Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | TRINET GROUP INC | |
Trading Symbol | TNET | |
Entity Central Index Key | 937,098 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 69,485,274 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 263,527 | $ 184,004 |
Restricted cash and cash equivalents | 15,445 | 14,569 |
Prepaid income taxes | 0 | 42,381 |
Prepaid expenses | 11,013 | 10,784 |
Other current assets | 2,360 | 2,145 |
Worksite employee related assets | 941,213 | 1,281,471 |
Total current assets | 1,233,558 | 1,535,354 |
Workers' compensation collateral receivable | 39,931 | 31,883 |
Restricted cash and available for sale investments | 160,207 | 130,501 |
Property and equipment, net | 68,470 | 58,622 |
Goodwill | 289,207 | 289,207 |
Other intangible assets, net | 27,108 | 31,074 |
Other assets | 18,444 | 18,502 |
Total assets | 1,836,925 | 2,095,143 |
Current liabilities: | ||
Accounts payable | 28,995 | 22,541 |
Accrued corporate wages | 31,814 | 30,937 |
Notes and capital leases payable, net | 36,718 | 36,559 |
Other current liabilities | 14,321 | 12,551 |
Worksite employee related liabilities | 934,868 | 1,275,995 |
Total current liabilities | 1,046,716 | 1,378,583 |
Notes and capital leases payable, net, noncurrent | 394,972 | 422,495 |
Workers' compensation loss reserves (net of collateral paid of $20,307 and $22,377 at September 30, 2017 and December 31, 2016, respectively) | 157,999 | 159,301 |
Deferred income taxes | 90,845 | 92,373 |
Other liabilities | 14,534 | 7,801 |
Total liabilities | 1,705,066 | 2,060,553 |
Commitments and contingencies (see Note 9) | ||
Stockholders’ equity: | ||
Preferred stock ($0.000025 par value per share; 20,000,000 shares authorized; no shares issued and outstanding at September 30, 2017 and December 31, 2016) | 0 | 0 |
Common stock and additional paid-in capital ($0.000025 par value per share; 750,000,000 shares authorized; 69,536,268 and 69,015,690 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively) | 567,971 | 535,132 |
Accumulated deficit | (435,739) | (499,938) |
Accumulated other comprehensive loss | (373) | (604) |
Total stockholders’ equity | 131,859 | 34,590 |
Total liabilities and stockholders’ equity | $ 1,836,925 | $ 2,095,143 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, per share stated value | $ 0.000025 | $ 0.000025 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, per share stated value | $ 0.000025 | $ 0.000025 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 69,536,268 | 69,015,690 |
Common stock, shares outstanding | 69,536,268 | 69,015,690 |
Collateral paid to insurance carriers, net of workers' compensation loss reserves, noncurrent | $ 20,307 | $ 22,377 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Professional service revenues | $ 112,530 | $ 110,493 | $ 341,293 | $ 332,489 |
Insurance service revenues | 706,763 | 659,964 | 2,086,151 | 1,916,753 |
Total revenues | 819,293 | 770,457 | 2,427,444 | 2,249,242 |
Costs and operating expenses: | ||||
Insurance costs | 613,397 | 609,422 | 1,821,574 | 1,775,784 |
Cost of providing services (exclusive of depreciation and amortization of intangible assets) | 49,989 | 50,142 | 157,264 | 139,881 |
Sales and marketing | 44,407 | 41,470 | 139,538 | 133,978 |
General and administrative | 28,505 | 22,477 | 82,031 | 69,078 |
Systems development and programming costs | 11,182 | 8,124 | 33,637 | 20,970 |
Amortization of intangible assets | 1,300 | 4,662 | 3,966 | 14,647 |
Depreciation | 7,754 | 5,188 | 20,353 | 13,663 |
Total costs and operating expenses | 756,534 | 741,485 | 2,258,363 | 2,168,001 |
Operating income | 62,759 | 28,972 | 169,081 | 81,241 |
Other income (expense): | ||||
Interest expense and bank fees | (5,425) | (5,597) | (15,030) | (15,677) |
Other, net | 770 | 313 | 1,192 | 434 |
Income before provision for income taxes | 58,104 | 23,688 | 155,243 | 65,998 |
Income tax expense | 15,268 | 9,107 | 43,719 | 27,558 |
Net income | 42,836 | 14,581 | 111,524 | 38,440 |
Other comprehensive income, net of tax | 151 | (125) | 231 | 300 |
Comprehensive income | $ 42,987 | $ 14,456 | $ 111,755 | $ 38,740 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.62 | $ 0.21 | $ 1.62 | $ 0.55 |
Diluted (in dollars per share) | $ 0.60 | $ 0.20 | $ 1.57 | $ 0.53 |
Weighted average shares: | ||||
Basic (in shares) | 69,498,218 | 70,187,989 | 69,016,054 | 70,478,266 |
Diluted (in shares) | 71,499,591 | 71,964,603 | 71,138,743 | 72,126,060 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income | $ 111,524 | $ 38,440 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,177 | 27,810 |
Stock-based compensation | 21,406 | 20,169 |
Changes in operating assets and liabilities: | ||
Restricted cash and cash equivalents | (45,570) | (31,409) |
Prepaid income taxes | 42,448 | 386 |
Prepaid expenses and other current assets | (961) | (5,253) |
Workers' compensation collateral receivable | (8,048) | (11,374) |
Other assets | 925 | 438 |
Accounts payable | 5,505 | 4,538 |
Accrued corporate wages and other current liabilities | 2,331 | 4,548 |
Workers' compensation loss reserves and other non-current liabilities | 3,574 | 33,510 |
Worksite employee related assets | 340,767 | 525,841 |
Worksite employee related liabilities | (341,127) | (526,945) |
Net cash provided by operating activities | 158,951 | 80,699 |
Investing activities | ||
Acquisitions of businesses | 0 | (300) |
Purchases of marketable securities | 0 | (14,959) |
Proceeds from maturity of marketable securities | 14,447 | 25,790 |
Acquisitions of property and equipment | (29,210) | (27,942) |
Net cash used in investing activities | (14,763) | (17,411) |
Financing activities | ||
Repurchase of common stock | (39,347) | (43,747) |
Proceeds from issuance of common stock on exercised options | 8,678 | 3,584 |
Proceeds from issuance of common stock on employee stock purchase plan | 2,441 | 2,304 |
Awards effectively repurchased for required employee withholding taxes | (8,100) | (2,672) |
Proceeds from issuance of notes payable | 0 | 57,978 |
Payments for extinguishment of debt | 0 | (57,563) |
Repayment of notes and capital leases payable | (28,735) | (27,506) |
Payment of debt issuance costs | 0 | (1,376) |
Net cash used in financing activities | (65,063) | (68,998) |
Effect of exchange rate changes on cash and cash equivalents | 398 | 90 |
Net increase in cash and cash equivalents | 79,523 | (5,620) |
Cash and cash equivalents at beginning of period | 184,004 | 166,178 |
Cash and cash equivalents at end of period | 263,527 | 160,558 |
Supplemental disclosures of cash flow information | ||
Interest paid | 12,186 | 11,651 |
Income taxes paid (refunded), net | (138) | 27,650 |
Supplemental schedule of noncash investing and financing activities | ||
Payable for purchase of property and equipment | $ 2,450 | $ 1,363 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business TriNet Group Inc. (TriNet, or the Company, we, our and us), a professional employer organization (PEO) founded in 1988, provides comprehensive human resources (HR) solutions for small to midsize businesses (SMBs) under a co-employment model. These HR solutions include bundled services, such as multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers' compensation insurance and claims management, employment and benefit law compliance, and other services. Through the co-employment relationship, we are the employer of record for most administrative and regulatory purposes, including: • compensation through wages and salaries, • employer payroll-related taxes payment, • employee payroll-related taxes withholding and payment, • employee benefit programs including health and life insurance, and others, and • workers' compensation coverage. Our clients are responsible for the day-to-day job responsibilities of the worksite employees (WSEs). We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of revenue is generated outside of the U.S. Basis of Presentation These unaudited condensed consolidated financial statements (Financial Statements) and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the third quarter of 2017 are not necessarily indicative of the operating results anticipated for the full year. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2016 ( 2016 Form 10-K). Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. Significant estimates include: • liability for unpaid losses and loss adjustment expenses (loss reserves) related to workers' compensation and workers' compensation collateral receivable, • health insurance loss reserves, • liability for insurance premiums payable, • impairments of goodwill and other intangible assets, • income tax assets and liabilities, and • liability for legal contingencies. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. Recent Accounting Pronouncements Recently adopted accounting guidance Share-based payments - In March 2016, the FASB issued ASU 2016-09- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , as part of the Simplification Initiative to simplify certain aspects of the accounting for share-based payment transactions to employees. The new standard requires excess tax benefits and tax deficiencies to be recorded in the statements of income as a component of the provision for income taxes when stock awards vest or are settled. In addition, it eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the condensed consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur, allows us to withhold more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flows statement. The new standard was effective for us beginning January 1, 2017. Upon adoption, excess tax benefits or deficiencies from share-based award activity were reflected in the condensed consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in equity. We also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of ASU 2016-09 resulted in a net cumulative-effect adjustment of $0.3 million , reflected as an increase to retained earnings as of January 1, 2017, mostly related to the recognition of the previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as an increase to deferred tax assets. We adopted the aspects of the standard affecting the cash flow presentation retrospectively, and accordingly, to conform to the current year presentation, we reclassified $2.6 million of tax deficiencies under financing activities to operating activities for the period ended September 30, 2016 , on our condensed consolidated statements of cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on our condensed consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. Recently issued accounting pronouncements Lease arrangements - In February 2016, the FASB issued ASU 2016-02- Leases. The amendment requires that lease arrangements longer than 12 months result in an entity recognizing lease assets and lease liabilities. Most significant impact is on those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018. We currently anticipate adoption of the new standard effective January 1, 2019. We anticipate this standard will have a material impact on our condensed consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for equipment, office and data-center operating leases. Financial Instruments - In January 2016, the FASB issued ASU 2016-01- Recognition and Measurement of Financial Assets and Financial Liabilities . The amendment addresses various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. We are currently in the process of evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Revenue Recognition - In May 2014, the FASB issued ASU 2014-09- Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance under GAAP. The core principle of the guidance is that an entity should recognize revenue for the transfer of promised goods or services to customers that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB deferred the effective date to annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption at the original effective date of December 15, 2016 is permitted. The amendments may be applied retrospectively or as a cumulative-effect adjustment as of the date of adoption. In March, April and May 2016, the FASB issued ASU 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Identifying Performance Obligations and Licensing, ASU 2016-12 Narrow-Scope Improvements and Practical Expedients and ASU 2016-20 Technical Corrections and Improvements, respectively, providing further clarification to be considered when implementing ASU 2014-09. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). We currently anticipate adopting the new standard effective beginning January 1, 2018 using the modified retrospective method. Under the modified retrospective method, the new standard will be applied to all contracts initiated on or after the effective date. For contracts with remaining obligations as of the effective date, opening retained earnings will be adjusted for the cumulative effect of the change to the new standard as of the effective date. We anticipate this standard will have a material impact on our condensed consolidated financial statements. While we do not anticipate this standard will result in a material adjustment to beginning balance retained earnings, we do anticipate this standard will have a material impact on our condensed consolidated financial statements on a prospective basis. Specifically, we currently believe the adoption will have a material impact on our accounting for sales commission expense, deferred revenue, income tax provision and deferred taxes. We anticipate that certain client acquisition costs will be deferred over the expected client tenure. We expect our professional service revenues and insurance service revenues will remain substantially unchanged. The actual revenue recognition treatment required under the standard will be dependent on contract specific terms, and may vary in some instances from recognition at the time of billing. At the date of adoption, we expect to record a net cumulative effect adjustment in retained earnings associated with unamortized deferred revenue and sales commission related to any open customer contracts as of adoption date. Statement of Cash Flows - In November and August 2016, the FASB issued (ASU) 2016-18 - Statement of Cash Flows (Topic 230): Restricted Cash and 2016-15- Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how restricted cash and other certain transactions are classified in the statement of cash flows. The amendments are effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. As of September 30, 2017 and December 31, 2016 , we had total restricted cash, restricted cash equivalents and payroll funds collected of $748.5 million and $1.0 billion , respectively. Currently, changes in these balances are presented as operating cash activities in the condensed consolidated statements of cash flows. Under the new guidance, changes in these amounts will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows. Although there are several other new accounting pronouncements issued or proposed by the FASB, which we have adopted or will adopt, as applicable, we do not believe any of these other accounting pronouncements have had or will have a material impact on its consolidated financial position, operating results or statements of cash flows. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | CASH, CASH EQUIVALENTS AND INVESTMENTS Under the terms of the agreements with certain of our workers' compensation and health benefit insurance carriers, we are required to maintain collateral in trust accounts for the benefit of specified insurance carriers and to reimburse the carriers’ claim payments within our deductible layer. We invest a portion of the collateral amounts in marketable securities. We report the current portion of these trust accounts as restricted cash and cash equivalents in WSE related assets, and the long-term portion as restricted cash, cash equivalents and investments on the condensed consolidated balance sheets. We require our clients to prefund their payroll and related taxes and other withholding liabilities before payroll is processed or due for payment. These amounts that are prefunded by clients are included in WSE related assets as payroll funds collected and are designated to pay pending payrolls and other WSE related liabilities. Our total corporate and WSE related cash, cash equivalents and investments are summarized below: September 30, 2017 December 31, 2016 (in thousands) Cash and cash equivalents Available for sale marketable securities Certificate of deposits Total Cash and cash equivalents Available for sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 263,527 $ — $ — $ 263,527 $ 184,004 $ — $ — $ 184,004 Restricted cash and cash equivalents 15,445 — — 15,445 14,569 — — 14,569 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 123,366 36,841 — 160,207 78,672 51,829 — 130,501 Worksite employee related assets Restricted cash, cash equivalents and investments, current Collateral for health benefits claims 68,907 — — 68,907 65,022 — — 65,022 Collateral for workers' compensation claims 85,284 508 — 85,792 64,773 — — 64,773 Collateral to secure standby letter of credit — — 2,324 2,324 — — 2,320 2,320 Total WSE related restricted cash, cash equivalents and investments, current 154,191 508 2,324 157,023 129,795 — 2,320 132,115 Payroll funds collected 455,494 — — 455,494 825,958 — — 825,958 Total $ 1,012,023 $ 37,349 $ 2,324 $ 1,051,696 $ 1,232,998 $ 51,829 $ 2,320 $ 1,287,147 |
