Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 25, 2016 | |
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 Common Stock, Shares Outstanding | 21,395,482 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 271,573 | $ 269,538 |
Restricted cash | 41,226 | 37,418 |
Marketable securities | 1,881 | 9,875 |
Accounts receivable, net: | ||
Trade | 3,977 | 7,691 |
Unbilled | 236,422 | 190,715 |
Other | 4,613 | 2,259 |
Prepaid insurance | 26,545 | 7,417 |
Other current assets | 18,554 | 17,135 |
Income taxes receivable | 6,690 | 0 |
Total current assets | 611,481 | 542,048 |
Property and equipment: | ||
Land | 5,214 | 5,214 |
Buildings and improvements | 77,715 | 70,273 |
Computer hardware and software | 93,458 | 90,654 |
Software development costs | 48,634 | 45,762 |
Furniture, fixtures and other | 40,195 | 39,919 |
Total property and equipment, gross | 265,216 | 251,822 |
Accumulated depreciation and amortization | (197,545) | (190,063) |
Total property and equipment, net | 67,671 | 61,759 |
Other assets: | ||
Prepaid health insurance | 9,000 | 9,000 |
Deposits – health insurance | 4,700 | 3,700 |
Deposits – workers’ compensation | 130,731 | 136,462 |
Goodwill and other intangible assets, net | 13,338 | 13,588 |
Deferred income taxes, net | 7,562 | 16,976 |
Other assets | 2,012 | 1,379 |
Total other assets | 167,343 | 181,105 |
Total assets | 846,495 | 784,912 |
Current liabilities: | ||
Accounts payable | 3,546 | 5,381 |
Payroll taxes and other payroll deductions payable | 141,213 | 205,393 |
Accrued worksite employee payroll cost | 277,376 | 161,917 |
Accrued health insurance costs | 26,920 | 13,643 |
Accrued workers’ compensation costs | 43,294 | 39,053 |
Accrued corporate payroll and commissions | 24,375 | 39,103 |
Other accrued liabilities | 24,823 | 20,250 |
Income taxes payable | 0 | 2,971 |
Total current liabilities | 541,547 | 487,711 |
Noncurrent liabilities: | ||
Accrued workers’ compensation costs | 135,681 | 124,746 |
Long-term debt | 104,400 | 0 |
Total noncurrent liabilities | 240,081 | 124,746 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 277 | 308 |
Additional paid-in capital | 4,428 | 144,701 |
Treasury stock, at cost | (205,018) | (205,325) |
Retained earnings | 265,180 | 232,771 |
Total stockholders’ equity | 64,867 | 172,455 |
Total liabilities and stockholders’ equity | $ 846,495 | $ 784,912 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues (gross billings of $4.163 billion, $3.703 billion, $8.727 billion and $7.643 billion less worksite employee payroll cost of $3.456 billion, $3.075 billion, $7.217 billion and $6.316 billion, respectively) | $ 707,332 | $ 627,838 | $ 1,509,740 | $ 1,327,317 |
Direct costs: | ||||
Payroll taxes, benefits and workers’ compensation costs | 594,073 | 523,619 | 1,246,465 | 1,093,238 |
Gross profit | 113,259 | 104,219 | 263,275 | 234,079 |
Operating expenses: | ||||
Salaries, wages and payroll taxes | 55,998 | 50,234 | 114,013 | 106,982 |
Stock-based compensation | 4,761 | 4,041 | 8,336 | 6,464 |
Commissions | 4,335 | 4,103 | 8,616 | 8,407 |
Advertising | 6,712 | 6,883 | 9,759 | 10,064 |
General and administrative expenses | 21,254 | 20,838 | 45,038 | 45,430 |
Impairment charges and other | 0 | 1,313 | 0 | 11,120 |
Depreciation and amortization | 4,176 | 4,590 | 8,447 | 9,875 |
Total operating expenses | 97,236 | 92,002 | 194,209 | 198,342 |
Operating income | 16,023 | 12,217 | 69,066 | 35,737 |
Other income (expense): | ||||
Interest income | 293 | 84 | 592 | 191 |
Interest expense | (650) | (124) | (1,287) | (224) |
Income before income tax expense | 15,666 | 12,177 | 68,371 | 35,704 |
Income tax expense | 5,953 | 4,863 | 25,965 | 14,603 |
Net income | 9,713 | 7,314 | 42,406 | 21,101 |
Less distributed and undistributed earnings allocated to participating securities | 229 | 179 | 962 | 521 |
Net income allocated to common shares | $ 9,484 | $ 7,135 | $ 41,444 | $ 20,580 |
Basic net income per share of common stock (in dollars per share) | $ 0.45 | $ 0.29 | $ 1.98 | $ 0.83 |
Diluted net income per share of common stock (in dollars per share) | $ 0.45 | $ 0.29 | $ 1.98 | $ 0.83 |
CONSOLIDATED STATEMENTS OF OPE4
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Gross billings | $ 4,163 | $ 3,703 | $ 8,727 | $ 7,643 |
Worksite employee payroll costs | $ 3,456 | $ 3,075 | $ 7,217 | $ 6,316 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2015 | $ 172,455 | $ 308 | $ 144,701 | $ (205,325) | $ 232,771 |
Purchase of treasury stock, at cost | (4,790) | 0 | 0 | (4,790) | 0 |
Repurchase of common stock | (144,263) | (31) | (144,232) | 0 | 0 |
Stock-based compensation expense | 8,336 | 0 | 3,689 | 4,647 | 0 |
Other | 720 | 0 | 270 | 450 | 0 |
Dividends paid | (9,997) | 0 | 0 | 0 | (9,997) |
Net income | 42,406 | 0 | 0 | 0 | 42,406 |
Balance at Jun. 30, 2016 | $ 64,867 | $ 277 | $ 4,428 | $ (205,018) | $ 265,180 |
Balance (shares) at Dec. 31, 2015 | 30,758 | ||||
Repurchase of common stock (shares) | (3,014) | ||||
Dividends paid (shares) | 0 | ||||
