Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-10427 | ||
Entity Registrant Name | ROBERT HALF INTERNATIONAL INC. | ||
Entity Central Index Key | 0000315213 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1648752 | ||
Entity Address, Address Line One | 2884 Sand Hill Road | ||
Entity Address, City or Town | Menlo Park | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94025 | ||
City Area Code | 650 | ||
Local Phone Number | 234-6000 | ||
Title of 12(b) Security | Common Stock, Par Value $.001 per Share | ||
Trading Symbol | RHI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,518,872,985 | ||
Entity Common Stock, Shares Outstanding | 115,120,403 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement to be mailed to stockholders in connection with the registrant’s annual meeting of stockholders, scheduled to be held in May 2020, are incorporated by reference in Part III of this report. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 270,478 | $ 276,579 |
Accounts receivable, less allowances of $28,756 and $27,678 | 832,797 | 794,446 |
Other current assets | 525,574 | 402,585 |
Total current assets | 1,628,849 | 1,473,610 |
Property and equipment, net | 128,385 | 125,176 |
Right-of-use assets | 241,029 | |
Other intangible assets, net | 1,752 | 3,149 |
Goodwill | 210,364 | 209,958 |
Noncurrent deferred income taxes | 101,029 | 91,204 |
Total assets | 2,311,408 | 1,903,097 |
LIABILITIES | ||
Accounts payable and accrued expenses | 123,841 | 168,031 |
Accrued payroll and benefit costs | 743,602 | 638,769 |
Income taxes payable | 1,623 | 12,536 |
Notes payable, current | 218 | 200 |
Current operating lease liabilities | 71,408 | |
Total current liabilities | 940,692 | 819,536 |
Notes payable, less current portion | 239 | 457 |
Noncurrent operating lease liabilities | 201,961 | |
Other liabilities | 24,833 | 19,906 |
Total liabilities | 1,167,725 | 839,899 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.001 par value; authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $.001 par value; authorized 260,000,000 shares; issued and outstanding 115,120,404 and 119,078,491 shares | 115 | 119 |
Additional paid-in capital | 1,127,487 | 1,079,188 |
Accumulated other comprehensive income (loss) | (19,986) | (16,109) |
Retained earnings | 36,067 | 0 |
Total stockholders’ equity | 1,143,683 | 1,063,198 |
Total liabilities and stockholders’ equity | $ 2,311,408 | $ 1,903,097 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 28,756 | $ 27,678 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, issued (in shares) | 115,120,404 | 119,078,491 |
Common stock, outstanding (in shares) | 115,120,404 | 119,078,491 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Service revenues | $ 6,074,432 | $ 5,800,271 | $ 5,266,789 |
Costs of services | 3,543,913 | 3,390,257 | 3,102,977 |
Gross margin | 2,530,519 | 2,410,014 | 2,163,812 |
Selling, general and administrative expenses | 1,908,768 | 1,821,089 | 1,646,532 |
Amortization of intangible assets | 1,361 | 1,705 | 1,563 |
Interest income, net | (5,125) | (4,382) | (1,799) |
Income before income taxes | 625,515 | 591,602 | 517,516 |
Provision for income taxes | 171,082 | 157,314 | 226,932 |
Net income | $ 454,433 | $ 434,288 | $ 290,584 |
Net income per share: | |||
Basic (usd per share) | $ 3.93 | $ 3.60 | $ 2.34 |
Diluted (usd per share) | $ 3.90 | $ 3.57 | $ 2.33 |
Shares: | |||
Basic (in shares) | 115,656 | 120,513 | 124,152 |
Diluted (in shares) | 116,411 | 121,602 | 124,892 |
Dividends declared per share (usd per share) | $ 1.24 | $ 1.12 | $ 0.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
COMPREHENSIVE INCOME (LOSS): | |||
Net income | $ 454,433 | $ 434,288 | $ 290,584 |
Foreign currency translation adjustments, net of tax | (1,553) | (19,616) | 24,009 |
Foreign defined benefit plans, net of tax | (2,324) | 0 | 0 |
Total other comprehensive income (loss) | (3,877) | (19,616) | 24,009 |
Total comprehensive income (loss) | $ 450,556 | $ 414,672 | $ 314,593 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2016 | $ 1,086,599 | $ 128 | $ 1,022,411 | $ (20,502) | $ 84,562 |
Balance at beginning of period, (in shares) at Dec. 31, 2016 | 127,797 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 290,584 | 290,584 | |||
Other comprehensive income (loss) | 24,009 | 24,009 | |||
Dividends declared | (121,082) | (121,082) | |||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||
Net issuances of restricted stock (in shares) | 918 | ||||
Stock-based compensation expense | 42,191 | 42,191 | |||
Repurchases of common stock | (217,036) | $ (5) | (217,031) | ||
Repurchases of common stock, (in shares) | (4,454) | ||||
Balance at end of period at Dec. 31, 2017 | 1,105,265 | $ 124 | 1,064,601 | 3,507 | 37,033 |
Balance at end of period, (in shares) at Dec. 31, 2017 | 124,261 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 434,288 | 434,288 | |||
Other comprehensive income (loss) | (19,616) | (19,616) | |||
Dividends declared | (136,824) | (30,365) | (106,459) | ||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||
Net issuances of restricted stock (in shares) | 666 | ||||
Stock-based compensation expense | 44,953 | 44,953 | |||
Repurchases of common stock | (364,868) | $ (6) | (364,862) | ||
Repurchases of common stock, (in shares) | (5,849) | ||||
Balance at end of period at Dec. 31, 2018 | 1,063,198 | $ 119 | 1,079,188 | (16,109) | 0 |
Balance at end of period, (in shares) at Dec. 31, 2018 | 119,078 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 454,433 | 454,433 | |||
Other comprehensive income (loss) | (3,877) | (3,877) | |||
Dividends declared | (145,726) | (145,726) | |||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||
Net issuances of restricted stock (in shares) | 647 | ||||
Stock-based compensation expense | 48,300 | 48,300 | |||
Repurchases of common stock | (272,645) | $ (5) | (272,640) | ||
Repurchases of common stock, (in shares) | (4,605) | ||||
Balance at end of period at Dec. 31, 2019 | $ 1,143,683 | $ 115 | $ 1,127,487 | $ (19,986) | $ 36,067 |
Balance at end of period, (in shares) at Dec. 31, 2019 | 115,120 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retained Earnings | |||
Cash dividends, per share (usd per share) | $ 1.24 | $ 1.12 | $ 0.96 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 454,433 | $ 434,288 | $ 290,584 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for doubtful accounts | 9,868 | 11,914 | 8,022 |
Depreciation | 64,264 | 64,244 | 63,930 |
Amortization of Cloud Computing Implementation Costs | 3,624 | 0 | 0 |
Amortization of intangible assets | 1,361 | 1,705 | 1,563 |
Stock-based compensation | 48,300 | 44,953 | 42,191 |
Deferred income taxes | (9,473) | (15,885) | 44,091 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (48,461) | (86,217) | (17,039) |
Capitalized cloud computing implementation costs | (30,338) | 0 | 0 |
Accounts payable and accrued expenses | (9,204) | 32,428 | 1,328 |
Accrued payroll and benefit cost | 60,883 | 57,287 | 46,504 |
Income taxes payable | (18,798) | 28,900 | (9,655) |
Other assets and liabilities, net | (6,830) | (1,295) | (18,528) |
Net cash flows provided by operating activities | 519,629 | 572,322 | 452,991 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (59,464) | (42,484) | (40,753) |
Payments for employee deferred compensation plans | (71,432) | (69,716) | (56,924) |
Redemptions from employee deferred compensation plans | 28,758 | 23,691 | 20,340 |
Payments for acquisitions, net of cash acquired | 0 | 0 | (1,160) |
Net cash flows used in investing activities | (102,138) | (88,509) | (78,497) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from (Repayments of) Debt | (200) | (183) | (167) |
Repurchases of common stock | (277,535) | (353,509) | (231,724) |
Dividends paid | (145,631) | (136,423) | (121,000) |
Net cash flows used in financing activities | (423,366) | (490,115) | (352,891) |
Effect of exchange rate fluctuations | (226) | (11,872) | 12,949 |
Change in cash and cash equivalents | (6,101) | (18,174) | 34,552 |
Cash and cash equivalents at beginning of period | 276,579 | 294,753 | 260,201 |
Cash and cash equivalents at end of period | 270,478 | 276,579 | 294,753 |
Cash paid during the year for: | |||
Interest | 232 | 233 | 278 |
Income taxes, net of refunds | 191,522 | 137,147 | 190,954 |
Non-cash items: | |||
Stock repurchases awaiting settlement | $ 6,469 | $ 11,359 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations. Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting , OfficeTeam ® , Robert Half ® Technology , Robert Half ® Management Resources , Robert Half ® Legal , The Creative Group ® , and Protiviti ® . The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit. Revenues are predominantly derived from specialized staffing services. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation. Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the 2019 presentation. Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include allowances for uncollectible accounts receivable, variable consideration, workers’ compensation losses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions. Service Revenues. The Company derives its revenues from three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Revenues are recognized when promised goods or services are delivered to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C for further discussion of the revenue recognition accounting policy. Costs of Services. Direct costs of temporary and consultant staffing consist of payroll, payroll taxes and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement staffing services consist of reimbursable expenses. Risk consulting and internal audit direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs were $54.3 million, $52.5 million, and $49.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. Comprehensive Income. Comprehensive income includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income are foreign currency translation and defined benefit plan adjustments. Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows: Level 1: observable inputs for identical assets or liabilities, such as quoted prices in active markets Level 2: inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3: unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and other securities classified as trading to support its deferred compensation plans, which are carried at fair value based on quoted market prices in active markets for identical assets (level 1). Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. The Company determines the fair value of these items using level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. Accounts Receivable Allowances. The Company maintains allowances for estimated losses resulting from the inability of its customers to make required payments. The Company establishes these allowances based on its review of customers’ credit profiles, historical loss statistics and current trends. The adequacy of these allowances is reviewed each reporting period. Historically, the Company’s actual losses have been consistent with these allowances. Leases. The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Company’s Condensed Consolidated Statement of Financial Position. The Company does not currently have finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed lease payments and index-based variable lease payments. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. The operating lease ROU assets include any payments made before the commencement date and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not currently have subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company has contracts with lease and non-lease components, which are accounted for on a combined basis. Goodwill and Intangible Assets . Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two Income Taxes . The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes. In establishing its deferred income tax assets and liabilities and its provision for income taxes, the Company makes judgments and interpretations based on the enacted tax laws that are applicable to its operations in various jurisdictions. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of its deferred tax assets is dependent on future taxable income and the effectiveness of its tax planning strategies in the various relevant jurisdictions. The Company also evaluates the need for valuation allowances to reduce the deferred tax assets to realizable amounts. Management evaluates all positive and negative evidence and uses judgment regarding past and future events, including operating results, to help determine when it is more likely than not that all or some portion of the deferred tax assets may not be realized. When appropriate, a valuation allowance is recorded against deferred tax assets to offset future tax benefits that may not be realized. Valuation allowances of $21.6 million and $23.1 million were recorded as of December 31, 2019 and 2018, respectively. The valuation allowances recorded related primarily to net operating losses in certain foreign operations. If such losses are ultimately utilized to offset future operating income, the Company will recognize a tax benefit up to the full amount of the valuation reserve. Workers’ Compensation . Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes ongoing healthcare and indemnity coverage for claims and may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for Incurred But Not Reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period includes estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is their local currency. The results of operations of the Company’s foreign subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s foreign subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations, and have not been material for all periods presented. Stock-based Compensation . Under various stock plans, officers, employees and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award, unless the awards are subject to performance conditions, in which case the Company recognizes compensation expense over the requisite service period of each separate vesting tranche. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. No stock appreciation rights have been granted under the Company’s existing stock plans. The Company has not granted any options to purchase common stock since 2006. Property and Equipment . Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Cloud computing implementation costs incurred in hosting arrangements are capitalized and reported as a component of other assets. All other internal-use software development costs are capitalized and reported as a component of computer software within property and equipment on the Condensed Consolidated Statements of Financial Position. Capitalized internal-use software development costs were $35.6 million, $3.3 million, and $9.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Lease Accounting . In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of January 1, 2019, using the transition method that allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of this guidance had a material impact on the Company’s Condensed Consolidated Statement of Financial Position beginning January 1, 2019. Prior periods were not restated. See Note F for further discussion of leases. Internal-use Software — Cloud Computing. In August 2018, the FASB issued authoritative guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Entities are required to present the expense related to capitalized implementation costs in the same line item in the statement of operations as the fees associated with the hosting elements of the arrangement and classify the payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. Entities are also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment of the fees of the associated hosting arrangement would be presented. The new guidance is effective for annual and interim periods beginning after December 15, 2019, although early adoption is permitted. The Company adopted the new guidance prospectively as of January 1, 2019. Recently Issued Accounting Pronouncements Not Yet Adopted Current Expected Credit Losses Model. In June 2016, the FASB issued authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company derives its revenues from three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Revenues are recognized when promised goods or services are delivered to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service revenues as presented on the Consolidated Statements of Operations represent services rendered to customers less variable consideration, such as sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in service revenues, and equivalent amounts of reimbursable expenses are included in costs of services. Temporary and consultant staffing revenues. Temporary and consultant staffing revenues from contracts with customers are recognized in the amount to which the Company has a right to invoice, when the services are rendered by the Company’s engagement professionals. The substantial majority of engagement professionals placed on assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers. The Company records temporary and consultant staffing revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties and (iii) bears the risk for services that are not fully paid for by customers. Fees paid to Time Management or Vendor Management service providers selected by clients are recorded as a reduction of revenues, as the Company is not the primary obligor with respect to those services. Permanent placement staffing revenues. Permanent placement staffing revenues from contracts with customers are primarily recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the financial impact of permanent placement candidates who do not remain with its clients through the 90-day guarantee period. These amounts are established based primarily on historical data and are recorded as contract liabilities. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement services are charged to employment candidates. Risk consulting and internal audit services revenues. Risk consulting and internal audit services are generally provided on a time-and-material basis or fixed-fee basis. Revenues earned under time-and-material arrangements and fixed-fee arrangements are recognized using a proportional performance method. Revenue is measured using cost incurred relative to total estimated cost for the engagement to measure progress towards satisfying the Company’s performance obligations. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer. Risk consulting and internal audit services generally contain one or more performance obligation(s) which are satisfied over a period of time. Revenues are recognized over time as the performance obligations are satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date. The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred. The following table presents the Company’s revenues disaggregated by line of business (in thousands): Years Ended December 31, 2019 2018 2017 Accountemps $ 1,946,404 $ 1,915,054 $ 1,765,666 OfficeTeam 1,037,341 1,063,238 984,873 Robert Half Technology 722,535 682,889 629,278 Robert Half Management Resources 705,845 669,385 631,225 Temporary and consulting staffing 4,412,125 4,330,566 4,011,042 Permanent placement staffing 533,432 511,989 439,214 Risk consulting and internal audit services 1,128,875 957,716 816,533 Service revenues $ 6,074,432 $ 5,800,271 $ 5,266,789 Payment terms in our contracts vary by the type and location of our customer and the services offered. The term between invoicing and when payment is due is not significant. Contracts with multiple performance obligations are recognized as performance obligations are delivered, and contract value is allocated based on relative stand-alone selling values of the services and products in the arrangement. As of December 31, 2019, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $81.7 million. Of this amount, $77.1 million is expected to be recognized within the next twelve months. As of December 31, 2018, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $58.8 million. Contract liabilities are recorded when cash payments are received or due in advance of performance and are reflected in accounts payable and accrued expenses on the Consolidated Statements of Financial Position. The following table sets forth the activity in contract liabilities from January 1, 2018 through December 31, 2019 (in thousands): Contract Liabilities Balance as of January 1, 2018 $ 9,003 Payments in advance of satisfaction of performance obligations 12,170 Revenue recognized (10,542) Other, including translation adjustments 2,366 Balance as of December 31, 2018 $ 12,997 Payments in advance of satisfaction of performance obligations 13,030 Revenue recognized (12,072) Other, including translation adjustments (1,007) Balance as of