Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'RHI | ' |
Entity Registrant Name | 'HALF ROBERT INTERNATIONAL INC /DE/ | ' |
Entity Central Index Key | '0000315213 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 137,485,345 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Position (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $267,737 | $275,764 |
Accounts receivable, less allowances of $29,361 and $27,261 | 587,249 | 551,905 |
Current deferred income taxes | 111,566 | 112,881 |
Other current assets | 220,765 | 231,978 |
Total current assets | 1,187,317 | 1,172,528 |
Goodwill | 200,496 | 200,833 |
Other intangible assets, net | 222 | 556 |
Property and equipment, net | 111,587 | 112,644 |
Other assets | 3,709 | 3,710 |
Total assets | 1,503,331 | 1,490,271 |
LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 137,936 | 139,683 |
Accrued payroll costs and retirement obligations | 392,237 | 396,042 |
Income taxes payable | 7,242 | ' |
Current portion of notes payable and other indebtedness | 131 | 128 |
Total current liabilities | 537,546 | 535,853 |
Notes payable and other indebtedness, less current portion | 1,266 | 1,300 |
Other liabilities | 32,373 | 33,475 |
Total liabilities | 571,185 | 570,628 |
Commitments and Contingencies (Note G) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.001 par value authorized 5,000,000 shares; issued and outstanding zero shares | ' | ' |
Common stock, $.001 par value authorized 260,000,000 shares; issued and outstanding 137,472,756 shares and 137,466,421 shares | 137 | 137 |
Capital surplus | 886,696 | 868,120 |
Accumulated other comprehensive income | 38,476 | 38,071 |
Retained earnings | 6,837 | 13,315 |
Total stockholders' equity | 932,146 | 919,643 |
Total liabilities and stockholders' equity | $1,503,331 | $1,490,271 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $29,361 | $27,261 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 260,000,000 | 260,000,000 |
Common stock, issued | 137,472,756 | 137,466,421 |
Common stock, outstanding | 137,472,756 | 137,466,421 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net service revenues | $1,084,342 | $1,023,684 |
Direct costs of services, consisting of payroll, payroll taxes, insurance costs and reimbursable expenses | 645,847 | 613,394 |
Gross margin | 438,495 | 410,290 |
Selling, general and administrative expenses | 336,386 | 320,785 |
Amortization of intangible assets | 333 | 433 |
Interest income, net | -238 | -304 |
Income before income taxes | 102,014 | 89,376 |
Provision for income taxes | 40,463 | 33,513 |
Net income | 61,551 | 55,863 |
Net income available to common stockholders-diluted | $61,551 | $55,861 |
Net income per share (Note I): | ' | ' |
Basic | $0.45 | $0.41 |
Diluted | $0.45 | $0.40 |
Shares: | ' | ' |
Basic | 135,333 | 137,311 |
Diluted | 136,161 | 138,394 |
Cash dividends declared per share | $0.18 | $0.16 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
COMPREHENSIVE INCOME: | ' | ' |
Net income | $61,551 | $55,863 |
Foreign currency translation adjustments, net of tax | 405 | -5,771 |
Total comprehensive income | $61,956 | $50,092 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | COMMON STOCK: | CAPITAL SURPLUS: | ACCUMULATED OTHER COMPREHENSIVE INCOME: | RETAINED EARNINGS: |
In Thousands | |||||
Balance at beginning of period at Dec. 31, 2012 | ' | $139 | $798,093 | $43,779 | ' |
Balance at beginning of period, (in shares) at Dec. 31, 2012 | ' | 139,439 | ' | ' | ' |
Net issuances of restricted stock, (in shares) | ' | 510 | ' | ' | ' |
Repurchases of common stock, (in shares) | ' | -1,289 | ' | ' | ' |
Exercises of stock options, (in shares) | ' | 866 | ' | ' | ' |
Net issuances of restricted stock | ' | 1 | -1 | ' | ' |
Net income | 55,863 | ' | ' | ' | 55,863 |
Foreign currency translation adjustments, net of tax | -5,771 | ' | ' | -5,771 | ' |
Repurchases of common stock | ' | -1 | ' | ' | -45,672 |
Cash dividends | ' | ' | -12,256 | ' | -10,191 |
Stock-based compensation expense | ' | ' | 8,208 | ' | ' |
Exercise of stock options | ' | 1 | 19,938 | ' | ' |
Tax impact of equity incentive plans | ' | ' | 2,394 | ' | ' |
Balance at end of period at Mar. 31, 2013 | ' | 140 | 816,376 | 38,008 | ' |
Balance at end of period, (in shares) at Mar. 31, 2013 | ' | 139,526 | ' | ' | ' |
Balance at beginning of period at Dec. 31, 2013 | 919,643 | 137 | 868,120 | 38,071 | 13,315 |
