Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
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 | 132,686,250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 251,818 | $ 287,119 |
Accounts receivable, less allowances of $32,286 and $30,544 | 731,574 | 657,676 |
Current deferred income taxes | 141,738 | 133,151 |
Other current assets | 258,242 | 245,337 |
Total current assets | 1,383,372 | 1,323,283 |
Goodwill | 197,992 | 199,488 |
Property and equipment, net | 129,229 | 121,754 |
Other assets | 4,679 | 2,742 |
Total assets | 1,715,272 | 1,647,267 |
LIABILITIES | ||
Accounts payable and accrued expenses | 134,991 | 175,107 |
Accrued payroll and benefit costs | 508,915 | 448,115 |
Income taxes payable | 20,113 | 0 |
Current portion of notes payable and other indebtedness | 150 | 140 |
Total current liabilities | 664,169 | 623,362 |
Notes payable and other indebtedness, less current portion | 1,046 | 1,159 |
Other liabilities | 43,581 | 42,888 |
Total liabilities | $ 708,796 | $ 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 132,652,266 shares and 135,134,064 shares | 133 | 135 |
Capital surplus | 964,841 | 928,157 |
Accumulated other comprehensive (loss) income | (6,227) | 14,730 |
Retained earnings | 47,729 | 36,836 |
Total stockholders’ equity | 1,006,476 | 979,858 |
Total liabilities and stockholders’ equity | $ 1,715,272 | $ 1,647,267 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 32,286 | $ 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) | 132,652,266 | 135,134,064 |
Common stock, outstanding (in shares) | 132,652,266 | 135,134,064 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net service revenues | $ 1,312,718 | $ 1,224,308 | $ 3,790,339 | $ 3,473,564 |
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses | 762,917 | 719,088 | 2,215,949 | 2,051,405 |
Gross margin | 549,801 | 505,220 | 1,574,390 | 1,422,159 |
Selling, general and administrative expenses | 390,735 | 366,967 | 1,138,075 | 1,058,144 |
Amortization of intangible assets | 0 | 0 | 0 | 557 |
Interest income, net | (240) | (108) | (400) | (570) |
Income before income taxes | 159,306 | 138,361 | 436,715 | 364,028 |
Provision for income taxes | 62,581 | 53,177 | 172,362 | 142,153 |
Net income | $ 96,725 | $ 85,184 | $ 264,353 | $ 221,875 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.74 | $ 0.64 | $ 2 | $ 1.65 |
Diluted (in usd per share) | $ 0.73 | $ 0.63 | $ 1.98 | $ 1.63 |
Shares: | ||||
Basic (in shares) | 131,285 | 134,054 | 132,280 | 134,690 |
Diluted (in shares) | 132,488 | 135,366 | 133,436 | 135,740 |
Cash dividends declared per share | $ 0.20 | $ 0.18 | $ 0.60 | $ 0.54 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
COMPREHENSIVE INCOME: | ||||
Net income | $ 96,725 | $ 85,184 | $ 264,353 | $ 221,875 |
Foreign currency translation adjustments, net of tax | (7,378) | (15,281) | (20,957) | (12,995) |
Total comprehensive income | $ 89,347 | $ 69,903 | $ 243,396 | $ 208,880 |
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) | 796 | ||||
Repurchases of common stock, (in shares) | (2,808) | ||||
Exercises of stock options, (in shares) | 469 | ||||
Balance at end of period, (in shares) at Sep. 30, 2014 | 135,923 | ||||
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 | (3) | (126,828) | |||
Balance at end of period at Sep. 30, 2014 | 136 | 912,978 | 25,076 | 34,393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 29,960 | ||||
Exercise of stock options | $ 1 | 12,686 | |||
Tax impact of equity incentive plans | 2,213 | ||||
Foreign currency translation adjustments, net of tax | $ (12,995) | (12,995) | |||
Net income | 221,875 | 221,875 | |||
Cash dividends ($.60 per share and $.54 per share) | (73,969) | ||||
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) | 591 | ||||
Repurchases of common stock, (in shares) | (3,127) | ||||
Exercises of stock options, (in shares) | 54 | ||||
Balance at end of period, (in shares) at Sep. 30, 2015 | 132,652 | ||||
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 | (3) | (172,736) | |||
Balance at end of period at Sep. 30, 2015 | 1,006,476 | 133 | 964,841 | (6,227) | 47,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 30,540 | ||||
Exercise of stock options | $ 0 | 1,511 | |||
Tax impact of equity incentive plans | $ 4,634 | ||||
Foreign currency translation adjustments, net of tax | (20,957) | $ (20,957) | |||
Net income | $ 264,353 | 264,353 | |||
Cash dividends ($.60 per share and $.54 per share) | $ (80,724) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
RETAINED EARNINGS: | ||
Cash dividends, per share | $ 0.60 | $ 0.54 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 264,353 | $ 221,875 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of intangible assets | 0 | 557 |
Depreciation expense | 39,487 | 36,170 |
Stock-based compensation expense—restricted stock and stock units | 30,540 | 29,960 |
Excess tax benefits from stock-based compensation | (4,645) | (1,644) |
Deferred income taxes | (6,912) | (11,167) |
Provision for doubtful accounts | 7,096 | 6,730 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (96,505) | (123,259) |
Increase in accounts payable, accrued expenses, accrued payroll and benefit costs | 63,149 | 72,137 |
Increase in income taxes payable | 34,854 | 36,991 |
Change in other assets, net of change in other liabilities | (11,176) | (10,530) |
