Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHCARE SERVICES GROUP INC | |
Entity Central Index Key | 731,012 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 73,273 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 11,005 | $ 23,853 |
Marketable securities, at fair value | 70,384 | 67,730 |
Accounts and notes receivable, less allowance for doubtful accounts of $9,795 as of September 30, 2017 and $6,911 as of December 31, 2016 | 367,009 | 271,276 |
Inventories and supplies | 41,516 | 37,800 |
Prepaid expenses and other assets | 25,628 | 13,965 |
Total current assets | 515,542 | 414,624 |
Property and equipment, net | 13,499 | 13,455 |
Goodwill | 51,084 | 44,438 |
Other intangible assets, less accumulated amortization of $11,659 as of September 30, 2017 and $14,672 as of December 31, 2016 | 32,075 | 14,409 |
Notes receivable — long term portion | 11,495 | 7,531 |
Deferred compensation funding, at fair value | 27,387 | 24,119 |
Deferred income taxes | 9,196 | 9,822 |
Other noncurrent assets | 1,264 | 48 |
Total Assets | 661,542 | 528,446 |
Current liabilities: | ||
Accounts payable | 62,323 | 42,912 |
Accrued payroll, accrued and withheld payroll taxes | 48,786 | 22,303 |
Other accrued expenses | 3,665 | 4,397 |
Borrowings under line of credit | 25,000 | 0 |
Income taxes payable | 10,781 | 7,686 |
Accrued insurance claims | 24,827 | 23,573 |
Total current liabilities | 175,382 | 100,871 |
Accrued insurance claims — long term portion | 67,818 | 64,080 |
Deferred compensation liability | 27,886 | 24,653 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $.01 par value; 100,000 shares authorized; 74,791 and 74,204 shares issued, and 73,265 and 72,601 shares outstanding as of September 30, 2017 and December 31, 2016, respectively | 748 | 742 |
Additional paid-in capital | 241,008 | 217,664 |
Retained earnings | 157,678 | 130,940 |
Accumulated other comprehensive income (loss), net of taxes | 844 | (319) |
Common stock in treasury, at cost, 1,525 shares as of September 30, 2017 and 1,603 shares as of December 31, 2016 | (9,822) | (10,185) |
Total stockholders’ equity | 390,456 | 338,842 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 661,542 | $ 528,446 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 9,795 | $ 6,911 |
Accumulated amortization of other intangible assets | $ 11,659 | $ 14,672 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 74,791,000 | 74,204,000 |
Common stock outstanding (in shares) | 73,266,000 | 72,601,000 |
Common stock in treasury (in shares) | 1,525,000 | 1,603,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 491,355 | $ 392,734 | $ 1,366,721 | $ 1,164,097 |
Operating costs and expenses: | ||||
Costs of services provided | 426,924 | 336,340 | 1,179,816 | 998,595 |
Selling, general and administrative expense | 32,940 | 27,182 | 93,141 | 78,192 |
Other income, net: | ||||
Investment and interest | 1,439 | 1,359 | 4,523 | 2,548 |
Income before income taxes | 32,930 | 30,571 | 98,287 | 89,858 |
Income tax provision | 9,458 | 10,860 | 30,247 | 32,761 |
Net income | $ 23,472 | $ 19,711 | $ 68,040 | $ 57,097 |
Per share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.93 | $ 0.79 |
Diluted earnings per common share (in dollars per share) | $ 0.31 | $ 0.27 | $ 0.92 | $ 0.78 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 73,461 | 72,839 | 73,272 | 72,718 |
Diluted (in shares) | 74,538 | 73,592 | 74,252 | 73,435 |
Comprehensive income: | ||||
Net income | $ 23,472 | $ 19,711 | $ 68,040 | $ 57,097 |
Other comprehensive income: | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | 82 | (369) | 1,163 | 765 |
Total comprehensive income | $ 23,554 | $ 19,342 | $ 69,203 | $ 57,862 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash flows from operating activities: | |||
Net income | $ 68,040 | $ 57,097 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 6,342 | 5,632 | |
Bad debt provision | 4,000 | 3,200 | |
Deferred income tax expense | 0 | 2,748 | |
Stock-based compensation expense, net of tax benefit from equity compensation plans | [1] | (632) | 1,363 |
Amortization of premium on marketable securities | 929 | 1,053 | |
Unrealized gain on deferred compensation fund investments | (3,351) | (1,041) | |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | (103,697) | (54,954) | |
Inventories and supplies | (997) | (1,295) | |
Prepaid expenses and other assets | (11,658) | (5,279) | |
Deferred compensation funding | 83 | (941) | |
Accounts payable and other accrued expenses | (1,102) | (6,774) | |
Accrued payroll, accrued and withheld payroll taxes | 28,575 | 22,065 | |
Income taxes payable | [1] | 7,865 | 7,870 |
Accrued insurance claims | 4,992 | 4,870 | |
Deferred compensation liability | 3,733 | 2,284 | |
Net cash provided by operating activities | 3,122 | 37,898 | |
Cash flows from investing activities: | |||
Disposals of fixed assets | 264 | 177 | |
Additions to property and equipment | (3,962) | (3,908) | |
Purchases of marketable securities | (22,149) | (18,751) | |
Sales of marketable securities | 20,354 | 8,137 | |
Cash paid for acquisition | (4,584) | 0 | |
Net cash used in investing activities | (10,077) | (14,345) | |
Cash flows from financing activities: | |||
Dividends paid | (41,302) | (39,849) | |
Reissuance of treasury stock pursuant to Dividend Reinvestment Plan | 71 | 84 | |
Tax benefit from equity compensation plans | [1] | 0 | 1,750 |
Proceeds from the exercise of stock options | 10,338 | 5,600 | |
Net proceeds from short-term borrowings | 25,000 | 0 | |
Net cash used in financing activities | (5,893) | (32,415) | |
Net change in cash and cash equivalents | (12,848) | (8,862) | |
Cash and cash equivalents at beginning of the period | 23,853 | 33,189 | |
Cash and cash equivalents at end of the period | $ 11,005 | $ 24,327 | |
[1] | The Company adopted the provisions of ASU 2016-09 prospectively, and as such the amounts reflected for the nine months ended September 30, 2016 have not been adjusted. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), net of taxes | Retained Earnings | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 543 | |||||
Comprehensive income: | ||||||
Net income for the period | $ 57,097 | |||||
Unrealized gain on available-for-sale marketable securities, net of taxes | 765 | |||||
Total comprehensive income | 57,862 | |||||
Ending balance at Sep. 30, 2016 | 1,308 | |||||
Balance (in shares) at Dec. 31, 2016 | 74,204 | |||||
Beginning balance at Dec. 31, 2016 | 338,842 | $ 742 | $ 217,664 | (319) | $ 130,940 | $ (10,185) |
Comprehensive income: | ||||||
Net income for the period | 68,040 | 68,040 | ||||
Unrealized gain on available-for-sale marketable securities, net of taxes | 1,163 | 1,163 | ||||
Total comprehensive income | 69,203 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment (in shares) | 528 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 10,338 | $ 5 | 10,333 | |||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 3,773 | 3,773 | ||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 501 | 487 | 14 | |||
Shares issued pursuant to Employee Stock Plan | 2,091 | 1,752 | 339 | |||
Cash dividends | (41,302) | (41,302) | ||||
Shares issued pursuant to Dividend Reinvestment Plans | 71 | 61 | 10 | |||
Shares issued pursuant to acquisition (in shares) | 59 | |||||
Shares issued pursuant to acquisition | 2,501 | $ 1 | 2,500 | |||
Contingent shares issuable pursuant to acquisition | 4,438 | 4,438 | ||||
Balance (in shares) at Sep. 30, 2017 | 74,791 | |||||
Ending balance at Sep. 30, 2017 | $ 390,456 | $ 748 | $ 241,008 | $ 844 | $ 157,678 | $ (9,822) |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Description of Business and Significant Accounting Policies Nature of Operations Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although the Company does not directly participate in any government reimbursement programs, the Company’s clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. The Company provides services primarily pursuant to full service agreements with its clients. In such agreements, the Company is responsible for the day-to-day management of employees located at the clients’ facilities. The Company also provides services on the basis of management-only agreements for a limited number of clients. The agreements with clients typically provide for renewable one year service terms, cancelable by either party upon 30 to 90 days’ notice after the initial 60 to 120 day period. The Company is organized into two reportable segments: housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing the clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing the clients’ dietary departments which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meet residents’ dietary needs. Unaudited Interim Financial Data The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in the Company’s opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2016 has been derived from, and does not include, all of the disclosures contained in the financial statements for the year ended December 31, 2016 . These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for any future period. Certain amounts in the prior year financial statements have been reclassified to conform to current presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at the time of purchase, that are readily convertible into cash and have insignificant interest rate risk. Inventories and Supplies Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Inventories and supplies are stated at cost to approximate a first-in, first-out (FIFO) basis. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. Revenue Recognition Revenues from the Company’s service agreements with clients are recognized as services are performed. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within the Company’s financial statements based on a recognition and measurement process. Earnings per Common Share Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. Share-Based Compensation The Company estimates the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. Use of Estimates in Financial Statements In preparing financial statements in conformity with U.S. GAAP, estimates and assumptions are made that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, the Company’s allowance for doubtful accounts, accrued insurance claims, valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. Concentrations of Credit Risk The financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. The Company’s marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At September 30, 2017 and December 31, 2016 , substantially all of the Company’s cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. The Company’s clients are concentrated in the health care industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could be made which could directly impact the governmental reimbursement programs in which the clients participate. The full effect of any such programs would not be realized until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payments. The Company adopted the standard beginning January 1, 2017. The impact of adopting the standard includes the recognition of excess tax benefits related to share-based payments as a component of income tax expense, as opposed to additional paid-in capital; an amendment to the calculation of diluted earnings per share to exclude windfall tax benefits from assumed proceeds when calculating diluted shares outstanding; as well as accounting for forfeitures of share-based awards as they occur, as opposed to reserving for estimated forfeitures. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business . The guidance changes the definition of a business to assist entities in evaluating whether a set of transferred assets and activities constitutes a business under Topic 805. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which was subsequently amended and updated throughout 2015 and 2016. The standard provides guidance on revenue recognition, among other topics such as the accounting for compensation and costs to obtain a contract. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption is required for reporting periods beginning after December 15, 2017, with early adoption prohibited. The Company plans to adopt the standard beginning on January 1, 2018 utilizing the modified retrospective method. The Company has evaluated the impact of the adoption of this ASU by reviewing the nature and terms of existing contracts under the provisions of the new guidance and designing operational and process updates required for ongoing compliance. Management does not expect a material impact to the Company's accounting for the revenue earned related to its Housekeeping and Dietary department services. Management anticipates that the most significant impact of the new standard will relate to additional disclosure obligations. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company will adopt the new guidance as of January 1, 2019. Management is continuing to evaluate the expected impact of the requirements, however it is expected that the primary impact will relate to the capitalization of operating leases of office space, vehicles and equipment. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component Accumulated other comprehensive income consists of unrealized gains and losses from the Company’s available-for-sale marketable securities. The following table provides a summary of the changes in accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 : Unrealized Gains and Losses on Available-for-Sale Securities (1) Nine Months Ended September 30, 2017 2016 (in thousands) Accumulated other comprehensive income (loss) — beginning balance $ (319 ) $ 543 Other comprehensive income before reclassifications 1,162 909 Losses (gains) reclassified from other comprehensive income 1 (144 ) Net current period other comprehensive income (2) 1,163 765 Accumulated other comprehensive income — ending balance $ 844 $ 1,308 (1) All amounts are net of tax. (2) For the nine months ended September 30, 2017 and 2016 , these changes in other comprehensive income were net of tax effects of $0.6 million and $0.4 million respectively. Amounts reclassified from accumulated other comprehensive income (loss) represent realized gains or losses on the sale of the Company’s available-for-sale securities. Realized gains and losses are recorded pre-tax within “Other income - Investment and interest” in the Consolidated Statements of Comprehensive Income. Refer to Note 5 - Fair Value Measurements for further information. The table below shows the reclassification adjustments out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 : Amounts Reclassified from Accumulated Other Comprehensive Income 2017 2016 (in thousands) Three Months Ended September 30, Gains (losses) from the sale of available-for-sale securities $ 171 $ (17 ) Tax expense (benefit) $ (54 ) $ 8 Net gain (loss) reclassified from accumulated other comprehensive income $ 117 $ (9 ) Nine Months Ended September 30, Gains (losses) from the sale of available-for-sale securities $ (2 ) $ 226 Tax expense (benefit) $ 1 $ (82 ) Net gain (loss) reclassified from accumulated other comprehensive income $ (1 ) $ 144 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable asset, and is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred. The following table sets forth the amounts of property and equipment by each class of depreciable asset as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (in thousands) Housekeeping and Dietary equipment $ 22,057 $ 21,136 Computer hardware and software 12,381 11,750 Other (1) 988 1,133 Total property and equipment, at cost 35,426 34,019 Less accumulated depreciation 21,927 20,564 Total property and equipment, net $ 13,499 $ 13,455 (1) Includes furniture and fixtures, leasehold improvements and autos and trucks. Depreciation expense for each of the three months ended September 30, 2017 and 2016 was $1.1 million . Depreciation expense for the nine months ended September 30, 2017 and 2016 was $3.7 million and $3.5 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets of an acquired business. Goodwill is not amortized, but is evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. Goodwill by reportable operating segment, as described in Note 10 - Segment Information, was approximately $42.4 million and $8.7 million for Housekeeping and Dietary, respectively, as of September 30, 2017 . At December 31, 2016 , goodwill by reportable operating segment was $42.3 million and $2.1 million for Housekeeping and Dietary, respectively. The increase in goodwill is related to the acquisition of certain Dietary-related assets during 2017. Intangible Assets The Company’s intangible assets consist of customer relationships which were obtained through acquisitions and are recorded at their fair values at the date of acquisition. Intangible assets with determinable lives are amortized on a straight-line basis over their estimated useful lives. The customer relationships have a weighted-average amortization period of 9.9 years . As of September 30, 2017 , certain customer relationship intangible assets were fully amortized and the respective balances were written off. The increase from year-end is related to the acquisition of certain Dietary-related assets during 2017. The following table sets forth the estimated amortization expense for intangibles subject to amortization for the remainder of 2017 , the following five fiscal years and thereafter: Period/Year Total Amortization Expense (in thousands) October 1 to December 31, 2017 $ 1,116 2018 $ 4,363 2019 $ 4,165 2020 $ 4,165 2021 $ 4,165 2022 $ 4,165 Thereafter $ 9,858 Amortization expense for the three months ended September 30, 2017 and 2016 was $1.0 million and $0.6 million , respectively. Amortization expense for the nine months ended September 30, 2017 and 2016 was $2.7 million and $2.1 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s current assets (other than marketable securities and inventories) and current liabilities are financial instruments and most of these items are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. The Company’s financial assets that are measured at fair value on a recurring basis are its marketable securities and deferred compensation funding. The recorded values of all of the financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations. The