Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 03, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | INSPERITY, INC. | ||
Entity Central Index Key | 1000753 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $749,000,000 | ||
Entity Common Stock, Shares Outstanding | 25,338,512 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $276,456 | $225,755 |
Restricted cash | 44,040 | 51,928 |
Marketable securities | 28,631 | 46,340 |
Accounts receivable, net: | ||
Trade | 12,010 | 7,453 |
Unbilled | 160,154 | 199,628 |
Other | 2,952 | 2,928 |
Prepaid insurance | 21,301 | 10,638 |
Other current assets | 17,649 | 12,053 |
Income taxes receivable | 0 | 409 |
Deferred income taxes | 6,316 | 8,185 |
Total current assets | 569,509 | 565,317 |
Property and equipment: | ||
Land | 5,214 | 4,115 |
Buildings and improvements | 70,471 | 67,939 |
Computer hardware and software | 89,204 | 85,241 |
Software development costs | 41,314 | 38,522 |
Furniture and fixtures | 38,604 | 36,479 |
Aircraft | 35,879 | 35,879 |
Total property and equipment, gross | 280,686 | 268,175 |
Accumulated depreciation and amortization | -196,341 | -181,760 |
Total property and equipment, net | 84,345 | 86,415 |
Other assets: | ||
Prepaid health insurance | 9,000 | 9,000 |
Deposits – health insurance | 3,700 | 3,700 |
Deposits – workers’ compensation | 113,934 | 81,878 |
Goodwill and other intangible assets, net | 14,457 | 18,434 |
Other assets | 1,725 | 1,816 |
Total other assets | 142,816 | 114,828 |
Total assets | 796,670 | 766,560 |
Current liabilities: | ||
Accounts payable | 4,674 | 2,678 |
Payroll taxes and other payroll deductions payable | 176,341 | 165,604 |
Accrued worksite employee payroll cost | 192,396 | 173,801 |
Accrued health insurance costs | 18,329 | 5,103 |
Accrued workers’ compensation costs | 45,592 | 52,930 |
Accrued corporate payroll and commissions | 32,644 | 21,611 |
Other accrued liabilities | 22,444 | 14,960 |
Income tax payable | 4,031 | 0 |
Total current liabilities | 496,451 | 436,687 |
Noncurrent liabilities: | ||
Accrued workers’ compensation costs | 92,048 | 68,905 |
Deferred income taxes | 4,075 | 7,696 |
Total noncurrent liabilities | 96,123 | 76,601 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share: Shares authorized - 20,000 Shares issued and outstanding - none | 0 | 0 |
Common stock, par value $0.01 per share: Shares authorized - 60,000 Shares issued - 30,758 at December 31, 2014 and 2013 | 308 | 308 |
Additional paid-in capital | 137,769 | 135,653 |
Treasury stock, at cost – 5,425 and 5,175 at December 31, 2014 and 2013, respectively | -148,465 | -138,688 |
Accumulated other comprehensive income, net of tax | 3 | 29 |
Retained earnings | 214,481 | 255,970 |
Total stockholders’ equity | 204,096 | 253,272 |
Total liabilities and stockholders’ equity | $796,670 | $766,560 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 60,000 | 60,000 |
Common stock, issued (in shares) | 30,758 | 30,758 |
Treasury stock, shares (in shares) | 5,425 | 5,175 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenues (gross billings of $14.187 billion, $13.462 billion and $12.992 billion, less worksite employee payroll cost of $11.829 billion, $11.206 billion and $10.833 billion, respectively) | $2,357,788 | $2,256,112 | $2,158,824 |
Direct costs: | |||
Payroll taxes, benefits and workers’ compensation costs | 1,953,983 | 1,862,861 | 1,776,603 |
Gross profit | 403,805 | 393,251 | 382,221 |
Operating expenses: | |||
Salaries, wages and payroll taxes | 200,118 | 181,444 | 168,807 |
Stock-based compensation | 11,053 | 11,103 | 9,814 |
Commissions | 15,285 | 14,581 | 14,515 |
Advertising | 22,183 | 23,795 | 21,586 |
General and administrative expenses | 82,618 | 81,699 | 77,564 |
Impairment charges | 3,687 | 3,342 | 4,191 |
Depreciation and amortization | 21,387 | 21,064 | 18,250 |
Total operating expenses | 356,331 | 337,028 | 314,727 |
Operating income | 47,474 | 56,223 | 67,494 |
Other income (expense): | |||
Interest, net | 106 | 158 | 609 |
Other, net | 47 | -2,649 | 187 |
Income before income tax expense | 47,627 | 53,732 | 68,290 |
Income tax expense | 19,623 | 21,700 | 27,888 |
Net income | 28,004 | 32,032 | 40,402 |
Less distributed and undistributed earnings allocated to participating securities | -2,002 | -916 | -1,224 |
Net income allocated to common shares | $26,002 | $31,116 | $39,178 |
Basic net income per share of common stock (in dollars per share) | $1.05 | $1.25 | $1.57 |
Diluted net income per share of common stock (in dollars per share) | $1.05 | $1.25 | $1.56 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Gross billings | $14,187 | $13,462 | $12,992 |
Worksite employee payroll costs | $11,829 | $11,206 | $10,833 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $28,004 | $32,032 | $40,402 |
Other comprehensive income: | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | -26 | 13 | -8 |
Comprehensive income | $27,978 | $32,045 | $40,394 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2011 | $245,207,000 | $309,000 | $135,871,000 | ($134,647,000) | $24,000 | $243,650,000 |
Balance (shares) at Dec. 31, 2011 | 30,839,000 | |||||
Purchase of treasury stock, at cost | -13,773,000 | 0 | 0 | -13,773,000 | 0 | 0 |
Repurchase of common stock | -3,162,000 | -1,000 | -3,161,000 | 0 | 0 | 0 |
Repurchase of common stock (in shares) | -81,000 | |||||
Exercise of stock options | 2,249,000 | 0 | -1,630,000 | 3,879,000 | 0 | 0 |
Income tax benefit from stock-based compensation, net | 1,751,000 | 0 | 1,751,000 | 0 | 0 | 0 |
Stock-based compensation expense | 9,814,000 | 0 | 289,000 | 9,525,000 | 0 | 0 |
Other | 1,153,000 | 0 | 87,000 | 1,066,000 | 0 | 0 |
Dividends paid | -42,728,000 | 0 | 0 | 0 | 0 | -42,728,000 |
Unrealized gain (loss) on marketable securities, net of tax | -8,000 | 0 | 0 | 0 | -8,000 | 0 |
Net income | 40,402,000 | 0 | 0 | 0 | 0 | 40,402,000 |
Balance at Dec. 31, 2012 | 240,905,000 | 308,000 | 133,207,000 | -133,950,000 | 16,000 | 241,324,000 |
Balance (shares) at Dec. 31, 2012 | 30,758,000 | |||||
Purchase of treasury stock, at cost | -17,229,000 | 0 | 0 | -17,229,000 | 0 | 0 |
Repurchase of treasury stock (in shares) | 479,903 | |||||
Exercise of stock options | 1,448,000 | 0 | -790,000 | 2,238,000 | 0 | 0 |
Income tax benefit from stock-based compensation, net | 1,259,000 | 0 | 1,259,000 | 0 | 0 | 0 |
Stock-based compensation expense | 11,103,000 | 0 | 1,798,000 | 9,305,000 | 0 | 0 |
Other | 1,127,000 | 0 | 179,000 | 948,000 | 0 | 0 |
Dividends paid | -17,386,000 | 0 | 0 | 0 | 0 | -17,386,000 |
Unrealized gain (loss) on marketable securities, net of tax | 13,000 | 0 | 0 | 0 | 13,000 | 0 |
Net income | 32,032,000 | 0 | 0 | 0 | 0 | 32,032,000 |
Balance at Dec. 31, 2013 | 253,272,000 | 308,000 | 135,653,000 | -138,688,000 | 29,000 | 255,970,000 |
Balance (shares) at Dec. 31, 2013 | 30,758,000 | |||||
Purchase of treasury stock, at cost | -20,769,000 | 0 | 0 | -20,769,000 | 0 | 0 |
Repurchase of treasury stock (in shares) | 580,804 | |||||
Exercise of stock options | 279,000 | 0 | -180,000 | 459,000 | 0 | 0 |
Income tax benefit from stock-based compensation, net | 488,000 | 0 | 488,000 | 0 | 0 | 0 |
Stock-based compensation expense | 11,053,000 | 0 | 1,592,000 | 9,461,000 | 0 | 0 |
Other | 1,288,000 | 0 | 216,000 | 1,072,000 | 0 | 0 |
Dividends paid | -69,493,000 | 0 | 0 | 0 | 0 | -69,493,000 |
Unrealized gain (loss) on marketable securities, net of tax | -26,000 | 0 | 0 | 0 | -26,000 | 0 |
Net income | 28,004,000 | 0 | 0 | 0 | 0 | 28,004,000 |
Balance at Dec. 31, 2014 | $204,096,000 | $308,000 | $137,769,000 | ($148,465,000) | $3,000 | $214,481,000 |
Balance (shares) at Dec. 31, 2014 | 30,758,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $28,004 | $32,032 | $40,402 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,387 | 21,064 | 18,250 |
Total Impairments - Goodwill, Intangibles and Assets | 3,687 | 6,021 | 4,191 |
Amortization of marketable securities | 1,891 | 2,119 | 2,295 |
Stock-based compensation | 11,053 | 11,103 | 9,814 |
Deferred income taxes | -1,733 | -2,288 | -5,743 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Restricted cash | 7,888 | -4,779 | -2,412 |
Accounts receivable | 34,893 | -19,623 | -19,453 |
Prepaid insurance | -10,663 | 4,982 | 5,680 |
Other current assets | -5,596 | -2,402 | 1,837 |
Other assets | -32,013 | -18,091 | -12,991 |
Accounts payable | 1,996 | -982 | -1,425 |
Payroll taxes and other payroll deductions payable | 10,737 | -12,930 | 9,922 |
Accrued worksite employee payroll expense | 18,595 | 23,731 | 19,753 |
Accrued health insurance costs | 13,226 | -8,839 | 4,515 |
Accrued workers’ compensation costs | 15,805 | 7,815 | 7,418 |
Accrued corporate payroll, commissions and other accrued liabilities | 18,517 | 556 | 2,353 |
Income taxes payable/receivable | 4,039 | -4,825 | 6,392 |
Total adjustments | 113,709 | 2,632 | 50,396 |
Net cash provided by operating activities | 141,713 | 34,664 | 90,798 |
Marketable securities: | |||
Purchases | -69,578 | -54,756 | -30,680 |
Proceeds from maturities | 28,494 | 15,201 | 32,619 |
Proceeds from dispositions | 56,880 | 8,026 | 35,891 |
Investments and acquisitions, net of cash acquired | 0 | 0 | -2,410 |
Property and equipment: | |||
Purchases | -19,124 | -11,562 | -17,631 |
Proceeds from dispositions | 122 | 57 | 69 |
Net cash provided by (used in) investing activities | -3,206 | -43,034 | 17,858 |
Cash flows from financing activities: | |||
Purchase of treasury stock | -20,769 | -17,229 | -13,773 |
Repurchase of common stock | 0 | 0 | -3,162 |
Payments of Ordinary Dividends, Common Stock | -69,493 | -17,386 | -42,728 |
Proceeds from the exercise of stock options | 279 | 1,448 | 2,249 |
Income tax benefit from stock-based compensation | 889 | 1,621 | 2,316 |
Other | 1,288 | 1,127 | -222 |
Net cash used in financing activities | -87,806 | -30,419 | -55,320 |
Net increase (decrease) in cash and cash equivalents | 50,701 | -38,789 | 53,336 |
Cash and cash equivalents at beginning of year | 225,755 | 264,544 | 211,208 |
Cash and cash equivalents at end of year | 276,456 | 225,755 | 264,544 |
Supplemental disclosures: | |||
Cash paid for income taxes, net | $16,429 | $27,191 | $24,924 |
Accounting_Policies
Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Accounting Policies | |||||||||
1 | Accounting Policies | ||||||||
Description of Business | |||||||||
Insperity, Inc. (“Insperity” or “we”, “our”, and “us”) provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Since our formation 28 years ago, we have evolved from being solely a professional employer organization (“PEO”), an industry we pioneered, to our current position as a comprehensive business performance solutions provider. We were organized as a corporation in 1986 and have provided PEO services since inception. | |||||||||
Our most comprehensive HR services offerings are provided through our Workforce Optimization® and Workforce Synchronization solutions (together, our “PEO HR Outsourcing solutions”), which encompass a broad range of human resources functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. | |||||||||
In addition to our PEO HR Outsourcing solutions, we offer Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial and Expense Management services, Retirement Services and Insurance Services, (collectively “Strategic Businesses,” formerly known as “Adjacent Businesses”), many of which are offered via desktop applications and cloud-based delivery models. These other products or services are offered separately, as a bundle, or along with PEO HR Outsourcing solutions. | |||||||||
We provide our PEO HR Outsourcing solutions by entering into a co-employment relationship with our clients, under which Insperity and its clients each take responsibility for certain portions of the employer-employee relationship. Insperity and its clients designate each party’s responsibilities through its Client Service Agreement (“CSA”), under which Insperity becomes the employer of the employees who work at the client’s location (“worksite employees”) for most administrative and regulatory purposes. | |||||||||
As a co-employer of its worksite employees, we assume many of the rights and obligations associated with being an employer. We enter into an employment agreement with each worksite employee, thereby maintaining a variety of employer rights, including the right to hire or terminate employees, the right to evaluate employee qualifications or performance, and the right to establish employee compensation levels. Typically, Insperity only exercises these rights in consultation with its clients or when necessary to ensure regulatory compliance. The responsibilities associated with our role as employer include the following obligations with regard to our worksite employees: (i) to compensate its worksite employees through wages and salaries; (ii) to pay the employer portion of payroll-related taxes; (iii) to withhold and remit (where applicable) the employee portion of payroll-related taxes; (iv) to provide employee benefit programs; and (v) to provide workers’ compensation insurance coverage. | |||||||||
In addition to our assumption of employer status for our worksite employees, our PEO HR Outsourcing solutions also include other human resources functions for our clients to support the effective and efficient use of personnel in their business operations. To provide these functions, we maintain a significant staff of professionals trained in a wide variety of human resources functions, including employee training, employee recruiting, employee performance management, employee compensation and employer liability management. These professionals interact and consult with clients on a daily basis to help identify each client’s service requirements and to ensure that we are providing appropriate and timely personnel management services. | |||||||||
Revenue and Direct Cost Recognition | |||||||||
We account for our PEO HR Outsourcing solutions revenues in accordance with Accounting Standards Codification (“ASC”) 605-45, Revenue Recognition, Principal Agent Considerations. Our PEO HR Outsourcing solutions revenues are primarily derived from our gross billings, which are based on (i) the payroll cost of its worksite employees; and (ii) a markup computed as a percentage of the payroll cost. The gross billings are invoiced concurrently with each periodic payroll of its worksite employees. Revenues, which exclude the payroll cost component of gross billings and therefore consist solely of markup, are recognized ratably over the payroll period as worksite employees perform their service at the client worksite. Revenues that have been recognized but not invoiced are included in unbilled accounts receivable on our Consolidated Balance Sheets. | |||||||||
In determining the pricing of the markup component of our gross billings, we take into consideration our estimates of the costs directly associated with our worksite employees, including payroll taxes, benefits and workers’ compensation costs, plus an acceptable gross profit margin. As a result, our operating results are significantly impacted by our ability to accurately estimate, control and manage our direct costs relative to the revenues derived from the markup component of our gross billings. | |||||||||
Consistent with our revenue recognition policy, our direct costs do not include the payroll cost of our worksite employees. Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our worksite employees, such as the employer portion of payroll-related taxes, employee benefit plan premiums and workers’ compensation insurance costs. | |||||||||
Segment Reporting | |||||||||
We operate one reportable segment under ASC 280, Segment Reporting. | |||||||||
Principles of Consolidation | |||||||||
The Consolidated Financial Statements include the accounts of Insperity, Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||
Concentrations of Credit Risk | |||||||||
Financial instruments that could potentially subject us to concentration of credit risk include accounts receivable and marketable securities. | |||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||