Balance (shares) at Jun. 30, 2016 | 27,744 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 42,406 | $ 21,101 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,447 | 9,875 |
Impairment charges and other | 0 | 11,120 |
Amortization of marketable securities | 52 | 629 |
Stock-based compensation | 8,336 | 6,464 |
Deferred income taxes | 9,414 | (5,250) |
Changes in operating assets and liabilities: | ||
Restricted cash | (3,808) | (4,847) |
Accounts receivable | (44,347) | (90,515) |
Prepaid insurance | (19,128) | 4,842 |
Other current assets | (1,419) | 2,127 |
Other assets | 4,104 | 3,136 |
Accounts payable | (1,835) | (2,291) |
Payroll taxes and other payroll deductions payable | (64,180) | (53,466) |
Accrued worksite employee payroll expense | 115,459 | 35,695 |
Accrued health insurance costs | 13,277 | (12,045) |
Accrued workers’ compensation costs | 15,176 | 12,139 |
Accrued corporate payroll, commissions and other accrued liabilities | (11,627) | (7,349) |
Income taxes payable/receivable | (9,661) | (2,844) |
Total adjustments | 18,260 | (92,580) |
Net cash provided by (used in) operating activities | 60,666 | (71,479) |
Marketable securities: | ||
Purchases | (310) | (5,379) |
Proceeds from dispositions | 7,268 | 6,877 |
Proceeds from maturities | 990 | 4,851 |
Property and equipment: | ||
Purchases | (12,647) | (5,850) |
Net cash provided by (used in) investing activities | (4,699) | 499 |
Cash flows from financing activities: | ||
Purchase of treasury stock | (4,790) | (31,370) |
Payments for Repurchase of Common Stock | (144,263) | 0 |
Dividends paid | (9,997) | (10,407) |
Proceeds from the exercise of stock options | 0 | 374 |
Income tax benefit from stock-based compensation | 0 | 2,972 |
Borrowings under long-term debt agreement | 124,400 | 0 |
Principal repayments | (20,000) | 0 |
Other | 718 | 683 |
Net cash used in financing activities | (53,932) | (37,748) |
Net increase (decrease) in cash and cash equivalents | 2,035 | (108,728) |
Cash and cash equivalents at beginning of period | 269,538 | 276,456 |
Cash and cash equivalents at end of period | $ 271,573 | $ 167,728 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Insperity, Inc., a Delaware corporation (“Insperity,” “we,” “our,” and “us”), provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Our most comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as Workforce Optimization ® and Workforce Synchronization TM solutions (together, our “PEO HR Outsourcing solutions”), which encompass a broad range of HR 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 . In addition to our PEO HR Outsourcing solutions, we offer a number of other business performance solutions, including Human Capital Management, Payroll Software, 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. The Consolidated Financial Statements include the accounts of Insperity and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) 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. The accompanying Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements at and for the year ended December 31, 2015 . Our Consolidated Balance Sheet at December 31, 2015 has been derived from the audited financial statements at that date, but does not include all of the information or footnotes required by GAAP for complete financial statements. Our Consolidated Balance Sheet at June 30, 2016 and our Consolidated Statements of Operations for the three and six month periods ended June 30, 2016 and 2015 , our Consolidated Statements of Cash Flows for the six month periods ended June 30, 2016 and 2015 , and our Consolidated Statement of Stockholders’ Equity for the six month period ended June 30, 2016 , have been prepared by us without audit. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows, have been made. Certain prior year amounts have been reclassified to conform to the 2016 presentation. The results of operations for the interim periods are not necessarily indicative of the operating results for a full year or of future operations. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. Accounting Policies 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. 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 costs of the United plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense in our Consolidated Statements of Operations. The estimated incurred claims are based upon: (i) the level of claims processed during the 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 $4.5 million as of June 30, 2016 , and is reported as a long-term asset. As of June 30, 2016 , Plan Costs were less than the net premiums paid and owed to United by $22.9 million . As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $13.9 million difference is included in prepaid insurance, a current asset, in our Consolidated Balance Sheets. The premiums owed to United at June 30, 2016 were $23.0 million , which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. Our benefits costs incurred in the first six months of 2016 included costs of $3.7 million for changes in estimated run-off related to prior periods. Workers’ Compensation Costs Our workers’ compensation coverage has been provided through an arrangement with the Chubb Group of Insurance Companies (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred regardless of whether we satisfy our responsibilities. Under the Chubb Program, we bear the economic burden for the first $1 million layer of claims per occurrence, as well as a maximum aggregate amount of $5 million per policy year for claim amounts that exceed $1 million . Chubb 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. 