Company’s marketable securities consist of tax-exempt municipal bonds, which are classified as available-for-sale and are reported at fair value. Unrealized gains and losses associated with these investments are included in other comprehensive income (net of tax) within the Consolidated Statements of Comprehensive Income. The fair value of these marketable securities is classified within Level 2 of the fair value hierarchy, as these securities are measured using quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable. Such valuations are determined by a third-party pricing service. For the three months ended September 30, 2017 and 2016 , the Company recorded unrealized gains of $82 thousand and unrealized losses of $0.4 million on marketable securities, respectively. For the nine months ended September 30, 2017 and 2016 , the Company recorded unrealized gains of $1.2 million and $0.8 million on marketable securities, respectively. For the three months ended September 30, 2017 and 2016 , the Company received total proceeds, less the amount of interest received, of $5.7 million and $3.0 million , respectively, from sales of available-for-sale municipal bonds. For the three months ended September 30, 2017 , these sales resulted in realized gains of $171 thousand which were recorded in “Other income, net – Investment and interest” in the Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each bond sold during the period. For the three months ended September 30, 2016 , there were $17 thousand in realized losses . For the nine months ended September 30, 2017 and 2016 , the Company received total proceeds, less the amount of interest received, of $20.2 million and $8.1 million , respectively, from sales of available-for-sale municipal bonds. For the nine months ended September 30, 2017 , these sales resulted in realized losses of $2 thousand which were recorded in “Other income, net – Investment and interest” in the Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each bond sold during the period. For the nine months ended September 30, 2016 , there were $226 thousand in realized gains . The investments under the funded deferred compensation plan are accounted for as trading securities and unrealized gains or losses are included in earnings. The fair value of these investments are determined based on quoted market prices (Level 1). The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investments as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Fair Value Measurement Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 70,384 $ 70,384 $ — $ 70,384 $ — Deferred compensation fund Money Market (1) $ 2,378 $ 2,378 $ — $ 2,378 $ — Balanced and Lifestyle 8,181 8,181 8,181 — — Large Cap Growth 7,227 7,227 7,227 — — Small Cap Growth 3,359 3,359 3,359 — — Fixed Income 3,038 3,038 3,038 — — International 1,471 1,471 1,471 — — Mid Cap Growth 1,733 1,733 1,733 — — Deferred compensation fund $ 27,387 $ 27,387 $ 25,009 $ 2,378 $ — As of December 31, 2016 Fair Value Measurement Using: Carrying Total Fair Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 67,730 $ 67,730 $ — $ 67,730 $ — Deferred compensation fund Money Market (1) $ 3,147 $ 3,147 $ — $ 3,147 $ — Balanced and Lifestyle 7,162 7,162 7,162 — — Large Cap Growth 5,583 5,583 5,583 — — Small Cap Growth 2,933 2,933 2,933 — — Fixed Income 2,752 2,752 2,752 — — International 1,132 1,132 1,132 — — Mid Cap Growth 1,410 1,410 1,410 — — Deferred compensation fund $ 24,119 $ 24,119 $ 20,972 $ 3,147 $ — (1) The fair value of the money market fund is based on the net asset value (“NAV”) of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-than-temporary Impairments (in thousands) September 30, 2017 Type of security: Municipal bonds — available-for-sale $ 69,085 $ 1,379 $ (80 ) $ 70,384 $ — Total debt securities $ 69,085 $ 1,379 $ (80 ) $ 70,384 $ — December 31, 2016 Type of security: Municipal bonds — available-for-sale $ 68,220 $ 178 $ (668 ) $ 67,730 $ — Total debt securities $ 68,220 $ 178 $ (668 ) $ 67,730 $ — The following table summarizes the contractual maturities of debt securities held at September 30, 2017 and December 31, 2016 , which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale Contractual maturity: September 30, 2017 December 31, 2016 (in thousands) Maturing in one year or less $ 1,403 $ 973 Maturing in second year through fifth year 23,879 28,671 Maturing in sixth year through tenth year 19,346 21,651 Maturing after ten years 25,756 16,435 Total debt securities $ 70,384 $ 67,730 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Stock-Based Compensation A summary of stock-based compensation expense for the nine months ended September 30, 2017 and 2016 is as follows: Nine Months Ended September 30, 2017 2016 (in thousands) Stock options $ 2,885 $ 2,399 Restricted stock and restricted stock units 888 412 Employee Stock Purchase Plan 365 302 Total pre-tax stock-based compensation expense charged against income (1) $ 4,138 $ 3,113 (1) Stock-based compensation expense is recorded in selling, general and administrative expense in the Company’s Consolidated Statements of Comprehensive Income. At September 30, 2017 , the unrecognized compensation cost related to unvested stock options and awards was $12.7 million . The weighted average period over which these awards will vest is approximately 3.0 years. 2012 Equity Incentive Plan The Company’s 2012 Equity Incentive Plan (the “Plan”) provides that current or prospective officers, employees, non-employee directors and advisors can receive share-based awards such as stock options, restricted stock, restricted stock units and other stock awards. The Plan seeks to promote the highest level of performance by providing an economic interest in the long-term success of the Company. As of September 30, 2017 , 3.4 million shares of common stock were reserved for issuance under the Plan, including 0.8 million shares available for future grant. No stock award will have a term in excess of ten years. All awards granted under the Plan become vested and exercisable ratably over a five year period on each yearly anniversary of the grant date. The Nominating, Compensation and Stock Option Committee of the Board of Directors is responsible for determining the terms of the grants in accordance with the Plan. Stock Options A summary of stock options outstanding under the Plan as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2016 2,615 $ 24.61 Granted 544 $ 39.38 Canceled (93 ) $ 33.66 Exercised (513 ) $ 20.39 September 30, 2017 2,553 $ 28.27 The weighted average grant-date fair value of stock options granted during the nine months ended September 30, 2017 and 2016 was $8.52 and $7.46 per common share, respectively. The total intrinsic value of options exercised during the nine months ended September 30, 2017 and 2016 was $13.3 million and $4.6 million , respectively. The fair value of stock option awards granted in 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions: Nine Months Ended 2017 2016 Risk-free interest rate 2.0 % 2.0 % Weighted average expected life (years) 5.8 years 5.8 years Expected volatility 25.1 % 26.0 % Dividend yield 1.9 % 2.0 % The following table summarizes other information about the stock options at September 30, 2017 : September 30, 2017 (in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 65,589 Weighted average remaining contractual life (years) 6.5 years Exercisable: Number of options 1,123 Weighted average exercise price $ 21.05 Aggregate intrinsic value $ 36,950 Weighted average remaining contractual life (years) 4.5 years Restricted Stock During the nine months ended September 30, 2017 , the Company did no t grant any restricted stock. During the nine months ended September 30, 2016 , the Company granted 44 thousand shares of restricted stock with a weighted average grant date fair value of $34.14 per share. Fair value is determined based on the market price of the shares on the date of grant. A summary of the outstanding restricted stock awards as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Shares Weighted Average Grant Date Fair Value (in thousands) December 31, 2016 74 $ 32.09 Granted — $ — Vested (18 ) $ 31.41 Forfeited — $ — September 30, 2017 56 $ 32.30 Restricted Stock Units During the nine months ended September 30, 2017 , the Company granted 88 thousand restricted stock units with a weighted average grant date fair value of $40.16 per unit. Fair value is determined based on the market price of the underlying shares on the date of grant. During the nine months ended September 30, 2016 , there were no grants of restricted stock units. A summary of the outstanding restricted stock units as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Units Weighted Average Grant Date Fair Value (in thousands) December 31, 2016 — $ — Granted 88 $ 40.16 Vested — $ — Forfeited — $ — September 30, 2017 88 $ 40.16 Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan ("ESPP") is currently available through 2021 to all eligible employees. All full-time and part-time employees who work an average of 20 hours per week and have completed two years of continuous service with the Company are eligible to participate. Annual offerings commence and