Worksite Employee Related Asset
Worksite Employee Related Assets and Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Other Industries [Abstract] | |
Worksite Employee Related Assets and Liabilities | WORKSITE EMPLOYEE RELATED ASSETS AND LIABILITIES WSE related assets and WSE related liabilities are intended to be reviewed together when considering the financial position of the Company. Our clients direct the price and service specifications for payroll and payroll taxes and as a result, we are not the primary obligor for payroll and payroll tax payments and therefore record these amounts net in our statements of income and comprehensive income. However, we record without offset, accrued wages and payroll tax liabilities for WSEs in WSE related liabilities with the related payroll funds collected and unbilled revenues in WSE related assets. We have classified these assets and liabilities and other service related amounts collectively as WSE related, to present a clearer picture of the inter-relationship of the balances and distinguish these from our other corporate assets and liabilities. In addition to unbilled revenues, accrued wages and payroll tax liabilities, other significant balances included in the WSE related assets and liabilities include: • Payroll funds collected, which represents cash collected from clients in advance to fund payroll and payroll taxes, and other payroll related liabilities; • Other payroll assets, which primarily include payroll tax receivables; • Client deposits, which represents indemnity guarantee payments received from clients and collections from clients in excess of payroll and other payroll related liabilities; • Other payroll withholdings, which primarily includes withholdings under 401(k) plans and flexible benefit plans. (in thousands) September 30, December 31, Worksite employee related assets: Restricted cash, cash equivalents and investments $ 157,023 $ 132,115 Payroll funds collected 455,494 825,958 Unbilled revenue (net of advance collections of $10,038 284,136 293,192 Accounts receivable (net of allowance for doubtful accounts of 5,912 4,854 Prepaid insurance premiums 27,200 12,805 Workers' compensation collateral receivable 1,417 2,136 Other payroll assets 10,031 10,411 Total worksite employee related assets $ 941,213 $ 1,281,471 Worksite employee related liabilities: Accrued wages $ 274,123 $ 272,966 Client deposits 28,096 56,182 Payroll tax liabilities 368,207 692,460 Unpaid losses and loss adjustment expenses (less than 1 year): Health benefits loss reserves 129,681 129,430 Workers' compensation loss reserves (net of collateral paid of $7,105 and $9,234 at September 30, 2017 and December 31, 2016, respectively) 63,683 63,702 Insurance premiums and other payables 25,654 14,223 Other payroll withholdings 45,424 47,032 Total worksite employee related liabilities $ 934,868 $ 1,275,995 Included in the payroll tax liabilities and insurance premiums and other payables were amounts relating to approximately 2,700 and 2,600 corporate employees at September 30, 2017 and December 31, 2016 , respectively. |
Workers Compensation Assets and
Workers Compensation Assets and Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Workers Compensation Assets and Liabilities | WORKERS' COMPENSATION LOSS RESERVES The following table summarizes the workers’ compensation loss reserve activity for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended Nine Months Ended (in thousands) 2017 2016 2017 2016 Total loss reserves, beginning of period $ 254,684 $ 214,711 $ 254,614 $ 190,102 Incurred Current year 22,618 26,717 69,745 78,063 Prior years (4,294 ) 4,947 (2,797 ) 12,951 Total incurred 18,324 31,664 66,948 91,014 Paid Current year (3,464 ) (6,738 ) (9,101 ) (9,016 ) Prior years (20,450 ) (17,130 ) (63,367 ) (49,593 ) Total paid (23,914 ) (23,868 ) (72,468 ) (58,609 ) Total loss reserves, end of period $ 249,094 $ 222,507 $ 249,094 $ 222,507 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in thousands) September 30, December 31, Total loss reserves, end of period $ 249,094 $ 254,614 Collateral paid to carriers and offset against loss reserves (27,412 ) (31,611 ) Total loss reserves, net of carrier collateral offset $ 221,682 $ 223,003 Payable in less than 1 year (1) $ 63,683 $ 63,702 Payable in more than 1 year 157,999 159,301 Total loss reserves, net of carrier collateral offset $ 221,682 $ 223,003 (1) Included in WSE related liabilities within Note 3 to these condensed consolidated financial statements. Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three and the nine months ended September 30, 2017 , the change was primarily due to favorable claims development associated with our non-office WSEs in recent accident years. As of September 30, 2017 and December 31, 2016 , we had $68.8 million and $65.6 million , respectively, of collateral held by insurance carriers of which $27.4 million and $31.6 million , respectively, was offset against workers' compensation loss reserves as the agreements permit and are net settled of insurance obligations against collateral held. Collateral paid to each carrier for a policy year in excess of our loss reserves is recorded as workers' compensation collateral receivable. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments and Fair Value Measurements | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Cash, Cash equivalents and Restricted Investments We classify our cash, cash equivalents and restricted investments in marketable securities within Level I in the fair value hierarchy because we use quoted market prices to determine the fair value. We classify our certificates of deposit within Level II in the fair value hierarchy as we use a market approach that compares fair values on certificates with similar maturities. We have no available for sale securities included in Level III as of September 30, 2017 and December 31, 2016 . There was no transfer of any assets and liabilities between Levels during the nine months ended September 30, 2017 or the year ended December 31, 2016 . The following table summarizes our investments by significant categories and fair value measurements on a recurring basis as of September 30, 2017 and December 31, 2016 . (in thousands) Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 Level 1: Investments: U.S. treasuries < 3 $ 36,916 $ — $ (75 ) $ 36,841 Mutual funds N/A 500 8 — 508 Total investments $ 37,416 $ 8 $ (75 ) $ 37,349 Level 2: Certificates of deposit < 1 $ 2,324 $ — $ — $ 2,324 Total $ 39,740 $ 8 $ (75 ) $ 39,673 December 31, 2016 Level 1: Investments: U.S. treasuries < 3 $ 51,376 $ 25 $ (77 ) $ 51,324 Mutual funds N/A 500 5 — 505 Total investments $ 51,876 $ 30 $ (77 ) $ 51,829 Level 2: Certificates of deposit < 1 $ 2,320 $ — $ — $ 2,320 Total $ 54,196 $ 30 $ (77 ) $ 54,149 There were no realized gains or losses for the nine months ended September 30, 2017 and 2016 . We had $0.1 million gross unrealized losses in our U.S. Treasury securities as of September 30, 2017 and December 31, 2016 . The fair value of these securities in an unrealized loss position represented 100% and 58% of the total fair value of all U.S. Treasury securities as of September 30, 2017 and December 31, 2016 , respectively. Unrealized losses are principally caused by changes in interest rates. In analyzing an issuer's financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts' reports. As we have the ability and intent to hold these available for sale marketable securities until maturity, or for the foreseeable future, no decline was deemed to be other-than-temporary. Notes Payable The carrying value of our notes payable at September 30, 2017 and December 31, 2016 was $434.3 million and $462.9 million , respectively. The estimated fair values of our notes payable at September 30, 2017 and December 31, 2016 were $437.7 million and $462.9 million , respectively. These valuations are considered Level II in the hierarchy for fair value measurement and are based on quoted market prices. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Equity-Based Incentive Plans Equity-based incentive plans include stock options, restricted stock units (time-based and performance-based) and other stock awards. The number of shares available for grant under these plans as of September 30, 2017 was 8.9 million . The following table summarizes stock option activity under our equity-based plans for the nine months ended September 30, 2017 : Number Balance at December 31, 2016 2,815,224 Granted — Exercised (1,280,726 ) Cancelled (12,297 ) Forfeited (57,540 ) Expired — Balance at September 30, 2017 1,464,661 Exercisable at September 30, 2017 1,192,694 The aggregate intrinsic value of stock options outstanding was $31.4 million and $46.2 million as of September 30, 2017 and December 31, 2016 , respectively. The following table summarizes restricted stock unit (RSU) and performance-based restricted stock unit (PSU) activity under our equity-based plans for the nine months ended September 30, 2017 : RSUs PSUs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2016 2,323,051 $ 20.32 149,412 $ 33.51 Granted 1,119,525 28.68 330,674 29.69 Vested (795,856 ) 20.41 (7,518 ) 33.51 Forfeited (232,727 ) 23.38 (18,894 ) 33.51 Nonvested at September 30, 2017 2,413,993 $ 23.87 453,674 $ 30.72 Stock-Based Compensation Stock-based compensation expense is measured based on the fair value of the stock option on the grant date and recognized over the requisite service period for each separately vesting portion of the stock option award. Stock-based compensation expense and other disclosures for stock-based awards made to our employees pursuant to the equity plans was as follows: Three Months Ended Nine Months Ended (in thousands) 2017 2016 2017 2016 Cost of providing services $ 1,845 $ 1,605 $ 5,488 $ 5,044 Sales and marketing 1,524 1,491 4,447 5,119 General and administrative 3,259 2,544 8,294 8,161 Systems development and programming costs 1,072 624 3,177 1,845 Total stock-based compensation expense $ 7,700 $ 6,264 $ 21,406 $ 20,169 Income tax benefit related to stock-based compensation expense $ 2,813 $ 2,267 $ 7,621 $ 7,095 Tax benefit realized from stock options exercised and similar awards $ 5,942 $ 1,721 $ 21,976 $ 4,136 Stock Repurchases The board of directors authorizes repurchases through an ongoing program initiated in May 2014. During the nine months ended September 30, 2017 , we repurchased 1.4 million shares of common stock for $39.3 million . As of September 30, 2017 , $20.7 million remained available for further repurchases of our common stock under our ongoing stock repurchase program. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | EARNINGS PER SHAR E (EPS) The following table presents the computation of our basic and diluted EPS attributable to our common stock: Three Months Ended Nine Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 42,836 $ 14,581 $ 111,524 $ 38,440 Weighted average shares of common stock outstanding 69,498 70,188 69,016 70,478 Basic EPS $ 0.62 $ 0.21 $ 1.62 $ 0.55 Net income $ 42,836 $ 14,581 $ 111,524 $ 38,440 Weighted average shares of common stock 69,498 70,188 69,016 70,478 Dilutive effect of stock options and restricted stock units 2,002 1,777 2,123 1,648 Weighted average shares of common stock outstanding 71,500 71,965 71,139 72,126 Diluted EPS $ 0.60 $ 0.20 $ 1.57 $ 0.53 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect 482 817 1,856 912 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 26.3% and 38.4% for the three months ended September 30, 2017 and 2016 , respectively, and 28.2% and 41.8% for the nine months ended September 30, 2017 and 2016 , respectively. These decreases are primarily due to a discrete tax benefit recognized upon adoption of ASU 2016-09, a tax benefit resulting from qualified production activities deduction for certain software offerings, a tax benefit from an increase in excludable income for state tax purposes which is partially offset by a discrete charge due to changes in uncertain tax positions, and a tax benefit in non-deductible expenses due to the abatement of penalties previously assessed by the Internal Revenue Service (IRS). The remaining decrease is attributable to tax credits and disqualifying dispositions of previously nondeductible stock based compensation. During the nine months ended September 30, 2017 , our unrecognized tax benefits increased from $0.9 million to $4.4 million . Of the $4.4 million , $2.5 million would affect our tax expense, if recognized. Included in the $2.5 million is $0.2 million for interest and $0.2 million for penalties. Our unrecognized tax benefits are not expected to change significantly during the next 12 months. We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada. We are not subject to any material income tax examinations in federal or state jurisdictions for tax years prior to January 1, 2011. We previously paid Notices of Proposed Assessments disallowing employment tax credits totaling $10.5 million , plus interest of $4.0 million in connection with an IRS examination of Gevity HR, Inc. and its subsidiaries, which were acquired by TriNet in June 2009. This issue is being resolved through litigation. With regard to these employment tax credits, we believe it is more likely than not that we will prevail and realize our receivable included in other noncurrent assets without a charge to our statement of income. Therefore, no reserve has been recognized related to this matter. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments We lease office facilities, including our headquarters and other facilities, and equipment under non-cancelable operating leases. For detail of these commitments refer to Note 13 in Part II, Item 8 in our 2016 Form 10-K. In July 2017, we entered into an agreement to lease additional office space starting February 2018 for a total commitment of approximately $32.4 million over 10 years. Credit Facilities We maintain a $75.0 million revolving credit facility which includes capacity for a $40.0 million letter of credit facility and a $10.0 million swingline facility. Letters of credit issued pursuant to the revolving credit facility reduce the amount available for borrowing under the revolving credit facility. The total unused portion of the revolving credit facility was $59.5 million as of September 30, 2017 . The terms of the credit agreement governing the revolving credit facility require us to maintain certain financial ratios at each quarter end. We were in compliance with these covenants at September 30, 2017 . We also have a $ 5.0 million line of credit facility to secure standby letters of credit related to our workers' compensation obligations. At September 30, 2017 , the total unused portion of the credit facility was $ 2.7 million . Standby Letters of Credit We have two unused standby letters of credit totaling $17.8 million provided as collateral for our workers’ compensation obligations. At September 30, 2017 , the facilities were not drawn down. Contingencies In August 2015, Howard Welgus, a purported stockholder, filed a putative securities class action lawsuit, Welgus v. TriNet