We invest our excess cash in federal government and municipal-based money market funds and debt instruments of U.S. municipalities. All highly liquid investments with stated maturities of three months or less from date of purchase are classified as cash equivalents. Liquid investments with stated maturities of greater than three months are classified as marketable securities in current assets. | |||||||||
We account for marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. We determine the appropriate classification of all marketable securities as held-to-maturity, available-for-sale or trading at the time of purchase, and re-evaluate such classification as of each balance sheet date. At December 31, 2014 and 2013, all of our investments in marketable securities were classified as available-for-sale, and as a result, were reported at fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts from the date of purchase to maturity. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. We use the specific identification method of determining the cost basis in computing realized gains and losses on the sale of our available-for-sale securities. Realized gains and losses are included in other income. | |||||||||
Fair Value of Financial Instruments | |||||||||
The carrying amounts of cash, cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturities of these instruments. | |||||||||
Property and Equipment | |||||||||
Property and equipment are recorded at cost and are depreciated over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: | |||||||||
Buildings and improvements | 5-30 years | ||||||||
Computer hardware and software | 1-5 years | ||||||||
Software development costs | 3-5 years | ||||||||
Furniture and fixtures | 5-7 years | ||||||||
Aircraft | 15-20 years | ||||||||
Software development costs relate primarily to software coding, system interfaces and testing of our proprietary professional employer information systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Capitalized software development costs are amortized using the straight-line method over the estimated useful lives of the software, generally three years. We recognized $4.1 million, $3.6 million and $2.8 million in amortization of capitalized computer software costs in 2014, 2013 and 2012, respectively. Unamortized computer software costs were $6.0 million and$7.2 million in 2014 and 2013, respectively. | |||||||||
We account for our software products in accordance with ASC 985-20, Costs of Software to be Sold. This Topic establishes standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased. | |||||||||
We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. Due to a change in office consolidation plans, we recorded a $1.2 million non-cash charge related to office design fees. | |||||||||
Goodwill and Other Intangible Assets | |||||||||
Our purchased intangible assets are carried at cost less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, ranging from three to 10 years. | |||||||||
Our goodwill and intangible assets are subject to the provisions of ASC 350, Intangibles – Goodwill and Other. Accordingly, we perform our annual goodwill impairment testing as of December 31st of each calendar year or earlier if indicators of impairment exist on an interim basis. Step one of the impairment testing involves a comparison of the estimated fair value of a reporting unit to the related carrying value. Fair value is estimated using a discounted cash flow model. If the estimated fair value is less than its related carrying value, step two of the goodwill impairment test is completed, which involves allocating the estimated fair value of the reporting unit to individual assets and liabilities. If the carrying value of goodwill is greater than the estimated fair value, an impairment exists, which results in a write-down of the goodwill to the estimated fair value. Furthermore, ASC 350 requires purchased intangible assets other than goodwill to be amortized over their useful lives unless these lives are determined to be indefinite. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||
Health Insurance Costs | |||||||||
We provide group health insurance coverage to our worksite employees through a national network of carriers including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield, Unity Health Plan and Tufts, all of which provide fully insured policies or service contracts. | |||||||||
The policy with United provides the majority of our health insurance coverage. As a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Accordingly, we record the cost of the United portion of the plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense in the Consolidated Statements of Operations. The estimated incurred claims are based upon: (i) the level of claims processed during each quarter; (ii) estimated completion rates based upon recent claim development patterns under the plan; and (iii) the number of participants in the plan, including both active and COBRA enrollees. Each reporting period, changes in the estimated ultimate costs resulting from claim trends, plan design and migration, participant demographics and other factors are incorporated into the benefits costs. | |||||||||
Additionally, since the plan’s inception, under the terms of the contract, United establishes cash funding rates 90 days in advance of the beginning of a reporting quarter. If the Plan Costs for a reporting quarter are greater than the premiums paid and owed to United, a deficit in the plan would be incurred and a liability for the excess costs would be accrued in our Consolidated Balance Sheets. On the other hand, if the Plan Costs for the reporting quarter are less than the premiums paid and owed to United, a surplus in the plan would be incurred and we would record an asset for the excess premiums in our Consolidated Balance Sheets. The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $9.0 million, which is reported as long-term prepaid insurance. In addition, United requires a deposit equal to approximately | |||||||||
one day of claims funding activity, which was $3.5 million as of December 31, 2014, and is reported as a long-term asset. | |||||||||
As of December 31, 2014, Plan Costs were less than the net premiums paid and owed to United by $23.5 million. As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $14.5 million balance is included in prepaid insurance, a current asset, in our Consolidated Balance Sheets. The premiums owed to United at December 31, 2014, were $15.0 million, which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. | |||||||||
Workers’ Compensation Costs | |||||||||
Our workers’ compensation coverage has been provided through an arrangement with the ACE Group of Companies (“the ACE Program”) since 2007. The ACE Program is fully insured in that ACE has the responsibility to pay all claims incurred regardless of whether we satisfy our responsibilities. Under the ACE Program, we bear the economic burden for the first $1 million layer of claims per occurrence, and effective October 1, 2010, we also bear the economic burden for a maximum aggregate amount of $5 million per policy year for claim amounts that exceed the first $1 million. ACE bears the economic burden for all claims in excess of these levels. | |||||||||
Because we bear the economic burden for claims up to the levels noted above, such claims, which are the primary component of our workers’ compensation costs, are recorded in the period incurred. Workers’ compensation insurance includes ongoing health care and indemnity coverage whereby claims are paid over numerous years following the date of injury. Accordingly, the accrual of related incurred costs in each reporting period includes estimates, which take into account the ongoing development of claims and therefore requires a significant level of judgment. | |||||||||
We employ a third party actuary to estimate our loss development rate, which is primarily based upon the nature of worksite employees’ job responsibilities, the location of worksite employees, the historical frequency and severity of workers compensation claims, and an estimate of future cost trends. Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. During the years ended December 31, 2014 and 2013, we reduced accrued workers’ compensation costs by $2.9 million and $9.3 million, respectively, for changes in estimated losses related to prior reporting periods. Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S. Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rates utilized in 2014 and 2013 were 1.0% and 0.8%, respectively) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations. | |||||||||
The following table provides the activity and balances related to incurred but not reported workers’ compensation claims: | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 120,833 | $ | 111,685 | |||||
Accrued claims | 55,971 | 42,900 | |||||||
Present value discount | (1,998 | ) | (1,169 | ) | |||||
Paid claims | (38,718 | ) | (32,583 | ) | |||||
Ending balance | $ | 136,088 | $ | 120,833 | |||||
Current portion of accrued claims | $ | 44,040 | $ | 51,928 | |||||
Long-term portion of accrued claims | 92,048 | 68,905 | |||||||
$ | 136,088 | $ | 120,833 | ||||||
The current portion of accrued workers’ compensation costs at December 31, 2014 and 2013 includes $1.6 million and $1.0 million, respectively, of workers’ compensation administrative fees. | |||||||||
As of December 31, the undiscounted accrued workers’ compensation costs were $145.8 million in 2014 and $131.2 million in 2013. | |||||||||
At the beginning of each policy period, the insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”). The level of claim funds is primarily based upon anticipated worksite employee payroll levels and expected workers’ compensation loss rates, as determined by the insurance carrier. Monies funded into the program for incurred claims expected to be paid within one year are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits, a long-term asset in our Consolidated Balance Sheets. In 2014, we paid the insurance carrier an additional $7.2 million in claim funds for policy years prior to 2014, which increased deposits. As of December 31, 2014, we had restricted cash of $44.0 million and deposits of $113.9 million. | |||||||||
Our estimate of incurred claim costs expected to be paid within one year are recorded as accrued workers’ compensation costs and included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year are included in long-term liabilities on our Consolidated Balance Sheets. | |||||||||
Stock-Based Compensation | |||||||||
At December 31, 2014, we have two stock-based employee compensation plans under which we may issue awards. We account for these plans under the recognition and measurement principles of ASC 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. | |||||||||
We generally make annual grants of restricted and unrestricted stock under our stock-based incentive compensation plans to our directors, officers and other management. Restricted stock grants to officers and other management vest over three to five years from the date of grant. Restricted stock grants issued to directors upon their initial appointment to the board are one-third vested on each anniversary of the grant date. Annual stock grants issued to directors are 100% vested on the grant date. Shares of restricted stock are based on fair value on date of grant and the associated expense, net of estimated forfeitures, is recognized over the vesting period. | |||||||||
Company-Sponsored 401(k) Plans | |||||||||
Under our 401(k) plan for corporate employees (the “Corporate Plan”), we matched 50% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2014, 2013 and 2012. Under our separate | |||||||||
401(k) plan for worksite employees (the “Worksite Employee Plan”), the match percentage for worksite employees ranges from 0% to 6%, as determined by each client company. Matching contributions under the Corporate Plan and the Worksite Employee Plan are immediately vested. During 2014, 2013 and 2012, we made matching contributions to the Corporate and Worksite Employee Plans of $81.5 million, $74.7 million and $65.9 million, respectively. Of these contributions, $78.4 million, $71.7 million and $63.3 million were made under the Worksite Employee Plan on behalf of worksite employees. The remainder represents matching contributions made under the Corporate Plan on behalf of corporate employees. | |||||||||
Advertising | |||||||||
We expense all advertising costs as incurred. | |||||||||
Income Taxes | |||||||||
We use the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amounts of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. | |||||||||
Reclassifications | |||||||||
Certain prior year amounts have been reclassified to conform to the 2014 presentation. | |||||||||
New Accounting Pronouncements | |||||||||
We believe that we have implemented the accounting pronouncements with a material impact on our financial statements. | |||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under ASU No. 2014-09, an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for annual reporting periods ending after December 15, 2016, and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU No. 2014-09. We are currently evaluating the guidance and have not determined the impact this standard may have on our Consolidated Financial Statements. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||
2 | Cash, Cash Equivalents and Marketable Securities | ||||||||||||||||
The following table summarizes our investments in cash equivalents and marketable securities held by investment managers and overnight investments: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Overnight holdings: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 271,840 | $ | 192,040 | |||||||||||||
Investment holdings: | |||||||||||||||||
Money market funds (cash equivalents) | 14,125 | 42,913 | |||||||||||||||
Marketable securities | 28,631 | 46,340 | |||||||||||||||
314,596 | 281,293 | ||||||||||||||||
Cash held in demand accounts | 20,369 | 23,054 | |||||||||||||||
Outstanding checks | (29,878 | ) | (32,252 | ) | |||||||||||||
Total cash, cash equivalents and marketable securities | $ | 305,087 | $ | 272,095 | |||||||||||||
Cash and cash equivalents | $ | 276,456 | $ | 225,755 | |||||||||||||
Marketable securities | 28,631 | 46,340 | |||||||||||||||
$ | 305,087 | $ | 272,095 | ||||||||||||||
Our cash and overnight holdings fluctuate based on the timing of the client’s payroll processing cycle. Included in the cash balance as of December 31, 2014 and December 31, 2013, are $152.1 million and $143.0 million, respectively, in withholdings associated with federal and state income taxes, employment taxes and other payroll deductions, as well as $87.9 million and $24.5 million, respectively, in client prepayments. | |||||||||||||||||
We account for our financial assets in accordance with ASC 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: | |||||||||||||||||
• | Level 1 - quoted prices in active markets using identical assets | ||||||||||||||||
• | Level 2 - significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs | ||||||||||||||||
• | Level 3 - significant unobservable inputs | ||||||||||||||||
The following tables summarize the levels of fair value measurements of our financial assets: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
(in thousands) | |||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2014 | |||||||||||||||||
Money market funds | $ | 285,965 | $ | 285,965 | $ | — | $ | — | |||||||||
Municipal bonds | 28,631 | — | 28,631 | — | |||||||||||||
Total | $ | 314,596 | $ | 285,965 | $ | 28,631 | $ | — | |||||||||
Fair Value Measurements | |||||||||||||||||
(in thousands) | |||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Money market funds | $ | 234,953 | $ | 234,953 | $ | — | $ | — | |||||||||
Municipal bonds | 46,340 | — | 46,340 | — | |||||||||||||
Total | $ | 281,293 | $ | 234,953 | $ | 46,340 | $ | — | |||||||||
The municipal bond securities valued as Level 2 investments are primarily pre-refunded municipal bonds that are secured by escrow funds containing U.S. Government securities. Our valuation techniques used to measure fair value for these securities during the period consisted primarily of third party pricing services that utilized actual market data such as trades of comparable bond issues, broker/dealer quotations for the same or similar investments in active markets and other observable inputs. | |||||||||||||||||
