Robert Half International (RHI) 10-Q 3 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	RHI
Entity Registrant Name	HALF ROBERT INTERNATIONAL INC /DE/
Entity Central Index Key	315,213
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	134,499,736

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 313,131	$ 287,119
Accounts receivable, less allowances of $31,267 and $30,544	687,029	657,676
Current deferred income taxes	137,039	133,151
Other current assets	260,235	245,337
Total current assets	1,397,434	1,323,283
Goodwill	198,713	199,488
Property and equipment, net	124,649	121,754
Other assets	2,404	2,742
Total assets	1,723,200	1,647,267
LIABILITIES
Accounts payable and accrued expenses	152,900	175,107
Accrued payroll and benefit costs	481,658	448,115
Income taxes payable	29,095	0
Current portion of notes payable and other indebtedness	146	140
Total current liabilities	663,799	623,362
Notes payable and other indebtedness, less current portion	1,085	1,159
Other liabilities	43,641	42,888
Total liabilities	$ 708,525	$ 667,409
Commitments and Contingencies
STOCKHOLDERS’ EQUITY
Preferred stock, $.001 par value authorized 5,000,000 shares; issued and outstanding zero shares	$ 0	$ 0
Common stock, $.001 par value authorized 260,000,000 shares; issued and outstanding 134,199,907 shares and 135,134,064 shares	134	135
Capital surplus	953,802	928,157
Accumulated other comprehensive income	1,151	14,730
Retained earnings	59,588	36,836
Total stockholders’ equity	1,014,675	979,858
Total liabilities and stockholders’ equity	$ 1,723,200	$ 1,647,267

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 31,267	$ 30,544
Preferred stock, par value	$ 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 shares)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	260,000,000	260,000,000
Common stock, issued (in shares)	134,199,907	135,134,064
Common stock, outstanding (in shares)	134,199,907	135,134,064

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net service revenues	$ 1,272,058	$ 1,164,914	$ 2,477,621	$ 2,249,256
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses	741,556	686,470	1,453,032	1,332,317
Gross margin	530,502	478,444	1,024,589	916,939
Selling, general and administrative expenses	381,355	354,791	747,340	691,177
Amortization of intangible assets	0	224	0	557
Interest income, net	(88)	(224)	(160)	(462)
Income before income taxes	149,235	123,653	277,409	225,667
Provision for income taxes	59,529	48,513	109,781	88,976
Net income	$ 89,706	$ 75,140	$ 167,628	$ 136,691
Net income per share:
Basic (in usd per share)	$ 0.68	$ 0.56	$ 1.26	$ 1.01
Diluted (in usd per share)	$ 0.67	$ 0.55	$ 1.25	$ 1.01
Shares:
Basic (in shares)	132,499	134,699	132,786	135,014
Diluted (in shares)	133,553	135,708	133,918	135,932
Cash dividends declared per share	$ 0.20	$ 0.18	$ 0.40	$ 0.36

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
COMPREHENSIVE INCOME:
Net income	$ 89,706	$ 75,140	$ 167,628	$ 136,691
Foreign currency translation adjustments, net of tax	6,383	1,881	(13,579)	2,286
Total comprehensive income	$ 96,089	$ 77,021	$ 154,049	$ 138,977

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	COMMON STOCK:	CAPITAL SURPLUS:	ACCUMULATED OTHER COMPREHENSIVE INCOME:	RETAINED EARNINGS:
Balance at beginning of period, (in shares) at Dec. 31, 2013		137,466
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		798
Repurchases of common stock, (in shares)		(1,557)
Exercises of stock options, (in shares)		394
Balance at end of period, (in shares) at Jun. 30, 2014		137,101
Balance at beginning of period at Dec. 31, 2013		$ 137	$ 868,120	$ 38,071	$ 13,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Repurchases of common stock		(1)			(65,157)
Balance at end of period at Jun. 30, 2014		$ 137	899,631	40,357	35,436
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense			19,149
Exercise of stock options			10,628
Tax impact of equity incentive plans			1,735
Foreign currency translation adjustments, net of tax	$ 2,286			2,286
Net income	136,691				136,691
Cash dividends					(49,413)
Balance at beginning of period, (in shares) at Dec. 31, 2014		135,134
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		593
Repurchases of common stock, (in shares)		(1,575)
Exercises of stock options, (in shares)		48
Balance at end of period, (in shares) at Jun. 30, 2015		134,200
Balance at beginning of period at Dec. 31, 2014	979,858	$ 135	928,157	14,730	36,836
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Repurchases of common stock		(2)			(90,892)
Balance at end of period at Jun. 30, 2015	1,014,675	$ 134	953,802	1,151	59,588
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense			19,688
Exercise of stock options			1,334
Tax impact of equity incentive plans			$ 4,624
Foreign currency translation adjustments, net of tax	(13,579)			$ (13,579)
Net income	$ 167,628				167,628
Cash dividends					$ (53,984)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
RETAINED EARNINGS:
Cash dividends, per share	$ 0.40	$ 0.36

