Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 05, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | INSPERITY, INC. | ||
Entity Central Index Key | 1,000,753 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 966,000,000 | ||
Entity Common Stock, Shares Outstanding | 21,257,515 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 269,538 | $ 276,456 |
Restricted cash | 37,418 | 44,040 |
Marketable securities | 9,875 | 28,631 |
Accounts receivable, net: | ||
Trade | 7,691 | 12,010 |
Unbilled | 190,715 | 160,154 |
Other | 2,259 | 2,952 |
Prepaid insurance | 7,417 | 21,301 |
Other current assets | 17,135 | 17,649 |
Total current assets | 542,048 | 563,193 |
Property and equipment: | ||
Land | 5,214 | 5,214 |
Buildings and improvements | 70,273 | 70,471 |
Computer hardware and software | 90,654 | 89,204 |
Software development costs | 45,762 | 41,314 |
Furniture, fixtures and other | 39,919 | 38,604 |
Aircraft | 0 | 35,879 |
Total property and equipment, gross | 251,822 | 280,686 |
Accumulated depreciation and amortization | (190,063) | (196,341) |
Total property and equipment, net | 61,759 | 84,345 |
Other assets: | ||
Prepaid health insurance | 9,000 | 9,000 |
Deposits – health insurance | 3,700 | 3,700 |
Deposits – workers’ compensation | 136,462 | 113,934 |
Goodwill and other intangible assets, net | 13,588 | 14,457 |
Deferred income taxes, net | 16,976 | 2,241 |
Other assets | 1,379 | 1,725 |
Total other assets | 181,105 | 145,057 |
Total assets | 784,912 | 792,595 |
Current liabilities: | ||
Accounts payable | 5,381 | 4,674 |
Payroll taxes and other payroll deductions payable | 205,393 | 176,341 |
Accrued worksite employee payroll cost | 161,917 | 192,396 |
Accrued health insurance costs | 13,643 | 18,329 |
Accrued workers’ compensation costs | 39,053 | 45,592 |
Accrued corporate payroll and commissions | 39,103 | 32,644 |
Other accrued liabilities | 20,250 | 22,444 |
Income tax payable | 2,971 | 4,031 |
Total current liabilities | 487,711 | 496,451 |
Noncurrent liabilities: | ||
Accrued workers’ compensation costs | 124,746 | 92,048 |
Total noncurrent liabilities | $ 124,746 | $ 92,048 |
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, 2015 and 2014 | 308 | 308 |
Additional paid-in capital | 144,701 | 137,769 |
Treasury stock, at cost – 6,493 and 5,425 at December 31, 2015 and 2014, respectively | (205,325) | (148,465) |
Accumulated other comprehensive income, net of tax | 0 | 3 |
Retained earnings | 232,771 | 214,481 |
Total stockholders’ equity | 172,455 | 204,096 |
Total liabilities and stockholders’ equity | $ 784,912 | $ 792,595 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
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) | 6,493 | 5,425 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues (gross billings of $15.806 billion, $14.187 billion and $13.462 billion, less worksite employee payroll cost of $13.202 billion, $11.829 billion and $11.206 billion, respectively) | $ 2,603,614 | $ 2,357,788 | $ 2,256,112 |
Direct costs: | |||
Payroll taxes, benefits and workers’ compensation costs | 2,165,747 | 1,953,983 | 1,862,861 |
Gross profit | 437,867 | 403,805 | 393,251 |
Operating expenses: | |||
Salaries, wages and payroll taxes | 211,060 | 200,118 | 181,444 |
Stock-based compensation | 13,345 | 11,053 | 11,103 |
Commissions | 18,479 | 15,285 | 14,581 |
Advertising | 15,980 | 20,084 | 21,508 |
General and administrative expenses | 84,259 | 84,717 | 83,986 |
Impairment charges and other | 10,480 | 3,687 | 3,342 |
Depreciation and amortization | 18,565 | 21,387 | 21,064 |
Total operating expenses | 372,168 | 356,331 | 337,028 |
Operating income | 65,699 | 47,474 | 56,223 |
Other income (expense): | |||
Interest, net | 33 | 106 | 158 |
Other, net | (113) | 47 | (2,649) |
Income before income tax expense | 65,619 | 47,627 | 53,732 |
Income tax expense | 26,229 | 19,623 | 21,700 |
Net income | 39,390 | 28,004 | 32,032 |
Less distributed and undistributed earnings allocated to participating securities | 981 | 2,002 | 916 |
Net income allocated to common shares | $ 38,409 | $ 26,002 | $ 31,116 |
Basic net income per share of common stock (in dollars per share) | $ 1.58 | $ 1.05 | $ 1.25 |
Diluted net income per share of common stock (in dollars per share) | $ 1.58 | $ 1.05 | $ 1.25 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Gross billings | $ 15,806 | $ 14,187 | $ 13,462 |
Worksite employee payroll costs | $ 13,202 | $ 11,829 | $ 11,206 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 39,390 | $ 28,004 | $ 32,032 |
Other comprehensive income: | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (3) | (26) | 13 |
Comprehensive income | $ 39,387 | $ 27,978 | $ 32,045 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands | 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, 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 | |||||
Purchase of treasury stock, at cost | (17,229,000) | $ 0 | 0 | (17,229,000) | 0 | 0 |
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 | |||||
Purchase of treasury stock, at cost | (20,769,000) | $ 0 | 0 | (20,769,000) | 0 | 0 |
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 | |||||
Purchase of treasury stock, at cost | (67,113,000) | $ 0 | 0 | (67,113,000) | 0 | 0 |
Exercise of stock options | 374,000 | 0 | (3,000) | 377,000 | 0 | 0 |
Income tax benefit from stock-based compensation, net | 2,216,000 | 0 | 2,216,000 | 0 | 0 | 0 |
Stock-based compensation expense | 13,345,000 | 0 | 4,239,000 | 9,053,000 | 0 | 53,000 |
Other | 1,303,000 | 0 | 480,000 | 823,000 | 0 | 0 |
Dividends paid | (21,153,000) | 0 | 0 | 0 | 0 | (21,153,000) |
Unrealized gain (loss) on marketable securities, net of tax | (3,000) | 0 | 0 | 0 | (3,000) | 0 |
Net income | 39,390,000 | 0 | 0 | 0 | 0 | 39,390,000 |
Balance at Dec. 31, 2015 | $ 172,455,000 | $ 308,000 | $ 144,701,000 | $ (205,325,000) | $ 0 | $ 232,771,000 |
Balance (shares) at Dec. 31, 2015 | 30,758 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 39,390 | $ 28,004 | $ 32,032 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 18,565 | 21,387 | 21,064 |
Impairment charges and other | 10,480 | 3,687 | 6,021 |
Amortization of marketable securities | 836 | 1,891 | 2,119 |
Stock-based compensation | 13,345 | 11,053 | 11,103 |
Deferred income taxes | (14,733) | (1,733) | (2,288) |
Changes in operating assets and liabilities: | |||
Restricted cash | 6,622 | 7,888 | (4,779) |
Accounts receivable | (25,549) | 34,893 | (19,623) |
Prepaid insurance | 13,884 | (10,663) | 4,982 |
Other current assets | 514 | (5,596) | (2,402) |
Other assets | (22,069) | (32,013) | (18,091) |
Accounts payable | 707 | 1,996 | (982) |
Payroll taxes and other payroll deductions payable | 29,052 | 10,737 | (12,930) |
Accrued worksite employee payroll expense | (30,479) | 18,595 | 23,731 |
Accrued health insurance costs | (4,686) | 13,226 | (8,839) |
Accrued workers’ compensation costs | 26,159 | 15,805 | 7,815 |
Accrued corporate payroll, commissions and other accrued liabilities | 4,105 | 18,517 | 556 |
Income taxes payable/receivable | (1,060) | 4,039 | (4,825) |
Total adjustments | 25,693 | 113,709 | 2,632 |
Net cash provided by operating activities | 65,083 | 141,713 | 34,664 |
Marketable securities: | |||
Purchases | (10,558) | (69,578) | (54,756) |
Proceeds from maturities | 10,593 | 28,494 | 15,201 |
Proceeds from dispositions | 17,869 | 56,880 | 8,026 |
Property and equipment: | |||
Purchases | (17,844) | (19,124) | (11,562) |
Proceeds from sale of aircraft | 12,159 | 0 | 0 |
Proceeds from dispositions | 153 | 122 | 57 |
Net cash provided by (used in) investing activities | 12,372 | (3,206) | (43,034) |
Cash flows from financing activities: | |||
Purchase of treasury stock | (67,113) | (20,769) | (17,229) |
Dividends paid | (21,153) | (69,493) | (17,386) |
Proceeds from the exercise of stock options | 374 | 279 | 1,448 |
Income tax benefit from stock-based compensation | 2,216 | 889 | 1,621 |
Other | 1,303 | 1,288 | 1,127 |
Net cash used in financing activities | (84,373) | (87,806) | (30,419) |
Net increase (decrease) in cash and cash equivalents | (6,918) | 50,701 | (38,789) |
Cash and cash equivalents at beginning of year | 276,456 | 225,755 | 264,544 |
Cash and cash equivalents at end of year | 269,538 | 276,456 | 225,755 |
Supplemental disclosures: | |||