The following is a summary of our available-for-sale marketable securities: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Municipal bonds | $ | 28,626 | $ | 16 | $ | (11 | ) | $ | 28,631 | ||||||||
31-Dec-13 | |||||||||||||||||
Municipal bonds | $ | 46,290 | $ | 51 | $ | (1 | ) | $ | 46,340 | ||||||||
As of December 31, 2014, the contractual maturities of our marketable securities were as follows: | |||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Less than one year | $ | 12,728 | $ | 12,737 | |||||||||||||
One to five years | 15,898 | 15,894 | |||||||||||||||
Total | $ | 28,626 | $ | 28,631 | |||||||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable Additional Disclosures [Abstract] | |||||||||
Accounts Receivable | |||||||||
3 | Accounts Receivable | ||||||||
Our accounts receivable is primarily composed of trade receivables and unbilled receivables. Our trade receivables, which represent outstanding gross billings to clients, are reported net of allowance for doubtful accounts of $1.2 million and $0.9 million as of December 31, 2014 and 2013, respectively. We establish an allowance for doubtful accounts based on management’s assessment of the collectability of specific accounts and by making a general provision for other potentially uncollectible amounts. | |||||||||
We make an accrual at the end of each accounting period for our obligations associated with the earned but unpaid wages of our worksite employees and for the accrued gross billings associated with such wages. These accruals are included in accrued worksite employee payroll cost and unbilled accounts receivable; however, these amounts are presented net in the Consolidated Statements of Operations. We generally require clients to pay invoices for service fees no later than one day prior to the applicable payroll date. As such, we generally do not require collateral. Client prepayments directly attributable to unbilled accounts receivable have been netted against such receivables as the gross billings have been earned and the payroll cost has been incurred, thus we have the legal right of offset for these amounts. Unbilled accounts receivable consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued worksite employee payroll cost | $ | 192,396 | $ | 173,801 | |||||
Unbilled revenues | 55,645 | 50,286 | |||||||
Customer prepayments | (87,887 | ) | (24,459 | ) | |||||
Unbilled accounts receivable | $ | 160,154 | $ | 199,628 | |||||
Deposits
Deposits | 12 Months Ended | |
Dec. 31, 2014 | ||
Deposits [Abstract] | ||
Deposits | ||
4 | Deposits | |
The contractual arrangement with United for health insurance coverage requires us to maintain an accumulated cash surplus in the plan of $9.0 million, which is reported as long-term prepaid health insurance. Please read Note 1, “Accounting Policies,” for a discussion of our accounting policies for health insurance costs. | ||
As of December 31, 2014, we had $3.7 million in health insurance long-term deposits. Please read Note 1 “Accounting Policies” for a discussion of our accounting policies for health insurance costs. | ||
As of December 31, 2014, we had $113.9 million in workers’ compensation long-term deposits. Please read Note 1 “Accounting Policies” for a discussion of our accounting policies for workers’ compensation costs. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||
5 | Goodwill and Other Intangible Assets | ||||||||||||||||
We perform our annual asset impairment test as of December 31, the end of our calendar year. During the fourth quarters of 2014, 2013 and 2012, we performed step one of the annual impairment test for each of our reporting units. We concluded the estimated fair value of our Expense Management unit in 2013 and our Performance Management unit in 2012, were below their respective carrying values. | |||||||||||||||||
Additionally, any time impairment indicators are identified, we perform an interim impairment test. During the second quarter of 2014, impairment indicators were identified in our Employment Screening business, due to changes in management, the reporting unit’s financial results and the loss of certain customers. | |||||||||||||||||
The declines in the estimated fair values of Employment Screening, Expense Management and Performance Management resulted primarily from lower projected revenue growth rates and profitability levels. Upon completion of step two of the goodwill impairment tests, we recognized goodwill and other intangible asset impairments of $2.5 million in 2014 related to our Employment Screening business unit, $3.3 million in 2013 related to our Expense Management reporting unit and $4.2 million in 2012 related to our Performance Management reporting unit. The fair values of the reporting units were estimated using a discounted cash flow model. The material assumptions used in the model included the weighted average cost of capital and long-term growth rates. We consider this a Level 3 fair value measure. | |||||||||||||||||
The following table presents the gross carrying amount and accumulated amortization for each class of intangible assets and the gross carrying amount and accumulated impairment for goodwill: | |||||||||||||||||
31-Dec-13 | Twelve Months Ended | 31-Dec-14 | |||||||||||||||
December 31, 2014 | |||||||||||||||||
Balance | Impairment | Amortization Expense | Balance | ||||||||||||||
(in thousands) | |||||||||||||||||
Gross carrying amount: | |||||||||||||||||
Trademarks | $ | 1,230 | $ | (1,010 | ) | $ | — | $ | 220 | ||||||||
Customer relationships | 7,784 | (1,392 | ) | — | 6,392 | ||||||||||||
Aggregate goodwill acquired: | |||||||||||||||||
Goodwill | 21,156 | — | — | 21,156 | |||||||||||||
Total | $ | 30,170 | $ | (2,402 | ) | $ | — | $ | 27,768 | ||||||||
Accumulated amortization: | |||||||||||||||||
Trademarks | $ | (680 | ) | $ | 695 | $ | (77 | ) | $ | (62 | ) | ||||||
Customer relationships | (4,340 | ) | 976 | (1,415 | ) | (4,779 | ) | ||||||||||
Accumulated impairment: | |||||||||||||||||
Goodwill | (6,716 | ) | (1,754 | ) | — | (8,470 | ) | ||||||||||
Total | $ | (11,736 | ) | $ | (83 | ) | $ | (1,492 | ) | $ | (13,311 | ) | |||||
Net carrying amount: | |||||||||||||||||
Trademarks | $ | 550 | $ | (315 | ) | $ | (77 | ) | $ | 158 | |||||||
Customer relationships | 3,444 | (416 | ) | (1,415 | ) | 1,613 | |||||||||||
Goodwill | 14,440 | (1,754 | ) | — | 12,686 | ||||||||||||
Total goodwill and other intangible assets | $ | 18,434 | $ | (2,485 | ) | $ | (1,492 | ) | $ | 14,457 | |||||||
Our amortization expense related to purchased intangible assets other than goodwill was $1.5 million in 2014, $2.0 million in 2013 and $1.8 million in 2012, and is estimated to be $0.9 million in 2015, $0.5 million in 2016, $0.3 million in 2017, $36,000 in 2018 and $19,000 in 2019. |
Other_Assets_Notes
Other Assets (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Other Assets [Abstract] | ||
Cost-method Investments, Description [Text Block] | ||
6 | Other Assets | |
In 2011, we acquired a minority interest in The Receivables Exchange ("TRE"), an online marketplace for the sale of accounts receivable, for $2.8 million. In the second quarter of 2013, TRE issued similar securities at per share amounts substantially below the per share book value of our investment. Accordingly, we valued the investment based on a similar security market transaction, which is a Level 2 valuation technique. This resulted in a non-cash impairment charge of $2.7 million in 2013, which is included in other income (expense) in our Consolidated Statements of Operations. Due to federal income tax limitations on capital losses, no tax benefit associated with the impairment was recognized. |
Acquisitions
Acquisitions | 12 Months Ended | |
Dec. 31, 2014 | ||
Business Combinations [Abstract] | ||
Acquisitions | ||
7 | Acquisitions | |
We account for our acquisitions in accordance with ASC 805, Business Combinations, which requires allocation of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on the fair value at the date of purchase. All acquisition related costs are expensed as incurred and recorded in operating expenses. We include operations associated with acquisitions from the date of acquisition forward. | ||
Included in our 2012 Consolidated Statements of Cash Flows are payments related to our 2011 acquisition of HumanConcepts and our 2010 acquisition of Galaxy Technologies, Inc. During 2012, we paid $1.2 million related to the HumanConcepts acquisition and $1.4 million related to Galaxy Technologies, Inc. acquisition, based on the terms of their respective agreements. |
Revolving_Credit_Facility
Revolving Credit Facility | 12 Months Ended | |
Dec. 31, 2014 | ||
Debt Disclosure [Abstract] | ||
Revolving Credit Facility | ||
8 | Revolving Credit Facility | |
On September 15, 2011, we entered into a four-year, $100 million revolving credit facility (the “Facility”), which may be increased to $150 million based on the terms and subject to the conditions set forth in the agreement relating to the Facility (the “Credit Agreement”). In February 2015, the credit facility was increased from $100 million to $125 million and the expiration date was extended from September 2015 to February 2020. The Facility is available for working capital and general corporate purposes, including acquisitions, and issuances of letters of credit. Our obligations under the Facility are secured by 65% of the stock of our captive insurance subsidiary and are guaranteed by all of our domestic subsidiaries. At December 31, 2014, we had not drawn on the Facility. As of December 31, 2014, we had an outstanding $0.6 million letter of credit issued under the Facility. | ||
Borrowings under the Facility bear interest at an alternate base rate or LIBOR, at our option, plus an applicable margin. Depending on our leverage ratio, the applicable margin varies (i) in the case of LIBOR loans, from 2.00% to 2.75% and (ii) in the case of alternate base rate loans, from 0.00% to 0.75%. The alternate base rate is the highest of (i) the prime rate most recently published in The Wall Street Journal, (ii) the federal funds rate plus 0.50% and (iii) the 30-day LIBOR rate plus 2.00%. We also pay an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.25%. Interest expense and unused commitment fees are recorded in other income (expense). | ||
The Facility contains both affirmative and negative covenants, which we believe are customary for arrangements of this nature. Covenants include, but are not limited to, limitations on our ability to incur additional indebtedness, sell material assets, retire, redeem or otherwise reacquire our capital stock, acquire the capital stock or assets of another business, make investments and pay dividends. In addition, the Credit Agreement requires us to comply with financial covenants limiting our total funded debt, minimum interest coverage ratio and maximum leverage ratio. In December 2014 and 2012, the Credit Agreement was amended to modify the interest coverage ratio covenant to exclude the impact of special dividends paid of $50.7 million and $25.7 million, respectively. We were in compliance with all financial covenants under the Credit Agreement at December 31, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | |||||||||||||
9 | Income Taxes | ||||||||||||
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. Significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid assets | $ | (9,291 | ) | $ | (5,084 | ) | |||||||
Depreciation | (8,083 | ) | (8,937 | ) | |||||||||
Software development costs | (2,252 | ) | (2,739 | ) | |||||||||
Total deferred tax liabilities | (19,626 | ) | (16,760 | ) | |||||||||
Deferred tax assets: | |||||||||||||
Accrued incentive compensation | 7,204 | 3,909 | |||||||||||
Net operating loss carryforward | 1,556 | 1,773 | |||||||||||
Workers’ compensation accruals | 6,308 | 5,568 | |||||||||||
Accrued rent | 1,058 | 1,008 | |||||||||||
Stock-based compensation | 3,615 | 3,742 | |||||||||||
Intangibles | 1,575 | 837 | |||||||||||
Minority investment impairment | 1,003 | 991 | |||||||||||
Other | 551 | 412 | |||||||||||
Total deferred tax assets | 22,870 | 18,240 | |||||||||||
Valuation allowance | (1,003 | ) | (991 | ) | |||||||||
Total net deferred tax assets | 21,867 | 17,249 | |||||||||||
Net deferred tax assets | $ | 2,241 | $ | 489 | |||||||||
Net current deferred tax assets | $ | 6,316 | $ | 8,185 | |||||||||
Net noncurrent deferred tax liabilities | (4,075 | ) | (7,696 | ) | |||||||||
$ | 2,241 | $ | 489 | ||||||||||
The components of income tax expense are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current income tax expense: | |||||||||||||
Federal | $ | 18,034 | $ | 20,476 | $ | 29,280 | |||||||
State | 3,322 | 3,512 | 4,351 | ||||||||||
Total current income tax expense | 21,356 | 23,988 | 33,631 | ||||||||||
Deferred income tax (benefit) expense: | |||||||||||||
Federal | (1,764 | ) | (2,258 | ) | (5,363 | ) | |||||||
State | 31 | (30 | ) | (380 | ) | ||||||||
Total deferred income tax benefit | (1,733 | ) | (2,288 | ) | (5,743 | ) | |||||||
Total income tax expense | $ | 19,623 | $ | 21,700 | $ | 27,888 | |||||||
As a result of nonqualified stock option exercises, disqualifying dispositions of certain employee incentive stock options and vesting of restricted stock awards, we had a net income tax benefit of $0.5 million in 2014, $1.3 million in 2013 and $1.8 million in 2012. The excess income tax benefit is reported as a component of additional paid-in capital. | |||||||||||||
The reconciliation of income tax expense computed at U.S. federal statutory tax rates to the reported income tax expense from continuing operations is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expected income tax expense at 35% | $ | 16,670 | $ | 18,806 | $ | 23,901 | |||||||
State income taxes, net of federal benefit | 2,204 | 2,286 | 2,497 | ||||||||||
Nondeductible expenses | 1,939 | 1,993 | 1,663 | ||||||||||
Section 199 benefits | (592 | ) | (2,531 | ) | — | ||||||||
Expense Management non-cash impairment | — | 797 | — | ||||||||||
Valuation allowance related to TRE impairment | — | 938 | — | ||||||||||
Research and development credit | (455 | ) | (534 | ) | — | ||||||||
Other, net | (143 | ) | (55 | ) | (173 | ) | |||||||
Reported total income tax expense | $ | 19,623 | $ | 21,700 | $ | 27,888 | |||||||
We have developed customer facing software that is included as a component of the PEO HR Outsourcing solutions. In addition, several Strategic Business Units (“SBU”) market both software products and cloud based offerings. Prior to 2013, we were not certain that these software offerings met the IRS “Qualified Production Activities Deduction” requirements. As a result, no such tax deduction was taken on the annual tax returns filed with the IRS. However, in 2013, we engaged tax specialists to conduct a study of our various software offerings to assess the qualifications with IRS guidelines. Based on this study, we concluded certain of our software offerings met the IRS requirements, resulting in amendments to previously filed open year tax returns. Accordingly, in 2013 we recognized $2.0 million in tax benefits for the years 2009 to 2012, and $0.5 million in tax benefits for the 2013 tax year. | |||||||||||||
At December 31, 2014, we have net operating loss carryforwards totaling approximately $4.2 million that expire from 2023 to 2030 related to our acquisition of ExpensAble. | |||||||||||||
We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2014, 2013 and 2012, we made no provisions for interest or penalties related to uncertain tax positions. The tax years 2011 through 2014 remain open to examination by the Internal Revenue Service of the United States. The tax years 2010 through 2014 remain open to examination by various state tax authorities. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Stockholders' Equity | |||||||||
10 | Stockholders’ Equity | ||||||||
Repurchase Program | |||||||||