Net cash flows provided by operating activities | 320,241 | 257,820 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (48,276) | (36,207) |
Payments to trusts for employee deferred compensation plans | (19,578) | (18,220) |
Net cash flows used in investing activities | (67,854) | (54,427) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchases of common stock | (201,209) | (124,679) |
Cash dividends paid | (80,169) | (72,752) |
Payments for notes payable and other indebtedness | (104) | (95) |
Excess tax benefits from stock-based compensation | 4,645 | 1,644 |
Proceeds from exercises of stock options | 1,511 | 12,686 |
Net cash flows used in financing activities | (275,326) | (183,196) |
Effect of exchange rate changes on cash and cash equivalents | (12,362) | (5,085) |
Net (decrease) increase in cash and cash equivalents | (35,301) | 15,112 |
Cash and cash equivalents at beginning of period | 287,119 | 275,764 |
Cash and cash equivalents at end of period | 251,818 | 290,876 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Stock repurchases awaiting settlement | $ 1,682 | $ 2,152 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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 September 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 nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Advertising costs $ 11,618 $11,251 $ 33,728 $ 30,881 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 nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Internal-use software development costs $ 7,474 $7,010 $ 24,349 $ 17,846 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 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. Business Combinations. In September 2015, the FASB issued authoritative guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that an acquirer record in the same period’s financial statements the effects of the cumulative impact of adjustments including the impact on prior periods. The prior period impact of the adjustment should be presented separately on the face of the income statement or disclosed in the notes. The new guidance is effective for annual and interim periods beginning after December 15, 2015 for public business entities. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. 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 | 9 Months Ended |
Sep. 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): September 30, 2015 December 31, 2014 Deposits in trusts for employee deferred compensation plans $ 188,646 $ 172,237 Other 69,596 73,100 Other current assets $ 258,242 $ 245,337 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in thousands): September 30, 2015 December 31, 2014 Computer hardware $ 155,293 $ 159,309 Computer software 335,710 312,968 Furniture and equipment 104,665 105,262 Leasehold improvements 112,990 113,782 Other 9,300 9,045 Property and equipment, cost 717,958 700,366 Accumulated depreciation (588,729 ) (578,612 ) Property and equipment, net $ 129,229 $ 121,754 |
Accrued Payroll and Benefit Cos
Accrued Payroll and Benefit Costs | 9 Months Ended |
Sep. 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): September 30, 2015 December 31, 2014 Payroll and benefits $ 261,779 $ 213,962 Employee deferred compensation plans 194,364 181,709 Workers’ compensation 28,521 26,127 Payroll taxes 24,251 26,317 Accrued payroll and benefit costs $ 508,915 $ 448,115 Included in employee deferred compensation plans is the following (in thousands): September 30, 2015 December 31, 2014 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 80,809 $ 79,060 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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. On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint, 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 and 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 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 | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock Repurchase Program. As of September 30, 2015 , the Company is authorized to repurchase, from time to time, up to 1.8 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 nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Nine Months Ended 2015 2014 Common stock repurchased (in shares) 2,932 2,543 Common stock repurchased $ 161,073 $ 115,694 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 nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Nine Months Ended 2015 2014 Employee stock plan repurchased (in shares) 195 265 Employee stock plan repurchased $ 11,666 $ 11,137 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 nine months ended September 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 | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 96,725 $ 85,184 $ 264,353 $ 221,875 Basic: Weighted average shares 131,285 134,054 132,280 134,690 Diluted: Weighted average shares 131,285 134,054 132,280 134,690 Dilutive effect of potential common shares 1,203 1,312 1,156 1,050 Diluted weighted average shares 132,488 135,366 133,436 135,740 Net income per share: Basic $ .74 $ .64 $ 2.00 $ 1.65 Diluted $ .73 $ .63 $ 1.98 $ 1.63 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 nine months ended September 30, 2015 and 2014 , excludes the effect of the following (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Total number of anti-dilutive potential common shares 247 — 168 1 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net service