Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BBSI | |
Entity Registrant Name | BARRETT BUSINESS SERVICES INC | |
Entity Central Index Key | 0000902791 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,558,205 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-21886 | |
Entity Tax Identification Number | 52-0812977 | |
Entity Address, Address Line One | 8100 NE Parkway Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98662 | |
City Area Code | 360 | |
Local Phone Number | 828-0700 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,469 | $ 68,688 |
Investments | 107,284 | 101,244 |
Trade accounts receivable, net | 226,582 | 118,506 |
Income taxes receivable | 3,005 | 6,485 |
Prepaid expenses and other | 18,437 | 15,961 |
Restricted cash and investments | 104,640 | 96,991 |
Total current assets | 462,417 | 407,875 |
Property, equipment and software, net | 35,515 | 34,916 |
Operating lease right-of-use assets | 23,208 | 23,025 |
Restricted cash and investments | 294,364 | 258,153 |
Goodwill | 47,820 | 47,820 |
Other assets | 2,794 | 3,161 |
Total assets | 866,118 | 774,950 |
Current liabilities: | ||
Current portion of long-term debt | 221 | 221 |
Accounts payable | 4,606 | 4,746 |
Accrued payroll, payroll taxes and related benefits | 235,928 | 149,989 |
Current operating lease liabilities | 7,748 | 7,539 |
Other accrued liabilities | 65,415 | 7,275 |
Workers' compensation claims liabilities | 86,047 | 102,040 |
Safety incentives liability | 6,883 | 18,827 |
Total current liabilities | 406,848 | 290,637 |
Long-term workers' compensation claims liabilities | 229,686 | 255,706 |
Long-term debt | 3,399 | 3,510 |
Deferred income taxes | 3,328 | 4,518 |
Long-term operating lease liabilities | 16,525 | 16,419 |
Customer deposits and other long-term liabilities | 6,910 | 5,925 |
Total liabilities | 666,696 | 576,715 |
Commitments and contingencies (Notes 4 and 6) | ||
Stockholders' equity: | ||
Common stock, $.01 par value; 20,500 shares authorized, 7,523 and 7,566 shares issued and outstanding | 75 | 76 |
Additional paid-in capital | 27,437 | 24,885 |
Accumulated other comprehensive income | 4,465 | 7,564 |
Retained earnings | 167,445 | 165,710 |
Total stockholders' equity | 199,422 | 198,235 |
Total liabilities and stockholders' equity | $ 866,118 | $ 774,950 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,500,000 | 20,500,000 |
Common stock, shares issued | 7,523,000 | 7,566,000 |
Common stock, shares outstanding | 7,523,000 | 7,566,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Total revenues | $ 233,203 | $ 201,031 | $ 451,648 | $ 420,135 |
Cost of revenues: | ||||
Total cost of revenues | 175,730 | 154,388 | 363,310 | 347,441 |
Gross margin | 57,473 | 46,643 | 88,338 | 72,694 |
Selling, general and administrative expenses | 35,662 | 33,255 | 72,769 | 65,370 |
Depreciation and amortization | 1,328 | 1,171 | 2,625 | 2,171 |
Income from operations | 20,483 | 12,217 | 12,944 | 5,153 |
Other income (expense): | ||||
Investment income, net | 1,965 | 1,800 | 3,734 | 4,767 |
Interest expense | (79) | (306) | (387) | (541) |
Other, net | (13) | 172 | (4) | 173 |
Other income, net | 1,873 | 1,666 | 3,343 | 4,399 |
Income before income taxes | 22,356 | 13,883 | 16,287 | 9,552 |
Provision for income taxes | 5,266 | 2,373 | 3,751 | 1,449 |
Net income | $ 17,090 | $ 11,510 | $ 12,536 | $ 8,103 |
Basic income per common share | $ 2.26 | $ 1.52 | $ 1.66 | $ 1.07 |
Weighted average number of basic common shares outstanding | 7,554 | 7,557 | 7,565 | 7,539 |
Diluted income per common share | $ 2.24 | $ 1.51 | $ 1.64 | $ 1.06 |
Weighted average number of diluted common shares outstanding | 7,645 | 7,647 | 7,658 | 7,678 |
Professional Employer Service Fees [Member] | ||||
Revenues: | ||||
Total revenues | $ 208,496 | $ 180,488 | $ 402,315 | $ 374,080 |
Staffing Services [Member] | ||||
Revenues: | ||||
Total revenues | 24,707 | 20,543 | 49,333 | 46,055 |
Direct Payroll Costs [Member] | ||||
Cost of revenues: | ||||
Total cost of revenues | 18,498 | 15,796 | 36,948 | 34,873 |
Payroll Taxes and Benefits [Member] | ||||
Cost of revenues: | ||||
Total cost of revenues | 111,719 | 93,671 | 234,502 | 213,133 |
Workers' Compensation [Member] | ||||
Cost of revenues: | ||||
Total cost of revenues | $ 45,513 | $ 44,921 | $ 91,860 | $ 99,435 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 17,090 | $ 11,510 | $ 12,536 | $ 8,103 |
Unrealized (losses) gains on investments, net of tax | 2,151 | 6,877 | (3,099) | 4,142 |
Comprehensive income | $ 19,241 | $ 18,387 | $ 9,437 | $ 12,245 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized (losses) gains on investments, tax | $ 828 | $ 2,630 | $ (1,179) | $ 1,584 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2019 | $ 171,799 | $ 75 | $ 20,227 | $ 2,819 | $ 148,678 |
Beginning Balance, shares at Dec. 31, 2019 | 7,514 | ||||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards | 904 | $ 1 | 903 | ||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards, shares | 56 | ||||
Common stock repurchased on vesting of restricted stock units and performance awards | (378) | (378) | |||
Common stock repurchased on vesting of restricted stock units and performance awards, shares | (6) | ||||
Share-based compensation expense | 342 | 342 | |||
Company repurchase of common stock | (2,987) | $ (1) | (169) | (2,817) | |
Company repurchase of common stock, shares | (59) | ||||
Cash dividends on common stock | (2,262) | (2,262) | |||
Unrealized gain (loss) on investments, net of tax | (2,735) | (2,735) | |||
Net (loss) income | (3,407) | (3,407) | |||
Ending Balance at Mar. 31, 2020 | 161,276 | $ 75 | 20,925 | 84 | 140,192 |
Ending Balance, shares at Mar. 31, 2020 | 7,505 | ||||
Beginning Balance at Dec. 31, 2019 | 171,799 | $ 75 | 20,227 | 2,819 | 148,678 |
Beginning Balance, shares at Dec. 31, 2019 | 7,514 | ||||
Unrealized gain (loss) on investments, net of tax | 4,142 | ||||
Net (loss) income | 8,103 | ||||
Ending Balance at Jun. 30, 2020 | 179,888 | $ 76 | 23,421 | 6,961 | 149,430 |
Ending Balance, shares at Jun. 30, 2020 | 7,598 | ||||
Beginning Balance at Mar. 31, 2020 | 161,276 | $ 75 | 20,925 | 84 | 140,192 |
Beginning Balance, shares at Mar. 31, 2020 | 7,505 | ||||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards | 1,810 | $ 1 | 1,809 | ||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards, shares | 96 | ||||
Common stock repurchased on vesting of restricted stock units and performance awards | (110) | (110) | |||
Common stock repurchased on vesting of restricted stock units and performance awards, shares | (3) | ||||
Share-based compensation expense | 797 | 797 | |||
Cash dividends on common stock | (2,272) | (2,272) | |||
Unrealized gain (loss) on investments, net of tax | 6,877 | 6,877 | |||
Net (loss) income | 11,510 | 11,510 | |||
Ending Balance at Jun. 30, 2020 | 179,888 | $ 76 | 23,421 | 6,961 | 149,430 |
Ending Balance, shares at Jun. 30, 2020 | 7,598 | ||||
Beginning Balance at Dec. 31, 2020 | 198,235 | $ 76 | 24,885 | 7,564 | 165,710 |
Beginning Balance, shares at Dec. 31, 2020 | 7,566 | ||||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards | 815 | 815 | |||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards, shares | 38 | ||||
Common stock repurchased on vesting of restricted stock units and performance awards | (107) | (107) | |||
Common stock repurchased on vesting of restricted stock units and performance awards, shares | (1) | ||||
Share-based compensation expense | 1,060 | 1,060 | |||
Company repurchase of common stock | (3,436) | (170) | (3,266) | ||
Company repurchase of common stock, shares | (49) | ||||
Cash dividends on common stock | (2,278) | (2,278) | |||
Unrealized gain (loss) on investments, net of tax | (5,250) | (5,250) | |||
Net (loss) income | (4,554) | (4,554) | |||
Ending Balance at Mar. 31, 2021 | 184,485 | $ 76 | 26,483 | 2,314 | 155,612 |
Ending Balance, shares at Mar. 31, 2021 | 7,554 | ||||
Beginning Balance at Dec. 31, 2020 | 198,235 | $ 76 | 24,885 | 7,564 | 165,710 |
Beginning Balance, shares at Dec. 31, 2020 | 7,566 | ||||
Unrealized gain (loss) on investments, net of tax | (3,099) | ||||
Net (loss) income | 12,536 | ||||
Ending Balance at Jun. 30, 2021 | 199,422 | $ 75 | 27,437 | 4,465 | 167,445 |
Ending Balance, shares at Jun. 30, 2021 | 7,523 | ||||
Beginning Balance at Mar. 31, 2021 | 184,485 | $ 76 | 26,483 | 2,314 | 155,612 |
Beginning Balance, shares at Mar. 31, 2021 | 7,554 | ||||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards | 61 | 61 | |||
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards, shares | 15 | ||||
Common stock repurchased on vesting of restricted stock units and performance awards | (287) | (287) | |||
Common stock repurchased on vesting of restricted stock units and performance awards, shares | (4) | ||||
Share-based compensation expense | 1,335 | 1,335 | |||
Company repurchase of common stock | (3,142) | $ (1) | (155) | (2,986) | |
Company repurchase of common stock, shares | (42) | ||||
Cash dividends on common stock | (2,271) | (2,271) | |||
Unrealized gain (loss) on investments, net of tax | 2,151 | 2,151 | |||
Net (loss) income | 17,090 | 17,090 | |||
Ending Balance at Jun. 30, 2021 | $ 199,422 | $ 75 | $ 27,437 | $ 4,465 | $ 167,445 |
Ending Balance, shares at Jun. 30, 2021 | 7,523 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends on common stock per share | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 12,536 | $ 8,103 |
Reconciliations of net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,625 | 2,171 |
Non-cash lease expense | 3,937 | 3,545 |
Investment amortization and losses recognized | 671 | 283 |
Deferred Income taxes | 3,890 | |
Share-based compensation | 2,395 | 1,139 |
Changes in certain operating assets and liabilities: | ||
Trade accounts receivable | (108,076) | (24,822) |
Income taxes | 3,480 | (2,171) |
Prepaid expenses and other | (2,476) | (2,458) |
Accounts payable | (140) | (1,042) |
Accrued payroll, payroll taxes and related benefits | 87,024 | 8,035 |