Our Board of Directors (the “Board”) has authorized a program to repurchase up to 15,500,000 shares of our outstanding common stock (“Repurchase Program”). The purchases are to be made from time to time in the open market or directly from stockholders at prevailing market prices based on market conditions or other factors. We repurchased 580,804 shares under the Repurchase Program during 2014. In addition, 112,458 shares were withheld during 2014 to satisfy minimum tax withholding obligations for the vesting of restricted stock awards. These purchases are not subject to the Repurchase Program. During 2013, we repurchased 479,903 shares under the Repurchase Program and 116,931 shares were withheld to satisfy minimum tax withholding obligations for the vesting of restricted stock awards. As of December 31, 2014, we were authorized to repurchase an additional 768,765 shares under the Repurchase Program. Shares repurchased under the Repurchase Program and shares withheld to satisfy minimum tax withholding obligations for the vesting of restricted stock awards are recorded in treasury. | |||||||||
Dividends | |||||||||
The Board declared quarterly dividends in 2014 and 2013 as follows: | |||||||||
2014 | 2013 | ||||||||
(amounts per share) | |||||||||
First quarter | $ | 0.17 | $ | 0.17 | |||||
Second quarter | 0.19 | 0.17 | |||||||
Third quarter | 0.19 | 0.17 | |||||||
Fourth quarter | 2.19 | (1) | 0.17 | ||||||
____________________________________ | |||||||||
(1) Includes a $2.00 per share special dividend | |||||||||
During 2014 and 2013, we paid a total of $69.5 million and $17.4 million, respectively in dividends. The dividends paid in 2014 includes a one-time special dividend of $50.7 million. | |||||||||
Preferred Stock | |||||||||
At December 31, 2014, 20 million shares of preferred stock were authorized, of which 600,000 shares were designated as Series A Junior Participating Preferred Stock that is reserved for issuance on exercise of preferred stock purchase rights under our Share Purchase Rights Plan (the “Rights Plan”). Each issued share of our common stock has one preferred stock purchase right attached to it. No preferred shares have been issued and the rights are not currently exercisable. The Rights Plan expires on November 13, 2017. |
Incentive_Plans
Incentive Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Incentive Plans | ||||||||||||||
11 | Incentive Plans | |||||||||||||
The Insperity, Inc. 2001 Incentive Plan, as amended, and the 2012 Incentive Plan, as amended, (collectively, the “Incentive Plans”) provide for options and other stock-based awards that have been and may be granted to eligible employees and non-employee directors of Insperity or its subsidiaries. The 2012 Incentive Plan is currently the only plan under which new stock-based awards may be granted. The Incentive Plans are administered by the Compensation Committee of the Board of Directors (the “Committee”). The Committee has the power to determine which eligible employees will receive awards, the timing and manner of the grant of such awards, the exercise price of stock options (which may not be less than market value on the date of grant), the number of shares and all of the terms of the awards. The Board may at any time amend or terminate the Incentive Plans. However, no amendment that would impair the rights of any participant, with respect to outstanding grants, can be made without the participant’s prior consent. Stockholder approval of amendments to the Incentive Plans is necessary only when required by applicable law or stock exchange rules. At December 31, 2014, 1,299,470 shares of common stock were available for future grants under the 2012 Incentive Plan. The Incentive Plans permit stock options, including nonqualified stock options and options intended to qualify as “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code, stock awards, phantom stock awards, stock appreciation rights, performance units, and other stock-based awards and cash awards, all of which may or may not be subject to the achievement of one or more performance objectives. The purposes of the Incentive Plans generally are to retain and attract persons of training, experience and ability to serve as employees of Insperity and its subsidiaries and to serve as non-employee directors of Insperity, to encourage the sense of proprietorship of such persons and to stimulate the active interest of such persons in the development and financial success of Insperity and its subsidiaries. | ||||||||||||||
The Insperity Nonqualified Stock Option Plan (the “Nonqualified Plan”) provided for options to purchase shares of Insperity’s common stock that were granted to employees who were not officers. An aggregate of 3,600,000 shares of common stock of Insperity were authorized to be issued under the Nonqualified Plan. As of December 31, 2014, there were no outstanding unexercised shares under the Nonqualified Plan, and although there are unissued shares remaining, no new awards may be granted under the Nonqualified Plan. The Committee may at any time terminate or amend the Nonqualified Plan. | ||||||||||||||
We recognized $11.1 million, $11.1 million and $9.8 million of compensation expense associated with the restricted stock awards in 2014, 2013 and 2012, respectively. We recognized $4.6 million, $4.5 million and $4.0 million of tax benefits associated with stock-based compensation in 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock Option Awards | ||||||||||||||
The following is a summary of stock option award activity for 2014: | ||||||||||||||
Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||
Outstanding - December 31, 2013 | 61 | $ | 24.24 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (18 | ) | 15.28 | |||||||||||
Canceled | — | — | ||||||||||||
Outstanding - December 31, 2014 | 43 | 28.04 | 5.3 | $ | 253 | |||||||||
Exercisable - December 31, 2014 | 43 | 28.04 | 5.3 | $ | 253 | |||||||||
The intrinsic value of options exercised during the year was $0.3 million in 2014, $1.5 million in 2013 and $2.5 million in 2012. | ||||||||||||||
Restricted Stock Awards | ||||||||||||||
Restricted common shares, under equity plan accounting, are generally measured at fair value on the date of grant based on the number of shares granted, estimated forfeitures and the quoted price of the common stock. Such value is recognized as compensation expense over the corresponding vesting period, three to five years for our shares currently outstanding. The total fair value of shares vested during the years ended December 31, 2014, 2013, and 2012 was $10.8 million, $12.3 million and $11.7 million, respectively. The weighted average grant date fair value of restricted stock awards during the years ended December 31, 2014, 2013 and 2012 was $28.22, $29.25 and $30.47, respectively. As of December 31, 2014, unrecognized compensation expense associated with the unvested shares outstanding was $12.7 million and is expected to be recognized over a weighted average period of 21 months. | ||||||||||||||
The following is a summary of restricted stock award activity for 2014: | ||||||||||||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
(in thousands) | ||||||||||||||
Non-vested - December 31, 2013 | 740 | $ | 29.66 | |||||||||||
Granted | 410 | 28.22 | ||||||||||||
Vested | (382 | ) | 29.79 | |||||||||||
Canceled/Forfeited | (28 | ) | 28.45 | |||||||||||
Non-vested - December 31, 2014 | 740 | 28.84 | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
Our employee stock purchase plan (the “ESPP”) enables employees to purchase shares of Insperity stock at a 5% discount. The ESPP is a non-compensatory plan under generally accepted accounting principles of stock-based compensation. As a result, no compensation expense is recognized in conjunction with this plan. Approximately 37,000, 34,000 and 37,000 shares were issued under the ESPP during fiscal years 2014, 2013 and 2012, respectively. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Income Per Share | |||||||||||||
12 | Net Income Per Share | ||||||||||||
We utilize the two-class method to compute net income per share. The two-class method allocates a portion of net income to participating securities, which includes unvested awards of share-based payments with non-forfeitable rights to receive dividends. Net income allocated to unvested share-based payments is excluded from net income allocated to common shares. Any undistributed losses resulting from dividends exceeding net income are not allocated to participating securities. We declared special dividends of $2.00 per share in 2014 and $1.00 per share in 2012. As a result, dividends exceeded earnings in both periods, which resulted in decreased earnings per share of $0.05 per share in 2014 and $0.01 per share in 2012. Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options. | |||||||||||||
The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net income | $ | 28,004 | $ | 32,032 | $ | 40,402 | |||||||
Less distributed and undistributed earnings allocated to participating securities | (2,002 | ) | (916 | ) | (1,224 | ) | |||||||
Net income allocated to common shares | $ | 26,002 | $ | 31,116 | $ | 39,178 | |||||||
Weighted average common shares outstanding | 24,708 | 24,850 | 25,007 | ||||||||||
Incremental shares from assumed conversions of common stock options | 4 | 22 | 60 | ||||||||||
Adjusted weighted average common shares outstanding | 24,712 | 24,872 | 25,067 | ||||||||||
Potentially dilutive securities not included in weighted average share | 4 | 8 | 29 | ||||||||||
calculation due to anti-dilutive effect |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Leases | |||||
13 | Leases | ||||
We lease various office facilities, equipment and vehicles under operating lease arrangements, some of which contain rent escalation clauses. Most of the leases contain purchase and/or renewal options at fair market and fair rental value, respectively. Rental expense relating to all operating leases was $13.4 million, $13.9 million and $13.8 million in 2014, 2013 and 2012, respectively. At December 31, 2014, future minimum rental payments under noncancelable operating leases are as follows: | |||||
Operating | |||||
Leases | |||||
(in thousands) | |||||
2015 | $ | 13,364 | |||
2016 | 11,821 | ||||
2017 | 8,534 | ||||
2018 | 6,822 | ||||
2019 | 4,189 | ||||
Thereafter | 5,312 | ||||
Total minimum lease payments | $ | 50,042 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | |||||
14 | Commitments and Contingencies | ||||
We enter into non-cancelable fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of advertising commitments and service contracts. At December 31, 2014, future non-cancelable purchase and service obligations greater than $100,000 and one year were as follows (in thousands): | |||||
2015 | $ | 10,224 | |||
2016 | 7,899 | ||||
2017 | 4,179 | ||||
2018 | 2,628 | ||||
2019 | 1,774 | ||||
Thereafter | 2,693 | ||||
Total obligations | $ | 29,397 | |||
We are a defendant in various lawsuits and claims arising in the normal course of business. Management believes it has valid defenses in these cases and is defending them vigorously. While the results of litigation cannot be predicted with certainty, except as set forth below, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations. | |||||
Federal Unemployment Taxes | |||||
Employers in certain states are experiencing higher Federal Unemployment Tax Act (“FUTA”) tax rates as a result of certain states not repaying their unemployment loans from the federal government in a timely manner. The Benefit Cost Ratio Add-On (“BCR”) is an additional tax on the FUTA wage base for employers in states that continue to have outstanding federal unemployment insurance loans beginning with the fifth year in which there is a balance due on the loan. States had the option to apply for a waiver before July 1 of the year in which the BCR is applicable. There are currently seven states with outstanding unemployment loans and of those, all but one, Connecticut, have filed and received a BCR waiver. Accordingly, the potential impact of the BCR on our financial statements is not material. | |||||
Texas Sales and Use Tax Assessments | |||||
In July 2008, we purchased a used aircraft (the “2008 Aircraft”) with the intent to immediately lease it to an aircraft charter service under 14 C.F.R. Part 135 (the “2008 Aircraft Purchase”). In connection with the 2008 Aircraft Purchase, we sought and received a letter ruling from the State of Texas Comptroller’s Tax Policy Division (the “Comptroller’s Ruling”). The Comptroller’s Ruling concluded that the 2008 Aircraft Purchase and lease qualified for the “sale for resale” exemption to sales and use taxes. In 2011, we purchased a used aircraft in a transaction that included the trade-in of the 2008 Aircraft with the intent to immediately lease the newly-purchased aircraft to the same aircraft charter service under Part 135 (“the 2011 Aircraft Purchase”). The structure of the 2011 Aircraft Purchase and lease transaction was patterned after the 2008 Aircraft Purchase. In accordance with the Comptroller’s Ruling, we did not pay sales or use tax on either the 2008 Aircraft Purchase or the 2011 Aircraft Purchase. | |||||
The Comptroller’s Office has since changed its view as expressed in the Comptroller’s Ruling and is now asserting that the 2008 Aircraft Purchase and the 2011 Aircraft Purchase are subject to sales and use tax. In May 2012, the Comptroller’s Office issued a notification of examination results regarding the 2008 Aircraft Purchase. It has assessed approximately $0.8 million in taxes but waived any claim for interest and did not assess any penalty. In a separate matter regarding the 2011 Aircraft Purchase, the Comptroller’s Office issued its notification of examination results in December 2013 and assessed approximately $0.9 million in taxes, penalties and interest. | |||||
We have filed requests for redetermination disputing both assessments and are seeking hearings concerning them. We believe the assessments are without merit and intend to vigorously contest them. At this time, we are unable to determine the ultimate outcome of these matters. However, in the event the State of Texas succeeds with enforcement of the assessments, we may be required to pay some or all of the assessments, which would reduce net income in the reported period. | |||||
Massachusetts Tax Assessment | |||||
During the fourth quarter of 2012, we received assessments of approximately $2.5 million, including interest and penalties, related to the alleged underpayment of corporate income taxes to the State of Massachusetts for tax years 2006 through 2008. We believe the assessments are without merit and intend to vigorously contest them. At this time, we are unable to determine the ultimate outcome of this matter. However, in the event the State of Massachusetts succeeds with enforcement of the assessments, we may be required to pay some or all of the assessments, which would reduce net income and could have a material adverse effect on net income in the reported period. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||
15 | Quarterly Financial Data (Unaudited) | |||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||
31-Mar | 30-Jun | Sept. 30 | Dec. 31 | |||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
Revenues | $ | 636,999 | $ | 564,621 | $ | 560,303 | $ | 595,865 | ||||||||||||||
Gross profit | 106,176 | 95,453 | 100,817 | 101,359 | ||||||||||||||||||
Operating income | 16,591 | 3,414 | (1) | 14,460 | 13,009 | (2) | ||||||||||||||||
Net income | 9,564 | 1,891 | 8,385 | 8,164 | ||||||||||||||||||
Basic net income per share | 0.37 | 0.07 | 0.33 | 0.27 | (3) | |||||||||||||||||
Diluted net income per share | 0.37 | 0.07 | 0.33 | 0.27 | (3) | |||||||||||||||||
2013 | ||||||||||||||||||||||
Revenues | $ | 611,836 | $ | 547,274 | $ | 539,869 | $ | 557,133 | ||||||||||||||
Gross profit | 108,118 | 97,746 | 97,409 | 89,978 | ||||||||||||||||||
Operating income | 22,009 | 10,228 | 17,112 | 6,874 | (4) | |||||||||||||||||
Net income | 13,173 | 3,488 | (5) | 10,082 | 5,289 | (6) | ||||||||||||||||
Basic net income per share | 0.51 | 0.14 | 0.39 | 0.21 | ||||||||||||||||||
Diluted net income per share | 0.51 | 0.14 | 0.39 | 0.21 | ||||||||||||||||||
____________________________________ | ||||||||||||||||||||||
(1) | Includes a non-cash impairment charge in the second quarter of 2014 of $2.5 million. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||||||||||||||
