Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 2020 | |
Document Fiscal Period Focus | Q1 | |
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, Address Line Two | Suite 200 | |
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 $0.001 per share | |
Trading Symbol | RHI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 114,602,242 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 249,914 | $ 270,478 |
Accounts receivable, net | 853,529 | 832,797 |
Other current assets | 503,212 | 525,574 |
Total current assets | 1,606,655 | 1,628,849 |
Property and equipment, net | 126,602 | 128,385 |
Right-of-use assets | 241,878 | 241,029 |
Other intangible assets, net | 1,392 | 1,752 |
Goodwill | 209,503 | 210,364 |
Noncurrent deferred income taxes | 88,822 | 101,029 |
Total assets | 2,274,852 | 2,311,408 |
LIABILITIES | ||
Accounts payable and accrued expenses | 137,345 | 123,841 |
Accrued payroll and benefit costs | 684,729 | 743,602 |
Income taxes payable | 19,758 | 1,623 |
Notes payable, current | 223 | 218 |
Current operating lease liabilities | 71,299 | 71,408 |
Total current liabilities | 913,354 | 940,692 |
Notes payable, less current portion | 181 | 239 |
Noncurrent operating lease liabilities | 204,587 | 201,961 |
Other liabilities | 26,805 | 24,833 |
Total liabilities | 1,144,927 | 1,167,725 |
Commitments and Contingencies (Note I) | ||
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 114,602,243 shares and 115,120,404 shares | 115 | 115 |
Additional paid-in capital | 1,141,011 | 1,127,487 |
Accumulated other comprehensive income (loss) | (33,686) | (19,986) |
Retained earnings | 22,485 | 36,067 |
Total stockholders’ equity | 1,129,925 | 1,143,683 |
Total liabilities and stockholders’ equity | $ 2,274,852 | $ 2,311,408 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in 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 (in usd per shares) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, issued (in shares) | 114,602,243 | 115,120,404 |
Common stock, outstanding (in shares) | 114,602,243 | 115,120,404 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Service revenues | $ 1,506,691 | $ 1,468,530 |
Costs of services | 895,974 | 860,942 |
Gross margin | 610,717 | 607,588 |
Selling, general and administrative expenses | 479,573 | 461,359 |
Amortization of intangible assets | 338 | 342 |
Interest income, net | (957) | (1,496) |
Income before income taxes | 131,763 | 147,383 |
Provision for income taxes | 41,848 | 37,585 |
Net income | $ 89,915 | $ 109,798 |
Earnings Per Share [Abstract] | ||
Basic (in usd per share) | $ 0.79 | $ 0.94 |
Diluted (in usd per share) | $ 0.79 | $ 0.93 |
Shares: | ||
Basic (in shares) | 113,187,000 | 117,068,000 |
Diluted (in shares) | 113,858,000 | 117,966,000 |
Dividends declared per share (in usd per share) | $ 0.34 | $ 0.31 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
COMPREHENSIVE INCOME (LOSS): | ||
Net income | $ 89,915 | $ 109,798 |
Foreign currency translation adjustments, net of tax | (13,700) | (1,897) |
Total comprehensive income (loss) | $ 76,215 | $ 107,901 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2018 | $ 1,063,198 | $ 119 | $ 1,079,188 | $ (16,109) | $ 0 |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 119,078 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 109,798 | 109,798 | |||
Other comprehensive income (loss) | (1,897) | (1,897) | |||
Dividends declared | (36,998) | (36,998) | |||
Net issuances of restricted stock | 0 | ||||
Net issuances of restricted stock (in shares) | 281 | ||||
Stock-based compensation expense | 11,244 | 11,244 | |||
Repurchases of common stock | (68,316) | $ (1) | (68,315) | ||
Repurchases of common stock (in shares) | (1,038) | ||||
Balance at end of period at Mar. 31, 2019 | 1,077,029 | $ 118 | 1,090,432 | (18,006) | 4,485 |
Balance at end of period (in shares) at Mar. 31, 2019 | 118,321 | ||||
Balance at beginning of period at Dec. 31, 2019 | 1,143,683 | $ 115 | 1,127,487 | (19,986) | 36,067 |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 115,120 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 89,915 | 89,915 | |||
Other comprehensive income (loss) | (13,700) | (13,700) | |||
Dividends declared | (39,441) | (39,441) | |||
Net issuances of restricted stock | 0 | $ 1 | (1) | ||
Net issuances of restricted stock (in shares) | 745 | ||||
Stock-based compensation expense | 13,525 | 13,525 | |||
Repurchases of common stock | (63,499) | $ (1) | (63,498) | ||
Repurchases of common stock (in shares) | (1,263) | ||||
Balance at end of period at Mar. 31, 2020 | $ 1,129,925 | $ 115 | $ 1,141,011 | $ (33,686) | $ 22,485 |
Balance at end of period (in shares) at Mar. 31, 2020 | 114,602 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retained Earnings | ||
Cash dividends, per share (in usd per share) | $ 0.34 | $ 0.31 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 89,915 | $ 109,798 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Allowance for credit losses | 4,690 | 2,325 |
Depreciation | 15,913 | 15,652 |
Amortization of cloud computing implementation costs | 3,288 | 0 |
