Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 04, 2019 | Jun. 30, 2018 | |
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,635,951,485 | ||
Entity Common Stock, Shares Outstanding | 40,937,606 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 326,773 | $ 354,260 |
Restricted cash | 42,227 | 41,137 |
Marketable securities | 60,781 | 1,960 |
Accounts receivable, net | 400,623 | 333,981 |
Prepaid insurance | 8,411 | 10,782 |
Other current assets | 27,721 | 26,991 |
Income taxes receivable | 0 | 9,824 |
Total current assets | 866,536 | 778,935 |
Property and equipment, net | 117,213 | 95,659 |
Prepaid health insurance | 9,000 | 9,000 |
Deposits | 172,674 | 159,515 |
Goodwill and other intangible assets, net | 12,726 | 12,762 |
Deferred income taxes, net | 8,816 | 4,283 |
Other assets | 4,851 | 3,541 |
Total assets | 1,191,816 | 1,063,695 |
Liabilities and stockholders’ equity | ||
Accounts payable | 10,622 | 6,447 |
Payroll taxes and other payroll deductions payable | 261,166 | 303,247 |
Accrued worksite employee payroll cost | 329,979 | 267,402 |
Accrued health insurance costs | 35,153 | 26,075 |
Accrued workers’ compensation costs | 45,818 | 42,974 |
Accrued corporate payroll and commissions | 60,704 | 52,595 |
Other accrued liabilities | 28,890 | 25,989 |
Total current liabilities | 772,332 | 724,729 |
Accrued workers’ compensation costs | 187,412 | 166,493 |
Long-term debt | 144,400 | 104,400 |
Other Liabilities, Noncurrent | 9,996 | 1,752 |
Total noncurrent liabilities | 341,808 | 272,645 |
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 - 55,489 at December 31, 2018 and 2017 | 555 | 555 |
Additional paid-in capital | 36,752 | 25,337 |
Treasury stock, at cost (14,555 and 14,009 shares held in treasury) | (357,569) | (256,363) |
Accumulated other comprehensive income, net of tax | (9) | (5) |
Retained earnings | 397,947 | 296,797 |
Total stockholders’ equity | 77,676 | 66,321 |
Total liabilities and stockholders’ equity | $ 1,191,816 | $ 1,063,695 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 55,489 | 55,489 |
Treasury stock, shares (in shares) | 14,555 | 14,009 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Revenues1 | [1] | $ 3,828,549 | $ 3,300,223 | $ 2,941,347 |
Payroll taxes, benefits and workers’ compensation costs | 3,146,640 | 2,727,492 | 2,449,737 | |
Gross profit | 681,909 | 572,731 | 491,610 | |
Salaries, wages and payroll taxes | 301,027 | 259,531 | 229,589 | |
Stock-based compensation | 20,425 | 24,345 | 16,643 | |
Commissions | 28,957 | 22,773 | 19,288 | |
Advertising | 18,554 | 16,686 | 16,447 | |
General and administrative expenses | 111,068 | 101,273 | 86,693 | |
Depreciation and amortization | 22,842 | 18,182 | 16,644 | |
Total operating expenses | 502,873 | 442,790 | 385,304 | |
Operating income | 179,036 | 129,941 | 106,306 | |
Other income (expense): | ||||
Interest Income | 7,992 | 3,413 | 1,267 | |
Interest Expense | (4,668) | (3,213) | (2,396) | |
Income before income tax expense | 182,360 | 130,141 | 105,177 | |
Income tax expense | 46,947 | 45,739 | 39,186 | |
Net income | 135,413 | 84,402 | 65,991 | |
Less distributed and undistributed earnings allocated to participating securities | 1,875 | 1,517 | 1,496 | |
Net income allocated to common shares | $ 133,538 | $ 82,885 | $ 64,495 | |
Basic net income per share of common stock (in dollars per share) | $ 3.24 | $ 2.02 | $ 1.55 | |
Diluted net income per share of common stock (in dollars per share) | $ 3.22 | $ 2.01 | $ 1.54 | |
[1] | (1) Revenues are comprised of gross billings less worksite employee (“WSEE”) payroll costs as follows: Year ended December 31,(in thousands)201820172016 Gross billings$23,830,731$20,173,812$17,932,857Less: WSEE payroll cost20,002,18216,873,58914,991,510Revenues$3,828,549$3,300,223$2,941,347 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Gross billings | $ 23,830,731 | $ 20,173,812 | $ 17,932,857 |
Worksite employee payroll costs | $ 20,002,182 | $ 16,873,589 | $ 14,991,510 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 135,413 | $ 84,402 | $ 65,991 |
Other comprehensive loss: | |||
Unrealized loss on available-for-sale securities, net of tax | (4) | (2) | (3) |
Comprehensive income | $ 135,409 | $ 84,400 | $ 65,988 |
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, 2015 | $ 172,455,000 | $ 617,000 | $ 144,392,000 | $ (205,325,000) | $ 0 | $ 232,771,000 |
Balance (shares) at Dec. 31, 2015 | 61,517 | |||||
Purchase of treasury stock, at cost | (31,669,000) | $ 0 | 0 | (31,669,000) | 0 | 0 |
Repurchase of common stock | (144,263,000) | $ (62,000) | (144,201,000) | 0 | 0 | 0 |
Repurchase of common stock (in shares) | (6,028) | |||||
Exercise of stock options | 598,000 | $ 0 | (27,000) | 625,000 | 0 | 0 |
Stock-based compensation expense | 16,643,000 | 0 | 8,156,000 | 8,487,000 | 0 | 0 |
Other | 1,372,000 | 0 | 642,000 | 730,000 | 0 | 0 |
Dividends paid | (20,599,000) | 0 | 0 | 0 | 0 | (20,599,000) |
Unrealized gain (loss) on marketable securities, net of tax | (3,000) | 0 | 0 | 0 | (3,000) | 0 |
Net income | 65,991,000 | 0 | 0 | 0 | 0 | 65,991,000 |
Balance at Dec. 31, 2016 | 60,525,000 | $ 555,000 | 8,962,000 | (227,152,000) | (3,000) | 278,163,000 |
Balance (shares) at Dec. 31, 2016 | 55,489 | |||||
Purchase of treasury stock, at cost | (38,735,000) | $ 0 | 0 | (38,735,000) | 0 | 0 |
Stock-based compensation expense | 24,345,000 | 0 | 15,508,000 | 8,837,000 | 0 | 0 |
Other | 1,554,000 | 0 | 867,000 | 687,000 | 0 | 0 |
Dividends paid | (65,768,000) | 0 | 0 | 0 | 0 | (65,768,000) |
Unrealized gain (loss) on marketable securities, net of tax | (2,000) | 0 | 0 | 0 | (2,000) | 0 |
Net income | 84,402,000 | 0 | 0 | 0 | 0 | 84,402,000 |
Balance at Dec. 31, 2017 | 66,321,000 | $ 555,000 | 25,337,000 | (256,363,000) | (5,000) | 296,797,000 |
Balance (shares) at Dec. 31, 2017 | 55,489 | |||||
Purchase of treasury stock, at cost | (113,327,000) | $ 0 | 0 | (113,327,000) | 0 | 0 |
Stock-based compensation expense | 20,425,000 | 0 | 9,696,000 | 11,584,000 | 0 | (855,000) |
Other | 2,256,000 | 0 | 1,719,000 | 537,000 | 0 | 0 |
Dividends paid | (33,408,000) | 0 | 0 | 0 | 0 | (33,408,000) |
Unrealized gain (loss) on marketable securities, net of tax | (4,000) | 0 | 0 | 0 | (4,000) | 0 |
Net income | 135,413,000 | 0 | 0 | 0 | 0 | 135,413,000 |
Balance at Dec. 31, 2018 | $ 77,676,000 | $ 555,000 | $ 36,752,000 | $ (357,569,000) | $ (9,000) | $ 397,947,000 |
Balance (shares) at Dec. 31, 2018 | 55,489 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 135,413 | $ 84,402 | $ 65,991 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,842 | 18,182 | 16,644 |
Amortization of marketable securities | 137 | 80 | 90 |
Stock-based compensation | 20,425 | 24,345 | 16,643 |
Deferred income taxes | (4,533) | 9,742 | 2,951 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (66,642) | (63,697) | (69,619) |
Prepaid insurance | 2,371 | 4,259 | (7,624) |
Other current assets | (730) | (7,465) | (2,391) |
Other assets | (2,005) | (2,496) | (1,465) |
Accounts payable | 4,175 | 2,258 | (1,192) |
Payroll taxes and other payroll deductions payable | (42,081) | 55,481 | 42,373 |
Accrued worksite employee payroll expense | 62,577 | 52,188 | 53,297 |
Accrued health insurance costs | 9,078 | (285) | 12,717 |
Accrued workers’ compensation costs | 23,763 | 23,945 | 21,723 |
Accrued corporate payroll, commissions and other accrued liabilities | 8,941 | 17,138 | 3,150 |
Income taxes payable/receivable | 10,749 | (4,875) | (7,920) |
Total adjustments | 49,067 | 128,800 | 79,377 |
Net cash provided by operating activities | 184,480 | 213,202 | 145,368 |
Marketable securities: | |||
Purchases | (87,887) | (1,752) | (1,049) |
Proceeds from maturities | 12,625 | 1,561 | 1,715 |
Proceeds from dispositions | 16,299 | 0 | 7,268 |
Property and equipment: | |||
Purchases | (35,328) | (33,337) | (33,994) |
Proceeds from dispositions | 151 | 278 | 43 |
Net cash used in investing activities | (94,140) | (33,250) | (26,017) |
Cash flows from financing activities | |||
Purchase of treasury stock | (113,327) | (38,735) | (31,669) |
Repurchase of common stock | 0 | 0 | 144,263 |
Dividends paid | (33,408) | (65,768) | (20,599) |
Borrowings under long-term debt agreement | 40,000 | 0 | 124,400 |
Principal repayments | 0 | 0 | (20,000) |
Proceeds from the exercise of stock options | 0 | 0 | 598 |
Other | 2,257 | 1,554 | 1,373 |
Net cash used in financing activities | (104,478) | (102,949) | (90,160) |
Net increase (decrease) in cash and cash equivalents | (14,138) | 77,003 | 29,191 |
Cash, cash equivalents and restricted cash beginning of year | 549,612 | 472,609 | 443,418 |
Cash, cash equivalents and restricted cash at end of year | 535,474 | 549,612 | 472,609 |
Supplemental disclosures of cash flow information | |||
Income taxes, net | 40,730 | 40,872 | 44,148 |
Interest expense | 4,668 | 3,213 | 2,396 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash, cash equivalents and restricted cash beginning of year | 549,612 | 472,609 | 443,418 |
Cash, cash equivalents and restricted cash at end of year | $ 535,474 | $ 549,612 | $ 472,609 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, Insperity Premier TM . In addition to our PEO HR Outsourcing solutions, we also offer a comprehensive traditional payroll and human capital management solution, known as Workforce Acceleration. We also offer a number of other business performance solutions, including Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Expense Management, Retirement Services and Insurance Services, many of which are offered via desktop applications and cloud-based delivery models. These other products or services are offered separately or with our other 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 an employer of the employees who work at the client’s location (“WSEE”) for most administrative and regulatory purposes. As a co-employer of its WSEEs, we assume many of the rights and obligations associated with being an employer. We enter into an employment agreement with each WSEE, 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 WSEEs: (1) to compensate its WSEEs through wages and salaries; (2) to pay the employer portion of payroll-related taxes; (3) to withhold and remit (where applicable) the employee portion of payroll-related taxes; (4) to provide employee benefit programs; and (5) to provide workers’ compensation insurance coverage. In addition to our assumption of employer status for our WSEEs, 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 On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective approach. Under this method, the guidance is applied only to the most current period presented in the financial statements. ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and superseded most of the previous 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. Our revenue recognition policies remained substantially unchanged as a result of the adoption of ASU No. 2014-09 and we did not have any significant changes in our business processes or systems. We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally have a term of 12 months, but are cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms. Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but not invoiced represent unbilled accounts receivable included in accounts receivable, net on our Consolidated Balance Sheets. Pursuant to the practical expedients provided under ASU No 2014-09, we expense sales commissions when incurred because the terms of our contracts are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations. Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Northeast $ 996,541 $ 854,629 $ 750,748 Southeast 447,584 379,874 318,185 Central 637,779 543,486 467,297 Southwest 895,243 767,207 689,334 West 797,942 702,619 664,308 3,775,089 3,247,815 2,889,872 Other revenue 53,460 52,408 51,475 Total revenue $ 3,828,549 $ 3,300,223 $ 2,941,347 Our PEO HR Outsourcing solutions revenues are primarily derived from our gross billings, which are based on (1) the payroll cost of its WSEEs; and (2) a markup computed as a percentage of the payroll cost. The gross billings are invoiced concurrently with each periodic payroll of its WSEEs. Revenues, which exclude the payroll cost component of gross billings and therefore consist solely of markup, are recognized ratably over the payroll period as WSEEs perform their service at the client worksite. 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 WSEEs, 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 WSEEs. Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our WSEEs, 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, 2018 and 2017 , 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. 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. Property and equipment, net consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Land $ 6,215 $ 6,215 Buildings and improvements 112,308 95,615 Computer hardware and software 115,259 105,060 Software development costs 71,332 60,568 Furniture, fixtures and other 45,694 42,891 350,808 310,349 Accumulated depreciation and amortization (233,595 ) (214,690 ) Total property and equipment, net $ 117,213 $ 95,659 The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: Useful Life 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 Software development costs relate primarily to software code development, systems integration 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 $6.0 million , $4.1 million and $3.0 million in amortization of capitalized computer software costs in 2018 , 2017 and 2016 , respectively. Unamortized software development costs were $19.6 million and $14.9 million in 2018 and 2017 , respectively. We account for our software products in accordance with ASC 985-20, Costs of Software to be Sold . This Topic establishes standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased. We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. Goodwill and Other Intangible Assets Our goodwill is not amortized, but is tested for impairment on an annual basis or when there is an indication that there has been a potential decline in the fair value of a reporting unit. Annually, we perform a qualitative analysis to determine if it is more likely than not that the fair value has declined below its carrying value. This analysis considers various qualitative factors. Due to the nature of our business, all of our goodwill is associated with one reporting unit. We perform our annual impairment testing during the fourth quarter. Based on the results of our analysis, no impairment loss was recognized in 2018 , 2017 or 2016 . At December 31, 2018 and 2017 , we had an aggregate carrying amount of goodwill acquired of $21.2 million , which has been reduced by cumulative impairment charges of $8.5 million . Accordingly our goodwill balance at December 31, 2018 and 2017 was $12.7 million . Health Insurance Costs We provide group health insurance coverage to our WSEEs through a national network of carriers including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii and Tufts, all of which provide fully insured policies or service contracts. The policy with United provides the majority of our health insurance coverage. As a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Accordingly, we record the cost of the United portion of the plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense, a component of direct costs, in the Consolidated Statements of Operations. The estimated incurred claims are based upon: (1) the level of claims processed during each quarter; (2) estimated completion rates based upon recent claim development patterns under the plan; and (3) 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 $6.0 million as of December 31, 2018 , and is reported as a long-term asset. As of December 31, 2018 , Plan Costs were more than the net premiums paid and owed to United by $6.3 million . As this amount is less than the agreed-upon $9.0 million surplus maintenance level, the $15.3 million difference is also included in accrued health insurance costs, a current liability , in our Consolidated Balance Sheets. The premiums, including the additional quarterly premiums, owed to United at December 31, 2018 , were $15.2 million , which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. Our benefits costs incurred included a reduction of $1.3 million in 2018 , an increase of $1.2 million in 2017 and an increase of $5.1 million in 2016 for changes in estimated run-off related to prior periods. Workers’ Compensation Costs Our workers’ compensation coverage for our WSEEs in our PEO HR Outsourcing solutions has been provided through an arrangement with the Chubb Group of Insurance Companies or its predecessors (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred under the policy regardless of whether we satisfy our responsibilities. Under the Chubb Program, we have financial responsibility to Chubb for the first $1 million layer of claims per occurrence and, for claims over $1 million , up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1 million . Chubb bears the financial responsibility for all claims in excess of these levels. Because we bear the financial responsibility 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 utilize a third-party actuary to estimate our loss development rate, which is primarily based upon the nature of WSEEs’ job responsibilities, the location of WSEEs, 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, 2018 , 2017 and 2016 , we reduced accrued workers’ compensation costs by $18.8 million , $16.3 million and $10.9 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 was 2.6% in 2018 and 1.6% in 2017 ) 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: Year Ended December 31, (in thousands) 2018 2017 Beginning balance $ 207,630 $ 183,928 Accrued claims 72,066 68,194 Present value discount (7,829 ) (4,308 ) Paid claims (42,228 ) (40,184 ) Ending balance $ 229,639 $ 207,630 Current portion of accrued claims $ 42,227 $ 41,137 Long-term portion of accrued claims 187,412 166,493 Total accrued claims $ 229,639 $ 207,630 The current portion of accrued workers’ compensation costs at December 31, 2018 and 2017 includes $3.6 million and $1.8 million , respectively, of workers’ compensation administrative fees. The undiscounted accrued workers’ compensation costs were $247.4 million as of December 31, 2018 and $219.9 million as of December 31, 2017 . 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 WSEE 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 2018 , we received $19.4 million for the return of excess claim funds related to the workers’ compensation program, which decreased deposits. As of December 31, 2018 , we had restricted cash of $42.2 million and deposits of $166.5 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 is included in noncurrent liabilities on our Consolidated Balance Sheets. Stock-Based Compensation At December 31, 2018 , we have one stock-based employee compensation plan under which we may issue awards. We account for this plan 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 plan to our non-employee directors, officers and other management. Restricted stock grants to officers and other management generally vest over a period of three years from the date of grant. Shares of restricted stock are valued based on the fair value on date of grant and the associated expense, net of estimated forfeitures, is recognized over the vesting period. Commencing in 2017, stock grants issued to non-employee directors upon their initial appointment to the board are 100% vested on the grant date. Annual stock grants issued to non-employee directors are 100% vested on the grant date. Our Insperity Long-Term Incentive Program (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. Commencing in 2016, a portion of the LTIP grant to employees was considered a market-based performance award that vests at the end of a three -year period assuming continued employment and achievement of market-based performance goals. The fair value of each performance unit is the market price of our common stock on the date of grant. The fair value of each market-based performance unit was determined through use of the Monte Carlo simulation method. 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 100% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2018 , 2017 and 2016 . Matching contributions under the Corporate Plan are immediately vested. During 2018 , 2017 and 2016 , we made matching contributions on behalf of corporate employees to the Corporate Plan of $10.3 million , $8.7 million and $8.0 million , respectively, and is included in salaries, wages and payroll taxes in our Consolidated Statements of Operations. Under our separate 401(k) retirement plan for WSEEs (the “Worksite Employee Plan”), the match percentage for WSEEs ranges from 0% to 6% , as determined by each client company. Matching contributions under the Worksite Employee Plan are immediately vested. During 2018 , 2017 and 2016 , we made matching contributions on behalf of WSEEs to the Worksite Employee Plan of $165.5 million , $129.0 million and $108.3 million , respectively. 