ||||||
Leasehold improvements | 133,541 | 118,491 | ||||||
Other | 9,993 | 9,560 | ||||||
Property and equipment, cost | 789,242 | 726,567 | ||||||
Accumulated depreciation | (627,733 | ) | (583,661 | ) | ||||
Property and equipment, net | $ | 161,509 | $ | 142,906 |
December 31, | ||||||||
2016 | 2015 | |||||||
Payroll and benefits | $ | 243,301 | $ | 240,793 | ||||
Employee deferred compensation plans | 252,349 | 212,220 | ||||||
Workers’ compensation | 19,361 | 25,834 | ||||||
Payroll taxes | 24,037 | 25,935 | ||||||
Accrued payroll and benefit costs | $ | 539,048 | $ | 504,782 |
December 31, | ||||||||
2016 | 2015 | |||||||
Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer | $ | 83,899 | $ | 81,874 |
2017 | $ | 167 | |
2018 | 183 | ||
2019 | 200 | ||
2020 | 218 | ||
2021 | 239 | ||
$ | 1,007 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current: | ||||||||||||
Federal | $ | 156,937 | $ | 181,640 | $ | 146,633 | ||||||
State | 34,927 | 36,281 | 33,054 | |||||||||
Foreign | 20,725 | 13,892 | 15,377 | |||||||||
Deferred: | ||||||||||||
Federal and state | (3,785 | ) | (8,398 | ) | (4,626 | ) | ||||||
Foreign | 1,917 | (181 | ) | 983 | ||||||||
$ | 210,721 | $ | 223,234 | $ | 191,421 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Domestic | $ | 494,890 | $ | 528,916 | $ | 446,886 | ||||||
Foreign | 59,220 | 52,114 | 50,463 | |||||||||
$ | 554,110 | $ | 581,030 | $ | 497,349 |
Years Ended December 31, | |||||||||
2016 | 2015 | 2014 | |||||||
Federal U.S. income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal tax benefit | 4.2 | 4.2 | 4.2 | ||||||
Non-deductible expenses | 0.5 | 0.5 | 0.6 | ||||||
Non-U.S. income taxed at different rates, net of foreign tax credits | (0.6 | ) | 0.1 | (0.2 | ) | ||||
Federal tax credits | (0.8 | ) | (0.6 | ) | (0.6 | ) | |||
Tax impact of uncertain tax positions | — | (0.2 | ) | (0.1 | ) | ||||
Valuation allowance release, net | (0.1 | ) | (0.5 | ) | (0.3 | ) | |||
Other, net | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||
Effective tax rate | 38.0 | % | 38.4 | % | 38.5 | % |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Amortization of franchise rights | $ | 500 | $ | 514 | $ | 514 | ||||||
Amortization of other intangibles | 1,221 | 1,590 | 1,241 | |||||||||
Accrued expenses, deducted for tax when paid | (6,889 | ) | (17,664 | ) | (14,221 | ) | ||||||
Capitalized costs for books, deducted for tax | 5,901 | 5,315 | 8,809 | |||||||||
Depreciation | (2,405 | ) | (5,932 | ) | (4,147 | ) | ||||||
Federal impact of unrecognized tax benefits | 75 | 1,058 | 44 | |||||||||
Foreign tax credit carryforwards | — | 3,636 | (186 | ) | ||||||||
Other, net | (271 | ) | 2,904 | 4,303 | ||||||||
$ | (1,868 | ) | $ | (8,579 | ) | $ | (3,643 | ) |
December 31, | ||||||||
2016 | 2015 | |||||||
Deferred Income Tax Assets | ||||||||
Provision for bad debts | $ | 10,510 | $ | 11,092 | ||||
Deferred compensation and other benefit obligations | 112,811 | 96,948 | ||||||
Workers’ compensation | 5,634 | 8,206 | ||||||
Stock-based compensation | 16,772 | 15,814 | ||||||
Credits and net operating loss carryforwards | 30,534 | 35,499 | ||||||
Other | 18,116 | 23,885 | ||||||
Total deferred income tax assets | 194,377 | 191,444 | ||||||
Deferred Income Tax Liabilities | ||||||||
Amortization of intangible assets | (28,681 | ) | (26,960 | ) | ||||
Property and equipment basis differences | (16,640 | ) | (11,890 | ) | ||||
Other | (11,658 | ) | (9,720 | ) | ||||
Total deferred income tax liabilities | (56,979 | ) | (48,570 | ) | ||||
Valuation allowance | (18,907 | ) | (26,329 | ) | ||||
Total deferred income tax assets, net | $ | 118,491 | $ | 116,545 |
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Balance at beginning of period | $ | 814 | $ | 4,573 | $ | 6,110 | ||||||
Gross increases—tax positions in prior years | 92 | — | 1 | |||||||||
Gross decreases—tax positions in prior years | — | (1,807 | ) | (333 | ) | |||||||
Gross increases—tax positions in current year | 114 | 120 | 35 | |||||||||
Settlements | — | (520 | ) | — | ||||||||
Lapse of statute of limitations | (289 | ) | (1,552 | ) | (1,240 | ) | ||||||
Balance at end of period | $ | 731 | $ | 814 | $ | 4,573 |
2017 | $ | 85,143 | |
2018 | 70,863 | ||
2019 | 55,691 | ||
2020 | 47,642 | ||
2021 | 33,662 | ||
Thereafter | 66,939 | ||
$ | 359,940 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Common stock repurchased (in shares) | 4,046 | 4,343 | 3,336 | |||||||||
Common stock repurchased | $ | 163,614 | $ | 228,166 | $ | 161,587 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Repurchases related to employee stock plans (in shares) | 359 | 474 | 462 | |||||||||
Repurchases related to employee stock plans | $ | 15,170 | $ | 24,755 | $ | 22,386 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Cash dividends declared per share | $ | .88 | $ | .80 | $ | .72 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Restricted stock and stock units - expense | $ | 42,699 | $ | 41,292 | $ | 40,821 |
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Restricted stock and stock units - unrecognized future costs | $ | 60,481 | $ | 60,627 | $ | 54,968 |
Restricted Stock Plans without Market-Condition | Restricted Stock Plans with Market-Condition | Stock Option Plans | |||||||||||||||||||
Number of Shares/ Units | Weighted Average Grant Date Fair Value | Number of Shares/ Units | Weighted Average Grant Date Fair Value | Number of Shares/ Units | Weighted Average Exercise Price Per Share | ||||||||||||||||
Outstanding, December 31, 2013 | 1,317 | $31.68 | 899 | $36.58 | 632 | $27.41 | |||||||||||||||
Granted | 585 | $41.60 | 335 | $50.09 | — | — | |||||||||||||||
Exercised | — | — | — | — | (528 | ) | $27.12 | ||||||||||||||
Restrictions lapsed | (712 | ) | $31.96 | — | — | — | — | ||||||||||||||
Forfeited | (25 | ) | $32.82 | — | — | (27 | ) | $27.83 | |||||||||||||
Outstanding, December 31, 2014 | 1,165 | $36.47 | 1,234 | $40.24 | 77 | $29.22 | |||||||||||||||
Granted | 502 | $58.14 | 257 | $71.86 | — | — | |||||||||||||||
Exercised | — | — | — | — | (54 | ) | $28.18 | ||||||||||||||
Restrictions lapsed | (599 | ) | $36.30 | (499 | ) | $31.41 | — | — | |||||||||||||
Forfeited | (16 | ) | $37.63 | — | — | (11 | ) | $30.94 | |||||||||||||
Outstanding, December 31, 2015 | 1,052 | $46.88 | 992 | $52.89 | 12 | $32.36 | |||||||||||||||
Granted | 772 | $38.47 | 358 | $45.93 | — | — | |||||||||||||||
Exercised | — | — | — | — | (7 | ) | $32.36 | ||||||||||||||
Restrictions lapsed | (545 | ) | $42.42 | (364 | ) | $43.04 | — | — | |||||||||||||
Forfeited | (36 | ) | $41.28 | (36 | ) | $43.04 | (5 | ) | $32.36 | ||||||||||||
Outstanding, December 31, 2016 | 1,243 | $43.78 | 950 | $54.42 | — | — |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Total pre-tax intrinsic value of stock options exercised | $ | 52 | $ | 1,709 | $ | 9,150 | ||||||
Total fair value of shares vested | $ | 39,302 | $ | 56,570 | $ | 38,566 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net income | $ | 343,389 | $ | 357,796 | $ | 305,928 | ||||||
Basic: | ||||||||||||
Weighted average shares | 127,991 | 131,749 | 134,358 | |||||||||
Diluted: | ||||||||||||
Weighted average shares | 127,991 | 131,749 | 134,358 | |||||||||
Dilutive effect of potential common shares | 775 | 1,181 | 1,183 | |||||||||
Diluted weighted average shares | 128,766 | 132,930 | 135,541 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 2.68 | $ | 2.72 | $ | 2.28 | ||||||
Diluted | $ | 2.67 | $ | 2.69 | $ | 2.26 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net service revenues | ||||||||||||
Temporary and consultant staffing | $ | 4,026,777 | $ | 3,930,843 | $ | 3,676,281 | ||||||
Permanent placement staffing | 419,314 | 421,411 | 394,515 | |||||||||
Risk consulting and internal audit services | 804,308 | 742,679 | 624,218 | |||||||||
$ | 5,250,399 | $ | 5,094,933 | $ | 4,695,014 | |||||||
Operating income | ||||||||||||
Temporary and consultant staffing | $ | 393,704 | $ | 399,808 | $ | 358,533 | ||||||
Permanent placement staffing | 80,001 | 85,019 | 78,333 | |||||||||
Risk consulting and internal audit services | 80,754 | 95,845 | 60,316 | |||||||||
554,459 | 580,672 | 497,182 | ||||||||||
Amortization of intangible assets | 1,237 | 192 | 557 | |||||||||
Interest income, net | (888 | ) | (550 | ) | (724 | ) | ||||||
Income before income taxes | $ | 554,110 | $ | 581,030 | $ | 497,349 |
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Accounts receivable | ||||||||||||
Temporary and consultant staffing | $ | 403,074 | $ | 425,179 | $ | 403,615 | ||||||
Permanent placement staffing | 129,506 | 121,670 | 115,563 | |||||||||
Risk consulting and internal audit services | 203,781 | 192,878 | 169,042 | |||||||||
$ | 736,361 | $ | 739,727 | $ | 688,220 | |||||||
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Goodwill | ||||||||||||
Temporary and consultant staffing | $ | 133,875 | $ | 133,173 | $ | 133,964 | ||||||
Permanent placement staffing | 26,015 | 26,251 | 26,450 | |||||||||
Risk consulting and internal audit services | 49,903 | 49,155 | 39,074 | |||||||||
$ | 209,793 | $ | 208,579 | $ | 199,488 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net service revenues (a) | ||||||||||||
Domestic | $ | 4,220,477 | $ | 4,105,013 | $ | 3,623,812 | ||||||
Foreign (b) | 1,029,922 | 989,920 | 1,071,202 | |||||||||
$ | 5,250,399 | $ | 5,094,933 | $ | 4,695,014 | |||||||
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Assets, long-lived | ||||||||||||
Domestic | $ | 136,434 | $ | 117,176 | $ | 101,181 | ||||||
Foreign | 25,075 | 25,730 | 20,573 | |||||||||
$ | 161,509 | $ | 142,906 | $ | 121,754 |
Quarter | |||||||||||||||
2016 | 1 | 2 | 3 | 4 | |||||||||||
Net service revenues | $ | 1,302,625 | $ | 1,344,160 | $ | 1,338,541 | $ | 1,265,073 | |||||||
Gross margin | $ | 531,972 | $ | 556,993 | $ | 552,509 | $ | 519,202 | |||||||
Income before income taxes | $ | 133,791 | $ | 149,414 | $ | 146,324 | $ | 124,581 | |||||||
Net income | $ | 83,416 | $ | 91,616 | $ | 90,569 | $ | 77,788 | |||||||
Basic net income per share | $ | .65 | $ | .71 | $ | .71 | $ | .61 | |||||||
