SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
Commission file number: 0-23198
INTERIM SERVICES INC.
401(k) Benefit Plan
2050 SPECTRUM BOULEVARD, FORT LAUDERDALE, FLORIDA 33309
(Address of principal executive offices) (Zip code)
(954) 938-7600
(Registrant's telephone number, including area code)
(a) Financial Statements. Filed as part of this Report on Form 11-K are the
financial statements of the Interim Services Inc. 401(k) Benefit Plan as
required by Form 11-K, together with the report thereon of Deloitte & Touche LLP
independent certified public accountants, dated June 16, 2000.
INTERIM SERVICES INC.
401(k) BENEFIT PLAN
TABLE OF CONTENTS
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PAGE
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1999 AND 1998
AND FOR THE YEARS THEN ENDED:
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4 - 6
SIGNATURES 7
EXHIBIT INDEX 8
INDEPENDENT AUDITORS' REPORT
Administrative Committee
Interim Services Inc.
401(k) Benefit Plan
Fort Lauderdale, Florida:
We have audited the accompanying statements of net assets available for benefits
of Interim Services Inc. 401(k) Benefit Plan (the "Plan") as of December 31,
1999 and 1998, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1999 and 1998, and the changes in net assets available for benefits for the
years then ended in conformity with accounting principles generally accepted in
the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedule
listed in the Table of Contents is presented for the purpose of additional
analysis and is not a required part of the basic financial statements, but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This schedule is the responsibility of the Plan's
management. Such schedule has been subjected to the auditing procedures applied
in our audit of the basic 1999 financial statements and, in our opinion, is
fairly stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Certified Public Accountants
Ft. Lauderdale, Florida
June 16, 2000
INTERIM SERVICES INC.
401(k) BENEFIT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1999 AND 1998
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ASSETS 1999 1998
INVESTMENTS, AT FAIR VALUE:
SHARES OF REGISTERED INVESTMENT COMPANIES:
T. Rowe Price Stable Value Fund (16,928,649 shares) $ 16,928,649 $ 5,221,392
T. Rowe Price International Stock Fund (295,971 shares) 5,632,325 1,552,991
T. Rowe Price Spectrum Income Fund (183,276 shares) 1,962,881 2,025,377
T. Rowe Price Dividend Growth Fund (562,190 shares) 11,361,863 12,990,442
T. Rowe Price Personal Strategy Income Fund (95,548 shares) 1,244,996 1,036,991
T. Rowe Price Personal Strategy Balanced Fund (558,412 shares) 9,068,604 5,773,383
T. Rowe Price Personal Strategy Growth Fund (917,605 shares) 17,874,942 2,935,070
T. Rowe Price Mid-Cap Growth Fund (374,162 shares) 15,015,126 5,383,136
T. Rowe Price Small-Cap Stock Fund (71,579 shares) 1,631,993 94,430
T. Rowe Price Equity Index Trust (262,649 shares) 10,119,865 545,824
T. Rowe Price TradeLink Plus (70,878 shares) 70,878 --
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Total registered investment company stocks 90,912,122 37,559,036
INTERIM SERVICES INC. COMMON STOCK (674,258 shares) 16,687,876 2,682,256
PARTICIPANT LOANS RECEIVABLE 1,031,067 959,014
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Total investments 108,631,065 41,200,306
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CONTRIBUTIONS RECEIVABLE:
Employer 1,344,602 972,452
Participant 1,058,593 211,773
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Total contributions receivable 2,403,195 1,184,225
UNINVESTED CASH 8,000 2,068
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NET ASSETS AVAILABLE FOR BENEFITS $111,042,260 $ 42,386,599
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See accompanying notes to financial statements.
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1999 AND 1998
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1999 1998
ADDITIONS:
Net appreciation in fair value of investments $ 5,969,036 $ 2,680,971
Dividend income 3,392,909 1,462,924
Interest income 74,444 72,470
Employee contributions 10,629,591 9,767,579
Employer contributions 2,734,040 2,502,488
Employee rollovers 1,480,207 102,716
Transfer in from merged plan 51,242,544 --
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Total additions 75,522,771 16,589,148
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DEDUCTIONS:
Distributions to plan participants (6,737,187) (4,821,858)
Administrative expenses (129,923) (99,272)
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Total deductions (6,867,110) (4,921,130)
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NET INCREASE 68,655,661 11,668,018
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 42,386,599 30,718,581
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NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $111,042,260 $ 42,386,599
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See accompanying notes to financial statements.