Other accrued liabilities | 58,051 | (2,759) |
Workers' compensation claims liabilities | (41,634) | (102,572) |
Safety incentives liability | (11,944) | (2,183) |
Operating lease liabilities | (3,805) | (3,405) |
Other assets and liabilities, net | (23) | (143) |
Net cash provided by (used in) operating activities | 2,621 | (114,389) |
Cash flows from investing activities: | ||
Purchase of property, equipment and software | (3,224) | (5,725) |
Purchase of investments | (42,011) | (23,722) |
Proceeds from sales and maturities of investments | 40,054 | 38,547 |
Purchase of restricted investments | (253,048) | (29,570) |
Proceeds from sales and maturities of restricted investments | 46,690 | 22,453 |
Net cash (used in) provided by investing activities | (211,539) | 1,983 |
Cash flows from financing activities: | ||
Payments on long-term debt | (111) | (110) |
Repurchase of common stock | (6,578) | (2,987) |
Common stock repurchased on vesting of stock awards | (394) | (488) |
Dividends paid | (4,549) | (4,534) |
Proceeds from exercise of stock options | 876 | 2,714 |
Net cash used in financing activities | (10,756) | (5,405) |
Net decrease in cash, cash equivalents and restricted cash | (219,674) | (117,811) |
Cash, cash equivalents and restricted cash, beginning of period | 233,837 | 273,341 |
Cash, cash equivalents and restricted cash, end of period | $ 14,163 | $ 155,530 |
Basis of Presentation of Interi
Basis of Presentation of Interim Period Statements | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation of Interim Period Statements | Note 1 - Basis of Presentation of Interim Period Statements The accompanying condensed consolidated financial statements are unaudited and have been prepared by Barrett Business Services, Inc. (“BBSI”, the “Company”, “our” or “we”), pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures typically included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The accompanying condensed financial statements are prepared on a consolidated basis. All intercompany account balances and transactions have been eliminated in consolidation. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from such estimates and assumptions. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2020 Annual Report on Form 10-K at pages 34 – 61. The results of operations for an interim period are not necessarily indicative of the results of operations for a full year. Revenue recognition Professional employer (“PEO”) services are normally used by organizations to satisfy ongoing needs related to the management of human capital and are governed by the terms of a client services agreement which covers all employees at a particular work site. Staffing revenues relate primarily to short-term staffing, contract staffing and on-site management services. The Company’s performance obligations for PEO and staffing services are satisfied, and the related revenue is recognized, as services are rendered by our workforce. Our PEO client service agreements have a minimum term of one year, are renewable on an annual basis, and typically require 30 days’ written notice to cancel or terminate the contract by either party. In addition, our client service agreements provide for immediate termination upon any default of the client regardless of when notice is given. PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date. Staffing customers are generally invoiced weekly based on agreed rates per employee and actual hours worked, typically with payment terms of 30 days. The amount of earned but unbilled revenue is classified as a receivable on the condensed consolidated balance sheets. We report PEO revenues net of direct payroll costs because we are not the primary obligor for these payments to our clients’ employees. Direct payroll costs include salaries, wages, health insurance, and employee out-of-pocket expenses incurred incidental to employment. We also present revenue net of safety incentives because these incentives represent consideration payable to customers. Cost of revenues Our cost of revenues for PEO services includes employer payroll-related taxes and workers’ compensation costs. Our cost of revenues for staffing services includes direct payroll costs, employer payroll-related taxes, employee benefits, and workers’ compensation costs. Direct payroll costs represent the gross payroll earned by staffing services employees based on salary or hourly wages. Payroll taxes and employee benefits consist of the employer’s portion of Social Security and Medicare taxes, federal and state unemployment taxes, and staffing services employee reimbursements for materials, supplies and other expenses, which are paid by our customer. Workers’ compensation costs consist primarily of claims reserves, claims administration fees, legal fees, medical cost containment (“MCC”) expense, state administrative agency fees, third-party broker commissions, risk manager payroll, premiums for excess insurance, and the insured program, as well as costs associated with operating our two wholly owned insurance companies, Associated Insurance Company for Excess (“AICE”) and Ecole Insurance Company (“Ecole”). Cash and cash equivalents We consider non-restricted short-term investments that are highly liquid, readily convertible into cash, and have maturities at acquisition of less than three months, to be cash equivalents for purposes of the condensed consolidated statements of cash flows and condensed consolidated balance sheets. The Company maintains cash balances in bank accounts that normally exceed FDIC insured limits. The Company has not experienced any losses related to its cash concentration. Investments The Company classifies investments as available-for-sale. The Company’s investments are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Investments are recorded as current on the condensed consolidated balance sheets as the invested funds are available for current operations. Management considers available evidence in evaluating potential impairment of investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of investments are included in investment income in our condensed consolidated statements of operations. Restricted cash and investments The Company holds restricted cash and investments primarily for the future payment of workers’ compensation claims. These investments are categorized as available-for-sale. They are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Restricted cash and investments are classified as current and noncurrent on the condensed consolidated balance sheets based on the nature of the restriction. Management considers available evidence in evaluating potential impairment of restricted investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of restricted investments are included in investment income in our condensed consolidated statements of operations. Restricted cash and investments also includes investments held as part of the Company’s deferred compensation plan. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of income (loss) from operations. Allowance for doubtful accounts The Company had an allowance for doubtful accounts of $761,000 and $757,000 at June 30, 2021 and December 31, 2020, respectively. We make estimates of the collectability of our accounts receivable for services provided to our customers based on future expected credit losses. Management analyzes historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of our customers deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. Workers’ compensation claims liabilities Our workers’ compensation claims liabilities do not represent an exact calculation of liability but rather management’s best estimate, utilizing actuarial expertise and projection techniques, at a given reporting date. The estimated liability for open workers’ compensation claims is based on an evaluation of information provided by our third-party administrator for workers’ compensation claims, coupled with an actuarial estimate of future loss development with respect to reported claims and incurred but not reported claims (together, “IBNR”). Workers’ compensation claims liabilities include case reserve estimates for reported losses, plus additional amounts for estimated IBNR claims, MCC and legal costs, unallocated loss adjustment expenses and estimated future recoveries. The estimate of incurred costs expected to be paid within one year is included in current liabilities, while the estimate of incurred costs expected to be paid beyond one year is included in long-term liabilities on our condensed consolidated balance sheets. These estimates are reviewed at least quarterly and adjustments to estimated liabilities are reflected in current operating results as they become known. The process of arriving at an estimate of unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events, including changes in claims handling practices, changes in reserve estimation procedures, inflation, trends in the litigation and settlement of pending claims, and legislative changes. Our estimates are based on actuarial analysis and informed judgment, derived from individual experience and expertise applied to multiple sets of data and analyses. We consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known. Due to the inherent uncertainty underlying loss reserve estimates, the expenses incurred through final resolution of our liability for our workers’ compensation claims will likely vary from the related loss reserves at the reporting date. Therefore, as specific claims are paid out in the future, actual paid losses may be materially different from our current loss reserves. A basic premise in most actuarial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes, absent a material change. Significant structural changes to the available data can materially impact the reserve estimation process. To the extent a material change affecting the ultimate claim liability becomes known, such change is quantified to the extent possible through an analysis of internal Company data and, if available and when appropriate, external data. Nonetheless, actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties. Safety incentives We accrue for and present expected safety incentives as a reduction of revenue. Customer deposits We require deposits from certain PEO customers to cover a portion of our accounts receivable due from such customers in the event of default of payment. Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company’s stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. generally accepted accounting principles (“GAAP”) are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive income (loss) comprises unrealized holding gains and losses on our available-for-sale investments. Statements of cash flows Interest paid during the six months ended June 30, 2021 and 2020 did not materially differ from interest expense. Income taxes paid during the six months ended June 30, 2021 totaled $0.21 million. No income taxes were paid during the Bank deposits and other cash equivalents that are restricted for use are classified as restricted cash. The table below reconciles the cash, cash equivalents and restricted cash balances from our condensed consolidated balance sheets to the amounts reported on the condensed consolidated statements of cash flows (in thousands): June 30, December 31, June 30, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 2,469 $ 68,688 $ 62,210 $ 44,570 Restricted cash, included in restricted cash and investments 11,694 165,149 93,320 228,771 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 14,163 $ 233,837 $ 155,530 $ 273,341 Basic and diluted earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding for each year using the treasury method. Diluted earnings per share reflect the potential effects of the exercise of outstanding stock options, the issuance of stock associated with outstanding restricted stock units, performance share units and the Company’s employee stock purchase plan. Basic and diluted shares outstanding are summarized as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted average number of basic shares outstanding 7,554 7,557 7,565 7,539 Effect of dilutive securities 91 90 93 139 Weighted average number of diluted shares outstanding 7,645 7,647 7,658 7,678 Accounting estimates The preparation of our condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. These affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are used for fair value measurement of investments, allowance for doubtful accounts, deferred income taxes, carrying values for goodwill and property, equipment and software, accrued workers’ compensation liabilities and safety incentive liabilities. Actual results may or may not differ from such estimates. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 2 - Fair Value Measurement The following table summarizes the Company’s investments at June 30, 2021 and December 31, 2020 measured at fair value on a recurring basis (in thousands): June 30, 2021 December 31, 2020 Gross Gross Unrealized Unrealized Gains Recorded Gains Recorded Cost (Losses) Basis Cost (Losses) Basis Current: Cash equivalents: Money market funds $ 1,149 $ — $ 1,149 $ 42,007 $ — $ 42,007 Total cash equivalents 1,149 — 1,149 42,007 — 42,007 Investments: Corporate bonds 48,243 541 48,784 50,918 884 51,802 Asset backed securities 36,943 (7 ) 36,936 36,948 (146 ) 36,802 Mortgage backed securities 11,592 (125 ) 11,467 4,367 24 4,391 U.S. government agency securities 7,389 593 7,982 7,396 752 8,148 U.S. treasuries 2,101 14 2,115 100 1 101 Total current investments 106,268 1,016 107,284 99,729 1,515 101,244 Restricted cash and investments (1) Corporate bonds 183,186 1,628 184,814 88,902 4,091 92,993 Mortgage backed securities 88,288 1,470 89,758 48,795 2,356 51,151 U.S. treasuries 69,225 147 69,372 4,371 19 4,390 U.S. government agency securities 34,908 1,909 36,817 29,737 2,466 32,203 Mutual funds 6,121 — 6,121 5,036 — 5,036 Money market funds 396 — 396 40,063 (4 ) 40,059 Asset backed securities 203 2 205 256 4 260 Supranational bonds — — — 4,775 3 4,778 Total restricted cash and investments 382,327 5,156 387,483 221,935 8,935 230,870 Total investments $ 489,744 $ 6,172 $ 495,916 $ 363,671 $ 10,450 $ 374,121 (1) Included in restricted cash and investments within the condensed consolidated balance sheets is restricted cash of $11.5 million and $124.3 million as of June 30, 2021 and December 31, 2020, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction. The following table summarizes the Company’s investments at June 30, 2021 and December 31, 2020 measured at fair value on a recurring basis by fair value hierarchy level (in thousands): June 30, 2021 December 31, 2020 Total Total Recorded Recorded Basis Level 1 Level 2 Level 3 Other (1) Basis Level 1 Level 2 Level 3 Other (1) Cash equivalents: Money market funds $ 1,149 $ — $ — $ — $ 1,149 $ 42,007 $ — $ — $ — $ 42,007 Investments: Corporate bonds 48,784 — 48,784 — — 51,802 — 51,802 — — Asset backed securities 36,936 — 36,936 — — 36,802 — 36,802 — — Mortgage backed securities 11,467 — 11,467 — — 4,391 — 4,391 — — U.S. government agency securities 7,982 — 7,982 — — 8,148 — 8,148 — — U.S. treasuries 2,115 — 2,115 — — 101 — 101 — — Restricted cash and investments: Corporate bonds 184,814 — 184,814 — — 92,993 — 92,993 — — Mortgage backed securities 89,758 — 89,758 — — 51,151 — 51,151 — — U.S. treasuries 69,372 — 69,372 — — 4,390 — 4,390 — — U.S. government agency securities 36,817 — 36,817 — — 32,203 — 32,203 — — Mutual funds 6,121 6,121 — — — 5,036 5,036 — — — Money market funds 396 — — — 396 40,059 — — — 40,059 Asset backed securities 205 — 205 — — 260 — 260 — — Supranational bonds — — — — — 4,778 — 4,778 — — Total investments $ 495,916 $ 6,121 $ 488,250 $ — $ 1,545 $ 374,121 $ 5,036 $ 287,019 $ — $ 82,066 (1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice. The following table summarizes the contractual maturities of the Company’s available-for-sale securities at June 30, 2021 and December 31, 2020. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. June 30, 2021 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 24,506 $ 67,063 $ 142,029 $ — $ 233,598 U.S. treasuries 1,010 424 70,053 — 71,487 U.S. government agency securities 1,002 18,413 25,384 — 44,799 Asset backed securities — 209 2,201 34,731 37,141 Money market funds $ 1,545 $ — $ — $ — $ 1,545 Total $ 28,063 $ 86,109 $ 239,667 $ 34,731 $ 388,570 December 31, 2020 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 49,308 $ 61,315 $ 34,172 $ — $ 144,795 Money market funds 82,066 — — — 82,066 U.S. government agency securities 1,013 18,668 20,670 — 40,351 Asset backed securities 2 267 — 36,793 37,062 Supranational bonds 4,778 — — — 4,778 U.S. treasuries 1,367 1,504 1,620 — 4,491 Total $ 138,534 $ 81,754 $ 56,462 $ 36,793 $ 313,543 The average contractual maturity of mortgage backed securities, which are excluded from the table above, was 23 years and 17 years as of June 30, 2021 and December 31, 2020, respectively. |
Workers' Compensation Claims
Workers' Compensation Claims | 6 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Workers' Compensation Claims | Note 3 – Workers’ Compensation Claims The following table summarizes the aggregate workers’ compensation reserve activity (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Beginning balance Workers' compensation claims liabilities $ 362,663 $ 445,310 $ 357,746 $ 438,986 Add: claims expense accrual Current period 35,743 32,729 69,013 71,221 Prior periods (5,483 ) (1,373 ) (6,663 ) (2,186 ) 30,260 31,356 62,350 69,035 Less: claim payments related to Current period 3,927 4,527 4,979 6,077 Prior periods (1) 73,240 135,853 99,005 165,530 77,167 140,380 103,984 171,607 Change in claims incurred in excess of retention limits (23 ) 218 (379 ) 90 Ending balance Workers' compensation claims liabilities $ 315,733 $ 336,504 $ 315,733 $ 336,504 Incurred but not reported (IBNR) $ 190,818 $ 206,521 $ 190,818 $ 206,521 Ratio of IBNR to workers' compensation claims liabilities 60 % 61 % 60 % 61 % (1) Insured program The Company provides workers’ compensation coverage for client employees primarily through arrangements with fully licensed, third-party insurers (the “insured program”). Under this program, carriers issue policies to the Company’s clients on behalf of the Company. Approximately 82% of the Company’s workers’ compensation exposure is covered through the insured program. The Company entered into a new arrangement for its insured program effective July 1, 2021 whereby third-party insurers assume all risk of loss for claims incurred after June 30, 2021. The agreement continues to June 30, 2022 and includes a renewal commitment through June 30, 2023. The arrangement allows for premium adjustments depending on overall portfolio performance. If claims develop favorably, BBSI can participate in the savings up to $20.0 million for a twelve-month policy period. If claims develop adversely, additional premium may be charged up to $7.5 million for a twelve-month policy period. For claims incurred under the insured program prior to July 1, 2021, the Company retains risk of loss up to the first $3.0 million per occurrence on policies issued after June 30, 2020 and $5.0 million per occurrence on policies issued before that date. On June 29, 2020, the Company entered into a loss portfolio transfer agreement (“LPT 1”) to remove all outstanding workers’ compensation claims obligations for claims incurred under its insured program between February 1, 2014 and December 31, 2017. This transaction reduced the Company’s outstanding workers’ compensation liabilities and trust account balances by $115.7 million. On June 30, 2021, the Company entered into a loss portfolio transfer agreement (“LPT 2”) to remove all remaining outstanding workers’ compensation claims obligations for client policies issued under its insured program up to June 30, 2018. This transaction reduced the Company’s outstanding workers’ compensation liabilities by $53.1 million. The