December 31, 2019 $ 12,948 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consisted of the following (in thousands): December 31, 2019 2018 Deferred compensation plans $ 398,442 $ 311,708 Prepaid expenses 84,364 52,887 Other 42,768 37,990 Other current assets $ 525,574 $ 402,585 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in thousands): December 31, 2019 2018 Computer hardware $ 164,547 $ 177,237 Computer software 291,681 378,734 Furniture and equipment 88,136 117,740 Leasehold improvements 150,644 160,521 Property and equipment, cost 695,008 834,232 Accumulated depreciation (566,623) (709,056) Property and equipment, net $ 128,385 $ 125,176 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 7 years, and some of which include options to terminate the leases within 1 year. Operating lease expense for the year ended December 31, 2019, was $77.7 million. Rental expense, primarily for offices premises, was $89.4 million and $87.5 million for the years ended December 31, 2018 and 2017, respectively. Supplemental cash flow information related to leases consisted of the following (in thousands): Year Ended December 31, 2019 Cash paid for operating lease liabilities $ 78,152 Right-of-use assets obtained in exchange for new operating lease liabilities $ 32,170 Supplemental balance sheet information related to leases consisted of the following: December 31, 2019 Weighted average remaining lease term for operating leases 4.8 years Weighted average discount rate for operating leases 3.0 % Future minimum lease payments under non-cancellable leases as of December 31, 2019, were as follows (in thousands): 2020 $ 77,813 2021 63,534 2022 49,737 2023 40,811 2024 31,178 Thereafter 30,674 Less: Imputed interest (20,378) Present value of operating lease liabilities (a) $ 273,369 (a) Includes current portion of $71.4 million for operating leases. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table sets forth the activity in goodwill from December 31, 2017, through December 31, 2019 (in thousands): Goodwill Temporary and consultant staffing Permanent placement staffing Risk consulting and internal audit services Total Balance as of December 31, 2017 $ 134,488 $ 26,159 $ 50,238 $ 210,885 Foreign currency translation adjustments (421) (101) (405) (927) Balance as of December 31, 2018 $ 134,067 $ 26,058 $ 49,833 $ 209,958 Foreign currency translation adjustments 143 39 224 406 Balance as of December 31, 2019 $ 134,210 $ 26,097 $ 50,057 $ 210,364 |
Accrued Payroll and Benefit Cos
Accrued Payroll and Benefit Costs | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Payroll and Benefit Costs | Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): December 31, 2019 2018 Employee deferred compensation plans $ 421,198 $ 333,528 Payroll and benefits 280,918 263,072 Payroll taxes 21,831 23,918 Workers’ compensation 19,655 18,251 Accrued payroll and benefit costs $ 743,602 $ 638,769 The Company provides various qualified defined contribution 401(k) plans covering eligible employees. The plans offer a savings feature with the Company matching employee contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. Nonqualified plans are provided for employees not eligible for the qualified plans. These plans include provisions for salary deferrals and Company matching and discretionary contributions. The asset value of the nonqualified plans was $398.4 million and $311.7 million as of December 31, 2019 and 2018, respectively, and is included in other current assets in the Consolidated Statements of Financial Position. The liability value for the nonqualified plans was $421.2 million and $333.5 million as of December 31, 2019 and 2018, respectively, and is included in current accrued payroll and benefit costs in the Consolidated Statements of Financial Position. Deferred compensation plan and other benefits related to the Company’s executive chairman were $91.8 million and $89.2 million as of December 31, 2019 and 2018, respectively, and are included in the liability value for the nonqualified plans. Net unrealized gains and (losses) on these nonqualified plan assets and liabilities were $44.2 million, ($26.6) million, and $19.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company’s contribution expense for its qualified defined contribution plans and nonqualified benefits plans totaled $26.1 million, $24.2 million, and $21.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company has statutory defined contribution plans and defined benefit plans outside the U.S., which are not material. |
Notes Payable and Other Indebte
Notes Payable and Other Indebtedness | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable and Other Indebtedness | Notes Payable The Company issued promissory notes in connection with certain acquisitions and other payment obligations. These notes are due in varying installments and, in aggregate, amounted to $0.5 million at December 31, 2019, and $0.7 million at December 31, 2018. At December 31, 2019, $0.5 million of the notes were collateralized by a standby letter of credit. The following table shows the schedule of maturities for notes payable at December 31, 2019 (in thousands): 2020 $ 218 2021 239 $ 457 At December 31, 2019, the notes carried fixed rates and the weighted average interest rate for the above was 9.0% for each of the years ended December 31, 2019, 2018 and 2017. The Company has an uncommitted letter of credit facility (the “facility”) of up to $35.0 million, which is available to cover the issuance of debt support standby letters of credit. The Company had used $16.8 million in debt support standby letters of credit as of December 31, 2019, and $14.4 million as of December 31, 2018. Of the debt support standby letters of credit outstanding, $16.3 million as of December 31, 2019, and $13.7 million as of December 31, 2018, satisfies workers’ compensation insurer’s collateral requirements. There is a service fee of 1.125% on the used portion of the facility. The facility is subject to certain financial covenants and expires on August 31, 2020. The Company was in compliance with these covenants as of December 31, 2019. The Company intends to renew this facility prior to its August 31, 2020 expiration. In March 2019, the Company entered into an uncommitted credit facility (the “Credit Agreement”) of up to $100 million. The Company may request borrowings under the Credit Agreement that are denominated in U.S. dollars and each request is subject to approval by the lender. The Company must repay the aggregate principal amount of loans outstanding under the Credit Agreement on the termination date of each borrowing. Borrowings under the Credit Agreement will bear interest in accordance with the terms of the borrowing, which typically will be calculated according to the London Interbank Offered Rate plus an applicable margin. There were no borrowings under the Credit Agreement as of December 31, 2019. The Company intends to renew this facility prior to its March 19, 2020, expiration. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ 107,699 $ 99,830 $ 133,097 State 39,028 38,356 24,944 Foreign 33,227 35,007 27,079 Deferred: Federal and state (9,959) $ (15,849) $ 41,717 Foreign 1,087 (30) 95 $ 171,082 $ 157,314 $ 226,932 Income before the provision for income taxes for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ 545,695 $ 485,489 $ 445,418 Foreign 79,820 106,113 72,098 $ 625,515 $ 591,602 $ 517,516 The income taxes shown above varied from the statutory federal income tax rates for these periods as follows: Years Ended December 31, 2019 2018 2017 Federal U.S. income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 4.9 4.7 3.7 Permanent book/tax differences 1.1 0.6 0.4 Non-U.S. income taxed at different rates, net of foreign tax credits 2.1 2.0 — Federal tax credits (1.4) (1.7) (1.3) Tax impact of uncertain tax positions 0.2 0.8 0.2 Tax effects of TCJA — 0.4 6.5 Other, net (0.5) (1.2) (0.6) Effective tax rate 27.4 % 26.6 % 43.9 % The deferred portion of the tax (benefit) provision consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Accrued expenses, deducted for tax when paid $ (17,797) $ (21,884) $ 15,213 Capitalized costs for books, deducted for tax 3,246 (4,832) (5,790) Depreciation 3,526 10,071 (4,079) Tax effects of TCJA — — 34,633 Other, net 2,153 766 1,835 $ (8,872) $ (15,879) $ 41,812 The components of the deferred income tax amounts at December 31, 2019 and 2018, were as follows (in thousands): December 31, 2019 2018 Deferred Income Tax Assets Deferred compensation and other benefit obligations $ 105,096 $ 87,513 Credits and net operating loss carryforwards 25,130 31,169 Stock-based compensation 7,805 9,535 Provision for bad debts 7,944 7,891 Workers’ compensation 3,929 3,580 Operating lease liabilities 51,932 — Other 10,256 14,959 Total deferred income tax assets 212,092 154,647 Deferred Income Tax Liabilities Amortization of intangible assets (22,009) (21,210) Property and equipment basis differences (16,981) (9,761) Right-of-use assets (44,448) — Other (7,278) (10,319) Total deferred income tax liabilities (90,716) (41,290) Valuation allowance (21,618) (23,072) Total deferred income tax assets, net $ 99,758 $ 90,285 Credits and net operating loss carryforwards primarily include net operating losses in foreign countries of $21.7 million that expire in 2020 and later; and California enterprise zone tax credits of $3.0 million that expire in 2023. Of the $3.0 million of California enterprise zone tax credits, the Company expects that it will utilize $1.2 million of these credits prior to expiration. Valuation allowances of $19.9 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $1.8 million has been maintained against California enterprise zone tax credits. As of December 31, 2019, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of foreign subsidiaries that may be repatriated. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2017 to December 31, 2019 (in thousands): December 31, 2019 2018 2017 Balance at beginning of period $ 8,418 $ 2,886 $ 731 Gross increases—tax positions in prior years — 3,259 1,503 Gross decreases—tax positions in prior years (760) (8) (257) Gross increases—tax positions in current year 1,703 2,284 956 Settlements (4) — (40) Lapse of statute of limitations (3) (3) (7) Balance at end of period $ 9,354 $ 8,418 $ 2,886 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $9.3 million, $8.3 million and $2.8 million for 2019, 2018 and 2017, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2019 is $0.5 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2018 was $0.3 million, including a $0.2 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2017, was $0.1 million. The Company does not believe it is reasonably possible that the settlement of tax uncertainties will occur within the next twelve months. The Company’s major income tax jurisdictions are the United States, Australia, Belgium, Canada, France, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2016 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2015 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2012 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010 were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney General Act (“PAGA”). On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. On April 6, 2018, Plaintiff Shari Dorff, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, County of Los Angeles. In addition to certain claims individual to Plaintiff Dorff, the complaint alleges that salaried recruiters based in California have been misclassified as exempt employees and seeks an unspecified amount for: unpaid wages resulting from such alleged misclassification; alleged failure to provide a reasonable opportunity to take meal periods and rest breaks; alleged failure to pay wages on a timely basis both during employment and upon separation; alleged failure to comply with California requirements regarding wage statements and record-keeping; and alleged improper denial of expense reimbursement. Plaintiff Dorff also seeks an unspecified amount of other damages, attorneys’ fees, and penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program. As of December 31, 2019, the Company is authorized to repurchase, from time to time, up to 2.5 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands): Years Ended December 31, 2019 2018 2017 Common stock repurchased (in shares) 4,253 5,614 4,046 Common stock repurchased $ 250,154 $ 351,194 $ 196,645 Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands): Years Ended December 31, 2019 2018 2017 Repurchases related to employee stock plans (in shares) 352 235 408 Repurchases related to employee stock plans $ 22,491 $ 13,674 $ 20,391 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Treasury stock activity for each of the three years ended December 31, 2019, 2018 and 2017 (consisting of purchase of shares for the treasury) is presented in the Consolidated Statements of Stockholders’ Equity. Dividends. The Company’s Board of Directors may at their discretion declare and pay cash dividends upon the shares of the Company’s stock either out of the Company’s retained earnings or additional paid-in capital. The dividends declared per share were $1.24, $1.12, and $.96 during the years ended December 31, 2019, 2018 and 2017, respectively. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. Grants have been made at the discretion of the Committees of the Board of Directors. Grants generally vest either on a straight-line basis over four years or on a cliff basis over three years. Shares offered under the plan are authorized but unissued shares. Recipients of restricted stock do not pay any cash consideration to the Company for the shares and have the right to vote all shares subject to such grant. Restricted stock grants contain forfeitable rights to dividends. Dividends for these grants are accrued on the dividend payment dates but are not paid until the shares vest, and dividends accrued for shares that ultimately do not vest are forfeited. Recipients of stock units do not pay any cash consideration for the units, do not have the right to vote, and do not receive dividends with respect to such units. During the year ended December 31, 2019, the Company granted performance shares to its executives in the form of restricted stock. The shares granted contain (1) a performance condition based on Return on Invested Capital (“ROIC”), and (2) a market condition based on Total Shareholder Return (“TSR”). The ROIC performance condition and the TSR market condition measure the Company’s performance against a peer group. Shares will be delivered at the end of a three Company and the components of the peer group. The stock price movements have been modeled such that the dividends are incorporated in the returns of each company’s stock, therefore the Monte Carlo simulation reflects a 0% dividend yield for each stock. The use of a 0% dividend yield is mathematically equivalent to including the dividends in the calculation of TSR. The risk-free interest rate is equal to the yield, as of the valuation date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance period. Unrecognized compensation cost is expected to be recognized over the next four years. Total unrecognized compensation cost, net of estimated forfeitures, for restricted stock and stock units was $71.6 million, $65.6 million, and $62.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. The following table reflects activity under all stock plans from December 31, 2016 through December 31, 2019, and the weighted average exercise prices (in thousands, except per share amounts): Time Based Awards Performance Based Awards with Market Conditions Performance Based Awards without Market Conditions Total Awards with Performance Condition Number of Weighted Number of Weighted Number of Weighted Number of Weighted Outstanding, December 31, 2016 1,243 $43.78 950 $54.42 — — 950 $54.42 Granted 574 $48.10 50 $50.09 330 $47.45 380 $47.80 Restrictions lapsed (616) $44.09 (384) $50.09 — — (384) $50.09 Forfeited (41) $43.68 — — — — — — Outstanding, December 31, 2017 1,160 $45.75 616 $56.76 330 $47.45 946 $53.51 Granted 533 $57.16 — — 278 $56.83 278 $56.83 Restrictions lapsed (568) $47.62 (129) $71.86 — — (129) $71.86 Forfeited (40) $49.10 (129) $71.86 — — (129) $71.86 Outstanding, December 31, 2018 1,085 $50.24 358 $45.93 608 $51.74 966 $49.58 Granted 434 $66.66 236 $74.01 — — 236 $74.01 Restrictions lapsed (557) $50.29 (338) $45.93 — — (338) $45.93 Forfeited (15) $53.85 (20) $45.93 — — (20) $45.93 Outstanding, December 31, 2019 947 $57.67 236 $74.01 608 $51.74 844 $57.97 The total fair value of shares vested was $57.0 million, $40.6 million, and $50.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The calculation of net income per share for the three years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Net income $ 454,433 $ 434,288 $ 290,584 Basic: Weighted average shares 115,656 120,513 124,152 Diluted: Weighted average shares 115,656 120,513 124,152 Dilutive effect of potential common shares 755 1,089 740 Diluted weighted average shares 116,411 121,602 124,892 Net income per share: Basic $ 3.93 $ 3.60 $ 2.34 Diluted $ 3.90 $ 3.57 $ 2.33 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services segment provides business and technology risk consulting and internal audit services. The accounting policies of the segments are set forth in Note A—Summary of Significant Accounting Policies. The Company evaluates performance based on income from operations before net interest income, intangible amortization expense, and income taxes. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results (in thousands): Years Ended December 31, 2019 2018 2017 Service revenues Temporary and consultant staffing $ 4,412,125 $ 4,330,566 $ 4,011,042 Permanent placement staffing 533,432 511,989 439,214 Risk consulting and internal audit services 1,128,875 957,716 816,533 $ 6,074,432 $ 5,800,271 $ 5,266,789 Operating income Temporary and consultant staffing $ 410,153 $ 404,800 $ 355,700 Permanent placement staffing 83,885 90,801 77,673 Risk consulting and internal audit services 127,713 93,324 83,907 621,751 588,925 517,280 Amortization of intangible assets 1,361 1,705 1,563 Interest income, net (5,125) (4,382) (1,799) Income before income taxes $ 625,515 $ 591,602 $ 517,516 Assets by reportable segment are not presented as the Company does not allocate assets to its reportable segments, nor is such information used by management for purposes of assessing performance or allocating resources. The Company operates internationally, with operations in North America, South America, Europe, Asia and Australia. The following tables represent revenues and long-lived assets by geographic location (in thousands): Years Ended December 31, 2019 2018 2017 Service revenues (a) Domestic $ 4,708,715 $ 4,433,767 $ 4,121,701 Foreign (b) 1,365,717 1,366,504 1,145,088 $ 6,074,432 $ 5,800,271 $ 5,266,789 December 31, 2019 2018 2017 Property and equipment, net Domestic $ 99,365 $ 96,169 $ 113,069 Foreign 29,020 29,007 31,818 $ 128,385 $ 125,176 $ 144,887 (a) There were no customers that accounted for more than 10% of the Company’s total service revenues in any year presented. (b) No individual country represented more than 10% of revenues in any year presented. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tabulation shows certain quarterly financial data for 2019 and 2018 (in thousands, except per share amounts): Quarter 2019 1 2 3 4 Service revenues $ 1,468,530 $ 1,516,385 $ 1,552,132 $ 1,537,385 Gross margin $ 607,588 $ 637,541 $ 646,446 $ 638,944 Income before income taxes $ 147,383 $ 160,103 $ 163,782 $ 154,247 Net income $ 109,798 $ 114,612 $ 117,181 $ 112,842 Basic net income per share $ .94 $ .98 $ 1.02 $ .99 Diluted net income per share $ .93 $ .98 $ 1.01 $ .98 Quarter 2018 1 2 3 4 Service revenues $ 1,395,333 $ 1,457,054 $ 1,466,226 $ 1,481,658 Gross margin $ 572,366 $ 607,118 $ 610,468 $ 620,062 Income before income taxes $ 134,639 $ 150,075 $ 151,905 $ 154,983 Net income $ 96,167 $ 109,315 $ 115,242 $ 113,564 Basic net income per share $ .79 $ .90 $ .96 $ .96 Diluted net income per share $ .78 $ .89 $ .95 $ .95 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 12, 2020, the Company announced the following: Quarterly dividend per share $.34 Declaration date February 12, 2020 Record date February 25, 2020 Payment date March 16, 2020 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands) Balance at Charged to Deductions Translation Balance at Year Ended December 31, 2017 Allowance for doubtful accounts receivable $ 33,133 8,022 (8,751) 777 $ 33,181 Deferred tax valuation allowance $ 18,907 1,411 (1,275) 1,135 $ 20,178 Year Ended December 31, 2018 Allowance for doubtful accounts receivable $ 23,682 (a) 11,914 (8,690) 772 $ 27,678 Deferred tax valuation allowance $ 20,178 5,683 (2,599) (190) $ 23,072 Year Ended December 31, 2019 Allowance for doubtful accounts receivable $ 27,678 9,868 (8,687) (103) $ 28,756 Deferred tax valuation allowance $ 23,072 719 (2,154) (19) $ 21,618 (a) In accordance with its adoption of ASC 606 Revenue from Contracts with Customers, on January 1, 2018, the Company reclassified certain allowances that are now reflected as liabilities in the amount of $9.5 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include allowances for uncollectible accounts receivable, variable consideration, workers’ compensation losses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions. |