(2) | Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1 to the Consolidated Financial Statements, “Accounting Policies,” for additional information. | |||||||||||||||||||||
(3) | Includes the impact of dividends exceeding earnings under the two-class method, resulting in a $0.05 earnings per share decrease in the fourth quarter of 2014. Please read Note 12, “Net Income Per Share,” for additional information. | |||||||||||||||||||||
(4) | Includes a non-cash impairment charge in the fourth quarter of 2013 of $3.3 million. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||||||||||||||
(5) | Includes a non-cash impairment charge in the second quarter of 2013 of $2.7 million. Please read Note 6 to the Consolidated Financial Statements, “Other Assets,” for additional information. | |||||||||||||||||||||
(6) | Includes a $2.0 million tax benefit related to tax years 2009 through 2012. Please read Note 9 to the Consolidated Financial Statements, “Income Taxes,” for additional information. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Description of Business | Description of Business | ||||||||
Insperity, Inc. (“Insperity” or “we”, “our”, and “us”) provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Since our formation 28 years ago, we have evolved from being solely a professional employer organization (“PEO”), an industry we pioneered, to our current position as a comprehensive business performance solutions provider. We were organized as a corporation in 1986 and have provided PEO services since inception. | |||||||||
Our most comprehensive HR services offerings are provided through our Workforce Optimization® and Workforce Synchronization solutions (together, our “PEO HR Outsourcing solutions”), which encompass a broad range of human resources functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. | |||||||||
In addition to our PEO HR Outsourcing solutions, we offer Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial and Expense Management services, Retirement Services and Insurance Services, (collectively “Strategic Businesses,” formerly known as “Adjacent Businesses”), many of which are offered via desktop applications and cloud-based delivery models. These other products or services are offered separately, as a bundle, or along with PEO HR Outsourcing solutions. | |||||||||
We provide our PEO HR Outsourcing solutions by entering into a co-employment relationship with our clients, under which Insperity and its clients each take responsibility for certain portions of the employer-employee relationship. Insperity and its clients designate each party’s responsibilities through its Client Service Agreement (“CSA”), under which Insperity becomes the employer of the employees who work at the client’s location (“worksite employees”) for most administrative and regulatory purposes. | |||||||||
As a co-employer of its worksite employees, we assume many of the rights and obligations associated with being an employer. We enter into an employment agreement with each worksite employee, thereby maintaining a variety of employer rights, including the right to hire or terminate employees, the right to evaluate employee qualifications or performance, and the right to establish employee compensation levels. Typically, Insperity only exercises these rights in consultation with its clients or when necessary to ensure regulatory compliance. The responsibilities associated with our role as employer include the following obligations with regard to our worksite employees: (i) to compensate its worksite employees through wages and salaries; (ii) to pay the employer portion of payroll-related taxes; (iii) to withhold and remit (where applicable) the employee portion of payroll-related taxes; (iv) to provide employee benefit programs; and (v) to provide workers’ compensation insurance coverage. | |||||||||
In addition to our assumption of employer status for our worksite employees, our PEO HR Outsourcing solutions also include other human resources functions for our clients to support the effective and efficient use of personnel in their business operations. To provide these functions, we maintain a significant staff of professionals trained in a wide variety of human resources functions, including employee training, employee recruiting, employee performance management, employee compensation and employer liability management. These professionals interact and consult with clients on a daily basis to help identify each client’s service requirements and to ensure that we are providing appropriate and timely personnel management services. | |||||||||
Revenue and Direct Cost Recognition | Revenue and Direct Cost Recognition | ||||||||
We account for our PEO HR Outsourcing solutions revenues in accordance with Accounting Standards Codification (“ASC”) 605-45, Revenue Recognition, Principal Agent Considerations. Our PEO HR Outsourcing solutions revenues are primarily derived from our gross billings, which are based on (i) the payroll cost of its worksite employees; and (ii) a markup computed as a percentage of the payroll cost. The gross billings are invoiced concurrently with each periodic payroll of its worksite employees. Revenues, which exclude the payroll cost component of gross billings and therefore consist solely of markup, are recognized ratably over the payroll period as worksite employees perform their service at the client worksite. Revenues that have been recognized but not invoiced are included in unbilled accounts receivable on our Consolidated Balance Sheets. | |||||||||
In determining the pricing of the markup component of our gross billings, we take into consideration our estimates of the costs directly associated with our worksite employees, including payroll taxes, benefits and workers’ compensation costs, plus an acceptable gross profit margin. As a result, our operating results are significantly impacted by our ability to accurately estimate, control and manage our direct costs relative to the revenues derived from the markup component of our gross billings. | |||||||||
Consistent with our revenue recognition policy, our direct costs do not include the payroll cost of our worksite employees. Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our worksite employees, such as the employer portion of payroll-related taxes, employee benefit plan premiums and workers’ compensation insurance costs. | |||||||||
Segment Reporting | Segment Reporting | ||||||||
We operate one reportable segment under ASC 280, Segment Reporting. | |||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||
The Consolidated Financial Statements include the accounts of Insperity, Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | Use of Estimates | ||||||||
The preparation of financial statements in conformity with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk | ||||||||
Financial instruments that could potentially subject us to concentration of credit risk include accounts receivable and marketable securities. | |||||||||
Cash, Cash Equivalents and Marketable Securities | Cash, Cash Equivalents and Marketable Securities | ||||||||
We invest our excess cash in federal government and municipal-based money market funds and debt instruments of U.S. municipalities. All highly liquid investments with stated maturities of three months or less from date of purchase are classified as cash equivalents. Liquid investments with stated maturities of greater than three months are classified as marketable securities in current assets. | |||||||||
We account for marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. We determine the appropriate classification of all marketable securities as held-to-maturity, available-for-sale or trading at the time of purchase, and re-evaluate such classification as of each balance sheet date. At December 31, 2014 and 2013, all of our investments in marketable securities were classified as available-for-sale, and as a result, were reported at fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts from the date of purchase to maturity. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. We use the specific identification method of determining the cost basis in computing realized gains and losses on the sale of our available-for-sale securities. Realized gains and losses are included in other income. | |||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||
The carrying amounts of cash, cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturities of these instruments. | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment are recorded at cost and are depreciated over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: | |||||||||
Buildings and improvements | 5-30 years | ||||||||
Computer hardware and software | 1-5 years | ||||||||
Software development costs | 3-5 years | ||||||||
Furniture and fixtures | 5-7 years | ||||||||
Aircraft | 15-20 years | ||||||||
Software development costs relate primarily to software coding, system interfaces and testing of our proprietary professional employer information systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Capitalized software development costs are amortized using the straight-line method over the estimated useful lives of the software, generally three years. We recognized $4.1 million, $3.6 million and $2.8 million in amortization of capitalized computer software costs in 2014, 2013 and 2012, respectively. Unamortized computer software costs were $6.0 million and$7.2 million in 2014 and 2013, respectively. | |||||||||
We account for our software products in accordance with ASC 985-20, Costs of Software to be Sold. This Topic establishes standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased. | |||||||||
We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. | |||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||
Our purchased intangible assets are carried at cost less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, ranging from three to 10 years. | |||||||||
Our goodwill and intangible assets are subject to the provisions of ASC 350, Intangibles – Goodwill and Other. Accordingly, we perform our annual goodwill impairment testing as of December 31st of each calendar year or earlier if indicators of impairment exist on an interim basis. Step one of the impairment testing involves a comparison of the estimated fair value of a reporting unit to the related carrying value. Fair value is estimated using a discounted cash flow model. If the estimated fair value is less than its related carrying value, step two of the goodwill impairment test is completed, which involves allocating the estimated fair value of the reporting unit to individual assets and liabilities. If the carrying value of goodwill is greater than the estimated fair value, an impairment exists, which results in a write-down of the goodwill to the estimated fair value. Furthermore, ASC 350 requires purchased intangible assets other than goodwill to be amortized over their useful lives unless these lives are determined to be indefinite. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||
Health Insurance Costs | Health Insurance Costs | ||||||||
We provide group health insurance coverage to our worksite employees through a national network of carriers including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield, Unity Health Plan and Tufts, all of which provide fully insured policies or service contracts. | |||||||||
The policy with United provides the majority of our health insurance coverage. As a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Accordingly, we record the cost of the United portion of the plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense in the Consolidated Statements of Operations. The estimated incurred claims are based upon: (i) the level of claims processed during each quarter; (ii) estimated completion rates based upon recent claim development patterns under the plan; and (iii) the number of participants in the plan, including both active and COBRA enrollees. Each reporting period, changes in the estimated ultimate costs resulting from claim trends, plan design and migration, participant demographics and other factors are incorporated into the benefits costs. | |||||||||
Additionally, since the plan’s inception, under the terms of the contract, United establishes cash funding rates 90 days in advance of the beginning of a reporting quarter. If the Plan Costs for a reporting quarter are greater than the premiums paid and owed to United, a deficit in the plan would be incurred and a liability for the excess costs would be accrued in our Consolidated Balance Sheets. On the other hand, if the Plan Costs for the reporting quarter are less than the premiums paid and owed to United, a surplus in the plan would be incurred and we would record an asset for the excess premiums in our Consolidated Balance Sheets. The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $9.0 million, which is reported as long-term prepaid insurance. In addition, United requires a deposit equal to approximately | |||||||||
one day of claims funding activity, which was $3.5 million as of December 31, 2014, and is reported as a long-term asset. | |||||||||
As of December 31, 2014, Plan Costs were less than the net premiums paid and owed to United by $23.5 million. As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $14.5 million balance is included in prepaid insurance, a current asset, in our Consolidated Balance Sheets. The premiums owed to United at December 31, 2014, were $15.0 million, which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. | |||||||||
Workers' Compensation Costs | Workers’ Compensation Costs | ||||||||
Our workers’ compensation coverage has been provided through an arrangement with the ACE Group of Companies (“the ACE Program”) since 2007. The ACE Program is fully insured in that ACE has the responsibility to pay all claims incurred regardless of whether we satisfy our responsibilities. Under the ACE Program, we bear the economic burden for the first $1 million layer of claims per occurrence, and effective October 1, 2010, we also bear the economic burden for a maximum aggregate amount of $5 million per policy year for claim amounts that exceed the first $1 million. ACE bears the economic burden for all claims in excess of these levels. | |||||||||
Because we bear the economic burden for claims up to the levels noted above, such claims, which are the primary component of our workers’ compensation costs, are recorded in the period incurred. Workers’ compensation insurance includes ongoing health care and indemnity coverage whereby claims are paid over numerous years following the date of injury. Accordingly, the accrual of related incurred costs in each reporting period includes estimates, which take into account the ongoing development of claims and therefore requires a significant level of judgment. | |||||||||
We employ a third party actuary to estimate our loss development rate, which is primarily based upon the nature of worksite employees’ job responsibilities, the location of worksite employees, the historical frequency and severity of workers compensation claims, and an estimate of future cost trends. Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. During the years ended December 31, 2014 and 2013, we reduced accrued workers’ compensation costs by $2.9 million and $9.3 million, respectively, for changes in estimated losses related to prior reporting periods. Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S. Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rates utilized in 2014 and 2013 were 1.0% and 0.8%, respectively) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations. | |||||||||
The following table provides the activity and balances related to incurred but not reported workers’ compensation claims: | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 120,833 | $ | 111,685 | |||||
Accrued claims | 55,971 | 42,900 | |||||||
Present value discount | (1,998 | ) | (1,169 | ) | |||||
Paid claims | (38,718 | ) | (32,583 | ) | |||||
Ending balance | $ | 136,088 | $ | 120,833 | |||||
Current portion of accrued claims | $ | 44,040 | $ | 51,928 | |||||
Long-term portion of accrued claims | 92,048 | 68,905 | |||||||
$ | 136,088 | $ | 120,833 | ||||||
