Robert Half International (RHI) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		127,179,472

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 260,143	$ 260,201
Accounts receivable, less allowances of $32,047 and $33,133	700,419	703,228
Other current assets	335,360	320,805
Total current assets	1,295,922	1,284,234
Goodwill	209,925	209,793
Other intangible assets, net	3,370	3,671
Property and equipment, net	157,782	161,509
Noncurrent deferred income taxes	108,211	118,764
Total assets	1,775,210	1,777,971
LIABILITIES
Accounts payable and accrued expenses	117,308	135,540
Accrued payroll and benefit costs	546,900	539,048
Income taxes payable	18,221	5,141
Current portion of notes payable and other indebtedness	171	167
Total current liabilities	682,600	679,896
Notes payable and other indebtedness, less current portion	795	840
Other liabilities	10,872	10,636
Total liabilities	694,267	691,372
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 127,179,468 shares and 127,796,558 shares	127	128
Capital surplus	1,032,267	1,022,411
Accumulated other comprehensive loss	(15,638)	(20,502)
Retained earnings	64,187	84,562
Total stockholders’ equity	1,080,943	1,086,599
Total liabilities and stockholders’ equity	$ 1,775,210	$ 1,777,971

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 32,047	$ 33,133
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in usd per shares)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	260,000,000	260,000,000
Common stock, issued (in shares)	127,179,468	127,796,558
Common stock, outstanding (in shares)	127,179,468	127,796,558

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net service revenues	$ 1,287,370	$ 1,302,625
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses	761,542	770,653
Gross margin	525,828	531,972
Selling, general and administrative expenses	400,249	398,074
Amortization of intangible assets	301	288
Interest income, net	(223)	(181)
Income before income taxes	125,501	133,791
Provision for income taxes	46,980	50,375
Net income	$ 78,521	$ 83,416
Net income per share:
Basic (in usd per share)	$ 0.63	$ 0.65
Diluted (in usd per share)	$ 0.62	$ 0.64
Shares:
Basic (in shares)	125,537	129,281
Diluted (in shares)	126,418	130,137
Cash dividends declared per share (in usd per share)	$ 0.24	$ 0.22

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
COMPREHENSIVE INCOME:
Net income	$ 78,521	$ 83,416
Foreign currency translation adjustments, net of tax	4,864	7,986
Total comprehensive income	$ 83,385	$ 91,402

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2015		131,156
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		901
Repurchases of common stock, (in shares)		(741)
Exercises of stock options, (in shares)		2
Balance at end of period, (in shares) at Mar. 31, 2016		131,318
Balance at beginning of period at Dec. 31, 2015		$ 131	$ 979,477	$ (10,294)	$ 34,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Repurchases of common stock		(1)			(31,366)
Stock-based compensation expense			10,348
Exercises of stock options—excess over par value			60
Tax impact of equity incentive plans			(459)
Foreign currency translation adjustments, net of tax	$ 7,986			7,986
Net income	83,416				83,416
Cash dividends ($.24 per share and $.22 per share)					(28,812)
Balance at end of period at Mar. 31, 2016		$ 131	989,425	(2,308)	57,705
Balance at beginning of period, (in shares) at Dec. 31, 2016		127,797
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		807
Repurchases of common stock, (in shares)		(1,425)
Exercises of stock options, (in shares)		0
Balance at end of period, (in shares) at Mar. 31, 2017		127,179
Balance at beginning of period at Dec. 31, 2016	1,086,599	$ 128	1,022,411	(20,502)	84,562
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Repurchases of common stock		(2)			(68,295)
Stock-based compensation expense			9,857
Exercises of stock options—excess over par value			0
Tax impact of equity incentive plans			0
Foreign currency translation adjustments, net of tax	4,864			4,864
Net income	78,521				78,521
Cash dividends ($.24 per share and $.22 per share)					(30,601)
Balance at end of period at Mar. 31, 2017	$ 1,080,943	$ 127	$ 1,032,267	$ (15,638)	$ 64,187

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
RETAINED EARNINGS
Cash dividends, per share (in usd per share)	$ 0.24	$ 0.22