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was signed into law. The 2017 Tax Reform Act significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate to 21% beginning in 2018. Please read Note 7 , “ Income Taxes ,” for additional information. Reclassifications Certain prior year amounts have been reclassified to conform to the 2018 presentation. New Accounting Pronouncements 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. While our technical analysis is ongoing, we do not expect the new standard to have a material impact to our Consolidated Statements of Operations. We expect the lease commitments discussed in Note 11 , “ Leases ” to appear on our Consolidated Balance Sheets in the form of a lease asset and a lease liability. Such amounts are based on the present value of such commitments using our incremental borrowing rate. We plan to utilize the transition package of practical expedients permitted within the new standard, which among other things, allows us to carryforward the historical lease classification. We do not plan to elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use assets. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (in thousands) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total Overnight holdings $ 311,158 $ — $ 311,158 $ 338,112 $ — $ 338,112 Investments holdings 16,711 60,781 77,492 22,634 1,960 24,594 Cash in demand accounts 33,207 — 33,207 26,700 — 26,700 Outstanding checks (34,303 ) — (34,303 ) (33,186 ) — (33,186 ) Total $ 326,773 $ 60,781 $ 387,554 $ 354,260 $ 1,960 $ 356,220 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, 2018 and December 31, 2017 , are $224.5 million and $271.5 million , respectively, in withholdings associated with federal and state income taxes, employment taxes and other payroll deductions, as well as $34.2 million and $23.6 million , respectively, in client prepayments. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 3. Fair Value Measurements 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 Fair Value of Instruments Measured and Recognized at Fair Value The following tables summarize the levels of fair value measurements of our financial assets: December 31, 2018 December 31, 2017 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 327,869 $ 327,869 $ — $ 360,746 $ 360,746 $ — U.S. Treasury bills 50,147 — 50,147 — — — Municipal bonds 10,634 — 10,634 1,960 — 1,960 Total $ 388,650 $ 327,869 $ 60,781 $ 362,706 $ 360,746 $ 1,960 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: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 U.S. Treasury bills $ 50,150 $ — $ (3 ) $ 50,147 Municipal bonds 10,641 — (7 ) 10,634 December 31, 2017 U.S. Treasury bills $ — $ — $ — $ — Municipal bonds 1,965 — (5 ) 1,960 As of December 31, 2018 , the contractual maturities of all marketable securities in our portfolio were less than one year. Fair Value of Other Financial Instruments The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, deposits and accounts payable approximate their fair values due to the short-term maturities of these instruments. At December 31, 2018 , the carrying value of our borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy. Please read Note 6 , " Long-Term Debt ," for additional information. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable Additional Disclosures [Abstract] | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable, net consisted of the following: December 31, (in thousands) 2018 2017 Trade $ 10,015 $ 12,292 Unbilled 385,567 318,431 Other 5,041 3,258 Accounts receivable, net $ 400,623 $ 333,981 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 $1.0 million and $0.6 million as of December 31, 2018 and 2017 , 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 WSEEs and for the accrued gross billings associated with such wages. These accruals are included in accrued WSEE 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, (in thousands) 2018 2017 Accrued worksite employee payroll cost $ 329,979 $ 267,402 Unbilled revenues 89,765 74,632 Customer prepayments (34,177 ) (23,603 ) Unbilled accounts receivable $ 385,567 $ 318,431 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | 5. Deposits Deposits consisted of the following: December 31, (in thousands) 2018 2017 Deposits – health insurance $ 6,200 $ 5,300 Deposits – workers’ compensation 166,474 154,215 Deposits $ 172,674 $ 159,515 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 and workers’ compensation costs. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. Long-Term Debt We have a revolving credit facility which is available for working capital and general corporate purposes, including acquisitions, stock repurchases and issuances of letters of credit. In February 2018, the revolving credit facility was increased from $200 million to $350 million and the expiration date was extended from February 2020 to February 2023 (the “Facility”). Borrowings may be increased to $400 million based on the terms and subject to the conditions set forth in the agreement relating to the Facility (the “Credit Agreement”). 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 addition, as of December 31, 2018 , we had an outstanding $1.0 million letter of credit issued under the Facility. As of December 31, 2018 , our outstanding balance on the Facility was $144.4 million . The Facility matures on February 6, 2023 . 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 (1) in the case of LIBOR loans, from 1.50% to 2.25% and (2) in the case of alternate base rate loans, from 0.00% to 0.50% . The alternate base rate is the highest of (1) the prime rate most recently published in The Wall Street Journal, (2) the federal funds rate plus 0.50% and (3) 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 average interest rate during 2018 was 3.5% . 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 November 2017 and December 2014, the Credit Agreement was amended to modify the interest coverage ratio covenant to exclude the impact of special dividends paid of $41.7 million and $50.7 million , respectively. We were in compliance with all financial covenants under the Credit Agreement at December 31, 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was signed into law. The 2017 Tax Reform Act significantly changed U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate from 35% to 21% beginning in 2018. As a result, we remeasured our deferred tax assets at the new lower corporate income tax rate and recorded a non-cash tax charge of $2.5 million in 2017. During 2018, we finalized certain tax positions when we filed our 2017 federal tax return, and determined no further adjustments were required to our net deferred tax asset balance of $8.8 million as of December 31, 2018 . Significant components of the net deferred tax assets as reflected on the Consolidated Balance Sheets are as follows: December 31, (in thousands) 2018 2017 Deferred tax liabilities Prepaid assets $ (3,306 ) $ (3,957 ) Depreciation (3,918 ) (2,021 ) Software development costs (4,950 ) (3,732 ) Intangibles (474 ) — Total deferred tax liabilities (12,648 ) (9,710 ) Deferred tax assets Accrued incentive compensation 8,612 3,510 Net operating loss carryforward 709 774 Workers’ compensation accruals 4,739 4,586 Accrued rent 918 676 Stock-based compensation 6,183 4,233 Minority investment impairment 676 667 Other 305 216 Total deferred tax assets 22,142 14,662 Valuation allowance (678 ) (669 ) Total net deferred tax assets 21,464 13,993 Net deferred tax assets $ 8,816 $ 4,283 The components of income tax expense are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Current income tax expense Federal $ 40,347 $ 30,009 $ 31,045 State 11,133 5,988 5,190 Total current income tax expense 51,480 35,997 36,235 Deferred income tax (benefit) expense Federal (3,398 ) 9,549 2,641 State (1,135 ) 193 310 Total deferred income tax (benefit) expense (4,533 ) 9,742 2,951 Total income tax expense $ 46,947 $ 45,739 $ 39,186 In the first quarter of 2016, we prospectively adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting for calendar year 2016. We recognized an income tax benefit of $2.7 million in 2018, $6.8 million in 2017 and $1.5 million in 2016 related to excess tax benefits from the vesting of long-term incentive awards, restricted stock awards and non-qualified stock options. 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, (in thousands) 2018 2017 2016 Expected income tax expense at 21%, 35% and 35%, respectively $ 38,296 $ 45,549 $ 36,812 State income taxes, net of federal benefit 7,660 4,085 3,684 Nondeductible expenses 4,831 2,649 1,669 Section 199 benefits — (875 ) (686 ) Equity compensation (2,737 ) (6,218 ) (1,338 ) Research and development credit (856 ) (634 ) (751 ) Disaster employee retention credit — (669 ) — Enactment of the 2017 Tax Reform Act — 2,559 — Other, net (247 ) (707 ) (204 ) Reported total income tax expense $ 46,947 $ 45,739 $ 39,186 At December 31, 2018 , we have net operating loss carryforwards totaling $2.8 million that expire from 2023 to 2030 related to an acquisition that occurred in 2010. We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2018 , 2017 and 2016 , we made no provisions for interest or penalties related to uncertain tax positions. The tax years 2015 through 2017 remain open to examination by the Internal Revenue Service of the United States. The tax years 2014 through 2017 remain open to examination by various state tax authorities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Two-for-One Stock Split On December 18, 2017, we effected a two-for-one stock split in the form of a 100% stock dividend. Share and per share amounts for 2017 and 2016 presented in these financial statements have been retroactively restated to reflect this change in our capital structure. 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. We repurchased 1,066,409 shares under the Repurchase Program during 2018 . In addition, 132,021 shares were withheld during 2018 to satisfy minimum tax withholding obligations for the vesting of restricted stock awards, which are not subject to the Repurchase Program. During 2017 , we repurchased 594,974 shares under the Repurchase Program and 305,828 shares were withheld to satisfy minimum tax withholding obligations for the vesting of restricted stock awards. At December 31, 2018 , we were authorized to repurchase an additional 1,611,155 shares under the Repurchase Program. Shares repurchased under the Repurchase Program are recorded in treasury. Withheld Shares During 2018 , 132,021 shares were withheld to satisfy minimum tax withholding obligations for the vesting of long-term incentive and restricted stock awards. Shares withheld to satisfy minimum tax withholding obligations for the vesting of long-term incentive and restricted stock awards are recorded in treasury. 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 $21.75 per share and not more than $25.00 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 6,027,062 shares of our common stock at a per share price of $23.75 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. Dividends The Board declared quarterly dividends as follows: (amounts per share) 2018 2017 First quarter $ 0.20 $ 0.125 Second quarter 0.20 0.150 Third quarter 0.20 0.150 Fourth quarter 0.20 1.150 (1) __________________________________ (1) Includes a $1.00 per share special dividend. During 2018 and 2017 , we paid a total of $33.4 million and $65.8 million , respectively in dividends. The dividends paid in 2017 includes a special dividend of $41.7 million . Preferred Stock At December 31, 2018 , 20 million shares of preferred stock were authorized. The Series A Junior Participating Preferred Stock that was previously reserved for issuance under our Share Purchase Rights Plan expired on November 13, 2017. |