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 the 2016 period and the 2015 period 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 paid workers’ compensation claims: Six Months Ended 2016 2015 (in thousands) Beginning balance, January 1, $ 162,184 $ 136,088 Accrued claims 35,045 32,720 Present value discount (1,274 ) (1,189 ) Paid claims (19,038 ) (19,794 ) Ending balance $ 176,917 $ 147,825 Current portion of accrued claims $ 41,236 $ 48,887 Long-term portion of accrued claims 135,681 98,938 $ 176,917 $ 147,825 The current portion of accrued workers’ compensation costs on our Consolidated Balance Sheets at June 30, 2016 includes $2.1 million of workers’ compensation administrative fees. As of June 30, 2016 and 2015 , the undiscounted accrued workers’ compensation costs were $187.0 million and $157.4 million , respectively. At the beginning of each policy period, the workers’ compensation 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 - workers’ compensation, a long-term asset in our Consolidated Balance Sheets. During the first six months of 2016, we received $12.8 million for the return of excess claim funds related to the workers’ compensation program. This resulted in a net decrease to deposits. As of June 30, 2016 , we had restricted cash of $41.2 million and deposits - workers’ compensation of $130.7 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 is included in long-term liabilities on our Consolidated Balance Sheets. New Accounting Pronouncements We believe we have implemented the accounting pronouncements with a material impact on our financial statements and do not believe there are any new or pending pronouncements that will materially impact our financial position or results of operations, other than discussed below. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under ASU No. 2014-09, an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for annual reporting periods ending after December 15, 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 April 2015, FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software providing guidance on the accounting for fees paid by a customer in a cloud computing arrangement, including whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer is required to account for the software license consistent with the acquisition of other software licenses. Conversely, if the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this guidance did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires recognition of lease assets and lease liabilities for leases previously classified as operating leases. The guidance is effective for fiscal years beginning after December 15, 2018. We are currently reviewing the guidance and assessing the impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based compensation payments, including (i) permitting the election of estimated or actual forfeitures for share grants, (ii) allowing excess tax benefits for share-based payments to be recorded as a reduction of income taxes reflected in operating cash flows in place of excess tax benefits currently recorded in equity and as financing activity in the cash flow statement, and (iii) providing for statutory withholding requirements. This guidance is effective for annual and interim reporting periods for public entities beginning after December 15, 2016; however, it can be elected early in any interim or annual period. We have elected to prospectively adopt this pronouncement for calendar year 2016, resulting in the recognition of an income tax benefit of $1.0 million , or $0.05 per diluted share in the first quarter of 2016 related to excess tax benefits from vesting of restricted stock awards. Prior to the adoption of this pronouncement excess tax benefits were required to be reported as an increase in additional paid in capital. Prior periods have not been adjusted. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 6 Months Ended |
Jun. 30, 2016 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |
Cash, Cash Equivalents and Marketable Securities | 3. Cash, Cash Equivalents and Marketable Securities The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments: June 30, December 31, (in thousands) Overnight Holdings Money market funds (cash equivalents) $ 233,080 $ 247,720 Investment Holdings Money market funds (cash equivalents) 24,010 26,048 Marketable securities 1,881 9,875 258,971 283,643 Cash held in demand accounts 24,666 19,377 Outstanding checks (10,183 ) (23,607 ) Total cash, cash equivalents and marketable securities $ 273,454 $ 279,413 Cash and cash equivalents $ 271,573 $ 269,538 Marketable securities 1,881 9,875 Total cash, cash equivalents and marketable securities $ 273,454 $ 279,413 Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles. Included in the cash, cash equivalents and marketable securities at June 30, 2016 and December 31, 2015 , are $121.4 million and $185.7 million , respectively, of funds associated with federal and state income tax withholdings, employment taxes and other payroll deductions, as well as $100.7 million and $17.0 million in client prepayments, respectively. We account for our financial assets in accordance with Accounting Standard Codification 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 table summarizes the levels of fair value measurements of our financial assets: Fair Value Measurements (in thousands) June 30, Level 1 Level 2 Level 3 Money market funds $ 257,090 $ 257,090 $ — $ — Municipal bonds 1,881 — 1,881 — Total $ 258,971 $ 257,090 $ 1,881 $ — 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 $ — The municipal bond securities valued as Level 2 investments are primarily pre-refunded municipal bonds that are secured by escrow funds containing U.S. Government securities. Our valuation techniques used to measure fair value for these securities during the period consisted primarily of third party pricing services that utilized actual market data such as trades of comparable bond issues, broker/dealer quotations for the same or similar investments in active markets and other observable inputs. The following is a summary of our available-for-sale marketable securities: Amortized Gross Gross Estimated (in thousands) June 30, 2016 Municipal bonds $ 1,879 $ 2 $ — $ 1,881 December 31, 2015 Municipal bonds $ 9,875 $ 3 $ (3 ) $ 9,875 As of June 30, 2016 , the contractual maturities of our marketable securities were as follows: Amortized Estimated (in thousands) Less than one year $ 1,351 $ 1,351 One to five years 528 530 Total $ 1,879 $ 1,881 |
Impairment Charges and Other Im
Impairment Charges and Other Impairment Charges and Other (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges | 4. Impairment Charges and Other 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. The fair value of assets held for sale of $13.5 million was determined based on the estimated selling price less costs incurred to sell and was classified as Level 2 in the fair value hierarchy. 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. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | 5. Long-Term Debt We have a revolving credit facility (the “Facility”), which was increased from $125 million to $200 million in the first quarter of 2016. The Facility may be further increased to $250 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, stock repurchases 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. In January 2016, we had net borrowings of $104.4 million to fund a portion of the purchase price of our modified Dutch auction tender offer. In addition, as of June 30, 2016 , we had an outstanding $1.0 million letter of credit issued under the Facility. As of June 30, 2016 , our outstanding balance on the Facility was $104.4 million . 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% . The interest rate at June 30, 2016 was 2.19% . 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. We were in compliance with all financial covenants under the Credit Agreement at June 30, 2016 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders Equity | 6. Stockholders' Equity During the first six months of 2016 , we repurchased or withheld an aggregate of 3.1 million shares of our common stock, as described below. Tender Offer for Common Stock 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. 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 and other factors. In May 2016, the Board increased the authorized number of shares to be repurchased under the Repurchase Program by one million . During the six months ended June 30, 2016 , no shares were repurchased under the Repurchase Program. As of June 30, 2016 , we were authorized to repurchase an additional 1,524,332 shares under the Repurchase Program. Withheld Shares During the six months ended, June 30, 2016 , we withheld 100,595 shares to satisfy tax withholding obligations for the vesting of restricted stock awards. Dividends The Board declared quarterly dividends as follows: 2016 2015 (amounts per share) First quarter $ 0.22 $ 0.19 Second quarter 0.25 0.22 During the six months ended June 30, 2016 and 2015 , we paid dividends totaling $10.0 million and $10.4 million , respectively. |
Long-Term Incentive Program Lon