The current portion of accrued workers’ compensation costs at December 31, 2014 and 2013 includes $1.6 million and $1.0 million, respectively, of workers’ compensation administrative fees. | |||||||||
As of December 31, the undiscounted accrued workers’ compensation costs were $145.8 million in 2014 and $131.2 million in 2013. | |||||||||
At the beginning of each policy period, the insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”). The level of claim funds is primarily based upon anticipated worksite employee payroll levels and expected workers’ compensation loss rates, as determined by the insurance carrier. Monies funded into the program for incurred claims expected to be paid within one year are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits, a long-term asset in our Consolidated Balance Sheets. In 2014, we paid the insurance carrier an additional $7.2 million in claim funds for policy years prior to 2014, which increased deposits. As of December 31, 2014, we had restricted cash of $44.0 million and deposits of $113.9 million. | |||||||||
Our estimate of incurred claim costs expected to be paid within one year are recorded as accrued workers’ compensation costs and included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year are included in long-term liabilities on our Consolidated Balance Sheets. | |||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||
At December 31, 2014, we have two stock-based employee compensation plans under which we may issue awards. We account for these plans under the recognition and measurement principles of ASC 718, Compensation – Stock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. | |||||||||
We generally make annual grants of restricted and unrestricted stock under our stock-based incentive compensation plans to our directors, officers and other management. Restricted stock grants to officers and other management vest over three to five years from the date of grant. Restricted stock grants issued to directors upon their initial appointment to the board are one-third vested on each anniversary of the grant date. Annual stock grants issued to directors are 100% vested on the grant date. Shares of restricted stock are based on fair value on date of grant and the associated expense, net of estimated forfeitures, is recognized over the vesting period. | |||||||||
Company-Sponsored 401(k) Plans | Company-Sponsored 401(k) Plans | ||||||||
Under our 401(k) plan for corporate employees (the “Corporate Plan”), we matched 50% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2014, 2013 and 2012. Under our separate | |||||||||
401(k) plan for worksite employees (the “Worksite Employee Plan”), the match percentage for worksite employees ranges from 0% to 6%, as determined by each client company. Matching contributions under the Corporate Plan and the Worksite Employee Plan are immediately vested. During 2014, 2013 and 2012, we made matching contributions to the Corporate and Worksite Employee Plans of $81.5 million, $74.7 million and $65.9 million, respectively. Of these contributions, $78.4 million, $71.7 million and $63.3 million were made under the Worksite Employee Plan on behalf of worksite employees. The remainder represents matching contributions made under the Corporate Plan on behalf of corporate employees. | |||||||||
Advertising | Advertising | ||||||||
We expense all advertising costs as incurred. | |||||||||
Income Taxes | Income Taxes | ||||||||
We use the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amounts of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. | |||||||||
Reclassification, Policy | Reclassifications | ||||||||
Certain prior year amounts have been reclassified to conform to the 2014 presentation. | |||||||||
New Accounting Pronouncements | New Accounting Pronouncements | ||||||||
We believe that we have implemented the accounting pronouncements with a material impact on our financial statements. | |||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under ASU No. 2014-09, an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for annual reporting periods ending after December 15, 2016, and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU No. 2014-09. We are currently evaluating the guidance and have not determined the impact this standard may have on our Consolidated Financial Statements. |
Accounting_Policies_Tables
Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Estimated Useful Lives of Property and Equipment | Property and Equipment | ||||||||
Property and equipment are recorded at cost and are depreciated over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: | |||||||||
Buildings and improvements | 5-30 years | ||||||||
Computer hardware and software | 1-5 years | ||||||||
Software development costs | 3-5 years | ||||||||
Furniture and fixtures | 5-7 years | ||||||||
Aircraft | 15-20 years | ||||||||
Software development costs relate primarily to software coding, system interfaces and testing of our proprietary professional employer information systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Capitalized software development costs are amortized using the straight-line method over the estimated useful lives of the software, generally three years. We recognized $4.1 million, $3.6 million and $2.8 million in amortization of capitalized computer software costs in 2014, 2013 and 2012, respectively. Unamortized computer software costs were $6.0 million and$7.2 million in 2014 and 2013, respectively. | |||||||||
We account for our software products in accordance with ASC 985-20, Costs of Software to be Sold. This Topic establishes standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased. | |||||||||
We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. Due to a change in office consolidation plans, we recorded a $1.2 million non-cash charge related to office design fees. | |||||||||
Activity and Balances Related to Incurred But Not Paid Worker's Compensation Claims | The following table provides the activity and balances related to incurred but not reported workers’ compensation claims: | ||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Beginning balance | $ | 120,833 | $ | 111,685 | |||||
Accrued claims | 55,971 | 42,900 | |||||||
Present value discount | (1,998 | ) | (1,169 | ) | |||||
Paid claims | (38,718 | ) | (32,583 | ) | |||||
Ending balance | $ | 136,088 | $ | 120,833 | |||||
Current portion of accrued claims | $ | 44,040 | $ | 51,928 | |||||
Long-term portion of accrued claims | 92,048 | 68,905 | |||||||
$ | 136,088 | $ | 120,833 | ||||||
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities [Abstract] | |||||||||||||||||
Summary of investments in cash, cash equivalents and marketable securities | The following table summarizes our investments in cash equivalents and marketable securities held by investment managers and overnight investments: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Overnight holdings: | |||||||||||||||||
Money market funds (cash equivalents) | $ | 271,840 | $ | 192,040 | |||||||||||||
Investment holdings: | |||||||||||||||||
Money market funds (cash equivalents) | 14,125 | 42,913 | |||||||||||||||
Marketable securities | 28,631 | 46,340 | |||||||||||||||
314,596 | 281,293 | ||||||||||||||||
Cash held in demand accounts | 20,369 | 23,054 | |||||||||||||||
Outstanding checks | (29,878 | ) | (32,252 | ) | |||||||||||||
Total cash, cash equivalents and marketable securities | $ | 305,087 | $ | 272,095 | |||||||||||||
Cash and cash equivalents | $ | 276,456 | $ | 225,755 | |||||||||||||
Marketable securities | 28,631 | 46,340 | |||||||||||||||
$ | 305,087 | $ | 272,095 | ||||||||||||||
Summary of fair value measurements of financial assets | The following tables summarize the levels of fair value measurements of our financial assets: | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
(in thousands) | |||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2014 | |||||||||||||||||
Money market funds | $ | 285,965 | $ | 285,965 | $ | — | $ | — | |||||||||
Municipal bonds | 28,631 | — | 28,631 | — | |||||||||||||
Total | $ | 314,596 | $ | 285,965 | $ | 28,631 | $ | — | |||||||||
Fair Value Measurements | |||||||||||||||||
(in thousands) | |||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Money market funds | $ | 234,953 | $ | 234,953 | $ | — | $ | — | |||||||||
Municipal bonds | 46,340 | — | 46,340 | — | |||||||||||||
Total | $ | 281,293 | $ | 234,953 | $ | 46,340 | $ | — | |||||||||
Summary of available-for-sale securities | The following is a summary of our available-for-sale marketable securities: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Municipal bonds | $ | 28,626 | $ | 16 | $ | (11 | ) | $ | 28,631 | ||||||||
31-Dec-13 | |||||||||||||||||
Municipal bonds | $ | 46,290 | $ | 51 | $ | (1 | ) | $ | 46,340 | ||||||||
Contractual maturities of marketable securities | As of December 31, 2014, the contractual maturities of our marketable securities were as follows: | ||||||||||||||||
Amortized | Estimated | ||||||||||||||||
Cost | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Less than one year | $ | 12,728 | $ | 12,737 | |||||||||||||
One to five years | 15,898 | 15,894 | |||||||||||||||
Total | $ | 28,626 | $ | 28,631 | |||||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable Additional Disclosures [Abstract] | |||||||||
Unbilled accounts receivable | We make an accrual at the end of each accounting period for our obligations associated with the earned but unpaid wages of our worksite employees and for the accrued gross billings associated with such wages. These accruals are included in accrued worksite employee payroll cost and unbilled accounts receivable; however, these amounts are presented net in the Consolidated Statements of Operations. We generally require clients to pay invoices for service fees no later than one day prior to the applicable payroll date. As such, we generally do not require collateral. Client prepayments directly attributable to unbilled accounts receivable have been netted against such receivables as the gross billings have been earned and the payroll cost has been incurred, thus we have the legal right of offset for these amounts. Unbilled accounts receivable consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued worksite employee payroll cost | $ | 192,396 | $ | 173,801 | |||||
Unbilled revenues | 55,645 | 50,286 | |||||||
Customer prepayments | (87,887 | ) | (24,459 | ) | |||||
Unbilled accounts receivable | $ | 160,154 | $ | 199,628 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents the gross carrying amount and accumulated amortization for each class of intangible assets and the gross carrying amount and accumulated impairment for goodwill: | ||||||||||||||||
31-Dec-13 | Twelve Months Ended | 31-Dec-14 | |||||||||||||||
December 31, 2014 | |||||||||||||||||
Balance | Impairment | Amortization Expense | Balance | ||||||||||||||
(in thousands) | |||||||||||||||||
Gross carrying amount: | |||||||||||||||||
Trademarks | $ | 1,230 | $ | (1,010 | ) | $ | — | $ | 220 | ||||||||
Customer relationships | 7,784 | (1,392 | ) | — | 6,392 | ||||||||||||
Aggregate goodwill acquired: | |||||||||||||||||
Goodwill | 21,156 | — | — | 21,156 | |||||||||||||
Total | $ | 30,170 | $ | (2,402 | ) | $ | — | $ | 27,768 | ||||||||
Accumulated amortization: | |||||||||||||||||
Trademarks | $ | (680 | ) | $ | 695 | $ | (77 | ) | $ | (62 | ) | ||||||
Customer relationships | (4,340 | ) | 976 | (1,415 | ) | (4,779 | ) | ||||||||||
Accumulated impairment: | |||||||||||||||||
Goodwill | (6,716 | ) | (1,754 | ) | — | (8,470 | ) | ||||||||||
Total | $ | (11,736 | ) | $ | (83 | ) | $ | (1,492 | ) | $ | (13,311 | ) | |||||
Net carrying amount: | |||||||||||||||||
Trademarks | $ | 550 | $ | (315 | ) | $ | (77 | ) | $ | 158 | |||||||
Customer relationships | 3,444 | (416 | ) | (1,415 | ) | 1,613 | |||||||||||
Goodwill | 14,440 | (1,754 | ) | — | 12,686 | ||||||||||||
Total goodwill and other intangible assets | $ | 18,434 | $ | (2,485 | ) | $ | (1,492 | ) | $ | 14,457 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Significant components of net deferred tax assets and net deferred tax liabilities | Significant components of the net deferred tax assets and net deferred tax liabilities as reflected on the Consolidated Balance Sheets are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid assets | $ | (9,291 | ) | $ | (5,084 | ) | |||||||
Depreciation | (8,083 | ) | (8,937 | ) | |||||||||
Software development costs | (2,252 | ) | (2,739 | ) | |||||||||
Total deferred tax liabilities | (19,626 | ) | (16,760 | ) | |||||||||
Deferred tax assets: | |||||||||||||
Accrued incentive compensation | 7,204 | 3,909 | |||||||||||
Net operating loss carryforward | 1,556 | 1,773 | |||||||||||
Workers’ compensation accruals | 6,308 | 5,568 | |||||||||||
Accrued rent | 1,058 | 1,008 | |||||||||||
Stock-based compensation | 3,615 | 3,742 | |||||||||||
Intangibles | 1,575 | 837 | |||||||||||
Minority investment impairment | 1,003 | 991 | |||||||||||
Other | 551 | 412 | |||||||||||
Total deferred tax assets | 22,870 | 18,240 | |||||||||||
Valuation allowance | (1,003 | ) | (991 | ) | |||||||||
Total net deferred tax assets | 21,867 | 17,249 | |||||||||||
Net deferred tax assets | $ | 2,241 | $ | 489 | |||||||||
Net current deferred tax assets | $ | 6,316 | $ | 8,185 | |||||||||
Net noncurrent deferred tax liabilities | (4,075 | ) | (7,696 | ) | |||||||||
$ | 2,241 | $ | 489 | ||||||||||
Components of income tax expense | The components of income tax expense are as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current income tax expense: | |||||||||||||
Federal | $ | 18,034 | $ | 20,476 | $ | 29,280 | |||||||
State | 3,322 | 3,512 | 4,351 | ||||||||||
Total current income tax expense | 21,356 | 23,988 | 33,631 | ||||||||||
Deferred income tax (benefit) expense: | |||||||||||||
Federal | (1,764 | ) | (2,258 | ) | (5,363 | ) | |||||||
State | 31 | (30 | ) | (380 | ) | ||||||||
Total deferred income tax benefit | (1,733 | ) | (2,288 | ) | (5,743 | ) | |||||||
Total income tax expense | $ | 19,623 | $ | 21,700 | $ | 27,888 | |||||||
Reconciliation of income tax expense | The reconciliation of income tax expense computed at U.S. federal statutory tax rates to the reported income tax expense from continuing operations is as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expected income tax expense at 35% | $ | 16,670 | $ | 18,806 | $ | 23,901 | |||||||
State income taxes, net of federal benefit | 2,204 | 2,286 | 2,497 | ||||||||||
Nondeductible expenses | 1,939 | 1,993 | 1,663 | ||||||||||
Section 199 benefits | (592 | ) | (2,531 | ) | — | ||||||||
Expense Management non-cash impairment | — | 797 | — | ||||||||||
Valuation allowance related to TRE impairment | — | 938 | — | ||||||||||
Research and development credit | (455 | ) | (534 | ) | — | ||||||||
Other, net | (143 | ) | (55 | ) | (173 | ) | |||||||
Reported total income tax expense | $ | 19,623 | $ | 21,700 | $ | 27,888 | |||||||
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||||||
QuarterlydividendsdeclaredTableTextBlock [Table Text Block] | Dividends | ||||||||
The Board declared quarterly dividends in 2014 and 2013 as follows: | |||||||||
2014 | 2013 | ||||||||
(amounts per share) | |||||||||
First quarter | $ | 0.17 | $ | 0.17 | |||||
Second quarter | 0.19 | 0.17 | |||||||
Third quarter | 0.19 | 0.17 | |||||||
Fourth quarter | 2.19 | (1) | 0.17 | ||||||
____________________________________ | |||||||||
(1) Includes a $2.00 per share special dividend | |||||||||
Incentive_Plans_Tables
Incentive Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Summary of stock option award activity | The following is a summary of stock option award activity for 2014: | |||||||||||||
Shares | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||
Outstanding - December 31, 2013 | 61 | $ | 24.24 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (18 | ) | 15.28 | |||||||||||
Canceled | — | — | ||||||||||||
Outstanding - December 31, 2014 | 43 | 28.04 | 5.3 | $ | 253 | |||||||||
Exercisable - December 31, 2014 | 43 | 28.04 | 5.3 | $ | 253 | |||||||||
Summary of restricted stock awards activity | The following is a summary of restricted stock award activity for 2014: | |||||||||||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