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 78,521	$ 83,416
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	301	288
Depreciation expense	15,899	15,123
Stock-based compensation expense—restricted stock and stock units	9,857	10,348
Excess tax benefits from stock-based compensation	0	(395)
Deferred income taxes	10,556	(835)
Provision for doubtful accounts	1,697	1,226
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	4,296	(25,379)
Decrease in accounts payable, accrued expenses, accrued payroll and benefit costs	(7,498)	(35,101)
Increase in income taxes payable	27,860	42,278
Change in other assets, net of change in other liabilities	(17,989)	(12,483)
Net cash flows provided by operating activities	123,500	78,486
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(10,335)	(18,810)
Payments to trusts for employee deferred compensation plans	(4,939)	(5,357)
Net cash flows used in investing activities	(15,274)	(24,167)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(80,687)	(40,182)
Cash dividends paid	(30,597)	(28,748)
Payments for notes payable and other indebtedness	(41)	(38)
Excess tax benefits from stock-based compensation	0	395
Proceeds from exercises of stock options	0	60
Net cash flows used in financing activities	(111,325)	(68,513)
Effect of exchange rate changes on cash and cash equivalents	3,041	3,736
Net decrease in cash and cash equivalents	(58)	(10,458)
Cash and cash equivalents at beginning of period	260,201	224,577
Cash and cash equivalents at end of period	260,143	214,119
Non-cash items:
Stock repurchases awaiting settlement	$ 2,298	$ 3,120

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Nature of Operations . Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting , OfficeTeam ® , Robert Half ® Technology , Robert Half ® Management Resources , Robert Half ® Legal , The Creative Group ® , and Protiviti ® . The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit, 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, 2016 , included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances have been eliminated. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of March 31, 2017 , 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 months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended 2017 2016 Advertising costs $ 11,471 $ 11,261

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements Stock Compensation. In March 2016, the Financial Accounting Standards Board ("FASB") issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance was effective for annual and interim periods beginning after December 15, 2016 and was adopted by the Company effective January 1, 2017. The adoption of this guidance did not have a material impact on the Company's financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the 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. 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 amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016 an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016 an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Based on our progress to date, the Company does not anticipate any significant changes to systems, processes, or controls, and no one area will be significantly impacted upon adoption. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements.

Other Current Assets

Other Current Assets	3 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Deposits in trusts for employee deferred compensation plans $ 252,446 $ 236,371 Other 82,914 84,434 Other current assets $ 335,360 $ 320,805

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consisted of the following (in thousands): March 31, 2017 December 31, 2016 Computer hardware $ 172,880 $ 170,746 Computer software 378,076 374,490 Furniture and equipment 99,805 100,472 Leasehold improvements 137,536 133,541 Other 10,241 9,993 Property and equipment, cost 798,538 789,242 Accumulated depreciation (640,756 ) (627,733 ) Property and equipment, net $ 157,782 $ 161,509

Accrued Payroll and Benefit Cos

Accrued Payroll and Benefit Costs	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Payroll and Benefit Costs	Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): March 31, 2017 December 31, 2016 Payroll and benefits $ 238,587 $ 243,301 Employee deferred compensation plans 257,545 252,349 Workers’ compensation 19,945 19,361 Payroll taxes 30,823 24,037 Accrued payroll and benefit costs $ 546,900 $ 539,048 Included in employee deferred compensation plans is the following (in thousands): March 31, 2017 December 31, 2016 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 83,628 $ 83,899

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
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 PAGA. On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Program. As of March 31, 2017 , the Company is authorized to repurchase, from time to time, up to 5.2 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the three months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended March 31, 2017 2016 Common stock repurchased (in shares) 1,121 682 Common stock repurchased $ 53,586 $ 28,777 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 repurchases related to employee stock plans made during the three months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended March 31, 2017 2016 Repurchases related to employee stock plans (in shares) 304 59 Repurchases related to employee stock plans $ 14,711 $ 2,590 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the three months ended March 31, 2017 and 2016 , is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity. Repurchases of shares and issuances of cash dividends are applied first to the extent of retained earnings and any remaining amounts are applied to capital surplus.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The calculation of net income per share for the three months ended March 31, 2017 and 2016 is reflected in the following table (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Net income $ 78,521 $ 83,416 Basic: Weighted average shares 125,537 129,281 Diluted: Weighted average shares 125,537 129,281 Dilutive effect of potential common shares 881 856 Diluted weighted average shares 126,418 130,137 Net income per share: Basic $ .63 $ .65 Diluted $ .62 $ .64