Diluted net income per share | $ | .64 | $ | .71 | $ | .71 | $ | .61 |
Quarter | |||||||||||||||
2015 | 1 | 2 | 3 | 4 | |||||||||||
Net service revenues | $ | 1,205,563 | $ | 1,272,058 | $ | 1,312,718 | $ | 1,304,594 | |||||||
Gross margin | $ | 494,087 | $ | 530,502 | $ | 549,801 | $ | 540,081 | |||||||
Income before income taxes | $ | 128,174 | $ | 149,235 | $ | 159,306 | $ | 144,315 | |||||||
Net income | $ | 77,922 | $ | 89,706 | $ | 96,725 | $ | 93,443 | |||||||
Basic net income per share | $ | .59 | $ | .68 | $ | .74 | $ | .71 | |||||||
Diluted net income per share | $ | .58 | $ | .67 | $ | .73 | $ | .71 |
Quarterly dividend per share | $.24 |
Declaration date | February 8, 2017 |
Record date | February 24, 2017 |
Payment date | March 15, 2017 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights A | Weighted average exercise price of outstanding options, warrants and rights B | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column A) C | |||
Equity compensation plans approved by security holders | — | $— | 4,707,916 | |||
Equity compensation plans not approved by security holders | — | — | — | |||
Total | — | $— | 4,707,916 |
(a) | 1. Financial Statements |
Exhibit No. | Exhibit | |
3.1 | Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.1 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009. | |
3.2 | Amended and Restated By-Laws, incorporated by reference to Exhibit 3.2 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016. | |
4.1 | Restated Certificate of Incorporation of Registrant (filed as Exhibit 3.1). | |
*10.1 | Form of Power of Attorney and Indemnification Agreement, incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2002. | |
*10.2 | Employment Agreement between the Registrant and Harold M. Messmer, Jr., incorporated by reference to (i) Exhibit 10.(c) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1985, (ii) Exhibit 10.2(b) to Registrant’s Registration Statement on Form S-1 (No. 33-15171), (iii) Exhibit 10.2(c) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1987, (iv) Exhibit 10.2(d) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1988, (v) Exhibit 28.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1990, (vi) Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1991, (vii) Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1993, (viii) Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993, (ix) Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1995, (x) Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1995, (xi) Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1996, (xii) Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1997, (xiii) Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998, (xiv) Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1999, (xv) Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2004, (xvi) Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008, and (xvii) Exhibit 10.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |
*10.3 | Amended and Restated Retirement Agreement between Registrant and Harold M. Messmer Jr., incorporated by reference to Exhibit 99.2 to the Registrant’s Current Report on Form 8-K dated December 7, 2006. | |
*10.4 | Amended and Restated Deferred Compensation Plan, incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008. | |
*10.5 | Amended and Restated Severance Agreement dated as of February 9, 2011, between Registrant and Paul F. Gentzkow, incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |
*10.6 | Agreement dated as of July 31, 1995, between Registrant and Paul F. Gentzkow, incorporated by reference to Exhibit 10.6 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2000. | |
*10.7 | Form of Amended and Restated Severance Agreement, incorporated by reference to Exhibit 10.10 to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |
*10.8 | Form of Indemnification Agreement for Directors of the Registrant, incorporated by reference to (i) Exhibit 10.27 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1989 and (ii) Exhibit 10.19 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993. | |
Exhibit No. | Exhibit | |
*10.9 | Form of Indemnification Agreement for Executive Officers of Registrant, incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2000. | |
*10.10 | Senior Executive Retirement Plan, incorporated by reference to Exhibit 10.13 to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. | |
*10.11 | Collateral Assignment of Split Dollar Insurance Agreement, incorporated by reference to (i) Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2000, and (ii) Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003. | |
*10.12 | Form of Part-Time Employment Agreement, as amended and restated, incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014. | |
*10.13 | Annual Performance Bonus Plan, as amended and restated, incorporated by reference to Exhibit 99.1 to Registrant’s Current Report on Form 8-K dated May 23, 2013. | |
*10.14 | Summary of Outside Director Cash Remuneration, incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2010. | |
*10.15 | Stock Incentive Plan, as amended and restated, incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014. | |
*10.16 | Stock Incentive Plan—Form of Restricted Share Agreement for Executive Officers effective April 15, 2013, incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013. | |
*10.17 | Stock Incentive Plan—Form of Restricted Share Agreement for Executive Officers effective through April 14, 2013, incorporated by reference to Exhibit 99.3 to Registrant’s Current Report on Form 8-K dated May 3, 2005. | |
*10.18 | Amendment to Restricted Share Agreement dated as of May 9, 2012, between Registrant and Harold M. Messmer, Jr., incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012. | |
*10.19 | Form of Amendment to Restricted Share Agreement dated as of May 9, 2012, incorporated by reference to Exhibit 10.2 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012. | |
*10.20 | Form of Amendment to Restricted Share Agreement dated as of November 8, 2012, incorporated by reference to Exhibit 10.27 to Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |
*10.21 | Stock Incentive Plan—Form of Stock Option Agreement for Executive Officers, incorporated by reference to Exhibit 99.4 to Registrant’s Current Report on Form 8-K dated May 3, 2005. | |
*10.22 | Stock Incentive Plan—Form of Restricted Share Agreement for Outside Directors, incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006. | |
*10.23 | Stock Incentive Plan—Form of Stock Option Agreement for Outside Directors, incorporated by reference to Exhibit 99.6 to Registrant’s Current Report on Form 8-K dated May 3, 2005. | |
21.1 | Subsidiaries of the Registrant. | |
23.1 | Independent Registered Public Accounting Firm’s Consent. | |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer. | |
Exhibit No. | Exhibit | |
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer. | |
32.1 | Rule 1350 Certification of Chief Executive Officer. | |
32.2 | Rule 1350 Certification of Chief Financial Officer. | |
101.1 | Part II, Item 8 of this Form 10-K formatted in XBRL. |
ROBERT HALF INTERNATIONAL INC. (Registrant) | |||
Date: February 13, 2017 | By: | /s/ M. KEITH WADDELL | |
M. Keith Waddell Vice Chairman, President and Chief Financial Officer (Principal Financial Officer) |
Date: February 13, 2017 | By: | /s/ HAROLD M. MESSMER, JR. | |
Harold M. Messmer, Jr. Chairman of the Board, Chief Executive Officer, and a Director (Principal Executive Officer) | |||
Date: February 13, 2017 | By: | /s/ ANDREW S. BERWICK, JR. | |
Andrew S. Berwick, Jr., Director | |||
Date: February 13, 2017 | By: | /s/ MARC H. MORIAL | |
Marc H. Morial, Director | |||
Date: February 13, 2017 | By: | /s/ BARBARA J. NOVOGRADAC | |
Barbara J. Novogradac, Director | |||
Date: February 13, 2017 | By: | /s/ ROBERT J. PACE | |
Robert J. Pace, Director | |||
Date: February 13, 2017 | By: | /s/ FREDERICK A. RICHMAN | |
Frederick A. Richman, Director | |||
Date: February 13, 2017 | By: | /s/ M. KEITH WADDELL | |
M. Keith Waddell Vice Chairman, President, Chief Financial Officer and a Director (Principal Financial Officer) | |||
Date: February 13, 2017 | By: | /s/ MICHAEL C. BUCKLEY | |
Michael C. Buckley Executive Vice President and Treasurer (Principal Accounting Officer) |
Balance at Beginning of Period | Charged to Expenses | Deductions | Translation Adjustments | Balance at End of Period | |||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 27,261 | 9,825 | (3,670 | ) | (2,872 | ) | $ | 30,544 | ||||||||
Deferred tax valuation allowance | $ | 37,044 | 1,742 | (6,056 | ) | (3,169 | ) | $ | 29,561 | ||||||||
Year Ended December 31, 2015 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 30,544 | 12,005 | (5,353 | ) | (2,109 | ) | $ | 35,087 | ||||||||
Deferred tax valuation allowance | $ | 29,561 | 6,283 | (8,068 | ) | (1,447 | ) | $ | 26,329 | ||||||||
Year Ended December 31, 2016 | |||||||||||||||||
Allowance for doubtful accounts receivable | $ | 35,087 | 9,192 | (9,907 | ) | (1,239 | ) | $ | 33,133 | ||||||||
Deferred tax valuation allowance | $ | 26,329 | 2,160 | (9,517 | ) | (65 | ) | $ | 18,907 |
Name of Subsidiary | Jurisdiction of Incorporation | |
RH Holding Company, Inc. | California | |
Robert Half of California, Inc. | California | |
Robert Half Staffing, LLC | California | |
Robert Half Temporaries, Inc. | California | |
Jersey Temporaries, Inc. | Delaware | |
Protiviti Inc. | Delaware | |
Protiviti Holdings Inc. | Delaware | |
RH-TM Resources, Inc. | Delaware | |
Protiviti Government Services, Inc. | Maryland | |
Robert Half Corporation | Nevada | |
Robert Half Nevada Staff, Inc. | Nevada | |
Robert Half of Pennsylvania, Inc. | Pennsylvania | |
Protiviti Pty. Limited | Australia | |
Robert Half Australia Pty. Limited | Australia | |
Robert Half Austria GmbH | Austria | |
Robert Half BVBA | Belgium | |
Robert Half Trabalho Temporário Ltda. | Brazil | |
Protiviti EOOD | Bulgaria | |
Robert Half Canada Inc. | Canada | |
Robert Half Internacional Empresa De Servicios Transitorios Limitada | Chile | |