Amortization of intangible assets | 338 | 342 |
Stock-based compensation | 13,525 | 11,244 |
Deferred income taxes | 12,022 | 5,736 |
Changes in assets and liabilities: | ||
Accounts receivable | (36,700) | (35,294) |
Capitalized cloud computing implementation costs | (10,379) | (4,751) |
Accounts payable and accrued expenses | 18,193 | (11,910) |
Accrued payroll and benefit cost | (4,396) | 13,308 |
Income taxes payable | 20,124 | 17,470 |
Other assets and liabilities, net | (1,607) | 3,159 |
Net cash flows provided by operating activities | 124,926 | 127,079 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (14,276) | (12,670) |
Payments for employee deferred compensation plans | (37,061) | (27,376) |
Redemptions from employee deferred compensation plans | 22,987 | 16,966 |
Net cash flows used in investing activities | (28,350) | (23,080) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of notes payable | (53) | (49) |
Repurchases of common stock | (69,968) | (72,343) |
Dividends paid | (40,476) | (37,887) |
Net cash flows used in financing activities | (110,497) | (110,279) |
Effect of exchange rate fluctuations | (6,643) | (654) |
Change in cash and cash equivalents | (20,564) | (6,934) |
Cash and cash equivalents at beginning of period | 270,478 | 276,579 |
Cash and cash equivalents at end of period | 249,914 | 269,645 |
Non-cash items: | ||
Stock repurchases awaiting settlement | $ 0 | $ 7,332 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 creative, digital, 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, and is a wholly-owned subsidiary of the Company. 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 unaudited Condensed 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 year’s condensed consolidated financial statements to conform to the 2020 presentation. The comparative year-end Condensed Consolidated Statement of Financial Position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2019, included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. 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. As of March 31, 2020, such estimates include allowances for credit losses, 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. In March 2020, the World Health Organization announced that a novel strain of coronavirus (“COVID-19”) had become pandemic. The COVID-19 pandemic is already having a significant impact on global economies as a result of stay-at-home orders and business closures designed to stop the spread of the virus. We are continuing to monitor the spread of COVID-19 and related risks, including risks related to efforts to mitigate the disease’s spread, although the rapid development and fluidity of our response to the pandemic, including uncertainty around the duration and extent of COVID-19, precludes any prediction as to its ultimate impact on the Company’s results of operations, financial condition, or liquidity. In light of the currently unknown ultimate duration and severity of COVID-19, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply the Company’s significant accounting policies. As COVID-19 continues to develop, we may make changes to these estimates and judgments over time, which could result in meaningful impacts to the Company’s financial statements in future periods. 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, contract labor payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs were $14.5 million and $12.8 million for the three months ended March 31, 2020 and 2019, respectively. Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, current business conditions and macro-economic trends. The Company considers risk characteristics of trade receivables based on asset type, size, term, and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses. The following table sets forth the activity in credit losses from December 31, 2019, through March 31, 2020 (in thousands): Credit Balance as of December 31, 2019 $ 22,885 Adoption of accounting pronouncement 558 Balance as of January 1, 2020 $ 23,443 Charges to expense 4,690 Deductions (1,620) Other, including translation adjustments (213) Balance as of March 31, 2020 $ 26,300 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 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements 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. The Company has adopted the new guidance prospectively as of January 1, 2020, and the impact of adoption was not material to 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 has adopted the new guidance prospectively as of January 1, 2020, and the impact of adoption was not material to its financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company believes this guidance will not have a material impact on its financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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 in the unaudited Condensed 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 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): Three Months Ended 2020 2019 Accountemps $ 480,441 $ 483,473 OfficeTeam 239,036 252,035 Robert Half