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 |