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INTERIM SERVICES INC.
401(k) BENEFIT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
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1. DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan sponsored by Interim Services Inc.
("Interim" or "Plan Sponsor"). Non-highly compensated employees are
eligible for participation under the Plan after completing 90 days of
service. Employees' contributions (made on a pre-tax basis, equal to not
less than 1 percent nor more than 15 percent of an employee's compensation)
and actual earnings thereon are fully vested and nonforfeitable. Employer
contributions (at present equal to 25 percent, with the possibility of an
additional discretionary match, up to 25 percent paid upon approval by the
Board of Directors, of the sum of an employee's contribution on the first 6
percent for the plan year) vest on a graduated scale from 1 to 5 years of
service and become 100% vested at the end of five years or upon death,
permanent disability or retirement at age 65. Plan earnings are allocated
to individual accounts based on the participant's beginning balance as a
percentage of the Plan's total beginning balance. Loans are limited to the
lesser of $50,000 or 50% of the participant's vested account balance.
Plan participants who leave Interim as a result of termination, retirement
or permanent disability may elect to receive their entire vested account in
a lump-sum, a rollover into another qualified plan, or if the balance
exceeds $5,000, the participant may retain their vested balance in the
Plan. Contributions will remain in the Plan and continue to earn interest
based on the investment fund of the participant's choice until their
entitlement is withdrawn or rolled over into another qualified plan.
Participants of certain plans, which were merged into the Plan on April 1,
1997, may receive annuity payouts.
Although Interim has not expressed any intent to do so, it has the right to
discontinue its contributions at any time and to terminate the Plan subject
to the provisions set forth in the Plan and under ERISA. In the event that
the Plan should be terminated, all Plan assets shall be allocated to the
participants as described in the full text of the Plan. Administrative
expenses are charged to Plan participant accounts. The Plan Sponsor
directly pays certain audit and legal expenses for the Plan.
As described in Note 3, on December 1, 1999, the Norrell Corporation 401(k)
Retirement Savings Plan was merged into the Plan.
The following investment funds represent the available options which the
participants may elect to use:
T. ROWE PRICE STABLE VALUE FUND - A current income fund investing in
guaranteed investment contracts, by insurance companies, bank
investment contracts, and synthetic investment contracts.
T. ROWE PRICE INTERNATIONAL STOCK FUND - A long-term growth fund
investing primarily in the common stocks of established, non-U.S.
companies.
T. ROWE PRICE SPECTRUM INCOME FUND - An income fund primarily
investing in domestic bond funds and also in two foreign bond funds,
but it may allocate up to 25% of assets to a stock fund.
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T. ROWE PRICE DIVIDEND GROWTH FUND - A long-term growth fund investing
primarily in dividend-paying common stocks that have favorable
prospects for increasing dividends.
T. ROWE PRICE PERSONAL STRATEGY FUNDS - Growth and income funds
investing in a mix of stocks, bonds, and money market securities
depending on the overall emphasis towards growth or income.
T. ROWE PRICE MID-CAP GROWTH FUND - A long-term capital growth fund
investing primarily in common stocks of medium-sized (mid-cap) growth
companies.
T. ROWE PRICE SMALL-CAP STOCK FUND - A long-term capital growth fund
investing primarily in stocks of small to medium-sized companies.
T. ROWE PRICE EQUITY INDEX TRUST - A growth fund investing in all 500
stocks the S&P Index comprises in proportion to their respective
weighting in the Index.
T. ROWE PRICE TRADELINK PLUS - Funds are invested in the common stock
of the participant's choice. To utilize this investment option, a
participant must have a minimum vested balance of $10,000 and can
invest only 50% of their total vested balance in this manner. Any
transaction costs to purchase or sell shares under this investment
option are paid from the participant's vested account balance.
INTERIM SERVICES INC. COMMON STOCK - Funds are invested in common
stock of Interim Services Inc.