Technology 183,423 171,928 Robert Half Management Resources 189,220 177,191 Temporary and consulting staffing 1,092,120 1,084,627 Permanent placement staffing 120,489 131,562 Risk consulting and internal audit services 294,082 252,341 Service revenues $ 1,506,691 $ 1,468,530 Payment terms in the Company’s contracts vary by the type and location of the Company’s 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 March 31, 2020, aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year was $112.0 million. Of this amount, $103.7 million is expected to be recognized within the next twelve months. As of March 31, 2019, aggregate transaction price allocated to the performance obligations that are unsatisfied for contracts with an expected duration of greater than one year was $84.8 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 unaudited Condensed Consolidated Statement of Financial Position. The following table sets forth the activity in contract liabilities from December 31, 2018, through March 31, 2020 (in thousands): Contract Liabilities 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 Payments in advance of satisfaction of performance obligations 12,173 Revenue recognized (10,287) Other, including translation adjustments 355 Balance as of March 31, 2020 $ 15,189 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consisted of the following (in thousands): March 31, December 31, 2019 Deferred compensation plans $ 363,727 $ 398,442 Prepaid expenses 92,299 84,364 Other 47,186 42,768 Other current assets $ 503,212 $ 525,574 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in thousands): March 31, December 31, 2019 Computer hardware $ 166,657 $ 164,547 Computer software 292,958 291,681 Furniture and equipment 88,030 88,136 Leasehold improvements 150,274 150,644 Property and equipment, cost 697,919 695,008 Accumulated depreciation (571,317) (566,623) Property and equipment, net $ 126,602 $ 128,385 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of less than 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 expenses for the three months ended March 31, 2020 and 2019, were $19.9 million and $16.6 million, respectively. Supplemental cash flow information related to leases consisted of the following (in thousands): Three Months Ended 2020 2019 Cash paid for operating lease liabilities $ 20,554 $ 16,728 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,547 $ 10,517 Supplemental balance sheet information related to leases consisted of the following: March 31, December 31, Weighted average remaining lease term for operating leases 4.8 years 4.8 years Weighted average discount rate for operating leases 2.9 % 3.0 % Future minimum lease payments under non-cancellable leases as of March 31, 2020, were as follows (in thousands): 2020 (excluding the three months ended March 31, 2020) $ 59,247 2021 67,151 2022 53,833 2023 44,610 2024 34,645 Thereafter 35,863 Less: Imputed interest (19,463) Present value of operating lease liabilities (a) $ 275,886 (a) Includes current portion of $71.3 million for operating leases. As of March 31, 2020, the Company had additional future minimum lease obligations totaling $33.2 million under operating leases that had not yet commenced. These operating leases include agreements for corporate and field office facilities with lease terms of less than 1 year to 8 years. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table sets forth the activity in goodwill from December 31, 2019, through March 31, 2020 (in thousands): Goodwill Temporary and consultant staffing Permanent placement staffing Risk consulting and internal audit services Total Balance as of December 31, 2019 $ 134,210 $ 26,097 $ 50,057 $ 210,364 Foreign currency translation adjustments (364) (99) (398) (861) Balance as of March 31, 2020 $ 133,846 $ 25,998 $ 49,659 $ 209,503 |
Accrued Payroll and Benefit Cos
Accrued Payroll and Benefit Costs | 3 Months Ended |
Mar. 31, 2020 | |
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): March 31, December 31, 2019 Employee deferred compensation plans $ 373,043 $ 421,198 Payroll and benefits 254,888 280,918 Payroll taxes 36,146 21,831 Workers’ compensation 20,652 19,655 Accrued payroll and benefit costs $ 684,729 $ 743,602 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 $363.7 million and $398.4 million as of March 31, 2020 and December 31, 2019, respectively, and is included in other current assets in the unaudited Condensed Consolidated Statements of Financial Position. The liability value for the nonqualified plans was $373.0 million and $421.2 million as of March 31, 2020 and December 31, 2019, respectively, and is included in current accrued payroll and benefit costs in the unaudited Condensed Consolidated Statements of Financial Position. Deferred compensation plan and other benefits related to the Company’s executive chairman were $91.9 million and $91.8 million as of March 31, 2020 and December 31, 2019, 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 $(48.7) million and $23.7 million for the three months ended March 31, 2020 and 2019, respectively. The Company’s contribution expense for its qualified defined contribution plans and nonqualified benefits plans totaled $5.6 million and $3.6 million for the three months ended March 31, 2020 and 2019, respectively. The Company has statutory defined contribution plans and defined benefit plans outside the U.S., which are not material. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesOn 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 | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program. As of March 31, 2020, the Company is authorized to repurchase, from time to time, up to 1.5 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 three months ended March 31, 2020 and 2019, are reflected in the following table (in thousands): Three Months Ended 2020 2019 Common stock repurchased (in shares) 983 781 Common stock repurchased $ 51,477 $ 51,608 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 repurchases related to employee stock plans made during the three months ended March 31, 2020 and 2019, are reflected in the following table (in thousands): Three Months Ended 2020 2019 Repurchases related to employee stock plans (in shares) 280 257 Repurchases related to employee stock plans $ 12,022 $ 16,708 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the three months ended March 31, 2020 and 2019, is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The calculation of net income per share for the three months ended March 31, 2020 and 2019, is reflected in the following table (in thousands, except per share amounts): Three Months Ended March 31, 2020 2019 Net income $ 89,915 $ 109,798 Basic: Weighted average shares 113,187 117,068 Diluted: Weighted average shares 113,187 117,068 Dilutive effect of potential common shares 671 898 Diluted weighted average shares 113,858 117,966 Net income per share: Basic $ .79 $ .94 Diluted $ .79 $ .93 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
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” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company evaluates performance based on income from operations before net interest income, intangible asset amortization expense, and income taxes. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Service revenues Temporary and consultant staffing $ 1,092,120 $ 1,084,627 Permanent placement staffing 120,489 131,562 Risk consulting and internal audit services 294,082 252,341 $ 1,506,691 $ 1,468,530 Operating income Temporary and consultant staffing $ 93,764 $ 106,018 Permanent placement staffing 10,911 21,557 Risk consulting and internal audit services 26,469 18,654 131,144 146,229 Amortization of intangible assets 338 342 Interest income, net (957) (1,496) Income before income taxes $ 131,763 $ 147,383 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 30, 2020, the Company announced the following: Quarterly dividend per share $.34 Declaration date April 30, 2020 Record date May 26, 2020 Payment date June 15, 2020 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | 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 creative, digital, 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, and is a wholly-owned subsidiary of the Company. 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 | Basis of Presentation. The unaudited Condensed 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 year’s condensed consolidated financial statements to conform to the 2020 presentation. The comparative year-end Condensed Consolidated Statement of Financial Position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2019, included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. |
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. As of March 31, 2020, such estimates include allowances for credit losses, 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. |
Service Revenues/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, contract labor payroll, payroll taxes and benefit costs, as well as reimbursable expenses. |
Advertising Costs | Advertising Costs. The Company expenses all advertising costs as incurred. |
Allowance for Credit Losses | Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, current business conditions and macro-economic trends. The Company considers risk characteristics of trade receivables based on asset type, size, term, and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses. |
Goodwill and Intangible Assets, Policy | 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 |
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 unaudited Condensed Consolidated Statement of Financial Position. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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. The Company has adopted the new guidance prospectively as of January 1, 2020, and the impact of adoption was not material to 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 has adopted the new guidance prospectively as of January 1, 2020, and the impact of adoption was not material to its financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company believes this guidance will not have a material impact on its financial statements. |