Long-Term Incentive Program Long-Term Incentive Program (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | 7. Long-Term Incentive Program On March 30, 2015, we adopted the Insperity, Inc. Long-Term Incentive Program (the “LTIP”) 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. 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 in the case of performance condition awards. In the case of market condition awards, the fair value is determined using a Monte Carlo lattice model approach at the date of grant. The compensation expense for such awards is recognized on a straight-line basis over the vesting term. For performance condition awards, 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. The following is a summary of LTIP award activity for 2016: Number of Performance Units at Target Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Unvested - December 31, 2015 100,900 $ 52.80 183,401 Granted 118,525 59.13 237,050 Vested — — — Canceled (2,550 ) 52.80 (4,635 ) Unvested - June 30, 2016 216,875 56.26 415,816 As of June 30, 2016 , we estimate 178,770 shares and 127,429 shares will vest with $5.4 million and $6.0 million in unamortized compensation expense related to the 2015 and 2016 grants, respectively. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 8. 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 include 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. 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: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Net income $ 9,713 $ 7,314 $ 42,406 $ 21,101 Less distributed and undistributed earnings allocated to participating securities (229 ) (179 ) (962 ) (521 ) Net income allocated to common shares $ 9,484 $ 7,135 $ 41,444 $ 20,580 Weighted average common shares outstanding 20,869 24,766 20,921 24,741 Incremental shares from assumed conversions of common stock options 15 7 10 8 Adjusted weighted average common shares outstanding 20,884 24,773 20,931 24,749 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Worksite Employee 401(k) Retirement Plan Class Action Litigation In December 2015, a class action lawsuit was filed against us and our third party discretionary trustee of the Insperity 401(k) retirement plan available to eligible worksite employees (the “Plan”) in the United States District Court for the Northern District of Georgia, Atlanta Division on behalf of Plan participants. 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, by failing to monitor other fiduciaries and by making imprudent investment choices. We believe we have 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. We are a defendant in various other 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, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements We believe we have implemented the accounting pronouncements with a material impact on our financial statements and do not believe there are any new or pending pronouncements that will materially impact our financial position or results of operations, other than discussed below. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under ASU No. 2014-09, an entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 is effective for annual reporting periods ending after December 15, 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 April 2015, FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software providing guidance on the accounting for fees paid by a customer in a cloud computing arrangement, including whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer is required to account for the software license consistent with the acquisition of other software licenses. Conversely, if the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this guidance did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires recognition of lease assets and lease liabilities for leases previously classified as operating leases. The guidance is effective for fiscal years beginning after December 15, 2018. We are currently reviewing the guidance and assessing the impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based compensation payments, including (i) permitting the election of estimated or actual forfeitures for share grants, (ii) allowing excess tax benefits for share-based payments to be recorded as a reduction of income taxes reflected in operating cash flows in place of excess tax benefits currently recorded in equity and as financing activity in the cash flow statement, and (iii) providing for statutory withholding requirements. This guidance is effective for annual and interim reporting periods for public entities beginning after December 15, 2016; however, it can be elected early in any interim or annual period. We have elected to prospectively adopt this pronouncement for calendar year 2016, resulting in the recognition of an income tax benefit of $1.0 million , or $0.05 per diluted share in the first quarter of 2016 related to excess tax benefits from vesting of restricted stock awards. Prior to the adoption of this pronouncement excess tax benefits were required to be reported as an increase in additional paid in capital. Prior periods have not been adjusted. |