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2017
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 staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services segment provides business and technology risk consulting and internal audit services. The accounting policies of the segments are set forth in Note A—"Summary of Significant Accounting Policies" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . 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 ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Net service revenues Temporary and consultant staffing $ 987,606 $ 1,009,165 Permanent placement staffing 103,633 106,289 Risk consulting and internal audit services 196,131 187,171 $ 1,287,370 $ 1,302,625 Operating income Temporary and consultant staffing $ 90,371 $ 97,883 Permanent placement staffing 18,302 21,502 Risk consulting and internal audit services 16,906 14,513 125,579 133,898 Amortization of intangible assets 301 288 Interest income, net (223 ) (181 ) Income before income taxes $ 125,501 $ 133,791

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On May 3, 2017, the Company announced the following: Quarterly dividend per share $.24 Declaration date May 3, 2017 Record date May 25, 2017 Payment date June 15, 2017

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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, data, analytics, governance, risk and internal audit, and is a wholly-owned subsidiary of the Company. Revenues are predominantly derived from specialized staffing services. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation.
Basis of Presentation	Basis of Presentation. The unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). 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, 2016 , included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year.
Principles of Consolidation	Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances have been eliminated.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of March 31, 2017 , 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.
New Accounting Pronouncements	Recently Adopted Accounting Pronouncements Stock Compensation. In March 2016, the Financial Accounting Standards Board ("FASB") issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance was effective for annual and interim periods beginning after December 15, 2016 and was adopted by the Company effective January 1, 2017. The adoption of this guidance did not have a material impact on the Company's financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the 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. 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 amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016 an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016 an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Based on our progress to date, the Company does not anticipate any significant changes to systems, processes, or controls, and no one area will be significantly impacted upon adoption. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of evaluating the impact of adoption of this guidance on its financial statements. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements.
Commitments and Contingencies	Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.
Treasury Stock	The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the three months ended March 31, 2017 and 2016 , 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)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Advertising Costs	Advertising costs for the three months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended 2017 2016 Advertising costs $ 11,471 $ 11,261

Other Current Assets (Tables)

Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other current assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Deposits in trusts for employee deferred compensation plans $ 252,446 $ 236,371 Other 82,914 84,434 Other current assets $ 335,360 $ 320,805

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following (in thousands): March 31, 2017 December 31, 2016 Computer hardware $ 172,880 $ 170,746 Computer software 378,076 374,490 Furniture and equipment 99,805 100,472 Leasehold improvements 137,536 133,541 Other 10,241 9,993 Property and equipment, cost 798,538 789,242 Accumulated depreciation (640,756 ) (627,733 ) Property and equipment, net $ 157,782 $ 161,509

Accrued Payroll and Benefit C23

Accrued Payroll and Benefit Costs (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Payroll Costs and Retirement Obligations	Accrued payroll and benefit costs consisted of the following (in thousands): March 31, 2017 December 31, 2016 Payroll and benefits $ 238,587 $ 243,301 Employee deferred compensation plans 257,545 252,349 Workers’ compensation 19,945 19,361 Payroll taxes 30,823 24,037 Accrued payroll and benefit costs $ 546,900 $ 539,048
Employee Retirement Obligations	Included in employee deferred compensation plans is the following (in thousands): March 31, 2017 December 31, 2016 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 83,628 $ 83,899

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Number and Cost of Common Stock Shares Repurchased	The number and the cost of common stock shares repurchased during the three months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended March 31, 2017 2016 Common stock repurchased (in shares) 1,121 682 Common stock repurchased $ 53,586 $ 28,777
Number and Cost of Employee Stock Plan Repurchases	The number and the cost of repurchases related to employee stock plans made during the three months ended March 31, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended March 31, 2017 2016 Repurchases related to employee stock plans (in shares) 304 59 Repurchases related to employee stock plans $ 14,711 $ 2,590

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Calculation of Net Income Per Share	The calculation of net income per share for the three months ended March 31, 2017 and 2016 is reflected in the following table (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Net income $ 78,521 $ 83,416 Basic: Weighted average shares 125,537 129,281 Diluted: Weighted average shares 125,537 129,281 Dilutive effect of potential common shares 881 856 Diluted weighted average shares 126,418 130,137 Net income per share: Basic $ .63 $ .65 Diluted $ .62 $ .64