Service Revenues and Costs of Services | Service Revenues. The Company derives its revenues from three segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Revenues are recognized when promised goods or services are delivered to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C for further discussion of the revenue recognition accounting policy. Costs of Services. Direct costs of temporary and consultant staffing consist of payroll, payroll taxes and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement staffing services consist of reimbursable expenses. Risk consulting and internal audit direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. |
Advertising Costs | Advertising Costs. The Company expenses all advertising costs as incurred. |
Comprehensive Income | Comprehensive Income. Comprehensive income includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income are foreign currency translation and defined benefit plan adjustments. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows: Level 1: observable inputs for identical assets or liabilities, such as quoted prices in active markets Level 2: inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3: unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and other securities classified as trading to support its deferred compensation plans, which are carried at fair value based on quoted market prices in active markets for identical assets (level 1). Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. The Company determines the fair value of these items using level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. |
Accounts Receivable Allowances | Accounts Receivable Allowances. The Company maintains allowances for estimated losses resulting from the inability of its customers to make required payments. The Company establishes these allowances based on its review of customers’ credit profiles, historical loss statistics and current trends. The adequacy of these allowances is reviewed each reporting period. Historically, the Company’s actual losses have been consistent with these allowances. |
Leases | Leases. The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and noncurrent operating lease liabilities on the Company’s Condensed Consolidated Statement of Financial Position. The Company does not currently have finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed lease payments and index-based variable lease payments. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. The operating lease ROU assets include any payments made before the commencement date and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not currently have subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company has contracts with lease and non-lease components, which are accounted for on a combined basis. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets . Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two |
Income Taxes | Income Taxes . The Company’s operations are subject to U.S. federal, state and local, and foreign income taxes. In establishing its deferred income tax assets and liabilities and its provision for income taxes, the Company makes judgments and interpretations based on the enacted tax laws that are applicable to its operations in various jurisdictions. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the |
Workers' Compensation | Workers’ Compensation . Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes ongoing healthcare and indemnity coverage for claims and may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for Incurred But Not Reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period includes estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third party actuarial valuations based upon historical loss statistics which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. |
Foreign Currency Translation | Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is their local currency. The results of operations of the Company’s foreign subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s foreign subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive income within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations, and have not been material for all periods presented. |
Stock-based Compensation | Stock-based Compensation . Under various stock plans, officers, employees and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award, unless the awards are subject to performance conditions, in which case the Company recognizes compensation expense over the requisite service period of each separate vesting tranche. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes a binomial-lattice model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation expense. |
Property and Equipment | Property and Equipment . Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease |
Internal-use Software | Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Cloud computing implementation costs incurred in hosting arrangements are capitalized and reported as a component of other assets. All other internal-use software development costs are capitalized and reported as a component of computer software within property and equipment on the Condensed Consolidated Statements of Financial Position. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Lease Accounting . In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of January 1, 2019, using the transition method that allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The adoption of this guidance had a material impact on the Company’s Condensed Consolidated Statement of Financial Position beginning January 1, 2019. Prior periods were not restated. See Note F for further discussion of leases. Internal-use Software — Cloud Computing. In August 2018, the FASB issued authoritative guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Entities are required to present the expense related to capitalized implementation costs in the same line item in the statement of operations as the fees associated with the hosting elements of the arrangement and classify the payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. Entities are also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment of the fees of the associated hosting arrangement would be presented. The new guidance is effective for annual and interim periods beginning after December 15, 2019, although early adoption is permitted. The Company adopted the new guidance prospectively as of January 1, 2019. Recently Issued Accounting Pronouncements Not Yet Adopted Current Expected Credit Losses Model. In June 2016, the FASB issued authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Depreciation Expense Computed Using Straight-Line Method over Useful Lives | Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Property and equipment consisted of the following (in thousands): December 31, 2019 2018 Computer hardware $ 164,547 $ 177,237 Computer software 291,681 378,734 Furniture and equipment 88,136 117,740 Leasehold improvements 150,644 160,521 Property and equipment, cost 695,008 834,232 Accumulated depreciation (566,623) (709,056) Property and equipment, net $ 128,385 $ 125,176 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Line of Business | The following table presents the Company’s revenues disaggregated by line of business (in thousands): Years Ended December 31, 2019 2018 2017 Accountemps $ 1,946,404 $ 1,915,054 $ 1,765,666 OfficeTeam 1,037,341 1,063,238 984,873 Robert Half Technology 722,535 682,889 629,278 Robert Half Management Resources 705,845 669,385 631,225 Temporary and consulting staffing 4,412,125 4,330,566 4,011,042 Permanent placement staffing 533,432 511,989 439,214 Risk consulting and internal audit services 1,128,875 957,716 816,533 Service revenues $ 6,074,432 $ 5,800,271 $ 5,266,789 |
Schedule of Contract Liability Activity | The following table sets forth the activity in contract liabilities from January 1, 2018 through December 31, 2019 (in thousands): Contract Liabilities Balance as of January 1, 2018 $ 9,003 Payments in advance of satisfaction of performance obligations 12,170 Revenue recognized (10,542) Other, including translation adjustments 2,366 Balance as of December 31, 2018 $ 12,997 Payments in advance of satisfaction of performance obligations 13,030 Revenue recognized (12,072) Other, including translation adjustments (1,007) Balance as of December 31, 2019 $ 12,948 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2019 2018 Deferred compensation plans $ 398,442 $ 311,708 Prepaid expenses 84,364 52,887 Other 42,768 37,990 Other current assets $ 525,574 $ 402,585 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Property and equipment consisted of the following (in thousands): December 31, 2019 2018 Computer hardware $ 164,547 $ 177,237 Computer software 291,681 378,734 Furniture and equipment 88,136 117,740 Leasehold improvements 150,644 160,521 Property and equipment, cost 695,008 834,232 Accumulated depreciation (566,623) (709,056) Property and equipment, net $ 128,385 $ 125,176 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases consisted of the following (in thousands): Year Ended December 31, 2019 Cash paid for operating lease liabilities $ 78,152 Right-of-use assets obtained in exchange for new operating lease liabilities $ 32,170 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases consisted of the following: December 31, 2019 Weighted average remaining lease term for operating leases 4.8 years Weighted average discount rate for operating leases 3.0 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of December 31, 2019, were as follows (in thousands): 2020 $ 77,813 2021 63,534 2022 49,737 2023 40,811 2024 31,178 Thereafter 30,674 Less: Imputed interest (20,378) Present value of operating lease liabilities (a) $ 273,369 (a) Includes current portion of $71.4 million for operating leases. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Activity in Goodwill | The following table sets forth the activity in goodwill from December 31, 2017, through December 31, 2019 (in thousands): Goodwill Temporary and consultant staffing Permanent placement staffing Risk consulting and internal audit services Total Balance as of December 31, 2017 $ 134,488 $ 26,159 $ 50,238 $ 210,885 Foreign currency translation adjustments (421) (101) (405) (927) Balance as of December 31, 2018 $ 134,067 $ 26,058 $ 49,833 $ 209,958 Foreign currency translation adjustments 143 39 224 406 Balance as of December 31, 2019 $ 134,210 $ 26,097 $ 50,057 $ 210,364 |