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. 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 costs of the United plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense in our Consolidated Statements of Operations. The estimated incurred claims are based upon: (i) the level of claims processed during the 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 $4.5 million as of June 30, 2016 , and is reported as a long-term asset. As of June 30, 2016 , Plan Costs were less than the net premiums paid and owed to United by $22.9 million . As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $13.9 million difference is included in prepaid insurance, a current asset, in our Consolidated Balance Sheets. The premiums owed to United at June 30, 2016 were $23.0 million , which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. Our benefits costs incurred in the first six months of 2016 included costs of $3.7 million for changes in estimated run-off related to prior periods. |
Workers' Compensation Costs | Workers’ Compensation Costs Our workers’ compensation coverage has been provided through an arrangement with the Chubb Group of Insurance Companies (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred regardless of whether we satisfy our responsibilities. Under the Chubb Program, we bear the economic burden for the first $1 million layer of claims per occurrence, as well as a maximum aggregate amount of $5 million per policy year for claim amounts that exceed $1 million . Chubb 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. 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 the 2016 period and the 2015 period 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 paid workers’ compensation claims: Six Months Ended 2016 2015 (in thousands) Beginning balance, January 1, $ 162,184 $ 136,088 Accrued claims 35,045 32,720 Present value discount (1,274 ) (1,189 ) Paid claims (19,038 ) (19,794 ) Ending balance $ 176,917 $ 147,825 Current portion of accrued claims $ 41,236 $ 48,887 Long-term portion of accrued claims 135,681 98,938 $ 176,917 $ 147,825 The current portion of accrued workers’ compensation costs on our Consolidated Balance Sheets at June 30, 2016 includes $2.1 million of workers’ compensation administrative fees. As of June 30, 2016 and 2015 , the undiscounted accrued workers’ compensation costs were $187.0 million and $157.4 million , respectively. At the beginning of each policy period, the workers’ compensation 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 - workers’ compensation, a long-term asset in our Consolidated Balance Sheets. During the first six months of 2016, we received $12.8 million for the return of excess claim funds related to the workers’ compensation program. This resulted in a net decrease to deposits. As of June 30, 2016 , we had restricted cash of $41.2 million and deposits - workers’ compensation of $130.7 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 is included in long-term liabilities on our Consolidated Balance Sheets. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Activity and balances related to incurred but not paid workers' compensation claims | The following table provides the activity and balances related to incurred but not paid workers’ compensation claims: Six Months Ended 2016 2015 (in thousands) Beginning balance, January 1, $ 162,184 $ 136,088 Accrued claims 35,045 32,720 Present value discount (1,274 ) (1,189 ) Paid claims (19,038 ) (19,794 ) Ending balance $ 176,917 $ 147,825 Current portion of accrued claims $ 41,236 $ 48,887 Long-term portion of accrued claims 135,681 98,938 $ 176,917 $ 147,825 |
Cash, Cash Equivalents and Ma18
Cash, Cash Equivalents and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |
Summary of investments in cash, cash equivalents and marketable securities | The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments: June 30, December 31, (in thousands) Overnight Holdings Money market funds (cash equivalents) $ 233,080 $ 247,720 Investment Holdings Money market funds (cash equivalents) 24,010 26,048 Marketable securities 1,881 9,875 258,971 283,643 Cash held in demand accounts 24,666 19,377 Outstanding checks (10,183 ) (23,607 ) Total cash, cash equivalents and marketable securities $ 273,454 $ 279,413 Cash and cash equivalents $ 271,573 $ 269,538 Marketable securities 1,881 9,875 Total cash, cash equivalents and marketable securities $ 273,454 $ 279,413 |
Summary of fair value measurements of financial assets | The following table summarizes the levels of fair value measurements of our financial assets: Fair Value Measurements (in thousands) June 30, Level 1 Level 2 Level 3 Money market funds $ 257,090 $ 257,090 $ — $ — Municipal bonds 1,881 — 1,881 — Total $ 258,971 $ 257,090 $ 1,881 $ — 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 $ — |