Incentive Plans
Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Incentive Plans | 9. 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, 2018 , 2,680,666 shares of common stock were available for future grants under the 2012 Incentive Plan. The 2001 Incentive Plan only has outstanding nonqualified stock options. The 2012 Incentive Plan permits 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 purpose of the Incentive Plan generally is 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. We also maintain the Insperity, Inc. Long-Term Incentive Program (“LTIP”) under the 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 2016, 2017 and 2018. We recognized $20.4 million , $24.3 million and $16.6 million of compensation expense associated with the restricted stock and the LTIP awards in 2018 , 2017 and 2016 , respectively. Included in 2017, is $2.3 million of stock-based compensation associated with the acceleration of restricted stock awards from the first quarter of 2018 to December 2017 in order to maximize our tax deduction, which would have been limited under the 2017 Tax Reform Act. We recognized $5.3 million , $8.5 million and $6.2 million of tax benefits associated with stock-based compensation in 2018 , 2017 and 2016 , respectively. Stock Option Awards The following is a summary of stock option award activity for 2018 : Shares (in thousands) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2017 16 $ 15.30 Granted — — Exercised — — Canceled — — Outstanding - December 31, 2018 16 $ 15.30 2.5 $ 1,220 Exercisable - December 31, 2018 16 $ 15.30 2.5 $ 1,220 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, 2018 , 2017 , and 2016 was $1.2 million , $46.0 million and $16.2 million , respectively. The weighted average grant date fair value of restricted stock awards granted during the years ended December 31, 2018 , 2017 and 2016 was $65.98 , $42.15 and $26.33 , respectively. As of December 31, 2018 , unrecognized compensation expense associated with the unvested shares outstanding was $18.4 million and is expected to be recognized over a weighted average period of 22 months . The following is a summary of restricted stock award activity for 2018 : Shares (in thousands) Weighted Average Grant Date Fair Value Non-vested - December 31, 2017 343 $ 35.29 Granted 290 65.98 Vested (14 ) 66.28 Canceled/Forfeited (37 ) 41.37 Non-vested - December 31, 2018 582 $ 49.48 Long-Term Incentive Program Awards Each performance unit represents the right to receive common shares at a future date based on our performance against specified 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, which can range from 0% to 200% of the targeted amounts. A performance unit may be comprised of either a performance based award or a market-based award. For performance based awards, performance units have a vesting schedule of three years and compensation expense is recognized based on the number of common shares expected to be issued and the market price per common share on the date of grant. 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. For market-based awards, performance units vest at the end of a three-year period assuming continued employment and achievement of market-based performance goals. The fair value of market-based performance awards was determined through the use of the Monte Carlo simulation method. The compensation expense for the LTIP awards is recognized on a straight-line basis over the vesting terms. The following is a summary of LTIP award activity, at 100% of targeted amount, for 2018 : Number of Performance Units (in thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 570 $ 32.90 Granted 100 81.51 Vested (196 ) 26.40 Canceled (48 ) 41.90 Unvested at December 31, 2018 426 $ 46.35 The determination of achievement results and corresponding vesting of the 2015 LTIP awards occurred in February 2018 resulting in the recipients receiving 371,000 shares of common stock with a fair value $24.2 million . As of December 31, 2018 , we estimate that approximately 345,000 , 202,000 and 176,000 shares will vest with $0.4 million , $3.4 million and $8.6 million in unamortized compensation expense related to the 2016, 2017 and 2018 LTIP grants, respectively. 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 30,000 , 38,000 and 34,000 shares were issued from treasury under the ESPP during fiscal years 2018 , 2017 and 2016 , respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 10. 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. 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, (in thousands) 2018 2017 2016 Net income $ 135,413 $ 84,402 $ 65,991 Less distributed and undistributed earnings allocated to participating securities (1,875 ) (1,517 ) (1,496 ) Net income allocated to common shares $ 133,538 $ 82,885 $ 64,495 Weighted average common shares outstanding 41,217 41,067 41,668 Incremental shares from assumed conversions of common stock options and LTIP awards 289 204 94 Adjusted weighted average common shares outstanding 41,506 41,271 41,762 Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect — — — |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | 11. 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 $15.4 million , $15.4 million and $15.0 million in 2018 , 2017 and 2016 , respectively. At December 31, 2018 , future minimum rental payments under noncancelable operating leases are as follows: (in thousands) Operating Leases 2019 $ 16,542 2020 16,325 2021 13,932 2022 12,791 2023 10,623 Thereafter 23,638 Total minimum lease payments $ 93,851 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies We enter into fixed purchase and service obligations in the ordinary course of business. These arrangements primarily consist of, advertising commitments and service contracts. At December 31, 2018 , future purchase and service obligations greater than $100,000 and one year were as follows (in thousands): 2019 $ 16,535 2020 16,782 2021 12,494 2022 6,525 2023 1,954 Thereafter 700 Total obligations $ 54,990 Worksite Employee 401(k) Retirement Plan Class Action Litigation In December 2015, a class action lawsuit was filed against us and the third-party discretionary trustee of the Insperity 401(k) retirement plan that is 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. The suit generally alleges that Insperity’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. The parties filed a stipulation concerning class certification that defined the class as “all participants and beneficiaries of the Insperity 401(k) Plan from December 22, 2009 through September 30, 2017.” In November 2017, the court approved the class certification stipulation and denied the plaintiffs’ request for a jury trial. A date for the bench trial has not yet been set. Discovery is complete. On June 8, 2018, we filed a motion for summary judgment seeking dismissal of all claims. Briefing on that motion was completed in September 2018, which motion is now awaiting a ruling by the court. 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. Other Litigation 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 13. Quarterly Financial Data (Unaudited) Quarter Ended (in thousands, except per share amounts) March 31 June 30 Sept. 30 Dec. 31 2018 Revenues $ 1,014,372 $ 922,295 $ 925,126 $ 966,756 Gross profit 199,720 154,544 166,054 161,591 Operating income 64,703 33,581 48,133 32,619 Net income 49,991 24,560 36,207 24,655 Basic net income per share 1.20 0.59 0.86 0.59 Diluted net income per share 1.18 0.58 0.86 0.59 2017 Revenues $ 882,664 $ 795,552 $ 795,513 $ 826,494 Gross profit 159,346 130,553 139,966 142,866 Operating income 53,492 22,938 29,799 23,712 Net income 35,628 14,018 19,202 15,554 Basic net income per share (1) 0.85 0.34 0.46 0.36 Diluted net income per share (1) 0.85 0.33 0.46 0.36 ____________________________________ (1) Adjusted to reflect the two-for-one split of our common stock effected on December 18, 2017 as a stock dividend. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, Insperity Premier TM . In addition to our PEO HR Outsourcing solutions, we also offer a comprehensive traditional payroll and human capital management solution, known as Workforce Acceleration. We also offer a number of other business performance solutions, including Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Expense Management, Retirement Services and Insurance Services, many of which are offered via desktop applications and cloud-based delivery models. These other products or services are offered separately or with our other 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 an employer of the employees who work at the client’s location (“WSEE”) for most administrative and regulatory purposes. As a co-employer of its WSEEs, we assume many of the rights and obligations associated with being an employer. We enter into an employment agreement with each WSEE, 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 WSEEs: (1) to compensate its WSEEs through wages and salaries; (2) to pay the employer portion of payroll-related taxes; (3) to withhold and remit (where applicable) the employee portion of payroll-related taxes; (4) to provide employee benefit programs; and (5) to provide workers’ compensation insurance coverage. In addition to our assumption of employer status for our WSEEs, 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 On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective approach. Under this method, the guidance is applied only to the most current period presented in the financial statements. ASU No. 2014-09 outlines a single comprehensive revenue recognition model for revenue arising from contracts with customers and superseded most of the previous 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. Our revenue recognition policies remained substantially unchanged as a result of the adoption of ASU No. 2014-09 and we did not have any significant changes in our business processes or systems. We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally have a term of 12 months, but are cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms. Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but not invoiced represent unbilled accounts receivable included in accounts receivable, net on our Consolidated Balance Sheets. Pursuant to the practical expedients provided under ASU No 2014-09, we expense sales commissions when incurred because the terms of our contracts are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations. Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Northeast $ 996,541 $ 854,629 $ 750,748 Southeast 447,584 379,874 318,185 Central 637,779 543,486 467,297 Southwest 895,243 767,207 689,334 West 797,942 702,619 664,308 3,775,089 3,247,815 2,889,872 Other revenue 53,460 52,408 51,475 Total revenue $ 3,828,549 $ 3,300,223 $ 2,941,347 Our PEO HR Outsourcing solutions revenues are primarily derived from our gross billings, which are based on (1) the payroll cost of its WSEEs; and (2) a markup computed as a percentage of the payroll cost. The gross billings are invoiced concurrently with each periodic payroll of its WSEEs. Revenues, which exclude the payroll cost component of gross billings and therefore consist solely of markup, are recognized ratably over the payroll period as WSEEs perform their service at the client worksite. 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 WSEEs, 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 WSEEs. Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our WSEEs, 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, 2018 and 2017 , 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. |