Balance at beginning of period, (in shares) at Dec. 31, 2013 | ' | 137,466 | ' | ' | ' |
Net issuances of restricted stock, (in shares) | ' | 747 | ' | ' | ' |
Repurchases of common stock, (in shares) | ' | -1,064 | ' | ' | ' |
Exercises of stock options, (in shares) | ' | 324 | ' | ' | ' |
Net issuances of restricted stock | ' | 1 | -1 | ' | ' |
Net income | 61,551 | ' | ' | ' | 61,551 |
Foreign currency translation adjustments, net of tax | 405 | ' | ' | 405 | ' |
Repurchases of common stock | ' | -1 | ' | ' | -43,290 |
Cash dividends | ' | ' | ' | ' | -24,739 |
Stock-based compensation expense | ' | ' | 8,774 | ' | ' |
Exercise of stock options | ' | ' | 8,676 | ' | ' |
Tax impact of equity incentive plans | ' | ' | 1,127 | ' | ' |
Balance at end of period at Mar. 31, 2014 | $932,146 | $137 | $886,696 | $38,476 | $6,837 |
Balance at end of period, (in shares) at Mar. 31, 2014 | ' | 137,473 | ' | ' | ' |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CAPITAL SURPLUS: | ' | ' |
Cash dividends, per share | ' | $0.16 |
RETAINED EARNINGS: | ' | ' |
Cash dividends, per share | $0.18 | $0.16 |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $61,551 | $55,863 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of intangible assets | 333 | 433 |
Depreciation expense | 12,200 | 11,747 |
Stock-based compensation expense-restricted stock and stock units | 8,774 | 8,208 |
Excess tax benefits from stock-based compensation | -707 | -992 |
Deferred income taxes | 2,710 | -4,117 |
Provision for doubtful accounts | 3,456 | 2,642 |
Changes in assets and liabilities: | ' | ' |
Increase in accounts receivable | -38,909 | -42,598 |
Decrease in accounts payable, accrued expenses, accrued payroll costs and retirement obligations | -14,230 | -25,011 |
Increase in income taxes payable | 31,320 | 31,092 |
Change in other assets, net of change in other liabilities | -7,273 | -9,382 |
Net cash flows provided by operating activities | 59,225 | 27,885 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -12,443 | -8,082 |
Increase in trusts for employee benefits and retirement plans | -5,283 | -29,669 |
Net cash flows used in investing activities | -17,726 | -37,751 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repurchases of common stock | -35,025 | -45,673 |
Cash dividends paid | -24,394 | -22,021 |
Decrease in notes payable and other indebtedness | -31 | -2,643 |
Excess tax benefits from stock-based compensation | 707 | 992 |
Proceeds from exercises of stock options | 8,676 | 19,938 |
Net cash flows used in financing activities | -50,067 | -49,407 |
Effect of exchange rate changes on cash and cash equivalents | 541 | -3,011 |
Net decrease in cash and cash equivalents | -8,027 | -62,284 |
Cash and cash equivalents at beginning of period | 275,764 | 287,635 |
Cash and cash equivalents at end of period | 267,737 | 225,351 |
Non-cash items: | ' | ' |
Stock repurchases awaiting settlement | $8,266 | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Note A—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 project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support personnel. Robert Half Technology provides information technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of attorneys and specialized support personnel within law firms and corporate legal departments. The Creative Group provides project staffing in the advertising, marketing, and web design fields. Protiviti provides business consulting and internal audit services, 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”). 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, 2013, 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 have been eliminated. | |||||||||
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, 2014, such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses, and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment. | |||||||||
Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs for the three months ended March 31, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Advertising costs | $ | 9,753 | $ | 9,903 | |||||
Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Amounts capitalized are reported as a component of computer software within property and equipment. Internal-use software development costs capitalized for the three months ended March 31, 2014 and 2013 are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Internal-use software development costs | $ | 5,892 | $ | 1,170 |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