Cash paid for income taxes, net | $ 39,806 | $ 16,429 | $ 27,191 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 in 1986, 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 TM 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, along with our cloud-based human capital management platform, the Employee Service Center SM (“ESC”). In addition to our PEO HR Outsourcing solutions, we offer a number of other business performance solutions, including 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, many of which are offered via desktop applications and cloud-based delivery models. These other products and services are offered separately, as a bundle, or along with our 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, 2015 and 2014 , 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 2-5 years Software development costs 3-5 years Furniture, fixtures and other 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 $3.3 million , $4.1 million and $3.6 million in amortization of capitalized computer software costs in 2015 , 2014 and 2013 , respectively. Unamortized software development costs were $7.1 million and $6.0 million in 2015 and 2014 , 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 in 2014. 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 and Tufts, all of which provide fully insured policies or service contracts. In 2015, we terminated our relationship with Unity Health Plan. 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, 2015 , and is reported as a long-term asset. As of December 31, 2015 , Plan Costs were less than the net premiums paid and owed to United by $2.2 million . As this amount is less than the agreed-upon $9.0 million surplus maintenance level, the $6.8 million difference is included in accrued health insurance costs, a current liability, in our Consolidated Balance Sheets. In addition, the premiums owed to United at December 31, 2015 , were $3.1 million , which is also 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, 2015 and 2014 , we reduced accrued workers’ compensation costs by $1.3 million and $2.9 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 rate utilized in both 2015 and 2014 was 1.0% ) 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, 2015 2014 (in thousands) Beginning balance $ 136,088 $ 120,833 Accrued claims 67,559 55,971 Present value discount (3,095 ) (1,998 ) Paid claims (38,368 ) (38,718 ) Ending balance $ 162,184 $ 136,088 Current portion of accrued claims $ 37,438 $ 44,040 Long-term portion of accrued claims 124,746 92,048 $ 162,184 $ 136,088 The current portion of accrued workers’ compensation costs at December 31, 2015 and 2014 includes $1.6 million of workers’ compensation administrative fees in both periods. As of December 31, the undiscounted accrued workers’ compensation costs were $172.3 million in 2015 and $145.8 million in 2014 . 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 2015 , we received $5.3 million for the return of excess claim funds related to the workers’ compensation program, which decreased deposits. As of December 31, 2015 , we had restricted cash of $37.4 million and deposits of $136.5 million . Our estimate of incurred claim costs expected to be paid within one year is 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, 2015 , 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. In 2015, we adopted the Insperity Long-Term Incentive Program (the “LTIP”). The LTIP provides for performance based long-term compensation awards in the form of performance units to certain employees based on the achievement of pre-established performance goals. Each performance unit represents the right to receive one common share at a future date based on our performance against certain targets. Performance units have a vesting schedule of three years. The fair value of each performance unit is the market price of our common stock on the date of grant. The compensation expense for such awards is recognized on a straight line basis over the vesting term. Over the performance period the number of shares expected to be issued is adjusted upward or downward based on the probability of achievement of the performance target. Company-Sponsored 401(k) Retirement Plans Under our 401(k) retirement plan for corporate employees (the “Corporate Plan”), we matched 50% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2015 , 2014 and 2013 . Under our separate 401(k) retirement 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 2015 , 2014 and 2013 , we made matching contributions to the Corporate and Worksite Employee Plans of $98.7 million , $81.5 million and $74.7 million , respectively. Of these contributions, $95.3 million , $78.4 million and $71.7 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 2015 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 (“FASB”) 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, 2017, 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires companies to present deferred income tax assets and deferred income tax liabilities, along with any valuation allowance, as noncurrent in a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted either prospectively or retrospectively. In December 2015, we adopted ASU No. 2015-17 retrospectively, resulting in a reclassification of a $6.3 million deferred tax asset from current to long term in 2014. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 (in thousands) Overnight holdings: Money market funds (cash equivalents) $ 247,720 $ 271,840 Investment holdings: Money market funds (cash equivalents) 26,048 14,125 Marketable securities 9,875 28,631 283,643 314,596 Cash held in demand accounts 19,377 20,369 Outstanding checks (23,607 ) (29,878 ) Total cash, cash equivalents and marketable securities $ 279,413 $ 305,087 Cash and cash equivalents $ 269,538 $ 276,456 Marketable securities 9,875 28,631 $ 279,413 $ 305,087 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, 2015 and December 31, 2014 , are $185.7 million and $152.1 million , respectively, in withholdings associated with federal and state income taxes, employment taxes and other payroll deductions, as well as $17.0 million and $87.9 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 Money market funds $ 273,768 $ 273,768 $ — $ — Municipal bonds 9,875 — 9,875 — Total $ 283,643 $ 273,768 $ 9,875 $ — Fair Value Measurements (in thousands) December 31, Level 1 Level 2 Level 3 Money market funds $ 285,965 $ 285,965 $ — $ — Municipal bonds 28,631 — 28,631 — Total $ 314,596 $ 285,965 $ 28,631 $ — 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 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) December 31, 2015 Municipal bonds $ 9,875 $ 3 $ (3 ) $ 9,875 December 31, 2014 Municipal bonds $ 28,626 $ 16 $ (11 ) $ 28,631 As of December 31, 2015 , the contractual maturities of our marketable securities were as follows: Amortized Cost Estimated Fair Value (in thousands) Less than one year $ 7,341 $ 7,341 One to five years 2,534 2,534 Total $ 9,875 $ 9,875 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
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 $1.1 million and $1.2 million as of December 31, 2015 and 2014 , 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, 2015 2014 (in thousands) Accrued worksite employee payroll cost $ 161,917 $ 192,396 Unbilled revenues 45,835 55,645 Customer prepayments (17,037 ) (87,887 ) Unbilled accounts receivable $ 190,715 $ 160,154 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 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, 2015 , we had $136.5 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 A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 , 2014 and 2013 , we performed step one of the annual impairment test for each of our reporting units. We concluded that the estimated fair value of our Expense Management unit in 2013 was below its respective carrying value. 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 and Expense 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 and $3.3 million in 2013 related to our Expense 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: December 31, 2014 Twelve Months Ended December 31, 2015 Balance Impairment Amortization Expense Balance (in thousands) Gross carrying amount: Trademarks $ 220 $ — $ — $ 220 Customer relationships 6,392 — — 6,392 Aggregate goodwill acquired: Goodwill 21,156 — 21,156 Total $ 27,768 $ — $ — $ 27,768 Accumulated amortization: Trademarks $ (62 ) $ — $ (39 ) $ (101 ) Customer relationships (4,779 ) — (830 ) (5,609 ) Accumulated impairment: Goodwill (8,470 ) — — (8,470 ) Total $ (13,311 ) $ — $ (869 ) $ (14,180 ) Net carrying amount: Trademarks $ 158 $ — $ (39 ) $ 119 Customer relationships 1,613 — (830 ) 783 Goodwill 12,686 — — 12,686 Total goodwill and other intangible assets $ 14,457 $ — $ (869 ) $ 13,588 Our amortization expense related to purchased intangible assets other than goodwill was $0.9 million in 2015 , $1.5 million in 2014 and $2.0 million in 2013 , and is estimated to be $0.5 million in 2016 , $0.3 million in 2017 , $36,000 in 2018 , $12,000 in 2019 and $7,000 in 2020 . |
Other Asset Impairments Other A