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. Property and equipment, net consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Land $ 6,215 $ 6,215 Buildings and improvements 112,308 95,615 Computer hardware and software 115,259 105,060 Software development costs 71,332 60,568 Furniture, fixtures and other 45,694 42,891 350,808 310,349 Accumulated depreciation and amortization (233,595 ) (214,690 ) Total property and equipment, net $ 117,213 $ 95,659 The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: Useful Life 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 Software development costs relate primarily to software code development, systems integration 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 $6.0 million , $4.1 million and $3.0 million in amortization of capitalized computer software costs in 2018 , 2017 and 2016 , respectively. Unamortized software development costs were $19.6 million and $14.9 million in 2018 and 2017 , respectively. We account for our software products in accordance with ASC 985-20, Costs of Software to be Sold . This Topic establishes standards of financial accounting and reporting for the costs of computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, whether internally developed and produced or purchased. We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Our goodwill is not amortized, but is tested for impairment on an annual basis or when there is an indication that there has been a potential decline in the fair value of a reporting unit. Annually, we perform a qualitative analysis to determine if it is more likely than not that the fair value has declined below its carrying value. This analysis considers various qualitative factors. Due to the nature of our business, all of our goodwill is associated with one reporting unit. We perform our annual impairment testing during the fourth quarter. Based on the results of our analysis, no impairment loss was recognized in 2018 , 2017 or 2016 . At December 31, 2018 and 2017 , we had an aggregate carrying amount of goodwill acquired of $21.2 million , which has been reduced by cumulative impairment charges of $8.5 million . Accordingly our goodwill balance at December 31, 2018 and 2017 was $12.7 million . |
Health Insurance Costs | Health Insurance Costs We provide group health insurance coverage to our WSEEs through a national network of carriers including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii and Tufts, all of which provide fully insured policies or service contracts. The policy with United provides the majority of our health insurance coverage. As a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Accordingly, we record the cost of the United portion of the plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense, a component of direct costs, in the Consolidated Statements of Operations. The estimated incurred claims are based upon: (1) the level of claims processed during each quarter; (2) estimated completion rates based upon recent claim development patterns under the plan; and (3) 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 $6.0 million as of December 31, 2018 , and is reported as a long-term asset. As of December 31, 2018 , Plan Costs were more than the net premiums paid and owed to United by $6.3 million . As this amount is less than the agreed-upon $9.0 million surplus maintenance level, the $15.3 million difference is also included in accrued health insurance costs, a current liability , in our Consolidated Balance Sheets. The premiums, including the additional quarterly premiums, owed to United at December 31, 2018 , were $15.2 million , which is included in accrued health insurance costs, a current liability in our Consolidated Balance Sheets. Our benefits costs incurred included a reduction of $1.3 million in 2018 , an increase of $1.2 million in 2017 and an increase of $5.1 million in 2016 for changes in estimated run-off related to prior periods. |
Workers' Compensation Costs | Workers’ Compensation Costs Our workers’ compensation coverage for our WSEEs in our PEO HR Outsourcing solutions has been provided through an arrangement with the Chubb Group of Insurance Companies or its predecessors (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred under the policy regardless of whether we satisfy our responsibilities. Under the Chubb Program, we have financial responsibility to Chubb for the first $1 million layer of claims per occurrence and, for claims over $1 million , up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1 million . Chubb bears the financial responsibility for all claims in excess of these levels. Because we bear the financial responsibility 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 utilize a third-party actuary to estimate our loss development rate, which is primarily based upon the nature of WSEEs’ job responsibilities, the location of WSEEs, 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, 2018 , 2017 and 2016 , we reduced accrued workers’ compensation costs by $18.8 million , $16.3 million and $10.9 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 was 2.6% in 2018 and 1.6% in 2017 ) 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: Year Ended December 31, (in thousands) 2018 2017 Beginning balance $ 207,630 $ 183,928 Accrued claims 72,066 68,194 Present value discount (7,829 ) (4,308 ) Paid claims (42,228 ) (40,184 ) Ending balance $ 229,639 $ 207,630 Current portion of accrued claims $ 42,227 $ 41,137 Long-term portion of accrued claims 187,412 166,493 Total accrued claims $ 229,639 $ 207,630 The current portion of accrued workers’ compensation costs at December 31, 2018 and 2017 includes $3.6 million and $1.8 million , respectively, of workers’ compensation administrative fees. The undiscounted accrued workers’ compensation costs were $247.4 million as of December 31, 2018 and $219.9 million as of December 31, 2017 . 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 WSEE 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 2018 , we received $19.4 million for the return of excess claim funds related to the workers’ compensation program, which decreased deposits. As of December 31, 2018 , we had restricted cash of $42.2 million and deposits of $166.5 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 is included in noncurrent liabilities on our Consolidated Balance Sheets. |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2018 , we have one stock-based employee compensation plan under which we may issue awards. We account for this plan 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 plan to our non-employee directors, officers and other management. Restricted stock grants to officers and other management generally vest over a period of three years from the date of grant. Shares of restricted stock are valued based on the fair value on date of grant and the associated expense, net of estimated forfeitures, is recognized over the vesting period. Commencing in 2017, stock grants issued to non-employee directors upon their initial appointment to the board are 100% vested on the grant date. Annual stock grants issued to non-employee directors are 100% vested on the grant date. Our Insperity Long-Term Incentive Program (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. Commencing in 2016, a portion of the LTIP grant to employees was considered a market-based performance award that vests at the end of a three -year period assuming continued employment and achievement of market-based performance goals. The fair value of each performance unit is the market price of our common stock on the date of grant. The fair value of each market-based performance unit was determined through use of the Monte Carlo simulation method. 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 100% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2018 , 2017 and 2016 . Matching contributions under the Corporate Plan are immediately vested. During 2018 , 2017 and 2016 , we made matching contributions on behalf of corporate employees to the Corporate Plan of $10.3 million , $8.7 million and $8.0 million , respectively, and is included in salaries, wages and payroll taxes in our Consolidated Statements of Operations. Under our separate 401(k) retirement plan for WSEEs (the “Worksite Employee Plan”), the match percentage for WSEEs ranges from 0% to 6% , as determined by each client company. Matching contributions under the Worksite Employee Plan are immediately vested. During 2018 , 2017 and 2016 , we made matching contributions on behalf of WSEEs to the Worksite Employee Plan of $165.5 million , $129.0 million and $108.3 million , respectively. |
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. On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was signed into law. The 2017 Tax Reform Act significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate to 21% beginning in 2018. Please read Note 7 , “ Income Taxes ,” for additional information. |
Reclassification, Policy | Reclassifications Certain prior year amounts have been reclassified to conform to the 2018 presentation. |
New Accounting Pronouncements | New Accounting Pronouncements 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. While our technical analysis is ongoing, we do not expect the new standard to have a material impact to our Consolidated Statements of Operations. We expect the lease commitments discussed in Note 11 , “ Leases ” to appear on our Consolidated Balance Sheets in the form of a lease asset and a lease liability. Such amounts are based on the present value of such commitments using our incremental borrowing rate. We plan to utilize the transition package of practical expedients permitted within the new standard, which among other things, allows us to carryforward the historical lease classification. We do not plan to elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use assets. |