Protiviti Shanghai Co. Ltd. | China | |
Robert Half Human Resources Shanghai Company Limited | China | |
Robert Half Hong Kong Limited | China, Hong Kong SAR | |
Protiviti Hong Kong Co. Limited | China, Hong Kong SAR | |
Protiviti SAS | France | |
Name of Subsidiary | Jurisdiction of Incorporation | |
Robert Half International France SAS | France | |
Robert Half SAS | France | |
Protiviti GmbH | Germany | |
Robert Half Deutschland Beteiligungsgesellschaft mbH | Germany | |
Robert Half Deutschland GmbH & Co. KG | Germany | |
Protiviti Consulting Private Limited | India | |
Protiviti S.r.l. | Italy | |
Robert Half S.r.l. | Italy | |
Protiviti LLC | Japan | |
Robert Half Japan Ltd. | Japan | |
Robert Half Sarl | Luxembourg | |
Robert Half Holding Sarl | Luxembourg | |
Protiviti B.V. | Netherlands | |
Robert Half International B.V. | Netherlands | |
Robert Half Nederland B.V. | Netherlands | |
Robert Half New Zealand Limited | New Zealand | |
Protiviti Pte. Ltd. | Singapore | |
Robert Half International Pte. Ltd. | Singapore | |
Robert Half GmbH | Switzerland | |
Robert Half International (Dubai) Ltd. | United Arab Emirates | |
Protiviti Limited | United Kingdom | |
Robert Half Holdings Limited | United Kingdom | |
Robert Half Limited | United Kingdom |
1. | I have reviewed this report on Form 10-K of Robert Half International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ HAROLD M. MESSMER, JR. | ||
Harold M. Messmer, Jr. Chairman and Chief Executive Officer |
1. | I have reviewed this report on Form 10-K of Robert Half International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ M. KEITH WADDELL | ||
M. Keith Waddell Vice Chairman, President and Chief Financial Officer |
February 13, 2017 | /s/ Harold M. Messmer, Jr. | |
Harold M. Messmer, Jr. Chief Executive Officer Robert Half International Inc. |
February 13, 2017 | /s/ M. Keith Waddell | |
M. Keith Waddell Chief Financial Officer Robert Half International Inc. |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 31, 2017 |
Jun. 30, 2016 |
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Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RHI | ||
Entity Registrant Name | HALF ROBERT INTERNATIONAL INC /DE/ | ||
Entity Central Index Key | 0000315213 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 127,796,557 | ||
Entity Public Float | $ 4,826,031,702 |
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 33,133 | $ 35,087 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, issued (in shares) | 127,796,558 | 131,156,064 |
Common stock, outstanding (in shares) | 127,796,558 | 131,156,064 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | |||
Net service revenues | $ 5,250,399 | $ 5,094,933 | $ 4,695,014 |
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses | 3,089,723 | 2,980,462 | 2,772,098 |
Gross margin | 2,160,676 | 2,114,471 | 1,922,916 |
Selling, general and administrative expenses | 1,606,217 | 1,533,799 | 1,425,734 |
Amortization of intangible assets | 1,237 | 192 | 557 |
Interest income, net | (888) | (550) | (724) |
Income before income taxes | 554,110 | 581,030 | 497,349 |
Provision for income taxes | 210,721 | 223,234 | 191,421 |
Net income | $ 343,389 | $ 357,796 | $ 305,928 |
Net income per share: | |||
Basic (usd per share) | $ 2.68 | $ 2.72 | $ 2.28 |
Diluted (usd per share) | $ 2.67 | $ 2.69 | $ 2.26 |
Shares: | |||
Basic (in shares) | 127,991 | 131,749 | 134,358 |
Diluted (in shares) | 128,766 | 132,930 | 135,541 |
Cash dividends declared per share (usd per share) | $ 0.88 | $ 0.8 | $ 0.72 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
COMPREHENSIVE INCOME: | |||
Net income | $ 343,389 | $ 357,796 | $ 305,928 |
Foreign currency translation adjustments, net of tax | (10,208) | (25,024) | (23,341) |
Total comprehensive income | $ 333,181 | $ 332,772 | $ 282,587 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
RETAINED EARNINGS | |||
Cash dividends, per share (usd per share) | $ 0.88 | $ 0.80 | $ 0.72 |
Summary of Significant Accounting Policies |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations. Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps®, Robert Half® Finance & Accounting, OfficeTeam®, Robert Half® Technology, Robert Half® Management Resources, Robert Half® Legal, The Creative Group®, and Protiviti®. The Company, through its Accountemps, Robert Half Finance & Accounting, and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit, and is a wholly owned subsidiary of the Company. Revenues are predominantly derived from specialized staffing services. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation. Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances have been eliminated. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of December 31, 2016, such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Revenue Recognition. The Company derives its revenues from three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Net service revenues as presented on the Consolidated Statements of Operations represent services rendered to customers less sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in net service revenues, and equivalent amounts of reimbursable expenses are included in direct costs of services. The Company records revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties and (iii) bears the risk for services that are not fully paid for by customers. Temporary and consultant staffing revenues—Temporary and consultant staffing revenues are recognized when the services are rendered by the Company’s temporary employees. Employees placed on temporary assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers. Permanent placement staffing revenues—Permanent placement staffing revenues are recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the effect of permanent placement candidates who do not remain with its clients through the 90-day guarantee period. Allowances are established to estimate these losses. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement services are charged to employment candidates. Risk consulting and internal audit revenues—Risk consulting and internal audit services are generally provided on a time-and-material basis or fixed-fee basis. Revenues earned under time-and-material arrangements are recognized as services are provided. Revenues on fixed-fee arrangements are recognized using a proportional performance method as hours are incurred relative to total estimated hours for the engagement. The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred. Costs of Services. Direct costs of temporary and consultant staffing consist of payroll, payroll taxes and benefit costs for the Company’s temporary employees, as well as reimbursable expenses. Direct costs of permanent placement staffing services consist of reimbursable expenses. Risk consulting and internal audit costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs for the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
Comprehensive Income. Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments. Fair Value of Financial Instruments. The Company does not have any financial instruments which require re-measurement to fair value. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses represent fair value based upon their short-term nature. Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. Goodwill and Intangible Assets. Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two to five years. Goodwill is not amortized, but is tested at least annually for impairment. The Company completed its annual goodwill impairment analysis as of June 30 in each of the three years ended December 31, 2016, and determined that no adjustment to the carrying value of goodwill was required. There were no events or changes in circumstances during the six months ended December 31, 2016 that caused the Company to perform an interim impairment assessment. Income Tax Assets and Liabilities. In establishing its deferred income tax assets and liabilities, the Company makes judgments and interpretations based on the enacted tax laws and published tax guidance that are applicable to its operations. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of these assets is dependent on future taxable income, its ability to use foreign tax credit carryforwards and carrybacks, final U.S. and foreign tax settlements, and the effectiveness of its tax planning strategies in the various relevant jurisdictions. The Company also evaluates the need for valuation allowances to reduce the deferred tax assets to realizable amounts. Management evaluates all positive and negative evidence and uses judgment regarding past and future events, including operating results, to help determine when it is more likely than not that all or some portion of the deferred tax assets may not be realized. When appropriate, a valuation allowance is recorded against deferred tax assets to offset future tax benefits that may not be realized. Valuation allowances of $18.9 million and $26.3 million were recorded as of December 31, 2016 and 2015, respectively. The valuation allowances recorded related primarily to net operating losses in certain foreign operations. If such losses are ultimately utilized to offset future operating income, the Company will recognize a tax benefit up to the full amount of the valuation reserve. Workers’ Compensation. Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes ongoing healthcare and indemnity coverage for claims and may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for Incurred But Not Reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period includes estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company's foreign subsidiaries is their local currency. The results of operations of the Company’s foreign subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s foreign subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations, and have not been material for all periods presented. Stock-based Compensation. Under various stock plans, officers, employees and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award, unless the awards are subject to performance conditions, in which case the Company recognizes compensation expense over the requisite service period of each separate vesting tranche. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. No stock appreciation rights have been granted under the Company’s existing stock plans. The Company has not granted any options to purchase common stock since 2006. Property and Equipment. Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the following useful lives:
Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Amounts capitalized are reported as a component of computer software within property and equipment. Internal-use software development costs capitalized for the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
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New Accounting Pronouncements |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the Financial Accounting Standards Board ("FASB") issued authoritative guidance designed to assist customers in their determination of whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance did not change GAAP for a customer’s accounting for service contracts. This guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company's financial statements. Business Combinations. In September 2015, the FASB issued authoritative guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that an acquirer record in the same period’s financial statements the effects of the cumulative impact of adjustments including the impact on prior periods. The prior period impact of the adjustments should be presented separately on the face of the income statement or disclosed in the notes. The new guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company's financial statements. Balance Sheet Classification of Deferred Taxes. During November 2015, the FASB issued authoritative guidance which changes how deferred taxes are classified on a company's balance sheet. The new guidance provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified statement of financial position. The standard is effective for fiscal year beginning after December 15, 2016, including interim periods within that reporting period. The Company early adopted this guidance effective December 31, 2016, retrospectively. The adoption resulted in a $145.7 million decrease in current deferred income taxes, a $113.8 million increase in noncurrent deferred income taxes, and a $31.9 million decrease in other liabilities, in the Company's Consolidated Statement of Financial Position at December 31, 2015. The adoption of this guidance had no impact on the Company's results of operations. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016 an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016 an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Based on our progress to date, the Company does not anticipate any significant changes to systems, processes, or controls, and no one area will be significantly impacted upon adoption. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Stock Compensation. In March 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted for any organization in any interim or annual period. The Company believes the most significant impacts of the new guidance will be: i) the added volatility to the Company’s effective tax rate from the change in accounting for income taxes and ii) on its classification of excess tax benefits on the Consolidated Statements of Cash Flows. The impact of this guidance on future periods is dependent on the Company's stock price at the time the awards vest and the number of awards that vest. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is less than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. |
Other Current Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other Current Assets Other current assets consisted of the following (in thousands):
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The following table sets forth the activity in goodwill from December 31, 2014, through December 31, 2016 (in thousands):
(a) In November 2015 the Company, through its wholly owned subsidiary Protiviti, acquired certain assets of Decision First Technologies, a company specializing in business intelligence solutions. As part of the asset acquisition, the Company recorded goodwill of $11 million within its risk consulting and internal audit services segment. |
Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in thousands):
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Accrued Payroll and Benefit Costs |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Payroll and Benefit Costs | Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands):
Included in employee deferred compensation plans is the following (in thousands):
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Notes Payable and Other Indebtedness |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Notes Payable and Other Indebtedness | Notes Payable and Other Indebtedness The Company issued promissory notes as well as other forms of indebtedness in connection with certain acquisitions and other payment obligations. These are due in varying installments, carry varying interest rates and, in aggregate, amounted to $1.0 million at December 31, 2016, and $1.2 million at December 31, 2015. At December 31, 2016, $1.0 million of the notes were collateralized by a standby letter of credit. The following table shows the schedule of maturities for notes payable and other indebtedness at December 31, 2016 (in thousands):
At December 31, 2016, the notes carried fixed rates and the weighted average interest rate for the above was 9.0% for each of the years ended December 31, 2016, 2015 and 2014. The Company has an uncommitted letter of credit facility (the “facility”) of up to $35.0 million, which is available to cover the issuance of debt support standby letters of credit. The Company had used $15.8 million in debt support standby letters of credit as of December 31, 2016 and $13.5 million as of December 31, 2015. Of the debt support standby letters of credit outstanding, $14.8 million as of December 31, 2016 and $12.3 million as of December 31, 2015, satisfies workers’ compensation insurer’s collateral requirements. There is a service fee of 1.125% on the used portion of the facility. The facility is subject to certain financial covenants and expires on August 31, 2017. The Company intends to renew this facility prior to its August 31, 2017 expiration. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):
Income before the provision for income taxes for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):
The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
The deferred portion of the tax provision (benefit) consisted of the following (in thousands):
The components of the deferred income tax amounts at December 31, 2016 and 2015, were as follows (in thousands):
Credits and net operating loss carryforwards primarily include net operating losses in foreign countries of $24.5 million that expire in 2017 and later; and California enterprise zone tax credits of $3.4 million that expire in 2023. Of the $3.4 million of California enterprise zone tax credits, the Company expects that it will utilize $2.4 million of these credits prior to expiration. Valuation allowances of $17.9 million have been established for net operating losses carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.0 million has been established for California enterprise zone tax credits. The Company has not provided deferred income taxes or foreign withholding taxes on $16.9 million and $5.7 million of undistributed earnings of its non-U.S. subsidiaries as of December 31, 2016 and 2015, respectively, since the Company intends to reinvest these earnings indefinitely. The U.S. tax impact upon repatriation, net of foreign tax credits, would be $2.1 million and zero for the years ended December 31, 2016 and 2015, respectively. FASB authoritative guidance prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The literature also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2014 to December 31, 2016 (in thousands):
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $0.5 million, $0.5 million and $0.9 million for 2016, 2015 and 2014, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2016, is $0.1 million, including a $0.1 million reduction recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2015 is $0.2 million, including a $2.3 million reduction recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2014, was $2.5 million, including a $0.3 million reduction recorded in income tax expense during the year. The Company believes it is reasonably possible that the settlement of certain tax uncertainties could occur within the next twelve months; accordingly, $0.3 million of the unrecognized gross tax benefit has been classified as a current liability as of December 31, 2016. This amount primarily represents unrecognized tax benefits composed of items related to assessed state income tax audits and negotiations. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2013 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2012 and subsequent years. Generally, for the foreign countries, the Company remains subject to examination for 2009 and subsequent years. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Rental expense, primarily for office premises, amounted to $87.3 million, $85.9 million and $89.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. The approximate minimum rental commitments for 2017 and thereafter under non-cancelable leases in effect at December 31, 2016 were as follows (in thousands):