Participants should refer to the plan agreement for a more complete
description of the Plan's provisions.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Plan have been
prepared on the accrual basis of accounting.
USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect certain reported amounts and
disclosures. Actual results could differ from those estimates.
INVESTMENTS - Investments are stated at fair value, determined using quoted
market prices. Net appreciation or depreciation in fair value of
investments is determined by using the beginning of the year values or
purchase price if acquired during the year. Participant loans receivable
bear a prime interest rate and are collectible over a period not to exceed
five years.
FORFEITED ACCOUNTS - For the years ended December 31, 1999 and 1998,
forfeitures on nonvested accounts totaled $4,714 and $183,641,
respectively. Forfeitures are retained in the Plan to be used to offset
future employer contributions.
DISCLOSURE REGARDING FINANCIAL INSTRUMENTS - Investments are stated at fair
value, determined using quoted market prices. The carrying amount of
participant loans approximate fair value because the interest rates on
these instruments change with market interest rates.
NEW ACCOUNTING PRONOUNCEMENTS - In June 1999, the FASB issued SFAS No. 133,
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. Among other
provisions, SFAS No. 133 establishes accounting and reporting standards for
derivative instruments and for hedging activities. It also requires that an
entity recognize all derivatives as either assets or liabilities in the
statement of financial position and
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measure those instruments at fair value. SFAS No. 133 is effective for
financial statements for fiscal years beginning after July 1, 2000. The
Plan Sponsor has not determined what effects, if any, the adoption of SFAS
No. 133 will have on the Plan's financial statements.
3. PLAN MERGER
Effective December 1, 1999, the Norrell Corporation 401(k) Retirement
Savings Plan (the "Norrell Plan") was merged into the Plan. With this
merger, the existing funds in the Norrell Plan (CIGNA Guaranteed Long-Term
Fund, Fidelity Asset Manager Fund, Fidelity Advisor Growth Opportunity
Fund, American 20th Century Ultra Fund, Warburg International Equity Fund,
Lazard Small Cap Fund, and the Vanguard Index 500 Fund) were liquidated,
and the participants' balances in those funds were allocated to existing
funds in the Plan based on common levels of risk. Assets merged into the
Plan have been recorded as additions in the accompanying statement of
changes in net assets available for benefits for the year ended December
31, 1999.
4. PLAN COMMITTEES AND TRUSTEE
The Plan provides for selection of an Administrative Committee, a Plan
Administrator and a Trustee by the Board of Directors of Interim. The
Administrative Committee is responsible for the general administration of
the Plan, the interpretation of its provisions and is responsible for the
reporting and disclosure requirements under ERISA. Effective September 1,
1998, T. Rowe Price was established as Trustee of the Plan and as the
Plan's Administrator.
5. PLAN TAX STATUS
The Plan intended to be qualified under Section 401(a) of the Internal
Revenue Code of 1986 (the "Code") and is intended to be exempt from
taxation under Section 501(a) of the Code. The Plan received a favorable
IRS determination letter dated July 23, 1996. The Plan has been amended
since receiving the determination letter. However, the Plan Sponsor
believes that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Code and the related
trust was tax-exempt as of the financial statement date. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
6. FUND INFORMATION
In September 1999, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued Statement of
Position 99-3 ("SOP 99-3"), Accounting for and Reporting of Certain Defined
Contribution Benefit Plan Investments and Other Disclosure Matters, which,
upon adoption, eliminates the requirement to disclose information about
significant components of the changes in net assets for each
participant-directed investment fund option. The Plan retroactively adopted
SOP 99-3 on January 1, 1999.
* * * * * *
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934, the
Administrative Committee has duly caused this annual report to be signed on its
behalf by the undersigned thereunto duly authorized.
Interim Services Inc.
401(k) Benefit Plan
Date: June 27, 2000 /s/ Mark W. Smith
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By: /s/ Mark W. Smith
Vice President Finance
(principal accounting officer)
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EXHIBIT INDEX
Exhibit
Number Exhibit Name
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23.1 Independent Auditors' Consent
99.1 Form 5500 Schedule H, 4i - Supplemental Schedule of Assets
held for Investment Purposes
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