Group, Inc. et. al., under the Securities Exchange Act of 1934 in the United States District Court (the Court) for the Northern District of California. The complaint was later amended in April 2016. The amended complaint generally alleges that TriNet and the other defendants caused damage to purchasers of our stock by misrepresenting and/or failing to disclose facts generally pertaining to alleged trends affecting health insurance and workers' compensation claims. The other defendants include certain of our officers and directors, General Atlantic, LLC, a former significant shareholder, and the underwriters of our IPO. The court heard arguments on our motion to dismiss in September 2017 and took the matter under submission. We are unable to reasonably estimate the possible loss or range of losses, if any, arising from this litigation. We are and, from time to time, have been and may in the future become involved in various litigation matters, legal proceedings and claims arising in the ordinary course of our business, including disputes with our clients or various class action, collective action, representative action and other proceedings arising from the nature of our co-employment relationship with our clients and WSEs in which we are named as a defendant. In addition, due to the nature of our co-employment relationship with our clients and WSEs, we could be subject to liability for federal and state law violations, even if we do not participate in such violations. While our agreements with our clients contain indemnification provisions related to the conduct of our clients, we may not be able to avail ourselves of such provisions in every instance. We have accrued our current best estimates of probable losses with respect to these matters which are individually and in aggregate immaterial to our condensed consolidated financial statements. While the outcome of the matters described above cannot be predicted with certainty, management currently does not believe that any such claims or proceedings or the above mentioned securities class action will have a materially adverse effect on our consolidated financial position, results of operations or cash flows. However, the unfavorable resolution of any particular matter or our reassessment of our exposure for any of the above matters based on additional information obtained in the future could have a material impact on our consolidated financial position, results of operations or cash flows. |
Description of Business and S15
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Information | We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of revenue is generated outside of the U.S. |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements (Financial Statements) and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the third quarter of 2017 are not necessarily indicative of the operating results anticipated for the full year. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2016 ( 2016 Form 10-K). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. Significant estimates include: • liability for unpaid losses and loss adjustment expenses (loss reserves) related to workers' compensation and workers' compensation collateral receivable, • health insurance loss reserves, • liability for insurance premiums payable, • impairments of goodwill and other intangible assets, • income tax assets and liabilities, and • liability for legal contingencies. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting guidance Share-based payments - In March 2016, the FASB issued ASU 2016-09- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , as part of the Simplification Initiative to simplify certain aspects of the accounting for share-based payment transactions to employees. The new standard requires excess tax benefits and tax deficiencies to be recorded in the statements of income as a component of the provision for income taxes when stock awards vest or are settled. In addition, it eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the condensed consolidated statements of cash flows. The standard also provides an accounting policy election to account for forfeitures as they occur, allows us to withhold more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our cash flows statement. The new standard was effective for us beginning January 1, 2017. Upon adoption, excess tax benefits or deficiencies from share-based award activity were reflected in the condensed consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in equity. We also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of ASU 2016-09 resulted in a net cumulative-effect adjustment of $0.3 million , reflected as an increase to retained earnings as of January 1, 2017, mostly related to the recognition of the previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as an increase to deferred tax assets. We adopted the aspects of the standard affecting the cash flow presentation retrospectively, and accordingly, to conform to the current year presentation, we reclassified $2.6 million of tax deficiencies under financing activities to operating activities for the period ended September 30, 2016 , on our condensed consolidated statements of cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on our condensed consolidated statements of cash flows since such cash flows have historically been presented as a financing activity. Recently issued accounting pronouncements Lease arrangements - In February 2016, the FASB issued ASU 2016-02- Leases. The amendment requires that lease arrangements longer than 12 months result in an entity recognizing lease assets and lease liabilities. Most significant impact is on those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018. We currently anticipate adoption of the new standard effective January 1, 2019. We anticipate this standard will have a material impact on our condensed consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for equipment, office and data-center operating leases. Financial Instruments - In January 2016, the FASB issued ASU 2016-01- Recognition and Measurement of Financial Assets and Financial Liabilities . The amendment addresses various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. The amendment is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. We are currently in the process of evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Revenue Recognition - In May 2014, the FASB issued ASU 2014-09- Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance under GAAP. The core principle of the guidance is that an entity should recognize revenue for the transfer of promised goods or services to customers that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB deferred the effective date to annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption at the original effective date of December 15, 2016 is permitted. The amendments may be applied retrospectively or as a cumulative-effect adjustment as of the date of adoption. In March, April and May 2016, the FASB issued ASU 2016-08 Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Identifying Performance Obligations and Licensing, ASU 2016-12 Narrow-Scope Improvements and Practical Expedients and ASU 2016-20 Technical Corrections and Improvements, respectively, providing further clarification to be considered when implementing ASU 2014-09. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). We currently anticipate adopting the new standard effective beginning January 1, 2018 using the modified retrospective method. Under the modified retrospective method, the new standard will be applied to all contracts initiated on or after the effective date. For contracts with remaining obligations as of the effective date, opening retained earnings will be adjusted for the cumulative effect of the change to the new standard as of the effective date. We anticipate this standard will have a material impact on our condensed consolidated financial statements. While we do not anticipate this standard will result in a material adjustment to beginning balance retained earnings, we do anticipate this standard will have a material impact on our condensed consolidated financial statements on a prospective basis. Specifically, we currently believe the adoption will have a material impact on our accounting for sales commission expense, deferred revenue, income tax provision and deferred taxes. We anticipate that certain client acquisition costs will be deferred over the expected client tenure. We expect our professional service revenues and insurance service revenues will remain substantially unchanged. The actual revenue recognition treatment required under the standard will be dependent on contract specific terms, and may vary in some instances from recognition at the time of billing. At the date of adoption, we expect to record a net cumulative effect adjustment in retained earnings associated with unamortized deferred revenue and sales commission related to any open customer contracts as of adoption date. Statement of Cash Flows - In November and August 2016, the FASB issued (ASU) 2016-18 - Statement of Cash Flows (Topic 230): Restricted Cash and 2016-15- Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how restricted cash and other certain transactions are classified in the statement of cash flows. The amendments are effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. As of September 30, 2017 and December 31, 2016 , we had total restricted cash, restricted cash equivalents and payroll funds collected of $748.5 million and $1.0 billion , respectively. Currently, changes in these balances are presented as operating cash activities in the condensed consolidated statements of cash flows. Under the new guidance, changes in these amounts will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows. Although there are several other new accounting pronouncements issued or proposed by the FASB, which we have adopted or will adopt, as applicable, we do not believe any of these other accounting pronouncements have had or will have a material impact on its consolidated financial position, operating results or statements of cash flows. |
Cash, Cash Equivalents and In16
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | Our total corporate and WSE related cash, cash equivalents and investments are summarized below: September 30, 2017 December 31, 2016 (in thousands) Cash and cash equivalents Available for sale marketable securities Certificate of deposits Total Cash and cash equivalents Available for sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 263,527 $ — $ — $ 263,527 $ 184,004 $ — $ — $ 184,004 Restricted cash and cash equivalents 15,445 — — 15,445 14,569 — — 14,569 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 123,366 36,841 — 160,207 78,672 51,829 — 130,501 Worksite employee related assets Restricted cash, cash equivalents and investments, current Collateral for health benefits claims 68,907 — — 68,907 65,022 — — 65,022 Collateral for workers' compensation claims 85,284 508 — 85,792 64,773 — — 64,773 Collateral to secure standby letter of credit — — 2,324 2,324 — — 2,320 2,320 Total WSE related restricted cash, cash equivalents and investments, current 154,191 508 2,324 157,023 129,795 — 2,320 132,115 Payroll funds collected 455,494 — — 455,494 825,958 — — 825,958 Total $ 1,012,023 $ 37,349 $ 2,324 $ 1,051,696 $ 1,232,998 $ 51,829 $ 2,320 $ 1,287,147 |
Worksite Employee Related Ass17
Worksite Employee Related Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Industries [Abstract] | |
Schedule of Components of the Company's WSE-Related Assets and WSE-Related Liabilities | (in thousands) September 30, December 31, Worksite employee related assets: Restricted cash, cash equivalents and investments $ 157,023 $ 132,115 Payroll funds collected 455,494 825,958 Unbilled revenue (net of advance collections of $10,038 284,136 293,192 Accounts receivable (net of allowance for doubtful accounts of 5,912 4,854 Prepaid insurance premiums 27,200 12,805 Workers' compensation collateral receivable 1,417 2,136 Other payroll assets 10,031 10,411 Total worksite employee related assets $ 941,213 $ 1,281,471 Worksite employee related liabilities: Accrued wages $ 274,123 $ 272,966 Client deposits 28,096 56,182 Payroll tax liabilities 368,207 692,460 Unpaid losses and loss adjustment expenses (less than 1 year): Health benefits loss reserves 129,681 129,430 Workers' compensation loss reserves (net of collateral paid of $7,105 and $9,234 at September 30, 2017 and December 31, 2016, respectively) 63,683 63,702 Insurance premiums and other payables 25,654 14,223 Other payroll withholdings 45,424 47,032 Total worksite employee related liabilities $ 934,868 $ 1,275,995 |
Workers Compensation Assets a18
Workers Compensation Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Summary of Activities in Liability for Unpaid Claims and Claims Adjustment Expenses | The following table summarizes the workers’ compensation loss reserve activity for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended Nine Months Ended (in thousands) 2017 2016 2017 2016 Total loss reserves, beginning of period $ 254,684 $ 214,711 $ 254,614 $ 190,102 Incurred Current year 22,618 26,717 69,745 78,063 Prior years (4,294 ) 4,947 (2,797 ) 12,951 Total incurred 18,324 31,664 66,948 91,014 Paid Current year (3,464 ) (6,738 ) (9,101 ) (9,016 ) Prior years (20,450 ) (17,130 ) (63,367 ) (49,593 ) Total paid (23,914 ) (23,868 ) (72,468 ) (58,609 ) Total loss reserves, end of period $ 249,094 $ 222,507 $ 249,094 $ 222,507 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in thousands) September 30, December 31, Total loss reserves, end of period $ 249,094 $ 254,614 Collateral paid to carriers and offset against loss reserves (27,412 ) (31,611 ) Total loss reserves, net of carrier collateral offset $ 221,682 $ 223,003 Payable in less than 1 year (1) $ 63,683 $ 63,702 Payable in more than 1 year 157,999 159,301 Total loss reserves, net of carrier collateral offset $ 221,682 $ 223,003 (1) Included in WSE related liabilities within Note 3 to these condensed consolidated financial statements. |
Financial Instruments and Fai19
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following table summarizes our investments by significant categories and fair value measurements on a recurring basis as of September 30, 2017 and December 31, 2016 . (in thousands) Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 Level 1: Investments: U.S. treasuries < 3 $ 36,916 $ — $ (75 ) $ 36,841 Mutual funds N/A 500 8 — 508 Total investments $ 37,416 $ 8 $ (75 ) $ 37,349 Level 2: Certificates of deposit < 1 $ 2,324 $ — $ — $ 2,324 Total $ 39,740 $ 8 $ (75 ) $ 39,673 December 31, 2016 Level 1: Investments: U.S. treasuries < 3 $ 51,376 $ 25 $ (77 ) $ 51,324 Mutual funds N/A 500 5 — 505 Total investments $ 51,876 $ 30 $ (77 ) $ 51,829 Level 2: Certificates of deposit < 1 $ 2,320 $ — $ — $ 2,320 Total $ 54,196 $ 30 $ (77 ) $ 54,149 |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes our investments by significant categories and fair value measurements on a recurring basis as of September 30, 2017 and December 31, 2016 . (in thousands) Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2017 Level 1: Investments: U.S. treasuries < 3 $ 36,916 $ — $ (75 ) $ 36,841 Mutual funds N/A 500 8 — 508 Total investments $ 37,416 $ 8 $ (75 ) $ 37,349 Level 2: Certificates of deposit < 1 $ 2,324 $ — $ — $ 2,324 Total $ 39,740 $ 8 $ (75 ) $ 39,673 December 31, 2016 Level 1: Investments: U.S. treasuries < 3 $ 51,376 $ 25 $ (77 ) $ 51,324 Mutual funds N/A 500 5 — 505 Total investments $ 51,876 $ 30 $ (77 ) $ 51,829 Level 2: Certificates of deposit < 1 $ 2,320 $ — $ — $ 2,320 Total $ 54,196 $ 30 $ (77 ) $ 54,149 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Summary of Stock Option Activity under the Company's Equity-Based Plans | The following table summarizes stock option activity under our equity-based plans for the nine months ended September 30, 2017 : Number Balance at December 31, 2016 2,815,224 Granted — Exercised (1,280,726 ) Cancelled (12,297 ) Forfeited (57,540 ) Expired — Balance at September 30, 2017 1,464,661 Exercisable at September 30, 2017 1,192,694 |