On April 23, 2010, Plaintiffs David Opalinski and James McCabe, on behalf of themselves and a putative class of similarly situated Staffing Managers, filed a Complaint in the United States District Court for the District of New Jersey naming the Company and one of its subsidiaries as Defendants. The Complaint alleges that salaried Staffing Managers located throughout the U.S. have been misclassified as exempt from the Fair Labor Standards Act’s overtime pay requirements. Plaintiffs seek an unspecified amount for unpaid overtime on behalf of themselves and the class they purport to represent. Plaintiffs also seek an unspecified amount for statutory penalties, attorneys’ fees and other damages. On October 6, 2011, the Court granted the Company’s motion to compel arbitration of the Plaintiffs’ allegations. At this stage, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from these allegations and, accordingly, no amounts have been provided in the Company’s financial statements. The Company believes it has meritorious defenses to the allegations, and the Company intends to continue to vigorously defend against the allegations. On March 13, 2014, Plaintiff Leonor Rodriguez, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Diego County. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2011 were denied compensation for the time they spent interviewing with clients of the Company as well as performing activities related to the interview process. Rodriguez seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Rodriguez also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Rodriguez also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney General Act (“PAGA”). On October 10, 2014, the Court granted a motion by the Company to compel all of Rodriguez’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint, which was filed by the same plaintiffs’ law firm that brought the Rodriguez matter described above, alleges claims similar to those alleged in Rodriguez. Specifically, the complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010 were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
Stockholders' Equity |
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Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program. As of December 31, 2016, the Company is authorized to repurchase, from time to time, up to 6.4 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of exercise price and applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Treasury stock activity for each of the three years ended December 31, 2016, 2015 and 2014 (consisting of stock option exercises and the purchase of shares for the treasury) is presented in the Consolidated Statements of Stockholders’ Equity. Cash Dividends. The Company’s Board of Directors may at their discretion declare and pay dividends upon the shares of the Company’s stock either out of the Company’s retained earnings or capital surplus. The cash dividends declared during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table:
Repurchases of shares and issuances of cash dividends are applied first to the extent of retained earnings and any remaining amounts are applied to capital surplus. |
Stock Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Plans | Stock Plans Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. Grants have been made at the discretion of the Committees of the Board of Directors. Grants generally vest either on a straight-line basis over four years or on a cliff basis over three years. Shares offered under the plan are authorized but unissued shares or treasury shares. Recipients of restricted stock do not pay any cash consideration to the Company for the shares, have the right to vote all shares subject to such grant, and for the years of 2016, 2015 and 2014, there were no grants outstanding that received dividends prior to vesting. Restricted stock grants made on or after July 28, 2009, contain forfeitable rights to dividends. Dividends for these grants are accrued on the dividend payment dates but are not paid until the shares vest, and dividends accrued for shares that ultimately do not vest are forfeited. Recipients of stock units do not pay any cash consideration for the units, do not have the right to vote, and do not receive dividends with respect to such units. FASB authoritative guidance requires that excess tax benefits be recognized as an addition to capital surplus and that unrealized tax benefits be recognized as income tax expense unless there are excess tax benefits from previous equity awards to which it can be offset. The Company calculates the amount of eligible excess tax benefits that are available to offset future tax shortfalls in accordance with the long-form method described in the FASB authoritative guidance. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award, unless the awards are subject to performance conditions, in which case the Company recognizes compensation expense over the requisite service period of each separate vesting tranche. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. During the year ended December 31, 2016, the Company granted performance shares to its executives in the form of restricted stock. The shares granted contain (1) a performance condition based on target net income per share, and (2) a market condition based on Total Shareholder Return (“TSR”). The TSR market condition measures the Company’s performance against a peer group. Shares will be delivered at the end of the three year vesting and TSR performance period based on the Company’s actual performance compared to the peer group. Actual shares earned will range from fifty percent (50%) to one hundred fifty percent (150%) of the target award after any adjustment made for the performance condition. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: an historical volatility of 22.82%, 0% dividend yield and a risk-free interest rate of 0.99%. The historical volatility was based on the most recent 2.77-year period for the Company and the components of the peer group. The stock price projection for the Company and the components of the peer group assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest rate is equal to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance measurement period. Stock-based compensation expense consisted of the following (in thousands):
Unrecognized compensation cost is expected to be recognized over the next four years. Total unrecognized compensation cost, net of estimated forfeitures, consisted of the following (in thousands):
The following table reflects activity under all stock plans from December 31, 2013 through December 31, 2016, and the weighted average exercise prices (in thousands, except per share amounts):
The total pre-tax intrinsic value of stock options exercised and the total fair value of shares vested during the years ended December 31, 2016, 2014 and 2013, are reflected in the following table (in thousands):
At December 31, 2016, the total number of available shares to grant under the plans (consisting of either restricted stock, stock units, stock appreciation rights or options to purchase common stock) was approximately 4.7 million. |
Net Income Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The calculation of net income per share for the three years ended December 31, 2016 is reflected in the following table (in thousands, except per share amounts):
Potential common shares include the dilutive effect of stock options, unvested performance-based restricted stock, restricted stock which contains forfeitable rights to dividends, and stock units. Employee stock options will have a dilutive effect under the treasury method only when the respective period’s average market value of the Company’s common stock exceeds the exercise proceeds. Under the treasury method, exercise proceeds include the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in capital surplus, if the options were exercised and the stock units and performance-based restricted stock had vested. |
Business Segments |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company, which aggregates its operating segments based on the nature of services, has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting segment provides business and technology risk consulting and internal audit services. The accounting policies of the segments are set forth in Note A—Summary of Significant Accounting Policies. The Company evaluates performance based on income from operations before net interest income, intangible amortization expense, and income taxes. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results (in thousands):
The Company does not report total assets by segment. The following tables represent identifiable assets by business segment (in thousands):
The Company operates internationally, with operations in North America, South America, Europe, Asia and Australia. The following tables represent revenues and long-lived assets by geographic location (in thousands):
(a) There were no customers that accounted for more than 10% of the Company's total net revenue in any year presented. (b) No individual country represented more than 10% of revenues in any year presented. |
Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tabulation shows certain quarterly financial data for 2016 and 2015 (in thousands, except per share amounts):
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Subsequent Events |
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Subsequent Events [Abstract] | |||||||||||||
Subsequent Events | Subsequent Events On February 8, 2017 the Company announced the following:
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Schedule II-Valuation and Qualifying Accounts |
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Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands)
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). |
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Principles of Consolidation | Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances have been eliminated. |
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Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of December 31, 2016, such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. |