(in thousands) | ||||||||||||||
Non-vested - December 31, 2013 | 740 | $ | 29.66 | |||||||||||
Granted | 410 | 28.22 | ||||||||||||
Vested | (382 | ) | 29.79 | |||||||||||
Canceled/Forfeited | (28 | ) | 28.45 | |||||||||||
Non-vested - December 31, 2014 | 740 | 28.84 | ||||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Summary of the net income allocated to common shares and the basic and diluted shares used in the net income per share computations | The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net income | $ | 28,004 | $ | 32,032 | $ | 40,402 | |||||||
Less distributed and undistributed earnings allocated to participating securities | (2,002 | ) | (916 | ) | (1,224 | ) | |||||||
Net income allocated to common shares | $ | 26,002 | $ | 31,116 | $ | 39,178 | |||||||
Weighted average common shares outstanding | 24,708 | 24,850 | 25,007 | ||||||||||
Incremental shares from assumed conversions of common stock options | 4 | 22 | 60 | ||||||||||
Adjusted weighted average common shares outstanding | 24,712 | 24,872 | 25,067 | ||||||||||
Potentially dilutive securities not included in weighted average share | 4 | 8 | 29 | ||||||||||
calculation due to anti-dilutive effect |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Future minimum rental payments under non cancelable operating leases | We lease various office facilities, equipment and vehicles under operating lease arrangements, some of which contain rent escalation clauses. Most of the leases contain purchase and/or renewal options at fair market and fair rental value, respectively. Rental expense relating to all operating leases was $13.4 million, $13.9 million and $13.8 million in 2014, 2013 and 2012, respectively. At December 31, 2014, future minimum rental payments under noncancelable operating leases are as follows: | ||||
Operating | |||||
Leases | |||||
(in thousands) | |||||
2015 | $ | 13,364 | |||
2016 | 11,821 | ||||
2017 | 8,534 | ||||
2018 | 6,822 | ||||
2019 | 4,189 | ||||
Thereafter | 5,312 | ||||
Total minimum lease payments | $ | 50,042 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future non-cancelable purchase and service obligations | We enter into non-cancelable fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of advertising commitments and service contracts. At December 31, 2014, future non-cancelable purchase and service obligations greater than $100,000 and one year were as follows (in thousands): | ||||
2015 | $ | 10,224 | |||
2016 | 7,899 | ||||
2017 | 4,179 | ||||
2018 | 2,628 | ||||
2019 | 1,774 | ||||
Thereafter | 2,693 | ||||
Total obligations | $ | 29,397 | |||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Quarterly Financial Data | ||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||
31-Mar | 30-Jun | Sept. 30 | Dec. 31 | |||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
Revenues | $ | 636,999 | $ | 564,621 | $ | 560,303 | $ | 595,865 | ||||||||||||||
Gross profit | 106,176 | 95,453 | 100,817 | 101,359 | ||||||||||||||||||
Operating income | 16,591 | 3,414 | (1) | 14,460 | 13,009 | (2) | ||||||||||||||||
Net income | 9,564 | 1,891 | 8,385 | 8,164 | ||||||||||||||||||
Basic net income per share | 0.37 | 0.07 | 0.33 | 0.27 | (3) | |||||||||||||||||
Diluted net income per share | 0.37 | 0.07 | 0.33 | 0.27 | (3) | |||||||||||||||||
2013 | ||||||||||||||||||||||
Revenues | $ | 611,836 | $ | 547,274 | $ | 539,869 | $ | 557,133 | ||||||||||||||
Gross profit | 108,118 | 97,746 | 97,409 | 89,978 | ||||||||||||||||||
Operating income | 22,009 | 10,228 | 17,112 | 6,874 | (4) | |||||||||||||||||
Net income | 13,173 | 3,488 | (5) | 10,082 | 5,289 | (6) | ||||||||||||||||
Basic net income per share | 0.51 | 0.14 | 0.39 | 0.21 | ||||||||||||||||||
Diluted net income per share | 0.51 | 0.14 | 0.39 | 0.21 | ||||||||||||||||||
____________________________________ | ||||||||||||||||||||||
(1) | Includes a non-cash impairment charge in the second quarter of 2014 of $2.5 million. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||||||||||||||
(2) | Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1 to the Consolidated Financial Statements, “Accounting Policies,” for additional information. | |||||||||||||||||||||
(3) | Includes the impact of dividends exceeding earnings under the two-class method, resulting in a $0.05 earnings per share decrease in the fourth quarter of 2014. Please read Note 12, “Net Income Per Share,” for additional information. | |||||||||||||||||||||
(4) | Includes a non-cash impairment charge in the fourth quarter of 2013 of $3.3 million. Please read Note 5, “Goodwill and Other Intangible Assets,” for additional information. | |||||||||||||||||||||
(5) | Includes a non-cash impairment charge in the second quarter of 2013 of $2.7 million. Please read Note 6 to the Consolidated Financial Statements, “Other Assets,” for additional information. | |||||||||||||||||||||
(6) | Includes a $2.0 million tax benefit related to tax years 2009 through 2012. Please read Note 9 to the Consolidated Financial Statements, “Income Taxes,” for additional information. |
Accounting_Policies_Details
Accounting Policies (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2010 | Sep. 30, 2010 | |
Description of Business [Abstract] | |||||
Number of years transition to comprehensive business performance solutions provider | 28 years | ||||
Segment Reporting [Abstract] | |||||
Number of reportable segments | 1 | ||||
Property, Plant and Equipment [Abstract] | |||||
Amortization of capitalized computer software costs | $4,100,000 | $3,600,000 | $2,800,000 | ||
Unamortized computer software costs | 6,000,000 | 7,200,000 | |||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Asset Impairment Charges | 1,200,000 | ||||
Health Insurance Costs [Abstract] | |||||
Number of days cash in advance of beginning of reporting quarter United establishes cash funding rates | 90 days | ||||
Prepaid health insurance | 9,000,000 | 9,000,000 | |||
Required deposit for health care costs | 3,500,000 | ||||
Amount which Plan Costs were less than the net premiums paid and owed | 23,500,000 | ||||
Prepaid health insurance, current | 14,500,000 | ||||
Premiums owed to United | 15,000,000 | ||||
Workers' Compensation Costs [Abstract] | |||||
Company's maximum economic burden for the first layer of claims per occurrence | 1,000,000 | ||||
Company's maximum aggregate economic burden for claims in excess of $1 million per policy year | 5,000,000 | ||||
Reduction in accrued workers' compensation costs for changes in estimated losses | 2,900,000 | 9,300,000 | |||
U.S. Treasury rates that correspond with the weighted average estimated claim payout period (in hundredths) | 1.00% | 0.80% | |||
Incurred but not paid workers' compensation liabilities | |||||
Beginning balance | 120,833,000 | 111,685,000 | |||
Accrued claims | 55,971,000 | 42,900,000 | |||
Present value discount | -1,998,000 | -1,169,000 | |||
Paid claims | -38,718,000 | -32,583,000 | |||
Ending balance | 136,088,000 | 120,833,000 | 111,685,000 | ||
Current portion of accrued claims | 44,040,000 | 51,928,000 | |||
Long-term portion of accrued claims | 92,048,000 | 68,905,000 | |||
Ending Balance | 136,088,000 | 120,833,000 | 111,685,000 | ||
Current portion of workers' compensation administrative fees accrued | 1,600,000 | 1,000,000 | |||
Undiscounted accrued workers' compensation costs | 145,800,000 | 131,200,000 | |||
Time period incurred claims expected to be paid recorded as restricted cash | 1 year | ||||
Time period incurred claims expected to be paid, included in deposits, a long-term asset | Greater than 1 year | ||||
Additional claim funds paid related to ACE Program | 7,200,000 | ||||
Restricted Cash and Cash Equivalents, Current | 44,040,000 | 51,928,000 | |||
Deposits - workers' compensation | 113,934,000 | 81,878,000 | |||
Time period estimate of incurred claim costs to be paid included in short term liabilities | 1 year | ||||
Time period incurred claims expected to be paid, included in long-term liabilities | Greater than 1 year | ||||
Stock-Based Compensation [Abstract] | |||||
Number of stock-based employee compensation plans | 2 | ||||
Vesting period for Initial grants to new members of the Board of Directors | 3 years | ||||
Vesting period for officers and other management to be eligible for restricted stock grants, minimum | 3 years | ||||
Vesting period for officers and other management to be eligible for restricted stock grants, maximum | 5 years | ||||
Percentage of annual grants issued to directors that are vested (in hundredths) | 100.00% | ||||
Worksite Employees [Member] | |||||
Company-Sponsored 401 (k) Plans [Abstract] | |||||
Percentage of eligible compensation matched, minimum (in hundredths) | 0.00% | ||||
Percentage of eligible compensation matched, maximum (in hundredths) | 6.00% | ||||
Matching contributions to the Plans | 78,400,000 | 71,700,000 | 63,300,000 | ||
Corporate Employees [Member] | |||||
Company-Sponsored 401 (k) Plans [Abstract] | |||||
Percentage match of eligible corporate employees' contributions (in hundredths) | 50.00% | ||||
Percentage of eligible compensation matched, minimum (in hundredths) | 0.00% | ||||
Percentage of eligible compensation matched, maximum (in hundredths) | 6.00% | ||||
Corporate Plan and Worksite Employee Plan [Member] | |||||
Company-Sponsored 401 (k) Plans [Abstract] | |||||
Matching contributions to the Plans | $81,500,000 | $74,700,000 | $65,900,000 | ||
Minimum [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Maximum [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Buildings and Improvements [Member] | Minimum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 5 years | ||||
Buildings and Improvements [Member] | Maximum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 30 years | ||||
Computer Hardware and Software and Acquired Technologies [Member] | Minimum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 1 year | ||||
Computer Hardware and Software and Acquired Technologies [Member] | Maximum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 5 years | ||||
Software Development Costs [Member] | Minimum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 3 years | ||||
Software Development Costs [Member] | Maximum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 5 years | ||||
Furniture and Fixtures [Member] | Minimum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 5 years | ||||
Furniture and Fixtures [Member] | Maximum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 7 years | ||||
Aircraft [Member] | Minimum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 15 years | ||||
Aircraft [Member] | Maximum [Member] | |||||
Property and Equipment, Estimated Useful Lives [Abstract] | |||||
Estimated useful lives of property and equipment | 20 years |
Cash_Cash_Equivalents_and_Mark2
Cash, Cash Equivalents and Marketable Securities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Available-for-sale Securities [Abstract] | ||||
Amortized Cost | $28,626,000 | $46,290,000 | ||
Gross Unrealized Gains | 16,000 | 51,000 | ||
Gross Unrealized Losses | -11,000 | -1,000 | ||
Fair Value | 28,631,000 | 46,340,000 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||||
Less than one year | 12,728,000 | |||
One to five years | 15,898,000 | |||
Amortized cost | 28,626,000 | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Less than one year | 12,737,000 | |||
One to five years | 15,894,000 | |||
Fair Value | 28,631,000 | 46,340,000 | ||
Overnight holdings: | ||||
Money market funds (cash equivalents) | 271,840,000 | 192,040,000 | ||
Investment holdings: | ||||
Money market funds (cash equivalents) | 14,125,000 | 42,913,000 | ||
Marketable securities | 28,631,000 | 46,340,000 | ||
Total cash equivalents and marketable securities | 314,596,000 | 281,293,000 | ||
Cash held in demand accounts | 20,369,000 | 23,054,000 | ||
Outstanding checks | -29,878,000 | -32,252,000 | ||
Total cash, cash equivalents and marketable securities | 305,087,000 | 272,095,000 | ||
Cash and cash equivalents | 276,456,000 | 225,755,000 | 264,544,000 | 211,208,000 |
Marketable securities | 28,631,000 | 46,340,000 | ||
Withholding associated with federal and state income taxes, employment taxes and other payroll deductions included in cash balance | 152,100,000 | 143,000,000 | ||
Customer prepayments included in cash balance | 87,887,000 | 24,459,000 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 285,965,000 | 234,953,000 | ||
Fair Value | 28,631,000 | 46,340,000 | ||
Total | 314,596,000 | 281,293,000 | ||
Level 1 [Member] | ||||
Available-for-sale Securities [Abstract] | ||||
Fair Value | 0 | 0 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Fair Value | 0 | 0 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 285,965,000 | 234,953,000 | ||
Fair Value | 0 | 0 | ||
Total | 285,965,000 | 234,953,000 | ||
Level 2 [Member] | ||||
Available-for-sale Securities [Abstract] | ||||
Fair Value | 28,631,000 | 46,340,000 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Fair Value | 28,631,000 | 46,340,000 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 0 | 0 | ||
Fair Value | 28,631,000 | 46,340,000 | ||
Total | 28,631,000 | 46,340,000 | ||
Level 3 [Member] | ||||
Available-for-sale Securities [Abstract] | ||||
Fair Value | 0 | 0 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Fair Value | 0 | 0 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 0 | 0 | ||
Fair Value | 0 | 0 | ||
Total | $0 | $0 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Receivable Additional Disclosures [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $1,200,000 | $900,000 |
Accounts receivable, due date prior to applicable payroll date | 1 day | |
Unbilled accounts receivable [Abstract] | ||
Accrued worksite employee payroll cost | 192,396,000 | 173,801,000 |
Unbilled revenues | 55,645,000 | 50,286,000 |
Customer prepayments | -87,887,000 | -24,459,000 |
Unbilled accounts receivable | $160,154,000 | $199,628,000 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Prepaid health insurance | $9,000 | $9,000 |
Deposits – health insurance | 3,700 | 3,700 |
Deposits – workers’ compensation | $113,934 | $81,878 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill and Other Intangibles Impairment | ($2,485,000) | ||
Goodwill and Intangible Asset Impairment | 2,485,000 | 4,191,000 | |
Impairment charges | 3,687,000 | 3,342,000 | 4,191,000 |
Gross Carrying Amount [Roll Forward] | |||
Goodwill and Other Intangibles Impairment, gross | -2,402,000 | ||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||
Beg Bal Total gross carrying amount and aggregate goodwill acquired | 30,170,000 | ||
Goodwill and Other Intangibles Impairment, gross | -2,402,000 | ||
End Bal Total gross carrying amount and aggregate goodwill acquired | 27,768,000 | 30,170,000 | |
Accumulated amortization [Abstract] | |||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | -83,000 | ||
Amortization Expense | -1,492,000 | -2,000,000 | -1,800,000 |
Total accumulated amortization and accumulated impairment [Abstract] | |||
Beg Bal Total accumulated amortization and accumulated impairment | -11,736,000 | ||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | -83,000 | ||
Amortization Expense | -1,492,000 | -2,000,000 | -1,800,000 |
End Bal Total accumulated amortization and accumulated impairment | -13,311,000 | -11,736,000 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Amortization Expense | -1,492,000 | -2,000,000 | -1,800,000 |
Beg Bal Goodwill and other intangible assets, net | 18,434,000 | ||
Goodwill and Other Intangibles Impairment | -2,485,000 | ||
End Bal Goodwill and other intangible assets, net | 14,457,000 | 18,434,000 | |
Amortization [Abstract] | |||
Amortization expense related to purchased intangible assets | -1,492,000 | -2,000,000 | -1,800,000 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 900,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 500,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 326,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 36,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 19,000 | ||
Trademarks [Member] | |||
Gross Carrying Amount [Roll Forward] | |||
Beg Bal Finite-Lived Intangible Assets, Gross | 1,230,000 | ||
Goodwill and Other Intangibles Impairment, gross | -1,010,000 | ||