Fair Value of Financial Instruments | 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 |
Fair Value of Other Financial Instruments | Fair Value of Other Financial Instruments The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, deposits and accounts payable approximate their fair values due to the short-term maturities of these instruments. At December 31, 2018 , the carrying value of our borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy. Please read Note 6 , " Long-Term Debt ," for additional information. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Northeast $ 996,541 $ 854,629 $ 750,748 Southeast 447,584 379,874 318,185 Central 637,779 543,486 467,297 Southwest 895,243 767,207 689,334 West 797,942 702,619 664,308 3,775,089 3,247,815 2,889,872 Other revenue 53,460 52,408 51,475 Total revenue $ 3,828,549 $ 3,300,223 $ 2,941,347 |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Land $ 6,215 $ 6,215 Buildings and improvements 112,308 95,615 Computer hardware and software 115,259 105,060 Software development costs 71,332 60,568 Furniture, fixtures and other 45,694 42,891 350,808 310,349 Accumulated depreciation and amortization (233,595 ) (214,690 ) Total property and equipment, net $ 117,213 $ 95,659 |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment for purposes of computing depreciation are as follows: Useful Life 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 |
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 paid workers’ compensation claims: Year Ended December 31, (in thousands) 2018 2017 Beginning balance $ 207,630 $ 183,928 Accrued claims 72,066 68,194 Present value discount (7,829 ) (4,308 ) Paid claims (42,228 ) (40,184 ) Ending balance $ 229,639 $ 207,630 Current portion of accrued claims $ 42,227 $ 41,137 Long-term portion of accrued claims 187,412 166,493 Total accrued claims $ 229,639 $ 207,630 |
Cash, Cash Equivalents and Ma_2
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |
Summary of investments in 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, 2018 2017 (in thousands) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total Overnight holdings $ 311,158 $ — $ 311,158 $ 338,112 $ — $ 338,112 Investments holdings 16,711 60,781 77,492 22,634 1,960 24,594 Cash in demand accounts 33,207 — 33,207 26,700 — 26,700 Outstanding checks (34,303 ) — (34,303 ) (33,186 ) — (33,186 ) Total $ 326,773 $ 60,781 $ 387,554 $ 354,260 $ 1,960 $ 356,220 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities [Table Text Block] | Fair Value of Instruments Measured and Recognized at Fair Value The following tables summarize the levels of fair value measurements of our financial assets: December 31, 2018 December 31, 2017 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 327,869 $ 327,869 $ — $ 360,746 $ 360,746 $ — U.S. Treasury bills 50,147 — 50,147 — — — Municipal bonds 10,634 — 10,634 1,960 — 1,960 Total $ 388,650 $ 327,869 $ 60,781 $ 362,706 $ 360,746 $ 1,960 |
Available-for-sale Securities [Table Text Block] | The following is a summary of our available-for-sale marketable securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 U.S. Treasury bills $ 50,150 $ — $ (3 ) $ 50,147 Municipal bonds 10,641 — (7 ) 10,634 December 31, 2017 U.S. Treasury bills $ — $ — $ — $ — Municipal bonds 1,965 — (5 ) 1,960 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable Additional Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable, net consisted of the following: December 31, (in thousands) 2018 2017 Trade $ 10,015 $ 12,292 Unbilled 385,567 318,431 Other 5,041 3,258 Accounts receivable, net $ 400,623 $ 333,981 |
Unbilled accounts receivable | 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, (in thousands) 2018 2017 Accrued worksite employee payroll cost $ 329,979 $ 267,402 Unbilled revenues 89,765 74,632 Customer prepayments (34,177 ) (23,603 ) Unbilled accounts receivable $ 385,567 $ 318,431 |
Deposits Deposits (Tables)
Deposits Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | |
Deposit Asset, Type [Table Text Block] | Deposits consisted of the following: December 31, (in thousands) 2018 2017 Deposits – health insurance $ 6,200 $ 5,300 Deposits – workers’ compensation 166,474 154,215 Deposits $ 172,674 $ 159,515 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Significant components of net deferred tax assets and net deferred tax liabilities | Significant components of the net deferred tax assets as reflected on the Consolidated Balance Sheets are as follows: December 31, (in thousands) 2018 2017 Deferred tax liabilities Prepaid assets $ (3,306 ) $ (3,957 ) Depreciation (3,918 ) (2,021 ) Software development costs (4,950 ) (3,732 ) Intangibles (474 ) — Total deferred tax liabilities (12,648 ) (9,710 ) Deferred tax assets Accrued incentive compensation 8,612 3,510 Net operating loss carryforward 709 774 Workers’ compensation accruals 4,739 4,586 Accrued rent 918 676 Stock-based compensation 6,183 4,233 Minority investment impairment 676 667 Other 305 216 Total deferred tax assets 22,142 14,662 Valuation allowance (678 ) (669 ) Total net deferred tax assets 21,464 13,993 Net deferred tax assets $ 8,816 $ 4,283 |
Components of income tax expense | The components of income tax expense are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Current income tax expense Federal $ 40,347 $ 30,009 $ 31,045 State 11,133 5,988 5,190 Total current income tax expense 51,480 35,997 36,235 Deferred income tax (benefit) expense Federal (3,398 ) 9,549 2,641 State (1,135 ) 193 310 Total deferred income tax (benefit) expense (4,533 ) 9,742 2,951 Total income tax expense $ 46,947 $ 45,739 $ 39,186 |
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, (in thousands) 2018 2017 2016 Expected income tax expense at 21%, 35% and 35%, respectively $ 38,296 $ 45,549 $ 36,812 State income taxes, net of federal benefit 7,660 4,085 3,684 Nondeductible expenses 4,831 2,649 1,669 Section 199 benefits — (875 ) (686 ) Equity compensation (2,737 ) (6,218 ) (1,338 ) Research and development credit (856 ) (634 ) (751 ) Disaster employee retention credit — (669 ) — Enactment of the 2017 Tax Reform Act — 2,559 — Other, net (247 ) (707 ) (204 ) Reported total income tax expense $ 46,947 $ 45,739 $ 39,186 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
QuarterlydividendsdeclaredTableTextBlock [Table Text Block] | Dividends The Board declared quarterly dividends as follows: (amounts per share) 2018 2017 First quarter $ 0.20 $ 0.125 Second quarter 0.20 0.150 Third quarter 0.20 0.150 Fourth quarter 0.20 1.150 (1) __________________________________ (1) Includes a $1.00 per share special dividend. |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 : Shares (in thousands) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2017 16 $ 15.30 Granted — — Exercised — — Canceled — — Outstanding - December 31, 2018 16 $ 15.30 2.5 $ 1,220 Exercisable - December 31, 2018 16 $ 15.30 2.5 $ 1,220 |
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 2018 : Shares (in thousands) Weighted Average Grant Date Fair Value Non-vested - December 31, 2017 343 $ 35.29 Granted 290 65.98 Vested (14 ) 66.28 Canceled/Forfeited (37 ) 41.37 Non-vested - December 31, 2018 582 $ 49.48 |
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, at 100% of targeted amount, for 2018 : Number of Performance Units (in thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 570 $ 32.90 Granted 100 81.51 Vested (196 ) 26.40 Canceled (48 ) 41.90 Unvested at December 31, 2018 426 $ 46.35 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, (in thousands) 2018 2017 2016 Net income $ 135,413 $ 84,402 $ 65,991 Less distributed and undistributed earnings allocated to participating securities (1,875 ) (1,517 ) (1,496 ) Net income allocated to common shares $ 133,538 $ 82,885 $ 64,495 Weighted average common shares outstanding 41,217 41,067 41,668 Incremental shares from assumed conversions of common stock options and LTIP awards 289 204 94 Adjusted weighted average common shares outstanding 41,506 41,271 41,762 Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect — — — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future minimum rental payments under non cancelable operating leases | At December 31, 2018 , future minimum rental payments under noncancelable operating leases are as follows: (in thousands) Operating Leases 2019 $ 16,542 2020 16,325 2021 13,932 2022 12,791 2023 10,623 Thereafter 23,638 Total minimum lease payments $ 93,851 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future non-cancelable purchase and service obligations | At December 31, 2018 , future purchase and service obligations greater than $100,000 and one year were as follows (in thousands): 2019 $ 16,535 2020 16,782 2021 12,494 2022 6,525 2023 1,954 Thereafter 700 Total obligations $ 54,990 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended (in thousands, except per share amounts) March 31 June 30 Sept. 30 Dec. 31 2018 Revenues $ 1,014,372 $ 922,295 $ 925,126 $ 966,756 Gross profit 199,720 154,544 166,054 161,591 Operating income 64,703 33,581 48,133 32,619 Net income 49,991 24,560 36,207 24,655 Basic net income per share 1.20 0.59 0.86 0.59 Diluted net income per share 1.18 0.58 0.86 0.59 2017 Revenues $ 882,664 $ 795,552 $ 795,513 $ 826,494 Gross profit 159,346 130,553 139,966 142,866 Operating income 53,492 22,938 29,799 23,712 Net income 35,628 14,018 19,202 15,554 Basic net income per share (1) 0.85 0.34 0.46 0.36 Diluted net income per share (1) 0.85 0.33 0.46 0.36 ____________________________________ (1) Adjusted to reflect the two-for-one split of our common stock effected on December 18, 2017 as a stock dividend. |
Accounting Policies (Details)
Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2010USD ($) | Sep. 30, 2010USD ($) | ||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | $ 966,756,000 | $ 925,126,000 | $ 922,295,000 | $ 1,014,372,000 | $ 826,494,000 | $ 795,513,000 | $ 795,552,000 | $ 882,664,000 | $ 3,828,549,000 | [1] | $ 3,300,223,000 | [1] | $ 2,941,347,000 | [1] | |||||
Segment Reporting [Abstract] | |||||||||||||||||||
Number of reportable segments (integer) | 1 | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||
Land | $ 6,215,000 | $ 6,215,000 | |||||||||||||||||
Buildings and Improvements, Gross | 112,308,000 | 95,615,000 | |||||||||||||||||
Computer hardware and software | 115,259,000 | 105,060,000 | |||||||||||||||||
Software development costs | 71,332,000 | 60,568,000 | |||||||||||||||||