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Revenue Recognition | Revenue Recognition. The Company derives its revenues from three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Net service revenues as presented on the Consolidated Statements of Operations represent services rendered to customers less sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in net service revenues, and equivalent amounts of reimbursable expenses are included in direct costs of services. The Company records revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties and (iii) bears the risk for services that are not fully paid for by customers. Temporary and consultant staffing revenues—Temporary and consultant staffing revenues are recognized when the services are rendered by the Company’s temporary employees. Employees placed on temporary assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers. Permanent placement staffing revenues—Permanent placement staffing revenues are recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the effect of permanent placement candidates who do not remain with its clients through the 90-day guarantee period. Allowances are established to estimate these losses. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement services are charged to employment candidates. Risk consulting and internal audit revenues—Risk consulting and internal audit services are generally provided on a time-and-material basis or fixed-fee basis. Revenues earned under time-and-material arrangements are recognized as services are provided. Revenues on fixed-fee arrangements are recognized using a proportional performance method as hours are incurred relative to total estimated hours for the engagement. The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred. |
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Costs of Services | Costs of Services. Direct costs of temporary and consultant staffing consist of payroll, payroll taxes and benefit costs for the Company’s temporary employees, as well as reimbursable expenses. Direct costs of permanent placement staffing services consist of reimbursable expenses. Risk consulting and internal audit costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. |
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Advertising Costs | Advertising Costs. The Company expenses all advertising costs as incurred. |
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Comprehensive Income | Comprehensive Income. Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments. The Company does not have any financial instruments which require re-measurement to fair value. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses represent fair value based upon their short-term nature. |
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Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two to five years. Goodwill is not amortized, but is tested at least annually for impairment. The Company completed its annual goodwill impairment analysis as of June 30 in each of the three years ended December 31, 2016, and determined that no adjustment to the carrying value of goodwill was required. There were no events or changes in circumstances during the six months ended December 31, 2016 that caused the Company to perform an interim impairment assessment. |
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Income Tax Assets and Liabilities | Income Tax Assets and Liabilities. In establishing its deferred income tax assets and liabilities, the Company makes judgments and interpretations based on the enacted tax laws and published tax guidance that are applicable to its operations. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of these assets is dependent on future taxable income, its ability to use foreign tax credit carryforwards and carrybacks, final U.S. and foreign tax settlements, and the effectiveness of its tax planning strategies in the various relevant jurisdictions. The Company also evaluates the need for valuation allowances to reduce the deferred tax assets to realizable amounts. Management evaluates all positive and negative evidence and uses judgment regarding past and future events, including operating results, to help determine when it is more likely than not that all or some portion of the deferred tax assets may not be realized. When appropriate, a valuation allowance is recorded against deferred tax assets to offset future tax benefits that may not be realized. Valuation allowances of $18.9 million and $26.3 million were recorded as of December 31, 2016 and 2015, respectively. The valuation allowances recorded related primarily to net operating losses in certain foreign operations. If such losses are ultimately utilized to offset future operating income, the Company will recognize a tax benefit up to the full amount of the valuation reserve. |
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Workers' Compensation | Workers’ Compensation. Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes ongoing healthcare and indemnity coverage for claims and may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for Incurred But Not Reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period includes estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. |
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Foreign Currency Translation | Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company's foreign subsidiaries is their local currency. The results of operations of the Company’s foreign subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s foreign subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations, and have not been material for all periods presented. |
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Stock-based Compensation | Stock-based Compensation. Under various stock plans, officers, employees and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award, unless the awards are subject to performance conditions, in which case the Company recognizes compensation expense over the requisite service period of each separate vesting tranche. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. |
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Property and Equipment | Property and Equipment. Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the following useful lives:
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Internal-use Software | Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Amounts capitalized are reported as a component of computer software within property and equipment. |
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New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the Financial Accounting Standards Board ("FASB") issued authoritative guidance designed to assist customers in their determination of whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance did not change GAAP for a customer’s accounting for service contracts. This guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company's financial statements. Business Combinations. In September 2015, the FASB issued authoritative guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that an acquirer record in the same period’s financial statements the effects of the cumulative impact of adjustments including the impact on prior periods. The prior period impact of the adjustments should be presented separately on the face of the income statement or disclosed in the notes. The new guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company's financial statements. Balance Sheet Classification of Deferred Taxes. During November 2015, the FASB issued authoritative guidance which changes how deferred taxes are classified on a company's balance sheet. The new guidance provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified statement of financial position. The standard is effective for fiscal year beginning after December 15, 2016, including interim periods within that reporting period. The Company early adopted this guidance effective December 31, 2016, retrospectively. The adoption resulted in a $145.7 million decrease in current deferred income taxes, a $113.8 million increase in noncurrent deferred income taxes, and a $31.9 million decrease in other liabilities, in the Company's Consolidated Statement of Financial Position at December 31, 2015. The adoption of this guidance had no impact on the Company's results of operations. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016 an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016 an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Based on our progress to date, the Company does not anticipate any significant changes to systems, processes, or controls, and no one area will be significantly impacted upon adoption. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Stock Compensation. In March 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted for any organization in any interim or annual period. The Company believes the most significant impacts of the new guidance will be: i) the added volatility to the Company’s effective tax rate from the change in accounting for income taxes and ii) on its classification of excess tax benefits on the Consolidated Statements of Cash Flows. The impact of this guidance on future periods is dependent on the Company's stock price at the time the awards vest and the number of awards that vest. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is less than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. |
Summary of Significant Accounting Policies (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising Costs | Advertising costs for the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
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Depreciation Expense Computed Using Straight-Line Method over Useful Lives | Depreciation expense is computed using the straight-line method over the following useful lives:
Property and equipment consisted of the following (in thousands):
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Internal-Use Software Development Costs Capitalized | Internal-use software development costs capitalized for the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