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 167,628	$ 136,691
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	0	557
Depreciation expense	26,568	24,063
Stock-based compensation expense—restricted stock and stock units	19,688	19,149
Excess tax benefits from stock-based compensation	(4,631)	(1,258)
Deferred income taxes	(986)	(3,143)
Provision for doubtful accounts	3,932	4,678
Changes in assets and liabilities:
Increase in accounts receivable	(44,033)	(68,662)
Increase in accounts payable, accrued expenses, accrued payroll and benefit costs	29,245	31,235
Increase in income taxes payable	41,667	31,205
Change in other assets, net of change in other liabilities	(12,683)	(10,376)
Net cash flows provided by operating activities	226,395	164,139
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(29,523)	(23,085)
Payments to trusts for employee deferred compensation plans	(13,013)	(9,806)
Net cash flows used in investing activities	(42,536)	(32,891)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(104,220)	(65,158)
Cash dividends paid	(53,881)	(48,654)
Payments for notes payable and other indebtedness	(69)	(63)
Excess tax benefits from stock-based compensation	4,631	1,258
Proceeds from exercises of stock options	1,334	10,628
Net cash flows used in financing activities	(152,205)	(101,989)
Effect of exchange rate changes on cash and cash equivalents	(5,642)	2,755
Net increase in cash and cash equivalents	26,012	32,014
Cash and cash equivalents at beginning of period	287,119	275,764
Cash and cash equivalents at end of period	313,131	307,778
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Stock repurchases awaiting settlement	$ 16,826	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Nature of Operations . Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting , OfficeTeam ® , Robert Half ® Technology , Robert Half ® Management Resources , Robert Half ® Legal , The Creative Group ® , and Protiviti ® . The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, 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”). 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, 2014 , 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 June 30, 2015 , 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 and in the valuation of stock grants subject to market conditions. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs for the three and six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Advertising costs $ 11,045 $9,877 $ 22,110 $ 19,630 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 and six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Internal-use software development costs $ 8,932 $4,944 $ 16,941 $ 10,836

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standard Board ("FASB") issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB issued a decision to delay the effective date by one year. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Public entities are not permitted to adopt the standard earlier than the original effective date (that is, no earlier than 2017 for calendar year-end entities). The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption of this guidance on its Financial Statements. Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the FASB issued authoritative guidance designed to assist customers in their determination of whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. This guidance is effective for annual and interim periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact to its Financial Statements.

Other Current Assets

Other Current Assets	6 Months Ended
	Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consisted of the following (in thousands): June 30, 2015 December 31, 2014 Deposits in trusts for employee deferred compensation plans $ 188,951 $ 172,237 Other 71,284 73,100 $ 260,235 $ 245,337

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table sets forth the activity in goodwill from December 31, 2014 through June 30, 2015 (in thousands): Goodwill Balance as of December 31, 2014 $ 199,488 Foreign currency translation adjustments (775 ) Balance as of June 30, 2015 $ 198,713 The company completed its annual goodwill impairment analysis as of June 30, 2015, and determined that no adjustment to the carrying value of goodwill was required.

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consisted of the following (in thousands): June 30, 2015 December 31, 2014 Computer hardware $ 154,591 $ 159,309 Computer software 324,617 312,968 Furniture and equipment 105,877 105,262 Leasehold improvements 113,692 113,782 Other 9,317 9,045 Property and equipment, cost 708,094 700,366 Accumulated depreciation (583,445 ) (578,612 ) Property and equipment, net $ 124,649 $ 121,754

Accrued Payroll and Benefit Cos

Accrued Payroll and Benefit Costs	6 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Accrued Payroll and Benefit Costs	Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): June 30, 2015 December 31, 2014 Payroll and benefits $ 233,694 $ 213,962 Employee deferred compensation plans 191,671 181,709 Workers’ compensation 27,477 26,127 Payroll taxes 28,816 26,317 $ 481,658 $ 448,115 Included in employee deferred compensation plans is the following (in thousands): June 30, 2015 December 31, 2014 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $79,953 $79,060