Property, Plant and Equipment, Gross | 350,808,000 | 310,349,000 | |||||||||||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (233,595,000) | (214,690,000) | |||||||||||||||||
Furniture and Fixtures, Gross | 45,694,000 | 42,891,000 | |||||||||||||||||
Property, Plant and Equipment, Net | 117,213,000 | 95,659,000 | |||||||||||||||||
Amortization of capitalized computer software costs | $ 6,000,000 | 4,100,000 | 3,000,000 | ||||||||||||||||
Unamortized computer software costs | 19,600,000 | 14,900,000 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Goodwill, Impairment Loss | $ 0 | ||||||||||||||||||
Goodwill, Gross | 21,156,000 | 21,156,000 | |||||||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | (8,470,000) | (8,470,000) | |||||||||||||||||
Goodwill | 12,686,000 | 12,686,000 | |||||||||||||||||
Health Insurance Costs [Abstract] | |||||||||||||||||||
Number of days cash in advance of beginning of reporting quarter United establishes cash funding rates | 90 days | ||||||||||||||||||
Prepaid health insurance | 9,000,000 | 9,000,000 | |||||||||||||||||
Required deposit for health care costs | 6,000,000 | ||||||||||||||||||
Amount which Plan Costs were less than the net premiums paid and owed | (6,300,000) | ||||||||||||||||||
Portion of insurance costs that is less than the agreed upon surplus included in accrued health insurance costs a cnt liab | (15,300,000) | ||||||||||||||||||
Premiums owed to United | (15,200,000) | ||||||||||||||||||
Benefits Costs Incurred Related to Run-off | (1,300,000) | 1,200,000 | $ 5,100,000 | ||||||||||||||||
Workers' Compensation Costs [Abstract] | |||||||||||||||||||
Company's maximum economic burden for the first layer of claims per occurrence | $ 1,000,000 | ||||||||||||||||||
Company's maximum aggregate economic burden for claims in excess of $1 million per policy year | $ 6,000,000 | ||||||||||||||||||
Reduction in accrued workers' compensation costs for changes in estimated losses | $ 18,800,000 | $ 16,300,000 | 10,900,000 | ||||||||||||||||
U.S. Treasury rates that correspond with the weighted average estimated claim payout period (in hundredths) | 2.60% | 1.60% | |||||||||||||||||
Incurred but not paid workers' compensation liabilities | |||||||||||||||||||
Beginning balance | 207,630,000 | 183,928,000 | $ 207,630,000 | $ 183,928,000 | |||||||||||||||
Accrued claims | 72,066,000 | 68,194,000 | |||||||||||||||||
Present value discount | (7,829,000) | (4,308,000) | |||||||||||||||||
Paid claims | (42,228,000) | (40,184,000) | |||||||||||||||||
Ending balance | 229,639,000 | 207,630,000 | 229,639,000 | 207,630,000 | 183,928,000 | ||||||||||||||
Current portion of accrued claims | 42,227,000 | 41,137,000 | |||||||||||||||||
Long-term portion of accrued claims | 187,412,000 | 166,493,000 | |||||||||||||||||
Ending Balance | $ 229,639,000 | $ 207,630,000 | $ 207,630,000 | $ 183,928,000 | 207,630,000 | 183,928,000 | $ 183,928,000 | 229,639,000 | 207,630,000 | $ 183,928,000 | |||||||||
Current portion of workers' compensation administrative fees accrued | 3,600,000 | 1,800,000 | |||||||||||||||||
Undiscounted accrued workers' compensation costs | $ 247,400,000 | $ 219,900,000 | |||||||||||||||||
Time period incurred claims expected to be paid recorded as restricted cash | 1 year | ||||||||||||||||||
Time period incurred claims expected to be paid, included in deposits, a long-term asset | Greater than 1 year | ||||||||||||||||||
Return Of Excess Claim Funds | $ 19,400,000 | ||||||||||||||||||
Restricted Cash and Cash Equivalents, Current | 42,227,000 | 41,137,000 | |||||||||||||||||
Deposits - workers' compensation | $ 166,474,000 | $ 154,215,000 | |||||||||||||||||
Time period estimate of incurred claim costs to be paid included in short term liabilities | 1 year | ||||||||||||||||||
Time period incurred claims expected to be paid, included in long-term liabilities | Greater than 1 year | ||||||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||||||
Number of stock-based employee compensation plans | 1 | ||||||||||||||||||
Vesting period for Initial grants to new members of the Board of Directors | 0 years | 3 years | |||||||||||||||||
Vesting period for officers and other management to be eligible for restricted stock grants, minimum | 3 years | ||||||||||||||||||
Percentage of annual grants issued to directors that are vested (in hundredths) | 100.00% | ||||||||||||||||||
Corporate Employees [Member] | |||||||||||||||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||||||||||||||
Percentage the entity matches of eligible corporate employees' contributions | 100.00% | 100.00% | |||||||||||||||||
Percentage of eligible compensation matched, Minimum | 0.00% | 0.00% | 0.00% | ||||||||||||||||
Percentage of eligible compensation matched, maximum | 6.00% | 6.00% | 6.00% | ||||||||||||||||
Matching contributions to the plan | $ 10,300,000 | $ 8,700,000 | $ 8,000,000 | ||||||||||||||||
Worksite Employees [Member] | |||||||||||||||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||||||||||||||
Percentage of eligible compensation matched, Minimum | 0.00% | ||||||||||||||||||
Percentage of eligible compensation matched, maximum | 6.00% | ||||||||||||||||||
Matching contributions to the plan | $ 165,500,000 | 129,000,000 | 108,300,000 | ||||||||||||||||
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 | ||||||||||||||||||
Northeast [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | $ 996,541,000 | 854,629,000 | 750,748,000 | ||||||||||||||||
Southeast [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | 447,584,000 | 379,874,000 | 318,185,000 | ||||||||||||||||
Central [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | 637,779,000 | 543,486,000 | 467,297,000 | ||||||||||||||||
Southwest [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | 895,243,000 | 767,207,000 | 689,334,000 | ||||||||||||||||
West [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | 797,942,000 | 702,619,000 | 664,308,000 | ||||||||||||||||
Other Revenues [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Revenues1 | $ 53,460,000 | $ 52,408,000 | $ 51,475,000 | ||||||||||||||||
[1] | (1) Revenues are comprised of gross billings less worksite employee (“WSEE”) payroll costs as follows: Year ended December 31,(in thousands)201820172016 Gross billings$23,830,731$20,173,812$17,932,857Less: WSEE payroll cost20,002,18216,873,58914,991,510Revenues$3,828,549$3,300,223$2,941,347 |
Cash, Cash Equivalents and Mare
Cash, Cash Equivalents and Marektable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Money Market Funds, Overnight Holdings, at Carrying Value | $ 311,158 | $ 338,112 |
Short-term Investments | 77,492 | 24,594 |
Cash | 33,207 | 26,700 |
Drafts Payable | (34,303) | (33,186) |
Cash, Cash Equivalents, and Short-term Investments | 387,554 | 356,220 |
Withholding associated with federal and state income taxes, employment taxes and other payroll deductions included in cash balance | 224,500 | 271,500 |
Client Prepayments Included in Cash Balance | 34,177 | 23,603 |
Money Market Funds [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Money Market Funds, Overnight Holdings, at Carrying Value | 0 | 0 |
Short-term Investments | 60,781 | 1,960 |
Cash | 0 | 0 |
Drafts Payable | 0 | 0 |
Cash, Cash Equivalents, and Short-term Investments | 60,781 | 1,960 |
Cash and Cash Equivalents [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Money Market Funds, Overnight Holdings, at Carrying Value | 311,158 | 338,112 |
Short-term Investments | 16,711 | 22,634 |
Cash | 33,207 | 26,700 |
Drafts Payable | (34,303) | (33,186) |
Cash, Cash Equivalents, and Short-term Investments | $ 326,773 | $ 354,260 |
Fair Value Measurements Fair _3
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets, Fair Value Disclosure [Abstract] | ||
Money Market Funds | $ 327,869 | $ 360,746 |
US Government Securities, at Carrying Value | 50,147 | 0 |
Municipal bonds | 10,634 | 1,960 |
Total | 388,650 | 362,706 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 60,781 | |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | 60,791 | |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis | 50,150 | 0 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (3) | 0 |
Fair Value | 50,147 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | 50,147 | |
Municipal Bond [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis | 10,641 | 1,965 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (7) | (5) |
Fair Value | 10,634 | 1,960 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | 10,634 | 1,960 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money Market Funds | 327,869 | 360,746 |
US Government Securities, at Carrying Value | 0 | 0 |
Municipal bonds | 0 | 0 |
Total | 327,869 | 360,746 |
Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money Market Funds | 0 | 0 |
US Government Securities, at Carrying Value | 50,147 | 0 |
Municipal bonds | 10,634 | 1,960 |
Total | $ 60,781 | $ 1,960 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable Additional Disclosures [Abstract] | ||
Accounts Receivable, Net, Current | $ 10,015 | $ 12,292 |
Unbilled accounts receivable | 385,567 | 318,431 |
Other Receivables | 5,041 | 3,258 |
Accounts receivable, net | 400,623 | 333,981 |
Allowance for Doubtful Accounts Receivable, Current | $ 1,000 | 600 |
Accounts receivable, due date prior to applicable payroll date | 1 day | |
Unbilled accounts receivable [Abstract] | ||
Accrued worksite employee payroll cost | $ 329,979 | 267,402 |
Unbilled revenues | 89,765 | 74,632 |
Client Prepayments Included in Cash Balance | 34,177 | 23,603 |
Unbilled accounts receivable | $ 385,567 | $ 318,431 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Deposits – health insurance | $ 6,200 | $ 5,300 |
Deposits – workers’ compensation | 166,474 | 154,215 |
Deposits Assets, Noncurrent | 172,674 | 159,515 |
Prepaid health insurance | $ 9,000 | $ 9,000 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Feb. 06, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility | $ 200,000 | $ 350,000 | ||
Maximum borrowing capacity | $ 400,000 | |||
Percentage of subsidiary stock securing debt (in hundredths) | 0.65 | |||
Unused commitment fee on the average daily unused portion (in hundredths) | 0.25% | |||
Average interest rate for the year | 3.50% | |||
Letters of Credit Outstanding, Amount | $ 1,000 | |||
Long-term debt | $ 144,400 | $ 104,400 | ||
Special dividend | $ 41,700 | $ 50,700 | ||
Alternate base rates, applicable margins [Abstract] | ||||
Applicable margin, federal funds rate (in hundredths) | 0.50% | |||
Applicable margin, 30-day LIBOR (in hundredths) | 2.00% | |||
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) | 1.50% | |||
Applicable margin on variable rate on borrowings, maximum (in hundredths) | 2.25% | |||