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Other Current Assets (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other current assets consisted of the following (in thousands):
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Goodwill | The following table sets forth the activity in goodwill from December 31, 2014, through December 31, 2016 (in thousands):
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Property and Equipment, Net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property and Equipment | Depreciation expense is computed using the straight-line method over the following useful lives:
Property and equipment consisted of the following (in thousands):
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Accrued Payroll and Benefit Costs (Tables) |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Payroll and Benefit Costs | Accrued payroll and benefit costs consisted of the following (in thousands):
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Employee Deferred Compensation Plans | Included in employee deferred compensation plans is the following (in thousands):
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Notes Payable and Other Indebtedness (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Maturities for Notes Payable and Other Indebtedness | The following table shows the schedule of maturities for notes payable and other indebtedness at December 31, 2016 (in thousands):
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):
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Income Before Provision for Income Taxes | Income before the provision for income taxes for the years ended December 31, 2016, 2015 and 2014, consisted of the following (in thousands):
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Difference of Income Taxes from Statutory Federal Income Tax Rates | The income taxes shown above varied from the statutory federal income tax rates for these periods as follows:
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Deferred Portion of Tax Provision (Benefit) | The deferred portion of the tax provision (benefit) consisted of the following (in thousands):
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Components of Deferred Income Tax Amounts | The components of the deferred income tax amounts at December 31, 2016 and 2015, were as follows (in thousands):
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Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2014 to December 31, 2016 (in thousands):
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Minimum Rental Commitments Under Non-Cancelable Leases | The approximate minimum rental commitments for 2017 and thereafter under non-cancelable leases in effect at December 31, 2016 were as follows (in thousands):
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Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number and Cost of Common Stock Shares Repurchased | The number and the cost of common stock shares repurchased during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
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Number and Cost of Employee Stock Plan Repurchases | The number and the cost of employee stock plan repurchases made during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table (in thousands):
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Cash Dividends Declared | The cash dividends declared during the years ended December 31, 2016, 2015 and 2014, are reflected in the following table:
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Stock Plans (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | Stock-based compensation expense consisted of the following (in thousands):
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Total Unrecognized Compensation Cost, Net of Estimated Forfeitures | Total unrecognized compensation cost, net of estimated forfeitures, consisted of the following (in thousands):
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Activity Under All Stock Plans and Weighted Average Exercise Prices | The following table reflects activity under all stock plans from December 31, 2013 through December 31, 2016, and the weighted average exercise prices (in thousands, except per share amounts):
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Pre-Tax Intrinsic Value of Stock Option Exercised | The total pre-tax intrinsic value of stock options exercised and the total fair value of shares vested during the years ended December 31, 2016, 2014 and 2013, are reflected in the following table (in thousands):
|
Net Income Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Net Income Per Share | The calculation of net income per share for the three years ended December 31, 2016 is reflected in the following table (in thousands, except per share amounts):
|
Business Segments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results | The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results (in thousands):
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Identifiable Assets by Business Segment | The following tables represent identifiable assets by business segment (in thousands):
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Revenue and Long-Lived Assets by Geographic Location | The following tables represent revenues and long-lived assets by geographic location (in thousands):
(a) There were no customers that accounted for more than 10% of the Company's total net revenue in any year presented. (b) No individual country represented more than 10% of revenues in any year presented. |
Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | The following tabulation shows certain quarterly financial data for 2016 and 2015 (in thousands, except per share amounts):
|
Subsequent Events (Tables) |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||
Subsequent Events [Abstract] | |||||||||||||
Subsequent Events | On February 8, 2017 the Company announced the following:
|
Summary of Significant Accounting Policies - Additional Information (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
segment
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Accounting Policies [Abstract] | |||
Advertising Costs | $ 47,312,000 | $ 44,015,000 | $ 42,335,000 |
Goodwill [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Valuation allowance | $ 18,907,000 | $ 26,329,000 | |
Provision for workers' compensation claims threshold | $ 500,000.0 | ||
Minimum | |||
Goodwill [Line Items] | |||
Amortized life assigned to identifiable intangible assets (in years) | 2 years | ||
Maximum | |||
Goodwill [Line Items] | |||
Amortized life assigned to identifiable intangible assets (in years) | 5 years |
Summary of Significant Accounting Policies - Property Plant and Equipment (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Computer Hardware | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer Hardware | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Summary of Significant Accounting Policies - Internal Use Software (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Internal-use software development costs | $ 33,753 | $ 31,964 | $ 24,367 |
New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in noncurrent deferred income taxes | $ (118,764) | $ (117,054) |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2015-17 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in current deferred income taxes | 145,700 | |
Increase in noncurrent deferred income taxes | (113,800) | |
Decrease in other liabilities | $ 31,900 |
Other Current Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits in trusts for employee deferred compensation plans | $ 236,371 | $ 198,256 |
Other | 84,434 | 70,524 |
Other current assets | $ 320,805 | $ 268,780 |
Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Property, Plant and Equipment [Abstract] | |||
Computer hardware | $ 170,746 | $ 162,346 | |
Computer software | 374,490 | 339,634 | |
Furniture and equipment | 100,472 | 96,536 | |
Leasehold improvements | 133,541 | 118,491 | |
Other | 9,993 | 9,560 | |
Property and equipment, cost | 789,242 | 726,567 | |
Accumulated depreciation | (627,733) | (583,661) | |
Property and equipment, net | $ 161,509 | $ 142,906 | $ 121,754 |
Accrued Payroll and Benefit Costs (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Payroll and benefits | $ 243,301 | $ 240,793 |
Employee deferred compensation plans | 252,349 | 212,220 |
Workers’ compensation | 19,361 | 25,834 |
Payroll taxes | 24,037 | 25,935 |
Accrued payroll and benefit costs | 539,048 | 504,782 |
Chief Executive Officer | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer | $ 83,899 | $ 81,874 |
Notes Payable and Other Indebtedness - Additional Information (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||
Promissory notes and other forms of indebtedness, issued | $ 1,000,000 | $ 1,200,000 |
Weighted average interest rate | 9.00% | 9.00% |
Uncommitted letter of credit facility | $ 35,000,000 | |
Debt support standby letters of credit | $ 15,800,000 | $ 13,500,000 |
Service fee percentage | 1.125% | |
Line of credit facility, expiry date | Aug. 31, 2017 | |
Standby letter of credit | ||
Debt Instrument [Line Items] | ||
Promissory notes and other forms of indebtedness collateralized | $ 1,000,000 | |
Standby letters of credit used for collateral requirements | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 14,800,000 | $ 12,300,000 |
Notes Payable and Other Indebtedness - Schedule of Maturities for Notes Payable and Other Indebtedness (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 | $ 167 |
2018 | 183 |
2019 | 200 |
2020 | 218 |
2021 | 239 |
Notes payable and other indebtedness | $ 1,007 |
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current: | |||
Federal | $ 156,937 | $ 181,640 | $ 146,633 |
State | 34,927 | 36,281 | 33,054 |
Foreign | 20,725 | 13,892 | 15,377 |
Deferred: | |||
Federal and state | (3,785) | (8,398) | (4,626) |
Foreign | 1,917 | (181) | 983 |
Provision (benefit) for income taxes | $ 210,721 | $ 223,234 | $ 191,421 |
Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 494,890 | $ 528,916 | $ 446,886 | ||||||||