terminate on the respective year’s first and last calendar day. Under the ESPP, the Company is authorized to issue up to 4.1 million shares of its common stock to its employees. Pursuant to such authorization, there are 2.3 million shares available for future grant at September 30, 2017 . The stock-based compensation expense associated with the options granted under the ESPP during the nine months ended September 30, 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions: Nine Months Ended September 30, 2017 2016 Risk-free interest rate 1.05% 0.58% Weighted average expected life (years) 1.0 1.0 Expected volatility 21.2% 19.7% Dividend yield 1.9% 2.0% Deferred Compensation Plan The Company offers a Supplemental Executive Retirement Plan (“SERP”) for certain key executives and employees. The SERP allows participants to defer a portion of their earned income on a pre-tax basis and as of the last day of each plan year, each participant will be credited with a match of a portion of their deferral in the form of the Company’s common stock based on the then-current market value. Under the SERP, the Company is authorized to issue 1.0 million shares of its common stock to its employees. Pursuant to such authorization, the Company has 0.4 million shares available for future grant at September 30, 2017 . At the time of issuance, such shares are accounted for at cost as treasury stock. The following table summarizes information about the SERP during the nine months ended September 30, 2017 and 2016 : Nine Months Ended September 30, 2017 2016 (in thousands) SERP expense (1) $ 460 $ 443 Unrealized gain recorded in SERP liability account $ 3,375 $ 1,114 (1) Both the SERP match and the deferrals are included in the selling, general and administrative caption in the consolidated statements of comprehensive income. |
Dividends
Dividends | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Dividends | Dividends During the nine months ended September 30, 2017 , the Company paid regular quarterly cash dividends totaling approximately $41.3 million as follows: Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 (in thousands, except per share amounts) Cash dividends paid per common share $ 0.18625 $ 0.18750 $ 0.18875 Total cash dividends paid $ 13,624 $ 13,750 $ 13,883 Record date February 17, 2017 May 19, 2017 August 18, 2017 Payment date March 24, 2017 June 23, 2017 September 22, 2017 Additionally, on October 17, 2017 , the Company’s Board of Directors declared a regular quarterly cash dividend of $0.19 per common share, which will be paid on December 22, 2017 , to shareholders of record as of the close of business on November 17, 2017 . Cash dividends declared for the periods presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cash dividends declared per common share $ 0.19000 $ 0.18500 $ 0.56625 $ 0.55125 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The 2017 estimated annual effective tax rate is expected to be approximately 31.9% . Due to the adoption of ASU 2016-09, the tax effects of option exercises or vested awards should be treated as discrete items in the reporting period in which they occur, and therefore cannot be considered in the calculation of the estimated annual effective tax rate. Excluding the impact of ASU 2016-09, the estimated annual effective tax rate would be 35.6% . Differences between the effective tax rate and the applicable U.S. federal statutory rate arise primarily from the effect of state and local income taxes, share-based compensation and tax credits available to the Company. The actual 2017 effective tax rate will likely vary from the estimate depending on the availability of tax credits and the exercises of stock options and vesting of share-based awards. The Company accounts for income taxes using the asset and liability method, which results in recognizing income tax expense based on the amount of income taxes payable or refundable for the current year. Additionally, the Company regularly evaluates the tax positions taken or expected to be taken resulting from financial statement recognition of certain items. Based on the evaluation, there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the tax years ended December 31, 2013 through 2016 (with regard to U.S. federal income tax returns) and December 31, 2012 through 2016 (with regard to various state and local income tax returns), the tax years which remain subject to examination by major tax jurisdictions as of September 30, 2017 . The Company may from time to time be assessed interest or penalties by taxing jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. When the Company has received an assessment for interest and/or penalties, it will be classified in the financial statements as selling, general and administrative expense. In addition, any interest or penalties relating to recognized uncertain tax positions would also be recorded in selling, general and administrative expense. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A director is a member of a law firm retained by the Company. In each of the nine months ended September 30, 2017 and 2016 , fees paid to such firm by the Company did not exceed $120,000 . Additionally, such fees did not exceed, in either period, 5% of such firm’s or the Company’s revenues. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company manages and evaluates its operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve the same client base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to discrete service agreements, specific to each reportable segment. The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and the information in the consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level using other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized in the consolidated financial statements. In addition, most corporate expenses such as corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not allocated to the operating segments. There are also allocations for workers’ compensation and general liability expense within the operating segments that differ from the actual expense recorded by the Company under U.S. GAAP. Segment amounts disclosed are prior to elimination entries made in consolidation. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Revenues Housekeeping $ 247,395 $ 239,584 $ 733,737 $ 716,154 Dietary 243,960 153,150 632,984 447,943 Total $ 491,355 $ 392,734 $ 1,366,721 $ 1,164,097 Income before income taxes Housekeeping $ 26,848 $ 23,645 $ 71,524 $ 68,966 Dietary 11,366 7,884 34,733 26,103 Corporate and eliminations (1) (5,284 ) (958 ) (7,970 ) (5,211 ) Total $ 32,930 $ 30,571 $ 98,287 $ 89,858 (1) Primarily represents corporate office costs and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic and diluted earnings per common share are computed by dividing net income by the weighted-average number of basic and diluted common shares outstanding, respectively. The weighted-average number of diluted common shares includes the impact of dilutive securities, including outstanding stock options and unvested restricted stock and restricted stock units. The table below reconciles the weighted-average basic and diluted common shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Weighted average number of common shares outstanding - basic 73,461 72,839 73,272 72,718 Effect of dilutive securities (1) 1,077 753 980 717 Weighted average number of common shares outstanding - diluted 74,538 73,592 74,252 73,435 (1) Certain outstanding stock option awards are anti-dilutive and were therefore excluded from the calculation of the weighted average number of diluted common shares outstanding. During the three months ended September 30, 2017 , there were no anti-dilutive stock options excluded and during the nine months ended September 30, 2017 , options to purchase 0.5 million shares having a weighted average exercise price of $39.38 per share were excluded. During the three and nine months ended September 30, 2016 , options to purchase 0.5 million shares having a weighted average exercise price of $34.14 per share were excluded. |
Other Contingencies