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2017
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 ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Net service revenues Temporary and consultant staffing $ 987,606 $ 1,009,165 Permanent placement staffing 103,633 106,289 Risk consulting and internal audit services 196,131 187,171 $ 1,287,370 $ 1,302,625 Operating income Temporary and consultant staffing $ 90,371 $ 97,883 Permanent placement staffing 18,302 21,502 Risk consulting and internal audit services 16,906 14,513 125,579 133,898 Amortization of intangible assets 301 288 Interest income, net (223 ) (181 ) Income before income taxes $ 125,501 $ 133,791

Subsequent Events (Tables)

Subsequent Events (Tables)	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	On May 3, 2017, the Company announced the following: Quarterly dividend per share $.24 Declaration date May 3, 2017 Record date May 25, 2017 Payment date June 15, 2017

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Advertising costs	$ 11,471	$ 11,261

Other Current Assets (Detail)

Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits in trusts for employee deferred compensation plans	$ 252,446	$ 236,371
Other	82,914	84,434
Other current assets	$ 335,360	$ 320,805

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Computer hardware	$ 172,880	$ 170,746
Computer software	378,076	374,490
Furniture and equipment	99,805	100,472
Leasehold improvements	137,536	133,541
Other	10,241	9,993
Property and equipment, cost	798,538	789,242
Accumulated depreciation	(640,756)	(627,733)
Property and equipment, net	$ 157,782	$ 161,509

Accrued Payroll and Benefit C31

Accrued Payroll and Benefit Costs (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Payroll and benefits	$ 238,587	$ 243,301
Employee deferred compensation plans	257,545	252,349
Workers’ compensation	19,945	19,361
Payroll taxes	30,823	24,037
Accrued payroll and benefit costs	546,900	539,048
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	$ 83,628	$ 83,899

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)	Apr. 23, 2010subsidiary
David Opalinski And James Mccabe
Loss Contingencies [Line Items]
Allegations loss	$ 0
Leonor Rodriguez
Loss Contingencies [Line Items]
Allegations loss	0
Staffing Managers Case
Loss Contingencies [Line Items]
Number of subsidiaries | subsidiary		1
Jessica Gentry
Loss Contingencies [Line Items]
Loss contingency	$ 0

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) shares in Millions	Mar. 31, 2017shares
Equity [Abstract]
Maximum number of shares authorized to be repurchased	5.2

Stockholders' Equity - Number a

Stockholders' Equity - Number and Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Common stock repurchased (in shares)	1,121	682
Common stock repurchased	$ 53,586	$ 28,777

Stockholders' Equity - Number35

Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Repurchases related to employee stock plans (in shares)	304	59
Repurchases related to employee stock plans	$ 14,711	$ 2,590

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
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 78,521	$ 83,416
Basic:
Weighted average shares (in shares)	125,537	129,281
Diluted:
Weighted average shares (in shares)	125,537	129,281
Dilutive effect of potential common shares (in shares)	881	856
Diluted weighted average shares (in shares)	126,418	130,137
Net income per share:
Basic (in usd per share)	$ 0.63	$ 0.65
Diluted (in usd per share)	$ 0.62	$ 0.64

Business Segments - Additional

Business Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	3

Business Segments - Reconciliat

Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Net service revenues	$ 1,287,370	$ 1,302,625
Operating income	125,579	133,898
Amortization of intangible assets	301	288
Interest income, net	(223)	(181)
Income before income taxes	125,501	133,791
Operating Segments | Temporary and consultant staffing
Segment Reporting Information [Line Items]
Net service revenues	987,606	1,009,165
Operating income	90,371	97,883
Operating Segments | Permanent placement staffing
Segment Reporting Information [Line Items]
Net service revenues	103,633	106,289
Operating income	18,302	21,502
Operating Segments | Risk consulting and internal audit services
Segment Reporting Information [Line Items]
Net service revenues	196,131	187,171
Operating income	$ 16,906	$ 14,513

Subsequent Events - Dividend An

Subsequent Events - Dividend Announced (Details) - $ / shares	1 Months Ended	3 Months Ended
	May 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Quarterly dividend per share (in usd per share)		$ 0.24	$ 0.22
Subsequent Event
Subsequent Event [Line Items]
Declaration date	May 3, 2017
Record date	May 25, 2017
Payment date	Jun. 15, 2017