Summary of available-for-sale securities | The following is a summary of our available-for-sale marketable securities: Amortized Gross Gross Estimated (in thousands) June 30, 2016 Municipal bonds $ 1,879 $ 2 $ — $ 1,881 December 31, 2015 Municipal bonds $ 9,875 $ 3 $ (3 ) $ 9,875 |
Contractual maturities of marketable securities | As of June 30, 2016 , the contractual maturities of our marketable securities were as follows: Amortized Estimated (in thousands) Less than one year $ 1,351 $ 1,351 One to five years 528 530 Total $ 1,879 $ 1,881 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Quarterly dividends declared [Table Text Block] | The Board declared quarterly dividends as follows: 2016 2015 (amounts per share) First quarter $ 0.22 $ 0.19 Second quarter 0.25 0.22 |
Long-Term Incentive Program L20
Long-Term Incentive Program Long-Term Incentive Program (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | The following is a summary of LTIP award activity for 2016: Number of Performance Units at Target Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Unvested - December 31, 2015 100,900 $ 52.80 183,401 Granted 118,525 59.13 237,050 Vested — — — Canceled (2,550 ) 52.80 (4,635 ) Unvested - June 30, 2016 216,875 56.26 415,816 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Net income $ 9,713 $ 7,314 $ 42,406 $ 21,101 Less distributed and undistributed earnings allocated to participating securities (229 ) (179 ) (962 ) (521 ) Net income allocated to common shares $ 9,484 $ 7,135 $ 41,444 $ 20,580 Weighted average common shares outstanding 20,869 24,766 20,921 24,741 Incremental shares from assumed conversions of common stock options 15 7 10 8 Adjusted weighted average common shares outstanding 20,884 24,773 20,931 24,749 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Oct. 01, 2010 | |
Accounting Policies [Abstract] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,000 | ||||
Health Insurance Costs [Abstract] | |||||
Number of days in advance of the beginning of a reporting quarter United establishes cash funding rates | 90 days | ||||
Required accumulated cash surplus | $ 9,000 | $ 9,000 | |||
Required deposit equal to approximately one day of claims funding activity | 4,500 | ||||
Amount which plan costs were less than the net premiums paid and owed | 22,900 | ||||
Accrued health insurance, current | 13,900 | ||||
Premiums owed to United | 23,000 | ||||
Benefits costs incurred related to run-off | $ 3,700 | ||||
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 | ||||
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 [Abstract] | |||||
Beginning balance, January 1, | $ 162,184 | $ 162,184 | $ 136,088 | ||
Accrued claims | 35,045 | 32,720 | |||
Present value discount | (1,274) | (1,189) | |||
Paid claims | (19,038) | (19,794) | |||
Ending balance | 176,917 | 147,825 | |||
Current portion of accrued claims | 41,236 | 48,887 | |||
Long-term portion of accrued claims | 135,681 | 98,938 | 124,746 | ||
Workers compensation administrative fees accrued | 2,100 | ||||
Undiscounted accrued workers' compensation costs | $ 187,000 | $ 157,400 | |||
Time period incurred claims expected to be paid recorded as restricted cash | 1 year | ||||
Return of Excess Claim Funds Net of Additional Amounts Paid in Claim Funds for Prior Policy Years | $ 12,800 | ||||
Time period incurred claims expected to be paid, included in deposits, a long-term asset | Greater than 1 year | ||||
Restricted cash - worker's compensation | $ 41,226 | 37,418 | |||
Deposits workers compensation | $ 130,731 | $ 136,462 | |||
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 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ 0.05 |
Cash, Cash Equivalents and Ma23
Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Overnight Holdings | ||||
Money market funds (cash equivalents) | $ 233,080 | $ 247,720 | ||
Investment Holdings | ||||
Money market funds (cash equivalents) | 24,010 | 26,048 | ||
Marketable securities | 1,881 | 9,875 | ||
Total cash equivalents and marketable securities | 258,971 | 283,643 | ||
Cash held in demand accounts | 24,666 | 19,377 | ||
Outstanding checks | (10,183) | (23,607) | ||
Total cash, cash equivalents and marketable securities | 273,454 | 279,413 | ||
Cash and cash equivalents | 271,573 | 269,538 | $ 167,728 | $ 276,456 |
Marketable securities | 1,881 | 9,875 | ||
Withholding associated with federal and state income taxes, employment taxes and other payroll deductions included in cash balance | 121,400 | 185,700 | ||
Client prepayments included in cash balance | 100,700 | 17,000 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 257,090 | 273,768 | ||
Municipal bonds | 1,881 | 9,875 | ||
Total | 258,971 | 283,643 | ||
Available-for-sale marketable securities [Abstract] | ||||
Amortized Cost | 1,879 | 9,875 | ||
Gross Unrealized Gains | 2 | 3 | ||
Gross Unrealized Losses | 0 | (3) | ||
Municipal bonds | 1,881 | 9,875 | ||
Contractual maturities amortized cost [Abstract] | ||||