Accrued Payroll and Benefit C_2
Accrued Payroll and Benefit Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Payroll and Benefit Costs | Accrued payroll and benefit costs consisted of the following (in thousands): December 31, 2019 2018 Employee deferred compensation plans $ 421,198 $ 333,528 Payroll and benefits 280,918 263,072 Payroll taxes 21,831 23,918 Workers’ compensation 19,655 18,251 Accrued payroll and benefit costs $ 743,602 $ 638,769 |
Notes Payable and Other Indeb_2
Notes Payable and Other Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities for Notes Payable and Other Indebtedness | The following table shows the schedule of maturities for notes payable at December 31, 2019 (in thousands): 2020 $ 218 2021 239 $ 457 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ 107,699 $ 99,830 $ 133,097 State 39,028 38,356 24,944 Foreign 33,227 35,007 27,079 Deferred: Federal and state (9,959) $ (15,849) $ 41,717 Foreign 1,087 (30) 95 $ 171,082 $ 157,314 $ 226,932 |
Income Before Provision for Income Taxes | Income before the provision for income taxes for the years ended December 31, 2019, 2018 and 2017, consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ 545,695 $ 485,489 $ 445,418 Foreign 79,820 106,113 72,098 $ 625,515 $ 591,602 $ 517,516 |
Difference of Income Taxes from Statutory Federal Income Tax Rates | The income taxes shown above varied from the statutory federal income tax rates for these periods as follows: Years Ended December 31, 2019 2018 2017 Federal U.S. income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 4.9 4.7 3.7 Permanent book/tax differences 1.1 0.6 0.4 Non-U.S. income taxed at different rates, net of foreign tax credits 2.1 2.0 — Federal tax credits (1.4) (1.7) (1.3) Tax impact of uncertain tax positions 0.2 0.8 0.2 Tax effects of TCJA — 0.4 6.5 Other, net (0.5) (1.2) (0.6) Effective tax rate 27.4 % 26.6 % 43.9 % |
Deferred Portion of Tax Provision (Benefit) | The deferred portion of the tax (benefit) provision consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Accrued expenses, deducted for tax when paid $ (17,797) $ (21,884) $ 15,213 Capitalized costs for books, deducted for tax 3,246 (4,832) (5,790) Depreciation 3,526 10,071 (4,079) Tax effects of TCJA — — 34,633 Other, net 2,153 766 1,835 $ (8,872) $ (15,879) $ 41,812 |
Components of Deferred Income Tax Amounts | The components of the deferred income tax amounts at December 31, 2019 and 2018, were as follows (in thousands): December 31, 2019 2018 Deferred Income Tax Assets Deferred compensation and other benefit obligations $ 105,096 $ 87,513 Credits and net operating loss carryforwards 25,130 31,169 Stock-based compensation 7,805 9,535 Provision for bad debts 7,944 7,891 Workers’ compensation 3,929 3,580 Operating lease liabilities 51,932 — Other 10,256 14,959 Total deferred income tax assets 212,092 154,647 Deferred Income Tax Liabilities Amortization of intangible assets (22,009) (21,210) Property and equipment basis differences (16,981) (9,761) Right-of-use assets (44,448) — Other (7,278) (10,319) Total deferred income tax liabilities (90,716) (41,290) Valuation allowance (21,618) (23,072) Total deferred income tax assets, net $ 99,758 $ 90,285 |
Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2017 to December 31, 2019 (in thousands): December 31, 2019 2018 2017 Balance at beginning of period $ 8,418 $ 2,886 $ 731 Gross increases—tax positions in prior years — 3,259 1,503 Gross decreases—tax positions in prior years (760) (8) (257) Gross increases—tax positions in current year 1,703 2,284 956 Settlements (4) — (40) Lapse of statute of limitations (3) (3) (7) Balance at end of period $ 9,354 $ 8,418 $ 2,886 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Number and Cost of Common Stock Shares Repurchased | The number and the cost of common stock shares repurchased during the years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands): Years Ended December 31, 2019 2018 2017 Common stock repurchased (in shares) 4,253 5,614 4,046 Common stock repurchased $ 250,154 $ 351,194 $ 196,645 |
Number and Cost of Employee Stock Plan Repurchases | The number and the cost of employee stock plan repurchases made during the years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands): Years Ended December 31, 2019 2018 2017 Repurchases related to employee stock plans (in shares) 352 235 408 Repurchases related to employee stock plans $ 22,491 $ 13,674 $ 20,391 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Activity Under All Stock Plans and Weighted Average Exercise Prices | The following table reflects activity under all stock plans from December 31, 2016 through December 31, 2019, and the weighted average exercise prices (in thousands, except per share amounts): Time Based Awards Performance Based Awards with Market Conditions Performance Based Awards without Market Conditions Total Awards with Performance Condition Number of Weighted Number of Weighted Number of Weighted Number of Weighted Outstanding, December 31, 2016 1,243 $43.78 950 $54.42 — — 950 $54.42 Granted 574 $48.10 50 $50.09 330 $47.45 380 $47.80 Restrictions lapsed (616) $44.09 (384) $50.09 — — (384) $50.09 Forfeited (41) $43.68 — — — — — — Outstanding, December 31, 2017 1,160 $45.75 616 $56.76 330 $47.45 946 $53.51 Granted 533 $57.16 — — 278 $56.83 278 $56.83 Restrictions lapsed (568) $47.62 (129) $71.86 — — (129) $71.86 Forfeited (40) $49.10 (129) $71.86 — — (129) $71.86 Outstanding, December 31, 2018 1,085 $50.24 358 $45.93 608 $51.74 966 $49.58 Granted 434 $66.66 236 $74.01 — — 236 $74.01 Restrictions lapsed (557) $50.29 (338) $45.93 — — (338) $45.93 Forfeited (15) $53.85 (20) $45.93 — — (20) $45.93 Outstanding, December 31, 2019 947 $57.67 236 $74.01 608 $51.74 844 $57.97 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Net Income Per Share | The calculation of net income per share for the three years ended December 31, 2019, 2018 and 2017, are reflected in the following table (in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Net income $ 454,433 $ 434,288 $ 290,584 Basic: Weighted average shares 115,656 120,513 124,152 Diluted: Weighted average shares 115,656 120,513 124,152 Dilutive effect of potential common shares 755 1,089 740 Diluted weighted average shares 116,411 121,602 124,892 Net income per share: Basic $ 3.93 $ 3.60 $ 2.34 Diluted $ 3.90 $ 3.57 $ 2.33 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results | The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results (in thousands): Years Ended December 31, 2019 2018 2017 Service revenues Temporary and consultant staffing $ 4,412,125 $ 4,330,566 $ 4,011,042 Permanent placement staffing 533,432 511,989 439,214 Risk consulting and internal audit services 1,128,875 957,716 816,533 $ 6,074,432 $ 5,800,271 $ 5,266,789 Operating income Temporary and consultant staffing $ 410,153 $ 404,800 $ 355,700 Permanent placement staffing 83,885 90,801 77,673 Risk consulting and internal audit services 127,713 93,324 83,907 621,751 588,925 517,280 Amortization of intangible assets 1,361 1,705 1,563 Interest income, net (5,125) (4,382) (1,799) Income before income taxes $ 625,515 $ 591,602 $ 517,516 |
Revenue and Long-Lived Assets by Geographic Location | The following tables represent revenues and long-lived assets by geographic location (in thousands): Years Ended December 31, 2019 2018 2017 Service revenues (a) Domestic $ 4,708,715 $ 4,433,767 $ 4,121,701 Foreign (b) 1,365,717 1,366,504 1,145,088 $ 6,074,432 $ 5,800,271 $ 5,266,789 December 31, 2019 2018 2017 Property and equipment, net Domestic $ 99,365 $ 96,169 $ 113,069 Foreign 29,020 29,007 31,818 $ 128,385 $ 125,176 $ 144,887 (a) There were no customers that accounted for more than 10% of the Company’s total service revenues in any year presented. (b) No individual country represented more than 10% of revenues in any year presented. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following tabulation shows certain quarterly financial data for 2019 and 2018 (in thousands, except per share amounts): Quarter 2019 1 2 3 4 Service revenues $ 1,468,530 $ 1,516,385 $ 1,552,132 $ 1,537,385 Gross margin $ 607,588 $ 637,541 $ 646,446 $ 638,944 Income before income taxes $ 147,383 $ 160,103 $ 163,782 $ 154,247 Net income $ 109,798 $ 114,612 $ 117,181 $ 112,842 Basic net income per share $ .94 $ .98 $ 1.02 $ .99 Diluted net income per share $ .93 $ .98 $ 1.01 $ .98 Quarter 2018 1 2 3 4 Service revenues $ 1,395,333 $ 1,457,054 $ 1,466,226 $ 1,481,658 Gross margin $ 572,366 $ 607,118 $ 610,468 $ 620,062 Income before income taxes $ 134,639 $ 150,075 $ 151,905 $ 154,983 Net income $ 96,167 $ 109,315 $ 115,242 $ 113,564 Basic net income per share $ .79 $ .90 $ .96 $ .96 Diluted net income per share $ .78 $ .89 $ .95 $ .95 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | On February 12, 2020, the Company announced the following: Quarterly dividend per share $.34 Declaration date February 12, 2020 Record date February 25, 2020 Payment date March 16, 2020 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Advertising costs | $ 54,300,000 | $ 52,500,000 | $ 49,400,000 |
Goodwill [Line Items] | |||
Valuation allowance | 21,618,000 | $ 23,072,000 | |
Provision for workers' compensation claims threshold | $ 500,000 | ||
Minimum | |||
Goodwill [Line Items] | |||
Amortized life assigned to identifiable intangible assets (in years) | 2 years | ||
Maximum | |||
Goodwill [Line Items] | |||
Amortized life assigned to identifiable intangible assets (in years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer hardware | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer hardware | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Internal Use Software (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Capitalized internal-use software development costs | $ 35.6 | $ 3.3 | $ 9 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Line of Business (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue from Contract with Customer [Abstract] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Guarantee period | 90 days | ||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | $ 1,537,385 | $ 1,552,132 | $ 1,516,385 | $ 1,468,530 | $ 1,481,658 | $ 1,466,226 | $ 1,457,054 | $ 1,395,333 | $ 6,074,432 | $ 5,800,271 | $ 5,266,789 |