Note B—New Accounting Pronouncements | |
Income Taxes. In September 2013, the Financial Accounting Standards Board (FASB) issued authoritative guidance in regards to the presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment states that an unrecognized tax benefit or a portion of the unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This authoritative guidance is to be applied for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance as of March 31, 2014, did not have a material impact on the Company’s Financial Statements. | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the FASB issued authoritative guidance in regards to the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the authoritative guidance are effective in the first quarter of 2015 for public organizations with calendar year ends. The Company does not expect the adoption of this guidance to have a material impact on its Financial Statements. |
Other_Current_Assets
Other Current Assets | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Current Assets | ' | ||||||||
Note C—Other Current Assets | |||||||||
Other current assets consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deposits in trusts for employee benefits and retirement plans | $ | 155,016 | $ | 149,391 | |||||
Other | 65,749 | 82,587 | |||||||
$ | 220,765 | $ | 231,978 | ||||||
Goodwill
Goodwill | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill | ' | ||||
Note D—Goodwill | |||||
The following table sets forth the activity in goodwill from December 31, 2013, through March 31, 2014 (in thousands): | |||||
Goodwill | |||||
Balance as of December 31, 2013 | $ | 200,833 | |||
Foreign currency translation adjustments | (337 | ) | |||
Balance as of March 31, 2014 | $ | 200,496 | |||
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
Note E—Property and Equipment, Net | |||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer hardware | $ | 150,106 | $ | 148,541 | |||||
Computer software | 294,411 | 288,532 | |||||||
Furniture and equipment | 110,296 | 111,426 | |||||||
Leasehold improvements | 119,787 | 118,868 | |||||||
Other | 11,928 | 11,488 | |||||||
Property and equipment, cost | 686,528 | 678,855 | |||||||
Accumulated depreciation | (574,941 | ) | (566,211 | ) | |||||
Property and equipment, net | $ | 111,587 | $ | 112,644 | |||||
Accrued_Payroll_Costs_and_Reti
Accrued Payroll Costs and Retirement Obligations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Payroll Costs and Retirement Obligations | ' | ||||||||
Note F—Accrued Payroll Costs and Retirement Obligations | |||||||||
Accrued payroll costs and retirement obligations consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Payroll and benefits | $ | 240,887 | $ | 238,252 | |||||
Employee retirement obligations | 97,365 | 96,461 | |||||||
Workers’ compensation | 27,687 | 26,671 | |||||||
Payroll taxes | 26,298 | 34,658 | |||||||
$ | 392,237 | $ | 396,042 | ||||||
Included in employee retirement obligations is the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer | $ | 76,409 | $ | 75,745 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note G—Commitments and Contingencies | |
On April 23, 2010, Plaintiffs David Opalinski and James McCabe, on behalf of themselves and a putative class of similarly situated Staffing Managers, filed a Complaint in the United States District Court for the District of New Jersey naming the Company and one of its subsidiaries as Defendants. The Complaint alleges that salaried Staffing Managers located throughout the U.S. have been misclassified as exempt from the Fair Labor Standards Act’s overtime pay requirements. Plaintiffs seek an unspecified amount for unpaid overtime on behalf of themselves and the class they purport to represent. Plaintiffs also seek an unspecified amount for statutory penalties, attorneys’ fees and other damages. On October 6, 2011, the Court granted the Company’s motion to compel arbitration of the Plaintiffs’ allegations. At this stage, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from these allegations 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 allegations. | |