Commitments and Contingencies | Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
Treasury Stock | The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the three months ended March 31, 2020 and 2019, is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity.Repurchases of shares and issuances of cash dividends are applied first to the extent of retained earnings and any remaining amounts are applied to capital surplus. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Credit Losses | The following table sets forth the activity in credit losses from December 31, 2019, through March 31, 2020 (in thousands): Credit Balance as of December 31, 2019 $ 22,885 Adoption of accounting pronouncement 558 Balance as of January 1, 2020 $ 23,443 Charges to expense 4,690 Deductions (1,620) Other, including translation adjustments (213) Balance as of March 31, 2020 $ 26,300 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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): Three Months Ended 2020 2019 Accountemps $ 480,441 $ 483,473 OfficeTeam 239,036 252,035 Robert Half Technology 183,423 171,928 Robert Half Management Resources 189,220 177,191 Temporary and consulting staffing 1,092,120 1,084,627 Permanent placement staffing 120,489 131,562 Risk consulting and internal audit services 294,082 252,341 Service revenues $ 1,506,691 $ 1,468,530 |
Schedule of Contract Liability Activity | The following table sets forth the activity in contract liabilities from December 31, 2018, through March 31, 2020 (in thousands): Contract Liabilities 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 Payments in advance of satisfaction of performance obligations 12,173 Revenue recognized (10,287) Other, including translation adjustments 355 Balance as of March 31, 2020 $ 15,189 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consisted of the following (in thousands): March 31, December 31, 2019 Deferred compensation plans $ 363,727 $ 398,442 Prepaid expenses 92,299 84,364 Other 47,186 42,768 Other current assets $ 503,212 $ 525,574 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following (in thousands): March 31, December 31, 2019 Computer hardware $ 166,657 $ 164,547 Computer software 292,958 291,681 Furniture and equipment 88,030 88,136 Leasehold improvements 150,274 150,644 Property and equipment, cost 697,919 695,008 Accumulated depreciation (571,317) (566,623) Property and equipment, net $ 126,602 $ 128,385 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases consisted of the following (in thousands): Three Months Ended 2020 2019 Cash paid for operating lease liabilities $ 20,554 $ 16,728 Right-of-use assets obtained in exchange for new operating lease liabilities $ 14,547 $ 10,517 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases consisted of the following: March 31, December 31, Weighted average remaining lease term for operating leases 4.8 years 4.8 years Weighted average discount rate for operating leases 2.9 % 3.0 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of March 31, 2020, were as follows (in thousands): 2020 (excluding the three months ended March 31, 2020) $ 59,247 2021 67,151 2022 53,833 2023 44,610 2024 34,645 Thereafter 35,863 Less: Imputed interest (19,463) Present value of operating lease liabilities (a) $ 275,886 (a) Includes current portion of $71.3 million for operating leases. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth the activity in goodwill from December 31, 2019, through March 31, 2020 (in thousands): Goodwill Temporary and consultant staffing Permanent placement staffing Risk consulting and internal audit services Total Balance as of December 31, 2019 $ 134,210 $ 26,097 $ 50,057 $ 210,364 Foreign currency translation adjustments (364) (99) (398) (861) Balance as of March 31, 2020 $ 133,846 $ 25,998 $ 49,659 $ 209,503 |
Accrued Payroll and Benefit C_2
Accrued Payroll and Benefit Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Payroll Costs and Retirement Obligations | Accrued payroll and benefit costs consisted of the following (in thousands): March 31, December 31, 2019 Employee deferred compensation plans $ 373,043 $ 421,198 Payroll and benefits 254,888 280,918 Payroll taxes 36,146 21,831 Workers’ compensation 20,652 19,655 Accrued payroll and benefit costs $ 684,729 $ 743,602 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Number and Cost of Common Stock Shares Repurchased | The number and the cost of common stock shares repurchased during the three months ended March 31, 2020 and 2019, are reflected in the following table (in thousands): Three Months Ended 2020 2019 Common stock repurchased (in shares) 983 781 Common stock repurchased $ 51,477 $ 51,608 |