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 (“PAGA”). On October 10, 2014, the Court granted a motion by the Company to compel all of Rodriguez’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. The Company’s Form 10-Q for the fiscal quarter ended March 31, 2015 and Form 10-K for the fiscal year ended December 31, 2014 contained disclosures regarding a complaint filed in California Superior Court by Plaintiff Theresa Daniels, on behalf of herself and a putative class of salaried Recruiting Managers, naming the Company as Defendant. The complaint alleged that salaried Recruiting Managers based in California had been misclassified under California law as exempt employees, and sought an unspecified amount for unpaid overtime pay alleged to be due to them had they been paid as non-exempt hourly employees, as well as statutory penalties for alleged violations of the California Labor Code arising from such alleged misclassification. The complaint also alleged a claim under California Business and Professions Code section 17200 for unfair competition. The Plaintiff also sought an unspecified amount for other damages, attorneys’ fees, and statutory penalties. On or about September 17, 2014, the Plaintiff provided written notice to the California Labor and Workforce Development Agency of her alleged claims. On October 27, 2014, the Plaintiff filed a First Amended Complaint adding a representative claim and request for penalties under the California Private Attorney General Act. On May 9, 2015, the parties entered into a settlement agreement with regard to Plaintiff’s individual claims in an amount immaterial to the Company and, on May 26, 2015, the Court dismissed the complaint. Accordingly, the Company will not make disclosures regarding this case in its future Securities and Exchange Commission filings. On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County. The complaint, which was filed by the same plaintiffs’ law firm that brought the Rodriguez matter described above, alleges claims similar to those alleged in Rodriguez . Specifically, 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. 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	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchase Program. As of June 30, 2015 , the Company is authorized to repurchase, from time to time, up to 3.4 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 six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Six Months Ended 2015 2014 Common stock repurchased (in shares) 1,381 1,306 Common stock repurchased $ 79,251 $ 54,728 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 six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Six Months Ended 2015 2014 Employee stock plan repurchased (in shares) 194 251 Employee stock plan repurchased $ 11,643 $ 10,430 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 six months ended June 30, 2015 and 2014 , 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	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The calculation of net income per share for the three and six months ended June 30, 2015 and 2014 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Net income $ 89,706 $ 75,140 $ 167,628 $ 136,691 Basic: Weighted average shares 132,499 134,699 132,786 135,014 Diluted: Weighted average shares 132,499 134,699 132,786 135,014 Dilutive effect of potential common shares 1,054 1,009 1,132 918 Diluted weighted average shares 133,553 135,708 133,918 135,932 Net income per share: Basic $ .68 $ .56 $ 1.26 $ 1.01 Diluted $ .67 $ .55 $ 1.25 $ 1.01 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 and six months ended June 30, 2015 and 2014 , excludes the effect of the following (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Total number of anti-dilutive potential common shares 247 322 127 171

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Business Segments	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, 2014 . The Company evaluates performance based on income from operations before net interest income, intangible amortization expense, and income taxes. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results for the three and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net service revenues Temporary and consultant staffing $ 979,602 $ 911,038 $ 1,923,120 $ 1,768,608 Permanent placement staffing 110,583 102,827 208,996 195,452 Risk consulting and internal audit services 181,873 151,049 345,505 285,196 $ 1,272,058 $ 1,164,914 $ 2,477,621 $ 2,249,256 Operating income Temporary and consultant staffing $ 104,612 $ 88,756 $ 197,413 $ 166,241 Permanent placement staffing 24,052 22,448 43,083 39,723 Risk consulting and internal audit services 20,483 12,449 36,753 19,798 149,147 123,653 277,249 225,762 Amortization of intangible assets — 224 — 557 Interest income, net (88 ) (224 ) (160 ) (462 ) Income before income taxes $ 149,235 $ 123,653 $ 277,409 $ 225,667

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 30, 2015, the Company announced the following: Quarterly dividend per share $.20 Declaration date July 30, 2015 Record date August 25, 2015 Payment date September 15, 2015

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
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 interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, 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”). 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, 2014 , 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 June 30, 2015 , 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 and in the valuation of stock grants subject to market conditions.
Advertising Costs	Advertising Costs. The Company expenses all advertising costs as incurred.
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.
New Accounting Pronouncements	Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standard Board ("FASB") issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB issued a decision to delay the effective date by one year. The new guidance is effective for annual and interim periods beginning after December 15, 2017. Public entities are not permitted to adopt the standard earlier than the original effective date (that is, no earlier than 2017 for calendar year-end entities). The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption of this guidance on its Financial Statements. Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the FASB issued authoritative guidance designed to assist customers in their determination of whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. This guidance is effective for annual and interim periods beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact to its Financial Statements.
Commitments and Contingencies	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.
Treasury Stock Policy	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 six months ended June 30, 2015 and 2014 , 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 Accoun21