Other Asset Impairments Other Asset Impairments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | 6. Other Asset Impairments In the first quarter of 2015, we entered into a plan to sell our two aircraft, and as a result, we recorded impairment and other charges of $9.8 million , representing the difference between the carrying value and the estimated fair value of the assets as well as a provision for potential settlement of a Texas sales and use tax assessment. In July 2015, we received proceeds, net of selling costs, of $12.2 million for both aircraft and recorded an additional $1.3 million impairment charge in the second quarter of 2015. In the fourth quarter of 2015, we reduced our use tax accrual by $0.6 million due to a pending $0.2 million settlement of the Texas sales and use tax assessment. These net charges of $10.5 million are included in impairment charges and other on our Consolidated Statement of Operations. 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. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | 7. Revolving Credit Facility We have a $125 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”). 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, 2015 , we had not drawn on the Facility. As of December 31, 2015 , we had an outstanding $0.6 million letter of credit issued under the Facility. The Facility matures on February 6, 2020 . 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 that 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, 2015 . In January 2016, we borrowed $104.4 million under the Facility to fund a portion of the purchase price of our modified Dutch auction tender offer. Please read Note 15 , “ Subsequent Events ,” for additional information. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. 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, 2015 2014 (in thousands) Deferred tax liabilities: Prepaid assets $ (3,952 ) $ (9,291 ) Depreciation (1,741 ) (8,083 ) Software development costs (2,699 ) (2,252 ) Total deferred tax liabilities (8,392 ) (19,626 ) Deferred tax assets: Accrued incentive compensation 8,818 7,204 Net operating loss carryforward 1,463 1,556 Workers’ compensation accruals 7,586 6,308 Accrued rent 1,229 1,058 Stock-based compensation 4,553 3,615 Intangibles 1,159 1,575 Minority investment impairment 1,016 1,003 Other 564 551 Total deferred tax assets 26,388 22,870 Valuation allowance (1,020 ) (1,003 ) Total net deferred tax assets 25,368 21,867 Net deferred tax assets $ 16,976 $ 2,241 In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires companies to present deferred income tax assets and deferred income tax liabilities as noncurrent in a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted either prospectively or retrospectively. In December 2015 we adopted ASU No. 2015-17 retrospectively, resulting in a reclassification of a $6.3 million deferred tax asset from current to long term in 2014. The components of income tax expense are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current income tax expense: Federal $ 35,221 $ 18,034 $ 20,476 State 5,741 3,322 3,512 Total current income tax expense 40,962 21,356 23,988 Deferred income tax (benefit) expense: Federal (13,632 ) (1,764 ) (2,258 ) State (1,101 ) 31 (30 ) Total deferred income tax benefit (14,733 ) (1,733 ) (2,288 ) Total income tax expense $ 26,229 $ 19,623 $ 21,700 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 $2.2 million in 2015 , $0.5 million in 2014 and $1.3 million in 2013 . 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, 2015 2014 2013 (in thousands) Expected income tax expense at 35% $ 22,967 $ 16,670 $ 18,806 State income taxes, net of federal benefit 2,696 2,204 2,286 Nondeductible expenses 1,669 1,939 1,993 Section 199 benefits (627 ) (592 ) (2,531 ) Expense Management non-cash impairment — — 797 Valuation allowance related to TRE impairment — — 938 Research and development credit (530 ) (455 ) (534 ) Other, net 54 (143 ) (55 ) Reported total income tax expense $ 26,229 $ 19,623 $ 21,700 We have developed customer facing software that is included as a component of the PEO HR Outsourcing solutions. In addition, we 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, 2015 , we have net operating loss carryforwards totaling approximately $3.9 million that expire from 2022 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, 2015 , 2014 and 2013 , we made no provisions for interest or penalties related to uncertain tax positions. The tax years 2012 through 2014 remain open to examination by the Internal Revenue Service of the United States. The tax years 2011 through 2014 remain open to examination by various state tax authorities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Repurchase Program Our Board of Directors (the “Board”) has authorized a program to repurchase 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. During 2014 , we repurchased 580,804 shares under the Repurchase Program and 112,458 shares were withheld to satisfy minimum tax withholding obligations for the vesting of restricted stock awards. In 2015, the Board authorized an increase of one million shares that may be repurchased under the Repurchase Program. We repurchased 1,244,433 shares under the Repurchase Program during 2015 . In addition, 114,523 shares were withheld during 2015 to satisfy minimum tax withholding obligations for the vesting of restricted stock awards, which are not subject to the Repurchase Program. At December 31, 2015 , we were authorized to repurchase an additional 524,332 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 2015 and 2014 as follows: 2015 2014 (amounts per share) First quarter $ 0.19 $ 0.17 Second quarter 0.22 0.19 Third quarter 0.22 0.19 Fourth quarter 0.22 2.19 (1) ____________________________________ (1) Includes a $2.00 per share special dividend During 2015 and 2014 , we paid a total of $21.2 million and $69.5 million , respectively in dividends. The dividends paid in 2014 includes a one-time special dividend of $50.7 million . Preferred Stock At December 31, 2015 , 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, 2015 | |
Share-based Compensation [Abstract] | |
Incentive Plans | 10. 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, 2015 , 997,059 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. On March 30, 2015, we adopted the Insperity, Inc. Long-Term Incentive Program under the Insperity, Inc. 2012 Incentive Plan. The LTIP provides for performance-based long-term compensation awards in the form of performance units to certain employees based on the achievement of pre-established performance goals. We granted performance units under the LTIP to our named executive officers and certain other officers in 2015. We recognized $13.3 million , $11.1 million and $11.1 million of compensation expense associated with the restricted stock and the LTIP awards in 2015 , 2014 and 2013 , respectively. We recognized $5.3 million , $4.6 million and $4.5 million of tax benefits associated with stock-based compensation in 2015 , 2014 and 2013 , respectively. Stock Option Awards The following is a summary of stock option award activity for 2015 : Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding - December 31, 2014 43 $ 28.04 Granted — — Exercised (15 ) 25.14 Canceled — — Outstanding - December 31, 2015 28 29.56 4.4 $ 527 Exercisable - December 31, 2015 28 29.56 4.4 $ 527 The intrinsic value of options exercised during the year was $0.3 million in 2015 , $0.3 million in 2014 and $1.5 million in 2013 . 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, 2015 , 2014 , and 2013 was $18.6 million , $10.8 million and $12.3 million , respectively. The weighted average grant date fair value of restricted stock awards during the years ended December 31, 2015 , 2014 and 2013 was $51.54 , $28.22 and $29.25 , respectively. As of December 31, 2015 , unrecognized compensation expense associated with the unvested shares outstanding was $14.4 million and is expected to be recognized over a weighted average period of 23 months . The following is a summary of restricted stock award activity for 2015 : Shares Weighted Average Grant Date Fair Value (in thousands) Non-vested - December 31, 2014 740 $ 28.84 Granted 271 51.54 Vested (368 ) 29.71 Canceled/Forfeited (25 ) 36.68 Non-vested - December 31, 2015 618 37.98 Long-Term Incentive Program Awards Each performance unit represents the right to receive one common share at a future date based on our performance against specified targets. Performance units have a vesting schedule of three years. The fair value of each performance unit is the market price of one common share on the date of grant. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares expected to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. As of December 31, 2015 , the unrecognized compensation cost was $6.0 million . The following is a summary of LTIP award activity for 2015 : Number of Performance Units at Target Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Unvested at December 31, 2014 — $ — — Granted 103,450 52.80 201,800 Vested — — — Canceled (2,550 ) — — Unvested at December 31, 2015 100,900 52.80 201,800 Expected to vest 153,146 The expected payout assumes the issuance of 153,146 shares of common stock. 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 24,000 , 37,000 and 34,000 shares were issued from treasury under the ESPP during fiscal years 2015 , 2014 and 2013 , respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 11. 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 a special dividend of $2.00 per share in 2014. As a result, dividends exceeded earnings, which resulted in decreased earnings per share of $0.05 per share in 2014. 