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) | 0.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Enactment of US Tax Reform | $ 2,500,000 | ||
Deferred tax liabilities | |||
Prepaid assets | $ (3,306,000) | (3,957,000) | |
Depreciation | (3,918,000) | (2,021,000) | |
Intangibles | (474,000) | 0 | |
Software development costs | (4,950,000) | (3,732,000) | |
Total deferred tax liabilities | (12,648,000) | (9,710,000) | |
Deferred tax assets | |||
Accrued incentive compensation | 8,612,000 | 3,510,000 | |
Net operating loss carryforward | 709,000 | 774,000 | |
Workers’ compensation accruals | 4,739,000 | 4,586,000 | |
Accrued rent | 918,000 | 676,000 | |
Stock-based compensation | 6,183,000 | 4,233,000 | |
Minority investment impairment | 676,000 | 667,000 | |
Other | 305,000 | 216,000 | |
Total deferred tax assets | 22,142,000 | 14,662,000 | |
Valuation allowance | (678,000) | (669,000) | |
Total net deferred tax assets | 21,464,000 | 13,993,000 | |
Net deferred tax assets | 8,816,000 | 4,283,000 | |
Current income tax expense | |||
Federal | 40,347,000 | 30,009,000 | $ 31,045,000 |
State | 11,133,000 | 5,988,000 | 5,190,000 |
Total current income tax expense | 51,480,000 | 35,997,000 | 36,235,000 |
Deferred income tax (benefit) expense | |||
Federal | (3,398,000) | 9,549,000 | 2,641,000 |
State | (1,135,000) | 193,000 | 310,000 |
Total deferred income tax (benefit) expense | (4,533,000) | 9,742,000 | 2,951,000 |
Total income tax expense | 46,947,000 | 45,739,000 | 39,186,000 |
Income tax benefit recognized related to Equity Compensation after adoption of ASU 2016-09, Quantification | $ 2,700,000 | $ 6,800,000 | $ 1,500,000 |
Reconciliation of income tax expense [Abstract] | |||
Assumed income tax rate (in hundredths) | 21.00% | 35.00% | 35.00% |
Expected income tax expense at 21%, 35% and 35%, respectively | $ 38,296,000 | $ 45,549,000 | $ 36,812,000 |
State income taxes, net of federal benefit | 7,660,000 | 4,085,000 | 3,684,000 |
Nondeductible expenses | 4,831,000 | 2,649,000 | 1,669,000 |
Section 199 benefits | 0 | (875,000) | (686,000) |
Equity compensation | (2,737,000) | (6,218,000) | (1,338,000) |
Research and development credit | (856,000) | (634,000) | (751,000) |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | 0 | (669,000) | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | 2,559,000 | 0 |
Other, net | (247,000) | (707,000) | (204,000) |
Total income tax expense | 46,947,000 | 45,739,000 | 39,186,000 |
Business Acquisition [Line Items] | |||
Liability for Uncertain Tax Positions, Current | 0 | $ 0 | $ 0 |
ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Operating Loss Carryforwards | $ 2,800,000 | ||
Minimum [Member] | ExpensAble [Member] | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforwards, expiration date | Jan. 1, 2023 | ||
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 | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 07, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ||||||||||||||
Repurchase of treasury stock (in shares) | 1,066,409 | 594,974 | ||||||||||||
Shares withheld for tax withholding obligations for the vesting of restricted stock awards (in shares) | 132,021 | 305,828 | ||||||||||||
Remaining number of shares authorized to be repurchased (in shares) | 1,611,155 | 1,611,155 | ||||||||||||
MaxAmountOfTenderOfferForRepurchaseOfShares | $ 125,000 | |||||||||||||
Share Price | $ 23.75 | |||||||||||||
Stock Repurchased and Retired During Period, Shares | 6,027,062 | |||||||||||||
Repurchase of common stock | $ 143,100 | $ 144,263 | ||||||||||||
Transaction Costs Related to Tender Offer | $ 1,100 | |||||||||||||
Borrowings under long-term debt agreement | 104,400 | |||||||||||||
Payments of Dividends [Abstract] | ||||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 1.150 | [1] | $ 0.150 | $ 0.150 | $ 0.125 | |||||
Dividends paid | $ 33,408 | $ 65,768 | $ 20,599 | |||||||||||
Class of Stock [Line Items] | ||||||||||||||
Special dividend, per share | $ 1 | |||||||||||||
Special dividend | $ 41,700 | $ 50,700 | ||||||||||||
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
[1] | (1) Includes a $1.00 per share special dividend. |
Incentive Plans (Details)
Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |||
Number of common shares available for grant under the incentive plan (in shares) | 2,680,666 | ||
Share-based compensation | $ 20,425 | $ 24,345 | $ 16,643 |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | 2,300 | ||
Tax benefits (expense) associated with stock-based compensation | $ 5,300 | $ 8,500 | $ 6,200 |
Stock option activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 16,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Canceled (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 16,000 | 16,000 | |
Exercisable, ending balance (in shares) | 16,000 | ||
Weighted average exercise price [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $ 15.30 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | 15.30 | $ 15.30 | |
Exercisable, ending balance (in dollars per share) | $ 15.30 | ||
Weighted average remaining contractual life, stock option awards outstanding at end of year (in years) | 2 years 6 months | ||
Weighted average remaining contractual life, stock option awards exercisable at end of year (in years) | 2 years 6 months | ||
Aggregate intrinsic value of options outstanding, ending balance | $ 1,220 | ||
Aggregate intrinsic value of options exercisable ending balance | $ 1,220 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards vesting period | 3 years | ||
Employee Stock Purchase Plan (ESPP) [Abstract] | |||
ESPP Stock Issued During Period (in shares) | 30,000 | 38,000 | 34,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares vested during the year | $ 1,200 | $ 46,000 | $ 16,200 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 18,400 | ||
Unrecognized compensation expense, period for recognition (in months) | 22 months | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
Balance at 12/31/2017 (in shares) | 343,000 | ||
Granted (in shares) | 290,000 | ||
Canceled (in shares) | (37,000) | ||
Balance at 12/31/2018 (in shares) | 582,000 | 343,000 | |
Vested (in shares) | 14,000 | ||
Weighted Average Grant Date Fair Value, Equity Instruments Other than Options [Abstract] | |||
Balance at 12/31/2016 (in dollars per share) | $ 35.29 | ||
Granted (in dollars per share) | 65.98 | $ 42.15 | $ 26.33 |
Vested (in dollars per share) | 66.28 | ||
Canceled (in dollars per share) | 41.37 | ||
Balance at 12/31/2017 (in dollars per share) | $ 49.48 | $ 35.29 | |
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] | |||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
Balance at 12/31/2017 (in shares) | 570,000 | ||
Granted (in shares) | 100,000 | ||
Canceled (in shares) | (48,000) | ||
Balance at 12/31/2018 (in shares) | 426,000 | 570,000 | |
Vested (in shares) | 196,000 | ||
Weighted Average Grant Date Fair Value, Equity Instruments Other than Options [Abstract] | |||
Balance at 12/31/2016 (in dollars per share) | $ 32.90 | ||
Granted (in dollars per share) | 81.51 | ||
Vested (in dollars per share) | 26.40 | ||
Canceled (in dollars per share) | 41.90 | ||
Balance at 12/31/2017 (in dollars per share) | $ 46.35 | $ 32.90 | |
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 | ||
2015LTIPAward [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Issued in Period (in shares) | 371,000 | ||
Fair value of shares vested during the year | $ 24,200 | ||
2016LTIPAwards [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 | $ 400 | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
NumberofShareExpectedtoVestBasedOnCurrentEstimatesofPerformanceAchievment | 345,000 | ||
2017LTIPAwards [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 | $ 3,400 | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
NumberofShareExpectedtoVestBasedOnCurrentEstimatesofPerformanceAchievment | 202,000 | ||
2018LTIPAwards [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 | $ 8,600 | ||
Equity Instruments Other than Options, Nonvested, Number of Shares[Roll Forward] | |||
NumberofShareExpectedtoVestBasedOnCurrentEstimatesofPerformanceAchievment | 176,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 24,655 | $ 36,207 | $ 24,560 | $ 49,991 | $ 15,554 | $ 19,202 | $ 14,018 | $ 35,628 | $ 135,413 | $ 84,402 | $ 65,991 |
Less distributed and undistributed earnings allocated to participating securities | 1,875 | 1,517 | 1,496 | ||||||||
Net income allocated to common shares | $ 133,538 | $ 82,885 | $ 64,495 | ||||||||
Weighted average common shares outstanding | 41,217 | 41,067 | 41,668 | ||||||||
Incremental shares from assumed conversions of common stock options and LTIP awards | 289 | 204 | 94 | ||||||||
Adjusted weighted average common shares outstanding | 41,506 | 41,271 | 41,762 | ||||||||
Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect | 0 | 0 | 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rental expense | $ 15,400 | $ 15,400 | $ 15,000 |
Operating leases minimum payments due [Abstract] | |||
2,019 | 16,542 | ||
2,020 | 16,325 | ||
2,021 | 13,932 | ||
2,022 | 12,791 | ||
2,023 | 10,623 | ||
Thereafter | 23,638 | ||
Total minimum lease payments | $ 93,851 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
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] | |
2,019 | $ 16,535 |
2,020 | 16,782 |
2,021 | 12,494 |
2,022 | 6,525 |
2,023 | 1,954 |
Thereafter | 700 |
Total obligations | $ 54,990 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Revenues1 | $ 966,756 | $ 925,126 | $ 922,295 | $ 1,014,372 | $ 826,494 | $ 795,513 | $ 795,552 | $ 882,664 | $ 3,828,549 | [1] | $ 3,300,223 | [1] | $ 2,941,347 | [1] | ||||
Gross profit | 161,591 | 166,054 | 154,544 | 199,720 | 142,866 | 139,966 | 130,553 | 159,346 | 681,909 | 572,731 | 491,610 | |||||||
Operating income | 32,619 | 48,133 | 33,581 | 64,703 | 23,712 | 29,799 | 22,938 | 53,492 | 179,036 | 129,941 | 106,306 | |||||||
Net income | $ 24,655 | $ 36,207 | $ 24,560 | $ 49,991 | $ 15,554 | $ 19,202 | $ 14,018 | $ 35,628 | $ 135,413 | $ 84,402 | $ 65,991 | |||||||
Basic net income per share of common stock (in dollars per share) | $ 0.59 | $ 0.86 | $ 0.59 | $ 1.20 | $ 0.36 | [2] | $ 0.46 | [2] | $ 0.34 | [2] | $ 0.85 | [2] | $ 3.24 | $ 2.02 | $ 1.55 | |||
Diluted net income per share (in dollars per share) | $ 0.59 | $ 0.86 | $ 0.58 | $ 1.18 | $ 0.36 | [2] | $ 0.46 | [2] | $ 0.33 | [2] | $ 0.85 | [2] | $ 3.22 | $ 2.01 | $ 1.54 | |||
[1] | (1) Revenues are comprised of gross billings less worksite employee (“WSEE”) payroll costs as follows: Year ended December 31,(in thousands)201820172016 Gross billings$23,830,731$20,173,812$17,932,857Less: WSEE payroll cost20,002,18216,873,58914,991,510Revenues$3,828,549$3,300,223$2,941,347 | |||||||||||||||||
[2] | (1) Adjusted to reflect the two-for-one split of our common stock effected on December 18, 2017 as a stock dividend. |