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Advertising Costs	Advertising costs for the three and six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Advertising costs $ 11,045 $9,877 $ 22,110 $ 19,630
Internal-Use Software Development Costs Capitalized	Internal-use software development costs capitalized for the three and six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Internal-use software development costs $ 8,932 $4,944 $ 16,941 $ 10,836

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other current assets consisted of the following (in thousands): June 30, 2015 December 31, 2014 Deposits in trusts for employee deferred compensation plans $ 188,951 $ 172,237 Other 71,284 73,100 $ 260,235 $ 245,337

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Activity in Goodwill	The following table sets forth the activity in goodwill from December 31, 2014 through June 30, 2015 (in thousands): Goodwill Balance as of December 31, 2014 $ 199,488 Foreign currency translation adjustments (775 ) Balance as of June 30, 2015 $ 198,713

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following (in thousands): June 30, 2015 December 31, 2014 Computer hardware $ 154,591 $ 159,309 Computer software 324,617 312,968 Furniture and equipment 105,877 105,262 Leasehold improvements 113,692 113,782 Other 9,317 9,045 Property and equipment, cost 708,094 700,366 Accumulated depreciation (583,445 ) (578,612 ) Property and equipment, net $ 124,649 $ 121,754

Accrued Payroll and Benefit C25

Accrued Payroll and Benefit Costs (Tables)	6 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Accrued Payroll Costs and Retirement Obligations	Accrued payroll and benefit costs consisted of the following (in thousands): June 30, 2015 December 31, 2014 Payroll and benefits $ 233,694 $ 213,962 Employee deferred compensation plans 191,671 181,709 Workers’ compensation 27,477 26,127 Payroll taxes 28,816 26,317 $ 481,658 $ 448,115
Employee Retirement Obligations	Included in employee deferred compensation plans is the following (in thousands): June 30, 2015 December 31, 2014 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $79,953 $79,060

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Number and Cost of Common Stock Shares Repurchased	The number and the cost of common stock shares repurchased during the six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Six Months Ended 2015 2014 Common stock repurchased (in shares) 1,381 1,306 Common stock repurchased $ 79,251 $ 54,728
Number and Cost of Employee Stock Plan Repurchases	The number and the cost of employee stock plan repurchases made during the six months ended June 30, 2015 and 2014 , are reflected in the following table (in thousands): Six Months Ended 2015 2014 Employee stock plan repurchased (in shares) 194 251 Employee stock plan repurchased $ 11,643 $ 10,430

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Calculation of Net Income Per Share	The calculation of net income per share for the three and six months ended June 30, 2015 and 2014 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Net income $ 89,706 $ 75,140 $ 167,628 $ 136,691 Basic: Weighted average shares 132,499 134,699 132,786 135,014 Diluted: Weighted average shares 132,499 134,699 132,786 135,014 Dilutive effect of potential common shares 1,054 1,009 1,132 918 Diluted weighted average shares 133,553 135,708 133,918 135,932 Net income per share: Basic $ .68 $ .56 $ 1.26 $ 1.01 Diluted $ .67 $ .55 $ 1.25 $ 1.01
Weighted Average Diluted Common Shares Outstanding	The weighted average diluted common shares outstanding for the three and six months ended June 30, 2015 and 2014 , excludes the effect of the following (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Total number of anti-dilutive potential common shares 247 322 127 171

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2015
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 and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net service revenues Temporary and consultant staffing $ 979,602 $ 911,038 $ 1,923,120 $ 1,768,608 Permanent placement staffing 110,583 102,827 208,996 195,452 Risk consulting and internal audit services 181,873 151,049 345,505 285,196 $ 1,272,058 $ 1,164,914 $ 2,477,621 $ 2,249,256 Operating income Temporary and consultant staffing $ 104,612 $ 88,756 $ 197,413 $ 166,241 Permanent placement staffing 24,052 22,448 43,083 39,723 Risk consulting and internal audit services 20,483 12,449 36,753 19,798 149,147 123,653 277,249 225,762 Amortization of intangible assets — 224 — 557 Interest income, net (88 ) (224 ) (160 ) (462 ) Income before income taxes $ 149,235 $ 123,653 $ 277,409 $ 225,667

Subsequent Events (Tables)