Number and Cost of Employee Stock Plan Repurchases | The number and the cost of repurchases related to employee stock plans made during the three months ended March 31, 2020 and 2019, are reflected in the following table (in thousands): Three Months Ended 2020 2019 Repurchases related to employee stock plans (in shares) 280 257 Repurchases related to employee stock plans $ 12,022 $ 16,708 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Net Income Per Share | The calculation of net income per share for the three months ended March 31, 2020 and 2019, is reflected in the following table (in thousands, except per share amounts): Three Months Ended March 31, 2020 2019 Net income $ 89,915 $ 109,798 Basic: Weighted average shares 113,187 117,068 Diluted: Weighted average shares 113,187 117,068 Dilutive effect of potential common shares 671 898 Diluted weighted average shares 113,858 117,966 Net income per share: Basic $ .79 $ .94 Diluted $ .79 $ .93 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended 2020 2019 Service revenues Temporary and consultant staffing $ 1,092,120 $ 1,084,627 Permanent placement staffing 120,489 131,562 Risk consulting and internal audit services 294,082 252,341 $ 1,506,691 $ 1,468,530 Operating income Temporary and consultant staffing $ 93,764 $ 106,018 Permanent placement staffing 10,911 21,557 Risk consulting and internal audit services 26,469 18,654 131,144 146,229 Amortization of intangible assets 338 342 Interest income, net (957) (1,496) Income before income taxes $ 131,763 $ 147,383 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | On April 30, 2020, the Company announced the following: Quarterly dividend per share $.34 Declaration date April 30, 2020 Record date May 26, 2020 Payment date June 15, 2020 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Number of reportable segments | segment | 3 | |
Advertising Expense | $ 14.5 | $ 12.8 |
Capitalized Computer Software, Internal-Use Development Costs | $ 13 | $ 5 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Credit Losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 31, 2019 | $ 22,885 |
Charges to expense | 4,690 |
Deductions | (1,620) |
Other, including translation adjustments | (213) |
Balance as of March 31, 2020 | 26,300 |
Cumulative Effect, Period of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 31, 2019 | $ 558 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Line of Business (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of reportable segments | segment | 3 | |
Guarantee period | 90 days | |
Service revenues | $ 1,506,691 | $ 1,468,530 |
Accountemps | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 480,441 | 483,473 |
OfficeTeam | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 239,036 | 252,035 |
Robert Half Technology | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 183,423 | 171,928 |
Robert Half Management Resources | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 189,220 | 177,191 |
Temporary and consulting staffing | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 1,092,120 | 1,084,627 |
Permanent placement staffing | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | 120,489 | 131,562 |
Risk consulting and internal audit services | ||
Disaggregation of Revenue [Line Items] | ||
Service revenues | $ 294,082 | $ 252,341 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Aggregate transaction price allocated to performance obligations | $ 112 | $ 84.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Aggregate transaction price allocated to performance obligations | $ 103.7 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | $ 12,948 | $ 12,997 |
Payments in advance of satisfaction of performance obligations | 12,173 | 13,030 |
Revenue recognized | (10,287) | (12,072) |
Other, including translation adjustments | 355 | $ (1,007) |
Ending balance | $ 15,189 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred compensation plans | $ 363,727 | $ 398,442 |
Other | 47,186 | 42,768 |
Other current assets | 503,212 | 525,574 |
Prepaid Expense, Current | $ 92,299 | $ 84,364 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 697,919 | $ 695,008 |
Accumulated depreciation | (571,317) | (566,623) |
Property and equipment, net | 126,602 | 128,385 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 166,657 | 164,547 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 292,958 | 291,681 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 88,030 | 88,136 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 150,274 | $ 150,644 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Leased Assets [Line Items] | ||
Option to extend lease term | 7 years | |
Option to terminate lease term | 1 year | |
Operating lease expense | $ 19.9 | $ 16.6 |
Operating leases, not yet commenced, amount | $ 33.2 | |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease terms | 1 year | |
Operating leases, not yet commenced, term | 1 year | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease terms | 10 years | |
Operating leases, not yet commenced, term | 8 years |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash Flow, Operating Activities, Lessee [Abstract] | |||
Cash paid for operating lease liabilities | $ 20,554 | $ 16,728 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 14,547 | $ 10,517 | |
Weighted average remaining lease term: | |||
Weighted average remaining lease term for operating leases | 4 years 9 months 18 days | 4 years 9 months 18 days | |