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, 2015 2014 2013 (in thousands) Net income $ 39,390 $ 28,004 $ 32,032 Less distributed and undistributed earnings allocated to participating securities (981 ) (2,002 ) (916 ) Net income allocated to common shares $ 38,409 $ 26,002 $ 31,116 Weighted average common shares outstanding 24,308 24,708 24,850 Incremental shares from assumed conversions of common stock options 7 4 22 Adjusted weighted average common shares outstanding 24,315 24,712 24,872 Potentially dilutive securities not included in weighted average share — 4 8 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 12. 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 $13.6 million , $13.4 million and $13.9 million in 2015 , 2014 and 2013 , respectively. At December 31, 2015 , future minimum rental payments under noncancelable operating leases are as follows: Operating Leases (in thousands) 2016 $ 13,961 2017 11,196 2018 9,423 2019 6,366 2020 4,200 Thereafter 3,312 Total minimum lease payments $ 48,458 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies We enter into fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of, construction contract for the new facility, advertising commitments and service contracts. At December 31, 2015 , future purchase and service obligations greater than $100,000 and one year were as follows (in thousands): 2016 $ 20,554 (1) 2017 6,245 2018 4,695 2019 1,774 2020 1,493 Thereafter 1,200 Total obligations $ 35,961 ____________________________________ (1) Includes $13 million related to the construction of a new facility on our corporate campus. Worksite Employee 401(k) Retirement Plan Class Action Litigation In December 2015, a class action lawsuit was filed against us and the Company’s third party discretionary trustee of the Worksite Employee Plan (the “Plan”) in the United States District Court for the Northern District of Georgia, Atlanta Division on behalf of participants in the Plan, which is the Insperity 401(k) retirement plan covering worksite employees. This suit generally alleges that the Company’s third party discretionary trustee of the Plan and Insperity breached their fiduciary duties to plan participants by selecting an Insperity subsidiary to serve as the recordkeeper for the Plan, by causing participants in the Plan to pay excessive recordkeeping fees to the Insperity subsidiary and by making imprudent investment choices. We believe the Company has meritorious defenses and we intend to vigorously defend this litigation. As a result of uncertainty regarding the outcome of this matter, no provision has been made in the accompanying consolidated financial statements. Other Litigation We are a defendant in various lawsuits and claims arising in the normal course of business. Management believes it has valid defenses in these cases and is defending them vigorously. While the results of litigation cannot be predicted with certainty, except as set forth below, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 14. Quarterly Financial Data (Unaudited) Quarter ended March 31 June 30 Sept. 30 Dec. 31 (in thousands, except per share amounts) 2015 Revenues $ 699,479 $ 627,838 $ 626,286 $ 650,011 Gross profit 129,860 104,219 106,743 97,045 Operating income 23,520 (1) 12,217 (2) 19,936 10,026 (3) Net income 13,787 7,314 11,950 6,339 Basic net income per share 0.54 0.29 0.48 0.26 Diluted net income per share 0.54 0.29 0.48 0.26 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 (4) 14,460 13,009 (5) Net income 9,564 1,891 8,385 8,164 Basic net income per share 0.37 0.07 0.33 0.27 (6) Diluted net income per share 0.37 0.07 0.33 0.27 (6) ____________________________________ (1) Includes non-cash impairment and other charges in the first quarter of 2015 of $9.8 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (2) Includes non-cash impairment and other charges in the second quarter of 2015 of $1.3 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (3) Includes a reduction to non-cash impairment and other charges in the fourth quarter of 2015 of $0.6 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (4) Includes a non-cash impairment charge in the first quarter of 2014 of $2.5 million . Please read Note 5 , “ Goodwill and Other Intangible Assets ,” for additional information. (5) Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1 , “ Accounting Policies ,” 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 11 , “ Net Income Per Share ,” for additional information. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 15. Subsequent Events In December 2015, we commenced a modified Dutch auction tender offer to purchase up to $125 million in value of our common stock at a price not less than $43.50 per share and not more than $50.00 per share. In January 2016, we exercised our right to increase the size of the tender offer by up to 2.0% of our outstanding common stock. The tender offer period expired on January 7, 2016 and on January 13, 2016, we purchased 3,013,531 shares of our common stock at a per share price of $47.50 and an aggregate price of $143.1 million , excluding $1.1 million of transaction costs. The shares were immediately canceled and retired. The tender offer was funded through borrowings of $104.4 million under the Facility and the remainder with cash on hand. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 in 1986, 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 TM 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, along with our cloud-based human capital management platform, the Employee Service Center SM (“ESC”). In addition to our PEO HR Outsourcing solutions, we offer a number of other business performance solutions, including 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, many of which are offered via desktop applications and cloud-based delivery models. These other products and services are offered separately, as a bundle, or along with our 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, 2015 and 2014 , 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 2-5 years Software development costs 3-5 years Furniture, fixtures and other 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 $3.3 million , $4.1 million and $3.6 million in amortization of capitalized computer software costs in 2015 , 2014 and 2013 , respectively. Unamortized software development costs were $7.1 million and $6.0 million in 2015 and 2014 , 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 in 2014. |
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 and Tufts, all of which provide fully insured policies or service contracts. In 2015, we terminated our relationship with Unity Health Plan. 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, 2015 , and is reported as a long-term asset. As of December 31, 2015 , Plan Costs were less than the net premiums paid and owed to United by $2.2 million . As this amount is less than the agreed-upon $9.0 million surplus maintenance level, the $6.8 million difference is included in accrued health insurance costs, a current liability, in our Consolidated Balance Sheets. In addition, the premiums owed to United at December 31, 2015 , were $3.1 million , which is also 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, 2015 and 2014 , we reduced accrued workers’ compensation costs by $1.3 million and $2.9 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 rate utilized in both 2015 and 2014 was 1.0% ) 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, 2015 2014 (in thousands) Beginning balance $ 136,088 $ 120,833 Accrued claims 67,559 55,971 Present value discount (3,095 ) (1,998 ) Paid claims (38,368 ) (38,718 ) Ending balance $ 162,184 $ 136,088 Current portion of accrued claims $ 37,438 $ 44,040 Long-term portion of accrued claims 124,746 92,048 $ 162,184 $ 136,088 The current portion of accrued workers’ compensation costs at December 31, 2015 and 2014 includes $1.6 million of workers’ compensation administrative fees in both periods. As of December 31, the undiscounted accrued workers’ compensation costs were $172.3 million in 2015 and $145.8 million in 2014 . 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 2015 , we received $5.3 million for the return of excess claim funds related to the workers’ compensation program, which decreased deposits. As of December 31, 2015 , we had restricted cash of $37.4 million and deposits of $136.5 million . Our estimate of incurred claim costs expected to be paid within one year is 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, 2015 , 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. In 2015, we adopted the Insperity Long-Term Incentive Program (the “LTIP”). The LTIP provides for performance based long-term compensation awards in the form of performance units to certain employees based on the achievement of pre-established performance goals. Each performance unit represents the right to receive one common share at a future date based on our performance against certain targets. Performance units have a vesting schedule of three years. The fair value of each performance unit is the market price of our common stock on the date of grant. The compensation expense for such awards is recognized on a straight line basis over the vesting term. Over the performance period the number of shares expected to be issued is adjusted upward or downward based on the probability of achievement of the performance target. |