revenues Temporary and consultant staffing $ 999,822 $ 954,225 $ 2,922,942 $ 2,722,833 Permanent placement staffing 110,748 102,345 319,744 297,797 Risk consulting and internal audit services 202,148 167,738 547,653 452,934 $ 1,312,718 $ 1,224,308 $ 3,790,339 $ 3,473,564 Operating income Temporary and consultant staffing $ 102,991 $ 97,660 $ 300,404 $ 263,901 Permanent placement staffing 24,377 21,380 67,460 61,103 Risk consulting and internal audit services 31,698 19,213 68,451 39,011 159,066 138,253 436,315 364,015 Amortization of intangible assets — — — 557 Interest income, net (240 ) (108 ) (400 ) (570 ) Income before income taxes $ 159,306 $ 138,361 $ 436,715 $ 364,028 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 29, 2015, the Company authorized the repurchase, from time to time, of up to an additional 10 million shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The authorization is in addition to the 1.8 million shares remaining under the existing repurchase program. There is no guarantee as to whether, when, or how many shares the Company will repurchase, and the Company may discontinue the repurchase program at any time. On October 29, 2015, the Company announced the following: Quarterly dividend per share $.20 Declaration date October 29, 2015 Record date November 25, 2015 Payment date December 15, 2015 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 September 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. Business Combinations. In September 2015, the FASB issued authoritative guidance that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that an acquirer record in the same period’s financial statements the effects of the cumulative impact of adjustments including the impact on prior periods. The prior period impact of the adjustment should be presented separately on the face of the income statement or disclosed in the notes. The new guidance is effective for annual and interim periods beginning after December 15, 2015 for public business entities. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. 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 nine months ended September 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 Accoun20
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Advertising Costs | Advertising costs for the three and nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Advertising costs $ 11,618 $11,251 $ 33,728 $ 30,881 |
Internal-Use Software Development Costs Capitalized | Internal-use software development costs capitalized for the three and nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Internal-use software development costs $ 7,474 $7,010 $ 24,349 $ 17,846 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consisted of the following (in thousands): September 30, 2015 December 31, 2014 Deposits in trusts for employee deferred compensation plans $ 188,646 $ 172,237 Other 69,596 73,100 Other current assets $ 258,242 $ 245,337 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following (in thousands): September 30, 2015 December 31, 2014 Computer hardware $ 155,293 $ 159,309 Computer software 335,710 312,968 Furniture and equipment 104,665 105,262 Leasehold improvements 112,990 113,782 Other 9,300 9,045 Property and equipment, cost 717,958 700,366 Accumulated depreciation (588,729 ) (578,612 ) Property and equipment, net $ 129,229 $ 121,754 |
Accrued Payroll and Benefit C23
Accrued Payroll and Benefit Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Text Block [Abstract] | |
Accrued Payroll Costs and Retirement Obligations | Accrued payroll and benefit costs consisted of the following (in thousands): September 30, 2015 December 31, 2014 Payroll and benefits $ 261,779 $ 213,962 Employee deferred compensation plans 194,364 181,709 Workers’ compensation 28,521 26,127 Payroll taxes 24,251 26,317 Accrued payroll and benefit costs $ 508,915 $ 448,115 |
Employee Retirement Obligations | Included in employee deferred compensation plans is the following (in thousands): September 30, 2015 December 31, 2014 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 80,809 $ 79,060 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Number and Cost of Common Stock Shares Repurchased | The number and the cost of common stock shares repurchased during the nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Nine Months Ended 2015 2014 Common stock repurchased (in shares) 2,932 2,543 Common stock repurchased $ 161,073 $ 115,694 |
Number and Cost of Employee Stock Plan Repurchases | The number and the cost of employee stock plan repurchases made during the nine months ended September 30, 2015 and 2014 , are reflected in the following table (in thousands): Nine Months Ended 2015 2014 Employee stock plan repurchased (in shares) 195 265 Employee stock plan repurchased $ 11,666 $ 11,137 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Net Income Per Share | The calculation of net income per share for the three and nine months ended September 30, 2015 and 2014 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 96,725 $ 85,184 $ 264,353 $ 221,875 Basic: Weighted average shares 131,285 134,054 132,280 134,690 Diluted: Weighted average shares 131,285 134,054 132,280 134,690 Dilutive effect of potential common shares 1,203 1,312 1,156 1,050 Diluted weighted average shares 132,488 135,366 133,436 135,740 Net income per share: Basic $ .74 $ .64 $ 2.00 $ 1.65 Diluted $ .73 $ .63 $ 1.98 $ 1.63 |