On March 13, 2014, Plaintiff Leonor Rodriguez, 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 Diego County. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2011 were denied compensation for the time they spent interviewing with clients of the Company as well as performing activities related to the interview process. Rodriguez seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Rodriguez 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. Rodriguez also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney General Act. 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 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, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
Note H—Stockholders’ Equity | |||||||||
Stock Repurchase Program. As of March 31, 2014, the Company is authorized to repurchase, from time to time, up to 7.3 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, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Common stock repurchased (in shares) | 825 | 836 | |||||||
Common stock repurchased | $ | 33,415 | $ | 29,740 | |||||
Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of exercise price and applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the three months ended March 31, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Employee stock plan repurchased (in shares) | 239 | 453 | |||||||
Employee stock plan repurchased | $ | 9,876 | $ | 15,933 | |||||
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, 2014 and 2013, 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. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income Per Share | ' | ||||||||
Note I—Net Income Per Share | |||||||||
The calculation of net income per share for the three months ended March 31, 2014 and 2013 is reflected in the following table (in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 61,551 | $ | 55,863 | |||||
Income allocated to participating securities—basic | — | 2 | |||||||
Net income available to common stockholders—basic | $ | 61,551 | $ | 55,861 | |||||
Basic weighted average shares | 135,333 | 137,311 | |||||||
Basic net income per share | $ | 0.45 | $ | 0.41 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 61,551 | $ | 55,863 | |||||
Income allocated to participating securities—diluted | — | 2 | |||||||
Net income available to common stockholders—diluted | $ | 61,551 | $ | 55,861 | |||||
Basic weighted average shares | 135,333 | 137,311 | |||||||
Dilutive effect of potential common shares | 828 | 1,083 | |||||||
Diluted weighted average shares | 136,161 | 138,394 | |||||||
Diluted net income per share | $ | 0.45 | $ | 0.4 | |||||
Potential common shares include the dilutive effect of stock options, unvested performance-based restricted stock, restricted stock which contains forfeitable rights to dividends, and stock units. The weighted average diluted common shares outstanding for the three months ended March 31, 2014 and 2013, excludes the effect of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Total number of anti-dilutive potential common shares | 4 | — |
Business_Segments
Business Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Business Segments | ' | ||||||||
Note J—Business Segments | |||||||||
The Company, which aggregates its operating segments based on the nature of services, has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting 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, 2013. The Company evaluates performance based on income or loss 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): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net service revenues | |||||||||
Temporary and consultant staffing | $ | 857,570 | $ | 823,422 | |||||
Permanent placement staffing | 92,625 | 83,377 | |||||||
Risk consulting and internal audit services | 134,147 | 116,885 | |||||||
$ | 1,084,342 | $ | 1,023,684 | ||||||
Operating income | |||||||||
Temporary and consultant staffing | $ | 77,485 | $ | 73,180 | |||||
Permanent placement staffing | 17,275 | 12,585 | |||||||
Risk consulting and internal audit services | 7,349 | 3,740 | |||||||
102,109 | 89,505 | ||||||||
Amortization of intangible assets | 333 | 433 | |||||||
Interest income, net | (238 | ) | (304 | ) | |||||
Income before income taxes | $ | 102,014 | $ | 89,376 | |||||
Subsequent_Events
Subsequent Events | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Subsequent Events [Abstract] | ' | ||||
Subsequent Events | ' | ||||
Note K—Subsequent Events | |||||
On May 6, 2014, the Company announced the following: | |||||
Quarterly dividend per share | $0.18 | ||||
Declaration date | May 6, 2014 | ||||
Record date | May 23, 2014 | ||||