Company-Sponsored 401(k) Plans | Company-Sponsored 401(k) Retirement Plans Under our 401(k) retirement plan for corporate employees (the “Corporate Plan”), we matched 50% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2015 , 2014 and 2013 . Under our separate 401(k) retirement 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 2015 , 2014 and 2013 , we made matching contributions to the Corporate and Worksite Employee Plans of $98.7 million , $81.5 million and $74.7 million , respectively. Of these contributions, $95.3 million , $78.4 million and $71.7 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 2015 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 (“FASB”) 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, 2017, 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires companies to present deferred income tax assets and deferred income tax liabilities, along with any valuation allowance, as noncurrent in a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted either prospectively or retrospectively. In December 2015, we adopted ASU No. 2015-17 retrospectively, resulting in a reclassification of a $6.3 million deferred tax asset from current to long term in 2014. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2-5 years Software development costs 3-5 years Furniture, fixtures and other 5-7 years Aircraft 15-20 years |
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, 2015 2014 (in thousands) Beginning balance $ 136,088 $ 120,833 Accrued claims 67,559 55,971 Present value discount (3,095 ) (1,998 ) Paid claims (38,368 ) (38,718 ) Ending balance $ 162,184 $ 136,088 Current portion of accrued claims $ 37,438 $ 44,040 Long-term portion of accrued claims 124,746 92,048 $ 162,184 $ 136,088 |
Cash, Cash Equivalents and Ma26
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 (in thousands) Overnight holdings: Money market funds (cash equivalents) $ 247,720 $ 271,840 Investment holdings: Money market funds (cash equivalents) 26,048 14,125 Marketable securities 9,875 28,631 283,643 314,596 Cash held in demand accounts 19,377 20,369 Outstanding checks (23,607 ) (29,878 ) Total cash, cash equivalents and marketable securities $ 279,413 $ 305,087 Cash and cash equivalents $ 269,538 $ 276,456 Marketable securities 9,875 28,631 $ 279,413 $ 305,087 |
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 Money market funds $ 273,768 $ 273,768 $ — $ — Municipal bonds 9,875 — 9,875 — Total $ 283,643 $ 273,768 $ 9,875 $ — Fair Value Measurements (in thousands) December 31, Level 1 Level 2 Level 3 Money market funds $ 285,965 $ 285,965 $ — $ — Municipal bonds 28,631 — 28,631 — Total $ 314,596 $ 285,965 $ 28,631 $ — |
Summary of available-for-sale securities | The following is a summary of our available-for-sale marketable securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) December 31, 2015 Municipal bonds $ 9,875 $ 3 $ (3 ) $ 9,875 December 31, 2014 Municipal bonds $ 28,626 $ 16 $ (11 ) $ 28,631 |
Contractual maturities of marketable securities | As of December 31, 2015 , the contractual maturities of our marketable securities were as follows: Amortized Cost Estimated Fair Value (in thousands) Less than one year $ 7,341 $ 7,341 One to five years 2,534 2,534 Total $ 9,875 $ 9,875 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 (in thousands) Accrued worksite employee payroll cost $ 161,917 $ 192,396 Unbilled revenues 45,835 55,645 Customer prepayments (17,037 ) (87,887 ) Unbilled accounts receivable $ 190,715 $ 160,154 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: December 31, 2014 Twelve Months Ended December 31, 2015 Balance Impairment Amortization Expense Balance (in thousands) Gross carrying amount: Trademarks $ 220 $ — $ — $ 220 Customer relationships 6,392 — — 6,392 Aggregate goodwill acquired: Goodwill 21,156 — 21,156 Total $ 27,768 $ — $ — $ 27,768 Accumulated amortization: Trademarks $ (62 ) $ — $ (39 ) $ (101 ) Customer relationships (4,779 ) — (830 ) (5,609 ) Accumulated impairment: Goodwill (8,470 ) — — (8,470 ) Total $ (13,311 ) $ — $ (869 ) $ (14,180 ) Net carrying amount: Trademarks $ 158 $ — $ (39 ) $ 119 Customer relationships 1,613 — (830 ) 783 Goodwill 12,686 — — 12,686 Total goodwill and other intangible assets $ 14,457 $ — $ (869 ) $ 13,588 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 (in thousands) Deferred tax liabilities: Prepaid assets $ (3,952 ) $ (9,291 ) Depreciation (1,741 ) (8,083 ) Software development costs (2,699 ) (2,252 ) Total deferred tax liabilities (8,392 ) (19,626 ) Deferred tax assets: Accrued incentive compensation 8,818 7,204 Net operating loss carryforward 1,463 1,556 Workers’ compensation accruals 7,586 6,308 Accrued rent 1,229 1,058 Stock-based compensation 4,553 3,615 Intangibles 1,159 1,575 Minority investment impairment 1,016 1,003 Other 564 551 Total deferred tax assets 26,388 22,870 Valuation allowance (1,020 ) (1,003 ) Total net deferred tax assets 25,368 21,867 Net deferred tax assets $ 16,976 $ 2,241 |
Components of income tax expense | The components of income tax expense are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current income tax expense: Federal $ 35,221 $ 18,034 $ 20,476 State 5,741 3,322 3,512 Total current income tax expense 40,962 21,356 23,988 Deferred income tax (benefit) expense: Federal (13,632 ) (1,764 ) (2,258 ) State (1,101 ) 31 (30 ) Total deferred income tax benefit (14,733 ) (1,733 ) (2,288 ) Total income tax expense $ 26,229 $ 19,623 $ 21,700 |
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, 2015 2014 2013 (in thousands) Expected income tax expense at 35% $ 22,967 $ 16,670 $ 18,806 State income taxes, net of federal benefit 2,696 2,204 2,286 Nondeductible expenses 1,669 1,939 1,993 Section 199 benefits (627 ) (592 ) (2,531 ) Expense Management non-cash impairment — — 797 Valuation allowance related to TRE impairment — — 938 Research and development credit (530 ) (455 ) (534 ) Other, net 54 (143 ) (55 ) Reported total income tax expense $ 26,229 $ 19,623 $ 21,700 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
QuarterlydividendsdeclaredTableTextBlock [Table Text Block] | Dividends The Board declared quarterly dividends in 2015 and 2014 as follows: 2015 2014 (amounts per share) First quarter $ 0.19 $ 0.17 Second quarter 0.22 0.19 Third quarter 0.22 0.19 Fourth quarter 0.22 2.19 (1) ____________________________________ (1) Includes a $2.00 per share special dividend |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option award activity | The following is a summary of stock option award activity for 2015 : Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding - December 31, 2014 43 $ 28.04 Granted — — Exercised (15 ) 25.14 Canceled — — Outstanding - December 31, 2015 28 29.56 4.4 $ 527 Exercisable - December 31, 2015 28 29.56 4.4 $ 527 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock awards activity | The following is a summary of restricted stock award activity for 2015 : Shares Weighted Average Grant Date Fair Value (in thousands) Non-vested - December 31, 2014 740 $ 28.84 Granted 271 51.54 Vested (368 ) 29.71 Canceled/Forfeited (25 ) 36.68 Non-vested - December 31, 2015 618 37.98 |
Long-Term Incentive Program Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted stock awards activity | The following is a summary of LTIP award activity for 2015 : Number of Performance Units at Target Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Unvested at December 31, 2014 — $ — — Granted 103,450 52.80 201,800 Vested — — — Canceled (2,550 ) — — Unvested at December 31, 2015 100,900 52.80 201,800 Expected to vest 153,146 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (in thousands) Net income $ 39,390 $ 28,004 $ 32,032 Less distributed and undistributed earnings allocated to participating securities (981 ) (2,002 ) (916 ) Net income allocated to common shares $ 38,409 $ 26,002 $ 31,116 Weighted average common shares outstanding 24,308 24,708 24,850 Incremental shares from assumed conversions of common stock options 7 4 22 Adjusted weighted average common shares outstanding 24,315 24,712 24,872 Potentially dilutive securities not included in weighted average share — 4 8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 $13.6 million , $13.4 million and $13.9 million in 2015 , 2014 and 2013 , respectively. At December 31, 2015 , future minimum rental payments under noncancelable operating leases are as follows: Operating Leases (in thousands) 2016 $ 13,961 2017 11,196 2018 9,423 2019 6,366 2020 4,200 Thereafter 3,312 Total minimum lease payments $ 48,458 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future non-cancelable purchase and service obligations | We enter into fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of, construction contract for the new facility, advertising commitments and service contracts. At