Weighted Average Diluted Common Shares Outstanding | The weighted average diluted common shares outstanding for the three and nine months ended September 30, 2015 and 2014 , excludes the effect of the following (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Total number of anti-dilutive potential common shares 247 — 168 1 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net service revenues Temporary and consultant staffing $ 999,822 $ 954,225 $ 2,922,942 $ 2,722,833 Permanent placement staffing 110,748 102,345 319,744 297,797 Risk consulting and internal audit services 202,148 167,738 547,653 452,934 $ 1,312,718 $ 1,224,308 $ 3,790,339 $ 3,473,564 Operating income Temporary and consultant staffing $ 102,991 $ 97,660 $ 300,404 $ 263,901 Permanent placement staffing 24,377 21,380 67,460 61,103 Risk consulting and internal audit services 31,698 19,213 68,451 39,011 159,066 138,253 436,315 364,015 Amortization of intangible assets — — — 557 Interest income, net (240 ) (108 ) (400 ) (570 ) Income before income taxes $ 159,306 $ 138,361 $ 436,715 $ 364,028 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | On October 29, 2015, the Company announced the following: Quarterly dividend per share $.20 Declaration date October 29, 2015 Record date November 25, 2015 Payment date December 15, 2015 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Advertising costs | $ 11,618 | $ 11,251 | $ 33,728 | $ 30,881 |
Internal-use software development costs | $ 7,474 | $ 7,010 | $ 24,349 | $ 17,846 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits in trusts for employee deferred compensation plans | $ 188,646 | $ 172,237 |
Other | 69,596 | 73,100 |
Other current assets | $ 258,242 | $ 245,337 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Computer hardware | $ 155,293 | $ 159,309 |
Computer software | 335,710 | 312,968 |
Furniture and equipment | 104,665 | 105,262 |
Leasehold improvements | 112,990 | 113,782 |
Other | 9,300 | 9,045 |
Property and equipment, cost | 717,958 | 700,366 |
Accumulated depreciation | (588,729) | (578,612) |
Property and equipment, net | $ 129,229 | $ 121,754 |
Accrued Payroll and Benefit C31
Accrued Payroll and Benefit Costs (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 261,779 | $ 213,962 |
Employee deferred compensation plans | 194,364 | 181,709 |
Workers’ compensation | 28,521 | 26,127 |
Payroll taxes | 24,251 | 26,317 |
Total accrued payroll costs and retirement obligations | 508,915 | 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 | $ 80,809 | $ 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 | Sep. 30, 2015shares |
Equity [Abstract] | |
Maximum number of shares authorized to be repurchased | 1.8 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Common stock repurchased (in shares) | 2,932 | 2,543 |
Common stock repurchased | $ 161,073 | $ 115,694 |
Stockholders' Equity - Number35
Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Employee stock plan repurchased (in shares) | 195 | 265 |
Employee stock plan repurchased | $ 11,666 | $ 11,137 |
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 96,725 | $ 85,184 | $ 264,353 | $ 221,875 |
Basic: | ||||
Weighted average shares | 131,285 | 134,054 | 132,280 | 134,690 |
Diluted: | ||||
Weighted average shares | 131,285 | 134,054 | 132,280 | 134,690 |
Dilutive effect of potential common shares | 1,203 | 1,312 | 1,156 | 1,050 |
Diluted weighted average shares | 132,488 | 135,366 | 133,436 | 135,740 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.74 | $ 0.64 | $ 2 | $ 1.65 |
Diluted (in usd per share) | $ 0.73 | $ 0.63 | $ 1.98 | $ 1.63 |
Net Income Per Share - Weighted
Net Income Per Share - Weighted Average Diluted Common Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Total number of anti-dilutive potential common shares | 247 | 0 | 168 | 1 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net service revenues | $ 1,312,718 | $ 1,224,308 | $ 3,790,339 | $ 3,473,564 |
Operating income | 159,066 | 138,253 | 436,315 | 364,015 |
Amortization of intangible assets | 0 | 0 | 0 | 557 |
Interest income, net | (240) | (108) | (400) | (570) |
Income before income taxes | 159,306 | 138,361 | 436,715 | 364,028 |
Temporary and consultant staffing | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 999,822 | 954,225 | 2,922,942 | 2,722,833 |
Operating income | 102,991 | 97,660 | 300,404 | 263,901 |
Permanent placement staffing | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 110,748 | 102,345 | 319,744 | 297,797 |
Operating income | 24,377 | 21,380 | 67,460 | 61,103 |
Risk consulting and internal audit services | ||||
Segment Reporting Information [Line Items] | ||||
Net service revenues | 202,148 | 167,738 | 547,653 | 452,934 |
Operating income | $ 31,698 | $ 19,213 | $ 68,451 | $ 39,011 |
Subsequent Events - Dividend An
Subsequent Events - Dividend Announced (Details) - $ / shares shares in Millions | Oct. 29, 2015 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||
Additional number of shares authorized to be repurchased | 1.8 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1.8 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Additional number of shares authorized to be repurchased | 10 | |
Quarterly dividend per share | $ 0.20 | |
Declaration date | Oct. 29, 2015 | |
Record date | Nov. 25, 2015 | |
Payment date | Dec. 15, 2015 |