Other Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Contingencies | Other Contingencies Line of Credit At September 30, 2017 , the Company had a $300 million bank line of credit on which to draw for general corporate purposes. Amounts drawn under the line of credit are payable upon demand and at September 30, 2017 , there were $25.0 million in borrowings under the line of credit. The line of credit requires the Company to satisfy one financial covenant, with which the Company is in compliance as of September 30, 2017 and expects to remain in compliance. The line of credit expires on December 18, 2018 . At September 30, 2017 , the Company also had outstanding $74.2 million in irrevocable standby letters of credit, which relate to payment obligations under the Company's insurance programs. In connection with the issuance of the letters of credit, the amount available under the line of credit was reduced by $74.2 million to $200.8 million at September 30, 2017 . The letters of credit were increased to $77.6 million on October 2, 2017 . Tax Jurisdictions and Matters The Company provides services throughout the continental United States and is subject to numerous state and local taxing jurisdictions. In the ordinary course of business, a jurisdiction may contest the Company’s reporting positions with respect to the application of its tax code to the Company’s services, which could result in additional tax liabilities. The Company has tax matters with various taxing authorities. Because of the uncertainties related to both the probable outcomes and amount of probable assessments due, the Company is unable to make a reasonable estimate of a liability. The Company does not expect the resolution of any of these matters, taken individually or in the aggregate, to have a material adverse effect on the consolidated financial position or results of operations based on the Company’s best estimate of the outcomes of such matters. Legal Proceedings The Company is subject to various claims and legal actions in the ordinary course of business. Some of these matters include payroll and employee-related matters and examinations by governmental agencies. As the Company becomes aware of such claims and legal actions, the Company records accruals for any exposures that are probable and estimable. If adverse outcomes of such claims and legal actions are reasonably possible, Management assesses materiality and provides financial disclosure, as appropriate. The Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding or governmental examination that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. Government Regulations The Company’s clients are concentrated in the health care industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or additional changes in existing regulations could directly impact the governmental reimbursement programs in which the clients participate. The full effect of any such programs would not be realized until these laws are fully implemented and government agencies issue applicable regulations or guidance. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated all subsequent events through the filing date of this Form 10-Q. There were no events or transactions occurring during this subsequent reporting period which require recognition or additional disclosure in these financial statements. |
Description of Business and S20
Description of Business and Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although the Company does not directly participate in any government reimbursement programs, the Company’s clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. The Company provides services primarily pursuant to full service agreements with its clients. In such agreements, the Company is responsible for the day-to-day management of employees located at the clients’ facilities. The Company also provides services on the basis of management-only agreements for a limited number of clients. The agreements with clients typically provide for renewable one year service terms, cancelable by either party upon 30 to 90 days’ notice after the initial 60 to 120 day period. The Company is organized into two reportable segments: housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing the clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing the clients’ dietary departments which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meet residents’ dietary needs. |
Unaudited Interim Financial Data | The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in the Company’s opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2016 has been derived from, and does not include, all of the disclosures contained in the financial statements for the year ended December 31, 2016 . These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for any future period. Certain amounts in the prior year financial statements have been reclassified to conform to current presentation. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at the time of purchase, that are readily convertible into cash and have insignificant interest rate risk. |
Inventories and Supplies | Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Inventories and supplies are stated at cost to approximate a first-in, first-out (FIFO) basis. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. |
Revenue Recognition | Revenues from the Company’s service agreements with clients are recognized as services are performed. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within the Company’s financial statements based on a recognition and measurement process. |
Earnings per Common Share | Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. |
Share-Based Compensation | The Company estimates the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. |
Use of Estimates in Financial Statements | In preparing financial statements in conformity with U.S. GAAP, estimates and assumptions are made that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, the Company’s allowance for doubtful accounts, accrued insurance claims, valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. |
Concentrations of Credit Risk | The financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. The Company’s marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At September 30, 2017 and December 31, 2016 , substantially all of the Company’s cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. The Company’s clients are concentrated in the health care industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could be made which could directly impact the governmental reimbursement programs in which the clients participate. The full effect of any such programs would not be realized until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. |
Recent Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is intended to simplify several aspects of the accounting for share-based payments. The Company adopted the standard beginning January 1, 2017. The impact of adopting the standard includes the recognition of excess tax benefits related to share-based payments as a component of income tax expense, as opposed to additional paid-in capital; an amendment to the calculation of diluted earnings per share to exclude windfall tax benefits from assumed proceeds when calculating diluted shares outstanding; as well as accounting for forfeitures of share-based awards as they occur, as opposed to reserving for estimated forfeitures. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business . The guidance changes the definition of a business to assist entities in evaluating whether a set of transferred assets and activities constitutes a business under Topic 805. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company plans to adopt the standard effective January 1, 2018. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which was subsequently amended and updated throughout 2015 and 2016. The standard provides guidance on revenue recognition, among other topics such as the accounting for compensation and costs to obtain a contract. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption is required for reporting periods beginning after December 15, 2017, with early adoption prohibited. The Company plans to adopt the standard beginning on January 1, 2018 utilizing the modified retrospective method. The Company has evaluated the impact of the adoption of this ASU by reviewing the nature and terms of existing contracts under the provisions of the new guidance and designing operational and process updates required for ongoing compliance. Management does not expect a material impact to the Company's accounting for the revenue earned related to its Housekeeping and Dietary department services. Management anticipates that the most significant impact of the new standard will relate to additional disclosure obligations. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires lessees to recognize assets and liabilities on their balance sheet related to the rights and obligations created by most leases, while continuing to recognize expenses on their income statements over the lease term. It will also require disclosures designed to give financial statement users information regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company will adopt the new guidance as of January 1, 2019. Management is continuing to evaluate the expected impact of the requirements, however it is expected that the primary impact will relate to the capitalization of operating leases of office space, vehicles and equipment. |
Reportable Operating Segments | The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and the information in the consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level using other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized in the consolidated financial statements. In addition, most corporate expenses such as corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not allocated to the operating segments. There are also allocations for workers’ compensation and general liability expense within the operating segments that differ from the actual expense recorded by the Company under U.S. GAAP. Segment amounts disclosed are prior to elimination entries made in consolidation. |
Changes in Accumulated Other 21