December 31, 2015 , future purchase and service obligations greater than $100,000 and one year were as follows (in thousands): 2016 $ 20,554 (1) 2017 6,245 2018 4,695 2019 1,774 2020 1,493 Thereafter 1,200 Total obligations $ 35,961 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter ended March 31 June 30 Sept. 30 Dec. 31 (in thousands, except per share amounts) 2015 Revenues $ 699,479 $ 627,838 $ 626,286 $ 650,011 Gross profit 129,860 104,219 106,743 97,045 Operating income 23,520 (1) 12,217 (2) 19,936 10,026 (3) Net income 13,787 7,314 11,950 6,339 Basic net income per share 0.54 0.29 0.48 0.26 Diluted net income per share 0.54 0.29 0.48 0.26 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 (4) 14,460 13,009 (5) Net income 9,564 1,891 8,385 8,164 Basic net income per share 0.37 0.07 0.33 0.27 (6) Diluted net income per share 0.37 0.07 0.33 0.27 (6) ____________________________________ (1) Includes non-cash impairment and other charges in the first quarter of 2015 of $9.8 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (2) Includes non-cash impairment and other charges in the second quarter of 2015 of $1.3 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (3) Includes a reduction to non-cash impairment and other charges in the fourth quarter of 2015 of $0.6 million . Please read Note 6 , “ Other Asset Impairments ,” for additional information. (4) Includes a non-cash impairment charge in the first quarter of 2014 of $2.5 million . Please read Note 5 , “ Goodwill and Other Intangible Assets ,” for additional information. (5) Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1 , “ Accounting Policies ,” 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 11 , “ Net Income Per Share ,” for additional information. |
Accounting Policies (Details)
Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 01, 2010USD ($) | Sep. 30, 2010USD ($) | |
Segment Reporting [Abstract] | ||||||||
Number of reportable segments (integer) | 1 | |||||||
Property, Plant and Equipment [Line Items] | ||||||||
Amortization of capitalized computer software costs | $ 3,300 | $ 4,100 | $ 3,600 | |||||
Unamortized computer software costs | $ 7,100 | $ 6,000 | ||||||
Asset impairment charge due to change in office consolidation plans | $ 1,200 | |||||||
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 | 9,000 | ||||||
Required deposit for health care costs | 3,500 | |||||||
Amount which Plan Costs were less than the net premiums paid and owed | 2,200 | |||||||
Portion of insurance costs that is less than the agreed upon surplus included in accrued health insurance costs a cnt liab | (6,800) | |||||||
Premiums owed to United | 3,100 | |||||||
Workers' Compensation Costs [Abstract] | ||||||||
Company's maximum economic burden for the first layer of claims per occurrence | $ 1,000 | |||||||
Company's maximum aggregate economic burden for claims in excess of $1 million per policy year | $ 5,000 | |||||||
Reduction in accrued workers' compensation costs for changes in estimated losses | $ 1,300 | $ 2,900 | ||||||
U.S. Treasury rates that correspond with the weighted average estimated claim payout period (in hundredths) | 1.00% | 1.00% | ||||||
Incurred but not paid workers' compensation liabilities | ||||||||
Beginning balance | $ 136,088 | $ 120,833 | ||||||
Accrued claims | 67,559 | 55,971 | ||||||
Present value discount | (3,095) | (1,998) | ||||||
Paid claims | (38,368) | (38,718) | ||||||
Ending balance | 136,088 | 162,184 | 136,088 | 120,833 | ||||
Current portion of accrued claims | 37,438 | 44,040 | ||||||
Long-term portion of accrued claims | 124,746 | 92,048 | ||||||
Ending Balance | $ 136,088 | 136,088 | 120,833 | 120,833 | 162,184 | 136,088 | ||
Current portion of workers' compensation administrative fees accrued | 1,600 | |||||||
Undiscounted accrued workers' compensation costs | $ 172,300 | 145,800 | ||||||
Time period incurred claims expected to be paid recorded as restricted cash | 1 year | |||||||
Return Of Excess Claim Funds | $ 5,300 | |||||||
Time period incurred claims expected to be paid, included in deposits, a long-term asset | Greater than 1 year | |||||||
Restricted Cash and Cash Equivalents, Current | 37,418 | 44,040 | ||||||
Deposits - workers' compensation | $ 136,462 | $ 113,934 | ||||||
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% | |||||||
New Accounting Pronouncements [Abstract] | ||||||||
Prior Period Reclassification Adjustment | 6,300 | |||||||
Minimum [Member] | ||||||||
Other Intangible Assets [Line Items] | ||||||||
Other Intangible Assets, useful life | 3 years | |||||||
Maximum [Member] | ||||||||
Other Intangible Assets [Line Items] | ||||||||
Other Intangible Assets, useful life | 10 years | |||||||
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% | |||||||
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 | $ 95,300 | 78,400 | 71,700 | |||||
Corporate Plan and Worksite Employee Plan [Member] | ||||||||
Company-Sponsored 401 (k) Plans [Abstract] | ||||||||
Matching contributions to the Plans | $ 98,700 | $ 81,500 | $ 74,700 | |||||
Buildings and Improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 5 years | |||||||
Buildings and Improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 30 years | |||||||
Computer Hardware and Software and Acquired Technologies [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 2 years | |||||||
Computer Hardware and Software and Acquired Technologies [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 5 years | |||||||
Software Development Costs [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 3 years | |||||||
Software Development Costs [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 5 years | |||||||
Furniture, Fixtures and Other [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 5 years | |||||||
Furniture, Fixtures and Other [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 7 years | |||||||
Aircraft [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 15 years | |||||||
Aircraft [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful lives of property and equipment | 20 years |
Cash, Cash Equivalents and Ma37
Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Overnight holdings: | ||||
Money market funds (cash equivalents) | $ 247,720 | $ 271,840 | ||
Investment holdings: | ||||
Money market funds (cash equivalents) | 26,048 | 14,125 | ||
Marketable securities | 9,875 | 28,631 | ||
Total cash equivalents and marketable securities | 283,643 | 314,596 | ||
Cash held in demand accounts | 19,377 | 20,369 | ||
Outstanding checks | (23,607) | (29,878) | ||
Total cash, cash equivalents and marketable securities | 279,413 | 305,087 | ||
Cash and cash equivalents | 269,538 | 276,456 | $ 225,755 | $ 264,544 |
Marketable securities | 9,875 | 28,631 | ||
Withholding associated with federal and state income taxes, employment taxes and other payroll deductions included in cash balance | 185,700 | 152,100 | ||
Customer prepayments included in cash balance | 17,037 | 87,887 | ||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 273,768 | 285,965 | ||
Fair Value | 9,875 | 28,631 | ||
Total | 283,643 | 314,596 | ||
Available-for-sale Securities [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 9,875 | 28,626 | ||
Available-for-sale Securities, Gross Unrealized Gain | 3 | 16 | ||
Available-for-sale Securities, Gross Unrealized Loss | (3) | (11) | ||
Fair Value | 9,875 | 28,631 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||||
Less than one year | 7,341 | |||
One to five years | 2,534 | |||
Amortized cost | 9,875 | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Less than one year | 7,341 | |||
One to five years | 2,534 | |||
Fair Value | 9,875 | 28,631 | ||
Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 273,768 | 285,965 | ||
Fair Value | 0 | 0 | ||
Total | 273,768 | 285,965 | ||
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 | ||
Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 0 | 0 | ||
Fair Value | 9,875 | 28,631 | ||
Total | 9,875 | 28,631 | ||
Available-for-sale Securities [Abstract] | ||||
Fair Value | 9,875 | 28,631 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||||
Fair Value | 9,875 | 28,631 | ||
Level 3 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Money market funds | 0 | 0 | ||
Fair Value | 0 | 0 | ||
Total | 0 | 0 | ||
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 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable Additional Disclosures [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 1,100 | $ 1,200 |
Accounts receivable, due date prior to applicable payroll date | 1 day | |
Unbilled accounts receivable [Abstract] | ||
Accrued worksite employee payroll cost | $ 161,917 | 192,396 |
Unbilled revenues | 45,835 | 55,645 |
Customer prepayments | (17,037) | (87,887) |
Unbilled accounts receivable | $ 190,715 | $ 160,154 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Prepaid health insurance | $ 9,000 | $ 9,000 |
Deposits – health insurance | 3,700 | 3,700 |
Deposits – workers’ compensation | $ 136,462 | $ 113,934 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Goodwill and Other Intangible Assets [Line Items] | |||||||