Accountemps | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 1,946,404 | 1,915,054 | 1,765,666 | ||||||||
OfficeTeam | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 1,037,341 | 1,063,238 | 984,873 | ||||||||
Robert Half Technology | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 722,535 | 682,889 | 629,278 | ||||||||
Robert Half Management Resources | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 705,845 | 669,385 | 631,225 | ||||||||
Temporary and consulting staffing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 4,412,125 | 4,330,566 | 4,011,042 | ||||||||
Permanent placement staffing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | 533,432 | 511,989 | 439,214 | ||||||||
Risk consulting and internal audit services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service revenues | $ 1,128,875 | $ 957,716 | $ 816,533 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Aggregate transaction price allocated to performance obligations | $ 81.7 | $ 58.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Aggregate transaction price allocated to performance obligations | $ 77.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, expected duration | 12 months |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Contract Liability Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 12,997 | $ 9,003 |
Payments in advance of satisfaction of performance obligations | 13,030 | 12,170 |
Revenue recognized | (12,072) | (10,542) |
Other, including translation adjustments | 1,007 | (2,366) |
Ending balance | $ 12,948 | $ 12,997 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred compensation plans | $ 398,442 | $ 311,708 |
Prepaid expenses | 84,364 | 52,887 |
Other | 42,768 | 37,990 |
Other current assets | $ 525,574 | $ 402,585 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 695,008 | $ 834,232 | |
Accumulated depreciation | (566,623) | (709,056) | |
Property and equipment, net | 128,385 | 125,176 | $ 144,887 |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 164,547 | 177,237 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 291,681 | 378,734 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 88,136 | 117,740 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 150,644 | $ 160,521 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Option to extend lease term | 7 years | ||
Option to terminate lease term | 1 year | ||
Operating lease expense | $ 77.7 | ||
Rental expense | $ 89.4 | $ 87.5 | |
Operating leases, not yet commenced, amount | $ 45.5 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease term | 1 year | ||
Operating lease, not yet commenced, amount | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Remaining lease term | 10 years | ||
Operating lease, not yet commenced, amount | 8 years |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash Flow, Operating Activities, Lessee [Abstract] | |
Cash paid for operating lease liabilities | $ 78,152 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 32,170 |
Operating Leases, Weighted Average Remaining Lease Term [Abstract] | |
Weighted average remaining lease term for operating leases | 4 years 9 months 18 days |
Operating Leases, Weighted Average Discount Rate, Percent [Abstract] | |
Weighted average discount rate for operating leases | 3.00% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 77,813 |
2021 | 63,534 |
2022 | 49,737 |
2023 | 40,811 |
2024 | 31,178 |
Thereafter | 30,674 |
Less: Imputed interest | (20,378) |
Present value of operating lease liabilities | 273,369 |
Current operating lease liabilities | $ 71,408 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 209,958 | $ 210,885 |
Foreign currency translation adjustments | 406 | (927) |
Ending balance | 210,364 | 209,958 |
Temporary and consultant staffing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 134,067 | 134,488 |
Foreign currency translation adjustments | 143 | (421) |
Ending balance | 134,210 | 134,067 |
Permanent placement staffing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 26,058 | 26,159 |
Foreign currency translation adjustments | 39 | (101) |
Ending balance | 26,097 | 26,058 |
Risk consulting and internal audit services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 49,833 | 50,238 |
Foreign currency translation adjustments | 224 | (405) |
Ending balance | $ 50,057 | $ 49,833 |
Accrued Payroll and Benefit C_3
Accrued Payroll and Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | $ 421,198 | $ 333,528 | |
Payroll and benefits | 280,918 | 263,072 | |
Payroll taxes | 21,831 | 23,918 | |
Workers’ compensation | 19,655 | 18,251 | |
Accrued payroll and benefit costs | 743,602 | 638,769 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Asset value of nonqualified plans | 398,442 | 311,708 | |
Employee deferred compensation plans | 421,198 | 333,528 | |
Net unrealized gains (losses) on nonqualified plan assets and liabilities | 44,200 | (26,600) | $ 19,400 |
Contribution expense for qualified and nonqualified plans | 26,100 | 24,200 | $ 21,100 |
Nonqualified Plan | |||
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | 421,200 | 333,500 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Asset value of nonqualified plans | 398,400 | 311,700 | |
Employee deferred compensation plans | 421,200 | 333,500 | |
Nonqualified Plan | Chief Executive Officer | |||
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | 91,800 | 89,200 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employee deferred compensation plans | $ 91,800 | $ 89,200 |
Notes Payable and Other Indeb_3
Notes Payable and Other Indebtedness - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Promissory notes and other forms of indebtedness, issued | $ 500,000 | $ 700,000 | ||
Fixed rate | 9.00% | 9.00% | 9.00% | |
Uncommitted letter of credit facility | $ 35,000,000 | |||
Debt support standby letters of credit | $ 16,800,000 | $ 14,400,000 | ||
Service fee percentage | 1.125% | |||
Credit Agreement | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Uncommitted letter of credit facility | $ 100,000,000 | |||
Standby letter of credit | ||||
Debt Instrument [Line Items] | ||||
Promissory notes and other forms of indebtedness collateralized | $ 500,000 | |||
Standby letters of credit used for collateral requirements | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | $ 16,300,000 | $ 13,700,000 |
Notes Payable and Other Indeb_4
Notes Payable and Other Indebtedness - Schedule of Maturities for Notes Payable and Other Indebtedness (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 218 |
2021 | 239 |
Notes payable and other indebtedness | $ 457 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 107,699 | $ 99,830 | $ 133,097 |
State | 39,028 | 38,356 | 24,944 |
Foreign | 33,227 | 35,007 | 27,079 |
Deferred: | |||
Federal and state | (9,959) | (15,849) | 41,717 |
Foreign | 1,087 | (30) | 95 |
Provision (benefit) for income taxes | $ 171,082 | $ 157,314 | $ 226,932 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 545,695 | $ 485,489 | $ 445,418 | ||||||||
Foreign | 79,820 | 106,113 | 72,098 | ||||||||
Income before income taxes | $ 154,247 | $ 163,782 | $ 160,103 | $ 147,383 | $ 154,983 | $ 151,905 | $ 150,075 | $ 134,639 | $ 625,515 | $ 591,602 | $ 517,516 |
Income Taxes - Difference of In
Income Taxes - Difference of Income Taxes from Statutory Federal Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal U.S. income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal tax benefit | 4.90% | 4.70% | 3.70% |
Permanent book/tax differences | 1.10% | 0.60% | 0.40% |
Non-U.S. income taxed at different rates, net of foreign tax credits | 2.10% | 2.00% | 0.00% |
Federal tax credits | (1.40%) | (1.70%) | (1.30%) |
Tax impact of uncertain tax positions | 0.20% | 0.80% | 0.20% |
Tax effects of TCJA | 0.00% | 0.40% | 6.50% |
Other, net | (0.50%) | (1.20%) | (0.60%) |
Effective tax rate | 27.40% | 26.60% | 43.90% |
Income Taxes - Deferred Portion
Income Taxes - Deferred Portion of Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Accrued expenses, deducted for tax when paid | $ (17,797) | $ (21,884) | $ 15,213 |
Capitalized costs for books, deducted for tax | 3,246 | (4,832) | (5,790) |
Depreciation | 3,526 | 10,071 | (4,079) |
Tax effects of TCJA | 0 | 0 | 34,633 |
Other, net | 2,153 | 766 | 1,835 |
Deferred portion of the tax provision (benefit) | $ (8,872) | $ (15,879) | $ 41,812 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Income Tax Assets | ||
Deferred compensation and other benefit obligations | $ 105,096 | $ 87,513 |
Credits and net operating loss carryforwards | 25,130 | 31,169 |
Stock-based compensation | 7,805 | 9,535 |
Provision for bad debts | 7,944 | 7,891 |
Workers’ compensation | 3,929 | 3,580 |
Operating lease liabilities | 51,932 | |
Other | 10,256 | 14,959 |
Total deferred income tax assets | 212,092 | 154,647 |
Deferred Income Tax Liabilities | ||
Amortization of intangible assets | (22,009) | (21,210) |
Property and equipment basis differences | (16,981) | (9,761) |
Right-of-use assets | (44,448) | |
Other | (7,278) | (10,319) |
Total deferred income tax liabilities | (90,716) | (41,290) |
Valuation allowance | (21,618) | (23,072) |
Total deferred income tax assets, net | $ 99,758 | $ 90,285 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Amount expected to be utilized of tax credit carry forwards expiring in the and beyond the stated year | $ 1,200 | ||
Valuation allowance | 21,618 | $ 23,072 | |
Unrecognized tax benefits, impact on effective tax rate | 9,300 | 8,300 | $ 2,800 |
Accrued interest and penalties | 500 | 300 | $ 100 |
Increase (decrease) in income tax expense | 200 | $ 200 | |
Foreign Countries | |||
Income Taxes [Line Items] | |||
Valuation allowance | 19,900 | ||
Foreign Countries | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, foreign | 21,700 | ||
California enterprise zone | |||
Income Taxes [Line Items] | |||
California enterprise zone tax credits | 3,000 | ||
California enterprise zone | California Enterprise Zone | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 1,800 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 8,418 | $ 2,886 | $ 731 |