Subsequent Events (Tables)	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	On July 30, 2015, the Company announced the following: Quarterly dividend per share $.20 Declaration date July 30, 2015 Record date August 25, 2015 Payment date September 15, 2015

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Advertising costs	$ 11,045	$ 9,877	$ 22,110	$ 19,630
Internal-use software development costs	$ 8,932	$ 4,944	$ 16,941	$ 10,836

Other Current Assets (Detail)

Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits in trusts for employee deferred compensation plans	$ 188,951	$ 172,237
Other	71,284	73,100
Other current assets	$ 260,235	$ 245,337

Goodwill (Details)

Goodwill (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of December 31, 2014	$ 199,488,000
Foreign currency translation adjustments	(775,000)
Balance as of June 30, 2015	198,713,000
Goodwill impairment	$ 0

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Computer hardware	$ 154,591	$ 159,309
Computer software	324,617	312,968
Furniture and equipment	105,877	105,262
Leasehold improvements	113,692	113,782
Other	9,317	9,045
Property and equipment, cost	708,094	700,366
Accumulated depreciation	(583,445)	(578,612)
Property and equipment, net	$ 124,649	$ 121,754

Accrued Payroll and Benefit C34

Accrued Payroll and Benefit Costs (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Payroll and benefits	$ 233,694	$ 213,962
Employee deferred compensation plans	191,671	181,709
Workers’ compensation	27,477	26,127
Payroll taxes	28,816	26,317
Total accrued payroll costs and retirement obligations	481,658	448,115
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	$ 79,953	$ 79,060

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Mar. 13, 2014	Apr. 23, 2010	Mar. 23, 2015
David Opalinski and James McCabe
Commitment And Contingencies [Line Items]
Allegations loss		$ 0
Leonor Rodriguez
Commitment And Contingencies [Line Items]
Allegations loss	$ 0
Pending Litigation | Jessica Gentry
Commitment And Contingencies [Line Items]
Loss contingency			$ 0

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) shares in Millions	Jun. 30, 2015shares
Equity [Abstract]
Maximum number of shares authorized to be repurchased	3.4

Stockholders' Equity - Number a

Stockholders' Equity - Number and Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Common stock repurchased (in shares)	1,381	1,306
Common stock repurchased	$ 79,251	$ 54,728

Stockholders' Equity - Number38

Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Employee stock plan repurchased (in shares)	194	251
Employee stock plan repurchased	$ 11,643	$ 10,430

Net Income Per Share - Calculat

Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 89,706	$ 75,140	$ 167,628	$ 136,691
Basic:
Weighted average shares	132,499	134,699	132,786	135,014
Diluted:
Weighted average shares	132,499	134,699	132,786	135,014
Dilutive effect of potential common shares	1,054	1,009	1,132	918
Diluted weighted average shares	133,553	135,708	133,918	135,932
Net Income Per Share:
Basic (in usd per share)	$ 0.68	$ 0.56	$ 1.26	$ 1.01
Diluted (in usd per share)	$ 0.67	$ 0.55	$ 1.25	$ 1.01

Net Income Per Share - Weighted

Net Income Per Share - Weighted Average Diluted Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Total number of anti-dilutive potential common shares	247	322	127	171

Business Segments - Additional

Business Segments - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015Segment
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		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Net service revenues	$ 1,272,058	$ 1,164,914	$ 2,477,621	$ 2,249,256
Operating income	149,147	123,653	277,249	225,762
Amortization of intangible assets	0	224	0	557
Interest income, net	(88)	(224)	(160)	(462)
Income before income taxes	149,235	123,653	277,409	225,667
Temporary and consultant staffing
Segment Reporting Information [Line Items]
Net service revenues	979,602	911,038	1,923,120	1,768,608
Operating income	104,612	88,756	197,413	166,241
Permanent placement staffing
Segment Reporting Information [Line Items]
Net service revenues	110,583	102,827	208,996	195,452
Operating income	24,052	22,448	43,083	39,723
Risk consulting and internal audit services
Segment Reporting Information [Line Items]
Net service revenues	181,873	151,049	345,505	285,196
Operating income	$ 20,483	$ 12,449	$ 36,753	$ 19,798

Subsequent Events - Dividend An

Subsequent Events - Dividend Announced (Details) - Jul. 30, 2015 - Subsequent Event - $ / shares	Total
Subsequent Event [Line Items]
Quarterly dividend per share	$ 0.20
Declaration date	Jul. 30, 2015
Record date	Aug. 25, 2015
Payment date	Sep. 15, 2015