Goodwill and Other Intangibles Impairment | $ 0 | ||||||
Goodwill and Intangible Asset Impairment | $ 2,500,000 | $ 3,300,000 | |||||
Impairment charges and other | $ (600,000) | $ 1,300,000 | $ 9,800,000 | 10,480,000 | $ 3,687,000 | 3,342,000 | |
Gross Carrying Amount [Roll Forward] | |||||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||||||
Beg Bal Total gross carrying amount and aggregate goodwill acquired | 27,768,000 | 27,768,000 | |||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
End Bal Total gross carrying amount and aggregate goodwill acquired | 27,768,000 | 27,768,000 | 27,768,000 | ||||
Accumulated amortization [Abstract] | |||||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (869,000) | (1,500,000) | (2,000,000) | ||||
Total accumulated amortization and accumulated impairment [Abstract] | |||||||
Beg Bal Total accumulated amortization and accumulated impairment | (13,311,000) | (13,311,000) | |||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (869,000) | (1,500,000) | (2,000,000) | ||||
End Bal Total accumulated amortization and accumulated impairment | (14,180,000) | (14,180,000) | (13,311,000) | ||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||
Amortization Expense | (869,000) | (1,500,000) | (2,000,000) | ||||
Beg Bal Goodwill and other intangible assets, net | 14,457,000 | 14,457,000 | |||||
Goodwill and Other Intangibles Impairment | 0 | ||||||
End Bal Goodwill and other intangible assets, net | 13,588,000 | 13,588,000 | 14,457,000 | ||||
Amortization [Abstract] | |||||||
Amortization Expense | (869,000) | (1,500,000) | $ (2,000,000) | ||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 500,000 | 500,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 300,000 | 300,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 36,000 | 36,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 12,000 | 12,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 7,000 | 7,000 | |||||
Trademarks [Member] | |||||||
Gross Carrying Amount [Roll Forward] | |||||||
Beg Bal Finite-Lived Intangible Assets, Gross | 220,000 | 220,000 | |||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
End Bal Finite-Lived Intangible Assets, Gross | 220,000 | 220,000 | 220,000 | ||||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
Accumulated amortization [Abstract] | |||||||
Beg Bal Finite-Lived Intangible Assets, Accumulated Amortization | (62,000) | (62,000) | |||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (39,000) | ||||||
End Bal Finite-Lived Intangible Assets, Accumulated Amortization | (101,000) | (101,000) | (62,000) | ||||
Total accumulated amortization and accumulated impairment [Abstract] | |||||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (39,000) | ||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||
Beg Bal Intangible Assets, Net (Excluding Goodwill) | 158,000 | 158,000 | |||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | ||||||
Amortization Expense | (39,000) | ||||||
End Bal Intangible Assets, Net (Excluding Goodwill) | 119,000 | 119,000 | 158,000 | ||||
Amortization [Abstract] | |||||||
Amortization Expense | (39,000) | ||||||
Customer Relationships [Member] | |||||||
Gross Carrying Amount [Roll Forward] | |||||||
Beg Bal Finite-Lived Intangible Assets, Gross | 6,392,000 | 6,392,000 | |||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
End Bal Finite-Lived Intangible Assets, Gross | 6,392,000 | 6,392,000 | 6,392,000 | ||||
Total gross carrying amount and aggregate goodwill acquired [Abstract] | |||||||
Goodwill and Other Intangibles Impairment, gross | 0 | ||||||
Accumulated amortization [Abstract] | |||||||
Beg Bal Finite-Lived Intangible Assets, Accumulated Amortization | (4,779,000) | (4,779,000) | |||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (830,000) | ||||||
End Bal Finite-Lived Intangible Assets, Accumulated Amortization | (5,609,000) | (5,609,000) | (4,779,000) | ||||
Total accumulated amortization and accumulated impairment [Abstract] | |||||||
Adj to accumulated amortization and accumulated impairment for goodwill and other intangibles | 0 | ||||||
Amortization Expense | (830,000) | ||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||
Beg Bal Intangible Assets, Net (Excluding Goodwill) | 1,613,000 | 1,613,000 | |||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | ||||||
Amortization Expense | (830,000) | ||||||
End Bal Intangible Assets, Net (Excluding Goodwill) | 783,000 | 783,000 | 1,613,000 | ||||
Amortization [Abstract] | |||||||
Amortization Expense | (830,000) | ||||||
Goodwill [Member] | |||||||
Aggregrate goodwill acquired [Roll Forward] | |||||||
Beg Bal Goodwill, Gross | 21,156,000 | 21,156,000 | |||||
End Bal Goodwill, Gross | 21,156,000 | 21,156,000 | 21,156,000 | ||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||
Beg Bal Goodwill, Impaired, Accumulated Impairment Loss | (8,470,000) | (8,470,000) | |||||
Goodwill, Impairment Loss | 0 | ||||||
End Bal Goodwill, Impaired, Accumulated Impairment Loss | (8,470,000) | (8,470,000) | (8,470,000) | ||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||
Beg Bal Goodwill, net balance | $ 12,686,000 | 12,686,000 | |||||
Goodwill, Impairment Loss | 0 | ||||||
End Bal Goodwill, net balance | $ 12,686,000 | $ 12,686,000 | $ 12,686,000 |
Other Asset Impairments Other41
Other Asset Impairments Other Asset Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Asset Impairment Charges [Abstract] | ||||||||
Impairment charges and other | $ (600) | $ 1,300 | $ 9,800 | $ 10,480 | $ 3,687 | $ 3,342 | ||
Texas Sales and Use Tax Assessment Settlement Amount | $ 200 | 200 | ||||||
Proceeds from sale of aircraft | $ 12,159 | $ 0 | $ 0 | |||||
Cost Method Investments | $ 2,800 | |||||||
TRE Impairment | $ 2,700 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Jan. 07, 2016 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility | $ 125 | |||
Maximum borrowing capacity | $ 150 | |||
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 | $ 0.6 | |||
Special dividend | $ 50.7 | $ 25.7 | ||
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] | ||||
Alternate base rates, applicable margins [Abstract] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 104.4 | |||
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax liabilities: | |||
Prepaid assets | $ (3,952,000) | $ (9,291,000) | |
Depreciation | (1,741,000) | (8,083,000) | |
Software development costs | (2,699,000) | (2,252,000) | |
Total deferred tax liabilities | (8,392,000) | (19,626,000) | |
Deferred tax assets: | |||
Accrued incentive compensation | 8,818,000 | 7,204,000 | |
Net operating loss carryforward | 1,463,000 | 1,556,000 | |
Workers’ compensation accruals | 7,586,000 | 6,308,000 | |
Accrued rent | 1,229,000 | 1,058,000 | |
Stock-based compensation | 4,553,000 | 3,615,000 | |
Intangibles | 1,159,000 | 1,575,000 | |
Minority investment impairment | 1,016,000 | 1,003,000 | |
Other | 564,000 | 551,000 | |
Total deferred tax assets | 26,388,000 | 22,870,000 | |
Valuation allowance | (1,020,000) | (1,003,000) | |
Total net deferred tax assets | 25,368,000 | 21,867,000 | |
Net deferred tax assets | 16,976,000 | 2,241,000 | |
Current income tax expense: | |||
Federal | 35,221,000 | 18,034,000 | $ 20,476,000 |
State | 5,741,000 | 3,322,000 | 3,512,000 |
Total current income tax expense | 40,962,000 | 21,356,000 | 23,988,000 |
Deferred income tax (benefit) expense: | |||
Federal | (13,632,000) | (1,764,000) | (2,258,000) |
State | (1,101,000) | 31,000 | (30,000) |
Total deferred income tax benefit | (14,733,000) | (1,733,000) | (2,288,000) |
Total income tax expense | 26,229,000 | 19,623,000 | 21,700,000 |
Net income tax expense (benefit) on nonqualified stock option exercises | $ 2,216,000 | 488,000 | 1,259,000 |
Prior Period Reclassification Adjustment | 6,300,000 | ||
Reconciliation of income tax expense [Abstract] | |||
Assumed income tax rate (in hundredths) | 35.00% | ||
Expected income tax expense at 35% | $ 22,967,000 | 16,670,000 | 18,806,000 |
State income taxes, net of federal benefit | 2,696,000 | 2,204,000 | 2,286,000 |
Nondeductible expenses | 1,669,000 | 1,939,000 | 1,993,000 |
Section 199 benefits | (627,000) | (592,000) | (2,531,000) |
Expense Management non-cash impairment | 0 | 0 | 797,000 |
Valuation allowance related to TRE impairment | 0 | 0 | 938,000 |
Research and development credit | (530,000) | (455,000) | (534,000) |
Other, net | 54,000 | (143,000) | (55,000) |
Total income tax expense | 26,229,000 | 19,623,000 | 21,700,000 |
Business Acquisition [Line Items] | |||
Section 199 tax benefits for the tax year 2013 | (500,000) | ||
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 | $ 3,900,000 | ||
Minimum [Member] | ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforwards, expiration date | Jan. 1, 2022 | ||
Maximum [Member] | ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforwards, expiration date | Jan. 1, 2030 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Stockholders' Equity Note [Abstract] | |||||||||||||