Payment date | June 16, 2014 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support personnel. Robert Half Technology provides information technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of attorneys and specialized support personnel within law firms and corporate legal departments. The Creative Group provides project staffing in the advertising, marketing, and web design fields. Protiviti provides business consulting and internal audit services, 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”). 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, 2013, 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 have been eliminated. | |||||||||
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, 2014, such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses, and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment. | |||||||||
Advertising Costs | ' | ||||||||
Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs for the three months ended March 31, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Advertising costs | $ | 9,753 | $ | 9,903 | |||||
Internal-use Software | ' | ||||||||
Internal-use Software. The Company capitalizes direct costs incurred in the development of internal-use software. Amounts capitalized are reported as a component of computer software within property and equipment. Internal-use software development costs capitalized for the three months ended March 31, 2014 and 2013 are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Internal-use software development costs | $ | 5,892 | $ | 1,170 | |||||
New Accounting Pronouncements | ' | ||||||||
Income Taxes. In September 2013, the Financial Accounting Standards Board (FASB) issued authoritative guidance in regards to the presentation of unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendment states that an unrecognized tax benefit or a portion of the unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This authoritative guidance is to be applied for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance as of March 31, 2014, did not have a material impact on the Company’s Financial Statements. | |||||||||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the FASB issued authoritative guidance in regards to the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the authoritative guidance are effective in the first quarter of 2015 for public organizations with calendar year ends. The Company does not expect the adoption of this guidance to have a material impact on its Financial Statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Advertising Costs | ' | ||||||||
Advertising costs for the three months ended March 31, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Advertising costs | $ | 9,753 | $ | 9,903 | |||||
Internal-Use Software Development Costs Capitalized | ' | ||||||||
Internal-use software development costs capitalized for the three months ended March 31, 2014 and 2013 are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Internal-use software development costs | $ | 5,892 | $ | 1,170 |
Other_Current_Assets_Tables
Other Current Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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, | ||||||||
2014 | 2013 | ||||||||
Deposits in trusts for employee benefits and retirement plans | $ | 155,016 | $ | 149,391 | |||||
Other | 65,749 | 82,587 | |||||||
$ | 220,765 | $ | 231,978 | ||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Activity in Goodwill | ' | ||||
The following table sets forth the activity in goodwill from December 31, 2013, through March 31, 2014 (in thousands): | |||||
Goodwill | |||||
Balance as of December 31, 2013 | $ | 200,833 | |||
Foreign currency translation adjustments | (337 | ) | |||
Balance as of March 31, 2014 | $ | 200,496 | |||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Computer hardware | $ | 150,106 | $ | 148,541 | |||||
Computer software | 294,411 | 288,532 | |||||||
Furniture and equipment | 110,296 | 111,426 | |||||||
Leasehold improvements | 119,787 | 118,868 | |||||||
Other | 11,928 | 11,488 | |||||||
Property and equipment, cost | 686,528 | 678,855 | |||||||
Accumulated depreciation | (574,941 | ) | (566,211 | ) | |||||
Property and equipment, net | $ | 111,587 | $ | 112,644 | |||||
Accrued_Payroll_Costs_and_Reti1
Accrued Payroll Costs and Retirement Obligations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Payroll Costs and Retirement Obligations | ' | ||||||||