Gross increases—tax positions in prior years | 0 | 3,259 | 1,503 |
Gross decreases—tax positions in prior years | (760) | (8) | (257) |
Gross increases—tax positions in current year | 1,703 | 2,284 | 956 |
Settlements | (4) | 0 | (40) |
Lapse of statute of limitations | (3) | (3) | (7) |
Balance at end of period | $ 9,354 | $ 8,418 | $ 2,886 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Gentry Case | |
Loss Contingencies [Line Items] | |
Allegations loss | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) shares in Millions | Dec. 31, 2019shares |
Equity [Abstract] | |
Shares remaining under existing repurchase program | 2.5 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Common stock repurchased (in shares) | 4,253 | 5,614 | 4,046 |
Common stock repurchased | $ 250,154 | $ 351,194 | $ 196,645 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Repurchases related to employee stock plans (in shares) | 352 | 235 | 408 |
Repurchases related to employee stock plans | $ 22,491 | $ 13,674 | $ 20,391 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Dividends declared per share (usd per share) | $ 1.24 | $ 1.12 | $ 0.96 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for grants (in years) | 3 years |
Historical volatility | 26.20% |
Dividend yield | 0.00% |
Historical volatility | 2 years 8 months 15 days |
Risk-free interest rate | 2.36% |
Unrecognized compensation cost expected to be recognized over the period (years) | 4 years |
Total number of available shares to grant | 4.8 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual shares earned, possible percentage on target award | 75.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual shares earned, possible percentage on target award | 125.00% |
Restricted stock and stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for grants (in years) | 3 years |
Restricted stock and stock units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for grants (in years) | 4 years |
ROIC Award | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual shares earned, possible percentage on target award | 0.00% |
ROIC Award | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual shares earned, possible percentage on target award | 150.00% |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock and stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 71.6 | $ 65.6 | $ 62.7 |
Stock Plans - Activity Under Al
Stock Plans - Activity Under All Stock Plans and Weighted Average Exercise Prices (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Time Based Awards | |||
Number of Shares/Units: | |||
Outstanding Beginning Balance (in shares) | 1,085 | 1,160 | 1,243 |
Granted (in shares) | 434 | 533 | 574 |
Restrictions lapsed (in shares) | 557 | 568 | 616 |
Forfeited (in shares) | (15) | (40) | (41) |
Outstanding, Ending Balance (in shares) | 947 | 1,085 | 1,160 |
Weighted Average Grant Date Fair Value: | |||
Outstanding Beginning Balance (usd per share) | $ 50.24 | $ 45.75 | $ 43.78 |
Granted (usd per share) | 66.66 | 57.16 | 48.10 |
Restrictions lapsed (usd per share) | 50.29 | 47.62 | 44.09 |
Forfeited (usd per share) | 53.85 | 49.10 | 43.68 |
Outstanding Ending Balance (usd per share) | $ 57.67 | $ 50.24 | $ 45.75 |
Performance Based Awards with Market Conditions | |||
Number of Shares/Units: | |||
Outstanding Beginning Balance (in shares) | 358 | 616 | 950 |
Granted (in shares) | 236 | 0 | 50 |
Restrictions lapsed (in shares) | 338 | 129 | 384 |
Forfeited (in shares) | (20) | (129) | 0 |
Outstanding, Ending Balance (in shares) | 236 | 358 | 616 |
Weighted Average Grant Date Fair Value: | |||
Outstanding Beginning Balance (usd per share) | $ 45.93 | $ 56.76 | $ 54.42 |
Granted (usd per share) | 74.01 | 0 | 50.09 |
Restrictions lapsed (usd per share) | 45.93 | 71.86 | 50.09 |
Forfeited (usd per share) | 45.93 | 71.86 | 0 |
Outstanding Ending Balance (usd per share) | $ 74.01 | $ 45.93 | $ 56.76 |
Performance Based Awards without Market Conditions | |||
Number of Shares/Units: | |||
Outstanding Beginning Balance (in shares) | 608 | 330 | 0 |
Granted (in shares) | 0 | 278 | 330 |
Restrictions lapsed (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding, Ending Balance (in shares) | 608 | 608 | 330 |
Weighted Average Grant Date Fair Value: | |||
Outstanding Beginning Balance (usd per share) | $ 51.74 | $ 47.45 | $ 0 |
Granted (usd per share) | 0 | 56.83 | 47.45 |
Restrictions lapsed (usd per share) | 0 | 0 | 0 |
Forfeited (usd per share) | 0 | 0 | 0 |
Outstanding Ending Balance (usd per share) | $ 51.74 | $ 51.74 | $ 47.45 |
Total Awards with Performance Condition | |||
Number of Shares/Units: | |||
Outstanding Beginning Balance (in shares) | 966 | 946 | 950 |
Granted (in shares) | 236 | 278 | 380 |
Restrictions lapsed (in shares) | (338) | (129) | (384) |
Forfeited (in shares) | (20) | (129) | 0 |
Outstanding, Ending Balance (in shares) | 844 | 966 | 946 |
Weighted Average Grant Date Fair Value: | |||
Outstanding Beginning Balance (usd per share) | $ 49.58 | $ 53.51 | $ 54.42 |
Granted (usd per share) | 74.01 | 56.83 | 47.80 |
Restrictions lapsed (usd per share) | 45.93 | 71.86 | 50.09 |
Forfeited (usd per share) | 45.93 | 71.86 | 0 |
Outstanding Ending Balance (usd per share) | $ 57.97 | $ 49.58 | $ 53.51 |
Stock Plans - Total Pre-Tax Int
Stock Plans - Total Pre-Tax Intrinsic Value of Stock Options Exercised and Total Fair Value of Shares Vested (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Total fair value of shares vested | $ 57 | $ 40.6 | $ 50.4 |
Net Income Per Share - Calculat
Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 112,842 | $ 117,181 | $ 114,612 | $ 109,798 | $ 113,564 | $ 115,242 | $ 109,315 | $ 96,167 | $ 454,433 | $ 434,288 | $ 290,584 |
Basic: | |||||||||||
Weighted average shares (in shares) | 115,656 | 120,513 | 124,152 | ||||||||
Diluted: | |||||||||||
Weighted average shares (in shares) | 115,656 | 120,513 | 124,152 | ||||||||
Dilutive effect of potential common shares (in shares) | 755 | 1,089 | 740 | ||||||||
Diluted weighted average shares (in shares) | 116,411 | 121,602 | 124,892 | ||||||||
Net income per share: | |||||||||||
Basic (usd per share) | $ 0.99 | $ 1.02 | $ 0.98 | $ 0.94 | $ 0.96 | $ 0.96 | $ 0.90 | $ 0.79 | $ 3.93 | $ 3.60 | $ 2.34 |
Diluted (usd per share) | $ 0.98 | $ 1.01 | $ 0.98 | $ 0.93 | $ 0.95 | $ 0.95 | $ 0.89 | $ 0.78 | $ 3.90 | $ 3.57 | $ 2.33 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Service revenues | $ 1,537,385 | $ 1,552,132 | $ 1,516,385 | $ 1,468,530 | $ 1,481,658 | $ 1,466,226 | $ 1,457,054 | $ 1,395,333 | $ 6,074,432 | $ 5,800,271 | $ 5,266,789 |
Operating income | 621,751 | 588,925 | 517,280 | ||||||||
Amortization of intangible assets | 1,361 | 1,705 | 1,563 | ||||||||
Interest income, net | (5,125) | (4,382) | (1,799) | ||||||||
Income before income taxes | $ 154,247 | $ 163,782 | $ 160,103 | $ 147,383 | $ 154,983 | $ 151,905 | $ 150,075 | $ 134,639 | 625,515 | 591,602 | 517,516 |
Temporary and consultant staffing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Service revenues | 4,412,125 | 4,330,566 | 4,011,042 | ||||||||
Operating income | 410,153 | 404,800 | 355,700 | ||||||||
Permanent placement staffing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Service revenues | 533,432 | 511,989 | 439,214 | ||||||||
Operating income | 83,885 | 90,801 | 77,673 | ||||||||
Risk consulting and internal audit services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Service revenues | 1,128,875 | 957,716 | 816,533 | ||||||||
Operating income | $ 127,713 | $ 93,324 | $ 83,907 |
Business Segments - Revenue and
Business Segments - Revenue and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Service revenues | $ 1,537,385 | $ 1,552,132 | $ 1,516,385 | $ 1,468,530 | $ 1,481,658 | $ 1,466,226 | $ 1,457,054 | $ 1,395,333 | $ 6,074,432 | $ 5,800,271 | $ 5,266,789 |
Assets, long-lived | 128,385 | 125,176 | 128,385 | 125,176 | 144,887 | ||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Service revenues | 4,708,715 | 4,433,767 | 4,121,701 | ||||||||
Assets, long-lived | 99,365 | 96,169 | 99,365 | 96,169 | 113,069 | ||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Service revenues | 1,365,717 | 1,366,504 | 1,145,088 | ||||||||
Assets, long-lived | $ 29,020 | $ 29,007 | $ 29,020 | $ 29,007 | $ 31,818 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Service revenues | $ 1,537,385 | $ 1,552,132 | $ 1,516,385 | $ 1,468,530 | $ 1,481,658 | $ 1,466,226 | $ 1,457,054 | $ 1,395,333 | $ 6,074,432 | $ 5,800,271 | $ 5,266,789 |
Gross margin | 638,944 | 646,446 | 637,541 | 607,588 | 620,062 | 610,468 | 607,118 | 572,366 | 2,530,519 | 2,410,014 | 2,163,812 |
Income before income taxes | 154,247 | 163,782 | 160,103 | 147,383 | 154,983 | 151,905 | 150,075 | 134,639 | 625,515 | 591,602 | 517,516 |
Net income | $ 112,842 | $ 117,181 | $ 114,612 | $ 109,798 | $ 113,564 | $ 115,242 | $ 109,315 | $ 96,167 | $ 454,433 | $ 434,288 | $ 290,584 |
Basic net income per share (in USD per share) | $ 0.99 | $ 1.02 | $ 0.98 | $ 0.94 | $ 0.96 | $ 0.96 | $ 0.90 | $ 0.79 | $ 3.93 | $ 3.60 | $ 2.34 |
Diluted net income per share (in USD per share) | $ 0.98 | $ 1.01 | $ 0.98 | $ 0.93 | $ 0.95 | $ 0.95 | $ 0.89 | $ 0.78 | $ 3.90 | $ 3.57 | $ 2.33 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 12, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||
Quarterly dividend per share (usd per share) | $ 1.24 | $ 1.12 | $ 0.96 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend per share (usd per share) | $ 0.34 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Allowance for doubtful accounts receivable | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 27,678 | $ 33,181 | $ 33,133 | |
Charged to Expenses | 9,868 | 11,914 | 8,022 | |
Deductions | (8,687) | (8,690) | (8,751) | |
Translation Adjustments | (103) | 772 | 777 | |
Balance at End of Period | 28,756 | 27,678 | 33,181 | |
Liability recognized in accordance with ASC 606 | (28,756) | (27,678) | (33,181) | $ (23,682) |
Allowance for doubtful accounts receivable | Accounting Standards Update 2014-09 | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Liability recognized in accordance with ASC 606 | $ 9,500 | |||
Deferred tax valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 23,072 | 20,178 | 18,907 | |
Charged to Expenses | 719 | 5,683 | 1,411 | |
Deductions | (2,154) | (2,599) | (1,275) | |
Translation Adjustments | (19) | (190) | 1,135 | |
Balance at End of Period | 21,618 | 23,072 | 20,178 | |
Liability recognized in accordance with ASC 606 | $ (21,618) | $ (23,072) | $ (20,178) |