Changes in Accumulated Other Comprehensive Income by Component (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table provides a summary of the changes in accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016 : Unrealized Gains and Losses on Available-for-Sale Securities (1) Nine Months Ended September 30, 2017 2016 (in thousands) Accumulated other comprehensive income (loss) — beginning balance $ (319 ) $ 543 Other comprehensive income before reclassifications 1,162 909 Losses (gains) reclassified from other comprehensive income 1 (144 ) Net current period other comprehensive income (2) 1,163 765 Accumulated other comprehensive income — ending balance $ 844 $ 1,308 (1) All amounts are net of tax. (2) For the nine months ended September 30, 2017 and 2016 , these changes in other comprehensive income were net of tax effects of $0.6 million and $0.4 million respectively. |
Reclassification out of Accumulated Other Comprehensive Income | The table below shows the reclassification adjustments out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 : Amounts Reclassified from Accumulated Other Comprehensive Income 2017 2016 (in thousands) Three Months Ended September 30, Gains (losses) from the sale of available-for-sale securities $ 171 $ (17 ) Tax expense (benefit) $ (54 ) $ 8 Net gain (loss) reclassified from accumulated other comprehensive income $ 117 $ (9 ) Nine Months Ended September 30, Gains (losses) from the sale of available-for-sale securities $ (2 ) $ 226 Tax expense (benefit) $ 1 $ (82 ) Net gain (loss) reclassified from accumulated other comprehensive income $ (1 ) $ 144 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table sets forth the amounts of property and equipment by each class of depreciable asset as of September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 (in thousands) Housekeeping and Dietary equipment $ 22,057 $ 21,136 Computer hardware and software 12,381 11,750 Other (1) 988 1,133 Total property and equipment, at cost 35,426 34,019 Less accumulated depreciation 21,927 20,564 Total property and equipment, net $ 13,499 $ 13,455 (1) Includes furniture and fixtures, leasehold improvements and autos and trucks. |
Goodwill and Other Intangible23
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense For Intangibles Subject To Amortization | The following table sets forth the estimated amortization expense for intangibles subject to amortization for the remainder of 2017 , the following five fiscal years and thereafter: Period/Year Total Amortization Expense (in thousands) October 1 to December 31, 2017 $ 1,116 2018 $ 4,363 2019 $ 4,165 2020 $ 4,165 2021 $ 4,165 2022 $ 4,165 Thereafter $ 9,858 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investments as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 Fair Value Measurement Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 70,384 $ 70,384 $ — $ 70,384 $ — Deferred compensation fund Money Market (1) $ 2,378 $ 2,378 $ — $ 2,378 $ — Balanced and Lifestyle 8,181 8,181 8,181 — — Large Cap Growth 7,227 7,227 7,227 — — Small Cap Growth 3,359 3,359 3,359 — — Fixed Income 3,038 3,038 3,038 — — International 1,471 1,471 1,471 — — Mid Cap Growth 1,733 1,733 1,733 — — Deferred compensation fund $ 27,387 $ 27,387 $ 25,009 $ 2,378 $ — As of December 31, 2016 Fair Value Measurement Using: Carrying Total Fair Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 67,730 $ 67,730 $ — $ 67,730 $ — Deferred compensation fund Money Market (1) $ 3,147 $ 3,147 $ — $ 3,147 $ — Balanced and Lifestyle 7,162 7,162 7,162 — — Large Cap Growth 5,583 5,583 5,583 — — Small Cap Growth 2,933 2,933 2,933 — — Fixed Income 2,752 2,752 2,752 — — International 1,132 1,132 1,132 — — Mid Cap Growth 1,410 1,410 1,410 — — Deferred compensation fund $ 24,119 $ 24,119 $ 20,972 $ 3,147 $ — (1) The fair value of the money market fund is based on the net asset value (“NAV”) of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment. |
Marketable Debt Securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-than-temporary Impairments (in thousands) September 30, 2017 Type of security: Municipal bonds — available-for-sale $ 69,085 $ 1,379 $ (80 ) $ 70,384 $ — Total debt securities $ 69,085 $ 1,379 $ (80 ) $ 70,384 $ — December 31, 2016 Type of security: Municipal bonds — available-for-sale $ 68,220 $ 178 $ (668 ) $ 67,730 $ — Total debt securities $ 68,220 $ 178 $ (668 ) $ 67,730 $ — |
Contractual Maturities of Available for Sale Investments | The following table summarizes the contractual maturities of debt securities held at September 30, 2017 and December 31, 2016 , which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale Contractual maturity: September 30, 2017 December 31, 2016 (in thousands) Maturing in one year or less $ 1,403 $ 973 Maturing in second year through fifth year 23,879 28,671 Maturing in sixth year through tenth year 19,346 21,651 Maturing after ten years 25,756 16,435 Total debt securities $ 70,384 $ 67,730 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | A summary of stock-based compensation expense for the nine months ended September 30, 2017 and 2016 is as follows: Nine Months Ended September 30, 2017 2016 (in thousands) Stock options $ 2,885 $ 2,399 Restricted stock and restricted stock units 888 412 Employee Stock Purchase Plan 365 302 Total pre-tax stock-based compensation expense charged against income (1) $ 4,138 $ 3,113 (1) Stock-based compensation expense is recorded in selling, general and administrative expense in the Company’s Consolidated Statements of Comprehensive Income. |
Summary of Other Information of Stock Option Plans | A summary of stock options outstanding under the Plan as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2016 2,615 $ 24.61 Granted 544 $ 39.38 Canceled (93 ) $ 33.66 Exercised (513 ) $ 20.39 September 30, 2017 2,553 $ 28.27 |
Assumption For Fair Value of Options Granted | The fair value of stock option awards granted in 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions: Nine Months Ended 2017 2016 Risk-free interest rate 2.0 % 2.0 % Weighted average expected life (years) 5.8 years 5.8 years Expected volatility 25.1 % 26.0 % Dividend yield 1.9 % 2.0 % |
Summarized Information of Stock Options Outstanding | The following table summarizes other information about the stock options at September 30, 2017 : September 30, 2017 (in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 65,589 Weighted average remaining contractual life (years) 6.5 years Exercisable: Number of options 1,123 Weighted average exercise price $ 21.05 Aggregate intrinsic value $ 36,950 Weighted average remaining contractual life (years) 4.5 years |
Schedule of Restricted Stock Outstanding Stock-based Compensation | A summary of the outstanding restricted stock awards as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Shares Weighted Average Grant Date Fair Value (in thousands) December 31, 2016 74 $ 32.09 Granted — $ — Vested (18 ) $ 31.41 Forfeited — $ — September 30, 2017 56 $ 32.30 A summary of the outstanding restricted stock units as of December 31, 2016 and changes during the nine months ended September 30, 2017 is as follows: Units Weighted Average Grant Date Fair Value (in thousands) December 31, 2016 — $ — Granted 88 $ 40.16 Vested — $ — Forfeited — $ — September 30, 2017 88 $ 40.16 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The stock-based compensation expense associated with the options granted under the ESPP during the nine months ended September 30, 2017 and 2016 was estimated on the date of grant using the Black-Scholes option valuation model using the following assumptions: Nine Months Ended September 30, 2017 2016 Risk-free interest rate 1.05% 0.58% Weighted average expected life (years) 1.0 1.0 Expected volatility 21.2% 19.7% Dividend yield 1.9% 2.0% |
Schedule of Deferred Compensation Arrangement with Individual, Share-based Payments | The following table summarizes information about the SERP during the nine months ended September 30, 2017 and 2016 : Nine Months Ended September 30, 2017 2016 (in thousands) SERP expense (1) $ 460 $ 443 Unrealized gain recorded in SERP liability account $ 3,375 $ 1,114 (1) Both the SERP match and the deferrals are included in the selling, general and administrative caption in the consolidated statements of comprehensive income. |
Dividends (Tables)
Dividends (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Dividends Payable | During the nine months ended September 30, 2017 , the Company paid regular quarterly cash dividends totaling approximately $41.3 million as follows: Quarter Ended March 31, 2017 June 30, 2017 September 30, 2017 (in thousands, except per share amounts) Cash dividends paid per common share $ 0.18625 $ 0.18750 $ 0.18875 Total cash dividends paid $ 13,624 $ 13,750 $ 13,883 Record date February 17, 2017 May 19, 2017 August 18, 2017 Payment date March 24, 2017 June 23, 2017 September 22, 2017 |