payment terms of the LPT required $5.0 million to be paid prior to June 30, 2021, with the remaining amount due in July 2021. The balance payable is included in other accrued liabilities on the condensed consolidated balance sheets. The following is a summary of the risk retained by the Company under its insured program after considering the effects of the loss portfolio transfers and current insurance arrangements: Year Claims risk retained 2014 No 2015 No 2016 No 2017 No 2018 (1) No 2019 (1) Yes 2020 Yes 2021 - Through June 30 Yes 2021 - July 1 and after No (1) LPT 2 excluded approximately 10% of claims from 2018 and included an approximately offsetting amount of claims from 2019. The Company is required to maintain minimum collateral levels for policies issued under the insured program, which is held in trust accounts (the “trust accounts”). The balance in the trust accounts was $376.6 million and $290.7 million at June 30, 2021 and December 31, 2020, respectively. The trust account balances are included as a component of the current and long-term restricted cash and investments in the Company’s condensed consolidated balance sheets. Self-insured programs The Company is a self-insured employer with respect to workers' compensation coverage for all employees, including client employees, working in Colorado, Maryland and Oregon. In the state of Washington, state law allows only the Company's staffing services and internal management employees to be covered under the Company's self-insured workers' compensation program. The Company also operates a wholly owned, fully licensed insurance company, Ecole, which provides workers’ compensation coverage to client employees working in Arizona and Utah. Approximately 18% of the Company’s workers’ compensation exposure is covered through self-insurance or Ecole (the “self-insured programs”). For all claims incurred under the Company’s self-insured programs, the Company retains risk of loss up to the first $3.0 million per occurrence, except in Maryland and Colorado, where the Company’s retention per occurrence is $1.0 million and $2.0 million, respectively. For claims incurred under the Company’s self-insured programs prior to July 1, 2020, the Company retains risk of loss up to the first $5.0 million per occurrence, except in Maryland and Colorado, where the retention per occurrence is $1.0 million and $2.0 million, respectively. The states of California, Maryland, Oregon, Washington, Colorado and Delaware required the Company to maintain collateral totaling $58.4 million and $60.1 million at June 30, 2021 and December 31, 2020, respectively, to cover potential workers’ compensation claims losses related to the Company’s current and former status as a self-insured employer. At June 30, 2021, the Company provided surety bonds and standby letters of credit totaling $58.4 million. Claims liabilities The Company provided a total of $315.7 million and $357.7 million at June 30, 2021 and December 31, 2020, respectively, as an estimated future liability for unsettled workers' compensation claims liabilities. Of this amount, $2.5 million and $2.9 million at June 30, 2021 and December 31, 2020, respectively, represent case reserves incurred in excess of the Company’s retention. The accrual for costs incurred in excess of retention limits is offset by a receivable from insurance carriers of $2.5 million and $2.9 million at June 30, 2021 and December 31, 2020, respectively, included in other assets in the condensed consolidated balance sheets. |
Revolving Credit Facility and L
Revolving Credit Facility and Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Long-Term Debt | Note 4 - Revolving Credit Facility and Long-Term Debt The Company maintains an agreement (the “Agreement”) with Wells Fargo Bank, N.A. (the “Bank”) for a revolving credit line of $33.0 million and a sublimit for standby letters of credit of $8.0 million. At June 30, 2021, $6.2 million of the sublimit for standby letters of credit was used. Advances under the revolving credit line bear interest, as selected by the Company, of (a) the daily floating rate of one-month LIBOR plus 1.75% or (b) the fixed rate of LIBOR plus 1.75%. The Agreement also provides for an unused commitment fee of 0.375% per year on the average daily unused amount of the revolving credit line, as well as a fee of 1.75% of the face amount of each letter of credit reserved under the line of credit. The Company had no outstanding borrowings on its revolving credit line at June 30, 2021 and December 31, 2020. The credit facility is collateralized by the Company’s accounts receivable and other rights to receive payment. The Agreement also provide d a $ 63.7 million standby letter of credit (the “ Letter of Credit”). I n April 2021, the Company and the insurance carrier reached an agreement to replace the Letter of Credit with other collateral assets and cancel the Letter of Credit in its entirety. As part of the transaction, the Bank released the $ 38.7 million of collateral held in support of the Letter of Credit, and the Company transferred the $ 38.7 million along with an additional $ 25.0 million to the trust accounts to satisfy the collateral requirements of the insured program. The Agreement requires the satisfaction of certain financial covenants as follows: • EBITDA [net income before taxes plus interest expense (net of capitalized interest expense), depreciation expense, and amortization expense] on a rolling four-quarter basis must be not less than $30 million at the end of each fiscal quarter; and • the ratio of restricted and unrestricted cash and investments to workers’ compensation and safety incentive liabilities must be at least 1.0:1.0 The Agreement imposes certain additional restrictions unless the Bank provides its prior written consent as follows: • incurring additional indebtedness is prohibited, other than purchase financing for the acquisition of assets, provided that the aggregate of all purchase financing does not exceed $1,000,000 at any time; • the Company may not terminate or cancel any of the AICE policies; and • if an event of default would occur, including on a pro forma basis, no dividends or distributions would be permitted to be paid and redemptions and repurchases of the Company’s stock would be permitted only up to $15 million in any rolling 12-month period. The Agreement also contains customary events of default and specified cross-defaults under the Company’s workers’ compensation insurance arrangements. If an event of default under the Agreement occurs and is continuing, the Bank may declare any outstanding obligations under the Agreement to be immediately due and payable. At June 30, 2021, the Company was in compliance with all covenants. The Company maintains a mortgage loan with the Bank with a balance of approximately $3.6 million and $3.7 million at June 30, 2021 and December 31, 2020, respectively, secured by the Company’s corporate office building in Vancouver, Washington. This loan requires payment of monthly installments of $18,375, bearing interest at the |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 – Income Taxes Under ASC 740, “Income Taxes,” management evaluates the realizability of the deferred tax assets on a quarterly basis under a “more likely than not” standard. As part of this evaluation, management reviews all evidence, both positive and negative, to determine if a valuation allowance is needed. One component of this analysis is to determine whether the Company was in a cumulative loss position for the most recent 12 quarters. The Company was in a cumulative income position for the 12 quarters ended June 30, 2021. The Company’s realization of a portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. The Company is subject to income taxes in U.S. federal and multiple state and local tax jurisdictions. The Internal Revenue Service is examining the Company’s federal tax returns for the years ended December 31, 2011, 2012, 2013 and 2014. In July 2020, BBSI received notice that the IRS intends to disallow certain wage-based tax credits claimed for years 2011 to 2014, which would result in an estimated total additional tax due of approximately $2.3 million for the tax years 2012 through 2015, including the impact on carryover tax attributes. The Company disagrees with the IRS determination and believes that it has technical merits to defend its position. Based on management’s more-likely-than-not assessment that the position is sustainable, no reserve for the aforementioned IRS notice of disallowance of wage-based tax credits has been recorded in the financial statements. In July 2021, the Company received a notice from the IRS indicating the IRS plans to audit the Company’s federal tax returns for the years ended December 31, 2017, 2018, and 2019. In the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for the 2015 and 2016 tax year and tax years before 2011. As of June 30, 2021, the Company had no material unrecognized tax benefits. A portion of the consolidated income the Company generates is not subject to state income tax. Depending on the percentage of this income as compared to total consolidated income, the Company's state effective tax rate could fluctuate from expectations. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | Note 6 – Litigation On November 21, 2012, David Kaanaana (“Kaanaana”), a former staffing employee, filed a class action wage and hour lawsuit against BBSI in the California Superior Court on behalf of himself and certain other employees who worked at County Sanitation District No. 2 of Los Angeles County (“the District”). The trial court ruled in plaintiffs’ favor regarding certain alleged meal breach violations but ruled in favor of BBSI with respect to the application of the California prevailing wage law to the District and other claims. These latter rulings were appealed by the plaintiffs to the California Court of Appeal. On November 30, 2018, the California Court of Appeal for the Second Appellate District returned its decision in Kaanaana v. Barrett Business Services, Inc., overruling the trial court's decision to dismiss the prevailing wage claim, ruling that the work in question at the District constitutes “public works” under the applicable law, and also ruling that plaintiffs’ are entitled to additional remedies with regard to the meal break violations under California law. On January 9, 2019, BBSI filed a petition of review to the California Supreme Court. On February 27, 2019, the California Supreme Court granted the petition to review the Court of Appeal’s decision with respect to the prevailing wage issue. An amicus brief in support of BBSI’s appeal was filed by the District and certain associations of special districts, cities and counties in California. Oral argument took place on January 5, 2021. A decision from the California Supreme Court was issued March 29, 2021 affirming the Court of Appeal decision and concluding that the recycling sorting work performed by the staffing employees in question was a “public work” and therefore would be subject to prevailing wage requirements. No damages were awarded in the appeals process. The case has been remanded to Superior Court for any such determination with respect to both the prevailing wage issue and any additional remedies for the meal break violations. Although certain costs from the Kaanaana case are estimable and accrued, potential liability from the public work determination is not currently considered estimable and is therefore not accrued. There is not precedent on how this type of ruling would impact historical work performed prior to a relevant prevailing wage rate being established by the California Department of Industrial Relations. There remain many possible outcomes, including that a prevailing wage rate could be set considerably higher than actual wages paid, which totaled approximately $2.2 million, or that actual wages paid may be determined to be equivalent to prevailing wages. There may also be other procedural outcomes. BBSI believes it has the right to recover from the District any increased costs that may result from the court’s past or future decisions related to prevailing wage requirements, including any fees and penalties that may be incurred. In addition to the matter above, BBSI is subject to other legal proceedings and claims that arise in the ordinary course of our business. There are significant uncertainties surrounding litigation, including the possible liabilities in the Kaanaana case. For this case and others, management has recorded estimated liabilities of $3.8 million in other accrued liabilities in the condensed consolidated balance sheets. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 7 – Subsequent Events We have evaluated events and transactions occurring after the balance sheet date through our filing date and noted no events that are subject to recognition or disclosure. |
Basis of Presentation of Inte_2
Basis of Presentation of Interim Period Statements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Revenue recognition | Revenue recognition Professional employer (“PEO”) services are normally used by organizations to satisfy ongoing needs related to the management of human capital and are governed by the terms of a client services agreement which covers all employees at a particular work site. Staffing revenues relate primarily to short-term staffing, contract staffing and on-site management services. The Company’s performance obligations for PEO and staffing services are satisfied, and the related revenue is recognized, as services are rendered by our workforce. Our PEO client service agreements have a minimum term of one year, are renewable on an annual basis, and typically require 30 days’ written notice to cancel or terminate the contract by either party. In addition, our client service agreements provide for immediate termination upon any default of the client regardless of when notice is given. PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date. Staffing customers are generally invoiced weekly based on agreed rates per employee and actual hours worked, typically with payment terms of 30 days. The amount of earned but unbilled revenue is classified as a receivable on the condensed consolidated balance sheets. We report PEO revenues net of direct payroll costs because we are not the primary obligor for these payments to our clients’ employees. Direct payroll costs include salaries, wages, health insurance, and employee out-of-pocket expenses incurred incidental to employment. We also present revenue net of safety incentives because these incentives represent consideration payable to customers. |
Cost of revenues | Cost of revenues Our cost of revenues for PEO services includes employer payroll-related taxes and workers’ compensation costs. Our cost of revenues for staffing services includes direct payroll costs, employer payroll-related taxes, employee benefits, and workers’ compensation costs. Direct payroll costs represent the gross payroll earned by staffing services employees based on salary or hourly wages. Payroll taxes and employee benefits consist of the employer’s portion of Social Security and Medicare taxes, federal and state unemployment taxes, and staffing services employee reimbursements for materials, supplies and other expenses, which are paid by our customer. Workers’ compensation costs consist primarily of claims reserves, claims administration fees, legal fees, medical cost containment (“MCC”) expense, state administrative agency fees, third-party broker commissions, risk manager payroll, premiums for excess insurance, and the insured program, as well as costs associated with operating our two wholly owned insurance companies, Associated Insurance Company for Excess (“AICE”) and Ecole Insurance Company (“Ecole”). |
Cash and cash equivalents | Cash and cash equivalents We consider non-restricted short-term investments that are highly liquid, readily convertible into cash, and have maturities at acquisition of less than three months, to be cash equivalents for purposes of the condensed consolidated statements of cash flows and condensed consolidated balance sheets. The Company maintains cash balances in bank accounts that normally exceed FDIC insured limits. The Company has not experienced any losses related to its cash concentration. |
Investments | Investments The Company classifies investments as available-for-sale. The Company’s investments are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Investments are recorded as current on the condensed consolidated balance sheets as the invested funds are available for current operations. Management considers available evidence in evaluating potential impairment of investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of investments are included in investment income in our condensed consolidated statements of operations. |
Restricted cash and investments | Restricted cash and investments The Company holds restricted cash and investments primarily for the future payment of workers’ compensation claims. These investments are categorized as available-for-sale. They are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Restricted cash and investments are classified as current and noncurrent on the condensed consolidated balance sheets based on the nature of the restriction. Management considers available evidence in evaluating potential impairment of restricted investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of restricted investments are included in investment income in our condensed consolidated statements of operations. Restricted cash and investments also includes investments held as part of the Company’s deferred compensation plan. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of income (loss) from operations. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company had an allowance for doubtful accounts of $761,000 and $757,000 at June 30, 2021 and December 31, 2020, respectively. We make estimates of the collectability of our accounts receivable for services provided to our customers based on future expected credit losses. Management analyzes historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment trends when evaluating the adequacy of the allowance for doubtful accounts. If the financial condition of our customers deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. |
Workers' compensation claims liabilities | Workers’ compensation claims liabilities Our workers’ compensation claims liabilities do not represent an exact calculation of liability but rather management’s best estimate, utilizing actuarial expertise and projection techniques, at a given reporting date. The estimated liability for open workers’ compensation claims is based on an evaluation of information provided by our third-party administrator for workers’ compensation claims, coupled with an actuarial estimate of future loss development with respect to reported claims and incurred but not reported claims (together, “IBNR”). Workers’ compensation claims liabilities include case reserve estimates for reported losses, plus additional amounts for estimated IBNR claims, MCC and legal costs, unallocated loss adjustment expenses and estimated future recoveries. The estimate of incurred costs expected to be paid within one year is included in current liabilities, while the estimate of incurred costs expected to be paid beyond one year is included in long-term liabilities on our condensed consolidated balance sheets. These estimates are reviewed at least quarterly and adjustments to estimated liabilities are reflected in current operating results as they become known. The process of arriving at an estimate of unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events, including changes in claims handling practices, changes in reserve estimation procedures, inflation, trends in the litigation and settlement of pending claims, and legislative changes. Our estimates are based on actuarial analysis and informed judgment, derived from individual experience and expertise applied to multiple sets of data and analyses. We consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known. Due to the inherent uncertainty underlying loss reserve estimates, the expenses incurred through final resolution of our liability for our workers’ compensation claims will likely vary from the related loss reserves at the reporting date. Therefore, as specific claims are paid out in the future, actual paid losses may be materially different from our current loss reserves. A basic premise in most actuarial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes, absent a material change. Significant structural changes to the available data can materially impact the reserve estimation process. To the extent a material change affecting the ultimate claim liability becomes known, such change is quantified to the extent possible through an analysis of internal Company data and, if available and when appropriate, external data. Nonetheless, actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties. |