End Bal Finite-Lived Intangible Assets, Gross | 220,000 | ||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||
Goodwill and Other Intangibles Impairment, gross | -1,010,000 | ||
Accumulated amortization [Abstract] | |||
Beg Bal Finite-Lived Intangible Assets, Accumulated Amortization | -680,000 | ||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 695,000 | ||
Amortization Expense | -77,000 | ||
End Bal Finite-Lived Intangible Assets, Accumulated Amortization | -62,000 | ||
Total accumulated amortization and accumulated impairment [Abstract] | |||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 695,000 | ||
Amortization Expense | -77,000 | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Beg Bal Intangible Assets, Net (Excluding Goodwill) | 550,000 | ||
Impairment of Intangible Assets (Excluding Goodwill) | -315,000 | ||
Amortization Expense | -77,000 | ||
End Bal Intangible Assets, Net (Excluding Goodwill) | 158,000 | ||
Amortization [Abstract] | |||
Amortization expense related to purchased intangible assets | -77,000 | ||
Customer Relationships [Member] | |||
Gross Carrying Amount [Roll Forward] | |||
Beg Bal Finite-Lived Intangible Assets, Gross | 7,784,000 | ||
Goodwill and Other Intangibles Impairment, gross | -1,392,000 | ||
End Bal Finite-Lived Intangible Assets, Gross | 6,392,000 | ||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||
Goodwill and Other Intangibles Impairment, gross | -1,392,000 | ||
Accumulated amortization [Abstract] | |||
Beg Bal Finite-Lived Intangible Assets, Accumulated Amortization | -4,340,000 | ||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 976,000 | ||
Amortization Expense | -1,415,000 | ||
End Bal Finite-Lived Intangible Assets, Accumulated Amortization | -4,779,000 | ||
Total accumulated amortization and accumulated impairment [Abstract] | |||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 976,000 | ||
Amortization Expense | -1,415,000 | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Beg Bal Intangible Assets, Net (Excluding Goodwill) | 3,444,000 | ||
Impairment of Intangible Assets (Excluding Goodwill) | -416,000 | ||
Amortization Expense | -1,415,000 | ||
End Bal Intangible Assets, Net (Excluding Goodwill) | 1,613,000 | ||
Amortization [Abstract] | |||
Amortization expense related to purchased intangible assets | -1,415,000 | ||
Goodwill [Member] | |||
Aggregrate goodwill acquired [Roll Forward] | |||
Beg Bal Goodwill, Gross | 21,156,000 | ||
End Bal Goodwill, Gross | 21,156,000 | ||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Beg Bal Goodwill, Impaired, Accumulated Impairment Loss | -6,716,000 | ||
Goodwill, Impairment Loss | -1,754,000 | ||
End Bal Goodwill, Impaired, Accumulated Impairment Loss | -8,470,000 | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||
Beg Bal Goodwill, net balance | 14,440,000 | ||
Goodwill, Impairment Loss | -1,754,000 | ||
End Bal Goodwill, net balance | $12,686,000 |
Other_Assets_Details
Other Assets (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2011 |
Other Assets [Abstract] | ||
Cost Method Investments | $2.80 | |
TRE Impairment | $2.70 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Human Concepts [Member] | |
Business Acquisition [Line Items] | |
Current year or prior year payment based on terms of the agreement | $1.20 |
Galaxy Technologies, Inc. [Member] | |
Business Acquisition [Line Items] | |
Current year or prior year payment based on terms of the agreement | $1.40 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2012 | Feb. 06, 2015 | |
Line of Credit Facility [Line Items] | |||
Term of revolving credit facility (in years) | 4 years | ||
Line of credit facility | $100,000,000 | ||
Maximum borrowing capacity | 150,000,000 | ||
Percentage of subsidiary stock securing debt (in hundredths) | 65.00% | ||
Unused commitment fee on the average daily unused portion (in hundredths) | 0.25% | ||
Letters of Credit Outstanding, Amount | 600,000 | ||
Special dividend | 50,664,000 | 25,700,000 | |
Alternate base rates, applicable margins [Abstract] | |||
Applicable margin, federal funds rate (in hundredths) | 0.50% | ||
Applicable margin, 30-day LIBOR (in hundredths) | 2.00% | ||
Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility | $125,000,000 | ||
LIBOR Borrowings [Member] | |||
Line of Credit Facility [Line Items] | |||
Description of basis for variable rate | LIBOR | ||
Applicable margin on variable rate on borrowings, minimum (in hundredths) | 2.00% | ||
Applicable margin on variable rate on borrowings, maximum (in hundredths) | 2.75% | ||
Alternate Base Rate Borrowings [Member] | |||
Line of Credit Facility [Line Items] | |||
Description of basis for variable rate | alternate base rate | ||
Applicable margin on variable rate on borrowings, minimum (in hundredths) | 0.00% | ||
Applicable margin on variable rate on borrowings, maximum (in hundredths) | 0.75% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax liabilities: | |||
Prepaid assets | ($9,291,000) | ($5,084,000) | |
Depreciation | -8,083,000 | -8,937,000 | |
Software development costs | -2,252,000 | -2,739,000 | |
Total deferred tax liabilities | -19,626,000 | -16,760,000 | |
Deferred tax assets: | |||
Accrued incentive compensation | 7,204,000 | 3,909,000 | |
Net operating loss carryforward | 1,556,000 | 1,773,000 | |
Workers’ compensation accruals | 6,308,000 | 5,568,000 | |
Accrued rent | 1,058,000 | 1,008,000 | |
Stock-based compensation | 3,615,000 | 3,742,000 | |
Intangibles | 1,575,000 | 837,000 | |
Minority investment impairment | 1,003,000 | 991,000 | |
Other | 551,000 | 412,000 | |
Total deferred tax assets | 22,870,000 | 18,240,000 | |
Valuation allowance | -1,003,000 | -991,000 | |
Total net deferred tax assets | 21,867,000 | 17,249,000 | |
Net deferred tax assets | 2,241,000 | 489,000 | |
Net current deferred tax assets | 6,316,000 | 8,185,000 | |
Net noncurrent deferred tax liabilities | -4,075,000 | -7,696,000 | |
Current income tax expense: | |||
Federal | 18,034,000 | 20,476,000 | 29,280,000 |
State | 3,322,000 | 3,512,000 | 4,351,000 |
Total current income tax expense | 21,356,000 | 23,988,000 | 33,631,000 |
Deferred income tax (benefit) expense: | |||
Federal | -1,764,000 | -2,258,000 | -5,363,000 |
State | 31,000 | -30,000 | -380,000 |
Total deferred income tax benefit | -1,733,000 | -2,288,000 | -5,743,000 |
Total income tax expense | 19,623,000 | 21,700,000 | 27,888,000 |
Net income tax expense (benefit) on nonqualified stock option exercises | 488,000 | 1,259,000 | 1,751,000 |
Reconciliation of income tax expense [Abstract] | |||
Assumed income tax rate (in hundredths) | 35.00% | ||
Expected income tax expense at 35% | 16,670,000 | 18,806,000 | 23,901,000 |
State income taxes, net of federal benefit | 2,204,000 | 2,286,000 | 2,497,000 |
Nondeductible expenses | 1,939,000 | 1,993,000 | 1,663,000 |
Section 199 benefits | -592,000 | -2,531,000 | 0 |
Expense Management non-cash impairment | 0 | 797,000 | 0 |
Valuation allowance related to TRE impairment | 0 | 938,000 | 0 |
Research and development credit | -455,000 | -534,000 | 0 |
Other, net | -143,000 | -55,000 | -173,000 |
Total income tax expense | 19,623,000 | 21,700,000 | 27,888,000 |
Business Acquisition [Line Items] | |||
Section 199 tax benefits for the tax year 2013 | 530,000 | ||
Section 199 Tax Benefits for Tax Years 2009 to 2012 | 2,000,000 | ||
Liability for Uncertain Tax Positions, Current | 0 | 0 | 0 |
ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Operating Loss Carryforwards | $4,200,000 | ||
Minimum [Member] | ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforwards, expiration date | 1-Jan-23 | ||
Maximum [Member] | ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforwards, expiration date | 1-Jan-30 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders' Equity Note [Abstract] | ||||||||||||
Authorized number of shares to be repurchased (in shares) | 15,500,000 | 15,500,000 | ||||||||||
Repurchase of treasury stock (in shares) | 580,804 | 479,903 | ||||||||||
Shares withheld for tax withholding obligations for the vesting of restricted stock awards (in shares) | 112,458 | 116,931 | ||||||||||
Remaining number of shares authorized to be repurchased (in shares) | 768,765 | 768,765 | ||||||||||
Payments of Dividends [Abstract] | ||||||||||||
Dividends declared per share of common stock (in dollars per share) | $0.19 | $0.19 | $0.19 | $0.17 | $0.17 | $0.17 | $0.17 | $0.17 | ||||
Special dividends declared, per share of commong stock (in dollars per share) | $2 | |||||||||||
Total regular and special quarterly dIvidend declared, per share of common stock (in dollars per share) | $2.19 | [1] | ||||||||||
Payments of Ordinary Dividends, Common Stock | $69,493 | $17,386 | $42,728 | |||||||||
Special dividend | 50,664 | 25,700 | ||||||||||
Total Dividends Paid, Ordinary and Special | $69,493 | |||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||
Common stock purchase right per preferred stock share (in shares) | 1 | |||||||||||
Series A Junior Participating Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, authorized (in shares) | 600,000 | 600,000 | ||||||||||
[1] | 1) Includes a $2.00 per share special dividend |
Incentive_Plans_Details
Incentive Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation [Abstract] | |||
Number of common shares available for grant under the incentive plan (in shares) | 1,299,470 | ||
Number of shares of stock authorized for issuance under the Nonqualified Plan (in shares) | 3,600,000 | ||
Stock option activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 61,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | -18,000 | ||
Canceled (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 43,000 | 61,000 | |
Exercisable, ending balance (in shares) | 43,000 | ||
Weighted average exercise price [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $24.24 | ||
Granted (in dollars per share) | $0 | ||
Exercised (in dollars per share) | $15.28 | ||
Canceled (in dollars per share) | $0 | ||
Outstanding, ending balance (in dollars per share) | $28.04 | $24.24 | |
Exercisable, ending balance (in dollars per share) | $28.04 | ||
Weighted average remaining contractual life, stock option awards outstanding at end of year (in years) | 5 years 3 months | ||
Weighted average remaining contractual life, stock option awards exercisable at end of year (in years) | 5 years 3 months | ||
Aggregate intrinsic value of options outstanding, ending balance | $253,000 | ||
Aggregate intrinsic value of options exercisable ending balance | 253,000 | ||
Intrinsic value of options exercised during the year | 300,000 | 1,500,000 | 2,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 11,053,000 | 11,103,000 | 9,814,000 |
Tax benefits (expense) associated with stock-based compensation | 4,600,000 | 4,500,000 | 4,000,000 |
Fair value of shares vested during the year | 10,800,000 | 12,300,000 | 11,700,000 |
Weighted average grant date fair value of restricted stock awards during the year (in dollars per share) | $28.22 | $29.25 | $30.47 |
Unrecognized compensation expense associated with the unvested shares outstanding | $12,700,000 | ||
Unrecognized compensation expense, period for recognition (in months) | 21 months | ||
Restricted Stock [Roll Forward] | |||
Outstanding beginning balance (in shares) | 740,000 | ||
Grants (in shares) | 410,000 | ||
Vests (in shares) | -382,000 | ||
Canceled (in shares) | -28,000 | ||
Outstanding ending balance (in shares) | 740,000 | 740,000 | |
Weighted-average market value [Abstract] | |||
Non-vested, beginning balance (in dollars per share) | $29.66 | ||
Granted (in dollars per share) | $28.22 | $29.25 | $30.47 |
Vested (in dollars per share) | $29.79 | ||
Canceled/forfeited (in dollars per share) | $28.45 | ||
Non-vested, ending balance (in dollars per share) | $28.84 | $29.66 | |
Employee Stock Purchase Plan (ESPP) [Abstract] | |||
ESPP Stock Issued During Period (in shares) | 37,000 | 34,000 | 37,000 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 5 years |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Earnings Per Share [Abstract] | |||||||||||||
Net income | $8,164 | $8,385 | $1,891 | $9,564 | $5,289 | [1] | $10,082 | $3,488 | [2] | $13,173 | $28,004 | $32,032 | $40,402 |
Less distributed and undistributed earnings allocated to participating securities | -2,002 | -916 | -1,224 | ||||||||||
Net income allocated to common shares | $26,002 | $31,116 | $39,178 | ||||||||||
Weighted average common shares outstanding | 24,708 | 24,850 | 25,007 | ||||||||||
Incremental shares from assumed conversions of common stock options | 4 | 22 | 60 | ||||||||||
Adjusted weighted average common shares outstanding | 24,712 | 24,872 | 25,067 | ||||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 4 | 8 | 29 | ||||||||||
[1] | Includes a $2.0 million tax benefit related to tax years 2009 through 2012. Please read Note 9 to the Consolidated Financial Statements, “Income Taxes,†for additional information. | ||||||||||||
[2] | Includes a non-cash impairment charge in the second quarter of 2013 of $2.7 million. Please read Note 6 to the Consolidated Financial Statements, “Other Assets,†for additional information. |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases [Abstract] | |||
Rental expense | $13,400,000 | $13,900,000 | $13,800,000 |
Operating leases minimum payments due [Abstract] | |||
2015 | 13,364,000 | ||
2016 | 11,821,000 | ||
2017 | 8,534,000 | ||
2018 | 6,822,000 | ||
2019 | 4,189,000 | ||
Thereafter | 5,312,000 | ||
Total minimum lease payments | $50,042,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Disclosure threshold for future non-cancelable purchase and service obligations | greater than $100,000 and one year | ||
Non-cancelable purchase and service obligations [Abstract] | |||
2015 | $10,224,000 | ||
2016 | 7,899,000 | ||
2017 | 4,179,000 | ||
2018 | 2,628,000 | ||
2019 | 1,774,000 | ||
Thereafter | 2,693,000 | ||
Total obligations | 29,397,000 | ||
Texas Sales and Use Tax Assessment [Abstract] | |||
Texas Sales and Use Tax Assessment | 933,000 | 782,000 | |
Massachusetts Tax Assessment [Abstract] | |||
Provision for interest or penalties related to uncertain tax positions | $2,500,000 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Revenues | $595,865 | $560,303 | $564,621 | $636,999 | $557,133 | $539,869 | $547,274 | $611,836 | $2,357,788 | $2,256,112 | $2,158,824 | ||||
Gross profit | 101,359 | 100,817 | 95,453 | 106,176 | 89,978 | 97,409 | 97,746 | 108,118 | 403,805 | 393,251 | 382,221 | ||||
Operating income | 13,009 | [1] | 14,460 | 3,414 | [2] | 16,591 | 6,874 | [3] | 17,112 | 10,228 | 22,009 | 47,474 | 56,223 | 67,494 | |
Net income | $8,164 | $8,385 | $1,891 | $9,564 | $5,289 | [4] | $10,082 | $3,488 | [5] | $13,173 | $28,004 | $32,032 | $40,402 | ||
Basic net income per share of common stock (in dollars per share) | $0.27 | [6] | $0.33 | $0.07 | $0.37 | $0.21 | $0.39 | $0.14 | $0.51 | $1.05 | $1.25 | $1.57 | |||
Diluted net income per share (in dollars per share) | $0.27 | [6] | $0.33 | $0.07 | $0.37 | $0.21 | $0.39 | $0.14 | $0.51 | $1.05 | $1.25 | $1.56 | |||
[1] | Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1 to the Consolidated Financial Statements, “Accounting Policies,†for additional information. | ||||||||||||||
[2] | Includes a non-cash impairment charge in the second quarter of 2014 of $2.5 million. Please read Note 5, “Goodwill and Other Intangible Assets,†for additional information. | ||||||||||||||
[3] | Includes a non-cash impairment charge in the fourth quarter of 2013 of $3.3 million. Please read Note 5, “Goodwill and Other Intangible Assets,†for additional information. | ||||||||||||||
[4] | Includes a $2.0 million tax benefit related to tax years 2009 through 2012. Please read Note 9 to the Consolidated Financial Statements, “Income Taxes,†for additional information. | ||||||||||||||
[5] | Includes a non-cash impairment charge in the second quarter of 2013 of $2.7 million. Please read Note 6 to the Consolidated Financial Statements, “Other Assets,†for additional information. | ||||||||||||||
[6] | Includes the impact of dividends exceeding earnings under the two-class method, resulting in a $0.05 earnings per share decrease in the fourth quarter of 2014. Please read Note 12, “Net Income Per Share,†for additional information. |