Summary of Restricted Stock Unit Activity under the Company's Equity-Based Plans | The following table summarizes restricted stock unit (RSU) and performance-based restricted stock unit (PSU) activity under our equity-based plans for the nine months ended September 30, 2017 : RSUs PSUs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2016 2,323,051 $ 20.32 149,412 $ 33.51 Granted 1,119,525 28.68 330,674 29.69 Vested (795,856 ) 20.41 (7,518 ) 33.51 Forfeited (232,727 ) 23.38 (18,894 ) 33.51 Nonvested at September 30, 2017 2,413,993 $ 23.87 453,674 $ 30.72 |
Summary of Performance Based Restricted Stock Unit Activity | The following table summarizes restricted stock unit (RSU) and performance-based restricted stock unit (PSU) activity under our equity-based plans for the nine months ended September 30, 2017 : RSUs PSUs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2016 2,323,051 $ 20.32 149,412 $ 33.51 Granted 1,119,525 28.68 330,674 29.69 Vested (795,856 ) 20.41 (7,518 ) 33.51 Forfeited (232,727 ) 23.38 (18,894 ) 33.51 Nonvested at September 30, 2017 2,413,993 $ 23.87 453,674 $ 30.72 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense and other disclosures for stock-based awards made to our employees pursuant to the equity plans was as follows: Three Months Ended Nine Months Ended (in thousands) 2017 2016 2017 2016 Cost of providing services $ 1,845 $ 1,605 $ 5,488 $ 5,044 Sales and marketing 1,524 1,491 4,447 5,119 General and administrative 3,259 2,544 8,294 8,161 Systems development and programming costs 1,072 624 3,177 1,845 Total stock-based compensation expense $ 7,700 $ 6,264 $ 21,406 $ 20,169 Income tax benefit related to stock-based compensation expense $ 2,813 $ 2,267 $ 7,621 $ 7,095 Tax benefit realized from stock options exercised and similar awards $ 5,942 $ 1,721 $ 21,976 $ 4,136 |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the computation of our basic and diluted EPS attributable to our common stock: Three Months Ended Nine Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 42,836 $ 14,581 $ 111,524 $ 38,440 Weighted average shares of common stock outstanding 69,498 70,188 69,016 70,478 Basic EPS $ 0.62 $ 0.21 $ 1.62 $ 0.55 Net income $ 42,836 $ 14,581 $ 111,524 $ 38,440 Weighted average shares of common stock 69,498 70,188 69,016 70,478 Dilutive effect of stock options and restricted stock units 2,002 1,777 2,123 1,648 Weighted average shares of common stock outstanding 71,500 71,965 71,139 72,126 Diluted EPS $ 0.60 $ 0.20 $ 1.57 $ 0.53 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect 482 817 1,856 912 |
Description of Business and S22
Description of Business and Significant Accounting Policies - Additional Information (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash used in financing activities | $ (65,063) | $ (68,998) | |
Net cash provided by operating activities | $ 158,951 | 80,699 | |
Number of reportable segments as result of acquisitions | segment | 1 | ||
Restricted cash, cash equivalents and payroll funds collected | $ 748,500 | $ 1,000,000 | |
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash used in financing activities | (2,600) | ||
Net cash provided by operating activities | $ 2,600 | ||
Retained Earnings | Accounting Standards Update 2016-09, Forfeiture Rate Component | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment | $ 300 |
Cash, Cash Equivalents and In23
Cash, Cash Equivalents and Investments - Components of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 263,527 | $ 184,004 | $ 160,558 | $ 166,178 |
Restricted cash and cash equivalents | 15,445 | 14,569 | ||
Restricted cash and available for sale investments | 160,207 | 130,501 | ||
Restricted cash and investments, current | 157,023 | 132,115 | ||
Payroll funds collected | 455,494 | 825,958 | ||
Restricted cash and investments | 1,051,696 | 1,287,147 | ||
Cash and Cash Equivalents | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 263,527 | 184,004 | ||
Restricted cash and cash equivalents | 15,445 | 14,569 | ||
Restricted cash and available for sale investments | 123,366 | 78,672 | ||
Restricted cash and investments, current | 154,191 | 129,795 | ||
Payroll funds collected | 455,494 | 825,958 | ||
Restricted cash and investments | 1,012,023 | 1,232,998 | ||
Available-for-sale Securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and available for sale investments | 36,841 | 51,829 | ||
Restricted cash and investments, current | 508 | |||
Restricted cash and investments | 37,349 | 51,829 | ||
Certificates of deposit | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 2,324 | 2,320 | ||
Restricted cash and investments | 2,324 | 2,320 | ||
Health Benefit Claims Collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 68,907 | 65,022 | ||
Health Benefit Claims Collateral | Cash and Cash Equivalents | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 68,907 | 65,022 | ||
Workers' Compensation Claims Collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 85,792 | 64,773 | ||
Workers' Compensation Claims Collateral | Cash and Cash Equivalents | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 85,284 | 64,773 | ||
Workers' Compensation Claims Collateral | Available-for-sale Securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | 508 | |||
Standby Letter of Credit Collateral | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments, current | $ 2,324 | $ 2,320 |
Worksite Employee Related Ass24
Worksite Employee Related Assets and Liabilities - Schedule of Components of the Company's WSE-Related Assets and WSE-Related Liabilities (Details) $ in Thousands | Sep. 30, 2017USD ($)employee | Dec. 31, 2016USD ($)employee |
Worksite employee-related assets: | ||
Restricted cash, cash equivalents and investments | $ 157,023 | $ 132,115 |
Payroll funds collected | 455,494 | 825,958 |
Unbilled revenue (net of advance collections of $10,038 and $8,602 at September 30, 2017 and December 31, 2016, respectively) | 284,136 | 293,192 |
Accounts receivable (net of allowance for doubtful accounts of $304 and $292 at September 30, 2017 and December 31, 2016, respectively) | 5,912 | 4,854 |
Prepaid insurance premiums | 27,200 | 12,805 |
Workers' compensation collateral receivable | 1,417 | 2,136 |
Other payroll assets | 10,031 | 10,411 |
Total worksite employee-related assets | 941,213 | 1,281,471 |
Advance collection | 10,038 | 8,602 |
Allowance for doubtful accounts | 304 | 292 |
Liability for unpaid claims and claims adjustment expense collateral, current | 7,105 | 9,234 |
Worksite employee-related liabilities: | ||
Accrued wages | 274,123 | 272,966 |
Client deposits | 28,096 | 56,182 |
Payroll tax liabilities | 368,207 | 692,460 |
Health benefits loss reserves | 129,681 | 129,430 |
Workers' compensation loss reserves (net of collateral paid of $7,105 and $9,234 at September 30, 2017 and December 31, 2016, respectively) | 63,683 | 63,702 |
Insurance premiums and other payables | 25,654 | 14,223 |
Other payroll deductions | 45,424 | 47,032 |
Total worksite employee-related liabilities | $ 934,868 | $ 1,275,995 |
Number of employees | employee | 2,700 | 2,600 |
Workers Compensation Assets a25
Workers Compensation Assets and Liabilities - Summary of Workers' Compensation Loss Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Total loss reserves, beginning of period | $ 254,684 | $ 214,711 | $ 254,614 | $ 190,102 |
Incurred | ||||
Current year | 22,618 | 26,717 | 69,745 | 78,063 |
Prior years | (4,294) | 4,947 | (2,797) | 12,951 |
Total incurred | 18,324 | 31,664 | 66,948 | 91,014 |
Paid | ||||
Current year | (3,464) | (6,738) | (9,101) | (9,016) |
Prior years | (20,450) | (17,130) | (63,367) | (49,593) |
Total paid | (23,914) | (23,868) | (72,468) | (58,609) |
Total loss reserves, end of period | $ 249,094 | $ 222,507 | $ 249,094 | $ 222,507 |
Workers Compensation Assets a26
Workers Compensation Assets and Liabilities - Summary of Workers' Compensation Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | ||
Collateral paid to carriers and offset against loss reserves | $ (27,412) | $ (31,611) |
Total loss reserves, net of carrier collateral offset | 221,682 | 223,003 |