Safety incentives | Safety incentives We accrue for and present expected safety incentives as a reduction of revenue. |
Customer deposits | Customer deposits We require deposits from certain PEO customers to cover a portion of our accounts receivable due from such customers in the event of default of payment. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company’s stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. generally accepted accounting principles (“GAAP”) are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive income (loss) comprises unrealized holding gains and losses on our available-for-sale investments. |
Statements of cash flows | Statements of cash flows Interest paid during the six months ended June 30, 2021 and 2020 did not materially differ from interest expense. Income taxes paid during the six months ended June 30, 2021 totaled $0.21 million. No income taxes were paid during the Bank deposits and other cash equivalents that are restricted for use are classified as restricted cash. The table below reconciles the cash, cash equivalents and restricted cash balances from our condensed consolidated balance sheets to the amounts reported on the condensed consolidated statements of cash flows (in thousands): June 30, December 31, June 30, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 2,469 $ 68,688 $ 62,210 $ 44,570 Restricted cash, included in restricted cash and investments 11,694 165,149 93,320 228,771 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 14,163 $ 233,837 $ 155,530 $ 273,341 |
Basic and diluted earnings per share | Basic and diluted earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding for each year using the treasury method. Diluted earnings per share reflect the potential effects of the exercise of outstanding stock options, the issuance of stock associated with outstanding restricted stock units, performance share units and the Company’s employee stock purchase plan. Basic and diluted shares outstanding are summarized as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted average number of basic shares outstanding 7,554 7,557 7,565 7,539 Effect of dilutive securities 91 90 93 139 Weighted average number of diluted shares outstanding 7,645 7,647 7,658 7,678 |
Accounting estimates | Accounting estimates The preparation of our condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. These affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are used for fair value measurement of investments, allowance for doubtful accounts, deferred income taxes, carrying values for goodwill and property, equipment and software, accrued workers’ compensation liabilities and safety incentive liabilities. Actual results may or may not differ from such estimates. |
Basis of Presentation of Inte_3
Basis of Presentation of Interim Period Statements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Reconciles of Cash, Cash Equivalents and Restricted Cash Balances | The table below reconciles the cash, cash equivalents and restricted cash balances from our condensed consolidated balance sheets to the amounts reported on the condensed consolidated statements of cash flows (in thousands): June 30, December 31, June 30, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 2,469 $ 68,688 $ 62,210 $ 44,570 Restricted cash, included in restricted cash and investments 11,694 165,149 93,320 228,771 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 14,163 $ 233,837 $ 155,530 $ 273,341 |
Summary of Basic and Diluted Common Shares Outstanding | Basic and diluted shares outstanding are summarized as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted average number of basic shares outstanding 7,554 7,557 7,565 7,539 Effect of dilutive securities 91 90 93 139 Weighted average number of diluted shares outstanding 7,645 7,647 7,658 7,678 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s investments at June 30, 2021 and December 31, 2020 measured at fair value on a recurring basis (in thousands): June 30, 2021 December 31, 2020 Gross Gross Unrealized Unrealized Gains Recorded Gains Recorded Cost (Losses) Basis Cost (Losses) Basis Current: Cash equivalents: Money market funds $ 1,149 $ — $ 1,149 $ 42,007 $ — $ 42,007 Total cash equivalents 1,149 — 1,149 42,007 — 42,007 Investments: Corporate bonds 48,243 541 48,784 50,918 884 51,802 Asset backed securities 36,943 (7 ) 36,936 36,948 (146 ) 36,802 Mortgage backed securities 11,592 (125 ) 11,467 4,367 24 4,391 U.S. government agency securities 7,389 593 7,982 7,396 752 8,148 U.S. treasuries 2,101 14 2,115 100 1 101 Total current investments 106,268 1,016 107,284 99,729 1,515 101,244 Restricted cash and investments (1) Corporate bonds 183,186 1,628 184,814 88,902 4,091 92,993 Mortgage backed securities 88,288 1,470 89,758 48,795 2,356 51,151 U.S. treasuries 69,225 147 69,372 4,371 19 4,390 U.S. government agency securities 34,908 1,909 36,817 29,737 2,466 32,203 Mutual funds 6,121 — 6,121 5,036 — 5,036 Money market funds 396 — 396 40,063 (4 ) 40,059 Asset backed securities 203 2 205 256 4 260 Supranational bonds — — — 4,775 3 4,778 Total restricted cash and investments 382,327 5,156 387,483 221,935 8,935 230,870 Total investments $ 489,744 $ 6,172 $ 495,916 $ 363,671 $ 10,450 $ 374,121 (1) Included in restricted cash and investments within the condensed consolidated balance sheets is restricted cash of $11.5 million and $124.3 million as of June 30, 2021 and December 31, 2020, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction. |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s investments at June 30, 2021 and December 31, 2020 measured at fair value on a recurring basis by fair value hierarchy level (in thousands): June 30, 2021 December 31, 2020 Total Total Recorded Recorded Basis Level 1 Level 2 Level 3 Other (1) Basis Level 1 Level 2 Level 3 Other (1) Cash equivalents: Money market funds $ 1,149 $ — $ — $ — $ 1,149 $ 42,007 $ — $ — $ — $ 42,007 Investments: Corporate bonds 48,784 — 48,784 — — 51,802 — 51,802 — — Asset backed securities 36,936 — 36,936 — — 36,802 — 36,802 — — Mortgage backed securities 11,467 — 11,467 — — 4,391 — 4,391 — — U.S. government agency securities 7,982 — 7,982 — — 8,148 — 8,148 — — U.S. treasuries 2,115 — 2,115 — — 101 — 101 — — Restricted cash and investments: Corporate bonds 184,814 — 184,814 — — 92,993 — 92,993 — — Mortgage backed securities 89,758 — 89,758 — — 51,151 — 51,151 — — U.S. treasuries 69,372 — 69,372 — — 4,390 — 4,390 — — U.S. government agency securities 36,817 — 36,817 — — 32,203 — 32,203 — — Mutual funds 6,121 6,121 — — — 5,036 5,036 — — — Money market funds 396 — — — 396 40,059 — — — 40,059 Asset backed securities 205 — 205 — — 260 — 260 — — Supranational bonds — — — — — 4,778 — 4,778 — — Total investments $ 495,916 $ 6,121 $ 488,250 $ — $ 1,545 $ 374,121 $ 5,036 $ 287,019 $ — $ 82,066 (1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice. |
Summary of Contractual Maturities of Available for Sale Securities | The following table summarizes the contractual maturities of the Company’s available-for-sale securities at June 30, 2021 and December 31, 2020. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. June 30, 2021 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 24,506 $ 67,063 $ 142,029 $ — $ 233,598 U.S. treasuries 1,010 424 70,053 — 71,487 U.S. government agency securities 1,002 18,413 25,384 — 44,799 Asset backed securities — 209 2,201 34,731 37,141 Money market funds $ 1,545 $ — $ — $ — $ 1,545 Total $ 28,063 $ 86,109 $ 239,667 $ 34,731 $ 388,570 December 31, 2020 (In thousands) Less than 1 Year Between 1 to 5 Years Between 5 to 10 Years After 10 Years Total Corporate bonds $ 49,308 $ 61,315 $ 34,172 $ — $ 144,795 Money market funds 82,066 — — — 82,066 U.S. government agency securities 1,013 18,668 20,670 — 40,351 Asset backed securities 2 267 — 36,793 37,062 Supranational bonds 4,778 — — — 4,778 U.S. treasuries 1,367 1,504 1,620 — 4,491 Total $ 138,534 $ 81,754 $ 56,462 $ 36,793 $ 313,543 |
Workers' Compensation Claims (T
Workers' Compensation Claims (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Summarizes Aggregate Workers' Compensation Reserve Activity | The following table summarizes the aggregate workers’ compensation reserve activity (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Beginning balance Workers' compensation claims liabilities $ 362,663 $ 445,310 $ 357,746 $ 438,986 Add: claims expense accrual Current period 35,743 32,729 69,013 71,221 Prior periods (5,483 ) (1,373 ) (6,663 ) (2,186 ) 30,260 31,356 62,350 69,035 Less: claim payments related to Current period 3,927 4,527 4,979 6,077 Prior periods (1) 73,240 135,853 99,005 165,530 77,167 140,380 103,984 171,607 Change in claims incurred in excess of retention limits (23 ) 218 (379 ) 90 Ending balance Workers' compensation claims liabilities $ 315,733 $ 336,504 $ 315,733 $ 336,504 Incurred but not reported (IBNR) $ 190,818 $ 206,521 $ 190,818 $ 206,521 Ratio of IBNR to workers' compensation claims liabilities 60 % 61 % 60 % 61 % (1) |