Repurchase of treasury stock (in shares) | 1,244,433 | 580,804 | |||||||||||
Shares withheld for tax withholding obligations for the vesting of restricted stock awards (in shares) | 114,523 | 112,458 | |||||||||||
Remaining number of shares authorized to be repurchased (in shares) | 524,332 | 524,332 | |||||||||||
Payments of Dividends [Abstract] | |||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.17 | ||||||
Special dividends declared, per share of commong stock (in dollars per share) | $ 0 | $ 2 | |||||||||||
Payments of Ordinary Dividends, Common Stock | $ 21,153 | $ 69,493 | $ 17,386 | ||||||||||
Special dividend | $ 50,700 | $ 25,700 | |||||||||||
Total regular and special quarterly dIvidend declared, per share of common stock (in dollars per share) | [1] | $ 2.19 | |||||||||||
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 $2.00 per share special dividend |
Incentive Plans (Details)
Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation [Abstract] | |||
Number of common shares available for grant under the incentive plan (in shares) | 997,059 | ||
Allocated Share-based Compensation Expense | $ 13,345 | $ 11,053 | $ 11,103 |
Stock option activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 43,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (15,000) | ||
Canceled (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 28,000 | 43,000 | |
Exercisable, ending balance (in shares) | 28,000 | ||
Weighted average exercise price [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $ 28.04 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 25.14 | ||
Canceled (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | 29.56 | $ 28.04 | |
Exercisable, ending balance (in dollars per share) | $ 29.56 | ||
Weighted average remaining contractual life, stock option awards outstanding at end of year (in years) | 4 years 5 months | ||
Weighted average remaining contractual life, stock option awards exercisable at end of year (in years) | 4 years 5 months | ||
Aggregate intrinsic value of options outstanding, ending balance | $ 527 | ||
Aggregate intrinsic value of options exercisable ending balance | 527 | ||
Intrinsic value of options exercised during the year | $ 300 | $ 300 | 1,500 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 3 years | ||
Share-based compensation expense | $ 13,345 | 11,053 | 11,103 |
Tax benefits (expense) associated with stock-based compensation | $ 5,300 | $ 4,600 | $ 4,500 |
Employee Stock Purchase Plan (ESPP) [Abstract] | |||
ESPP Stock Issued During Period (in shares) | 24,000 | 37,000 | 34,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares vested during the year | $ 18,600 | $ 10,800 | $ 12,300 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 14,400 | ||
Unrecognized compensation expense, period for recognition (in months) | 23 months | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
Balance at 12/31/2014 (in shares) | 740,000 | ||
Granted (in shares) | 271,000 | ||
Vested (in shares) | (368,000) | ||
Canceled (in shares) | (25,000) | ||
Balance at 12/31/2015 (in shares) | 618,000 | 740,000 | |
Weighted Average Grant Date Fair Value, Equity Instruments Other than Options [Abstract] | |||
Balance at 12/31/2014 (in dollars per share) | $ 28.84 | ||
Granted (in dollars per share) | 51.54 | $ 28.22 | $ 29.25 |
Vested (in dollars per share) | 29.71 | ||
Canceled (in dollars per share) | 36.68 | ||
Balance at 12/31/2015 (in dollars per share) | $ 37.98 | $ 28.84 | |
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 3 years | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 5 years | ||
Long-Term Incentive Program Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 6,000 | ||
Maximum shares eligible to receive under long-term incentive plan (LTIP) granted during the year | 201,800 | ||
Maximum shares eligible to receive under LTIP as of balance sheet date | 201,800 | ||
NumberofShareExpectedtoVestBasedOnCurrentEstimatesofPerformanceAchievment | 153,146 | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
Balance at 12/31/2014 (in shares) | 0 | ||
Granted (in shares) | 103,450 | ||
Vested (in shares) | 0 | ||
Canceled (in shares) | (2,550) | ||
Balance at 12/31/2015 (in shares) | 100,900 | 0 | |
Weighted Average Grant Date Fair Value, Equity Instruments Other than Options [Abstract] | |||
Balance at 12/31/2014 (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 52.80 | ||
Vested (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 0 | ||
Balance at 12/31/2015 (in dollars per share) | $ 52.80 | $ 0 | |
Long-Term Incentive Program Awards [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 3 years |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 6,339 | $ 11,950 | $ 7,314 | $ 13,787 | $ 8,164 | $ 8,385 | $ 1,891 | $ 9,564 | $ 39,390 | $ 28,004 | $ 32,032 |
Less distributed and undistributed earnings allocated to participating securities | 981 | 2,002 | 916 | ||||||||
Net income allocated to common shares | $ 38,409 | $ 26,002 | $ 31,116 | ||||||||
Weighted average common shares outstanding | 24,308 | 24,708 | 24,850 | ||||||||
Incremental shares from assumed conversions of common stock options | 7 | 4 | 22 | ||||||||
Adjusted weighted average common shares outstanding | 24,315 | 24,712 | 24,872 | ||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 0 | 4 | 8 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rental expense | $ 13,600 | $ 13,400 | $ 13,900 |
Operating leases minimum payments due [Abstract] | |||
2,016 | 13,961 | ||
2,017 | 11,196 | ||
2,018 | 9,423 | ||
2,019 | 6,366 | ||
2,020 | 4,200 | ||
Thereafter | 3,312 | ||
Total minimum lease payments | $ 48,458 |
Commitments and Contingencies48
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
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] | ||
2,016 | $ 20,554 | [1] |
2,017 | 6,245 | |
2,018 | 4,695 | |
2,019 | 1,774 | |
2,020 | 1,493 | |
Thereafter | 1,200 | |
Total obligations | $ 35,961 | |
[1] | (1) Includes $13 million related to the construction of a new facility on our corporate campus. |
Quarterly Financial Data (Una49
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Impairment charges and other | $ (600) | $ 1,300 | $ 9,800 | $ 10,480 | $ 3,687 | $ 3,342 | ||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Revenues | 650,011 | $ 626,286 | 627,838 | 699,479 | $ 595,865 | $ 560,303 | $ 564,621 | $ 636,999 | 2,603,614 | 2,357,788 | 2,256,112 | |||||
Gross profit | 97,045 | 106,743 | 104,219 | 129,860 | 101,359 | 100,817 | 95,453 | 106,176 | 437,867 | 403,805 | 393,251 | |||||
Operating income | 10,026 | [1] | 19,936 | 12,217 | [2] | 23,520 | [3] | 13,009 | [4] | 14,460 | 3,414 | [5] | 16,591 | 65,699 | 47,474 | 56,223 |
Net income | $ 6,339 | $ 11,950 | $ 7,314 | $ 13,787 | $ 8,164 | $ 8,385 | $ 1,891 | $ 9,564 | $ 39,390 | $ 28,004 | $ 32,032 | |||||
Basic net income per share of common stock (in dollars per share) | $ 0.26 | $ 0.48 | $ 0.29 | $ 0.54 | $ 0.27 | [6] | $ 0.33 | $ 0.07 | $ 0.37 | $ 1.58 | $ 1.05 | $ 1.25 | ||||
Diluted net income per share (in dollars per share) | $ 0.26 | $ 0.48 | $ 0.29 | $ 0.54 | $ 0.27 | [6] | $ 0.33 | $ 0.07 | $ 0.37 | $ 1.58 | $ 1.05 | $ 1.25 | ||||
Goodwill and Intangible Asset Impairment | $ 2,500 | $ 3,300 | ||||||||||||||
Asset impairment charge due to change in office consolidation plans | $ 1,200 | |||||||||||||||
[1] | Includes a reduction to non-cash impairment and other charges in the fourth quarter of 2015 of $0.6 million. Please read Note 6, “Other Asset Impairments,” for additional information. | |||||||||||||||
[2] | Includes non-cash impairment and other charges in the second quarter of 2015 of $1.3 million. Please read Note 6, “Other Asset Impairments,” for additional information. | |||||||||||||||
[3] | Includes non-cash impairment and other charges in the first quarter of 2015 of $9.8 million. Please read Note 6, “Other Asset Impairments,” for additional information. | |||||||||||||||
[4] | Includes a $1.2 million non-cash charge in the fourth quarter of 2014. Please read Note 1, “Accounting Policies,” for additional information. | |||||||||||||||
[5] | Includes a non-cash impairment charge in the first quarter of 2014 of $2.5 million. Please read Note 5, “Goodwill and Other Intangible 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 11, “Net Income Per Share,” for additional information. |
Subsequent Events Subsequent 50
Subsequent Events Subsequent Events (Details) $ / shares in Units, $ in Millions | 1 Months Ended |
Jan. 07, 2016USD ($)$ / sharesshares | |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Share Price | $ / shares | $ 50 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Share Price | $ / shares | $ 47.50 |
MaxAmountOfTenderOfferForRepurchaseOfShares | $ 125 |
Stock Repurchased and Retired During Period, Shares | shares | 3,013,531 |
Stock Repurchased and Retired During Period, Value | $ 143.1 |
TransactionCostsRelatedtoTenderOffer | 1.1 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 104.4 |
Subsequent Event [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Share Price | $ / shares | $ 43.50 |