Accrued payroll costs and retirement obligations consisted of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Payroll and benefits | $ | 240,887 | $ | 238,252 | |||||
Employee retirement obligations | 97,365 | 96,461 | |||||||
Workers’ compensation | 27,687 | 26,671 | |||||||
Payroll taxes | 26,298 | 34,658 | |||||||
$ | 392,237 | $ | 396,042 | ||||||
Employee Retirement Obligations | ' | ||||||||
Included in employee retirement obligations is the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer | $ | 76,409 | $ | 75,745 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Common stock repurchased (in shares) | 825 | 836 | |||||||
Common stock repurchased | $ | 33,415 | $ | 29,740 | |||||
Number and Cost of Employee Stock Plan Repurchases | ' | ||||||||
The number and the cost of employee stock plan repurchases made during the three months ended March 31, 2014 and 2013, are reflected in the following table (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Employee stock plan repurchased (in shares) | 239 | 453 | |||||||
Employee stock plan repurchased | $ | 9,876 | $ | 15,933 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Calculation of Net Income Per Share | ' | ||||||||
The calculation of net income per share for the three months ended March 31, 2014 and 2013 is reflected in the following table (in thousands, except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic net income per share: | |||||||||
Net income | $ | 61,551 | $ | 55,863 | |||||
Income allocated to participating securities—basic | — | 2 | |||||||
Net income available to common stockholders—basic | $ | 61,551 | $ | 55,861 | |||||
Basic weighted average shares | 135,333 | 137,311 | |||||||
Basic net income per share | $ | 0.45 | $ | 0.41 | |||||
Diluted net income per share: | |||||||||
Net income | $ | 61,551 | $ | 55,863 | |||||
Income allocated to participating securities—diluted | — | 2 | |||||||
Net income available to common stockholders—diluted | $ | 61,551 | $ | 55,861 | |||||
Basic weighted average shares | 135,333 | 137,311 | |||||||
Dilutive effect of potential common shares | 828 | 1,083 | |||||||
Diluted weighted average shares | 136,161 | 138,394 | |||||||
Diluted net income per share | $ | 0.45 | $ | 0.4 | |||||
Weighted Average Diluted Common Shares Outstanding | ' | ||||||||
The weighted average diluted common shares outstanding for the three months ended March 31, 2014 and 2013, excludes the effect of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Total number of anti-dilutive potential common shares | 4 | — |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Reconciliation of Revenue and Operating Income (Loss) 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): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net service revenues | |||||||||
Temporary and consultant staffing | $ | 857,570 | $ | 823,422 | |||||
Permanent placement staffing | 92,625 | 83,377 | |||||||
Risk consulting and internal audit services | 134,147 | 116,885 | |||||||
$ | 1,084,342 | $ | 1,023,684 | ||||||
Operating income | |||||||||
Temporary and consultant staffing | $ | 77,485 | $ | 73,180 | |||||
Permanent placement staffing | 17,275 | 12,585 | |||||||
Risk consulting and internal audit services | 7,349 | 3,740 | |||||||
102,109 | 89,505 | ||||||||
Amortization of intangible assets | 333 | 433 | |||||||
Interest income, net | (238 | ) | (304 | ) | |||||
Income before income taxes | $ | 102,014 | $ | 89,376 | |||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Subsequent Events [Abstract] | ' | ||||
Subsequent Events | ' | ||||
On May 6, 2014, the Company announced the following: | |||||
Quarterly dividend per share | $0.18 | ||||
Declaration date | May 6, 2014 | ||||
Record date | May 23, 2014 | ||||
Payment date | June 16, 2014 |
Advertising_Costs_Detail
Advertising Costs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Advertising costs | $9,753 | $9,903 |
InternalUse_Software_Developme
Internal-Use Software Development Costs Capitalized (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accounting Policies [Abstract] | ' | ' |
Internal-use software development costs | $5,892 | $1,170 |
Other_Current_Assets_Detail
Other Current Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Deposits in trusts for employee benefits and retirement plans | $155,016 | $149,391 |
Other | 65,749 | 82,587 |
Other current assets | $220,765 | $231,978 |
Activity_in_Goodwill_Detail
Activity in Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Beginning balance | $200,833 |