Summary of Risk Retained by Insured Program after Considering Loss Portfolio Transfers and Current Insurance Arrangements | The following is a summary of the risk retained by the Company under its insured program after considering the effects of the loss portfolio transfers and current insurance arrangements: Year Claims risk retained 2014 No 2015 No 2016 No 2017 No 2018 (1) No 2019 (1) Yes 2020 Yes 2021 - Through June 30 Yes 2021 - July 1 and after No (1) LPT 2 excluded approximately 10% of claims from 2018 and included an approximately offsetting amount of claims from 2019. |
Basis of Presentation of Inte_4
Basis of Presentation of Interim Period Statements - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2021USD ($)Company | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Revenue recognition professional employer service contracts term | 1 year | ||
Professional employer service contract cancellation and termination period | 30 days | ||
Payment term for staffing customers | 30 days | ||
Number of wholly-owned insurance companies | Company | 2 | ||
Cash and cash equivalents, maturity term | 3 months | ||
Allowance for doubtful accounts | $ 761,000 | $ 757,000 | |
Estimate of liability for unpaid safety incentives | 6,900,000 | $ 18,800,000 | |
Income taxes paid | $ 210,000 | $ 0 |
Basis of Presentation of Inte_5
Basis of Presentation of Interim Period Statements - Schedule of Reconciles of Cash, Cash Equivalents and Restricted Cash Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 2,469 | $ 68,688 | $ 62,210 | $ 44,570 |
Restricted cash, included in restricted cash and investments | 11,694 | 165,149 | 93,320 | 228,771 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 14,163 | $ 233,837 | $ 155,530 | $ 273,341 |
Basis of Presentation of Inte_6
Basis of Presentation of Interim Period Statements - Summary of Basic and Diluted Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted Average Number Of Shares Outstanding Diluted Disclosure Items [Abstract] | ||||
Weighted average number of basic shares outstanding | 7,554 | 7,557 | 7,565 | 7,539 |
Effect of dilutive securities | 91 | 90 | 93 | 139 |
Weighted average number of diluted shares outstanding | 7,645 | 7,647 | 7,658 | 7,678 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | $ 489,744 | $ 363,671 |
Gross Unrealized Gains (Losses) | 6,172 | 10,450 |
Recorded Basis | 495,916 | 374,121 |
Investments Current [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 1,149 | 42,007 |
Recorded Basis | 1,149 | 42,007 |
Investments Current [Member] | Cash and Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 1,149 | 42,007 |
Recorded Basis | 1,149 | 42,007 |
Investments Current [Member] | Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 106,268 | 99,729 |
Gross Unrealized Gains (Losses) | 1,016 | 1,515 |
Recorded Basis | 107,284 | 101,244 |
Investments Current [Member] | Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 48,243 | 50,918 |
Gross Unrealized Gains (Losses) | 541 | 884 |
Recorded Basis | 48,784 | 51,802 |
Investments Current [Member] | Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 36,943 | 36,948 |
Gross Unrealized Gains (Losses) | (7) | (146) |
Recorded Basis | 36,936 | 36,802 |
Investments Current [Member] | Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 7,389 | 7,396 |
Gross Unrealized Gains (Losses) | 593 | 752 |
Recorded Basis | 7,982 | 8,148 |
Investments Current [Member] | Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 2,101 | 100 |
Gross Unrealized Gains (Losses) | 14 | 1 |
Recorded Basis | 2,115 | 101 |
Investments Current [Member] | Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 11,592 | 4,367 |
Gross Unrealized Gains (Losses) | (125) | 24 |
Recorded Basis | 11,467 | 4,391 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 382,327 | 221,935 |
Gross Unrealized Gains (Losses) | 5,156 | 8,935 |
Recorded Basis | 387,483 | 230,870 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 396 | 40,063 |
Gross Unrealized Gains (Losses) | (4) | |
Recorded Basis | 396 | 40,059 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 183,186 | 88,902 |
Gross Unrealized Gains (Losses) | 1,628 | 4,091 |
Recorded Basis | 184,814 | 92,993 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 203 | 256 |
Gross Unrealized Gains (Losses) | 2 | 4 |
Recorded Basis | 205 | 260 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 34,908 | 29,737 |
Gross Unrealized Gains (Losses) | 1,909 | 2,466 |
Recorded Basis | 36,817 | 32,203 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 69,225 | 4,371 |
Gross Unrealized Gains (Losses) | 147 | 19 |
Recorded Basis | 69,372 | 4,390 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 88,288 | 48,795 |
Gross Unrealized Gains (Losses) | 1,470 | 2,356 |
Recorded Basis | 89,758 | 51,151 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 6,121 | 5,036 |
Recorded Basis | $ 6,121 | 5,036 |
Investments Noncurrent [Member] | Restricted Cash and Investments [Member] | Supranational Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cost | 4,775 | |
Gross Unrealized Gains (Losses) | 3 | |
Recorded Basis | $ 4,778 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Investments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Restricted cash | $ 11.5 | $ 124.3 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 495,916 | $ 374,121 |
Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,545 | 82,066 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 6,121 | 5,036 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 488,250 | 287,019 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,149 | 42,007 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 1,149 | 42,007 |
Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 48,784 | 51,802 |
Investments [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 48,784 | 51,802 |
Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 11,467 | 4,391 |
Investments [Member] | Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 11,467 | 4,391 |
Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 2,115 | 101 |
Investments [Member] | U.S. Treasuries [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 2,115 | 101 |
Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 7,982 | 8,148 |
Investments [Member] | U.S. Government Agency Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 7,982 | 8,148 |
Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 36,936 | 36,802 |
Investments [Member] | Asset Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 36,936 | 36,802 |
Restricted Cash and Investments [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 396 | 40,059 |
Restricted Cash and Investments [Member] | Money Market Funds [Member] | Other [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 396 | 40,059 |
Restricted Cash and Investments [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 184,814 | 92,993 |
Restricted Cash and Investments [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 184,814 | 92,993 |
Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 89,758 | 51,151 |
Restricted Cash and Investments [Member] | Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 89,758 | 51,151 |
Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 69,372 | 4,390 |
Restricted Cash and Investments [Member] | U.S. Treasuries [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 69,372 | 4,390 |
Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 36,817 | 32,203 |
Restricted Cash and Investments [Member] | U.S. Government Agency Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 36,817 | 32,203 |
Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 205 | 260 |
Restricted Cash and Investments [Member] | Asset Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 205 | 260 |
Restricted Cash and Investments [Member] | Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 6,121 | 5,036 |
Restricted Cash and Investments [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 6,121 | 5,036 |
Restricted Cash and Investments [Member] | Supranational Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | 4,778 | |
Restricted Cash and Investments [Member] | Supranational Bonds [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Recorded Basis | $ 4,778 |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Contractual Maturities of Available for Sale Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | $ 28,063 | $ 138,534 |
Available for sale securities, contractual maturities between 1 to 5 years | 86,109 | 81,754 |
Available for sale securities, contractual maturities between 5 to 10 years | 239,667 | 56,462 |
Available for sale securities, contractual maturities after 10 years | 34,731 | 36,793 |
Available for sale securities, contractual maturities, Total | 388,570 | 313,543 |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 24,506 | 49,308 |
Available for sale securities, contractual maturities between 1 to 5 years | 67,063 | 61,315 |
Available for sale securities, contractual maturities between 5 to 10 years | 142,029 | 34,172 |
Available for sale securities, contractual maturities, Total | 233,598 | 144,795 |
Money Market Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 1,545 | 82,066 |
Available for sale securities, contractual maturities, Total | 1,545 | 82,066 |
U.S. Government Agency Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 1,002 | 1,013 |
Available for sale securities, contractual maturities between 1 to 5 years | 18,413 | 18,668 |
Available for sale securities, contractual maturities between 5 to 10 years | 25,384 | 20,670 |
Available for sale securities, contractual maturities, Total | 44,799 | 40,351 |
Asset Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 2 | |
Available for sale securities, contractual maturities between 1 to 5 years | 209 | 267 |
Available for sale securities, contractual maturities between 5 to 10 years | 2,201 | |