Schedule of Dividends Payable on Outstanding Weighted Average Number of Basic Common Shares | Cash dividends declared for the periods presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cash dividends declared per common share $ 0.19000 $ 0.18500 $ 0.56625 $ 0.55125 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Information of Reportable Segments | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Revenues Housekeeping $ 247,395 $ 239,584 $ 733,737 $ 716,154 Dietary 243,960 153,150 632,984 447,943 Total $ 491,355 $ 392,734 $ 1,366,721 $ 1,164,097 Income before income taxes Housekeeping $ 26,848 $ 23,645 $ 71,524 $ 68,966 Dietary 11,366 7,884 34,733 26,103 Corporate and eliminations (1) (5,284 ) (958 ) (7,970 ) (5,211 ) Total $ 32,930 $ 30,571 $ 98,287 $ 89,858 (1) Primarily represents corporate office costs and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below reconciles the weighted-average basic and diluted common shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Weighted average number of common shares outstanding - basic 73,461 72,839 73,272 72,718 Effect of dilutive securities (1) 1,077 753 980 717 Weighted average number of common shares outstanding - diluted 74,538 73,592 74,252 73,435 (1) Certain outstanding stock option awards are anti-dilutive and were therefore excluded from the calculation of the weighted average number of diluted common shares outstanding. During the three months ended September 30, 2017 , there were no anti-dilutive stock options excluded and during the nine months ended September 30, 2017 , options to purchase 0.5 million shares having a weighted average exercise price of $39.38 per share were excluded. During the three and nine months ended September 30, 2016 , options to purchase 0.5 million shares having a weighted average exercise price of $34.14 per share were excluded. |
Description of Business and S29
Description of Business and Significant Accounting Policies (Details) | 9 Months Ended | |
Sep. 30, 2017financial_institutionsegment | Dec. 31, 2016financial_institution | |
Schedule of Accounting Policies [Line Items] | ||
Service term | 1 year | |
Number of reportable segments | segment | 2 | |
Amortization period of inventories and supplies | 24 months | |
Number of financial institutions holding cash and cash equivalents and marketable securities | financial_institution | 1 | 1 |
Minimum | ||
Schedule of Accounting Policies [Line Items] | ||
Days to notify cancellation of service | 30 days | |
Initial period of service term | 60 days | |
Maximum | ||
Schedule of Accounting Policies [Line Items] | ||
Days to notify cancellation of service | 90 days | |
Initial period of service term | 120 days |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Income by Component - Summary of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated other comprehensive income | ||
Beginning balance | $ 338,842 | |
Other comprehensive income before reclassifications | 1,162 | $ 909 |
Losses (gains) reclassified from other comprehensive income | 1 | (144) |
Net current period change in other comprehensive income | 1,163 | 765 |
Ending balance | 390,456 | |
Available-for-sale securities, tax | 600 | 400 |
Accumulated Other Comprehensive Income (Loss), net of taxes | ||
Accumulated other comprehensive income | ||
Beginning balance | (319) | 543 |
Ending balance | $ 844 | $ 1,308 |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Income by Component - Reclassification Adjustments Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax expense (benefit) | $ 9,458 | $ 10,860 | $ 30,247 | $ 32,761 |
Net income | 23,472 | 19,711 | 68,040 | 57,097 |
Realized Gains (Losses) on Sale of Available-for-sale Securities | Amounts Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains (losses) from the sale of available-for-sale securities | 171 | (17) | (2) | 226 |
Tax expense (benefit) | (54) | 8 | 1 | (82) |
Net income | $ 117 | $ (9) | $ (1) | $ 144 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, at cost | $ 35,426 | $ 35,426 | $ 34,019 | ||
Less accumulated depreciation | 21,927 | 21,927 | 20,564 | ||
Total property and equipment, net | 13,499 | 13,499 | 13,455 | ||
Depreciation | 1,100 | $ 1,100 | 3,700 | $ 3,500 | |
Housekeeping and Dietary equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, at cost | 22,057 | 22,057 | 21,136 | ||
Computer hardware and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, at cost | 12,381 | 12,381 | 11,750 | ||
Other | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, at cost | $ 988 | $ 988 | $ 1,133 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Goodwill | $ 51,084 | $ 51,084 | $ 44,438 | ||
Amortization expense | 1,000 | $ 600 | $ 2,700 | $ 2,100 | |
Customer Relationships | |||||
Goodwill [Line Items] | |||||
Weighted-average amortization period of finite-lived intangible assets | 9 years 11 months | ||||
Housekeeping Segment | |||||
Goodwill [Line Items] | |||||
Goodwill | 42,400 | $ 42,400 | 42,300 | ||
Dietary Segment | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 8,700 | $ 8,700 | $ 2,100 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets - Estimated Amortization Expense For Intangibles Subject To Amortization (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
October 1 to December 31, 2017 | $ 1,116 |
2,018 | 4,363 |
2,019 | 4,165 |
2,020 | 4,165 |
2,021 | 4,165 |
2,022 | 4,165 |
Thereafter | $ 9,858 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | $ 82 | $ (369) | $ 1,163 | $ 765 |
Proceeds from available for sale municipal bonds | 5,700 | 3,000 | 20,200 | 8,100 |
Realized gains (losses) from the sale of available for sale securities | $ 171 | $ (17) | $ (2) | $ 226 |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities and Deferred Compensation Fund Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 70,384 | $ 67,730 |
Deferred compensation fund | 27,387 | 24,119 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 25,009 | 20,972 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,378 | 3,147 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 27,387 | 24,119 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 27,387 | 24,119 |
Municipal bonds — available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 70,384 | 67,730 |
Municipal bonds — available-for-sale | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available-for-sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 70,384 | 67,730 |
Municipal bonds — available-for-sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available-for-sale | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 70,384 | 67,730 |
Municipal bonds — available-for-sale | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 70,384 | 67,730 |
Money Market | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Money Market | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,378 | 3,147 |
Money Market | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Money Market | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,378 | 3,147 |
Money Market | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,378 | 3,147 |
Balanced and Lifestyle | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 8,181 | 7,162 |
Balanced and Lifestyle | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Balanced and Lifestyle | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Balanced and Lifestyle | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 8,181 | 7,162 |
Balanced and Lifestyle | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 8,181 | 7,162 |
Large Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,227 | 5,583 |
Large Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Large Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Large Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,227 | 5,583 |
Large Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 7,227 | 5,583 |
Small Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,359 | 2,933 |
Small Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Small Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Small Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,359 | 2,933 |
Small Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,359 | 2,933 |
Fixed Income | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,038 | 2,752 |
Fixed Income | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Fixed Income | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Fixed Income | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,038 | 2,752 |
Fixed Income | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 3,038 | 2,752 |
International | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,471 | 1,132 |
International | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
International | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
International | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,471 | 1,132 |
International | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,471 | 1,132 |
Mid Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,733 | 1,410 |
Mid Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Mid Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Mid Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 1,733 | 1,410 |
Mid Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | $ 1,733 | $ 1,410 |
Fair Value Measurements - Mar37
Fair Value Measurements - Marketable Debt Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | $ 69,085 | $ 68,220 |
Gross Unrealized Gains | 1,379 | 178 |
Gross Unrealized Losses | (80) | (668) |