Foreign | 59,220 | 52,114 | 50,463 | ||||||||
Income before income taxes | $ 124,581 | $ 146,324 | $ 149,414 | $ 133,791 | $ 144,315 | $ 159,306 | $ 149,235 | $ 128,174 | $ 554,110 | $ 581,030 | $ 497,349 |
Income Taxes - Difference of Income Taxes from Statutory Federal Income Tax Rates (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Federal U.S. income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 4.20% | 4.20% | 4.20% |
Non-deductible expenses | 0.50% | 0.50% | 0.60% |
Non-U.S. income taxed at different rates, net of foreign tax credits | 0.60% | (0.10%) | 0.20% |
Federal tax credits | (0.80%) | (0.60%) | (0.60%) |
Tax impact of uncertain tax positions | 0.00% | (0.20%) | (0.10%) |
Valuation allowance release, net | (0.10%) | (0.50%) | (0.30%) |
Other, net | (0.20%) | (0.10%) | (0.10%) |
Effective tax rate | 38.00% | 38.40% | 38.50% |
Income Taxes - Deferred Portion of Tax Provision (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Amortization of franchise rights | $ 500 | $ 514 | $ 514 |
Amortization of other intangibles | 1,221 | 1,590 | 1,241 |
Accrued expenses, deducted for tax when paid | (6,889) | (17,664) | (14,221) |
Capitalized costs for books, deducted for tax | 5,901 | 5,315 | 8,809 |
Depreciation | (2,405) | (5,932) | (4,147) |
Federal impact of unrecognized tax benefits | 75 | 1,058 | 44 |
Foreign tax credit carryforwards | 0 | 3,636 | (186) |
Other, net | (271) | 2,904 | 4,303 |
Deferred Portion Of Tax Expense Benefit, Total | $ (1,868) | $ (8,579) | $ (3,643) |
Income Taxes - Components of Deferred Income Tax Amounts (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred Income Tax Assets | ||
Provision for bad debts | $ 10,510 | $ 11,092 |
Deferred compensation and other benefit obligations | 112,811 | 96,948 |
Workers’ compensation | 5,634 | 8,206 |
Stock-based compensation | 16,772 | 15,814 |
Credits and net operating loss carryforwards | 30,534 | 35,499 |
Other | 18,116 | 23,885 |
Total deferred income tax assets | 194,377 | 191,444 |
Deferred Income Tax Liabilities | ||
Amortization of intangible assets | (28,681) | (26,960) |
Property and equipment basis differences | (16,640) | (11,890) |
Other | (11,658) | (9,720) |
Total deferred income tax liabilities | (56,979) | (48,570) |
Valuation allowance | (18,907) | (26,329) |
Total deferred income tax assets, net | $ 118,491 | $ 116,545 |
Income Taxes - Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 814 | $ 4,573 | $ 6,110 |
Gross increases—tax positions in prior years | 92 | 0 | 1 |
Gross decreases—tax positions in prior years | 0 | (1,807) | (333) |
Gross increases—tax positions in current year | 114 | 120 | 35 |
Settlements | 0 | (520) | 0 |
Lapse of statute of limitations | (289) | (1,552) | (1,240) |
Balance at end of period | $ 731 | $ 814 | $ 4,573 |
Commitments and Contingencies - Additional Information (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Apr. 23, 2010
subsidiary
|
|
Loss Contingencies [Line Items] | ||||
Rental expense | $ 87,300,000 | $ 85,900,000 | $ 89,900,000 | |
Staffing Managers Case | ||||
Loss Contingencies [Line Items] | ||||
Number of subsidiaries | subsidiary | 1 | |||
Allegations loss | 0 | |||
Rodriguez Case | ||||
Loss Contingencies [Line Items] | ||||
Allegations loss | 0 | |||
Gentry Case | ||||
Loss Contingencies [Line Items] | ||||
Allegations loss | $ 0 |
Commitments and Contingencies - Minimum Rental Commitments Under Non-Cancelable Leases (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2017 | $ 85,143 |
2018 | 70,863 |
2019 | 55,691 |
2020 | 47,642 |
2021 | 33,662 |
Thereafter | 66,939 |
Operating Leases, Future Minimum Payments Due, Total | $ 359,940 |
Stockholders' Equity - Additional Information (Details) |
Dec. 31, 2016
shares
|
---|---|
Equity [Abstract] | |
Maximum number of shares authorized to be repurchased | 6,400,000.0 |
Stockholders' Equity - Number of Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Common stock repurchased (in shares) | 4,046 | 4,343 | 3,336 |
Common stock repurchased | $ 163,614 | $ 228,166 | $ 161,587 |
Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Repurchases related to employee stock plans (in shares) | 359 | 474 | 462 |
Repurchases related to employee stock plans | $ 15,170 | $ 24,755 | $ 22,386 |
Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Cash dividends declared per share (in USD per share) | $ 0.88 | $ 0.8 | $ 0.72 |
Stock Plans - Stock-Based Compensation Expense (Details) - Restricted stock and stock units - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 42,699 | $ 41,292 | $ 40,821 |
Total unrecognized compensation cost, net of estimated forfeitures | $ 60,481 | $ 60,627 | $ 54,968 |
Stock Plans - Total Pre-Tax Intrinsic Value of Stock Options Exercised and Total Fair Value of Shares Vested (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total pre-tax intrinsic value of stock options exercised | $ 52 | $ 1,709 | $ 9,150 |
Total fair value of shares vested | $ 39,302 | $ 56,570 | $ 38,566 |
Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Basic net income per share: | |||||||||||
Net income | $ 77,788 | $ 90,569 | $ 91,616 | $ 83,416 | $ 93,443 | $ 96,725 | $ 89,706 | $ 77,922 | $ 343,389 | $ 357,796 | $ 305,928 |
Basic weighted average shares (in shares) | 127,991 | 131,749 | 134,358 | ||||||||
Basic net income per share (in USD per share) | $ 0.61 | $ 0.71 | $ 0.71 | $ 0.65 | $ 0.71 | $ 0.74 | $ 0.68 | $ 0.59 | $ 2.68 | $ 2.72 | $ 2.28 |
Diluted: | |||||||||||
Net income | $ 77,788 | $ 90,569 | $ 91,616 | $ 83,416 | $ 93,443 | $ 96,725 | $ 89,706 | $ 77,922 | $ 343,389 | $ 357,796 | $ 305,928 |
Basic weighted average shares (in shares) | 127,991 | 131,749 | 134,358 | ||||||||
Dilutive effect of potential common shares (in shares) | 775 | 1,181 | 1,183 | ||||||||
Diluted weighted average shares (in shares) | 128,766 | 132,930 | 135,541 | ||||||||
Diluted net income per share (in USD per share) | $ 0.61 | $ 0.71 | $ 0.71 | $ 0.64 | $ 0.71 | $ 0.73 | $ 0.67 | $ 0.58 | $ 2.67 | $ 2.69 | $ 2.26 |
Business Segments - Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | $ 1,265,073 | $ 1,338,541 | $ 1,344,160 | $ 1,302,625 | $ 1,304,594 | $ 1,312,718 | $ 1,272,058 | $ 1,205,563 | $ 5,250,399 | $ 5,094,933 | $ 4,695,014 |
Amortization of intangible assets | 1,237 | 192 | 557 | ||||||||
Interest income, net | (888) | (550) | (724) | ||||||||
Income before income taxes | $ 124,581 | $ 146,324 | $ 149,414 | $ 133,791 | $ 144,315 | $ 159,306 | $ 149,235 | $ 128,174 | 554,110 | 581,030 | 497,349 |
Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 5,250,399 | 5,094,933 | 4,695,014 | ||||||||
Operating income | 554,459 | 580,672 | 497,182 | ||||||||
Operating segments | Temporary and consultant staffing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 4,026,777 | 3,930,843 | 3,676,281 | ||||||||
Operating income | 393,704 | 399,808 | 358,533 | ||||||||
Operating segments | Permanent placement staffing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 419,314 | 421,411 | 394,515 | ||||||||
Operating income | 80,001 | 85,019 | 78,333 | ||||||||
Operating segments | Risk consulting and internal audit services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net service revenues | 804,308 | 742,679 | 624,218 | ||||||||
Operating income | 80,754 | 95,845 | 60,316 | ||||||||
Segment reconciling items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Amortization of intangible assets | 1,237 | 192 | 557 | ||||||||
Interest income, net | $ (888) | $ (550) | $ (724) |
Business Segments - Revenue and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net service revenues | $ 1,265,073 | $ 1,338,541 | $ 1,344,160 | $ 1,302,625 | $ 1,304,594 | $ 1,312,718 | $ 1,272,058 | $ 1,205,563 | $ 5,250,399 | $ 5,094,933 | $ 4,695,014 |
Assets, long-lived | 161,509 | 142,906 | 161,509 | 142,906 | 121,754 | ||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net service revenues | 4,220,477 | 4,105,013 | 3,623,812 | ||||||||
Assets, long-lived | 136,434 | 117,176 | 136,434 | 117,176 | 101,181 | ||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net service revenues | 1,029,922 | 989,920 | 1,071,202 | ||||||||
Assets, long-lived | $ 25,075 | $ 25,730 | $ 25,075 | $ 25,730 | $ 20,573 |
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenues | $ 1,265,073 | $ 1,338,541 | $ 1,344,160 | $ 1,302,625 | $ 1,304,594 | $ 1,312,718 | $ 1,272,058 | $ 1,205,563 | $ 5,250,399 | $ 5,094,933 | $ 4,695,014 |
Gross margin | 519,202 | 552,509 | 556,993 | 531,972 | 540,081 | 549,801 | 530,502 | 494,087 | 2,160,676 | 2,114,471 | 1,922,916 |
Income before income taxes | 124,581 | 146,324 | 149,414 | 133,791 | 144,315 | 159,306 | 149,235 | 128,174 | 554,110 | 581,030 | 497,349 |
Net income | $ 77,788 | $ 90,569 | $ 91,616 | $ 83,416 | $ 93,443 | $ 96,725 | $ 89,706 | $ 77,922 | $ 343,389 | $ 357,796 | $ 305,928 |
Basic net income per share (in USD per share) | $ 0.61 | $ 0.71 | $ 0.71 | $ 0.65 | $ 0.71 | $ 0.74 | $ 0.68 | $ 0.59 | $ 2.68 | $ 2.72 | $ 2.28 |
Diluted net income per share (in USD per share) | $ 0.61 | $ 0.71 | $ 0.71 | $ 0.64 | $ 0.71 | $ 0.73 | $ 0.67 | $ 0.58 | $ 2.67 | $ 2.69 | $ 2.26 |
Subsequent Events (Details) - Subsequent Event |
Feb. 08, 2017
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Quarterly dividend per share | $ 0.24 |
Declaration date | Feb. 08, 2017 |
Record date | Feb. 24, 2017 |
Payment date | Mar. 15, 2017 |
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for doubtful accounts receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 35,087 | $ 30,544 | $ 27,261 |
Charged to Expenses | 9,192 | 12,005 | 9,825 |
Deductions | (9,907) | (5,353) | (3,670) |
Translation Adjustments | (1,239) | (2,109) | (2,872) |
Balance at End of Period | 33,133 | 35,087 | 30,544 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 26,329 | 29,561 | 37,044 |
Charged to Expenses | 2,160 | 6,283 | 1,742 |
Deductions | (9,517) | (8,068) | (6,056) |
Translation Adjustments | (65) | (1,447) | (3,169) |
Balance at End of Period | $ 18,907 | $ 26,329 | $ 29,561 |
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