Operating Leases, Weighted Average Discount Rate, Percent [Abstract] | |||
Weighted average discount rate for operating leases | 2.90% | 3.00% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 (excluding the three months ended March 31, 2020) | $ 59,247 | |
2021 | 67,151 | |
2022 | 53,833 | |
2023 | 44,610 | |
2024 | 34,645 | |
Thereafter | 35,863 | |
Less: Imputed interest | (19,463) | |
Present value of lease liabilities | 275,886 | |
Current operating lease liabilities | $ 71,299 | $ 71,408 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | $ 210,364 |
Foreign currency translation adjustments | (861) |
Balance as of March 31, 2020 | 209,503 |
Temporary and consulting staffing | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | 134,210 |
Foreign currency translation adjustments | (364) |
Balance as of March 31, 2020 | 133,846 |
Permanent placement staffing | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | 26,097 |
Foreign currency translation adjustments | (99) |
Balance as of March 31, 2020 | 25,998 |
Risk consulting and internal audit services | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | 50,057 |
Foreign currency translation adjustments | (398) |
Balance as of March 31, 2020 | $ 49,659 |
Accrued Payroll and Benefit C_3
Accrued Payroll and Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | $ 373,043 | $ 421,198 | |
Payroll and benefits | 254,888 | 280,918 | |
Payroll taxes | 36,146 | 21,831 | |
Workers’ compensation | 20,652 | 19,655 | |
Accrued payroll and benefit costs | 684,729 | 743,602 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employee deferred compensation plans | 373,043 | 421,198 | |
Net unrealized gains (losses) on nonqualified plan assets and liabilities | (48,700) | $ 23,700 | |
Contribution expenses for qualified and nonqualified plans | 5,600 | $ 3,600 | |
Nonqualified Plan | |||
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | 373,000 | 421,200 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Asset value of nonqualified plans | 363,700 | 398,400 | |
Employee deferred compensation plans | 373,000 | 421,200 | |
Nonqualified Plan | Chief Executive Officer | |||
Payables and Accruals [Abstract] | |||
Employee deferred compensation plans | 91,900 | 91,800 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employee deferred compensation plans | $ 91,900 | $ 91,800 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 31, 2020USD ($) |
Jessica Gentry | |
Loss Contingencies [Line Items] | |
Loss contingency | $ 0 |
Shari Dorff | |
Loss Contingencies [Line Items] | |
Loss contingency | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) shares in Millions | Mar. 31, 2020shares |
Equity [Abstract] | |
Maximum number of shares authorized to be repurchased (in shares) | 1.5 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Common stock repurchased (in shares) | 983 | 781 |
Common stock repurchased | $ 51,477 | $ 51,608 |
Stockholders' Equity - Number_2
Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Repurchases related to employee stock plans (in shares) | 280 | 257 |
Repurchases related to employee stock plans | $ 12,022 | $ 16,708 |
Net Income Per Share - Calculat
Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 89,915 | $ 109,798 |
Basic: | ||
Weighted average shares (in shares) | 113,187,000 | 117,068,000 |
Diluted: | ||
Weighted average shares (in shares) | 113,187,000 | 117,068,000 |
Dilutive effect of potential common shares (in shares) | 671,000 | 898,000 |
Diluted weighted average shares (in shares) | 113,858,000 | 117,966,000 |
Net income per share: | ||
Basic (in usd per share) | $ 0.79 | $ 0.94 |
Diluted (in usd per share) | $ 0.79 | $ 0.93 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Service revenues | $ 1,506,691 | $ 1,468,530 |
Operating income | 131,144 | 146,229 |
Amortization of intangible assets | 338 | 342 |
Interest income, net | (957) | (1,496) |
Income before income taxes | 131,763 | 147,383 |
Operating Segments | Temporary and consultant staffing | ||
Segment Reporting Information [Line Items] | ||
Service revenues | 1,092,120 | 1,084,627 |
Operating income | 93,764 | 106,018 |
Operating Segments | Permanent placement staffing | ||
Segment Reporting Information [Line Items] | ||
Service revenues | 120,489 | 131,562 |
Operating income | 10,911 | 21,557 |
Operating Segments | Risk consulting and internal audit services | ||
Segment Reporting Information [Line Items] | ||
Service revenues | 294,082 | 252,341 |
Operating income | $ 26,469 | $ 18,654 |
Subsequent Events - Dividend An
Subsequent Events - Dividend Announced (Details) - $ / shares | Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||
Quarterly dividend per share (in usd per share) | $ 0.34 | $ 0.31 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Quarterly dividend per share (in usd per share) | $ 0.34 |
Uncategorized Items - rhi-20200
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (558,000) |
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | 23,443,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (558,000) |