Estimated Fair Value | 70,384 | 67,730 |
Other-than-temporary Impairments | 0 | 0 |
Municipal bonds — available-for-sale | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | 69,085 | 68,220 |
Gross Unrealized Gains | 1,379 | 178 |
Gross Unrealized Losses | (80) | (668) |
Estimated Fair Value | 70,384 | 67,730 |
Other-than-temporary Impairments | $ 0 | $ 0 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Maturing in one year or less | $ 1,403 | $ 973 |
Maturing in second year through fifth year | 23,879 | 28,671 |
Maturing in sixth year through tenth year | 19,346 | 21,651 |
Maturing after ten years | 25,756 | 16,435 |
Total debt securities | $ 70,384 | $ 67,730 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | $ 4,138 | $ 3,113 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 2,885 | 2,399 |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 888 | 412 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | $ 365 | $ 302 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 12.7 | |
Period of expense of unrecognized compensation cost, years | 3 years | |
Common stock reserved for future issuance (in shares) | 3,400,000 | |
Shares available for future grant (in shares) | 800,000 | |
Maximum term of grants | 10 years | |
Options vested and exercisable, period | 5 years | |
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 8.52 | $ 7.46 |
Aggregate intrinsic value of stock options exercised | $ 13.3 | $ 4.6 |
Supplemental Employee Retirement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized for issuance (in shares) | 1,000,000 | |
Remaining shares authorized for issuance (in shares) | 400,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | 0 | 44,000 |
Weighted average grant date fair value of restricted stock granted (in dollars per share) | $ 0 | $ 34.14 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | 88,000 | 0 |
Weighted average grant date fair value of restricted stock granted (in dollars per share) | $ 40.16 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant (in shares) | 2,300,000 | |
Average weekly hours of work | 20 hours | |
Requisite service period for plan participation eligibility | 2 years | |
Stock options authorized to issue to employees (in shares) | 4,100,000 |
Stock-Based Compensation - Su41
Stock-Based Compensation - Summary of Stock Options Outstanding (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Shares | |
December 31, 2016 (in shares) | shares | 2,615 |
Granted (in shares) | shares | 544 |
Canceled (in shares) | shares | (93) |
Exercised (in shares) | shares | (513) |
September 30, 2017 (in shares) | shares | 2,553 |
Weighted Average Exercise Price | |
December 31, 2016 (in dollars per share) | $ / shares | $ 24.61 |
Granted (in dollars per share) | $ / shares | 39.38 |
Canceled (in dollars per share) | $ / shares | 33.66 |
Exercised (in dollars per share) | $ / shares | 20.39 |
September 30, 2017 (in dollars per share) | $ / shares | $ 28.27 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for Fair Value of Options Granted (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected life (years) | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 25.10% | 26.00% |
Dividend yield | 1.90% | 2.00% |
Stock-Based Compensation - Su43
Stock-Based Compensation - Summarized Information About Stock Awards (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Outstanding: | |
Aggregate intrinsic value | $ 65,589 |
Weighted average remaining contractual life (years) | 6 years 6 months |
Exercisable: | |
Number of shares (in shares) | shares | 1,123 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 21.05 |
Aggregate intrinsic value | $ 36,950 |
Weighted average remaining contractual life (years) | 4 years 6 months |
Stock-Based Compensation - Su44
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Stock | ||
Shares | ||
December 31, 2016 (in shares) | 74,000 | |
Granted (in shares) | 0 | 44,000 |
Vested (in shares) | (18,000) | |
Forfeited (in shares) | 0 | |
September 30, 2017 (in shares) | 56,000 | |
Weighted Average Grant Date Fair Value | ||
December 31, 2016 (in dollars per share) | $ 32.09 | |
Granted (in dollars per share) | 0 | $ 34.14 |
Vested (in dollars per share) | 31.41 | |
Forfeited (in dollars per share) | 0 | |
September 30, 2017 (in dollars per share) | $ 32.30 | |
Restricted Stock Units (RSUs) | ||
Shares | ||
December 31, 2016 (in shares) | 0 | |
Granted (in shares) | 88,000 | 0 |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
September 30, 2017 (in shares) | 88,000 | |
Weighted Average Grant Date Fair Value | ||
December 31, 2016 (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 40.16 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
September 30, 2017 (in dollars per share) | $ 40.16 |
Stock-Based Compensation - As45
Stock-Based Compensation - Assumptions For Employee Stock Purchase Plan (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.00% | 2.00% |
Weighted average expected life (years) | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 25.10% | 26.00% |
Dividend yield | 1.90% | 2.00% |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.05% | 0.58% |
Weighted average expected life (years) | 1 year | 1 year |
Expected volatility | 21.20% | 19.70% |
Dividend yield | 1.90% | 2.00% |
Stock-Based Compensation - Defe
Stock-Based Compensation - Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | $ 4,138 | $ 3,113 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | 460 | 443 |
Unrealized gain recorded in SERP liability account | $ 3,375 | $ 1,114 |
Dividends - Additional Informat
Dividends - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 17, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Equity [Abstract] | |||||||
Dividends paid | $ 13,883 | $ 13,750 | $ 13,624 | $ 41,302 | $ 39,849 | ||
Subsequent Event [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.19000 | $ 0.18500 | $ 0.56625 | $ 0.55125 | |||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.19000 |
Dividends - Schedule of Dividen
Dividends - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | |||||
Cash dividends paid per common share (in dollars per share) | $ 0.18875 | $ 0.18750 | $ 0.18625 | ||
Total cash dividends paid | $ 13,883 | $ 13,750 | $ 13,624 | $ 41,302 | $ 39,849 |
Dividends - Cash Dividends per
Dividends - Cash Dividends per Common Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.19000 | $ 0.18500 | $ 0.56625 | $ 0.55125 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
Subsequent Event [Line Items] | ||
Unrecognized tax benefits | $ 0 | |
Forecast | ||
Subsequent Event [Line Items] | ||
Effective tax rate | 31.90% | |
Effective tax rate, excluding impact of ASU 2016-09 | 35.60% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transactions [Abstract] | ||
Fees paid to related party firm (less than) | $ 120 | $ 120 |
Percentage of fee paid to related party in relation to related party's total revenue (less than) | 5.00% | 5.00% |
Segment Information - Schedule
Segment Information - Schedule of Information of Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 491,355 | $ 392,734 | $ 1,366,721 | $ 1,164,097 |
Income before income taxes | 32,930 | 30,571 | 98,287 | 89,858 |
Housekeeping | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 247,395 | 239,584 | 733,737 | 716,154 |
Dietary | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 243,960 | 153,150 | 632,984 | 447,943 |
Operating Segments | Housekeeping | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | 26,848 | 23,645 | 71,524 | 68,966 |
Operating Segments | Dietary | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | 11,366 | 7,884 | 34,733 | 26,103 |
Corporate and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Income before income taxes | $ (5,284) | $ (958) | $ (7,970) | $ (5,211) |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of common shares outstanding - basic (in shares) | 73,461 | 72,839 | 73,272 | 72,718 |
Effect of dilutive securities (in shares) | 1,077 | 753 | 980 | 717 |
Weighted average number of common shares outstanding - diluted (in shares) | 74,538 | 73,592 | 74,252 | 73,435 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Options outstanding to purchase common stock excluded from computation of diluted earnings per common share (in shares) | 0 | 500,000 | 500,000 | 500,000 |
Antidilutive securities excluded from earnings per share, average exercise price (in dollars per share) | $ 39.38 | $ 34.14 | $ 34.14 |
Other Contingencies (Details)
Other Contingencies (Details) | 9 Months Ended | ||
Sep. 30, 2017USD ($)financial_covenant | Oct. 02, 2017USD ($) | Dec. 31, 2016USD ($) | |
Short-term Debt [Line Items] | |||
Bank line of credit | $ 300,000,000 | ||
Borrowings under line of credit | $ 25,000,000 | $ 0 | |
Number of financial covenants | financial_covenant | 1 | ||
Reduction of bank line of credit | $ 74,200,000 | ||
Amount available under line of credit | 200,800,000 | ||
Standby Letter Of Credit | |||
Short-term Debt [Line Items] | |||
Irrevocable standby letter of credit, outstanding | $ 74,200,000 | ||
Standby Letter Of Credit | Subsequent Event | |||
Short-term Debt [Line Items] | |||
Irrevocable standby letter of credit, outstanding | $ 77,600,000 |