Less than one year | 1,351 | |||
One to five years | 528 | |||
Amortized Cost | 1,879 | 9,875 | ||
Contractual maturities estimated fair value [Abstract] | ||||
Less than one year | 1,351 | |||
One to five years | 530 | |||
Municipal bonds | 1,881 | 9,875 | ||
Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 257,090 | 273,768 | ||
Municipal bonds | 0 | 0 | ||
Total | 257,090 | 273,768 | ||
Available-for-sale marketable securities [Abstract] | ||||
Municipal bonds | 0 | 0 | ||
Contractual maturities estimated fair value [Abstract] | ||||
Municipal bonds | 0 | 0 | ||
Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 0 | 0 | ||
Municipal bonds | 1,881 | 9,875 | ||
Total | 1,881 | 9,875 | ||
Available-for-sale marketable securities [Abstract] | ||||
Municipal bonds | 1,881 | 9,875 | ||
Contractual maturities estimated fair value [Abstract] | ||||
Municipal bonds | 1,881 | 9,875 | ||
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 0 | 0 | ||
Municipal bonds | 0 | 0 | ||
Total | 0 | 0 | ||
Available-for-sale marketable securities [Abstract] | ||||
Municipal bonds | 0 | 0 | ||
Contractual maturities estimated fair value [Abstract] | ||||
Municipal bonds | $ 0 | $ 0 |
Impairment Charges and Other 24
Impairment Charges and Other Impairment Charges and Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Asset Impairment Charges [Abstract] | ||||||
Impairment charges and other | $ 0 | $ 1,313 | $ 9,800 | $ 0 | $ 11,120 | |
Assets Held-for-sale, Not Part of Disposal Group | $ 13,500 | $ 13,500 | ||||
Proceeds from sale of aircraft | $ 12,200 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 200,000 | $ 125,000 |
Maximum borrowing capacity | $ 250,000 | |
Percentage Of Subsidiary Stock Securing Debt | 0.65 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |
Letters of Credit Outstanding, Amount | $ 1,000 | |
Long-term debt | $ 104,400 | $ 0 |
Applicable Margin Federal Funds Rate | 0.50% | |
Applicable Margin 30 Day Libor | 2.00% | |
Line of Credit Facility, Interest Rate During Period | 2.19% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jan. 07, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Class of Stock [Line Items] | ||||||||
Share Price | $ 47.50 | |||||||
Aggregate number of shares repurchased during the period | 3,100,000 | |||||||
MaxAmountOfTenderOfferForRepurchaseOfShares | $ 125,000 | |||||||
Repurchase of common stock (shares) | 3,013,531 | |||||||
payments for repurchase of common stock excluding transaction costs | $ 143,100 | |||||||
Transaction Costs Related to Tender Offer | $ 1,100 | |||||||
Long-term debt | $ 104,400 | $ 0 | $ 104,400 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,000,000 | 1,000,000 | ||||||
Shares repurchased under the program (in shares) | 0 | |||||||
Shares withheld for tax withholding obligations for the vesting of restricted stock awards (in shares) | 100,595 | |||||||
Authorized to repurchased additional shares under repurchase program (in shares) | 1,524,332 | 1,524,332 | ||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.22 | $ 0.19 | ||||
Payments of Dividends | $ 9,997 | $ 10,407 | ||||||
Minimum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share Price | $ 43.50 | |||||||
Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share Price | $ 50 |
Long-Term Incentive Program L27
Long-Term Incentive Program Long-Term Incentive Program (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested - December 31, 2015 | $ / shares | $ 52.80 |
Granted | $ / shares | 59.13 |
Vested | $ / shares | 0 |
Canceled | $ / shares | 52.80 |
Unvested - June 30, 2016 | $ / shares | $ 56.26 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested - December 31, 2015 | 183,401 |
Granted | 237,050 |
Vested | 0 |
Canceled | (4,635) |
Unvested - June 30, 2016 | 415,816 |
2015 LTIP Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized compensation expense | $ | $ 5.4 |
Estimate of shares expected to vest | 178,770 |
2016LTIPAwards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized compensation expense | $ | $ 6 |
Estimate of shares expected to vest | 127,429 |
Target [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested - December 31, 2015 | 100,900 |
Granted | 118,525 |
Vested | 0 |
Canceled | (2,550) |
Unvested - June 30, 2016 | 216,875 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 9,713 | $ 7,314 | $ 42,406 | $ 21,101 |
Less distributed and undistributed earnings allocated to participating securities | 229 | 179 | 962 | 521 |
Net income allocated to common shares | $ 9,484 | $ 7,135 | $ 41,444 | $ 20,580 |
Weighted average common shares outstanding (in shares) | 20,869 | 24,766 | 20,921 | 24,741 |
Incremental shares from assumed conversions of common stock options (in shares) | 15 | 7 | 10 | 8 |
Adjusted weighted average common shares outstanding (in shares) | 20,884 | 24,773 | 20,931 | 24,749 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure (Details) [Abstract] | |
Loss Contingency Accrual, Provision | $ 0 |