Payable in less than 1 year (net of collateral paid to carriers of $7,105 and $9,234 at September 30, 2017 and December 31, 2016, respectively) | 63,683 | 63,702 |
Payable in more than 1 year (net of collateral paid to carriers of $20,307 and $22,377 at September 30, 2017 and December 31, 2016, respectively) | 157,999 | 159,301 |
Liability for unpaid claims and claims adjustment expense collateral, current | 7,105 | 9,234 |
Liability for unpaid claims and claims adjustment expense collateral, noncurrent | $ 20,307 | $ 22,377 |
Workers Compensation Assets a27
Workers Compensation Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | ||
Collateral held by insurance carriers | $ 68,800 | $ 65,600 |
Collateral paid to carriers and offset against loss reserves | $ (27,412) | $ (31,611) |
Financial Instruments and Fai28
Financial Instruments and Fair Value Measurements - Summary of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Unrealized Gains | $ 8 | $ 30 |
Gross Unrealized Losses | (75) | (77) |
Investments and cash equivalents, total | 39,740 | 54,196 |
Investments and cash equivalents, fair value, total | $ 39,673 | $ 54,149 |
U.S. treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturities (less than) | 3 years | 3 years |
Certificates of deposit, at carrying value | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturities (less than) | 1 year | 1 year |
Level I | U.S. treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 36,916 | $ 51,376 |
Gross Unrealized Gains | 0 | 25 |
Gross Unrealized Losses | (75) | (77) |
Estimated Fair Value | 36,841 | 51,324 |
Level I | Mutual funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 500 | 500 |
Gross Unrealized Gains | 8 | 5 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 508 | 505 |
Level I | U.S. Treasuries & Mutual Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 37,416 | 51,876 |
Gross Unrealized Gains | 8 | 30 |
Gross Unrealized Losses | (75) | (77) |
Estimated Fair Value | 37,349 | 51,829 |
Level II | Certificates of deposit, at carrying value | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,324 | 2,320 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 2,324 | $ 2,320 |
Financial Instruments and Fai29
Financial Instruments and Fair Value Measurements - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Realized gains or losses | $ 0 | $ 0 | |
Gross Unrealized Losses | $ (75,000) | $ (77,000) | |
Percentage of total fair value available for sale securities in unrealized loss position | 100.00% | 58.00% | |
U.S. Treasuries & Mutual Funds | Level I | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Gross Unrealized Losses | $ (75,000) | $ (77,000) | |
U.S. treasuries | Level I | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Gross Unrealized Losses | (75,000) | (77,000) | |
Reported Value Measurement | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notes payable | 434,300,000 | 462,900,000 | |
Estimate of Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Notes payable | $ 437,700,000 | $ 462,900,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Additional number of shares available for grant | 8,900,000 | |
Aggregate intrinsic value | $ 31.4 | $ 46.2 |
Stock repurchased during period, shares | 1,428,957 | |
Stock repurchased during period, value | $ 39.3 | |
Available for further repurchases, value | $ 20.7 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity under the Company's Equity-Based Plans (Details) | 9 Months Ended |
Sep. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance | 2,815,224 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | (1,280,726) |
Number of Shares, Canceled | (12,297) |
Number of Shares, Forfeited | (57,540) |
Number of Shares, Expired | 0 |
Number of Shares, Ending Balance | 1,464,661 |
Number of Shares, Exercisable at September 30, 2017 | 1,192,694 |
Stockholders' Equity - Summar32
Stockholders' Equity - Summary of Restricted Unit Activity under the Company's Equity-Based Plans (Details) - Restricted Stock Unit | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units, Beginning Balance | shares | 2,323,051 |
Number of Units, Granted | shares | 1,119,525 |
Number of Units, Vested | shares | (795,856) |
Number of Units, Forfeited | shares | (232,727) |
Number of Units, Ending Balance | shares | 2,413,993 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 20.32 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 28.68 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 20.41 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 23.38 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 23.87 |
Stockholders' Equity - Summar33
Stockholders' Equity - Summary of Performance Based Restricted Stock Unit Activity (Details) - Performance-based restricted stock units | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units, Beginning Balance | shares | 149,412 |
Number of Units, Granted | shares | 330,674 |
Number of Units, Vested | shares | (7,518) |
Number of Units, Forfeited | shares | (18,894) |
Number of Units, Ending Balance | shares | 453,674 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 33.51 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 29.69 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 33.51 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 33.51 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 30.72 |
Stockholders' Equity - Summar34
Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7,700 | $ 6,264 | $ 21,406 | $ 20,169 |
Income tax benefit related to stock-based compensation expense | 2,813 | 2,267 | 7,621 | 7,095 |
Tax benefit realized from stock options exercised and similar awards | 5,942 | 1,721 | 21,976 | 4,136 |
Cost of providing services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,845 | 1,605 | 5,488 | 5,044 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,524 | 1,491 | 4,447 | 5,119 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3,259 | 2,544 | 8,294 | 8,161 |
Systems development and programming costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,072 | $ 624 | $ 3,177 | $ 1,845 |
Earnings Per Share (EPS) - Sche
Earnings Per Share (EPS) - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 42,836 | $ 14,581 | $ 111,524 | $ 38,440 |
Weighted average shares of common stock outstanding | 69,498,218 | 70,187,989 | 69,016,054 | 70,478,266 |
Basic EPS (in dollars per share) | $ 0.62 | $ 0.21 | $ 1.62 | $ 0.55 |
Dilutive effect of stock options and restricted stock units | 2,002,000 | 1,777,000 | 2,123,000 | 1,648,000 |
Weighted average shares of common stock outstanding | 71,499,591 | 71,964,603 | 71,138,743 | 72,126,060 |
Diluted EPS (in dollars per share) | $ 0.60 | $ 0.20 | $ 1.57 | $ 0.53 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect | 482,000 | 817,000 | 1,856,000 | 912,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 26.30% | 38.40% | 28.20% | 41.80% |
Unrecognized tax benefits, period increase | $ 0.9 | |||
Unrecognized tax benefits | $ 4.4 | 4.4 | ||
Effective income tax rate reconciliation, unrecognized tax benefits, amount | 2.5 | |||
Unrecognized tax benefits, interest | 0.2 | 0.2 | ||
Unrecognized tax benefits, income tax penalties | $ 0.2 | 0.2 | ||
Employment tax credit | 10.5 | |||
Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, penalties and interest expense | $ 4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | |
Jul. 31, 2017USD ($) | Sep. 30, 2017USD ($)letter_of_credit | |
Debt Instrument [Line Items] | ||
Operating leases, future minimum payments due | $ 32,400,000 | |
Operating lease term | 10 years | |
Number of letters of credit | letter_of_credit | 2 | |
Standby Letters of Credit | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 17,800,000 | |
First lien credit facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility | 75,000,000 | |
Unused portion of facility | 59,500,000 | |
First lien credit facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility | 40,000,000 | |
First lien credit facility | Swingline | ||
Debt Instrument [Line Items] | ||
Line of credit facility | 10,000,000 | |
Workers' Compensation Obligation | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility | 5,000,000 | |
Unused portion of facility | $ 2,700,000 |