Available for sale securities, contractual maturities after 10 years | 34,731 | 36,793 |
Available for sale securities, contractual maturities, Total | 37,141 | 37,062 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 1,010 | 1,367 |
Available for sale securities, contractual maturities between 1 to 5 years | 424 | 1,504 |
Available for sale securities, contractual maturities between 5 to 10 years | 70,053 | 1,620 |
Available for sale securities, contractual maturities, Total | $ 71,487 | 4,491 |
Supranational Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities, contractual maturities less than 1 year | 4,778 | |
Available for sale securities, contractual maturities, Total | $ 4,778 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Average contractual maturity period | 23 years | 17 years |
Workers' Compensation Claims -
Workers' Compensation Claims - Summarizes Aggregate Workers' Compensation Reserve Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Workers Compensation Reserve [Abstract] | ||||
Workers' compensation claims liabilities, Beginning balance | $ 362,663 | $ 445,310 | $ 357,746 | $ 438,986 |
Add: claims expense accrual | ||||
Current period | 35,743 | 32,729 | 69,013 | 71,221 |
Prior periods | (5,483) | (1,373) | (6,663) | (2,186) |
Total expense accrual | 30,260 | 31,356 | 62,350 | 69,035 |
Less: claim payments related to | ||||
Current period | 3,927 | 4,527 | 4,979 | 6,077 |
Prior periods | 73,240 | 135,853 | 99,005 | 165,530 |
Total paid | 77,167 | 140,380 | 103,984 | 171,607 |
Change in claims incurred in excess of retention limits | (23) | 218 | (379) | 90 |
Workers' compensation claims liabilities, Ending balance | 315,733 | 336,504 | 315,733 | 336,504 |
Incurred but not reported (IBNR) | $ 190,818 | $ 206,521 | $ 190,818 | $ 206,521 |
Ratio of IBNR to workers' compensation claims liabilities | 60.00% | 61.00% | 60.00% | 61.00% |
Workers' Compensation Claims _2
Workers' Compensation Claims - Summarizes Aggregate Workers' Compensation Reserve Activity (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Third-party Insurance Carrier [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claim payments related to prior period includes amount payable | $ 47.4 |
Workers' Compensation Claims _3
Workers' Compensation Claims - Additional Information (Detail) - USD ($) | Jul. 01, 2021 | Jun. 29, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Description of renewed agreement | The Company entered into a new arrangement for its insured program effective July 1, 2021 whereby third-party insurers assume all risk of loss for claims incurred after June 30, 2021. The agreement continues to June 30, 2022 and includes a renewal commitment through June 30, 2023. The arrangement allows for premium adjustments depending on overall portfolio performance. If claims develop favorably, BBSI can participate in the savings up to $20.0 million for a twelve-month policy period. If claims develop adversely, additional premium may be charged up to $7.5 million for a twelve-month policy period. | |||||||
Maximum savings amount for twelve month policy period, if claims develop favorably | $ 20,000,000 | |||||||
Maximum additional premium charged amount for twelve month policy period, if claims develop adversely | 7,500,000 | |||||||
Balance in Chubb trust accounts | $ 115,700,000 | 376,600,000 | $ 290,700,000 | |||||
Workers compensation liability | 315,733,000 | $ 336,504,000 | 357,746,000 | $ 362,663,000 | $ 445,310,000 | $ 438,986,000 | ||
Workers compensation liability, current | 86,047,000 | 102,040,000 | ||||||
Collateral securities maintain to cover potential workers compensation claims losses | 58,400,000 | 60,100,000 | ||||||
Surety bonds and standby letters of credit | 58,400,000 | |||||||
Reserves incurred in excess of retention limits | 2,500,000 | 2,900,000 | ||||||
Other Assets [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accrual for costs incurred in excess of retention limits offset by a receivable | $ 2,500,000 | $ 2,900,000 | ||||||
Insured Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of worker's compensation exposure covered | 82.00% | |||||||
Worker's compensation risk claim maximum | $ 5,000,000 | |||||||
Workers compensation liability | $ 53,100,000 | |||||||
Workers compensation liability, current | $ 5,000,000 | |||||||
Insured Program [Member] | Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Worker's compensation risk claim maximum | $ 3,000,000 | |||||||
Self Insured Programs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of worker's compensation exposure covered | 18.00% | |||||||
Worker's compensation risk claim maximum | $ 3,000,000 | 5,000,000 | ||||||
Self Insured Programs [Member] | Maryland [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reinsurance coverage | 1,000,000 | 1,000,000 | ||||||
Self Insured Programs [Member] | Colorado [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reinsurance coverage | $ 2,000,000 | $ 2,000,000 |
Worker's Compensation Claims -
Worker's Compensation Claims - Summary of Risk Retained by Insured Program after Considering Loss Portfolio Transfers and Current Insurance Arrangements (Details) | 12 Months Ended |
Jun. 30, 2021 | |
2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
2015 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
2017 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | Yes |
2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | Yes |
2021 - Through June 30 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | Yes |
2021 - July 1 and after [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Claims risk retained | No |
Worker's Compensation Claims _2
Worker's Compensation Claims - Summary of Risk Retained by Insured Program after Considering Loss Portfolio Transfers and Current Insurance Arrangements (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Percentage of claim excluded | 10.00% |
Revolving Credit Facility and_2
Revolving Credit Facility and Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 29, 2020 | |
Line of Credit Facility [Line Items] | ||||||||
Balance in Chubb trust accounts | $ 376,600,000 | $ 376,600,000 | $ 290,700,000 | $ 115,700,000 | ||||
Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing used | 6,200,000 | $ 6,200,000 | ||||||
Line of credit facility commitment fee description | The Agreement also provides for an unused commitment fee of 0.375% per year on the average daily unused amount of the revolving credit line, as well as a fee of 1.75% of the face amount of each letter of credit reserved under the line of credit. | |||||||
Outstanding balance on term loan and revolving credit facility | $ 0 | $ 0 | 0 | |||||
Balance in Chubb trust accounts | $ 25,000,000 | |||||||
Ratio of restricted and unrestricted cash and investments to workers' compensation and claim liabilities | 1.00% | 1.00% | ||||||
Dividends or distributions paid | 0 | |||||||
Maximum amount to redeem retire repurchase or acquire stock upon agreement | 15,000,000 | |||||||
Agreement [Member] | Scenario Forecast [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Ratio of restricted and unrestricted cash and investments to workers' compensation and claim liabilities | 1.00% | 1.00% | ||||||
Agreement [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
EBITDA | $ 30,000,000 | $ 30,000,000 | 30,000,000 | |||||
Agreement [Member] | Minimum [Member] | Scenario Forecast [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
EBITDA | $ 30,000,000 | $ 30,000,000 | ||||||
Agreement [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Prohibition on incurring additional indebtedness without the prior approval of the Bank in purchase money financing | 1,000,000 | |||||||
Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | 33,000,000 | $ 33,000,000 | ||||||
Unused commitment fee on unused amount during period | 0.375% | |||||||
Agreement [Member] | Revolving Credit Facility [Member] | Daily Floating Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | the daily floating rate of one-month LIBOR plus 1.75% or (b) the fixed rate of LIBOR plus 1.75% | |||||||
LIBOR plus rate | 1.75% | |||||||
Agreement [Member] | Revolving Credit Facility [Member] | Fixed Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | the fixed rate of LIBOR plus 1.75% | |||||||
LIBOR plus rate | 1.75% | |||||||
Agreement [Member] | Standby Letters of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | 8,000,000 | $ 8,000,000 | ||||||
Agreement [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused commitment fee on unused amount | 1.75% | |||||||
Agreement [Member] | Chubb Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing capacity | 63,700,000 | $ 63,700,000 | ||||||
Collateral transferred | $ 38,700,000 | |||||||
Agreement [Member] | Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan from Bank, Interest rate description | one-month LIBOR plus 2.0% | |||||||
Term loan with principal bank | $ 3,600,000 | $ 3,600,000 | $ 3,700,000 | |||||
Payment of monthly principal of term loan | $ 18,375 | |||||||
Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
LIBOR plus rate | 2.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - Internal Revenue Service [Member] - USD ($) | 1 Months Ended | 6 Months Ended |
Jul. 31, 2020 | Jun. 30, 2021 | |
Income Tax Contingency [Line Items] | ||
Open tax years | 2011 2012 2013 2014 | |
Wage based tax credits claimed amount to be disallowed results estimated additional tax due | $ 2,300,000 | |
Wage-based tax credits claimed amount disallowed, tax years | 2012 through 2015 | |
Reserve for tax position | $ 0 | |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Ongoing audit for tax years | 2011 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Ongoing audit for tax years | 2014 |
Litigation - Additional Informa
Litigation - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accrued Liabilities [Member] | |
Loss Contingencies [Line Items] | |
Estimated liability | $ 3.8 |
Kaanaana Case [Member] | |
Loss Contingencies [Line Items] | |
Actual Wages Paid | $ 2.2 |