Foreign currency translation adjustments | -337 |
Ending balance | $200,496 |
Property_and_Equipment_Net_Com
Property and Equipment, Net - Components of Property and Equipment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Computer hardware | $150,106 | $148,541 |
Computer software | 294,411 | 288,532 |
Furniture and equipment | 110,296 | 111,426 |
Leasehold improvements | 119,787 | 118,868 |
Other | 11,928 | 11,488 |
Property and equipment, cost | 686,528 | 678,855 |
Accumulated depreciation | -574,941 | -566,211 |
Property and equipment, net | $111,587 | $112,644 |
Accrued_Payroll_Costs_and_Reti2
Accrued Payroll Costs and Retirement Obligations (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Payroll and benefits | $240,887 | $238,252 |
Employee retirement obligations | 97,365 | 96,461 |
Workers' compensation | 27,687 | 26,671 |
Payroll taxes | 26,298 | 34,658 |
Total accrued payroll costs and retirement obligations | $392,237 | $396,042 |
Employee_Retirement_Obligation
Employee Retirement Obligations (Detail) (Chief Executive Officer, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Chief Executive Officer | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Deferred compensation plan and other benefits related to the Company's Chief Executive Officer | $76,409 | $75,745 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
David Opalinski and James McCabe | ' |
Commitment And Contingencies [Line Items] | ' |
Allegations loss | ' |
Leonor Rodriguez | ' |
Commitment And Contingencies [Line Items] | ' |
Allegations loss | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Equity [Abstract] | ' |
Maximum number of shares authorized to be repurchased | 7.3 |
Number_and_Cost_of_Common_Stoc
Number and Cost of Common Stock Shares Repurchased (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Common stock repurchased (in shares) | 825 | 836 |
Common stock repurchased | $33,415 | $29,740 |
Number_and_Cost_of_Employee_St
Number and Cost of Employee Stock Plan Repurchases (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stockholders Equity Note [Abstract] | ' | ' |
Employee stock plan repurchased (in shares) | 239 | 453 |
Employee stock plan repurchased | $9,876 | $15,933 |
Calculation_of_Net_Income_Per_
Calculation of Net Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $61,551 | $55,863 |
Income allocated to participating securities-basic | ' | 2 |
Net income available to common stockholders-basic | 61,551 | 55,861 |
Basic weighted average shares | 135,333 | 137,311 |
Basic net income per share | $0.45 | $0.41 |
Net income | 61,551 | 55,863 |
Income allocated to participating securities-diluted | ' | 2 |
Net income available to common stockholders-diluted | $61,551 | $55,861 |
Basic weighted average shares | 135,333 | 137,311 |
Dilutive effect of potential common shares | 828 | 1,083 |
Diluted weighted average shares | 136,161 | 138,394 |
Diluted net income per share | $0.45 | $0.40 |
Weighted_Average_Diluted_Commo
Weighted Average Diluted Common Shares Outstanding (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Total number of anti-dilutive potential common shares | 4 | ' |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 3 |
Reconciliation_of_Revenue_and_
Reconciliation of Revenue and Operating Income (Loss) by Reportable Segment to Consolidated Results (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net service revenues | $1,084,342 | $1,023,684 |
Operating income | 102,109 | 89,505 |
Amortization of intangible assets | 333 | 433 |
Interest income, net | -238 | -304 |
Income before income taxes | 102,014 | 89,376 |
Temporary and consultant staffing | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net service revenues | 857,570 | 823,422 |
Operating income | 77,485 | 73,180 |
Permanent placement staffing | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net service revenues | 92,625 | 83,377 |
Operating income | 17,275 | 12,585 |
Risk consulting and internal audit services | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net service revenues | 134,147 | 116,885 |
Operating income | $7,349 | $3,740 |
Dividend_Announced_Detail
Dividend Announced (Detail) (Subsequent Events, USD $) | 0 Months Ended |
6-May-14 | |
Subsequent Events | ' |
Subsequent Event [Line Items] | ' |
Quarterly dividend per share | $0.18 |
Declaration date | 6-May-14 |
Record date | 23-May-14 |
Payment date | 16-Jun-14 |